Poultry International - January 2020 - 12

12 ❙ PoultryInternational
POULTRY MARKET IN CHINA
Christine McCracken, executive
director of animal protein for Rabobank's
RaboResearch Food & Agribusiness
imprint, said it's possible, given the
ongoing struggles with protein shortages in China, exports could even exceed
historic levels.
But, it will depend on whether Chinese
tastes adapt. Chicken is far behind pork,
fish and beef in consumer preference.
There is also apprehension about modern
broiler genetics in a country that prefers
specialty and heritage breed meat.

Jim Sumner, USA
Poultry & Egg Export
Council Courtesy USA Poultry &
Egg Export Council

Will the deal last?

Paws
The largest initial demand will be for
paws. For years, U.S. jumbo paws flowed
into China through illicit channels to
satisfy national demand for the foodstuff.
Now, Sumner said, the Chinese will pay
on average $0.87 per pound for paws on
an open market. Bienvenu said the price
could be higher than $1.00 per pound, too.
By comparison, in rendering - where
most U.S. paws wind up now - the part
is worth about $0.05 per pound.
There is a cost trade-off associated
with processing paws and shipping them
to China rather than rendering them.
Nevertheless, this is a potential new,
additional revenue stream for integrated
poultry producers in the U.S. Sumner and
Aho said the price paid for the paws will
be worth the trouble.

Ben Bienvenu,
Stephens Inc. Courtesy
Stephens Inc.

Christine McCracken,
Rabobank Courtesy Rabobank

Leg quarters and other parts
Beyond that, there should be a market for
all other chicken parts in China. McCracken
said the resumption of trade with China
should be seen as a part of an overall lift
in protein prices that should help drive the

overall value of the whole bird.
As for leg quarters, Bienvenu said the
price will likely rise based on stronger
demand coming from China. Even if there
are cultural reservations, the need for
meat is profound and the prices are too
attractive to ignore. On a broader scale,
he said the agreement signals the seriousness of China's meat supply problem and
is a good indicator the country is ready to
buy U.S. protein.

Paul Aho, Poultry
Perspective Benjamin Ruiz

China is a rising strategic rival to the U.S.
and an essential trading partner. It has
a history of creating friction in international trade. As of press time, the world's
two largest economies are still locked in
a so-called trade war. But, on this issue at
least, the U.S. could have an open door to
China well into the future.
Opinions ranged, but those consulted
for this article were cautiously optimistic
about the future of the market.
McCracken said, unless there's an
outbreak of HPAI, trade should go on
unimpeded for now. Sumner was positive
about the future of the relationship. He said
a bilateral regionalization agreement is the
next goal. Moreover, the U.S. is working
to gain approvals to export eggs as well as
breeding stock and hatching eggs, too.
Aho said the situation looks good now.
But he cautioned that China can close trade
off, too, just as it has in the past. He was
reminded of Russia, a former major trading
partner, who over the years stopped and
started poultry trade unpredictably.
"That's not a good market to have,"
Aho said. "In the end, we are better off
without Russia." ■
www.WATTAgNet.com ❙ January 2020


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Poultry International - January 2020

Table of Contents for the Digital Edition of Poultry International - January 2020

Poultry International - January 2020
Contents
Editor’s Comment
WATTAgNet.com
ASF drives global poultry market in 2020
US could find $1 billion market in China
PEAL succeeds as Rwanda’s first integrated poultry farm
Rwanda plans significant increase in chicken, egg output
Indian poultry to gain from food sector modernization
European Reference Center for poultry in operation
Mediterranean poultry: Solutions for everyone in Córdoba
Egg associations key for sector’s sustainable growth
Gen Z moms will dig deeper for information on chicken
Feed additives that will succeed in 2020 and beyond
Poultry processing staff key to cost and loss control
Products
Marketplace
Advertisers’ Index
Poultry International - January 2020 - CT1
Poultry International - January 2020 - CT2
Poultry International - January 2020 - Poultry International - January 2020
Poultry International - January 2020 - Cover2
Poultry International - January 2020 - Contents
Poultry International - January 2020 - Editor’s Comment
Poultry International - January 2020 - 3
Poultry International - January 2020 - 4
Poultry International - January 2020 - WATTAgNet.com
Poultry International - January 2020 - ASF drives global poultry market in 2020
Poultry International - January 2020 - 7
Poultry International - January 2020 - 8
Poultry International - January 2020 - 9
Poultry International - January 2020 - US could find $1 billion market in China
Poultry International - January 2020 - 11
Poultry International - January 2020 - 12
Poultry International - January 2020 - 13
Poultry International - January 2020 - PEAL succeeds as Rwanda’s first integrated poultry farm
Poultry International - January 2020 - 15
Poultry International - January 2020 - 16
Poultry International - January 2020 - 17
Poultry International - January 2020 - Rwanda plans significant increase in chicken, egg output
Poultry International - January 2020 - 19
Poultry International - January 2020 - Indian poultry to gain from food sector modernization
Poultry International - January 2020 - 21
Poultry International - January 2020 - 22
Poultry International - January 2020 - 23
Poultry International - January 2020 - European Reference Center for poultry in operation
Poultry International - January 2020 - 25
Poultry International - January 2020 - Mediterranean poultry: Solutions for everyone in Córdoba
Poultry International - January 2020 - 27
Poultry International - January 2020 - 28
Poultry International - January 2020 - 29
Poultry International - January 2020 - Egg associations key for sector’s sustainable growth
Poultry International - January 2020 - 31
Poultry International - January 2020 - Gen Z moms will dig deeper for information on chicken
Poultry International - January 2020 - 33
Poultry International - January 2020 - Feed additives that will succeed in 2020 and beyond
Poultry International - January 2020 - 35
Poultry International - January 2020 - 36
Poultry International - January 2020 - 37
Poultry International - January 2020 - Poultry processing staff key to cost and loss control
Poultry International - January 2020 - 39
Poultry International - January 2020 - 40
Poultry International - January 2020 - 41
Poultry International - January 2020 - Products
Poultry International - January 2020 - 43
Poultry International - January 2020 - Advertisers’ Index
Poultry International - January 2020 - Cover3
Poultry International - January 2020 - Cover4
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