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Required Report - public distribution

**Date:** 9/1/2005

**GAIN Report Number:** CH5064

CH5064

**China, Peoples Republic of**

**Poultry and Products**

**Annual Report**

**2005**

**Approved by:**

Casey Bean

U.S. Embassy Beijing, Office of Agricultural Affairs

**Prepared by:**

Casey Bean/Zhang Jianping

**Report Highlights:**

China\'s broiler slaughter during 2006 is forecast at 7.7 billion birds,
a 3 percent increase from the estimated 7.5 billion birds in 2005, due
to a recovery in domestic demand following the 2004 avian influenza
outbreaks. Though the U.S. is still the top supplier of imported poultry
products, Brazil and Argentina reduced the U.S. market share from 96% in
2003 to only 46% in 2005. A pre-inspection requirement for transshipped
products and the cancellation of processing permits continues to shift
poultry trade away from Hong Kong and toward Mainland Chinese ports.
China\'s broiler meat exports in 2006 are forecast at 360,000 MT, a
20-percent increase from the estimated 300,000 MT in 2005. Expanding
cooked poultry exports will continue to be China\'s export priority due
to the challenges it faces shipping fresh and frozen product.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Poultry Production 3](#poultry-production)

[China's broiler meat production for 2006 forecast to increase about 3
percent
3](#chinas-broiler-meat-production-for-2006-forecast-to-increase-about-3-percent)

[Feed production increased over 16 percent in the first half of 2005
4](#feed-production-increased-over-16-percent-in-the-first-half-of-2005)

[Wholesale broiler meat prices up 10.3 percent, while retail prices up
15.7 percent from January to June 2005
5](#wholesale-broiler-meat-prices-up-10.3-percent-while-retail-prices-up-15.7-percent-from-january-to-june-2005)

[China's broiler consumption for 2006 forecast to increase 2.7 percent
5](#chinas-broiler-consumption-for-2006-forecast-to-increase-2.7-percent)

[Poultry Product Trade 5](#poultry-product-trade)

[China's broiler imports for 2006 forecast to rebound 14 percent to
320,000 MT, the U.S. still the largest supplier, but Brazil challenges
5](#chinas-broiler-imports-for-2006-forecast-to-rebound-14-percent-to-320000-mt-the-u.s.-still-the-largest-supplier-but-brazil-challenges)

[Chicken paw imports account for half of China's total poultry imports
6](#chicken-paw-imports-account-for-half-of-chinas-total-poultry-imports)

[Unified chicken paw health standard has impacted U.S. exports
6](#unified-chicken-paw-health-standard-has-impacted-u.s.-exports)

[China's cancellation of processing permits will result in more approved
3^rd^ country poultry processing plants
7](#chinas-cancellation-of-processing-permits-will-result-in-more-approved-3rd-country-poultry-processing-plants)

[Pre-inspection law and other measures "encourage" direct shipments to
China
7](#pre-inspection-law-and-other-measures-encourage-direct-shipments-to-china)

[Comparing U.S. and Brazilian poultry products
7](#comparing-u.s.-and-brazilian-poultry-products)

[China's broiler meat exports for 2006 forecast to increase 20 percent
to 360,000 MT
8](#chinas-broiler-meat-exports-for-2006-forecast-to-increase-20-percent-to-360000-mt)

[USDA finishes a proposed rule to include China's processing (not
slaughter) part as an eligible country to export cooked poultry to the
U.S.
8](#usda-finishes-a-proposed-rule-to-include-chinas-processing-not-slaughter-part-as-an-eligible-country-to-export-cooked-poultry-to-the-u.s.)

[Poultry Egg Production 9](#poultry-egg-production)

[Poultry egg production in 2006 forecast to grow 5.5 percent to 30.17
million MT
9](#poultry-egg-production-in-2006-forecast-to-grow-5.5-percent-to-30.17-million-mt)

[PSD Table -- Broiler Meat 10](#psd-table-broiler-meat)

#   {#section .unnumbered}

# Executive Summary

Post forecasts China's broiler slaughter during 2006 at 7.7 billion
birds, a 3 percent increase from the estimated 7.5 million birds in
2005. Broiler meat production for 2006 is forecast at 10.5 MMT, also a 3
percent increase from the estimated 10.2 MMT this year. The pace of
growth in 2006 is forecast to be faster than 2005 because of the rebound
in broiler meat demand after the 2004 avian influenza outbreaks,
increased grain and feed production and increased poultry sector
investment. Of total poultry egg production, 80 percent is comprised of
chicken eggs.

Chicken layer production is becoming more concentrated in grain feed
production areas in the Northeast and North China, though overall
broiler production is constrained by feed grain supplies. The domestic
corn production gap is around 20 MMT a year, and 70 percent of soy meal,
70 percent of fishmeal and 50 percent of amino acid inputs have to be
satisfied by imports.

Though avian influenza (AI) outbreaks remain a concern for the China's
poultry industry and consumers, post forecasts China's broiler
consumption for 2006 at 10.5 MMT, a 2.7 percent increase from the
estimated 10.2 MMT in 2005.

During January-June 2005, wholesale broiler meat prices increased 10.3
percent, while retail prices increased 15.7 percent over the same period
of the previous year. Wholesale chicken egg prices increased 13.3
percent and average retails prices increased 10.5 percent respectively
over the same period. Prices in the second half of 2005 for broiler meat
are forecast steady to weak due to increased domestic grain production
and large levels of soybean imports.

China's broiler imports during 2006 are forecast to increase 14 percent
to 320,000 MT from the estimated 280,000 MT in 2005---still below the
pre-AI levels. The U.S. is still the largest poultry product supplier to
the import market, but strong competition from Brazil threatens this
position. Although U.S. exports have been recovering after China lifted
its ban on U.S. poultry at the end of last year, the market has not
rebounded due to the absence of U.S. product during 2004, the
unification of the chicken paw health standard for Hong Kong and the
mainland and the higher prices of U.S. poultry products.

As a result, the U.S. export market share fell from 96 percent to 46
percent for direct shipments from 2003 through June 2005. U.S. broiler
meat direct shipments to China in 2002, 2003 and 2004 were 471,917 MT,
545,398 MT and 75,645 MT respectively, accounting for 94.5, 96.4 and
42.0 percent market share. From January to June 2005, U.S. direct
shipments were only 70,956 MT, accounting for 46.1 percent market share.
China's other policy changes such as pre-inspection in Hong Kong for
transshipments and cancellation of processing permit will continue
encourage trade shifting away from Hong Kong to more directly shipments
to China.

Post forecasts China's poultry exports during 2006 at 360,000 MT, a
20-percent increase from the estimated 300,000 MT in 2005. The export
increase is driven by export market demand from Japan and Hong Kong that
account for 80 percent of the export market. As frozen broiler exports
to other countries remain constrained, China will continue focusing
market access negotiations on cooked broiler exports.

# Poultry Production

## China's broiler meat production for 2006 forecast to increase about 3 percent

China's broiler meat production in 2006 is forecast to increase about 3
percent from the estimated 10.2 MMT in 2005 to 10.5 MMT due to strong
demand and an increase in exports. Domestic grain and feed production
increases in 2004 and most likely in 2005, combined with considerable
increases in soybean imports, will bring feed prices down, thus helping
poultry production remain profitable in 2006.

China's broiler production in 2005 is forecast to increase 2 percent to
10.2 MMT from the previous year. Post adjusted upward the broiler
production number for 2004 in the PSD table based on updated information
from the China Meat Association. Although the broiler industry suffered
a setback in the first half of 2004 due to highly pathogenic avian
influenza (HPAI) in China, broiler production recovered quickly due to
favorable policies.

According to China's National Development and Reform Commission, China
provided RMB 45 billion in 2004 and will provide another RMB 25 billion
in 2005 to subsidize agriculture including tax reduction or exemption,
direct cash subsidies to grain farmers, high quality grain seeds, feed
quality improvement, animal disease control (including subsidies of
culled poultry due to AI infection) and government supervision of animal
drug production. As a result, grain production rose in 2004 after
falling for five successive years. Feed production in 2004 was a record
high (see below), which helped poultry profit margins. Poultry
production started recovering quickly after AI and ended up with a
slight increase in 2004. China will also invest RMB 5 billion (\$620
million) to establish laboratory labs in 2,000 counties for animal drug
residue tests. These efforts are will build consumers' confidence in
meat safety.

However, the pace of growth for China's broiler production in 2006 is
still forecast below 2003 prior to the AI outbreaks in 2004. Factors
constraining broiler production include lingering concerns about highly
pathogenic avian influenza (HPAI). Occasional outbreaks of HPAI in the
western region of China or in neighboring countries in 2005 make broiler
production risky. Some farmers have turned to geese and ducks for higher
profit.

China's broiler production is mainly constrained by feed resources. The
domestic corn gap is around 20 MMT a year, about 70 percent of soy meal,
70 percent of fishmeal and 50 percent of amino acid inputs must be
imported. Continued increases in poultry production will hinge on
continued large imports of feed processing materials.

## Feed production increased over 16 percent in the first half of 2005

China's feed production from January to June in 2005 was 43.7 MMT, an
increase of 16 percent over the same period of 2004, the largest rise in
the last 20 years. China's feed production in 2004 was 93 MMT, an
increase of 6.8 percent from the previous year. Year-on-year compound
feed increased by 3.1 percent to 68.2 MMT, concentrated feed increased
by 6.2 percent to 20.8 MMT and compound pre-mixed feed increased 11
percent to 3.6 MMT.

Currently, 70 percent of China's total corn is used for feed. The model
of integrating flagship feed companies with farmers for direct supply
has helped farmer profit and improved feed quality. The feed industry
estimates that 1 MT of compound feed could help increase farm income
\$25 on average in the animal and poultry culture sector. Domestic feed
additives such as vitamin E and C, choline chloride and other basic
minerals can meet demand. Lysine production in 2004 reached 171,000 MT
accounting for 50 percent of the market.

China recently approved the last biotech "event" of the 8 U.S.
genetically modified corn varieties to be used in China, eliminating a
possible problem for imported feed grains. Better access to feed grains
will translate into stable feed prices unless a bad crop keeps
international corn prices at high levels.

## Wholesale broiler meat prices up 10.3 percent, while retail prices up 15.7 percent from January to June 2005

According to Ministry of Agriculture (MOA) data, January to June 2005
China's average wholesale broiler meat price was \$1.07 per kilogram,
and the retail price was \$1.36, an increase of 10 percent and 15
percent respectively over the same period of 2004. The wholesale live
chicken price during the same period was \$1.23 per kilogram, an
increase of 13 percent over the same period of the previous year. Retail
live chicken price was \$1.35, also a 13 percent increase. Domestic
broiler prices were pushed up by the slowed growth in broiler supplies
due to the AI outbreaks and also due to higher international market
prices.

The prices in the second half of 2005 are estimated to be steady or
weaker due to lower feed costs. As evidence, the pace of growth for
retail broiler prices already dropped from 26.8 percent in February to
5.5 percent in July.

## China's broiler consumption for 2006 forecast to increase 2.7 percent 

China's broiler meat consumption for 2006 is forecast at 10.4 MMT, a
2.7-percent increase from the forecast 10.2 million MT for 2005. The
pace of growth in broiler consumption is forecast larger than the
previous year due to growing consumer and industry confidence post-2004
(AI outbreak). In the first half of 2005, China's GDP increased 9.5
percent over the same period of 2004, and per capita disposable incomes
for urban residents increased 9.5 percent, while per capita cash incomes
for rural residents increased 12.5 percent. As incomes increase, Chinese
consumers' demand for animal protein will continue to grow.

Chinese consumers prefer chicken wings, drumsticks, leg quarters, paws
and gizzard. Broiler necks are also becoming popular. According to the
trade, 50 percent of drumsticks and middle-part wings are consumed at
home and the other 50 percent are consumed at restaurants or industrial
processing. The growing fast food delivery industry also consumes large
volume of drumsticks and middle-part wings. Chicken paws are mainly used
for cold dishes or soups everywhere. Most wing tips are smoked or stewed
and sold in cooked meat stores consumed as cold dishes, especially in
restaurants along streets where diners eat them with beer.

For spent layer hens, family consumption, bought directly from wet
markets for their own cooking, accounts for 20 percent. Cooked
processing distributed through cooked meat stores, supermarkets and
restaurants accounts for the other 80 percent for low-end consumers.
Almost all spent breeder hens are consumed by families, which are sold
live and slaughtered on the spot at wet markets.

In general, Chinese consumers do not like breast meat due to its plain,
dry taste. Family and restaurant direct cooking consumes 30 percent of
China's breast meat supplies. Cooked processing by plants into meatballs
and sausages for delivery to super markets, fast food chain restaurants
and canteens, or for export, consumes the other 70 percent.

# Poultry Product Trade

## China's broiler imports for 2006 forecast to rebound 14 percent to 320,000 MT, the U.S. still the largest supplier, but Brazil challenges

China's broiler meat imports for 2006 are forecast at 320,000 MT, a 14
percent rebound from the estimated 280,000 MT in 2005, but still below
the 2003, pre-AI records. The pace of import recovery in 2006 is
forecast smaller compared to 2005 due to domestic production increases
and new import regulations such as cancellation of processing permits
and the unified chicken paw health standard for China and Hong Kong. A
new regulation requiring pre-inspection in Hong Kong on meat
transshipments to China\--effective last November\--is another reason
supporting a smaller recovery. The broiler import numbers in the PSD
table exclude China's chicken paw imports from world and Hong Kong
re-exports to China, and also exclude U.S. spent hens to China.

Broiler imports in 2005 are forecast to recover only 25 percent instead
of the previous forecast of 52 percent in the semi-annual report
(CH5011), due to policy changes, domestic production increases and
international higher prices. During January-June 2005, China's import
unit price increased 1.7 percent on average. According to U.S. data,
average unit price for broiler exports to China increased 9.5 percent.
Although Hong Kong re-export unit prices decreased, the additional cost
of pre-inspection reduced profits. According to the trade, China will
send a poultry purchasing delegation to the U.S. after President Hu
Jintao's visit to the U.S. in September 2005.

The United States remains the largest supplier of poultry products to
China. However, the U.S. market share has dropped from 96 percent to 46
percent for direct shipments from 2003 to the first half of 2005. During
the period that China banned U.S. poultry due to HPAI in 2004, Brazil's
exports to China increased over 600 percent, and Argentina's exports
increased over 900 percent. Brazil and Argentina shipments continue to
limit the recovery of U.S. trade due to competitive prices and quality.

The Automatic Import Registration Form (ARF), issued by the Ministry of
Commerce (MOFCOM), continues to function as an import volume management
system. Although one application for an ARF can now total 2,000
MT\--compared with 200-300 MT in the past\--total imports are monitored
and controlled by MOFCOM based on importers' previous year import
record.

China's poultry income tariff remains the same as indicated in the
previous semi-annual report CH5011.

## Chicken paw imports account for half of China's total poultry imports 

Despite domestic production increase, China's chicken paw supplies lag
behind strong consumer demand. As a result, chicken paw imports account
for about half of China's total poultry imports. In the first half of
2005, chicken paw imports accounted for 46 and 62 percent respectively
of China's total poultry imports directly and indirectly through Hong
Kong. This pattern will continue into the next couple of years as long
as the demand and supply gap exists.

## Unified chicken paw health standard has impacted U.S. exports

Effective April 30, 2005, China unified the chicken paws standard for
Hong Kong and the Mainland as an "edible product". Previously, chicken
paws exported to Hong Kong could be certified as "not fit for human
consumption". As the result of the new standard, the U.S. Department of
Agriculture's (USDA) Food Safety and Inspection Service (FSIS) must
certify ante and post mortem inspection. The trade indicates this new
requirement is impacting the volume and price of U.S. chicken paw
exports to China because some U.S. plants have decided the investment is
too high to change production lines in light of the regulatory
uncertainty of China's import policies.

## China's cancellation of processing permits will result in more approved 3^rd^ country poultry processing plants

As of July 1, 2005, China stopped issuing import quarantine permit (IQP)
for processing meat. Plants must have applied before July 1 to China's
quarantine authority, AQSIQ, to get audited and registered as a plant
eligible for exports. An IQP that had already been issued before July 1
is valid until the end of 2005. The United States is the only country
where China accepts the entire inspection system of USDA/FSIS without
requiring a plant-by-plant certification (as it does for all other
countries). As long as the U.S. plants comply with FSIS requirements,
they are eligible to export to China for the retail market.

According to the trade, not many poultry plants from other countries
have been registered since it takes time for AQSIQ to audit the
applicants one by one. But once registered, plants in these other
countries will have the same privileges as U.S. plants to sell broiler
products directly to China's retail market. This will reduce gray trade
through Hong Kong and encourage direct shipments because broiler
products from other countries were often smuggled into China through
Hong Kong under a forged U.S. health certificate. The growing list of
third-country plants will translate into tougher U.S. competition in the
retail sector in the future. (See the list of eligible exporters in FAS
Beijing's livestock annual report CH5063).

## Pre-inspection law and other measures "encourage" direct shipments to China 

As of November 1, 2004, all meat re-exported to China through Hong Kong
should be pre-inspected by the China Hong Kong Inspection Company (CIC).
Containers must be moved from the entry port to the CIC inspection place
within 2 hours to avoid repacking or re-labeling for smuggling. The
inspection cost for one container is about \$500. The extra cost and
burden has shifted direct trade up the coast to mainland ports.
According to Hong Kong and China data, poultry re-exports to China
through Hong Kong decreased 38.5 percent, while direct shipments
increased 26.2 percent from January to June 2005. This trend will
continue into the future.

According to the poultry trade in Panyu, Guangdong, the largest frozen
meat terminal for imported meat through Hong Kong, traders report that
the local government also collects an additional 4 percent of
value-added tax (VAT). This will make imports less competitive and
further shift meat imports away from Hong Kong to direct shipments to
China.

Effective May 2005, China no longer requires that FSIS meat export
health certificates include the name of the mainland consignee for
transshipments from Hong Kong to China. So, Hong Kong traders can be
eligible consignees. They can import and stock poultry meat in Hong Kong
first and later look for a mainland importer. Though this change makes
Hong Kong re-exports more convenient, the general trend favors trade
shifting to direct shipments as it becomes less and less profitable to
ship through Hong Kong.

## Comparing U.S. and Brazilian poultry products 

Chinese wholesale distributors for wet markets, restaurants and
supermarkets like fine, ready-cut chicken wings (middle part),
drumsticks, paws, wingtips and gizzards. Large food processing companies
prefer bone-in broiler meat cuts, mainly whole legs, leg quarters,
drumsticks and whole wings, which are suitable for de-boning and further
processing.

Domestic traders prefer the following characteristics when buying
poultry products:

*Moisture:* Moisture not exceeds 8 percent. This is a maximum
requirement based on China's national standard. The trade reports that
recent U.S. poultry products are higher moisture compared with Brazilian
products due to different production methods. U.S. plants use ice
cooling, while Brazilian plants use air-cooling after slaughter.

*Size of paws:* Large cities and wealthier consumers like U.S.
jumbo-sized chicken paws because of more meat and because of price.
Brazilian paws, normally 25 grams each, are medium-sized, though well
accepted by lower income consumers.

###### Packaging: Domestic traders prefer Brazil's packing by hand in smaller bags (for example, 5 kg x 3 bags in a larger bag for wings) compared with U.S. layer packing by machinery in large bags, because smaller packing are easier for super markets to use. 

*Prices:* Most consumers are price sensitive. Lower pricing is a main
reason Brazil and Argentina's poultry have cut into the U.S. market
share.

*Color:* Lighter color from both countries is preferable.

## China's broiler meat exports for 2006 forecast to increase 20 percent to 360,000 MT 

China's broiler meat exports are forecast to increase 20 percent to
360,000 MT from estimated 250,000 MT in 2005. The pace of increase is
forecast smaller than that of 2005, because a stronger RMB against the
US dollar will make China less export competitive. Asia will continue to
be China's main export market. In the first half of 2005, China's
exports to Japan accounted for 52.8 percent and to Hong Kong accounted
for 27.1 percent. This will continue in 2006 unless there is another
HPAI outbreak in China.

The European Union (EU) suspended imports of China's meat products in
early 2002 due to chemical residues and diseases. Although it lifted its
ban on China's animal products in 2004, its poultry ban has remained.
Cooked poultry has made some progress with a couple of EU's audits, but
EU's market has not yet reopened.

Due to the challenges of gaining market access for frozen poultry, China
is focusing its export strategy on cooked poultry. The Chinese poultry
industry, primarily due to foreign direct investment, has invested
heavily the last couple of years on production capacity and machinery.
This capitalization has enabled China to shift production from fresh to
cooked broiler meat products for export markets.

## USDA finishes a proposed rule to include China's processing (not slaughter) part as an eligible country to export cooked poultry to the U.S. 

USDA's proposed rule would permit the export to the U.S. of Chinese
cooked poultry processed from only raw material imported from approved
countries. The rule would add China to the list of countries eligible to
export cooked poultry to the U.S. A number of regulatory steps remain
before the proposed rule is published in the Federal Register for public
comment. If passed, China could export cooked poultry to the U.S., but
the processors could only use imported materials from approved slaughter
facilities.

USDA completed an official audit of China's poultry slaughter process in
August 2005. The next step is to draft the proposed rule and begin the
regulatory review. This rule would permit China to export poultry
slaughtered and processed in China.

Chinese officials report they intend to approve only 5-10 of the best
processing plants to export cooked poultry to the U.S. when the
processing rule is published. The largest has a slaughter capacity of
100 million birds a year and 40 percent are for export, mainly to Japan.
While the selected plants could feasibly import raw materials for
processing, then re-export to the U.S.; the additional costs of
transportation and quarantine inspection will reduce their profit
margins. The plants intending to import raw material are interested in
half carcass or bone-in parts.

# Poultry Egg Production 

## Poultry egg production in 2006 forecast to grow 5.5 percent to 30.17 million MT 

China's egg production in 2006 is forecast at a record 30 million MT, a
5.5-percent increase from the estimated 28.6 percent in 2005. The pace
of growth for 2005 remains the same as forecast in the previous
semi-annual poultry report (CH5011). Eighty percent of China's total
poultry egg production is chicken eggs.

A new trend in layer cultivation is large commercial chicken egg
companies shifting location towards the key grain feed production areas
such as the Northeast and North China. Layer cultivation in South and
East China has been shrinking due to the higher cost of feed grain and
soy meals. Ninety percent of large commercial layer companies in Beijing
and Shanghai have abandoned production due to high labor costs and
strict environment protection requirements. Other non-feed grain areas
like Central-West China have limited production. As a result, increased
shipments of fresh eggs will move from the North to the South during
2006.

From January to June 2005, China's average wholesale chicken egg prices
increased 13 percent from \$0.60 to \$0.68 over the same period of 2004.
Average retails prices increased 10 percent from U\$0.74 to \$0.81.
Higher grains prices from last fall to the second quarter of 2005 pushed
egg prices up. Although feed prices are forecast steady in the second
half of 2005, poultry egg prices may still go up during the traditional
Chinese Moon Festival in September and the October national holidays not
only because consumption up but also because layers normally reduce
production in the last quarter of the year.

China is a net poultry egg exporter. Most of its exports are fresh
chicken eggs. Its egg exports in 2006 are forecast to rebound 2 percent
to 1.22 billion pieces from estimated 1.2 billion pieces in 2005 due to
production recovery after AI. Hong Kong and Macao markets account for 90
percent of China's total egg exports. However, increased US and Germany
egg exports to Hong Kong have cut into China's market share.

# PSD Table -- Broiler Meat 

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

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

  **Commodity**    **Poultry,                                    (1000                           
                   Meat,                                         MT)(MIL                         
                   Broiler**                                     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**                                                                                        

  Inventory        0            0          0          0          0          0          (MIL      
  (Reference)                                                                          HEAD)     

  Slaughter        7304         7400       7400       7550       0          7770       (MIL      
  (Reference)                                                                          HEAD)     

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

  Production       9860         9998       9990       10200      0          10500      (1000 MT) 

  Whole, Imports   0            0          0          0          0          0          (1000 MT) 

  Parts, Imports   180          223        450        280        0          320        (1000 MT) 

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

  Other Imports    0            0          0          0          0          0          (1000 MT) 

  TOTAL Imports    180          223        450        280        0          320        (1000 MT) 

  TOTAL SUPPLY     10040        10221      10440      10480      0          10820      (1000 MT) 

  Whole, Exports   0            0          0          0          0          0          (1000 MT) 

  Parts, Exports   241          241        250        300        0          360        (1000 MT) 

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

  Other Exports    0            0          0          0          0          0          (1000 MT) 

  TOTAL Exports    241          241        250        300        0          360        (1000 MT) 

  Human            9799         9980       10190      10180      0          10460      (1000 MT) 
  Consumption                                                                                    

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

  Total Dom.       9799         9980       10190      10180      0          10460      (1000 MT) 
  Consumption                                                                                    

  TOTAL Use        10040        10221      10440      10480      0          10820      (1000 MT) 

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

  TOTAL            10040        10221      10440      10480      0          10820      (1000 MT) 
  DISTRIBUTION                                                                                   

  Calendar Yr.     73           90         125        166        0          190        (1000 MT) 
  Imp. From U.S.                                                                                 
  ---------------- ------------ ---------- ---------- ---------- ---------- ---------- --------- -------

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

  UDG: Broiler                                                                                   
  Meat,                                                                                          

  Year To Date:                                                                                  
  January -                                                                                      
  June                                                                                           

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

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

  World         T          238,840        122,002    153,918    100        100        100        26.16

  United States T          237,138        71,527     70,956     99.29      58.63      46.1       -0.8

  Brazil        T          \-             20,656     68,961     0          16.93      44.8       233.85

  Argentina     T          327            28,790     12,067     0.14       23.6       7.84       -58.09

  Canada        T          1,241          775        1,404      0.52       0.64       0.91       81.12

  France        T          \-             \-         264        0          0          0.17       0

  Chile         T          \-             \-         144        0          0          0.09       0

  Thailand      T          26             173        122        0.01       0.14       0.08       -29.63

  Other         T          108            81         \-         0.05       0.07       0          -100
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

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

  UDG: Broiler                                                                                   
  Meat,                                                                                          

  Year Ending:                                                                                   
  December                                                                                       

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

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

  World         T          498,897        565,531    180,071    100        100        100        -68.16

  United States T          471,917        545,398    75,645     94.59      96.44      42.01      -86.13

  Brazil        T          200            8,397      60,810     0.04       1.48       33.77      624.19

  Argentina     T          4,149          4,236      42,587     0.83       0.75       23.65      905.24

  Canada        T          2,045          4,576      775        0.41       0.81       0.43       -83.07

  Thailand      T          5,473          2,535      173        1.1        0.45       0.1        -93.19

  United        T          21             50         50         0          0.01       0.03       0.37
  Kingdom                                                                                        

  Malaysia      T          858            31         7          0.17       0.01       0          -78.11

  France        T          1,714          \-         \-         0.34       0          0          0

  Other         T          12,520         308        24         2.51       0.05       0.01       -80
  ------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

Source: Global Trade Atlas (GTA)

+-----+---------------+---+--------------+-----------------+------------+
| *   |               |   |              |                 |            |
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|     |               |   |              |                 |            |
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+-----+---------------+---+--------------+-----------------+------------+
|     |               |   |              |                 | **%        |
|     |               |   |              |                 | Change**   |
+-----+---------------+---+--------------+-----------------+------------+
| **  | **Country**   |   | **- KG -     | **- KG - 2005** | **- 05/04  |
| Ran |               |   | 2004**       |                 | -**        |
| k** |               |   |              |                 |            |
+-----+---------------+---+--------------+-----------------+------------+
| 0   | \--World\--   | 0 | 0            | 70,729,260      | 0          |
+-----+---------------+---+--------------+-----------------+------------+
| 1   | United States | 0 | 0            | 32,671,824      | 0          |
+-----+---------------+---+--------------+-----------------+------------+
| 2   | Brazil        | 0 | 0            | 26,271,786      | 0          |
+-----+---------------+---+--------------+-----------------+------------+
| 3   | Argentina     | 0 | 0            | 11,618,580      | 0          |
+-----+---------------+---+--------------+-----------------+------------+
| 4   | Chile         | 0 | 0            | 144,090         | 0          |
+-----+---------------+---+--------------+-----------------+------------+
| 5   | Thailand      | 0 | 0            | 22,980          | 0          |
+-----+---------------+---+--------------+-----------------+------------+
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+-----+---------------+---+--------------+-----------------+------------+

+---+--------------+---------+--------------+-----------+----------+
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+---+--------------+---------+--------------+-----------+----------+
|   |              |         |              |           | **%      |
|   |              |         |              |           | Change** |
+---+--------------+---------+--------------+-----------+----------+
| * | **Origin**   | **-     | **- KG -     | **- KG -  | **-      |
| * |              | KG -    | 2004**       | 2005**    | 05/04    |
| R |              | 2003**  |              |           | -**      |
| a |              |         |              |           |          |
| n |              |         |              |           |          |
| k |              |         |              |           |          |
| * |              |         |              |           |          |
| * |              |         |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 0 | -The World-  | 238,    | 71,257,248   | 4         | -38.51   |
|   |              | 163,035 |              | 3,818,082 |          |
+---+--------------+---------+--------------+-----------+----------+
| 1 | Brazil       | 47,     | 18,456,161   | 1         | 3.93     |
|   |              | 261,206 |              | 9,182,135 |          |
+---+--------------+---------+--------------+-----------+----------+
| 2 | United       | 140,    | 33,255,162   | 1         | -43.62   |
|   | States       | 092,614 |              | 8,747,701 |          |
+---+--------------+---------+--------------+-----------+----------+
| 3 | Chile        | 3,      | 1,560,603    | 1,920,258 | 23.05    |
|   |              | 836,890 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 4 | Turkey       | 6,      | 2,738,420    | 1,203,220 | -56.06   |
|   |              | 212,688 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 5 | Argentina    | 1,      | 4,602,036    | 1,190,242 | -74.14   |
|   |              | 852,678 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 6 | Iran         | 3,      | 1,628,040    | 459,000   | -71.81   |
|   |              | 851,030 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 7 | France       | 4,      | 1,901,929    | 300,025   | -84.23   |
|   |              | 076,640 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 8 | United       | 6,      | 1,962,975    | 146,850   | -92.52   |
|   | Kingdom      | 067,164 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 9 | Canada       | 5,      | 1,973,836    | 128,286   | -93.5    |
|   |              | 087,353 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
| 1 | Other        | 19,     | 3,178,086    | 540,365   | -83      |
| 0 |              | 824,772 |              |           |          |
+---+--------------+---------+--------------+-----------+----------+
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+---+--------------+---------+--------------+-----------+----------+

+---+----------------+------------+-------------+----------+----------+
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+---+----------------+------------+-------------+----------+----------+
|   |                |            |             |          | **%      |
|   |                |            |             |          | Change** |
+---+----------------+------------+-------------+----------+----------+
| * | **Origin**     | **- KG -   | **- KG -    | **- KG - | **-      |
| * |                | 2002**     | 2003**      | 2004**   | 04/03    |
| R |                |            |             |          | -**      |
| a |                |            |             |          |          |
| n |                |            |             |          |          |
| k |                |            |             |          |          |
| * |                |            |             |          |          |
| * |                |            |             |          |          |
+---+----------------+------------+-------------+----------+----------+
| 0 | -The World-    | 5          | 503,312,723 | 104      | -79.21   |
|   |                | 57,256,277 |             | ,652,991 |          |
+---+----------------+------------+-------------+----------+----------+
| 1 | United States  | 3          | 281,922,735 | 44       | -84.17   |
|   |                | 76,980,472 |             | ,638,151 |          |
+---+----------------+------------+-------------+----------+----------+
| 2 | Brazil         | 78,939,343 | 117,356,437 | 32       | -72.3    |
|   |                |            |             | ,505,761 |          |
+---+----------------+------------+-------------+----------+----------+
| 3 | Argentina      | 6,617,686  | 4,884,534   | 7        | 50.91    |
|   |                |            |             | ,371,268 |          |
+---+----------------+------------+-------------+----------+----------+
| 4 | Turkey         | 10,590,182 | 15,322,199  | 3        | -74.92   |
|   |                |            |             | ,842,518 |          |
+---+----------------+------------+-------------+----------+----------+
| 5 | Chile          | 4,945,208  | 7,497,042   | 3        | -55.93   |
|   |                |            |             | ,304,210 |          |
+---+----------------+------------+-------------+----------+----------+
| 6 | United Kingdom | 12,684,688 | 11,287,133  | 2        | -78.43   |
|   |                |            |             | ,434,781 |          |
+---+----------------+------------+-------------+----------+----------+
| 7 | Canada         | 14,939,617 | 9,092,327   | 2        | -74.99   |
|   |                |            |             | ,273,886 |          |
+---+----------------+------------+-------------+----------+----------+
| 8 | Iran           | 7,023,187  | 9,640,580   | 2        | -76.55   |
|   |                |            |             | ,260,359 |          |
+---+----------------+------------+-------------+----------+----------+
| 9 | France         | 5,246,052  | 8,483,290   | 2        | -75.64   |
|   |                |            |             | ,066,606 |          |
+---+----------------+------------+-------------+----------+----------+
| 1 | Thailand       | 9,401,983  | 19,649,285  | 957,385  | -95.13   |
| 0 |                |            |             |          |          |
+---+----------------+------------+-------------+----------+----------+
| 1 | Other          | 29,887,859 | 18,177,161  | 2        |          |
| 1 |                |            |             | ,998,066 |          |
+---+----------------+------------+-------------+----------+----------+
| S |                |            |             |          |          |
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| g |                |            |             |          |          |
| K |                |            |             |          |          |
| o |                |            |             |          |          |
| n |                |            |             |          |          |
| g |                |            |             |          |          |
| C |                |            |             |          |          |
| e |                |            |             |          |          |
| n |                |            |             |          |          |
| s |                |            |             |          |          |
| u |                |            |             |          |          |
| s |                |            |             |          |          |
| a |                |            |             |          |          |
| n |                |            |             |          |          |
| d |                |            |             |          |          |
| S |                |            |             |          |          |
| t |                |            |             |          |          |
| a |                |            |             |          |          |
| t |                |            |             |          |          |
| i |                |            |             |          |          |
| s |                |            |             |          |          |
| t |                |            |             |          |          |
| i |                |            |             |          |          |
| c |                |            |             |          |          |
| s |                |            |             |          |          |
| D |                |            |             |          |          |
| e |                |            |             |          |          |
| p |                |            |             |          |          |
| a |                |            |             |          |          |
| r |                |            |             |          |          |
| t |                |            |             |          |          |
| m |                |            |             |          |          |
| e |                |            |             |          |          |
| n |                |            |             |          |          |
| t |                |            |             |          |          |
+---+----------------+------------+-------------+----------+----------+

+----+----------------+------------+------------+-----------+--------+
| *  |                |            |            |           |        |
| *W |                |            |            |           |        |
| or |                |            |            |           |        |
| ld |                |            |            |           |        |
| T  |                |            |            |           |        |
| ra |                |            |            |           |        |
| de |                |            |            |           |        |
| A  |                |            |            |           |        |
| tl |                |            |            |           |        |
| as |                |            |            |           |        |
| ** |                |            |            |           |        |
|    |                |            |            |           |        |
| *  |                |            |            |           |        |
| *P |                |            |            |           |        |
| ro |                |            |            |           |        |
| du |                |            |            |           |        |
| ct |                |            |            |           |        |
| G  |                |            |            |           |        |
| ro |                |            |            |           |        |
| up |                |            |            |           |        |
| ** |                |            |            |           |        |
|    |                |            |            |           |        |
| ** |                |            |            |           |        |
| HK |                |            |            |           |        |
| C  |                |            |            |           |        |
| hi |                |            |            |           |        |
| ck |                |            |            |           |        |
| en |                |            |            |           |        |
| P  |                |            |            |           |        |
| aw |                |            |            |           |        |
| 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-    | 1          | 37,271,502 | 2         | -26.26 |
|    |                | 24,734,785 |            | 7,482,729 |        |
+----+----------------+------------+------------+-----------+--------+
| 1  | United States  | 83,800,734 | 17,526,416 | 1         | -25.37 |
|    |                |            |            | 3,079,119 |        |
+----+----------------+------------+------------+-----------+--------+
| 2  | Brazil         | 18,291,781 | 8,649,499  | 1         | 18.15  |
|    |                |            |            | 0,219,685 |        |
+----+----------------+------------+------------+-----------+--------+
| 3  | Argentina      | 1,214,033  | 4,047,528  | 1,188,742 | -70.63 |
+----+----------------+------------+------------+-----------+--------+
| 4  | Chile          | 2,400,020  | 672,487    | 1,176,258 | 74.91  |
+----+----------------+------------+------------+-----------+--------+
| 5  | Turkey         | 4,636,714  | 2,362,540  | 1,017,320 | -56.94 |
+----+----------------+------------+------------+-----------+--------+
| 6  | Iran           | 3,851,030  | 1,601,040  | 459,000   | -71.33 |
+----+----------------+------------+------------+-----------+--------+
| 7  | Other          | 10,540,473 | 2,411,992  | 342,605   | -85.8  |
+----+----------------+------------+------------+-----------+--------+
| 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 |              |            |                |           |       |
| ** |              |            |                |           |       |
|    |              |            |                |           |       |
| ** |              |            |                |           |       |
| HK |              |            |                |           |       |
| C  |              |            |                |           |       |
| hi |              |            |                |           |       |
| ck |              |            |                |           |       |
| en |              |            |                |           |       |
| P  |              |            |                |           |       |
| aw |              |            |                |           |       |
| Re |              |            |                |           |       |
| -E |              |            |                |           |       |
| xp |              |            |                |           |       |
| or |              |            |                |           |       |
| ts |              |            |                |           |       |
| to |              |            |                |           |       |
| C  |              |            |                |           |       |
| hi |              |            |                |           |       |
| na |              |            |                |           |       |
| ** |              |            |                |           |       |
|    |              |            |                |           |       |
| ** |              |            |                |           |       |
| Qu |              |            |                |           |       |
| an |              |            |                |           |       |
| ti |              |            |                |           |       |
| ty |              |            |                |           |       |
| ** |              |            |                |           |       |
|    |              |            |                |           |       |
| *  |              |            |                |           |       |
| *J |              |            |                |           |       |
| an |              |            |                |           |       |
| ua |              |            |                |           |       |
| ry |              |            |                |           |       |
|  - |              |            |                |           |       |
| De |              |            |                |           |       |
| ce |              |            |                |           |       |
| mb |              |            |                |           |       |
| er |              |            |                |           |       |
| ** |              |            |                |           |       |
+----+--------------+------------+----------------+-----------+-------+
|    |              |            |                |           | **%   |
|    |              |            |                |           | Cha   |
|    |              |            |                |           | nge** |
+----+--------------+------------+----------------+-----------+-------+
| ** | **Origin**   | **- KG -   | **- KG -       | **- KG -  | **-   |
| Ra |              | 2002**     | 2003**         | 2004**    | 04/03 |
| nk |              |            |                |           | -**   |
| ** |              |            |                |           |       |
+----+--------------+------------+----------------+-----------+-------+
| 0  | -The World-  | 2          | 260,845,402    | 5         | -79.1 |
|    |              | 68,048,299 |                | 4,514,844 |       |
+----+--------------+------------+----------------+-----------+-------+
| 1  | United       | 1          | 170,186,998    | 2         | -     |
|    | States       | 89,701,914 |                | 3,326,770 | 86.29 |
+----+--------------+------------+----------------+-----------+-------+
| 2  | Brazil       | 34,572,702 | 42,484,331     | 1         | -     |
|    |              |            |                | 5,517,726 | 63.47 |
+----+--------------+------------+----------------+-----------+-------+
| 3  | Argentina    | 5,898,607  | 3,045,516      | 6,234,312 | 104.7 |
+----+--------------+------------+----------------+-----------+-------+
| 4  | Turkey       | 9,598,206  | 11,500,961     | 3,096,118 | -     |
|    |              |            |                |           | 73.08 |
+----+--------------+------------+----------------+-----------+-------+
| 5  | Iran         | 6,996,500  | 9,640,580      | 2,233,359 | -     |
|    |              |            |                |           | 76.83 |
+----+--------------+------------+----------------+-----------+-------+
| 6  | Chile        | 3,139,355  | 4,560,212      | 1,212,967 | -73.4 |
+----+--------------+------------+----------------+-----------+-------+
| 7  | Canada       | 5,804,520  | 2,117,823      | 828,124   | -60.9 |
+----+--------------+------------+----------------+-----------+-------+
| 8  | Thailand     | 5,451,439  | 11,616,495     | 662,136   | -94.3 |
+----+--------------+------------+----------------+-----------+-------+
| 9  | Denmark      | 91,455     | 104,010        | 387,150   | 2     |
|    |              |            |                |           | 72.22 |
+----+--------------+------------+----------------+-----------+-------+
| 10 | United       | 1,064,675  | 575,525        | 292,792   | -     |
|    | Kingdom      |            |                |           | 49.13 |
+----+--------------+------------+----------------+-----------+-------+
| 11 | Malaysia     | 1,210,543  | 1,442,661      | 386,556   | -     |
|    |              |            |                |           | 73.21 |
+----+--------------+------------+----------------+-----------+-------+
| 12 | Other        | 4,518,383  | 3,570,290      | 336,834   | -     |
|    |              |            |                |           | 90.57 |
+----+--------------+------------+----------------+-----------+-------+
| 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: Broiler                                                                                      
  Meat,                                                                                             

  Year To Date:                                                                                     
  January - June                                                                                    

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

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

  World            T          204,088        85,044     148,450    100        100        100        74.56

  Japan            T          119,764        45,982     78,427     58.68      54.07      52.83      70.56

  Hong Kong        T          21,595         19,968     40,262     10.58      23.48      27.12      101.63

  Somalia          T          \-             576        3,526      0          0.68       2.38       512.03

  Albania          T          171            138        3,339      0.08       0.16       2.25       2315.46

  Korea South      T          428            428        3,254      0.21       0.5        2.19       660.69

  Korea North      T          \-             1,166      2,878      0          1.37       1.94       146.78

  Moldova          T          150            475        2,412      0.07       0.56       1.62       407.72

  Bahrain          T          1,623          1,105      2,094      0.8        1.3        1.41       89.5

  United States    T          62             230        1,689      0.03       0.27       1.14       634.99

  Iraq             T          \-             807        1,011      0          0.95       0.68       25.38

  Armenia          T          101            \-         1,009      0.05       0          0.68       0

  Azerbaijan       T          \-             252        923        0          0.3        0.62       266.13

  Georgia          T          25             431        803        0.01       0.51       0.54       86.62

  Macao            T          279            414        777        0.14       0.49       0.52       87.48

  Singapore        T          4,358          846        770        2.14       0.99       0.52       -8.93

  Papua New Guinea T          63             700        637        0.03       0.82       0.43       -8.88

  Lithuania        T          \-             \-         472        0          0          0.32       0

  Maldives         T          93             132        374        0.05       0.16       0.25       183.58

  Netherlands      T          14             283        358        0.01       0.33       0.24       26.48
  Antilles                                                                                          

  Turkey           T          0              254        354        0          0.3        0.24       39.36

  Russia           T          15475          1097       354        7.58       1.29       0.24       -67.72

  Other            T          39,887         9,760      2,727      19.54      11.48      1.84       -83.97
  ---------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

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

  UDG: Broiler                                                                                      
  Meat,                                                                                             

  Year Ending:                                                                                      
  December                                                                                          

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

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

  World            T          438,442        387,909    240,960    100        100        100        -37.88

  Japan            T          266,797        215,781    136,516    60.85      55.63      56.66      -36.73

  Hong Kong        T          39,162         46,995     61,868     8.93       12.11      25.68      31.65

  Saudi Arabia     T          34,913         42,008     4,799      7.96       10.83      1.99       -88.58

  Albania          T          760            223        4,273      0.17       0.06       1.77       1818.79

  Korea North      T          251            5,715      3,835      0.06       1.47       1.59       -32.89

  Somalia          T          \-             \-         3,680      0          0          1.53       0

  Bahrain          T          2,480          2,586      2,825      0.57       0.67       1.17       9.24

  Korea South      T          1,056          1,431      1,989      0.24       0.37       0.83       38.99

  Russia           T          32,027         25,337     1,519      7.3        6.53       0.63       -94

  Iraq             T          \-             50         1,465      0          0.01       0.61       2828.31

  Singapore        T          10,491         6,662      1,442      2.39       1.72       0.6        -78.36

  Kazakhstan       T          \-             \-         1,376      0          0          0.57       0

  Netherlands      T          2,365          1,455      1,239      0.54       0.38       0.51       -14.83

  United States    T          83             151        1,197      0.02       0.04       0.5        692.66

  Papua New Guinea T          69             466        1,105      0.02       0.12       0.46       137.35

  South Africa     T          1,795          10,060     1,082      0.41       2.59       0.45       -89.25

  Macao            T          334            551        1,051      0.08       0.14       0.44       90.66

  Moldova          T          527            478        1,029      0.12       0.12       0.43       115.5

  Georgia          T          95             577        835        0.02       0.15       0.35       44.79

  Azerbaijan       T          202            50         739        0.05       0.01       0.31       1371.88

  Jordan           T          212            550        650        0.05       0.14       0.27       18.14

  Netherlands      T          \-             195        642        0          0.05       0.27       229.26
  Antilles                                                                                          

  Other            T          44,823         26,588     5,804      10.22      6.85       2.41       -64.28
  ---------------- ---------- -------------- ---------- ---------- ---------- ---------- ---------- ---------------

  ---------- ------------- ------------- ------------------- ------------- ----------
                                         **World Trade                     
                                         Atlas**                           

                                         **Product Group**                 

                                         **China Fresh Egg                 
                                         Exports**                         

                                         **Quantity**                      

  ** **      ** **         ** **         **January - June**  ** **         ** **

                                                                           **%
                                                                           Change**

  **Rank**   **Country**   **- N -       **- N - 2004**      **- N -       **- 05/04
                           2003**                            2005**        -**

  0          \--World\--   757,097,992   769,831,797         585,211,619   -23.98

  1          Hong Kong     609,732,546   640,753,988         474,802,607   -25.9

  2          Macau         45,269,700    47,194,922          52,341,800    10.91

  3          United States 29,499,600    13,648,520          13,538,520    -0.81

  4          Korea, South  4,814,220     3,571,836           8,832,844     147.29

  5          Malaysia      6,922,090     5,816,100           8,276,240     42.3

  6          Canada        8,529,840     8,456,280           7,810,372     -7.64

  7          Singapore     7,853,072     8,091,248           7,275,900     -10.08

  8          Japan         34,127,548    31,707,484          4,420,316     -86.06

  9          Oman          6,447,600     7,407,000           2,188,800     -70.45

  10         Angola        \-            \-                  1,313,280     0

  11         Kyrgyzstan    1,557,712     \-                  1,080,000     0

  12         Indonesia     646,560       1,592,400           774,240       -51.38

  13         Other         1,697,504     1,592,019           2,556,700     60.59

  Source of                                                                
  data:                                                                    
  China                                                                    
  Customs                                                                  
  ---------- ------------- ------------- ------------------- ------------- ----------

  ---------- ------------- --------------- ------------------- --------------- ----------
                                           **World Trade                       
                                           Atlas**                             

                                           **Product Group**                   

                                           **China Fresh Egg                   
                                           Exports**                           

                                           **Quantity**                        

  ** **      ** **         ** **           **January -         ** **           ** **
                                           December**                          

                                                                               **%
                                                                               Change**

  **Rank**   **Country**   **- N - 2002**  **- N - 2003**      **- N - 2004**  **- 04/03
                                                                               -**

  0          \--World\--   1,258,916,420   1,570,545,939       1,392,587,749   -11.33

  1          Hong Kong     1,018,253,573   1,278,687,889       1,098,311,558   -14.11

  2          Macau         72,305,353      94,546,040          101,676,396     7.54

  3          Japan         55,626,057      74,353,900          68,479,096      -7.9

  4          United States 42,074,728      43,019,140          30,087,452      -30.06

  5          Malaysia      12,172,998      13,611,506          25,316,484      85.99

  6          Singapore     17,042,380      16,302,372          20,586,088      26.28

  7          Canada        18,363,984      16,140,284          16,997,608      5.31

  8          Korea, South  8,457,552       9,013,484           10,192,804      13.08

  9          Oman          7,614,960       14,765,040          7,407,000       -49.83

  10         Netherlands   813,024         549,504             3,732,576       579.26

  11         Kyrgyzstan    1,023,000       3,760,432           3,395,160       -9.71

  12         Angola        \-              437,760             2,626,560       500

  13         Indonesia     1,168,940       1,687,614           2,073,840       22.89

  14         Other         3,999,871       3,670,974           1,705,127       -53.55

  Source of                                                                    
  data:                                                                        
  China                                                                        
  Customs                                                                      
  ---------- ------------- --------------- ------------------- --------------- ----------