Analysis of the Overseas Market of China’s Broiler Chicken

劉燕華

Abstract：Broiler chicken industry is one of the most developed industries of China's livestock breeding with high systematization and dimension. In this industry， there are many large-scale enterprises and integrated companies， accounting for more than 50% market share. With the growing of feed and slaughtering enterprises and government supports， some large ones injected huge amounts of money into integrated construction.

Key words：Broiler Chicken； Chinas Broiler Export

1. Analysis of the fluctuation of Chinas broiler export

From 1980 to 1997， Chinese exports of live chickens has been in a rising trend. The average annual growth rate is 5.39 percent and the export price was stable. However， from the beginning of 1998， because of the financial crisis in Southeast Asia， live chicken exports declined in 1999. It reached the highest point in history. After 2000， the live chicken exports continued to decline， especially in China. In 2003， "SARS" outbreak and avian flu occur in 2004， the export of live chickens has been even harder， coming to a standstill. In the 2008 the whole world encountered financial crisis and the live chicken exports reached a record low in 2009， and has caught in the trough since then.

2. Analysis of export competitiveness

International market share of Chinese chicken is the chicken exports accounted for the proportion of world exports of similar products. From 2006 to 2010， the international market share of Chinese chicken remained at 1.55%， staying substantially an increasing trend . In 2010， it reached to a maximum of 1.93%. In 2010， Brazilian chicken international market share is 33.87%. Overall， the international market share of Chinas broiler chicken is still very low. Now the top five countries in export volume of chicken have been selected and compared. France has the most exports in the EU-27 exports， so France is choose as a representative of the European Union. From Table 1， we can see that from 2006 to 2010， Chinese chicken international market share continues to rise， reaching a peak of 1.93% in 2010， but compared with the world's major exporter of chicken meat China still has a long way to go.

3. Analysis of international competitiveness of Chinas broiler chicken

Revealed comparative advantage index refers to export rate of a commodity a country in a given period accounted for the proportion of total exports with the same kind of world merchandise exports accounted for the proportion of the total world exports， reflecting the strength of a country's export trade and a professional advantage. Is generally believed， revealed comparative advantage index of greater than 2.5， indicating that the export product has strong competitiveness； index between 1.25 to 2.5， indicating that the export of products with strong competitiveness； index between 0.8 and 1.25， indicating that the product has a moderate export competitiveness； index is less than 0.8， indicating that the competitiveness of the export products is weak. Index increasing， indicating a competitive advantage gradually increased； the index is falling， it means that the competitive advantages continue to weaken.

4. Major problems of exports of Chinese broiler chicken

The welfare of broiler production can be accessed from two perspectives： through anthropomorphism， where consumers put themselves in the place of livestock and make conclusions about their welfare often based in subjective ideas， or through broiler performance. Broilers that are reared in poor welfare conditions are not able to express their maximum genetic potential. Consumer concerns relative to broiler welfare are becoming increasingly relevant in the meat market.

There is a positive correlation between the strictness of welfare legislation and income of the citizens of a country and consequently their purchasing power （van Horne and Achterbosch， 2008）. These concerns are evident， particularly in the mainland of China， and examples are Directives 1999/74/EC and 2007/43/EG， which established the ban on conventional cages for commercial egg production after 2012， and maximum broiler density， respectively.

5. Create export dominant strategy

The export markets of Chinese chicken products currently is single. 70% are exported to Japan and this situation is not good for the healthy development of broiler industry. we must explore other international market and diversify sales strategy to avoid the risk of over-reliance on the Japanese market. Due to the lower EU tariffs on food products， according to EU import tariffs of the WTO agreements， in 2000 40% of frozen chicken accounted for 40% and cooked food 10.9%. We may consider exporting food products to the EU. In addition， as China and the US consumer market has great differences， we consider exporting our chicken breast to the US market. We must accelerate the improvement of relevant laws and regulations， industrial upgrading as soon as possible， for the early opening of great potential for European and American markets.

Reference

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