August 21, 2006

China switches status from poultry exporter to poultry importer

China has switched from being a net poultry exporter to a net importer during the first six months of 2006, when its poultry industry was buffeted by uncertainties in the market caused by a series of bird flu outbreaks.

Exports of Chinese fresh and frozen poultry meat over the first half of 2006 fell 11 percent, to 65,100 tonnes, compared with the same period in 2005, with Hong Kong the dominant market for Chinese fresh and frozen poultry exports, accounting for 86 percent of the total shipments. In fact, China shed some of its smaller markets during this period.

Its processed poultry exports had better luck, rising 23 percent, to 115,400 tonnes, between January and June compared with the same period in 2005, with deliveries to Japan accounting for close to 90 percent of shipments.

On the other hand, in the first half of the year, imports of fresh and frozen poultry meat nearly doubled to 79 percent compared with 2005, to 285,250 tonnes, outweighing its exports.

Despite bird flu, China is forecasted to increase exports of processed, chilled and frozen poultry by 30 percent in 2006, as demand picks up from Hong Kong and Japan.

China's chicken industry has been consolidating since the outbreak of 2005, veering towards large commercial farms with integrated operations.