March 13, 2007

Trade restrictions affect China's poultry exports

Even as China's poultry industry shifted from antiquated production methods to modern ones and transformed the country into an international poultry exporter, there are now more trade barriers thrown in the path of development, the CEO of a major Chinese poultry company said. 

The increasing number of trade restrictions keeping China's poultry products from being exported overseas is an issue that deserves concern, Cao Jiafu, CEO of Henan's Hua Yin Poultry Enterprises said.  

Cao, a People's Representative who has been an active politician, set up Henan Huayin Poultry Enterprises in 1991. Within a span of 16 years, Huayin grew from a little known company to the world's largest duck producer.
 

Cao said China is currently among the top four poultry exporting countries in the world and the increasingly stricter restrictions imposed by other countries would be a major stumbling block in the industry's efforts to expand its market.

Huayin's strategy was to grow as an export-oriented company. However, trade restrictions have whittled down the proportion of its exports to only 30 percent of the company's overall poultry output, with access to certain countries completely shut off.

Although countries have set up formidable technical specifications on China poultry products, these can be overcome if Chinese companies aspire to higher production standards, he said.

However, there are trade barriers that are more insidious. These include unfair practices such as anti-dumping laws, the imposition of quotas and farm subsidies, he added.

To challenge these barriers, besides efforts to improve on quality and safety on the part of Chinese enterprises, authorities such as China's Ministry of Commerce should actively engage in dialogue with regions like the US and EU to foster a spirit of understanding and cooperation. These would aid the entry of China's poultry products into world markets, he added.