China is geared to re-examine anti-dumping duties on chicken
imported from the U.S. The Chinese government reached this
decision after the World Trade Organization's (WTO) unfavorable
ruling against the country anti dumping duties.
China's Ministry of Commerce initiated anti-dumping and
countervailing investigations of imports of "broiler products"
from the U.S. on Sep 27, 2009. Broiler products include
most chicken products, with the exception of live chickens and
chicken products such as cooked and canned chicken.
Although the U.S. offered to settle the disputes through
consultations, the parties failed to reach a satisfactory
conclusion. The U.S. appealed to the WTO for redressing China's
violation of numerous procedural and substantive obligations
under the WTO's Anti-Dumping Agreement and Agreement on Subsidies
and Countervailing Measures.
In Oct 2013, the WTO concluded that China had unfairly imposed
tariffs on chicken imported from the U.S. Disputes between China
and the U.S. over trade and the U.S. decision to levy tariffs on
several Chinese products impelled China to turn against U.S.
The decision has raised the hopes of U.S. meat processors like
Tyson Foods Inc.
Pilgrims Pride Corp.
Sanderson Farms Inc.
Omega Protein Foods
) and Cargill Inc. regarding increasing exports of meat products
to China. According to the
Wall Street Journal
, Tyson has recently invested heavily to build its own farms in
China. The farms, scheduled to become operational in 2014, will
strengthen the company's position in the booming meat processing
Moreover, the outbreak of avian influenza (bird flu) in the
country has prompted people to refrain from buying local chicken
products. This has opened up new opportunities for Tyson to
increase export to China.
In Sep 2013, Cargill Inc. built a world-class integrated
poultry operation in Lai'an Anhui, China. The project is part of
the company's continuous efforts to bolster its presence in
China's growing market and support the modernization of
agriculture and food safety in China.
The Chinese Ministry of Commerce has decided to look into the
evidence and information obtained in the original anti-dumping
and countervailing investigations. Further, it will carry out
reinvestigations through questionnaires, hearings and other
U.S. chicken exports to China have plunged 80% after China
imposed high anti-dumping duties.
OMEGA PROTEIN (OME): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
SANDERSON FARMS (SAFM): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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