April 16, 2008

Canada access to China hog to expand

 

 

Canadian access to China's hog market is expected to improve in the latter half of the year as Chinese officials are expected to approve the use of the hog feed additive Paylean.

 

Jacques Pomerleau, executive director for Canada Pork International in Ottawa, said by July, China will have reached some conclusion on this issue.

 

Paylean, which contains ractpopamine hydrochloride, improves the quality of meat cuts by directing nutrients away from fat deposition and toward lean deposition, thus increasing the amount of lean pork and high-value meat cuts in the carcass.

 

It also increases production as lean is more efficient to produce than fat, meaning that pigs fed Paylean reach market weight in fewer days with less feed.

 

Paylean has been approved for use in 30 countries, including Canada and the US, but China has yet to give its approval.

 

The drug has been banned in China since 2002.

 

China's current zero-tolerance policy toward the additive resulted in several North American processing plants being de-listed when their pork products were found to contain traces of it.

 

Among the de-listed plants are two Canadian companies, one of which is Maple Leaf's Brandon plant. Industry sources did not name the second plant.

 

Canadian pork sales to China in the meantime have suffered considerably.

 

Martin Rice, executive director with the Canadian Pork Council in Ottawa, said 18,000 tonnes of pork have been shipped to China and Hong Kong in the first two months of 2008, an increase from the previous year.

 

The majority, however, went to Hong Kong, whereas last year the bulk of the pork was shipped to mainland China.

 

Exports to mainland China alone have declined roughly 30 percent, Rice said.

 

The main reason for the decline, he said, was the Paylean ban.

 

Pomerleau, meanwhile, is optimistic China will eventually allow the use of Paylean.

 

In the event of a favorable outcome, Pomerleau said there is an excellent opportunity for Canada to increase its pork sales to China.

 

Rice also added that there will be increased opportunities in the coming years for Canadian exporters to sell higher-quality skeletal meat cuts to China, which currently buys mainly organs such as kidneys or stomachs.