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International Egg and Poultry Review: Global

by 5m Editor
17 February 2011, at 8:52am

GLOBAL - This is a weekly report by the USDA's Agricultural Marketing Service (AMS), looking at international developments concerning the poultry industry. This week's review looks at highly pathogenic avian influenza in Japan and South Korea and the effects on poultry trade, as well as Mexico's anti-dumping investigation of US chicken.

Highly Pathogenic Avian Influenza

Highly pathogenic avian influenza (HPAI) H5N1 has surfaced in South Korea and Japan, severely impacting their poultry industries. This winter outbreaks have also been reported in domestic poultry in Bangladesh, Vietnam, Nepal and Myanmar.

In December 2010 HPAI H5N1, was reported in domestic poultry on farms in several provinces in South Korea. As of 11 February, OIE reported over one million birds were reported dead or destroyed with some news sources quoting over five million birds culled. South Korea is also battling its largest ever outbreak of foot and mouth disease (FMD).

In Japan, H5N1 HPAI was confirmed on poultry farms in Shimane prefecture in December 2010. Outbreaks were later confirmed in Aichi, Miyazaki, Kagoshima and Oita prefectures. Kagoshima, Miyazaki and Aichi are major poultry-producing areas. According to the Statistics Department, Ministry of Agriculture, Forestry and Fisheries as of 1 February 2009, Kagoshima prefecture's combined output of poultry farming – both broilers and eggs – was the nation's largest, and Miyazaki prefecture was the nation's No. 2 poultry producer. Aichi prefecture is the number one in terms of layers. Japan is one of the top egg-producing countries in the world, ranking fourth behind China, the US and India.



Source: Minister's Secretariat, Ministry of Agriculture, Forestry and Fisheries; News Wires; Japan's Statistics Department; USDA FAS; Department of Commerce, US Census Bureau, Foreign Trade Statistics; World Organisation for Animal Health (OIE)

Mexico begins anti-dumping investigation of US chicken

On 8 February 2011, the Mexican Secretariat of Economy published a notice in the Diario Oficial de la Federación (Mexico's Federal Register) announcing a resolution accepting the request of an interested party and the beginning of the antidumping investigation on imports of chicken leg quarters originating in the US and covering goods classified under tariff 0207.13.03 and 0207.14.04 of the Tariff Act of the General Taxes of Import and Export.

Mexico's Ministry of the Economy (Economia) said it would investigate US chicken for unfair trade competition at the request of three Mexican poultry companies – Bachoco, Buenaventura, and PATSA. The Mexican chicken processors allege US producers sold chicken legs and thighs on the Mexican market below the cost of production.

They say imports of US chicken legs and thighs increased significantly in recent years and put the domestic industry at risk. To substantiate their claims, the poultry companies referred to China's preliminary anti-dumping duties placed on US chicken and Ukraine's complaint that the US and Brazil sold chicken at prices below production. Neither of those two complaints against the US have been settled. They also claimed that Mexico became the alternate market after shipments to Russia and China dropped sharply in 2010.

In 2009, Mexico exported $16.6 million of chicken products to the world. Main destinations were the United States, Viet Nam and Congo. Only 150 metric tons (MT; $342,000) of turkey products, mostly processed meat (HS code: 160231) were exported, all to the United States. US chicken product exports to Mexico rose 18 per cent in volume and 15 per cent in value in 2010, compared to the previous year. Imports of chicken products totalled 1,043,179MT valued at $1,045,722, compared to 882,963MT valued at $906,650 in 2009. Turkey product exports totalled 145,623MT valued at $281,083 compared to 120,245MT valued at $212,088 in 2009.



Source: Diario Oficial de la Federación; news wires, Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics; USDA FAS Gain Reports

Further Reading

- You can view the full report by clicking here.