The Impact of World Trade on Poultry Production

An editorial on free trade in The New York Times might seem to be unusual Christmas Day reading but is relevant in the spirit of the holiday which offers “goodwill to all”.

Written as a counter to the strident calls for protectionism and trade barriers to preserve domestic jobs in the USA from outsourcing, the article cites the success of the aviation giant Boeing.

This Company received orders for 67 of their updated 747 model during the past year valued at €13 billion. What is important is that many of the planes are in freighter configuration, designed specifically to move products including perishables from areas of low-cost production to consumers in the affluent regions of the World. Although Boeing assembles aircraft in the USA many of the components are fabricated in a wide range of countries providing economic benefits to entrepreneurs and workers alike.

US/China’s poultry export deal
A recent and connected announcement by Richard Raymond, USDA Under Secretary for Food Safety, is extremely relevant in the context of relaxing trade restrictions. A request by China to export added-value cooked broiler meat to the USA has received Departmental approval on scientific and regulatory grounds. The proposed rule will be forwarded to the Office of Management and Budget, a Cabinet-level Agency before Congressional oversight.

Export of US-origin poultry meat from China
Previously USDA approved a number of plants in China to process US-origin poultry meat for re-export to the USA as cooked product. A hollow concession since the cost of double freight would render any potential bilateral trade uneconomic.

US poultry parts exports to China up 145%
During the first 10 months of 2006, the USA exported 300,000 m tons of poultry parts comprising feet, gizzards and leg quarters to China, a 145% increase over the corresponding period in 2005. The value of €155 million in unilateral trade in broiler products has represented an issue of contention and was the subject of negotiation at recent Ministerial level meetings in Beijing on trade and currency alignment.

World Bank economy predictions
The World Bank forecasts that the World economy will triple from the current value of €27 trillion over the next 25 years. This will require free trade and expedited transport with realistic currency conversion. Free trade will benefit both agricultural and industrialized Nations and expand poultry production which embodies the efficiency of feed conversion and application of technology.


By: Simon Shane