March 10, 2005

US poultry exports into China revitalized following Beijing's lifting of ban

China banned imports of all US poultry products, worth about $300 million annually, in February 2004, when a case of low pathogenic avian influenza (AI) occurred in Delaware.

After months of negotiations, the Chinese Government re-opened the market to US poultry products on December 27, 2004. The first containers of US poultry successfully cleared Chinese Customs on January 20, 2005. To date, approximately $1.5 million in US poultry has entered mainland China.

On January 20, 2005, the first containers of US poultry products started clearing customs in Shanghai. To date, the poultry trade reports that inspection and clearance of US poultry is proceeding smoothly, and approximately 60 containers (approximate value $1.5 million) have already entered mainland China. Prior to China's ban on US poultry in February 2004, exports to this country (including re-exports from Hong Kong) reached $300 million annually.

FAS Beijing forecasts China's imports of US poultry will recover to 125,000 tonnes during 2005, comprising about 50 percent of China's total imports. This volume is still below the 177,000 tonnes of US poultry imported by China during 2003. During 2005 and beyond, US poultry will face tougher competition as China signs quarantine protocols and negotiates market access for poultry products from other suppliers such as Brazil.