Page 170 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China

2.2 Animals and Related Products

Background US$102 million worth of poultry products that year. The
numbers seem to be the result of a big push to improve
The US could lose US$2.2 billion a year due to its standards after previous international trade restrictions due
current trade conflicts with China (Williams). to animal disease outbreaks. The General Administration
China spent most of 2018 avoiding the situation by of Quality Supervision, Inspection and Quarantine (AQSIQ)
reaching out to other nations, specifically those who are claimed 120 million broilers were produced according to
participating in The Belt and Road Initiative, to supply the international standards, adding that it had managed
livestock, meat, and related products. The year was to enroll 49 local breeding companies into various
filled with examples. Ireland was the first beneficiary for international certification programs that are familiar to US
beef imports from the EU in 20 years. Britain and France regulators. China found new access to the EU market for
soon followed as did Canada and Thailand. Meanwhile, three companies and additional avenues opened up for
representatives from the Ukraine and China signed poultry cooked Chinese products. Growth in poultry exports was
agreements. The entire Asian sector is ramping up its well ahead of expectations. China remains the top supplier
global position in the animal product area and may soon of imported chicken to Japan, Hong Kong and Macau, but
dominate the meat market for years to come. production has been flat due to the tightening broiler
supply. Other key markets include the UK, Netherlands,
Livestock Afghanistan, and Mongolia (Rousseau).

The Chinese eat three-times as much meat as they did Pork
in 1990. The country currently produces half of the world’s
pork, and chicken and beef farming are also on the rise, From eggs to meat, China’s livestock and animal
albeit more slowly. In its drive to feed the population, and product industries continue to evolve. When it comes to
allow them the access to cheap meat that the west already meat in China, there’s no competition for pork. China’s pork
enjoys, the country is beginning to embrace the industrial imports are forecast to decline for the third consecutive
farming model and practices pioneered in the US. The year in 2019 as domestic production gains reduce demand
output of animal products will meanwhile continue to of imported pork. The EU, the US, and Canada will remain
increase as China’s urbanization trend persists into the the principal suppliers, competing primarily on price.
future. However, the proportion of pork production will
decline with China’s pork demand having hit a ceiling The pig industry plays a significant role in China’s
and sales falling for the past three years. By 2035, the self- animal husbandry. In 2017, the production volume of pork
sufficiency rate of pork will decrease to 94.78 percent, reached 63.4 million tons in China, accounting for 63.4
while the self-sufficiency rate of beef will rise to 90.51 percent of the total production volume of meat. For many
percent (Li, China to Be). years, the number of pigs in China has always been the
highest in the world. By the end of 2017, the number of pigs
Poultry on hand reached 338 million, 8 percent lower than that in
2016. The number of pig slaughtered amounted to 688.1
China is relatively new to the game when it comes to million in 2017, with an increase of 0.5 percent over the
exporting chicken and other poultry. Efforts by Chinese previous year. From 2000 to 2014, the production volume
poultry firms got a leg up by news that a major poultry- of pork was on the increase in China, which exceeded 50
producing region in eastern China raised exports by 13 million tons in 2010 and then reached a new high of 56.71
percent year on year in 2017. Authorities in Liaocheng in million tons in 2014, with a proportion of 65.1 percent of
Shangdong province have reported that they shipped the total (Research and Markets).

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