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 The
Iowa Pork Producers Association provided the major funding for
a mission in early March to explore the opportunities for pork
exports following the accession of the World Trade Organization
(WTO). "Over the next few years, WTO accession should lead
to lower tariffs, more competition, market reform and legal reform
in China," said Sam Carney, IPPA Vice President of Market
Development. "The changes should be beneficial to pork producers
in Iowa and the U.S."
The members of the pork trade delegation began
the mission with a briefing from U.S. Meat Export Federation
and U.S. Foreign Agricultural Service officials in Beijing. The
delegation then met with officials of China's Ministry of Agriculture
to discuss China's pork industry. "China is the world's
largest producer and consumer of pork, producing 49% of the world's
pork," said Carney. China's inventory of hogs and pigs is
447 million head, compared to 59 million head in the U.S. The
per capita consumption of pork and pork variety meat in China
is 39.4 pounds compared to 53.9 pounds in the U.S.
 The delegation traveled to three
cities in China. Beijing is the capital with a population of
over 12 million people. Shanghai is the largest city with a population
of 17 million people and is the busiest port. Guangzhou is a
southern port city with a population of 10 million people.
The group toured a new pork slaughter facility
using European technology, a pork processing facility, a farrow-to-finish
farm, retail stores, wholesale markets, major distribution facilities
and met with meat importers.
 Representing
the Iowa Pork Producers Association was Tim Bierman of Larrabee,
IPPA President; Sam Carney of Adair, Vice President of Market
Development and Rich Degner, IPPA Executive Director. Representing
the Iowa Farm Bureau was Calvin Rozenboom of Oskaloosa and David
Miller, IFB staff. Representing Iowa State University was Dr.
Elisabeth Huff Lonergan, Assistant Professor of Meat Science
and Mary Holz-Clause, Co-Director of the Ag Marketing Resource
Center. Also participating in the mission was May-May Ng of CK
International in Waukee and John Adams representing the National
Pork Board. Coordinating the successful mission was Mark Fischer
of the Iowa Department of Economic Development.
| Agriculture
in China |
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China is both
a major exporter and a major importer of agricultural products.
Its primary agricultural exports include corn, rice, fruits,
vegetables and poultry. In 2001, China imported $19 billion of
agricultural products. The U.S. is the number one supplier of
agricultural products at 18%, followed by the European Union
at 12%. China is the fastest growing market in the U.S. for agricultural
products with an average annual growth of 15% from 1990 -1998.
In China, pork
accounts for 84% of the red meat production and 67% of the total
meat output. Pork production in China is varied:
- 80% from backyard
operations (typically 4 - 5 head)
- 15% from specialized
households (50+ head per year)
- 5% from large
scale commercial operations (500+ head per year)
In 2001, China
imported 225,625 tons of pork and pork variety meats. The primary
items were feet, tongues, stomachs, kidneys, hearts and neck
bones. The U.S. share was 20% compared to the E.U. share of 63%
and the Canadian share of 15%. Direct sales are now possible
to China with the import duty at 15% and a value-added tax of
13%. Typically, 90 - 95% of the trade transits through Hong Kong.
China has 810
million rural residents and 460 million urban residents. There
is a sharp split in income and lifestyle between these groups.
The government reported that in 2000 the average urban household
spent about $296 for food per capita, and the average rural household
spent about $133 for food per capita.
The modern food
processing industry is located in eastern China, which has access
to seaports, good transportation and technology. Incomes in major
cities in eastern China average about $3000 per year, and incomes
in western China average about $50 per year. The richest 10%
of the people in China are equal to the entire population of
Japan.
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