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Brazilian prices allow the US to regain Chinese market share

The latest report from the USDA says that after very sharp falls in the last two years, US exports of chicken feet to China are booming again. According to the USDA report, three years ago (2009), the US exported 377,805 tons of chicken feet to China, a volume which fell by more than 85% the next year, to just 48,219 tons. The fall, however, did not stop there, because in 2011 Chinese imports of US chicken feet from the USA fell to 30,000 tons.

The explanation for the sharp decline in Chinese imports lies in anti-dumping and countervailing measures adopted against the US by the Chinese government in 2010. So, US poultry meat had taxes and costs imposed on it that increased the prices of the product by more than 100% and which made imports from the US plummet.

According to the USDA, after China implemented the anti-dumping and countervailing measures against USA poultry meat in 2010, the unit price in exporting countries in South America increased significantly the following year. In Brazil, for example, the price increase was nearly 25%. This - according to the USDA - ended up making US prices competitive again today it has resulted in some Chinese importers opting for the US product. Even though they have to bear the additional anti-dumping and countervailing measures measure costs, these purchases remain more competitive.

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