International Egg and Poultry Review
US - By the USDA's Agricultural Marketing Service (AMS). This is a weekly report looking at international developments concerning the poultry industry. This week's report focuses on the poultry situation in the US regarding the EU's restrictions.
28 January 2009
5 minute read
US Files WTO Case Challenging EU Restrictions on US Poultry Exports
The US filed a complaint with the World Trade Organization (WTO)
challenging EU’s ban on the import and marketing of poultry meat and
poultry meat products processed with pathogen reduction treatments
(PRTs) judged safe by both the US and European food safety
authorities. USTR Susan C. Schwab said “We have tried to address this
issue through dialogue with the EU for more than eleven years, and
neither the European Commission (EC) nor EU Member States have
offered any legitimate, science-based reason for continuing to block our
poultry.”
The EU banned the use of PRTs for decontaminating poultry carcasses
in 1997, but in March 2008 the European Food Safety Authority (EFSA)
released an opinion that concluded there was insufficient evidence to
conclude that PRTs used in the proposed conditions would lead to
antimicrobial resistance. In May, 2008, the EC submitted a proposal to
the Standing Committee on the Food Chain and Animal Health
(SCoFCAH), to allow the use of four antimicrobials for use in processing
chicken carcasses. The proposal was rejected almost unanimously. In
December 2008 was submitted again, and all EU Member States except
the United Kingdom which abstained, voted against the proposal.
At the time the ban went into effect in 1997 the EU consisted of 15
Member States. The EU currently has 27 Member States. In 1997 US
poultry (HS 0207) exports totaled 2,473,128.4 metric tons. For the first
11 months in 2008 US poultry exports totaled 3,651,599.6 metric tons.
US broiler exports in 2007 totaled 16 per cent of production.
Source: US Trade Representative press release; USDA Foreign
Agricultural Service Attaché Report, USDA Economic Research
Service; news wires
USAPEEC Hosts Banquet to Honor Chinese Poultry Traders
The USA Poultry & Egg Export Council (USAPEEC) hosted a reception
dinner on 9 January, 2009 in Guangzhou in appreciation of the
invaluable Chinese traders of US poultry products from around the
country. Over 700 guests attended consisting of US poultry exporters
and Chinese importers as well as USDA/FAS officials.
According the China Customs data for January to November 2008,
China imported 761,610 tons of poultry products valued US$1.0 billion.
The States sent over 555,703 tons valued US$738 million.
Most US products were chicken paws, followed by leg quarters and
drumsticks, wingtips, chicken wings, turkey products and gizzards.
Seventy percent of imported poultry cleared Guangdong ports such
as Shenzhen port and Guangzhou port.
Insiders believe 2008 data reflects a large percentage of imported
products still in stock because of recent low prices. Traders’ lack of
confidence in the 2009 market makes them hesitant to order big
quantities for the rest of the year. According to interviewed Chinese
importers, most (95-98 per cent) traders suffered 20-30 per cent profit
losses in 2008. Chinese pork and poultry production increased in the
second half of the year so imported poultry wholesale prices
plummeted.
| Current FOB prices (US$ per pound) | |||
| - Paws (small): | 0.40-0.50 | - Paws (large): | 0.70 |
| - Drumsticks: | 0.50-0.5 | - Leg Quarters: | 0.28-0.38 |
Many traders rely on “import declaration companies” to import and
clear customs on their behalf. There are 73 Chinese companies
which have poultry import quotas appropriated by the Ministry of
Commerce (MOFCOM) as a means to control competitively priced
imports. However, it is said that only 40 actually use quotas to import
for themselves or for others. The rest just sell their quotas at
RMB200-250 (US$29-37) per ton to those without quotas. One
trader said he was more concerned about getting enough quota than
about price fluctuations. Outside of these 73, there are said to be
400-500 importers in China, 200 of which conduct business at
Daluotang Wholesale Market in Guangzhou, the biggest for frozen
poultry in China.
Brazilian, Argentine and European poultry products are smuggled
into China via Vietnam. Rumors suggest 23 Brazilian plants are
about to be allowed to enter China in 2009. In such case, US
products will face strong competition because Brazilian products are
preferred due to cheaper prices, equal amount of meat compared to
American product, less moisture because of air blast freezing system
in processing, and better appearance, thanks to lower labor costs
that enable hand cutting. Argentine products - paws in particular -
are less competitive because they tend to be bonier.
Brazil’s Ministry of Agriculture was in China in December 2008
negotiating with the deputy minister of AQSIP of China to start
importing chicken meat from Brazil. Chinese inspectors had
authorized several Brazilian plants to export China, but Chinese
traders were unable to get licenses. China had suspended imports
from Brazil out of concern exports were originating from plants not
registered by AQSIQ. Currently, only one Brazilian plant is eligible to
export to China, but its export volume far exceeds its production
ability. Brazil’s manual cut and soldier layer packing of whole chicken
wings are very competitive in the market industry.
Source: USDA/FAS Attaché Reports, new wires
Further Reading
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