Required Report - Public distribution

**Date:** 3/9/2009

**GAIN Report Number:** CH9017

CH9017

**China, Peoples Republic of**

**Livestock and Products**

**Semi-Annual Report**

**2009**

**Approved by:**

![](media/image1.wmf)William Westman

AGBEIJING

**Prepared by:**

Michael Woolsey, Jianping Zhang

**Report Highlights:**

FAS Beijing forecasts China's pork production will continue rising in
2009 to 48.8 million metric tons. Higher pork production and lower
prices will reduce 2009 pork imports by nearly half to 300,000 metric
tons. China's 2009 beef production is expected to decline two percent to
six MMT, as low beef producer returns dampen growth. Post forecasts
China\'s breeding cow imports will rise seven percent to 16,000 head,
fueled by genetic improvement efforts in the dairy sector. China\'s live
swine imports are expected to fall 25 percent from sharply higher levels
in 2008 to under 9,000 head.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Cattle and Beef 3](#cattle-and-beef)

[Beef Production to Decrease 3](#beef-production-to-decrease)

[Decreasing Consumption 4](#decreasing-beef-consumption)

[Increasing Breeding Cattle and Genetic Material Imports
4](#increasing-breeding-cattle-and-genetic-material-imports)

[Beef Imports to Decline
4](#beef-imports-to-decline-while-live-cattle-imports-to-increase)

[Decreasing Live Cattle and Beef Exports
5](#decreasing-live-cattle-and-beef-exports)

[Swine and Pork 5](#__RefHeading___Toc224033280)

[Pork Industry Recovering from PRRS Impact
5](#pork-production-recovering-from-prrs-impact)

[New National Swine Price Alert System and Subsidy Program
6](#new-national-swine-price-alert-system-and-subsidy-program)

[Pork Consumption to Rise Five Percent
7](#pork-consumption-to-rise-five-percent)

[Decreasing Breeding Swine and Pork Imports
7](#decreasing-breeding-swine-and-pork-imports)

[Increasing Live Swine and Pork Exports
8](#increasing-live-swine-exports)

[Statistics Tables 9](#statistics-tables)

[Cattle PS&D Table 9](#cattle-psd-table)

[Beef and Veal PS&D Table 10](#beef-and-veal-psd-table)

[Cattle and Beef Trade Matrices 11](#cattle-and-beef-trade-matrices)

[Swine PS&D Table 14](#swine-psd-table)

[Pork PS&D Table 15](#pork-psd-table)

[Swine and Pork Trade Matrices 16](#swine-and-pork-trade-matrices)

[Pork, Swine and Piglet Prices 19](#pork-swine-and-piglet-prices)

#   {#section .unnumbered}

# Executive Summary

FAS Beijing (Post) forecasts continued steady growth in China's total
meat production in 2009, rising four percent to 75.4 million metric tons
(MMT). Pork production is expected to approach 50 million metric tons,
as producers continue to recover from a devastating outbreak of blue ear
disease in 2007. Rising domestic pork shipments have been fueled by
direct government subsidies to quickly stimulate production and reduce
consumer pork prices.

Post forecasts China's beef production in 2009 will decline two percent
to 6 MMT, as low beef producer returns dampen beef cow production. China
maintains a ban on U.S. bovine products, including beef and live cattle
due to BSE-related restrictions. Post expects China's 2009 breeding
cattle imports to increase by seven percent to 16,000 head as a result
of China's stepped up efforts to improve dairy genetics. Post forecasts
2009 Chinese direct imports of beef will decrease by 10 percent to 9,000
MT, primarily due to slow sales of high-end products. Significantly
higher quantities of imported beef will continue to move through gray
channels. Post believes China's live cattle and beef exports in 2009 to
decline by nine and 12 percent to 30,000 head and 52,000 tons
respectively due to an impact of world-wide financial crisis.

Post forecasts China's pork production in 2009 will rise by four percent
to 48.7 MMT (CWE). Lower pork prices will fuel higher consumer pork
demand compared to 2008 levels. China's breeding swine imports are
expected to decline 25 percent from last year's record imports to 9,000
head as lower prices hinder growth in piglet and fattening swine
placement. Post forecasts China's 2009 live swine exports to rise three
percent to 1.7 million head. Post forecasts China's 2009 pork exports to
decrease by six percent to 210,000 tons due to weak demand from export
markets impacted by the world financial crisis.

In January 2009, seven Chinese government agencies announced a swine
price alert system and subsidy program designed to ensure pork producers
earn sufficient returns as prices fall and/or input costs rise. This is
the first time government agencies have joined forces to monitor pork
producer returns and ensure farm-level incentives are maintained,
underscoring the importance the government is placing on providing
stable and sufficient pork supplies.

# Cattle and Beef

## Beef Production to Decrease

Post forecasts China's beef production in 2009 to slide two percent to 6
MMT, carcass weight equivalence (CWE) from estimated 6.3 MMT (CWE) in
2008.

FAS Beijing (Post) revised China's 2009 beef cow beginning stocks
downward two percent to 48.5 million, continuing a two percent decline
in the previous year. The sluggish production is a result of farmers'
reluctance to raise beef cows because of shrinking profit. According to
the Chinese meat industry, producers have been discouraged by rising
input costs and uncertain returns due to the long time frame from birth
to slaughter. In 2007, fattened beef cattle could generate over RMB1,500
(\$219). In 2008, production costs increased considerably, with prices
for fattened cattle approaching RMB6,615 (\$965.7). Subtracting the
estimated costs of buying cattle for fattening at RMB4000 (\$538.9), and
total feeding costs at RMB2,340 (\$341.6), including feed, labor, water,
and electricity, a beef cow could only generate RMB274 (\$40). As a
result of low returns, beef inventory has been decreasing over the year.
Post believes that profits can only be found among cattle collectors and
slaughter/processing plants. Given that beef production does not enjoy
government subsidies like dairy cows, the low returns have pushed many
of the backyard and small --scale operators, which account for most
shipments, into hog production and other farm work. Post believes that
some cattle slaughter and processing plants operate far below production
capability due to insufficient cattle supplies. This will most likely
keep beef prices high through 2009.

## Decreasing Beef Consumption 

Post forecasts China's 2009 beef consumption will continue to decline,
falling to 5.9 MMT (CWE), mainly due to high prices compared to other
meats. Since 2006, beef price increases nearly doubled, well more than
the price increases for alternative meats (pork and chicken).
![](media/image2.wmf){width="5.416666666666667in"
height="2.0618055555555554in"} In December 2008, average retail beef
prices were over \$33.25 per kilogram, compared to \$20.34 for pork and
\$13.87 for broiler meat. This is up from \$18.61, \$14.40, and \$11.64
for beef, pork, and chicken, respectively, in December 2006.

Post believes declining tourism in China, (foreign tourist arrivals are
down by as much as 20 percent) due to the world financial crisis will
dampen consumption of high-priced loin cuts and other high-end products.
However, sales of lower-priced variety meats (offals) should fare
comparatively better due to a long history of beef offal consumption in
China and high prices encouraging a shift toward cheaper beef products.

## Increasing Breeding Cattle and Genetic Material Imports 

Post forecast of China's live cattle imports is now estimated to rise 7
percent to 16,000 head due to an urgent need for improved genetics in
the dairy herd, as China rebuilds the dairy industry following the
nationwide melamine crisis in 2008. Producers seem less price-sensitive,
with a greater focus on the quality of dairy genetic stocks and
materials. In 2008, China's dairy cow imports grew despite an increase
in average import prices of 15 percent. The government's subsidy of
RMB500 (\$73) per cow for MOA (Ministry of Agriculture) certified
high-quality dairy heifers beginning in 2008 will encourage imports of
both high quality breeding cows and frozen bovine semen. This will
benefit U.S. frozen bovine semen exports to China since the United
States is China's largest supplier, followed by Canada. Quality is vital
for this market.

## Beef Imports to Decline, While Live Cattle Imports to Increase

Post forecasts China's direct beef imports in 2009 will decline 10
percent to 9,000 tons. Reduced beef demand in high-end hotels and other
restaurants, caused by a reduction in foreign tourists, will account for
most of the decline. However, according to traders, significantly larger
volumes of beef imports are entering China through gray channels,
primarily through Vietnam. 2008 U.S. beef exports to Vietnam rose from
1,959 tons in 2006 to 39,654 tons in 2008, and traders report the great
majority of these shipments were trans-shipped to China, encouraged by
high Chinese beef prices. Maintaining product quality is a significant
challenge in this channel due to uncertain cold chain capabilities.
Whether China lifts its official ban on U.S. beef due to BSE is a key
factor in future beef import levels, as this will likely result in
significantly higher overall shipments of U.S. beef.

Australia is the predominant supplier of China's direct beef imports
(over 60 percent of total imports) and this is expected to continue. In
2009, sales of re-exported beef from Hong Kong may pick up, encouraged
by an increase in tariffs to their original level, effective January 1,
2009 (from six to 12 percent).

## Decreasing Live Cattle and Beef Exports

Post forecasts China's live cattle exports in 2009 to decrease 12
percent to 30,000, while beef exports are expected to decline to 52,000
tons, primarily due to reduced demand as a result of the world financial
crisis. Given expected reduced domestic beef supplies in 2009, export
prices will remain relatively high, reducing competitiveness of Chinese
beef products. China's historical price advantage compared to imported
beef has nearly evaporated, down to \$10 per ton on average in 2008.
[]{#__RefHeading___Toc224033280 .anchor}

**Swine and Pork**

## Pork Production Recovering from PRRS Impact

Post forecasts China's pork production in 2009 will increase nearly four
percent to 48.7 MMT (CWE), after rising 8 percent in 2008. China's
efforts to increase production following the sharp losses due to swine
blue ear disease (PRRS) in 2007 have been largely successful, boosted by
direct subsidies to rebuild the sow herd and other supports. Reportedly,
farmers received subsidies of at least 148 yuan/head for more than 8
million sows. Meanwhile, strong piglet demand led to a sharp rise in
breeding swine imports in 2008. As a result, pig crop production in 2008
rose 7 percent to 636 million head.

In 2009, the combined effects of continued government subsidies for sow
production, declining feed prices due to a grain record harvest in 2008
which resulted in an expected ten percent increase in swine feed
production at 44 MMT in 2008, and a new government market intervention
program to ensure sufficient returns, have resulted in higher farmer
incentives for new placements of sows and fattening swine. Sow
population accounts for nearly 11 percent of China's total swine
inventory, which will translate into continued strong production in
2009.

China's pork production is also stabilized by improved disease control
measures since the 2007 PRRS outbreak. One improvement is timely
compensation for culling infected pigs. Disease monitoring and control
is also more extensive. Reportedly, an outbreak of PRRS in Shanxi
Province in January 2009 that affected more than 1,000 pigs was swiftly
controlled through rapid culling and preventing movement of pigs from
the infected area.

An emerging disease control challenge in 2009 is an increase in the
backyard pig herd driven by the return of newly unemployed migrant
workers, which totaled nearly 20 million in late 2008. Insufficient
disease control among these inexperienced operators increases the risk
of new PRRS outbreaks, which mainly occur in small-scale backyard
operations. Overall, about half of China's pork production comes from
farms with an annual slaughter below 50 head.

China's swine and pork production depends on sufficient supplies of
soybean meal and other proteins from abroad. Overall grain and meal
account for nearly 60-70 percent of total swine feed costs. China
imports over 30 MMT of soybean and over 1 MMT of fishmeal a year.
International prices for these feeds are a significant factor in Chinese
swine industry returns.

## New National Swine Price Alert System and Subsidy Program

On January 9, 2009 the government introduced a new market intervention
scheme called the "National Swine Price Alert System to Prevent Extreme
Price Falls (temporary implementation)". For the first time ever,
several Chinese government agencies have joined forces to launch a price
monitoring scheme to ensure sufficient farmer returns. As the most
important meat for Chinese consumers, maintaining stable pork supplies
and prices through self-sufficiency is a key objective of the program.

*Background:* China's swine and piglet prices experienced significant
fluctuation in 2008 due to a sharp fall in production after PRRS
outbreaks in 2007. Average hog and piglet prices in the first four
months in 2008 jumped 82 and 166 percent respectively over the same
period in the previous year. Swine and piglet prices in April, the peak
month, rose by 89 and 187 percent respectively from the same month of
the previous year. A doubling in retail pork prices in late 2007 and
early 2008 stretched family budgets and helped fuel inflation, an
intolerable situation for the Chinese leadership. Through purchases of a
large quantity of imports and introduction of new production incentives,
prices began falling in May and continued dropping through the end of
2008, below costs of production for some operators. Farmers who put new
placements of sows and fattening hogs at the time of high prices in
early 2008 began losing money, resulting in a higher risk of sow
slaughter and lower production later this year. With the announcement of
the price alert system and subsidy program, the government believes it
has stabilized swine and pork production, preventing further
fluctuations in price.

*Main Content*: The national swine price alert system is based on a
ratio of the live market hog price to the corn price. The targets are:
hog and grain ratio shall not be lower than 5.5:1, piglet to carcass
ratio not lower than 0.7:1, annual hog inventory not be lower than 410
million head, and productive sow inventory not be lower than 41 million
head. NDRC will announce hog producer prices and corn wholesale prices
each week. MOA will announce piglet prices weekly and every month
provide inventory numbers of swine and productive sows, as well as the
swine disease situation. MOFCOM will announce ex-slaughterhouse carcass
prices weekly, swine slaughter numbers monthly (identified
slaughterhouses), and disinfection treatment of disease-infected swine
at slaughterhouses quarterly.

+-------+----------+--------------------+-----------------------------+
| Ch    |          |                    |                             |
| ina's |          |                    |                             |
| Hog   |          |                    |                             |
| Subs  |          |                    |                             |
| idies |          |                    |                             |
| Based |          |                    |                             |
| on    |          |                    |                             |
| Hog   |          |                    |                             |
| to    |          |                    |                             |
| Corn  |          |                    |                             |
| Price |          |                    |                             |
| R     |          |                    |                             |
| atios |          |                    |                             |
|       |          |                    |                             |
| Anno  |          |                    |                             |
| unced |          |                    |                             |
| on    |          |                    |                             |
| Ja    |          |                    |                             |
| nuary |          |                    |                             |
| 9,    |          |                    |                             |
| 2009  |          |                    |                             |
| by    |          |                    |                             |
| NDRC, |          |                    |                             |
| MOF,  |          |                    |                             |
| MOA,  |          |                    |                             |
| MO    |          |                    |                             |
| FCOM, |          |                    |                             |
| AIC,  |          |                    |                             |
| and   |          |                    |                             |
| AQSIQ |          |                    |                             |
+-------+----------+--------------------+-----------------------------+
| Hog   | Classi   | Subsidies          | Other Measures              |
| to    | fication |                    |                             |
|       |          |                    |                             |
| Corn  |          |                    |                             |
| Price |          |                    |                             |
| Ratio |          |                    |                             |
+-------+----------+--------------------+-----------------------------+
| \>9   | Red Zone | The government may | The central government may  |
|       |          | provide pork       | start releasing pork from   |
|       |          | subsidies to low   | central reserves.           |
|       |          | income consumers.  |                             |
+-------+----------+--------------------+-----------------------------+
| 6.0   | Green    |                    | Central purchases pork      |
| --    | Zone     |                    | reserves mainly used for    |
| 9.0   |          |                    | disaster relief or urgent   |
|       |          |                    | cases.                      |
+-------+----------+--------------------+-----------------------------+
| 5.5   | Blue     |                    | Market alerts are           |
| --    | Zone     |                    | announced. If prices remain |
| 6.0   |          |                    | for 4 weeks, the central    |
|       |          |                    | and local governments may   |
|       |          |                    | enter the market and buy    |
|       |          |                    | pork to increase reserves.  |
+-------+----------+--------------------+-----------------------------+
| 5.1   | Yellow   | If prices fall     | If prices remain at 5.1-5.5 |
| --    | Zone     | below 5.5, the     | for four weeks, the central |
| 5.5   |          | government         | government will further     |
|       |          | provides discount  | increase central reserves,  |
|       |          | interest to        | and request main sales      |
|       |          | encourage large    | areas and large-medium      |
|       |          | domestic pork      | cities along coastal areas  |
|       |          | processors to      | to increase local           |
|       |          | increase their     | government frozen pork      |
|       |          | frozen stocks and  | reserves; encourage local   |
|       |          | processed          | government to increase live |
|       |          | products.          | hog reserves.               |
+-------+----------+--------------------+-----------------------------+
| \<5.1 | Red Zone | The government     | The central government will |
|       |          | provides an        | make heavy purchases for    |
|       |          | additional         | reserves. If prices prolong |
|       |          | one-time temporary | even after government heavy |
|       |          | subsidy at RMB100  | purchase, and sows are over |
|       |          | (\$14.6) to a      | slaughtered, China may      |
|       |          | productive sow;    | constrain imports to reduce |
|       |          | provides a         | supply and stimulate        |
|       |          | one-time temporary | exports.                    |
|       |          | subsidy at RMB100  |                             |
|       |          | to a breeding      |                             |
|       |          | boar, all from     |                             |
|       |          | identified farms.  |                             |
+-------+----------+--------------------+-----------------------------+

The price monitoring and subsidy system is in addition to existing
subsidies, which will continue in 2009. These include subsidies for each
productive sow, which were raised from RMB50 in 2007-08 to RMB100 in
2008-09, and government commercial insurance subsidies for productive
sows (each sow insurance fee at RMB 60 with the government payment at
RMB 48.0). Producers also receive local subsidies, depending on local
herd size and returns.

## Pork Consumption to Rise Five Percent

Post forecasts China's pork consumption in 2009 to increase nearly five
percent to 48.8 MMT ![](media/image3.wmf){width="4.25in"
height="1.7083333333333333in"}(CWE), following a 9 percent increase in
the previous year. Lower pork prices have continued through early 2009,
encouraging a shift back to higher pork consumption partly from chicken
and other alternatives. The effect of lower prices will be partially
offset by slower economic growth in 2009. Weak sales will be especially
notable at the lower end in urban markets, as nearly 20 million migrant
workers have recently become jobless. These workers are a major source
of consumption in canteens and other low-priced outlets[.]{dir="rtl"}

[]{dir="rtl"}

## Decreasing Breeding Swine and Pork Imports

Post forecasts China's pork imports in 2009 to decline 39 percent to
300,000 MT because of higher domestic production and declining pork
prices. Sales will also be limited by China's price monitoring and
subsidy scheme, where China will use domestic product for its strategic
reserves instead of imports. Strategic reserves were a major destination
for imported pork in 2008. The United States is expected to continue as
China's largest overseas pork supplier in 2009. U.S. exports in 2008
reached 145,000 MT valued at \$287 million. Traders report significant
additional shipments of U.S. pork were sent to China in 2008 through
gray channels (as much as 100,000 MT).

Imports of loin meat and other quality cuts will be especially impacted
by increased domestic pork supplies. However, imports of variety meats
will be comparatively strong, as consumer demand for these products will
continue to exceed domestic supply. In 2008, China imported 637,589 MT
of pork offal valued at \$696 million with U.S. market share accounting
for 26 percent of total sales.

Post expects China's imports of live swine in 2009 will fall 25 percent
to 9,000 head, after sharply higher sales in 2008. Imports will be
reduced by slower placements of breeding animals by swine farmers in
response to lower market prices. China only imports breeding swine.
Imports are mainly by domestic large companies or joint-ventures with
their own breeding farms. The United States is expected to continue
dominating China's imports accounting for nearly 70 percent of the
market. U.S. exports to China in 2008 reached a record high of 7,086
head, valued at \$12 million.

## Increasing Live Swine Exports 

China's 2009 swine exports are forecast to increase by 3 percent to 1.7
million head. This is a significant increase from the previous forecast
in the annual report (CH8078), as increased hog production and sharply
lower prices will fuel additional sales.

China only exports swine to Hong Kong and Macau allocated by export
quotas announced by MOFCOM at the end of each calendar year. MOFCOM's
2009 export quota increased slightly to 1.88 million head in response to
increased domestic production. Post believes exports will fall short of
the quota, as stricter sanitary and environmental protection
requirements for swine slaughter in Hong Kong will limit sales growth.

## Pork Exports to Decline 

Post forecasts China's pork exports in 2009 to decrease six percent to
210,000 tons because of expected weak demand in traditional export
markets in 2009 impacted by world financial crisis. Chinese traders
expect China's exports may be faced with stronger competition from the
United States in 2009 because Russia reduced its imported pork quota by
200,000 tons, which will result in more U.S. product on the world
market.

#  Statistics Tables

## Cattle PS&D Table

  -------------- ------------- -------- ---------- ------------- -------- ---------- ------------- ---- ---------- -----------
  **Animal       **2007**                          **2008**                          **2009**                      
  Numbers,                                                                                                         
  Cattle China**                                                                                                   

                 **2007**                          **2008**                          **2009**                      

                 **Market Year                     **Market Year                     **Market Year                 
                 Begin: Jan                        Begin: Jan                        Begin: Jan                    
                 2007**                            2008**                            2009**                        

                 **Annual Data          **New      **Annual Data          **New      **Annual Data      **Jan**    
                 Displayed**            Post**     Displayed**            Post**     Displayed**                   

                                        **Data**                          **Data**                      **Data**   

  Total Cattle   139442        139442   104651     139721        139721   105948     107095             106123     (1000 HEAD)
  Beg. Stks                                                                                                        

  Dairy Cows     13632         13632    11400      14700         14700    12259      13164              12699      (1000 HEAD)
  Beg. Stocks                                                                                                      

  Beef Cows Beg. 67500         67500    50585      68600         68600    49500      52048              48500      (1000 HEAD)
  Stocks                                                                                                           

  Production     59500         59500    45353      60500         60500    45000      48500              44400      (1000 HEAD)
  (Calf Crop)                                                                                                      

  Intra-EU       0             0        0          0             0        0          0                  0          (1000 HEAD)
  Imports                                                                                                          

  Other Imports  15            15       15         15            15       15         8                  16         (1000 HEAD)

  Total Imports  15            15       15         15            15       15         8                  16         (1000 HEAD)

  Total Supply   198957        198957   150019     200236        200236   150963     155,603            150539     (1000 HEAD)

  Intra EU       0             0        0          0             0        0          0                  0          (1000 HEAD)
  Exports                                                                                                          

  Other Exports  51            51       51         49            49       33         30                 30         (1000 HEAD)

  Total Exports  51            51       51         49            49       33         30                 30         (1000 HEAD)

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

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

  Other          58760         58760    43595      60000         60000    43700      45035              43050      (1000 HEAD)
  Slaughter                                                                                                        

  Total          58760         58760    43595      60000         60000    43700      45035              43050      (1000 HEAD)
  Slaughter                                                                                                        

  Loss           425           425      425        1316          1316     1107       1000               1000       (1000 HEAD)

  Ending         139721        139721   105948     138871        138871   106123     109538             106459     (1000 HEAD)
  Inventories                                                                                                      

  Total          198957        198957   150019     200236        200236   150963     155603             150539     (1000 HEAD)
  Distribution                                                                                                     

  CY Imp. from   0             0        0          0             0        0          0                  0          (1000 HEAD)
  U.S.                                                                                                             

  CY. Exp. to    0             0        0          0             0        0          0                  0          (1000 HEAD)
  U.S.                                                                                                             

  Balance        0             0        0          0             0        0          0                  0          (1000 HEAD)

  Inventory      279           279      1297       -850          -850     175        2443               336        (1000 HEAD)
  Balance                                                                                                          

  Inventory      -1            -1       2          0             0        1          1                  0          (PERCENT)
  Change                                                                                                           

  Cow Change     3             3        1          0             3        0          2                  -1         (PERCENT)

  Production     3             3        1          -2            2        -1         4                  -1         (PERCENT)
  Change                                                                                                           

  Production to  73            73       73         73            73       73         74                 73         (PERCENT)
  Cows                                                                                                             

  Trade Balance  36            36       36         34            34       18         22                 14         (1000 HEAD)

  Slaughter to   42            42       42         43            43       41         42                 41         (PERCENT)
  Inventory                                                                                                        

  TS=TD                                 0                                 0                             0          
  -------------- ------------- -------- ---------- ------------- -------- ---------- ------------- ---- ---------- -----------

## Beef and Veal PS&D Table

  -------------- ------------- ------- ---------- ------------- ------- ---------- ------------- ----- ---------- -----------
  **Meat, Beef   **2007**                         **2008**                         **2009**                       
  and Veal                                                                                                        
  China**                                                                                                         

                 **2007**                         **2008**                         **2009**                       

                 **Market Year                    **Market Year                    **Market Year                  
                 Begin: Jan                       Begin: Jan                       Begin: Jan                     
                 2007**                           2008**                           2009**                         

                 **Annual Data         **New      **Annual Data         **New      **Annual Data       **Jan**    
                 Displayed**           Post**     Displayed**           Post**     Displayed**                    

                                       **Data**                         **Data**                       **Data**   

  Slaughter      58760         58760   43595      60000         60000   43700      45035               43000      (1000 HEAD)
  (Reference)                                                                                                     

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

  Production     7480          7480    6134       7730          7730    6100       6360                6000       (1000 MT
                                                                                                                  CWE)

  Intra-EU       0             0       0          0             0       0          0                   0          (1000 MT
  Imports                                                                                                         CWE)

  Other Imports  5             8       8          30            30      10         11                  9          (1000 MT
                                                                                                                  CWE)

  Total Imports  5             8       8          30            30      10         11                  9          (1000 MT
                                                                                                                  CWE)

  Total Supply   7485          7488    6142       7760          7760    6110       6372                6009       (1000 MT
                                                                                                                  CWE)

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

  Other Exports  81            81      81         78            78      59         48                  52         (1000 MT
                                                                                                                  CWE)

  Total Exports  81            81      81         78            78      59         48                  52         (1000 MT
                                                                                                                  CWE)

  Human Dom.     7404          7407    6061       7682          7682    6051       6324                5957       (1000 MT
  Consumption                                                                                                     CWE)

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

  Total Dom.     7404          7407    6061       7682          7682    6051       6324                5957       (1000 MT
  Consumption                                                                                                     CWE)

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

  Total          7485          7488    6142       7760          7760    6110       6372                6009       (1000 MT
  Distribution                                                                                                    CWE)

  CY Imp. from   0             0       0          0             0       0          0                   0          (1000 MT
  U.S.                                                                                                            CWE)

  CY. Exp. to    0             0       0          0             0       0          0                   0          (1000 MT
  U.S.                                                                                                            CWE)

  Balance        0             0       0          0             0       0          0                   0          (1000 MT
                                                                                                                  CWE)

  Inventory      0             0       0          0             0       0          0                   0          (1000 MT
  Balance                                                                                                         CWE)

  Weights        127           127     141        129           129     140        141                 140        (1000 MT
                                                                                                                  CWE)

  Production     6             6       6          -4            3       -1         2                   -2         (PERCENT)
  Change                                                                                                          

  Import Change  150           300     -11        400           275     25         9                   -10        (PERCENT)

  Export Change  -5            -5      -18        -24           -4      -27        -21                 -12        (PERCENT)

  Trade Balance  76            73      73         48            48      49         36                  43         (1000 MT
                                                                                                                  CWE)

  Consumption    6             6       7          -4            4       -1         2                   -2         (PERCENT)
  Change                                                                                                          

  Population     0             0       0          0             0       0          0                   0          (HEAD)

  Per Capita     0             0       0          0             0       0          0                   0          (KG)
  Consumption                                                                                                     

  TS=TD                                0                                0                              0          
  -------------- ------------- ------- ---------- ------------- ------- ---------- ------------- ----- ---------- -----------

## Cattle and Beef Trade Matrices

  ------------------- ------------ ------------ ------------ -------------
  China Live Cattle                                          
  Imports, 2006-2008                                         
  (Number of Head)                                           

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Origin              2006         2007         2008         2008/07

  World               15,072       14,744       15,075       2.24

  Australia           12,265       11,344       12,416       9.45

  New Zealand         2,802        3,400        2,651        -22.03

  United States       0            0            0            0

  Canada              0            0            0            0

  Other               5            0            8            0

  HS Code: 010210,                                           
  010290                                                     

  Source: GTA China                                          
  Statistics                                                 
  ------------------- ------------ ------------ ------------ -------------

  ------------------- ------------ ------------ ------------ -------------
  China Beef and Veal                                        
  Direct Imports,                                            
  2006-2008 (Metric                                          
  Tons)                                                      

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Origin              2006         2007         2008         2008/07

  World               1,388        3,924        4,424        12.74

  Australia           1,034        2,195        2,712        23.55

  Uruguay             110          920          1,464        59.13

  New Zealand         234          457          173          -62.14

  Brazil              7            333          33           -90.09

  United States       0            0            2            0.00

  Canada              0            0            0            0.00

  Other               120          19           40           0.00

  HS Code: 020110,                                           
  020120, 020130,                                            
  020210, 020220,                                            
  020230, 021020                                             
  160250                                                     

  Source: GTA China                                          
  Statistics                                                 
  ------------------- ------------ ------------ ------------ -------------

  ------------------- ------------ ------------ ------------ -------------
  Hong Kong                                                  
  Re-Exports of Beef                                         
  and Veal to                                                
  Mainland China,                                            
  2006-2008 (Metric                                          
  Tons)                                                      

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Origin              2006         2007         2008         2008/07

  World               114          1,997        1,064        -46.72

  Brazil              60           718          754          5.01

  United States       \-           435          160          -63.22

  New Zealand         \-           38           47           23.68

  Canada              30           23           25           8.70

  Argentina           \-           219          25           -88.58

  Other               24           272          53           -80.51

  HS Code: 020110,                                           
  020120, 020130,                                            
  020210, 020220,                                            
  020230, 021020 and                                         
  160250                                                     

  Source: WTA Hong                                           
  Kong Census and                                            
  Statistics                                                 
  Department                                                 
  ------------------- ------------ ------------ ------------ -------------

  ------------------ ------------ ------------ ------------ ---------------
  China Live Cattle                                         
  Exports, 2006-2008                                        
  (Number of Head)                                          

                     Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                     Quantity     Quantity     Quantity     \% Change

  Destination        2006         2007         2008         2008/07

  World              54,389       50,888       33,340       -34.48

  Hong Kong          45,957       42,275       29,485       -30.25

  Macau              5,898        5,517        2,946        -46.60

  Uzbekistan         0            512          512          0.00

  Mongolia           167          143          301          110.49

  Malaysia           0            1,813        0            -100.00

  Korea North        20           450          0            -100.00

  Saudi Arabism      2,217        0            0            #DIV/0!

  Other              130          690          96           -86.09

  HS Code: 010210,                                          
  010290                                                    

  Source: GTA from                                          
  China Statistics                                          
  ------------------ ------------ ------------ ------------ ---------------

  ------------------- ------------ ------------ ------------ --------------
  China Beef and Veal                                        
  Exports, 2006-2008                                         
  (Metric Tons)                                              

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Destination         2006         2007         2008         2008/07

  World               60,849       58,206       22,875       -60.70

  Hong Kong           15,051       15,815       7,948        -49.74

  Jordan              4,558        5,530        4,414        -20.18

  Kuwait              3,668        3,825        3,171        -17.10

  Kyrgyzstan          312          1,925        2,143        11.32

  Malaysia            2,371        2,631        1,269        -51.77

  Lebanon             2,269        1,937        816          -57.87

  United Arab         169          761          650          -14.59
  Emirates                                                   

  Libya               303          75           618          724.00

  Israel              0            0            568          0.00

  Brunei              43           37           252          581.08

  Qatar               250          366          244          -33.33

  Korea South         14,080       10,296       168          -98.37

  Korea North         1,602        913          168          -81.60

  Macau               297          338          94           -72.19

  Angola              64           675          76           -88.74

  Japan               10,439       8,365        1            -99.99

  Indonesia           1,502        1,188        0            -100.00

  Other               4,003        3,932        275          -93.01

  HS Code: 020110,                                           
  020120, 020130,                                            
  020210, 020220,                                            
  020230, 021020 and                                         
  160250                                                     

  Source: GTA from                                           
  China Customs                                              
  Statistics                                                 
  ------------------- ------------ ------------ ------------ --------------

  ---------------- ---------- ---------- ---------- ---------- ------------
  China Retail                                                 
  Beef Prices on                                               
  Average,                                                     
  2005-2008                                                    
  (RMB/KG)                                                     
  (\$1=RMB6.85)                                                

                                                               \% Change

                   2005       2006       2007       2008       2008/07

  January          17.11      18.55      19.64      29.11      48.22

  February         18.28      18.65      20.35      31.40      54.30

  March            17.72      18.37      20.14      31.42      56.01

  April            17.48      18.33      20.07      31.55      57.20

  May              17.48      18.31      20.28      31.73      56.46

  June             17.46      18.32      21.21      31.82      50.02

  July             17.40      18.27      22.02      31.92      44.96

  August           17.45      18.40      23.13      32.02      38.43

  September        17.65      18.57      23.69      32.39      36.72

  October          17.81      18.54      24.36      32.74      34.40

  November         17.98      18.86      25.27      32.98      30.51

  December         18.06      18.21      26.65      33.25      24.77

  Source: The                                                  
  Ministry of                                                  
  Agriculture                                                  
  ---------------- ---------- ---------- ---------- ---------- ------------

## Swine PS&D Table

  -------------- ------------- --------- ---------- ------------- --------- ---------- ------------- ---- ---------- -----------------
  **Animal       **2007**                           **2008**                           **2009**                      **49907.99701**
  Numbers, Swine                                                                                                     
  China**                                                                                                            

                 **2007**                           **2008**                           **2009**                      

                 **Market Year                      **Market Year                      **Market Year                 
                 Begin: Jan                         Begin: Jan                         Begin: Jan                    
                 2007**                             2008**                             2009**                        

                 **Annual Data           **New      **Annual Data           **New      **Annual Data      **Jan**    
                 Displayed**             Post**     Displayed**             Post**     Displayed**                   

                                         **Data**                           **Data**                      **Data**   

  Total          494407        494407    418504     487801        464801    439895     446662             462640     (1000 HEAD)
  Beginning                                                                                                          
  Stocks                                                                                                             

  Sow Beginning  44000         46500     44206      44099         46000     47461      44900              49907      (1000 HEAD)
  Stocks                                                                                                             

  Production     589333        630000    592080     604158        640000    635978     615000             667769     (1000 HEAD)
  (Pig Crop)                                                                                                         

  Intra-EU       0             0         0          0             0         0          0                  0          (1000 HEAD)
  Imports                                                                                                            

  Other Imports  3             3         3          4             4         12         7                  9          (1000 HEAD)

  Total Imports  3             3         3          4             4         12         7                  9          (1000 HEAD)

  Total Supply   1083743       1124410   1010587    1091963       1104805   1075885    1061669            1130418    (1000 HEAD)

  Intra EU       0             0         0          0             0         0          0                  0          (1000 HEAD)
  Exports                                                                                                            

  Other Exports  1609          1609      1609       1550          1550      1645       1400               1700       (1000 HEAD)

  Total Exports  1609          1609      1609       1550          1550      1645       1400               1700       (1000 HEAD)

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

  Other          589333        652000    565083     588158        644645    609600     604500             644670     (1000 HEAD)
  Slaughter                                                                                                          

  Total          589333        652000    565083     588158        644645    609600     604500             644670     (1000 HEAD)
  Slaughter                                                                                                          

  Loss           5000          6000      4000       2500          5000      2000       2500               2000       (1000 HEAD)

  Ending         487801        464801    439895     499755        453610    462640     453269             482048     (1000 HEAD)
  Inventories                                                                                                        

  Total          1083743       1124410   1010587    1091963       1104805   1075885    1061669            1130418    (1000 HEAD)
  Distribution                                                                                                       

  CY Imp. from   0             0         0          1             2         7          7                  6          (1000 HEAD)
  U.S.                                                                                                               

  CY. Exp. to    0             0         0          0             0         0          0                  0          (1000 HEAD)
  U.S.                                                                                                               

  Balance        0             0         0          0             0         0          0                  0          (1000 HEAD)

  Inventory      -6606         -29606    21391      11954         -11191    22745      6607               19408      (1000 HEAD)
  Balance                                                                                                            

  Inventory      -2            -2        -3         -1            -6        5          2                  5          (PERCENT)
  Change                                                                                                             

  Sow Change     -91           -5        -6         902           -1        7          2                  5          (PERCENT)

  Production     -8            -7        -2         3             2         7          3                  5          (PERCENT)
  Change                                                                                                             

  Production to  13.4          14.0      13.4       14.0          14.0      13.4       14                 13.4       (PERCENT)
  Sows                                                                                                               

  Trade Balance  1606          1606      1606       1546          1546      1633       1393               1691       (1000 HEAD)

  Slaughter to   119           132       135        121           139       139        135                139        (PERCENT)
  Inventory                                                                                                          

  TS=TD                                  0                                  0                             0          
  -------------- ------------- --------- ---------- ------------- --------- ---------- ------------- ---- ---------- -----------------

## Pork PS&D Table

  -------------- ------------- -------- ---------- ------------- -------- ---------- ------------- ---- ---------- -----------
  **Meat, Swine  **2007**                          **2008**                          **2009**                      
  China**                                                                                                          

                 **2007**                          **2008**                          **2009**                      

                 **Market Year                     **Market Year                     **Market Year                 
                 Begin: Jan                        Begin: Jan                        Begin: Jan                    
                 2007**                            2008**                            2009**                        

                 **Annual Data          **New      **Annual Data          **New      **Annual Data      **Jan**    
                 Displayed**            Post**     Displayed**            Post**     Displayed**                   

                                        **Data**                          **Data**                      **Data**   

  Slaughter      589333        652000   565083     588158        644645   609600     604,500            644,670    (1000 HEAD)
  (Reference)                                                                                                      

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

  Production     44200         41609    42878      44700         42026    46150      46,000             48,700     (1000 MT
                                                                                                                   CWE)

  Intra-EU       0             0        0          0             0        0          0                  0          (1000 MT
  Imports                                                                                                          CWE)

  Other Imports  198           186      198        210           200      522        360                300        (1000 MT
                                                                                                                   CWE)

  Total Imports  198           186      198        210           200      522        360                300        (1000 MT
                                                                                                                   CWE)

  Total Supply   44398         41795    43076      44910         42226    46672      46,360             49,000     (1000 MT
                                                                                                                   CWE)

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

  Other Exports  350           350      350        330           330      223        170                210        (1000 MT
                                                                                                                   CWE)

  Total Exports  350           350      350        330           330      223        170                210        (1000 MT
                                                                                                                   CWE)

  Human Dom.     44048         41445    42726      44580         41896    46449      46,190             48,790     (1000 MT
  Consumption                                                                                                      CWE)

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

  Total Dom.     44048         41445    42726      44580         41896    46449      46,190             48,790     (1000 MT
  Consumption                                                                                                      CWE)

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

  Total          44398         41795    43076      44910         42226    46672      46,360             49,000     (1000 MT
  Distribution                                                                                                     CWE)

  CY Imp. from   88            88       91         94            94       205        177                0          (1000 MT
  U.S.                                                                                                             CWE)

  CY. Exp. to    0             0        0          0             0        0          0                  0          (1000 MT
  U.S.                                                                                                             CWE)

  Balance        0             0        0          0             0        0          0                  0          (1000 MT
                                                                                                                   CWE)

  Inventory      0             0        0          0             0        0          0                  0          (1000 MT
  Balance                                                                                                          CWE)

  Weights        75            64       76         76            65       76         76                 76         (1000 MT
                                                                                                                   CWE)

  Production     -9            -9       -8         1             1        8          3                  6          (PERCENT)
  Change                                                                                                           

  Import Change  120           107      120        6             8        164        -25                -43        (PERCENT)

  Export Change  -36           -36      -36        -6            -6       -36        -14                -6         (PERCENT)

  Trade Balance  152           164      152        120           130      -299       -190               -90        (1000 MT
                                                                                                                   CWE)

  Consumption    -9            -9       -7         1             1        9          3                  5          (PERCENT)
  Change                                                                                                           

  TS=TD                                 0                                 0                             0          
  -------------- ------------- -------- ---------- ------------- -------- ---------- ------------- ---- ---------- -----------

## Swine and Pork Trade Matrices

  ------------------- ------------ ------------ ------------ --------------
  China Swine                                                
  Imports, 2006-2008                                         
  (Number of Head)                                           

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Origin              2006         2007         2008         2008/07

  World               2,489        2,506        11,613       363.41

  United States       1,038        194          7,086        3552.58

  Canada              503          1,780        3,876        117.75

  Denmark             662          0            126          0.00

  United Kingdom      266          262          525          100.38

  France              0            270          0            -100.00

  Other               20           0            0            0.00

  HS Code: 010310,                                           
  010391, 010392                                             

  Source: GTA China                                          
  Statistics                                                 
  ------------------- ------------ ------------ ------------ --------------

  ----------------- ----------- ----------- ------------ ----------- ---------
  China Pork                                                         
  Imports by                                                         
  Reporting                                                          
  Countries Export                                                   
  Statistics,                                                        
  2006-2008 (Metric                                                  
  Tons)                                                              

                    Jan-Dec     Jan-Dec     Jan - Nov                Jan - Nov

                    Quantity    Quantity    Quantity                 \% Change
                                            Comparison               

  Origin            2006        2007        2007         2008        2008/07

  World             52,308      98,274      92,640       151,880     63.95

  United States     31,866      67,870      64,935       109,304     68.33

  Canada            15,870      17,576      16,910       16,099      -4.80

  France            2021        3767        3,354        12,952      286.17

  Denmark           629         4,319       4,095        6,101       48.99

  Ireland           2           758         524          2,601       396.37

  United Kingdom    668         960         124          1,991       1505.65

  Netherlands       159         668         408          1,052       157.84

  Belgium           668         960         556          558         0.36

  Taiwan            11          205         202          490         142.57

  Other             414         1,191       1,532        732         -52.22

  HS Code: 020311,                                                   
  020312, 020319,                                                    
  020321, 020322,                                                    
  020329, 021011                                                     
  021012,                                                            

  021019, 160241,                                                    
  160242 and 160249                                                  
  ,                                                                  

  Source: GTA                                                        
  Reporting                                                          
  Countries' Export                                                  
  Statistics                                                         

  Note: Hong Kong                                                    
  Re-exports to                                                      
  China is in a                                                      
  separate table.                                                    
  ----------------- ----------- ----------- ------------ ----------- ---------

+------------------+-----------+-----------+-----------+--------------+
| Hong Kong        |           |           |           |              |
| Re-Exports of    |           |           |           |              |
| Pork to Mainland |           |           |           |              |
| China, 2006-2008 |           |           |           |              |
| (Metric Tons)    |           |           |           |              |
+------------------+-----------+-----------+-----------+--------------+
|                  | Jan-Dec   | Jan-Dec   | Jan-Dec   | Jan-Dec      |
+------------------+-----------+-----------+-----------+--------------+
|                  | Quantity  | Quantity  | Quantity  | \% Change    |
+------------------+-----------+-----------+-----------+--------------+
| Origin           | 2006      | 2007      | 2008      | 2008/07      |
+------------------+-----------+-----------+-----------+--------------+
| The World        | 17,127    | 53,696    | 177,356   | 230.30       |
+------------------+-----------+-----------+-----------+--------------+
| United States    | 362       | 1,980     | 33,483    | 1591.06      |
+------------------+-----------+-----------+-----------+--------------+
| Germany, Fed Rep | 4,851     | 8,991     | 27,161    | 202.09       |
+------------------+-----------+-----------+-----------+--------------+
| Spain            | 3,581     | 11,266    | 24,705    | 119.29       |
+------------------+-----------+-----------+-----------+--------------+
| Canada           | 1,627     | 641       | 18,576    | 2797.97      |
+------------------+-----------+-----------+-----------+--------------+
| Netherlands      | 690       | 4,809     | 14,068    | 192.53       |
+------------------+-----------+-----------+-----------+--------------+
| Italy            | 100       | 3,520     | 8,854     | 151.53       |
+------------------+-----------+-----------+-----------+--------------+
| Brazil           | 729       | 6,220     | 8,272     | 32.99        |
+------------------+-----------+-----------+-----------+--------------+
| Poland           | 497       | 2,478     | 7,692     | 210.41       |
+------------------+-----------+-----------+-----------+--------------+
| Denmark          | 2,537     | 3,132     | 6,134     | 95.85        |
+------------------+-----------+-----------+-----------+--------------+
| United Kingdom   | 151       | 791       | 4,116     | 420.35       |
+------------------+-----------+-----------+-----------+--------------+
| France           | 627       | 2,949     | 4,045     | 37.17        |
+------------------+-----------+-----------+-----------+--------------+
| Belgium          | 1,045     | 2,639     | 3,733     | 41.46        |
+------------------+-----------+-----------+-----------+--------------+
| Ireland          | 225       | 803       | 3,143     | 291.41       |
+------------------+-----------+-----------+-----------+--------------+
| Hungary          | 0         | 736       | 2,596     | 252.72       |
+------------------+-----------+-----------+-----------+--------------+
| Chile            | 22        | 454       | 1,220     | 168.72       |
+------------------+-----------+-----------+-----------+--------------+
| Austria          | 0         | 251       | 982       | 291.24       |
+------------------+-----------+-----------+-----------+--------------+
| Australia        | 0         | 48        | 979       | 1939.58      |
+------------------+-----------+-----------+-----------+--------------+
| Sweden           | 26        | 26        | 592       | 2176.92      |
+------------------+-----------+-----------+-----------+--------------+
| Portugal         | 0         | 125       | 552       | 341.60       |
+------------------+-----------+-----------+-----------+--------------+
| Other            | 105       | 2,823     | 6,453     | 128.59       |
+------------------+-----------+-----------+-----------+--------------+
| HS Code: 020311, |           |           |           |              |
| 020312, 020319,  |           |           |           |              |
| 020321, 020322,  |           |           |           |              |
| 020329, 021011   |           |           |           |              |
| 021012,          |           |           |           |              |
|                  |           |           |           |              |
| 021019, 160241,  |           |           |           |              |
| 160242 and       |           |           |           |              |
| 160249 ,         |           |           |           |              |
|                  |           |           |           |              |
| Source: WTA from |           |           |           |              |
| Hong Kong Census |           |           |           |              |
| and Statistics   |           |           |           |              |
| Department       |           |           |           |              |
+------------------+-----------+-----------+-----------+--------------+

  ------------------- ------------ ------------ ------------ --------------
  China Pork Exports,                                        
  2006-2008 (Metric                                          
  Tons)                                                      

                      Jan-Dec      Jan-Dec      Jan-Dec      Jan-Dec

                      Quantity     Quantity     Quantity     \% Change

  Destination         2006         2007         2008         2008/07

  World               418,788      269,099      171,719      -36.19

  Hong Kong           129,965      107,431      87,396       -18.65

  Japan               79,133       74,430       43,015       -42.21

  Kyrgyzstan          15,522       10,172       8,437        -17.06

  Malaysia            11,258       7,934        7,142        -9.98

  Macau               6,242        5,170        4,622        -10.60

  Singapore           12,748       6,456        4,494        -30.39

  Philippines         13,571       9,525        3,541        -62.82

  Indonesia           3,032        1,291        2,079        61.04

  Vietnam             29,322       9,623        1,985        -79.37

  Georgia             2,195        78           969          1142.31

  Lebanon             678          693          636          -8.23

  Papua New Guinea    737          477          619          29.77

  Albania             6,242        5,170        519          -89.96

  Korea North         75,364       21,166       464          -97.81

  Korea South         8,006        433          464          7.16

  Russia              6,984        822          71           -91.36

  Angola              2,341        359          61           -83.01

  Kazakhstan          5,420        2,280        0            -100.00

  Moldova             2,041        294          0            -100.00

  Ukraine             630          0            0            #DIV/0!

  Other               7,357        5,295        5,205        -1.70

  HS Code: 020311,                                           
  020312, 020319,                                            
  020321, 020322,                                            
  020329, 021011                                             
  021012, 021019,                                            

  160241, 160242 and                                         
  160249                                                     

  Source: GTA from                                           
  China Customs                                              
  Statistics                                                 
  ------------------- ------------ ------------ ------------ --------------

## Pork, Swine and Piglet Prices

  --------------- ----------- ----------- ----------- ----------- ------------
  China Retail                                                    
  Pork Prices On                                                  
  Average,                                                        
  2005-2008                                                       
  (RMB/KG)                                                        
  (\$1=RMB6.85)                                                   

                                                                  \% Change

  MONTH           2005        2006        2007        2008        2008/07

  January         14.14       12.43       14.91       25.53       71.23

  February        14.33       12.18       14.97       26.08       74.22

  March           13.95       11.65       14.50       25.56       76.28

  April           13.58       11.13       14.39       25.68       78.46

  May             13.27       10.71       15.86       24.71       55.80

  June            13.15       10.58       17.74       24.10       35.85

  July            13.07       11.06       20.77       23.58       13.53

  August          12.94       12.01       22.95       23.18       1.00

  September       13.00       12.82       22.10       22.59       2.22

  October         12.34       12.99       21.15       20.86       -1.37

  November        11.87       13.35       22.35       19.46       -12.93

  December        11.95       14.40       24.05       20.34       -15.43

  Source: The                                                     
  Ministry of                                                     
  Agriculture                                                     
  --------------- ----------- ----------- ----------- ----------- ------------

  --------------- ----------- ----------- ----------- ----------- ------------
  China Retail                                                    
  Hog Prices On                                                   
  Average                                                         
  2005-2008                                                       
  (RMB/KG)                                                        
  (\$1=RMB6.85)                                                   

                                                                  \% Change

  MONTH           2005        2006        2007        2008        2008/07

  January         8.80        7.40        9.55        16.50       72.77

  February        8.84        7.11        9.20        16.70       81.52

  March           8.69        6.68        8.91        16.83       88.89

  April           8.36        6.21        9.02        16.87       87.03

  May             8.05        5.96        10.20       15.77       54.61

  June            8.01        6.08        11.37       15.35       35.00

  July            7.94        6.47        13.12       14.82       12.96

  August          7.80        7.17        14.27       14.47       1.40

  September       7.75        7.84        13.60       13.86       1.91

  October         6.98        7.93        13.21       12.50       -5.37

  November        6.75        8.33        14.13       11.90       -15.78

  December        6.95        9.18        15.46       12.91       -16.49

  Source: The                                                     
  Ministry of                                                     
  Agriculture                                                     
  --------------- ----------- ----------- ----------- ----------- ------------

  --------------- ----------- ----------- ----------- ----------- ------------
  China Retail                                                    
  Piglet Prices                                                   
  On Average                                                      
  2005-2008                                                       
  (RMB/KG)                                                        
  (\$1=RMB6.85)                                                   

                                                                  \% Change

  MONTH           2005        2006        2007        2008        2008/07

  January         13.43       9.24        12.12       29.66       144.72

  February        13.56       9.48        12.26       30.62       149.76

  March           14.64       8.85        12.68       35.29       178.31

  April           14.51       7.82        13.31       38.23       187.23

  May             14.02       6.98        15.09       36.11       139.30

  June            13.74       6.84        17.17       34.55       101.22

  July            13.35       7.05        20.11       33.01       64.15

  August          12.74       8.31        24.09       30.94       28.44

  September       12.09       9.60        23.70       28.55       20.46

  October         10.02       9.85        22.62       23.44       3.63

  November        8.83        10.25       23.84       20.02       -16.02

  December        8.68        11.44       26.21       19.42       -25.91

  Source: The                                                     
  Ministry of                                                     
  Agriculture                                                     
  --------------- ----------- ----------- ----------- ----------- ------------