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China extends anti-dumping duties on Chicken from Brazil:

2020/1/13 16:41:24

Earlier 2019 Chinese Ministry of Commerce announced the extending of anti-dumping duties on imported white feather broilers and chicken products that are originated from Brazil. According to the statement issued by the commerce ministry, the Chinese importer of Brazilian chicken will be required to pay deposits ranging from 18.8% to 38.4% of the value of their shipment. A preliminary ruling from the ministry found that Chinese producer has been “substantially damaged” by shipments from Brazil between 2013 and 2016 when the country supplied more than half of China’s imports of chicken meat. According to the ministry,” during the period of damage investigated, the quantity of imported products and market share from Brazil have continuously increased, and the prices of similar domestic products have been drastically reduced, causing serious damaged to the domestic industry. Although, the duties are imposed for a five year period and are considered” deposits” by the Chinese government, according to industry experts these duties are often not reversed in practice.

Brazil is the largest broiler meat importer in China, as in 2017 the country imported 382,000 metric tons of chicken that accounted for 85% of China’s total broiler imports. The products that have been included in the dumping deposit account for almost all of Brazil’s broiler import to China that also include chicken paws. Though the dumping duties will not completely limit the imports of Brazilian broiler chicken as 14 companies have been exempted from such taxes but it will surely increase the demand for imported white feather broiler products from other sources.

Currently, the Chinese poultry industry is experiencing a high demand and low supply situation because of the rise in the price of pork. Chinese Chicken consumption is projected to reach 15.96MMT till 2020, approximately 15% up from 2019 and so as the imports to 600,000 MT in 2020. However, the share of Brazil is projected to decrease in impact to anti-dumping duties and price agreement with China, yet Brazil will remain the leading supplier in 2020 as Brazilian Agricultural Secretary has provided China a list of additional 78 new plants for poultry, pork, and beef seeking approval for exports. The gap created by low Brazilian imports is expected to be filled by the US importer and France, as China has recently lifted the ban from the US and French poultry importers.  The Chinese government is also trying to decrease the protein deficiency in the country by encouraging pork farmers to switch to chicken farming.

For more information on China’s agricultural market, please contact us at econtact@tranalysis.com


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