Required Report - public distribution

**Date:** 9/1/2005

**GAIN Report Number:** CH5063

CH5063

**China, Peoples Republic of**

**Livestock and Products**

**Annual Report**

**2005**

**Approved by:**

![](media/image1.wmf)Casey Bean

U.S. Embassy

**Prepared by:**

Casey Bean/Zhang Jianping

**Report Highlights:**

During July 2005, China announced that 52 U.S. facilities are approved
to export bovine semen and embryos, though the December 2003 import
suspension remains on U.S. beef, live cattle and other beef products.
USDA is coordinating an October visit to the U.S. by a Chinese expert
team to further study the BSE situation and beef safety. China\'s beef
production in 2006 is forecast to increase 6.4 percent to 7.6 MMT, and
pork production will increase 4 percent to 50.9 MMT. Effective on July
1, 2005, China will no longer issue import quarantine permits for
processing meats, and export plants in all other countries, except the
U.S., must be audited and registered. However, meat from approved plants
in these other countries will now directly compete with U.S. products in
China\'s retail meat market. The pre-inspection in Hong Kong for
transshipped meat to China will also lead to a higher volume of direct
shipments to China.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Cattle and Beef 4**](#cattle-and-beef)

[Post forecasts China's beef and veal production increases to 6.4
percent to 7.6 MMT
4](#post-forecasts-chinas-beef-and-veal-production-increases-to-6.4-percent-to-7.6-mmt)

[Foot and mouth disease (FMD) in China
4](#foot-and-mouth-disease-fmd-in-china)

[Beef consumption in 2006 forecast to increase 6.3 percent to 7.6 MMT
4](#beef-consumption-in-2006-forecast-to-increase-6.3-percent-to-7.6-mmt)

[Beef prices are forecast at high levels in 2006
5](#beef-prices-are-forecast-at-high-levels-in-2006)

[China resumed importation of U.S. bovine genetic materials
5](#china-resumed-importation-of-u.s.-bovine-genetic-materials)

[China's Beef and veal imports forecast to drop 40 percent in 2005 and
remain flat in 2006
5](#chinas-beef-and-veal-imports-forecast-to-drop-40-percent-in-2005-and-remain-flat-in-2006)

[Chinese experts to conduct a second BSE study in October
5](#chinese-experts-to-conduct-a-second-bse-study-in-october)

[Hong Kong and Macao lift ban on imported Canadian beef, but will not
re-export to China
6](#hong-kong-and-macao-lift-ban-on-imported-canadian-beef-but-will-not-re-export-to-china)

[Live cattle imports forecast 24 percent down to 100,000 head in 2005,
and another 20 percent down to 80,000 head in 2006
6](#live-cattle-imports-forecast-24-percent-down-to-100000-head-in-2005-and-another-20-percent-down-to-80000-head-in-2006)

[Beef and Veal Exports for 2006 forecast to increase 20 percent to
90,000 MT
6](#beef-and-veal-exports-for-2006-forecast-to-increase-20-percent-to-90000-mt)

[Live cattle exports in 2006 forecast to increase 4.8 percent to 65,000
head
6](#live-cattle-exports-in-2006-forecast-to-increase-4.8-percent-to-65000-head)

[PSD---Cattle 7](#psdcattle)

[PSD---Beef 8](#psdbeef)

[Swine and Pork 13](#swine-and-pork)

[China's pork production during 2006 forecast to increase 4 percent to
50.9 MMT
13](#chinas-pork-production-during-2006-forecast-to-increase-4-percent-to-50.9-mmt)

[Pig-born disease, Streptococcus suis
13](#pig-born-disease-streptococcus-suis)

[Pork consumption for 2006 forecast to grow 4 percent to 50.4 MMT
14](#pork-consumption-for-2006-forecast-to-grow-4-percent-to-50.4-mmt)

[Pork prices forecast from steady to weak in the second half of 2005
14](#pork-prices-forecast-from-steady-to-weak-in-the-second-half-of-2005)

[Pork imports in 2006 forecast to decrease 28.5 percent to 50,000 MT due
to domestic production increases, higher international prices and import
policy changes
14](#pork-imports-in-2006-forecast-to-decrease-28.5-percent-to-50000-mt-due-to-domestic-production-increases-higher-international-prices-and-import-policy-changes)

[Import policy change impact China's imports and challenge U.S. exports
15](#import-policy-change-impact-chinas-imports-and-challenge-u.s.-exports)

[List of eligible exporting countries and products to China
15](#list-of-eligible-exporting-countries-and-products-to-china)

[China's pork exports during 2006 forecast at 584,000 MT, a 4.8 percent
increase from 2005
16](#chinas-pork-exports-during-2006-forecast-at-584000-mt-a-4.8-percent-increase-from-2005)

[Live swine exports in 2006 are forecast to increase 5 percent to 2.2
million head
16](#live-swine-exports-in-2006-are-forecast-to-increase-5-percent-to-2.2-million-head)

[PSD---Swine 17](#psdswine)

[PSD---Pork 18](#psdpork)

Executive Summary

In July 2005, China announced approval of 52 U.S. facilities to export
bovine semen and embryos to China, though China agreed to lift the ban
on these BSE low risk products at the technical bilateral meetings back
in November 2004. The final step is U.S.-China agreement on language for
the USDA health certificate. This marks the first market access for U.S.
bovine products since China suspended all U.S. live cattle and beef
products in December 2003. The Chinese Government and USDA officials are
also coordinating a visit to the U.S. by Chinese experts to study the
BSE situation in October 2005.

On July 11, 2005, USDA's Secretary Johanns and AQSIQ Minister Li
initialed a bilateral Memorandum of Understanding (MOU) regarding food
safety and animal and plant health cooperation. This agreement will also
foster U.S.-China discussions on resolving meat trade issues.

Post forecasts China's beef production in 2006 at 7.6 million MT, a 6.4
percent increase from 2005. Strong demand and lagging production,
combined with reduced imports due to BSE restrictions, will drive
expansion of China's cattle and beef industry in 2006. Foot and mouth
disease (FMD) will not significantly impact China's beef production due
to the government's apparent efforts to stem any spread. Beef prices are
forecast at high levels for the remainder of the year. Beef consumption
for 2006 is forecast to increase over 6 percent to 7.6 MMT due to
slaughter increases and the slower pace of export growth.

Post forecasts China's pork production during 2006 at 50.9 MMT, a
4-percent increase from 2005. Pork production will continue growing due
to steady domestic consumption and export increases. The pork and beef
production increases have offset the slower pace of broiler meat
production because of avian influenza (AI) outbreaks in China. Pork
prices are forecast from steady to weak due to lower feed grain prices.
Pork consumption is forecast to increase 4 percent to 50.4 million MT
mainly due to steady population growth.

Post forecasts China's beef imports will drop 40 percent to 6,000 MT in
2005, and during 2006 imports will remain flat because of continued BSE
restrictions, domestic production increases, higher international prices
and import policy changes. China's live cattle imports are forecast to
decrease 20 percent to 80,000 head. Higher international prices and
domestic import policy change reversed China's import picture.

Australia and New Zealand have captured almost all China's cattle and
beef import market. The pace of growth in China's beef exports is
forecast smaller, at 20 percent, to 90,000 MT in 2006. The slightly
appreciated RMB will make China's exports less competitive.

Post forecasts China's pork imports to decrease 28.5 percent to 50,000
MT also due to domestic production increase, higher international prices
and import policy change. China's pork exports in 2006 are forecast to
increase 4.8 percent to 584,000 MT due to export market demand increase,
especially Japan and Russia. China is a net live swine exporter to Hong
Kong and Macao accounting for 99 percent of its total exports.

# Cattle and Beef

## Post forecasts China's beef and veal production increases to 6.4 percent to 7.6 MMT

China's cattle and beef industry will continue expanding in 2006 due to
strong demand. Post forecasts China's end-of-year cattle inventory for
2006 to increase 1.3 percent to 142 million head from the estimated 140
million head in 2005. Slaughtered cattle for 2006 are forecast to
increase 6.2 percent to 56.7 million head from the estimated 53.4
million head in 2005. Beef production is forecast at 7.6 MMT, a 6.4
percent increase from the estimated 7.1 MMT in 2005. Beef share is
forecast to account for 9.6 percent of China's total meat production,
one percent higher since 2001. Steady slaughter increases are partly due
to increased dairy cow slaughter for the low-end beef market. High-end
market beef demand is met by imports.

Strong domestic demand continues to drive beef production due to China's
continued economic growth. GDP growth was 9.5 percent in the first half
of 2005. Per capital farmer income increased 12.5 percent, and urban
resident income increased 9.5 percent. This has resulted in greater
consumption of meat, more out of home dining and access to ready-made
beef in supermarkets.

Last year's tax exemption (or elimination, depending on the province)
for grain farmers has given farmers incentives to increase grain
plantation resulting in feed production up. Improved feed ingredients
and feeding management have helped increase unit slaughter weight from
132.8 kg in 2002 to forecast 134.7 kg in 2006.

China's per capita beef is only about 5.5 kg, far below the Western
countries, demonstrating the tremendous growth potential for China's
cattle and beef industry. China is preparing the "11^th^ Five-Year
Economic Development Plan" (2006-2010). Cattle, beef and dairy
industries are priorities on the agenda. Strong demand and lagging
production, combined with reduced imports due to BSE-related
restrictions, will drive China's beef prices at high levels and drive
China's cattle and beef industries to expand in the next couple of
years.

Realistically, China faces huge challenges to expand the cattle sector.
China lacks grass and forage resources, breeding stock, water and energy
resources as well as transportation facilities. Animal disease control
is still a daunting task. New policies of tightening land use,
tightening breeding animal imports and rising labor cost all constrain
China's cattle and beef industry.

## Foot and mouth disease (FMD) in China

During 2005 China's Ministry of Agriculture (MOA) notified to
International Organization of Animal Health (OIE), for the first time,
outbreaks of FMD -- virus type Asia 1. Over 800 cases and about 5,000
head cattle were culled. The Government provided a RMB 4,000-5,000
(\$500-600) subsidy to each culled animal. The FMD cases were spread
over a distance of about 4,000 km from east China (Shandong, Jiangsu,
Hebei, Beijing) to the center Gansu, Midwest (Qinghai) and the Northwest
(Xinjiang). However, the FMD has not significantly impacted China's
cattle production due to the scattered, small herd sizes. Most cattle
are raised in small, family farms. Animal diseases have made it
increasingly difficult for China to open or maintain bilateral meat
export agreements.

## Beef consumption in 2006 forecast to increase 6.3 percent to 7.6 MMT

Post forecasts China's beef consumption in 2006 at 7.6 MMT, a 6.3
percent increase from the estimated 7.1 MMT in 2005. The pace of growth
in consumption in 2006 is forecast slightly higher than 2005 due to
continued production increases and the smaller pace of export growth.

High quality imported beef cuts like fillets are used for fried dishes
at hotels and restaurants for high-end consumers. Local beef cuts with
more fat are used for making meatballs, dumplings or hot pot. Beef with
more marble lines and beef tendon is used for cold dishes. The most
popular imported beef cuts are chuck rolls and rib eye rolls for hot
pot. Hotels and restaurants access to beef from wholesale markets or
processing plants, while home-cooking consumers get beef from
supermarkets or wet markets. For red meat, wealthier Chinese in urban
areas increasingly prefer beef and goat meat for health reasons. Rural
consumers prefer pork because of lower pricing and convenient cooking.

## Beef prices are forecast at high levels in 2006

In the first half of 2005, average domestic wholesale beef prices
increased 5.5 percent from \$1.83 to 1.93 per kilogram over the same
period of 2004, and average retail prices increased 8 percent. The
average price for imported beef during January to June 2005 increased
129 percent to \$6.47 per kilogram over the same period of 2004,
partially reflecting the ban on U.S. beef and higher international beef
prices. Domestic prices were pushed up by production costs for feed,
energy, water and transportation. The prices in the second half of 2005
are forecast to remain high due to insufficient grass and forage
supplies, which may continue into 2006. The higher pricing of imported
beef has led to consumers' shifting more to domestic beef.

## China resumed importation of U.S. bovine genetic materials

China announced approval of 52 U.S. facilities to export frozen bovine
semen and embryos during the 16^th^ meeting of the U.S.-China Joint
Commission of Commerce and Trade (JCCT) held in Beijing on July 11,
2005. Earlier this year, the Chinese quarantine authorities, AQSIQ,
audited and registered all of them. AQSIQ and USDA's APHIS are working
to finalize the language of APHIS's export certificate before trade can
actually resume. Prior to China's BSE-related trade suspension on U.S.
cattle, beef and products, U.S. exports of semen and embryos exceeded
\$1 million. Further, China changed it policy to tighten control of
breeding cow imports against misuse of tariff-free breeding cows for
commercial purpose. Combined with China's critical shortage of genetic
stocks to improve dairy industry, frozen bovine semen and embryos
imports will increase steadily.

## China's Beef and veal imports forecast to drop 40 percent in 2005 and remain flat in 2006

Beef imports are forecast to decrease 40 percent to 6,000 MT in 2005 and
remain flat in 2006 because of continued BSE restrictions, domestic
production increases, higher international prices and import policy
changes. As mentioned above, the average price for imported beef
increased 129 percent to \$6.47 per kilogram over the same period of
2004. Although Chinese consumers prefer U.S. grain-fed beef for its
tenderness, Chinese importers shifted beef trade from the U.S. to
Australia and New Zealand due to BSE restrictions. As a result,
Australia and New Zealand captured 66 and 33 percent respectively of
China's imported beef market share during January-June 2005. Given the
uncertainty of when China will lift its import suspension on U.S. and
Canadian beef, this trade pattern will likely continue into 2006.

## Chinese experts to conduct a second BSE study in October

At the 16^th^ JCCT meeting in Beijing, China agreed to send a second
technical group to study BSE in the U.S. in October 2005. The first
group went to the U.S. in September 2004, and the resulting report led
to China lifting the trade ban on U.S. bovine semen and embryos and
non-protein bovine tallow. However, a year's time was still needed to
lift the trade ban on even these non-risk BSE products. The length of
time it will take for China to lift the ban on U.S. beef is uncertain.

## Hong Kong and Macao lift ban on imported Canadian beef, but will not re-export to China

During 2005, Hong Kong and Macao lifted their ban on imported Canadian
beef products, but they will not issue re-export health certificates for
beef transshipments from Canada to China because the mainland still has
a ban on Canadian beef. The small amount of Hong Kong re-exports of
Canadian beef to China shown in Hong Kong trade data reflect an error in
the tariff lines (HS Codes) or gray channel trade. The same reasons
could explain why imports of U.S. beef to China through Hong Kong are
shown in Hong Kong data. Hong Kong's re-opening to Canadian beef has
impacted China's beef exports to Hong Kong, causing a 20 percent drop in
exports from 7,914 MT to 6,320 MT during January to June 2005 compared
with that of 2004.

## Live cattle imports forecast 24 percent down to 100,000 head in 2005, and another 20 percent down to 80,000 head in 2006 

FAS Beijing revised the previous live cattle forecast from the February
2005 semi-annual report (CH5010) due to import policy changes and higher
international cow prices. China tightened its import approval for
breeding cows to curb malpractice of using tariff-free breeding cows for
commercial milking. This reduction in live cattle imports has stymied
China's efforts to improve dairy genetics and management. China does not
import U.S. and Canadian cattle due to BSE bans, and the short supplies
have pushed prices up considerably. China's year-on-year average price
for an imported cow increased 5.9 percent from \$1,400 to \$1,480 in the
first half of 2005. Tightened import controls and higher prices will
continue to constrain live cattle imports and lead to more imports of
frozen bovine semen and embryos.

## Beef and Veal Exports for 2006 forecast to increase 20 percent to 90,000 MT

China's beef and veal exports for 2006 are forecast at 90,000 MT, a 20
percent increase from the estimated 75,000 MT in 2005 mainly due to
higher demand in export markets such as South Korea and Japan. Although
Hong Kong is still China's largest export market, the market share in
the first half of 2005 dropped 20 percent from 7,914 MT to 6,320 MT over
the same period of 2004. Hong Kong's rising imports of Canadian
beef\--after it lifted its ban on Canadian beef in the latter half of
2004\--has led to decreased of imports from the mainland. Part of the
gap was replaced by Hong Kong's increase in live cattle imports.

China's beef exports to Russia decreased 86 percent in the first half of
2005 not only due to Russia's TRQ restrictions but also due to concerns
about China's animal diseases such as FMD. However, increased beef
exports to South Korea and Japan filled the gap left by Hong Kong and
Russia. The pace of growth in China's beef exports for 2006 is forecast
lower than 2005 due to continuing decreased exports to Hong Kong. Also,
a stronger RMB will make China's exports less competitive in 2006.

## Live cattle exports in 2006 forecast to increase 4.8 percent to 65,000 head

China's live cattle exports are forecast to increase 4.8 percent to
66,000 head from the estimated 62,000 head in 2005 because of demand in
Hong Kong and Macao.

# PSD---Cattle

  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- --------- -------
  **PSD Table**                                                                                

  **Country**      **China,                                                                    
                   Peoples                                                                     
                   Republic                                                                    
                   of**                                                                        

  **Commodity**    **Animal                                    (1000                           
                   Numbers,                                    HEAD)                           
                   Cattle**                                                                    

                   2004       Revised    2005       Estimate   2006       Forecast   UOM       

                   USDA       Post       USDA       Post       USDA       Post                 
                   Official   Estimate   Official   Estimate   Official   Estimate             
                   \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]              

  **Market Year               01/2004               01/2005               01/2006    MM/YYYY   
  Begin**                                                                                      

  Total Cattle     134672     134672     138728     137818     142643     140383     (1000     
  Beg. Stks                                                                          HEAD)     

  Dairy Cows Beg.  8932       8932       11500      11020      0          13224      (1000     
  Stks                                                                               HEAD)     

  Beef Cows Beg.   62830      62830      65340      65340      0          67950      (1000     
  Stocks                                                                             HEAD)     

  Production (Calf 54649      54162      57381      56870      0          59500      (1000     
  Crop)                                                                              HEAD)     

  Intra EC Imports 0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Total Imports    132        132        150        100        0          80         (1000     
                                                                                     HEAD)     

  TOTAL Imports    132        132        150        100        0          80         (1000     
                                                                                     HEAD)     

  TOTAL SUPPLY     189453     188966     196259     194788     142643     199963     (1000     
                                                                                     HEAD)     

  Intra EC Exports 0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Total Exports    59         59         65         62         0          65         (1000     
                                                                                     HEAD)     

  TOTAL Exports    59         59         65         62         0          65         (1000     
                                                                                     HEAD)     

  Cow Slaughter    0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Calf Slaughter   0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Other Slaughter  49914      50189      53051      53400      0          56700      (1000     
                                                                                     HEAD)     

  Total Slaughter  49914      50189      53051      53400      0          56700      (1000     
                                                                                     HEAD)     

  Loss             752        900        500        950        0          955        (1000     
                                                                                     HEAD)     

  Ending           138728     137818     142643     140383     0          142243     (1000     
  Inventories                                                                        HEAD)     

  TOTAL            189453     188966     196259     194795     0          199963     (1000     
  DISTRIBUTION                                                                       HEAD)     

  Calendar Yr.     0          0          0          0          0          0          (1000     
  Imp. from U.S.                                                                     HEAD)     

  Calendar Yr.     0          0          0          0          0          0          (1000     
  Exp. to U.S.                                                                       HEAD)     
  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- --------- -------

# PSD---Beef 

  ---------------- ---------- ---------- ---------- ---------- ----------- ---------- --------- -------
  **PSD Table**                                                                                 

  **Country**      **China,                                                                     
                   Peoples                                                                      
                   Republic                                                                     
                   of**                                                                         

  **Commodity**    **Meat,                                     (1000 MT                         
                   Beef and                                    CWE)(1000                        
                   Veal**                                      HEAD)                            

                   2004       Revised    2005       Estimate   2006        Forecast   UOM       

                   USDA       Post       USDA       Post       USDA        Post                 
                   Official   Estimate   Official   Estimate   Official    Estimate             
                   \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]     \[New\]              

  **Market Year               01/2004               01/2005                01/2006    MM/YYYY   
  Begin**                                                                                       

  Slaughter        49914      50189      53051      53400      0           56700      (1000     
  (Reference)                                                                         HEAD)     

  Beginning Stocks 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Production       6683       6759       7110       7180       0           7640       (1000 MT  
                                                                                      CWE)      

  Intra EC Imports 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Total Imports    5          10         15         6          0           6          (1000 MT  
                                                                                      CWE)      

  TOTAL Imports    5          10         15         6          0           6          (1000 MT  
                                                                                      CWE)      

  TOTAL SUPPLY     6688       6769       7125       7186       0           7646       (1000 MT  
                                                                                      CWE)      

  Intra EC Exports 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Total Exports    61         61         72         75         0           90         (1000 MT  
                                                                                      CWE)      

  TOTAL Exports    61         61         72         75         0           90         (1000 MT  
                                                                                      CWE)      

  Human Dom.       6627       6708       7053       7111       0           7556       (1000 MT  
  Consumption                                                                         CWE)      

  Other Use,       0          0          0          0          0           0          (1000 MT  
  Losses                                                                              CWE)      

  TOTAL Dom.       6627       6708       7053       7111       0           7556       (1000 MT  
  Consumption                                                                         CWE)      

  Ending Stocks    0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  TOTAL            6688       6769       7125       7186       0           7646       (1000 MT  
  DISTRIBUTION                                                                        CWE)      

  Calendar Yr.     0          0          0          0          0           0          (1000 MT  
  Imp. from U.S.                                                                      CWE)      

  Calendar Yr.     0          0          0          0          0           0          (1000 MT  
  Exp. to U.S.                                                                        CWE)      
  ---------------- ---------- ---------- ---------- ---------- ----------- ---------- --------- -------

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         NO         18,165         57,848     35,257     100        100        100        -39.05

  Australia     NO         15,572         31,316     23,418     85.73      54.13      66.42      -25.22

  New Zealand   NO         1,560          26,532     11,839     8.59       45.87      33.58      -55.38

  United States NO         1,022          \-         \-         5.63       0          0          0

  Canada        NO         11             \-         \-         0.06       0          0          0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year Ending:                                                                                   
  December                                                                                       

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World         NO         11,432         50,007     132,446    100        100        100        164.85

  Australia     NO         9,280          41,179     69,406     81.18      82.35      52.4       68.55

  New Zealand   NO         \-             7,795      63,032     0          15.59      47.59      708.62

  Mexico        NO         \-             \-         8          0          0          0.01       0

  United States NO         256            1,022      \-         2.24       2.04       0          -100

  Canada        NO         1,896          11         \-         16.59      0.02       0          -100
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Beef and                                                                                   
  Veal,                                                                                           

  Year To Date:                                                                                   
  January - June                                                                                  

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World          T          5,296          1,655      601        100        100        100        -63.66

  Australia      T          1,281          1,063      579        24.2       64.21      96.29      -45.51

  Uruguay        T          \-             \-         11         0          0          1.9        0

  New Zealand    T          76             129        10         1.44       7.79       1.6        -92.54

  China          T          \-             1          \-         0.01       0.03       0.08       -16.67

  Japan          T          \-             \-         \-         0          0          0.06       0

  Thailand       T          5              \-         \-         0.09       0          0.05       0

  Taiwan         T          \-             \-         \-         0          0.01       0.02       -33.33

  Korea South    T          \-             \-         \-         0          0          0          1100

  Germany        T          \-             \-         \-         0          0          0          -100

  Brazil         T          417            422        \-         7.88       25.5       0          -100

  Canada         T          39             \-         \-         0.74       0          0          0

  United States  T          3,476          41         \-         65.64      2.46       0          -100
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Beef and                                                                                   
  Veal,                                                                                           

  Year Ending:                                                                                    
  December                                                                                        

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World          T          11,488         8,395      3,451      100        100        100        -58.89

  Australia      T          2,139          2,231      2,159      18.62      26.58      62.57      -3.23

  New Zealand    T          210            112        825        1.83       1.33       23.91      638.36

  Brazil         T          24             467        422        0.21       5.57       12.23      -9.71

  United States  T          8,761          5,533      41         76.26      65.91      1.2        -99.25

  Uruguay        T          \-             \-         2          0          0          0.07       0

  China          T          \-             \-         1          0          0          0.02       90.73

  Taiwan         T          2              5          \-         0.02       0.06       0.01       -96.43

  Germany        T          \-             \-         \-         0          0          0          0

  Korea South    T          \-             1          \-         0          0.01       0          -98.03

  Thailand       T          7              6          \-         0.06       0.07       0          -100

  Japan          T          \-             \-         \-         0          0          0          -100

  Singapore      T          \-             \-         \-         0          0          0          0

  South Africa   T          1              \-         \-         0.01       0          0          0

  France         T          \-             \-         \-         0          0          0          0

  Canada         T          343            39         \-         2.99       0.47       0          -100
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

+----+-----------------+-----------+-------------+----------+--------+
| *  |                 |           |             |          |        |
| *W |                 |           |             |          |        |
| or |                 |           |             |          |        |
| ld |                 |           |             |          |        |
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| tl |                 |           |             |          |        |
| as |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| *  |                 |           |             |          |        |
| *P |                 |           |             |          |        |
| ro |                 |           |             |          |        |
| du |                 |           |             |          |        |
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| G  |                 |           |             |          |        |
| ro |                 |           |             |          |        |
| up |                 |           |             |          |        |
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|    |                 |           |             |          |        |
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| xp |                 |           |             |          |        |
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| ts |                 |           |             |          |        |
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| C  |                 |           |             |          |        |
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| na |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| ** |                 |           |             |          |        |
| Qu |                 |           |             |          |        |
| an |                 |           |             |          |        |
| ti |                 |           |             |          |        |
| ty |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| *  |                 |           |             |          |        |
| *J |                 |           |             |          |        |
| an |                 |           |             |          |        |
| ua |                 |           |             |          |        |
| ry |                 |           |             |          |        |
|  - |                 |           |             |          |        |
| Ju |                 |           |             |          |        |
| ne |                 |           |             |          |        |
| ** |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
|    |                 |           |             |          | **%    |
|    |                 |           |             |          | Ch     |
|    |                 |           |             |          | ange** |
+----+-----------------+-----------+-------------+----------+--------+
| ** | **Origin**      | **- KG -  | **- KG -    | **- KG - | **-    |
| Ra |                 | 2003**    | 2004**      | 2005**   | 05/04  |
| nk |                 |           |             |          | -**    |
| ** |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 0  | -The World-     | 4,533,494 | 1,428,016   | 654,398  | -54.17 |
+----+-----------------+-----------+-------------+----------+--------+
| 1  | New Zealand     | 310,542   | 181,501     | 168,145  | -7.36  |
+----+-----------------+-----------+-------------+----------+--------+
| 2  | Australia       | 107,269   | 27,289      | 143,707  | 426.61 |
+----+-----------------+-----------+-------------+----------+--------+
| 3  | Brazil          | 302,842   | 294,885     | 125,386  | -57.48 |
+----+-----------------+-----------+-------------+----------+--------+
| 4  | Argentina       | 303,825   | 24,000      | 108,677  | 352.82 |
+----+-----------------+-----------+-------------+----------+--------+
| 5  | Canada          | 48,696    | 74,046      | 69,526   | -6.1   |
+----+-----------------+-----------+-------------+----------+--------+
| 6  | India           | 239,025   | 233,652     | 25,000   | -89.3  |
+----+-----------------+-----------+-------------+----------+--------+
| 7  | Austria         | \-        | \-          | 13,908   | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 8  | United States   | 2,606,757 | 132,370     | 49       | -99.96 |
+----+-----------------+-----------+-------------+----------+--------+
| 9  | Denmark         | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 10 | Germany, Fed    | 56,585    | 53,813      | \-       | -100   |
|    | Rep             |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 11 | Netherlands     | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 12 | France          | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 13 | Italy           | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 14 | Swis            | \-        | \-          | \-       | 0      |
|    | s/Liechtenstein |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 15 | Ireland         | 435,461   | 178,528     | \-       | -100   |
+----+-----------------+-----------+-------------+----------+--------+
| 16 | Other           | 122,492   | 227,932     | \-       | -100   |
+----+-----------------+-----------+-------------+----------+--------+
| So |                 |           |             |          |        |
| ur |                 |           |             |          |        |
| ce |                 |           |             |          |        |
| of |                 |           |             |          |        |
| d  |                 |           |             |          |        |
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| a: |                 |           |             |          |        |
| Ho |                 |           |             |          |        |
| ng |                 |           |             |          |        |
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| a  |                 |           |             |          |        |
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| me |                 |           |             |          |        |
| nt |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+

+----+-----------------+------------+-----------+-----------+--------+
| *  |                 |            |           |           |        |
| *W |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ld |                 |            |           |           |        |
| T  |                 |            |           |           |        |
| ra |                 |            |           |           |        |
| de |                 |            |           |           |        |
| A  |                 |            |           |           |        |
| tl |                 |            |           |           |        |
| as |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| *  |                 |            |           |           |        |
| *P |                 |            |           |           |        |
| ro |                 |            |           |           |        |
| du |                 |            |           |           |        |
| ct |                 |            |           |           |        |
| G  |                 |            |           |           |        |
| ro |                 |            |           |           |        |
| up |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Be |                 |            |           |           |        |
| ef |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| -E |                 |            |           |           |        |
| xp |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ts |                 |            |           |           |        |
| to |                 |            |           |           |        |
| C  |                 |            |           |           |        |
| hi |                 |            |           |           |        |
| na |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Qu |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| ty |                 |            |           |           |        |
| (  |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| vi |                 |            |           |           |        |
| se |                 |            |           |           |        |
| d) |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| *  |                 |            |           |           |        |
| *J |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ua |                 |            |           |           |        |
| ry |                 |            |           |           |        |
|  - |                 |            |           |           |        |
| De |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| mb |                 |            |           |           |        |
| er |                 |            |           |           |        |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
|    |                 |            |           |           | **%    |
|    |                 |            |           |           | Ch     |
|    |                 |            |           |           | ange** |
+----+-----------------+------------+-----------+-----------+--------+
| ** | **Origin**      | **- KG -   | **- KG -  | **- KG -  | **-    |
| Ra |                 | 2002**     | 2003**    | 2004**    | 04/03  |
| nk |                 |            |           |           | -**    |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
| 0  | -The World-     | 11,073,300 | 8,654,758 | 3,515,362 | -59.38 |
+----+-----------------+------------+-----------+-----------+--------+
| 1  | Brazil          | 1,350,331  | 918,757   | 1,193,171 | 29.87  |
+----+-----------------+------------+-----------+-----------+--------+
| 2  | New Zealand     | 996,919    | 616,038   | 790,955   | 28.39  |
+----+-----------------+------------+-----------+-----------+--------+
| 3  | India           | 210,880    | 715,800   | 308,652   | -56.88 |
+----+-----------------+------------+-----------+-----------+--------+
| 4  | Ireland         | 1,249,604  | 905,249   | 270,114   | -70.16 |
+----+-----------------+------------+-----------+-----------+--------+
| 5  | United States   | 6,545,375  | 4,284,930 | 262,773   | -93.87 |
+----+-----------------+------------+-----------+-----------+--------+
| 6  | Canada          | 77,647     | 123,201   | 194,300   | 57.71  |
+----+-----------------+------------+-----------+-----------+--------+
| 7  | Argentina       | \-         | 507,536   | 159,270   | -68.62 |
+----+-----------------+------------+-----------+-----------+--------+
| 8  | Iran            | \-         | 107,713   | 103,042   | -4.34  |
+----+-----------------+------------+-----------+-----------+--------+
| 9  | Other           | 642,544    | 475,534   | 233,085   | -50.98 |
+----+-----------------+------------+-----------+-----------+--------+
| So |                 |            |           |           |        |
| ur |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| of |                 |            |           |           |        |
| d  |                 |            |           |           |        |
| at |                 |            |           |           |        |
| a: |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ce |                 |            |           |           |        |
| ns |                 |            |           |           |        |
| us |                 |            |           |           |        |
| a  |                 |            |           |           |        |
| nd |                 |            |           |           |        |
| St |                 |            |           |           |        |
| at |                 |            |           |           |        |
| is |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| cs |                 |            |           |           |        |
| De |                 |            |           |           |        |
| pa |                 |            |           |           |        |
| rt |                 |            |           |           |        |
| me |                 |            |           |           |        |
| nt |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         NO         23,849         25,074     26,679     100        100        100        6.4

  Hong Kong     NO         21,310         22,385     23,601     89.35      89.28      88.46      5.43

  Macaw         NO         2,529          2,689      2,758      10.6       10.72      10.34      2.57

  Korea North   NO         10             \-         320        0.04       0          1.2        0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year Ending:                                                                                   
  December                                                                                       

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World         NO         58,280         50,645     59,009     100        100        100        16.51

  Hong Kong     NO         49,163         44,929     47,377     84.36      88.71      80.29      5.45

  Jordan        NO         \-             \-         6,000      0          0          10.17      0

  Macaw         NO         5,335          5,169      5,278      9.15       10.21      8.94       2.11

  Korea North   NO         17             449        330        0.03       0.89       0.56       -26.5

  Myanmar       NO         674            \-         24         1.16       0          0.04       0

  Thailand      NO         \-             98         \-         0          0.19       0          -100

  Malaysia      NO         3,091          \-         \-         5.3        0          0          0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Beef and                                                                                      
  Veal,                                                                                              

  Year To Date:                                                                                      
  January - June                                                                                     

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World             T          10,755         14,180     22,741     100        100        100        60.37

  Hong Kong         T          6,738          7,914      6,320      62.65      55.81      27.79      -20.14

  Korea South       T          759            999        5,382      7.05       7.05       23.67      438.62

  Japan             T          1,736          2,444      5,113      16.14      17.24      22.48      109.17

  Jordan            T          \-             20         1,947      0          0.14       8.56       9599.95

  Kuwait            T          54             475        1,161      0.5        3.35       5.1        144.54

  Korea North       T          47             59         765        0.44       0.41       3.36       1203.72

  Indonesia         T          345            368        641        3.21       2.59       2.82       74.22

  Malaysia          T          474            623        477        4.41       4.39       2.1        -23.31

  United Arab       T          181            348        251        1.68       2.45       1.1        -27.94
  Emirates                                                                                           

  Lebanon           T          \-             30         188        0          0.21       0.82       516.32

  Russia            T          270            550        77         2.51       3.88       0.34       -85.94

  Macaw             T          27             68         66         0.25       0.48       0.29       -3.11

  Angola            T          \-             \-         65         0          0          0.28       0

  Singapore         T          55             76         58         0.51       0.54       0.26       -23.01

  Other             T          69             206        230        0.64       1.45       1.01       -30.34
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Beef and                                                                                      
  Veal,                                                                                              

  Year Ending:                                                                                       
  December                                                                                           

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World             T          26,764         25,797     37,171     100        100        100        44.09

  Hong Kong         T          14,390         14,014     15,876     53.77      54.32      42.71      13.29

  Japan             T          3,768          5,385      9,062      14.08      20.87      24.38      68.29

  Korea South       T          1,903          1,704      3,638      7.11       6.61       9.79       113.43

  Kuwait            T          509            363        1,657      1.9        1.41       4.46       355.87

  Russia            T          1,812          1,169      1,435      6.77       4.53       3.86       22.77

  Malaysia          T          1,154          1,014      1,293      4.31       3.93       3.48       27.43

  Indonesia         T          947            1,098      943        3.54       4.26       2.54       -14.12

  United Arab       T          632            509        783        2.36       1.97       2.11       53.91
  Emirates                                                                                           

  Jordan            T          \-             10         739        0          0.04       1.99       7235.52

  Korea North       T          196            105        492        0.73       0.41       1.32       367.06

  Lebanon           T          36             12         403        0.14       0.05       1.08       3311.63

  Kazakhstan        T          422            48         192        1.58       0.19       0.52       300

  Singapore         T          135            105        172        0.5        0.41       0.46       63.3

  Macaw             T          71             79         124        0.26       0.31       0.33       57.59

  Other             T          789            182        362        2.95       0.71       0.97       36.62
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

# Swine and Pork

## China's pork production during 2006 forecast to increase 4 percent to 50.9 MMT 

China is the world's largest pork producer and consumer. Post forecasts
China's end-of-year swine inventory in 2006 at 519 million head, a 3.7
percent increase from the estimated 500 million head in 2005.
Slaughtered swine in 2006 are forecast at 692 million head, a 5.9
percent increase from the estimated 653 million head in 2005. Pork
production for 2006 is forecast to increase 4 percent to 50.9 MMT from
the estimated 48.9 MMT in 2005, due to slaughter increase driven by high
prices.

China's swine production has benefited from efficiency gains due to
improved breeds and feed. This is reflected by increased imports of
breeding swine. Regarding China's feed improvements, please refer to the
poultry annual report (CH5064). The sow ratio in 2006 is forecast at 8.8
percent of the total beginning swine stock, slightly higher than 2005.
In main swine production areas like Hunan, Henan, Shandong and Hebei
provinces, the sow ratio reached 10, 11.8, 11.6 and 11.4 percent
respectively in the first quarter of 2005, far above the normal ratio of
8 percent. This will translate into a continued strong swine production
in both 2005 and 2006.

The steady growth in pork production is driven by China's population
growth and by slight average consumption increases due to continued
urbanization and wealth. Also, pork is the cheapest meat among all red
meats. It is still the first choice of many lower-income consumers for
animal protein.

Improved processing has contributed to pork production and consumption
as well. There were 2,232 meat-processing plants till the end of 2004,
each with an annual sales' value above RMB 5 million. Most of them are
pork-processing plants. Investment in slaughter and processing sector
has increased considerably. Foreign investment through joint ventures
using international health standards and HACCP management has helped
improve pork quality. Commercial sales of domestic pork inside China in
2004 reached 20.8 MMT accounting for 44 percent of the total pork
production, a 2.5 percent increase over the previous year.

Like the broiler industry, China's swine and pork production is mainly
constrained by limited feed resources, water and energy (please refer to
poultry annual report CH5064 for more details). Disease control is a
huge challenge, but China is making huge efforts to strengthen its
veterinary system---supported by significant USDA collaboration.

## Pig-born disease, Streptococcus suis

During May to August, a pig-borne bacterial disease, Streptococcus suis,
spread to 32 counties and 10 cities in Sichuan Province, killing 40
humans and sickening over 200 people. Over 600 pigs died of the disease.
Streptococcus suis is not an unusual disease in swine, though the rapid
infection of humans has surprised world health experts. Insufficient
management of swine on small-scale, family farms in Sichuan would
explain the spread of the bacterium in the swine population. The last
outbreak of Streptococcus in swine occurred in China in 1998. This
incident demonstrates the critical importance of timely, public
information and education on destroying sick animals, in addition to the
need for proper management of swine. Sichuan is the largest swine
producing province and a swine and pork exporter to Hong Kong. Hong Kong
market accounts for one-third of China's total pork export markets.
Trade was suspended for a short period, but shipments started moving
again after the disease is under control. As a result, China's pork
exports will not significantly impacted.

## Pork consumption for 2006 forecast to grow 4 percent to 50.4 MMT

China's pork consumption in 2006 is forecast at 50.4 MMT, a 4 percent
increase from the estimated 48.4 MMT in 2005. The pace of growth in
consumption for 2006 is forecast slightly higher compared with 2005 due
to the above-mentioned reasons (see production). Pork is consumed widely
in China, especially in northern and central China (such as Sichuan),
while beef and sheep and goat meat is heavily consumed in West,
Southwest and Northwest China due to religious and food cultures.
Northern consumers like fresh or frozen pork, while southern consumers
eat a lot of prepared pork, such as salted or smoked. Pork fillet is
popular for making all kinds of fried dishes at home or in restaurants.
Pork offal is popularly used for soup, hot pot or cold dishes. Pork ears
and tongues and other offal are for cold dishes. Consumers particularly
like pork feet, especially front feet, because front feet are shorter
and more meaty, and feet tendons are not destroyed by hooking on trails
like rear feet during slaughter.

## Pork prices forecast from steady to weak in the second half of 2005 

In the first half of 2005, China's average retail pork price was \$1.63,
a 7 percent increase over the same period of 2004. Average retail prices
in the first quarter increased 13.5 percent. Overall production costs
rose for feed grains, water, electricity, transportation and animal
disease control, putting upwards pressure on prices. Seasonal demand for
pork during the calendar New Year and the traditional Chinese Spring
Festival contributed to higher prices. The prices started falling during
the second quarter, and the average retail price in June almost dropped
to the same level in June 2004. Increased domestic swine slaughter
driven by high profit and increased poultry imports after China lifted
its ban on U.S. poultry, combined with decreasing feed grain prices due
to domestic grain production increase and large imports of soy bean for
soy meal in feed, pushed prices downwards. Pork prices are forecast to
remain steady to weak in the second half of 2005.

## Pork imports in 2006 forecast to decrease 28.5 percent to 50,000 MT due to domestic production increases, higher international prices and import policy changes

China's pork imports for 2006 are forecast at 50,000 MT, a 28.5 percent
decrease from the estimated 70,000 MT in 2005, and pork offal imports
for 2006 are forecast to decrease 20 percent to 145,000 MT. Pork and
pork offal imports in 2005 are estimated to decrease considerably as
well. Imports are falling, instead of rising as forecast in the previous
semi-annual report (CH5010), due to domestic production increases,
higher international prices and import policy changes.

In the first half of 2005, China's average imported pork price increased
34 percent over the same period of 2004, while the price for most
popular unboned hams and shoulders increased 48 percent from \$0.71 to
\$1.04 per kilogram. The average price for China's imported popular pork
offal from world went up 16 percent, while U.S. origin pork offal
increased 23.5 percent from \$0.81 to \$1.00 per kilogram. U.S. direct
pork shipments to China decreased 79.8 percent from 20,616 MT to 4,217
MT and indirect shipments through Hong Kong decreased 96 percent from
7,390 MT to 266 MT during the same period. U.S. direct pork offal
shipments to China decreased 41.7 percent from 64,408 MT to 37,564 MT
and indirect shipments decreased 82.9 percent from 20,343 MT to 3,482 MT
during the same period.

When HK re-export numbers are available for 2004, post revised the
import number in the PSD table for 2004 up to 155,000 MT. Boneless and
prepared pork was multiplied by 1.3 to convert from product weight to
carcass weight, and then added up carcass and bone-in pork.

## Import policy change impact China's imports and challenge U.S. exports

Effective on July 1, 2005, China no longer issues import quarantine
permit for imported meat used for processing. Exporting plants in origin
countries must be audited and registered upon their application before
July 1 in order to be eligible (except the U.S.). The already-issued
permits for processing are valid until the end of the year. Once
registered, plants in third countries will also be eligible to export
meat to China's retail market, which was not allowed in the past when
processing was permitted.

The U.S. is the only national meat safety system accepted by China. As
long as U.S. plants comply with USDA's health requirements, they are
eligible to export to China. Plants in other countries have to be
audited and registered one by one (see list below). The new regulation
permitting a plant-by-plant approval in these third countries will lead
to less gray channel trade through Hong Kong. In the past, meat from
other countries was often smuggled into China under forged USDA health
certificates or mixed with U.S. products to enter China's retail market.
The new policy will result in new competition for U.S. suppliers in
China's retail meat sector.

As of May 2005, all meat transshipments to the mainland through Hong
Kong are subject to pre-inspection in Hong Kong. The additional cost of
pre-inspection, costing \$300-500 per container, has made China's
indirect imports less competitive. This will further encourage direct
shipments to China in the future.

## List of eligible exporting countries and products to China

##  

+-------------+---------+-----------------+-------+-------------------+
| Origin      | Reg     | Approved Date   | Usage | Remarks           |
|             | istered | and Products    |       |                   |
|             | Plants  |                 |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| U.S.A.      | Whole   | 4/10/1999,      | R     | Poultry ban on    |
|             | System  | Pork, Beef &    | etail | Connecticut State |
|             |         | Poultry (Beef   |       | & the Rhode       |
|             |         | banned due to   |       | Islands (AI)      |
|             |         | BSE)            |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Canada      |         | 7/1/2005, Pork, | R     |                   |
|             |         | Beef            | etail |                   |
|             |         |                 |       |                   |
|             |         | Banned due to   |       |                   |
|             |         | BSE             |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Australia   | 35      | 2/07/2005, Beef | R     |                   |
|             |         | & Sheep /Goat   | etail |                   |
|             |         | Meat            |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| New Zealand | 26      | 3/14/2005, Beef | R     |                   |
|             |         | & Sheep/Goat    | etail |                   |
|             |         | Meat            |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Denmark     | 7       | 6/28/2005, Pork | R     |                   |
|             |         |                 | etail |                   |
+-------------+---------+-----------------+-------+-------------------+
| Italy       | 9       | 6/28/2005,      | R     |                   |
|             |         | Sausages        | etail |                   |
+-------------+---------+-----------------+-------+-------------------+
| France      | 9       | 6/28/2005       | R     | Poultry suspended |
|             |         |                 | etail | due to AI         |
|             |         | Pork and        |       |                   |
|             |         | Poultry         |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Uruguay     | 13 & 2  | 6/282005, Beef  | R     |                   |
|             | (for    | and Sheep/Goat  | etail |                   |
|             | War     | Meat            |       |                   |
|             | ehouses |                 |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Chile       | 1       | 6/28/2005,      | R     |                   |
|             |         | Poultry         | etail |                   |
+-------------+---------+-----------------+-------+-------------------+
| Brazil      | 5       | 6/30/2005       | R     |                   |
|             |         |                 | etail |                   |
|             |         | Beef & Poultry  |       |                   |
+-------------+---------+-----------------+-------+-------------------+
| Note: The   |         |                 |       |                   |
| abov        |         |                 |       |                   |
| e-mentioned |         |                 |       |                   |
| meat        |         |                 |       |                   |
| products do |         |                 |       |                   |
| not include |         |                 |       |                   |
| specific    |         |                 |       |                   |
| risk        |         |                 |       |                   |
| materials   |         |                 |       |                   |
| and         |         |                 |       |                   |
| inedible    |         |                 |       |                   |
| animal      |         |                 |       |                   |
| products    |         |                 |       |                   |
+-------------+---------+-----------------+-------+-------------------+

## China's pork exports during 2006 forecast at 584,000 MT, a 4.8 percent increase from 2005

Post forecasts China's pork exports for 2006 at 584,000 MT, a 4.8
percent increase from the estimated 557,000 MT in 2005, mainly due to
export market demand increases, especially Japan and Russia. Exports are
forecast to increase for 7 years' running from 73,000 NT in 2000 to
584,000 MT in 2006. Asian countries are China's main export markets.
Most of the export increases lies in cooked or prepared pork. Frozen
carcass or frozen carcass of sucking pigs decreased considerably due to
Russia TRQ Regime. Russia's imports of processed pork are not subject to
TRQ limit, and Russia's importers have shifted to more boneless meat
from other countries to maximize the use of their import licenses for
better profit.

## Live swine exports in 2006 are forecast to increase 5 percent to 2.2 million head

Post forecast China's live swine exports for 2006 at 2.2 million head, a
5 percent increase from the estimated 2.1 million head, due to Hong Kong
and Macao demand increases. Hong Kong and Macao account for 99 percent
of China's total live swine exports. This trend will continue into the
next couple of years, as long as China can control pig-born diseases.

# PSD---Swine

  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- --------- -------
  **Country**      **China,                                                                    
                   Peoples                                                                     
                   Republic                                                                    
                   of**                                                                        

  **Commodity**    **Animal                                    (1000                           
                   Numbers,                                    HEAD)                           
                   Swine**                                                                     

                   2004       Revised    2005       Estimate   2006       Forecast   UOM       

                   USDA       Post       USDA       Post       USDA       Post                 
                   Official   Estimate   Official   Estimate   Official   Estimate             
                   \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]              

  **Market Year               01/2004               01/2005               01/2006    MM/YYYY   
  Begin**                                                                                      

  TOTAL Beginning  466017     466017     469279     481891     472564     500324     (1000     
  Stocks                                                                             HEAD)     

  Sow Beginning    40250      40250      41750      42200      0          44220      (1000     
  Stocks                                                                             HEAD)     

  Production (Pig  624181     636742     651384     675000     0          715000     (1000     
  Crop)                                                                              HEAD)     

  Intra EC Imports 0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Total Imports    2          2          3          3          0          3          (1000     
                                                                                     HEAD)     

  TOTAL Imports    2          2          3          3          0          3          (1000     
                                                                                     HEAD)     

  TOTAL SUPPLY     1090200    1102761    1120666    1156894    472564     1215327    (1000     
                                                                                     HEAD)     

  Intra EC Exports 0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  Total Exports    1973       1973       1975       2070       0          2175       (1000     
                                                                                     HEAD)     

  TOTAL Exports    1973       1973       1975       2070       0          2175       (1000     
                                                                                     HEAD)     

  Sow Slaughter    0          0          0          0          0          0          (1000     
                                                                                     HEAD)     

  OTHER SLAUGHTER  618058     618007     645252     653400     0          692600     (1000     
                                                                                     HEAD)     

  Total Slaughter  618058     618007     645252     653400     0          692600     (1000     
                                                                                     HEAD)     

  Loss             890        890        875        1100       0          1500       (1000     
                                                                                     HEAD)     

  Ending           469279     481891     472564     500324     0          519052     (1000     
  Inventories                                                                        HEAD)     

  TOTAL            1090200    1102761    1120666    1156894    0          1215327    (1000     
  DISTRIBUTION                                                                       HEAD)     

  Calendar Yr.     0          0          1          2                     2          (1000     
  Imp. from U.S.                                                                     HEAD)     

  Calendar Yr.     0          0          0          0          0          0          (1000     
  Exp. to U.S.                                                                       HEAD)     
  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- --------- -------

#  

# 

# PSD---Pork

  ---------------- ---------- ---------- ---------- ---------- ----------- ---------- --------- -------
  **PSD Table**                                                                                 

  **Country**      **China,                                                                     
                   Peoples                                                                      
                   Republic                                                                     
                   of**                                                                         

  **Commodity**    **Meat,                                     (1000 MT                         
                   Swine**                                     CWE)(1000                        
                                                               HEAD)                            

                   2004       Revised    2005       Estimate   2006        Forecast   UOM       

                   USDA       Post       USDA       Post       USDA        Post                 
                   Official   Estimate   Official   Estimate   Official    Estimate             
                   \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]     \[New\]              

  **Market Year               01/2004               01/2005                01/2006    MM/YYYY   
  Begin**                                                                                       

  Slaughter        618058     618007     645252     653400     0           692600     (1000     
  (Reference)                                                                         HEAD)     

  Beginning Stocks 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Production       47350      47016      49675      48900      0           50900      (1000 MT  
                                                                                      CWE)      

  Intra EC Imports 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Total Imports    71         155        100        70         0           50         (1000 MT  
                                                                                      CWE)      

  TOTAL Imports    71         155        100        70         0           50         (1000 MT  
                                                                                      CWE)      

  TOTAL SUPPLY     47421      47171      49775      48970      0           50950      (1000 MT  
                                                                                      CWE)      

  Intra EC Exports 0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  Total Exports    383        533        450        557        0           584        (1000 MT  
                                                                                      CWE)      

  TOTAL Exports    383        533        450        557        0           584        (1000 MT  
                                                                                      CWE)      

  Human Dom.       47038      46638      49325      48413      0           50366      (1000 MT  
  Consumption                                                                         CWE)      

  Other Use,       0          0          0          0          0           0          (1000 MT  
  Losses                                                                              CWE)      

  TOTAL Dom.       47038      46638      49325      48413      0           50366      (1000 MT  
  Consumption                                                                         CWE)      

  Ending Stocks    0          0          0          0          0           0          (1000 MT  
                                                                                      CWE)      

  TOTAL            47421      47171      49775      48970      0           50950      (1000 MT  
  DISTRIBUTION                                                                        CWE)      

  Calendar Yr.     45         88         45         50         0           38         (1000 MT  
  Imp. from U.S.                                                                      CWE)      

  Calendar Yr.     0          0          0          0          0           0          (1000 MT  
  Exp. to U.S.                                                                        CWE)      
  ---------------- ---------- ---------- ---------- ---------- ----------- ---------- --------- -------

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         NO         18,165         57,848     35,257     100        100        100        -39.05

  Australia     NO         15,572         31,316     23,418     85.73      54.13      66.42      -25.22

  New Zealand   NO         1,560          26,532     11,839     8.59       45.87      33.58      -55.38

  United States NO         1,022          \-         \-         5.63       0          0          0

  Canada        NO         11             \-         \-         0.06       0          0          0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year Ending:                                                                                   
  December                                                                                       

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World         NO         11,432         50,007     132,446    100        100        100        164.85

  Australia     NO         9,280          41,179     69,406     81.18      82.35      52.4       68.55

  New Zealand   NO         \-             7,795      63,032     0          15.59      47.59      708.62

  Mexico        NO         \-             \-         8          0          0          0.01       0

  United States NO         256            1,022      \-         2.24       2.04       0          -100

  Canada        NO         1,896          11         \-         16.59      0.02       0          -100
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Beef and                                                                                   
  Veal,                                                                                           

  Year To Date:                                                                                   
  January - June                                                                                  

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World          T          5,296          1,655      601        100        100        100        -63.66

  Australia      T          1,281          1,063      579        24.2       64.21      96.29      -45.51

  Uruguay        T          \-             \-         11         0          0          1.9        0

  New Zealand    T          76             129        10         1.44       7.79       1.6        -92.54

  China          T          \-             1          \-         0.01       0.03       0.08       -16.67

  Japan          T          \-             \-         \-         0          0          0.06       0

  Thailand       T          5              \-         \-         0.09       0          0.05       0

  Taiwan         T          \-             \-         \-         0          0.01       0.02       -33.33

  Korea South    T          \-             \-         \-         0          0          0          1100

  Germany        T          \-             \-         \-         0          0          0          -100

  Brazil         T          417            422        \-         7.88       25.5       0          -100

  Canada         T          39             \-         \-         0.74       0          0          0

  United States  T          3,476          41         \-         65.64      2.46       0          -100
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Beef and                                                                                   
  Veal,                                                                                           

  Year Ending:                                                                                    
  December                                                                                        

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World          T          11,488         8,395      3,451      100        100        100        -58.89

  Australia      T          2,139          2,231      2,159      18.62      26.58      62.57      -3.23

  New Zealand    T          210            112        825        1.83       1.33       23.91      638.36

  Brazil         T          24             467        422        0.21       5.57       12.23      -9.71

  United States  T          8,761          5,533      41         76.26      65.91      1.2        -99.25

  Uruguay        T          \-             \-         2          0          0          0.07       0

  China          T          \-             \-         1          0          0          0.02       90.73

  Taiwan         T          2              5          \-         0.02       0.06       0.01       -96.43

  Germany        T          \-             \-         \-         0          0          0          0

  Korea South    T          \-             1          \-         0          0.01       0          -98.03

  Thailand       T          7              6          \-         0.06       0.07       0          -100

  Japan          T          \-             \-         \-         0          0          0          -100

  Singapore      T          \-             \-         \-         0          0          0          0

  South Africa   T          1              \-         \-         0.01       0          0          0

  France         T          \-             \-         \-         0          0          0          0

  Canada         T          343            39         \-         2.99       0.47       0          -100
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

+----+-----------------+-----------+-------------+----------+--------+
| *  |                 |           |             |          |        |
| *W |                 |           |             |          |        |
| or |                 |           |             |          |        |
| ld |                 |           |             |          |        |
| T  |                 |           |             |          |        |
| ra |                 |           |             |          |        |
| de |                 |           |             |          |        |
| A  |                 |           |             |          |        |
| tl |                 |           |             |          |        |
| as |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| *  |                 |           |             |          |        |
| *P |                 |           |             |          |        |
| ro |                 |           |             |          |        |
| du |                 |           |             |          |        |
| ct |                 |           |             |          |        |
| G  |                 |           |             |          |        |
| ro |                 |           |             |          |        |
| up |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| ** |                 |           |             |          |        |
| Ho |                 |           |             |          |        |
| ng |                 |           |             |          |        |
| Ko |                 |           |             |          |        |
| ng |                 |           |             |          |        |
| Be |                 |           |             |          |        |
| ef |                 |           |             |          |        |
| Re |                 |           |             |          |        |
| -E |                 |           |             |          |        |
| xp |                 |           |             |          |        |
| or |                 |           |             |          |        |
| ts |                 |           |             |          |        |
| to |                 |           |             |          |        |
| C  |                 |           |             |          |        |
| hi |                 |           |             |          |        |
| na |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| ** |                 |           |             |          |        |
| Qu |                 |           |             |          |        |
| an |                 |           |             |          |        |
| ti |                 |           |             |          |        |
| ty |                 |           |             |          |        |
| ** |                 |           |             |          |        |
|    |                 |           |             |          |        |
| *  |                 |           |             |          |        |
| *J |                 |           |             |          |        |
| an |                 |           |             |          |        |
| ua |                 |           |             |          |        |
| ry |                 |           |             |          |        |
|  - |                 |           |             |          |        |
| Ju |                 |           |             |          |        |
| ne |                 |           |             |          |        |
| ** |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
|    |                 |           |             |          | **%    |
|    |                 |           |             |          | Ch     |
|    |                 |           |             |          | ange** |
+----+-----------------+-----------+-------------+----------+--------+
| ** | **Origin**      | **- KG -  | **- KG -    | **- KG - | **-    |
| Ra |                 | 2003**    | 2004**      | 2005**   | 05/04  |
| nk |                 |           |             |          | -**    |
| ** |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 0  | -The World-     | 4,533,494 | 1,428,016   | 654,398  | -54.17 |
+----+-----------------+-----------+-------------+----------+--------+
| 1  | New Zealand     | 310,542   | 181,501     | 168,145  | -7.36  |
+----+-----------------+-----------+-------------+----------+--------+
| 2  | Australia       | 107,269   | 27,289      | 143,707  | 426.61 |
+----+-----------------+-----------+-------------+----------+--------+
| 3  | Brazil          | 302,842   | 294,885     | 125,386  | -57.48 |
+----+-----------------+-----------+-------------+----------+--------+
| 4  | Argentina       | 303,825   | 24,000      | 108,677  | 352.82 |
+----+-----------------+-----------+-------------+----------+--------+
| 5  | Canada          | 48,696    | 74,046      | 69,526   | -6.1   |
+----+-----------------+-----------+-------------+----------+--------+
| 6  | India           | 239,025   | 233,652     | 25,000   | -89.3  |
+----+-----------------+-----------+-------------+----------+--------+
| 7  | Austria         | \-        | \-          | 13,908   | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 8  | United States   | 2,606,757 | 132,370     | 49       | -99.96 |
+----+-----------------+-----------+-------------+----------+--------+
| 9  | Denmark         | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 10 | Germany, Fed    | 56,585    | 53,813      | \-       | -100   |
|    | Rep             |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 11 | Netherlands     | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 12 | France          | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 13 | Italy           | \-        | \-          | \-       | 0      |
+----+-----------------+-----------+-------------+----------+--------+
| 14 | Swis            | \-        | \-          | \-       | 0      |
|    | s/Liechtenstein |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+
| 15 | Ireland         | 435,461   | 178,528     | \-       | -100   |
+----+-----------------+-----------+-------------+----------+--------+
| 16 | Other           | 122,492   | 227,932     | \-       | -100   |
+----+-----------------+-----------+-------------+----------+--------+
| So |                 |           |             |          |        |
| ur |                 |           |             |          |        |
| ce |                 |           |             |          |        |
| of |                 |           |             |          |        |
| d  |                 |           |             |          |        |
| at |                 |           |             |          |        |
| a: |                 |           |             |          |        |
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| me |                 |           |             |          |        |
| nt |                 |           |             |          |        |
+----+-----------------+-----------+-------------+----------+--------+

+----+-----------------+------------+-----------+-----------+--------+
| *  |                 |            |           |           |        |
| *W |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ld |                 |            |           |           |        |
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| ro |                 |            |           |           |        |
| up |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Be |                 |            |           |           |        |
| ef |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| -E |                 |            |           |           |        |
| xp |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ts |                 |            |           |           |        |
| to |                 |            |           |           |        |
| C  |                 |            |           |           |        |
| hi |                 |            |           |           |        |
| na |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Qu |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| ty |                 |            |           |           |        |
| (  |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| vi |                 |            |           |           |        |
| se |                 |            |           |           |        |
| d) |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| *  |                 |            |           |           |        |
| *J |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ua |                 |            |           |           |        |
| ry |                 |            |           |           |        |
|  - |                 |            |           |           |        |
| De |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| mb |                 |            |           |           |        |
| er |                 |            |           |           |        |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
|    |                 |            |           |           | **%    |
|    |                 |            |           |           | Ch     |
|    |                 |            |           |           | ange** |
+----+-----------------+------------+-----------+-----------+--------+
| ** | **Origin**      | **- KG -   | **- KG -  | **- KG -  | **-    |
| Ra |                 | 2002**     | 2003**    | 2004**    | 04/03  |
| nk |                 |            |           |           | -**    |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
| 0  | -The World-     | 11,073,300 | 8,654,758 | 3,515,362 | -59.38 |
+----+-----------------+------------+-----------+-----------+--------+
| 1  | Brazil          | 1,350,331  | 918,757   | 1,193,171 | 29.87  |
+----+-----------------+------------+-----------+-----------+--------+
| 2  | New Zealand     | 996,919    | 616,038   | 790,955   | 28.39  |
+----+-----------------+------------+-----------+-----------+--------+
| 3  | India           | 210,880    | 715,800   | 308,652   | -56.88 |
+----+-----------------+------------+-----------+-----------+--------+
| 4  | Ireland         | 1,249,604  | 905,249   | 270,114   | -70.16 |
+----+-----------------+------------+-----------+-----------+--------+
| 5  | United States   | 6,545,375  | 4,284,930 | 262,773   | -93.87 |
+----+-----------------+------------+-----------+-----------+--------+
| 6  | Canada          | 77,647     | 123,201   | 194,300   | 57.71  |
+----+-----------------+------------+-----------+-----------+--------+
| 7  | Argentina       | \-         | 507,536   | 159,270   | -68.62 |
+----+-----------------+------------+-----------+-----------+--------+
| 8  | Iran            | \-         | 107,713   | 103,042   | -4.34  |
+----+-----------------+------------+-----------+-----------+--------+
| 9  | Other           | 642,544    | 475,534   | 233,085   | -50.98 |
+----+-----------------+------------+-----------+-----------+--------+
| So |                 |            |           |           |        |
| ur |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| of |                 |            |           |           |        |
| d  |                 |            |           |           |        |
| at |                 |            |           |           |        |
| a: |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ce |                 |            |           |           |        |
| ns |                 |            |           |           |        |
| us |                 |            |           |           |        |
| a  |                 |            |           |           |        |
| nd |                 |            |           |           |        |
| St |                 |            |           |           |        |
| at |                 |            |           |           |        |
| is |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| cs |                 |            |           |           |        |
| De |                 |            |           |           |        |
| pa |                 |            |           |           |        |
| rt |                 |            |           |           |        |
| me |                 |            |           |           |        |
| nt |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         NO         23,849         25,074     26,679     100        100        100        6.4

  Hong Kong     NO         21,310         22,385     23,601     89.35      89.28      88.46      5.43

  Macaw         NO         2,529          2,689      2,758      10.6       10.72      10.34      2.57

  Korea North   NO         10             \-         320        0.04       0          1.2        0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                   
  Statistics                                                                                     

  UDG: Live                                                                                      
  Cattle, HS                                                                                     
  0102                                                                                           

  Year Ending:                                                                                   
  December                                                                                       

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World         NO         58,280         50,645     59,009     100        100        100        16.51

  Hong Kong     NO         49,163         44,929     47,377     84.36      88.71      80.29      5.45

  Jordan        NO         \-             \-         6,000      0          0          10.17      0

  Macaw         NO         5,335          5,169      5,278      9.15       10.21      8.94       2.11

  Korea North   NO         17             449        330        0.03       0.89       0.56       -26.5

  Myanmar       NO         674            \-         24         1.16       0          0.04       0

  Thailand      NO         \-             98         \-         0          0.19       0          -100

  Malaysia      NO         3,091          \-         \-         5.3        0          0          0
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Beef and                                                                                      
  Veal,                                                                                              

  Year To Date:                                                                                      
  January - June                                                                                     

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World             T          10,755         14,180     22,741     100        100        100        60.37

  Hong Kong         T          6,738          7,914      6,320      62.65      55.81      27.79      -20.14

  Korea South       T          759            999        5,382      7.05       7.05       23.67      438.62

  Japan             T          1,736          2,444      5,113      16.14      17.24      22.48      109.17

  Jordan            T          \-             20         1,947      0          0.14       8.56       9599.95

  Kuwait            T          54             475        1,161      0.5        3.35       5.1        144.54

  Korea North       T          47             59         765        0.44       0.41       3.36       1203.72

  Indonesia         T          345            368        641        3.21       2.59       2.82       74.22

  Malaysia          T          474            623        477        4.41       4.39       2.1        -23.31

  United Arab       T          181            348        251        1.68       2.45       1.1        -27.94
  Emirates                                                                                           

  Lebanon           T          \-             30         188        0          0.21       0.82       516.32

  Russia            T          270            550        77         2.51       3.88       0.34       -85.94

  Macaw             T          27             68         66         0.25       0.48       0.29       -3.11

  Angola            T          \-             \-         65         0          0          0.28       0

  Singapore         T          55             76         58         0.51       0.54       0.26       -23.01

  Other             T          69             206        230        0.64       1.45       1.01       -30.34
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Beef and                                                                                      
  Veal,                                                                                              

  Year Ending:                                                                                       
  December                                                                                           

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World             T          26,764         25,797     37,171     100        100        100        44.09

  Hong Kong         T          14,390         14,014     15,876     53.77      54.32      42.71      13.29

  Japan             T          3,768          5,385      9,062      14.08      20.87      24.38      68.29

  Korea South       T          1,903          1,704      3,638      7.11       6.61       9.79       113.43

  Kuwait            T          509            363        1,657      1.9        1.41       4.46       355.87

  Russia            T          1,812          1,169      1,435      6.77       4.53       3.86       22.77

  Malaysia          T          1,154          1,014      1,293      4.31       3.93       3.48       27.43

  Indonesia         T          947            1,098      943        3.54       4.26       2.54       -14.12

  United Arab       T          632            509        783        2.36       1.97       2.11       53.91
  Emirates                                                                                           

  Jordan            T          \-             10         739        0          0.04       1.99       7235.52

  Korea North       T          196            105        492        0.73       0.41       1.32       367.06

  Lebanon           T          36             12         403        0.14       0.05       1.08       3311.63

  Kazakhstan        T          422            48         192        1.58       0.19       0.52       300

  Singapore         T          135            105        172        0.5        0.41       0.46       63.3

  Macaw             T          71             79         124        0.26       0.31       0.33       57.59

  Other             T          789            182        362        2.95       0.71       0.97       36.62
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Swine,                                                                                     

  Year To Date:                                                                                   
  January - June                                                                                  

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World          NO         772            870        1,303      100        100        100        49.77

  United States  NO         \-             390        741        0          44.83      56.87      90

  Canada         NO         500            480        562        64.77      55.17      43.13      17.08

  Denmark        NO         272            \-         \-         35.23      0          0          0
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                    
  Statistics                                                                                      

  UDG: Swine,                                                                                     

  Year Ending:                                                                                    
  December                                                                                        

  **Partner      **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                      Share**                          

                            **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World          NO         1,163          1,797      1,898      100        100        100        5.62

  United States  NO         231            442        840        19.86      24.6       44.26      90.05

  Denmark        NO         644            272        578        55.37      15.14      30.45      112.5

  Canada         NO         \-             1,083      480        0          60.27      25.29      -55.68

  France         NO         288            \-         \-         24.76      0          0          0
  -------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Pork,                                                                                     

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         T          50,625         43,964     17,728     100        100        100        -59.68

  Canada        T          13,635         10,607     11,049     26.93      24.13      62.33      4.17

  United States T          24,449         20,616     4,217      48.29      46.89      23.79      -79.55

  Denmark       T          12,510         12,702     2,298      24.71      28.89      12.96      -81.91

  Other         T          31             39         164        0.06       0.09       0.93       942.84
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Import                                                                                   
  Statistics                                                                                     

  UDG: Pork,                                                                                     

  Year Ending:                                                                                   
  December                                                                                       

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World         T          144,967        149,117    70,683     100        100        100        -52.6

  United States T          108,220        77,642     29,585     74.65      52.07      41.86      -61.9

  Canada        T          35,002         33,897     23,968     24.14      22.73      33.91      -29.29

  Denmark       T          1,471          37,505     17,000     1.01       25.15      24.05      -54.67

  Other         T          274            73         130        0.19       0.05       0.18       260
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

+----+-----------------+------------+------------+----------+--------+
| *  |                 |            |            |          |        |
| *W |                 |            |            |          |        |
| or |                 |            |            |          |        |
| ld |                 |            |            |          |        |
| T  |                 |            |            |          |        |
| ra |                 |            |            |          |        |
| de |                 |            |            |          |        |
| A  |                 |            |            |          |        |
| tl |                 |            |            |          |        |
| as |                 |            |            |          |        |
| ** |                 |            |            |          |        |
|    |                 |            |            |          |        |
| *  |                 |            |            |          |        |
| *P |                 |            |            |          |        |
| ro |                 |            |            |          |        |
| du |                 |            |            |          |        |
| ct |                 |            |            |          |        |
| G  |                 |            |            |          |        |
| ro |                 |            |            |          |        |
| up |                 |            |            |          |        |
| ** |                 |            |            |          |        |
|    |                 |            |            |          |        |
| ** |                 |            |            |          |        |
| Ho |                 |            |            |          |        |
| ng |                 |            |            |          |        |
| Ko |                 |            |            |          |        |
| ng |                 |            |            |          |        |
| Po |                 |            |            |          |        |
| rk |                 |            |            |          |        |
| Re |                 |            |            |          |        |
| -E |                 |            |            |          |        |
| xp |                 |            |            |          |        |
| or |                 |            |            |          |        |
| ts |                 |            |            |          |        |
| to |                 |            |            |          |        |
| C  |                 |            |            |          |        |
| hi |                 |            |            |          |        |
| na |                 |            |            |          |        |
| ** |                 |            |            |          |        |
|    |                 |            |            |          |        |
| ** |                 |            |            |          |        |
| Qu |                 |            |            |          |        |
| an |                 |            |            |          |        |
| ti |                 |            |            |          |        |
| ty |                 |            |            |          |        |
| ** |                 |            |            |          |        |
|    |                 |            |            |          |        |
| *  |                 |            |            |          |        |
| *J |                 |            |            |          |        |
| an |                 |            |            |          |        |
| ua |                 |            |            |          |        |
| ry |                 |            |            |          |        |
|  - |                 |            |            |          |        |
| Ju |                 |            |            |          |        |
| ne |                 |            |            |          |        |
| ** |                 |            |            |          |        |
+----+-----------------+------------+------------+----------+--------+
|    |                 |            |            |          | **%    |
|    |                 |            |            |          | Ch     |
|    |                 |            |            |          | ange** |
+----+-----------------+------------+------------+----------+--------+
| ** | **Origin**      | **- KG -   | **- KG -   | **- KG - | **-    |
| Ra |                 | 2003**     | 2004**     | 2005**   | 05/04  |
| nk |                 |            |            |          | -**    |
| ** |                 |            |            |          |        |
+----+-----------------+------------+------------+----------+--------+
| 0  | -The World-     | 20,604,786 | 34,852,992 | 3        | -91.34 |
|    |                 |            |            | ,018,404 |        |
+----+-----------------+------------+------------+----------+--------+
| 1  | Canada          | 4,097,614  | 6,060,614  | 799,341  | -86.81 |
+----+-----------------+------------+------------+----------+--------+
| 2  | Denmark         | 1,884,013  | 6,087,675  | 572,225  | -90.6  |
+----+-----------------+------------+------------+----------+--------+
| 3  | Germany, Fed    | 7,930,793  | 4,361,232  | 449,046  | -89.7  |
|    | Rep             |            |            |          |        |
+----+-----------------+------------+------------+----------+--------+
| 4  | Spain           | 1,570,350  | 1,853,659  | 295,253  | -84.07 |
+----+-----------------+------------+------------+----------+--------+
| 5  | United States   | 931,710    | 7,390,150  | 265,721  | -96.4  |
+----+-----------------+------------+------------+----------+--------+
| 6  | Brazil          | 1,715,265  | 2,109,290  | 192,722  | -90.86 |
+----+-----------------+------------+------------+----------+--------+
| 7  | Netherlands     | 551,123    | 2,654,790  | 160,538  | -93.95 |
+----+-----------------+------------+------------+----------+--------+
| 8  | France          | 480,168    | 1,341,701  | 119,320  | -91.11 |
+----+-----------------+------------+------------+----------+--------+
| 9  | Ireland         | 120,749    | 383,228    | 49,942   | -86.97 |
+----+-----------------+------------+------------+----------+--------+
| 10 | Other           | 1,323,001  | 2,610,653  | 114,296  | -95.62 |
+----+-----------------+------------+------------+----------+--------+
| So |                 |            |            |          |        |
| ur |                 |            |            |          |        |
| ce |                 |            |            |          |        |
| of |                 |            |            |          |        |
| d  |                 |            |            |          |        |
| at |                 |            |            |          |        |
| a: |                 |            |            |          |        |
| Ho |                 |            |            |          |        |
| ng |                 |            |            |          |        |
| Ko |                 |            |            |          |        |
| ng |                 |            |            |          |        |
| Ce |                 |            |            |          |        |
| ns |                 |            |            |          |        |
| us |                 |            |            |          |        |
| a  |                 |            |            |          |        |
| nd |                 |            |            |          |        |
| St |                 |            |            |          |        |
| at |                 |            |            |          |        |
| is |                 |            |            |          |        |
| ti |                 |            |            |          |        |
| cs |                 |            |            |          |        |
| De |                 |            |            |          |        |
| pa |                 |            |            |          |        |
| rt |                 |            |            |          |        |
| me |                 |            |            |          |        |
| nt |                 |            |            |          |        |
+----+-----------------+------------+------------+----------+--------+

+----+-----------------+------------+-----------+-----------+--------+
| *  |                 |            |           |           |        |
| *W |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ld |                 |            |           |           |        |
| T  |                 |            |           |           |        |
| ra |                 |            |           |           |        |
| de |                 |            |           |           |        |
| A  |                 |            |           |           |        |
| tl |                 |            |           |           |        |
| as |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| *  |                 |            |           |           |        |
| *P |                 |            |           |           |        |
| ro |                 |            |           |           |        |
| du |                 |            |           |           |        |
| ct |                 |            |           |           |        |
| G  |                 |            |           |           |        |
| ro |                 |            |           |           |        |
| up |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Po |                 |            |           |           |        |
| rk |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| -E |                 |            |           |           |        |
| xp |                 |            |           |           |        |
| or |                 |            |           |           |        |
| ts |                 |            |           |           |        |
| to |                 |            |           |           |        |
| C  |                 |            |           |           |        |
| hi |                 |            |           |           |        |
| na |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| ** |                 |            |           |           |        |
| Qu |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| ty |                 |            |           |           |        |
| (  |                 |            |           |           |        |
| Re |                 |            |           |           |        |
| vi |                 |            |           |           |        |
| se |                 |            |           |           |        |
| d) |                 |            |           |           |        |
| ** |                 |            |           |           |        |
|    |                 |            |           |           |        |
| *  |                 |            |           |           |        |
| *J |                 |            |           |           |        |
| an |                 |            |           |           |        |
| ua |                 |            |           |           |        |
| ry |                 |            |           |           |        |
|  - |                 |            |           |           |        |
| De |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| mb |                 |            |           |           |        |
| er |                 |            |           |           |        |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
|    |                 |            |           |           | **%    |
|    |                 |            |           |           | Ch     |
|    |                 |            |           |           | ange** |
+----+-----------------+------------+-----------+-----------+--------+
| ** | **Origin**      | **- KG -   | **- KG -  | **- KG -  | **-    |
| Ra |                 | 2002**     | 2003**    | 2004**    | 04/03  |
| nk |                 |            |           |           | -**    |
| ** |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+
| 0  | -The World-     | 34,587,292 | 5         | 5         | -2.44  |
|    |                 |            | 4,356,097 | 3,029,426 |        |
+----+-----------------+------------+-----------+-----------+--------+
| 1  | Denmark         | 3,161,838  | 8,917,643 | 1         | 23.14  |
|    |                 |            |           | 0,981,256 |        |
+----+-----------------+------------+-----------+-----------+--------+
| 2  | Canada          | 6,340,206  | 8,701,804 | 9,797,982 | 12.6   |
+----+-----------------+------------+-----------+-----------+--------+
| 3  | Germany, Fed    | 11,431,307 | 1         | 8,020,180 | -48.29 |
|    | Rep             |            | 5,510,196 |           |        |
+----+-----------------+------------+-----------+-----------+--------+
| 4  | Netherlands     | 1,657,761  | 3,035,825 | 5,276,071 | 73.79  |
+----+-----------------+------------+-----------+-----------+--------+
| 5  | Spain           | 964,794    | 4,262,814 | 4,260,908 | -0.04  |
+----+-----------------+------------+-----------+-----------+--------+
| 6  | Brazil          | 3,067,793  | 3,608,435 | 3,396,156 | -5.88  |
+----+-----------------+------------+-----------+-----------+--------+
| 7  | United States   | 2,372,977  | 3,012,330 | 2,856,381 | -5.18  |
+----+-----------------+------------+-----------+-----------+--------+
| 8  | France          | 1,712,079  | 2,078,837 | 2,622,861 | 26.17  |
+----+-----------------+------------+-----------+-----------+--------+
| 9  | Other           | 3,878,537  | 5,228,213 | 5,817,631 | 11.27  |
+----+-----------------+------------+-----------+-----------+--------+
| So |                 |            |           |           |        |
| ur |                 |            |           |           |        |
| ce |                 |            |           |           |        |
| of |                 |            |           |           |        |
| d  |                 |            |           |           |        |
| at |                 |            |           |           |        |
| a: |                 |            |           |           |        |
| Ho |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ko |                 |            |           |           |        |
| ng |                 |            |           |           |        |
| Ce |                 |            |           |           |        |
| ns |                 |            |           |           |        |
| us |                 |            |           |           |        |
| a  |                 |            |           |           |        |
| nd |                 |            |           |           |        |
| St |                 |            |           |           |        |
| at |                 |            |           |           |        |
| is |                 |            |           |           |        |
| ti |                 |            |           |           |        |
| cs |                 |            |           |           |        |
| De |                 |            |           |           |        |
| pa |                 |            |           |           |        |
| rt |                 |            |           |           |        |
| me |                 |            |           |           |        |
| nt |                 |            |           |           |        |
+----+-----------------+------------+-----------+-----------+--------+

  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                   
  Statistics                                                                                     

  UDG: Swine,                                                                                    

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

  **Partner     **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                     Share**                          

                           **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World         NO         921,550        940,612    872,650    100        100        100        -7.23

  Hong Kong     NO         861,766        879,056    815,028    93.51      93.46      93.4       -7.28

  Macau         NO         59,457         61,451     57,522     6.45       6.53       6.59       -6.39

  Laos          NO         \-             \-         100        0          0          0.01       0

  Myanmar       NO         327            50         \-         0.04       0.01       0          -100

  Korea North   NO         \-             55         \-         0          0.01       0          -100
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ------------ ---------- -------------- ----------- ----------- ---------- ---------- ---------- ---------------
  China Export                                                                                    
  Statistics                                                                                      

  UDG: Swine,                                                                                     

  Year Ending:                                                                                    
  December                                                                                        

  **Partner    **Unit**   **Quantity**                           **%                              **% Change**
  Country**                                                      Share**                          

                          **2002**       **2003**    **2004**    **2002**   **2003**   **2004**   **2004/2003**

  World        NO         1,888,606      1,887,295   1,972,911   100        100        100        4.54

  Hong Kong    NO         1,766,326      1,764,935   1,853,771   93.53      93.52      93.96      5.03

  Macau        NO         120,489        121,600     118,899     6.38       6.44       6.03       -2.22

  Myanmar      NO         833            681         106         0.04       0.04       0.01       -84.43

  Korea North  NO         958            55          75          0.05       0          0          36.36

  Mongolia     NO         \-             4           60          0          0          0          1400

  Kyrgyzstan   NO         \-             20          \-          0          0          0          -100
  ------------ ---------- -------------- ----------- ----------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Pork,                                                                                         

  Year To Date:                                                                                      
  January - June                                                                                     

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2003**       **2004**   **2005**   **2003**   **2004**   **2005**   **2005/2004**

  World             T          127,979        178,727    193,065    100        100        100        8.02

  Hong Kong         T          48,069         61,088     54,186     37.56      34.18      28.07      -11.3

  Korea North       T          10,494         39,512     37,189     8.2        22.11      19.26      -5.88

  Russia            T          38,191         25,576     30,229     29.84      14.31      15.66      18.19

  Japan             T          9,082          19,945     27,983     7.1        11.16      14.49      40.3

  Singapore         T          6,721          10,054     9,256      5.25       5.63       4.79       -7.94

  Malaysia          T          6,012          6,632      6,561      4.7        3.71       3.4        -1.08

  Philippines       T          2,589          4,113      4,065      2.02       2.3        2.11       -1.16

  Ukraine           T          25             \-         4,062      0.02       0          2.1        0

  Albania           T          408            1,078      3,491      0.32       0.6        1.81       223.8

  Moldova           T          175            2,875      3,431      0.14       1.61       1.78       19.35

  Macau             T          1,807          2,166      2,488      1.41       1.21       1.29       14.85

  Korea South       T          751            1,214      2,154      0.59       0.68       1.12       77.36

  Kazakhstan        T          \-             100        1,326      0          0.06       0.69       1226

  Indonesia         T          1,057          1,399      1,286      0.83       0.78       0.67       -8.06

  United Arab       T          169            232        960        0.13       0.13       0.5        313.37
  Emirates                                                                                           

  Other             T          2,429          2,743      4,398      1.9        1.53       2.28       48.43
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------
  China Export                                                                                       
  Statistics                                                                                         

  UDG: Pork,                                                                                         

  Year Ending:                                                                                       
  December                                                                                           

  **Partner         **Unit**   **Quantity**                         **%                              **% Change**
  Country**                                                         Share**                          

                               **2002**       **2003**   **2004**   **2002**   **2003**   **2004**   **2004/2003**

  World             T          236,213        305,137    413,321    100        100        100        35.45

  Hong Kong         T          85,748         105,010    116,810    36.3       34.41      28.26      11.24

  Korea North       T          9,012          46,883     87,031     3.82       15.36      21.06      85.63

  Russia            T          75,588         70,959     70,526     32         23.25      17.06      -0.61

  Japan             T          14,197         25,593     53,139     6.01       8.39       12.86      107.63

  Singapore         T          16,345         16,489     21,319     6.92       5.4        5.16       29.29

  Malaysia          T          10,983         14,225     14,656     4.65       4.66       3.55       3.03

  Moldova           T          \-             2,451      11,048     0          0.8        2.67       350.85

  Philippines       T          10,983         7,003      8,197      4.65       2.3        1.98       17.05

  Ukraine           T          25             25         7,992      0.01       0.01       1.93       ∞

  Macau             T          3,257          4,157      4,403      1.38       1.36       1.07       5.91

  Albania           T          1,832          2,266      3,571      0.78       0.74       0.86       57.58

  Indonesia         T          1,950          2,027      2,877      0.83       0.66       0.7        41.91

  Korea South       T          372            1,246      1,887      0.16       0.41       0.46       51.42

  Uzbekistan        T          \-             \-         1,773      0          0          0.43       0

  United Arab       T          421            379        1,120      0.18       0.12       0.27       195.57
  Emirates                                                                                           

  Other             T          5,500          6,424      6,972      2.33       2.11       1.69       -19.91
  ----------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)