China halts US chicken imports

China has blocked millions of dollars worth of US chicken imports, about half of which is chicken feet, in an escalating trade war between the two nations, according to Reuters.

 

China's latest move comes as the US Congress began its deliberation of the 2010 federal budget for agriculture, which could extend a US ban on imports of Chinese chicken products due to food-safety concerns. Furious over the ban, China has stopped US chicken imports though it claimed that imports are not being blocked, according to US exporters.

 

In 2008, China bought 421,000 tonnes, or US$280 million worth, of chicken paws, which are widely used in soups, stews and as snack items, according to the USA Poultry and Egg Export Council. Overall, China purchased 754,000 tonnes of US chicken valued at US$676 million in 2008.

 

If the ban is not eliminated, most US chicken paws will have to be processed into feed or other non-food purposes, resulting in less profit for US chicken processors. One US analyst recently predicted that earnings for chicken producers would be impacted if the ban lasted past September.

 

Last week, Chinese importers told US chicken companies that China was not going to issue import permits for US chicken, thus effectively blocking the poultry for the rest of the year.