July 24, 2007

 

Canadian pork eyeing attractive opportunities in China

 

 

Canadian pork shippers are expected to take full advantage of the "attractive opportunities" that are said to exist in China, according to an official with the Canadian Pork Council.

 

Some of the increased opportunity comes amid the ongoing dispute between China and the US over the use of the feed ingredient Paylean, an additive currently banned in China, Martin Rice, executive director with the Canadian Pork Council, said.

 

He acknowledged that the ban wasn't US wide, and only applied to certain individual US facilities.

 

China de-listed a number of US plants about a month ago due to food safety because of concerns over the use of the feed additive. The feed additive has already been approved for use in 30 countries. China, however, hasn¡¯t approved the use of the feed ingredient or adopted any tolerance other than zero, Rice said.

 

Paylean (ractpopamine hydrochloride) is a feed ingredient that increases the amount of quality meat in high-value cuts and improves production efficiency. Paylean directs nutrients away from fat deposition and toward lean deposition.

 

"The amount of opportunity from this particular delisting will be limited, but considering that Canadian pork product exports are currently soft overall, any potential will be welcomed," Rice said.

 

Rice was unable to confirm if any Canadian companies have been approached or have made any sales of pork to China in view of the delisting of those US companies.

 

Canada's pork producers are certainly eligible to participate in any additional purchases that are made into China, Rice said.

 

However, it is believed the Chinese are looking for as many suppliers as they can, not just from the US and Canada, Rice said.

 

Canadian pork product shipments to China have been primarily offals, Rice said. Canada hasn't had an opportunity to sell a lot of muscle meat, but given the price structure in China, there are expected to be opportunities there that haven't existed in the past.

 

Canadian pork product sales to China totalled 37,500 tonnes during calendar year 2004, 46,700 in 2005, and 43,900 in 2006. Through the month of April during 2007, sales of Canadian pork to China totalled 13,700 tonnes, Rice said.

 

China is currently Canada's sixth largest buyer of pork products, Rice said.

 

The pork exported to China doesn't include shipments to Hong Kong, Rice said. Hong Kong is considered a separate market. Pork product shipments to Hong Kong during the past three years have ranged 8,000 to 11,000 tonnes. Shipments during 2007 were expected to be in the 11,000 tonne - range, Rice said.