""

Required Report - public distribution

**Date:** 9/19/2003

**GAIN Report Number:** CH3119

**China, Peoples Republic of**

**Poultry and Products**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)LaVerne Brabant

U.S. Embassy

**Prepared by:**

Casey E. Bean/Zhang Jianping

**Report Highlights:**

China\'s poultry imports during 2003 and 2004 are forecast to fall from
last year due to SARS, quarantine/certification requirements and the
import ban on 7 U.S. States due to Avian Influenza. Over the next couple
of years, China's poultry industry is not forecast to compete with U.S.
frozen broiler cuts in key export markets. However, China will increase
exports of highly processed cuts and cooked products. China\'s poultry
meat production during 2004 is forecast at 10.1 million MT, two percent
above this year\'s level. The output increase is due to a recovery in
consumption following the end of SARS coupled with expectations that the
Japanese and EU export markets may reopen.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Situation and Outlook: SARS Outbreak in 2003 Negatively Impacts China's
Poultry Market
3](#situation-and-outlook-sars-outbreak-in-2003-negatively-impacts-chinas-poultry-market)

[Poultry Meat 3](#poultry-meat)

[China's poultry production growth due to domestic breed chickens and
non-chicken poultry as the industry strengthens quality to meet tougher
quarantine and quality requirements.
3](#chinas-poultry-production-growth-due-to-domestic-breed-chickens-and-non-chicken-poultry-as-the-industry-strengthens-quality-to-meet-tougher-quarantine-and-quality-requirements.)

[Consumption of highly processed products is gaining popularity, and
consumer preference for domestic breed broiler meat is spreading to
Northern China.
4](#consumption-of-highly-processed-products-is-gaining-popularity-and-consumer-preference-for-domestic-breed-broiler-meat-is-spreading-to-northern-china.)

[Domestic-breed broiler production grows fast while western breed
broiler production goes down due to consumers' preferences
4](#domestic-breed-broiler-production-grows-fast-while-western-breed-broiler-production-falls-due-to-consumers-preferences)

[Poultry prices decrease during first half of 2003 quarters due to SARS,
but prices are forecast to rise in the second half and remain stable in
2004
5](#poultry-prices-decrease-during-first-half-of-2003-quarters-due-to-sars-but-prices-are-forecast-to-rise-in-the-second-half-and-remain-stable-in-2004)

[Trade 5](#trade)

[China\'s poultry imports in 2003 and 2004 forecast to decrease due to
SARS, more strict quarantine/certification requirements and the import
ban on 7 U.S. States due to AI
5](#chinas-poultry-imports-in-2003-and-2004-forecast-to-decrease-due-to-sars-more-strict-quarantinecertification-requirements-and-the-import-ban-on-7-u.s.-states-due-to-ai)

[In the next couple of years China will not likely compete with the
United States in key markets for frozen broiler cuts; however, China
will increase exports of cooked and highly processed cuts.
7](#in-the-next-couple-of-years-china-will-not-likely-compete-with-the-united-states-in-key-export-markets-for-frozen-broiler-cuts-however-china-will-increase-exports-of-cooked-and-highly-processed-cuts.)

[Poultry Eggs 7](#poultry-eggs)

[China continues 18th year as top egg producing country in the world.
7](#china-continues-18th-year-as-top-egg-producing-country-in-the-world.)

# Situation and Outlook: SARS Outbreak in 2003 Negatively Impacts China's Poultry Market

The United States remains the largest supplier of poultry to China. The
U.S. domination of this market is expected to continue in 2004, as other
countries cannot compete with U.S. product. Additionally, as the result
of a bilateral agreement, the United States is the only country that can
sell poultry and other meat products directly to the retail sector.
Other suppliers, such as Brazil, can only ship poultry products to
Chinese processors, not retailers.

China\'s poultry meat production during 2004 is forecast at 10.1 million
MT, two percent above this year\'s level. The increase is due to a
recovery in consumption following the end of SARS and expectations that
the Japanese and EU export markets will reopen. Poultry meat production
in the first quarter of 2003 increased six percent over the same period
of 2002 aided by low feed prices. However, the pace of production growth
for all of 2003 is forecast to slow due to the outbreak of SARS in the
second quarter. In particular, a rumor that the SARS virus originates in
poultry pushed down consumption and prices. Although SARS is over for
now, scientific research disputed the rumor and consumption has
recovered to normal levels, it will still take months for poultry
production to recover.

Japan is China\'s largest export market for poultry products, comprising
69 percent of China\'s fresh, chilled and frozen poultry exports in
2000. However, both Japan and the European Union shut down the market in
2001 because of quarantine concerns. Though the Japanese market reopened
soon after for cooked products, the Chinese industry complains that
Japan's stricter quarantine requirements narrow China's export
opportunities and increase costs. China and Japan continue to have
bilateral negotiations to narrow the differences and facilitate poultry
trade between the countries. The growth in joint venture poultry
operations has made these operations more competitive and resulted in
increased exports to Japan of U.S. poultry processed in China. Though
the amount is not clear, trade sources indicate a considerable volume of
U.S. poultry is re-exported to Japan.

Negotiations on poultry access between China and the European Union will
start soon. The Chinese industry reportedly feels optimistic about the
chances for a re-opening. However, the industry also recognizes that the
EU's additional health requirements and stricter quarantine inspections
may constrain poultry export growth. China\'s poultry export picture was
also recently impacted by Russia\'s application of an import quota.
During 2003 China is only allocated 3,100 MT, only 10 percent of China\'
total export volume to Russia in 2002. The quota application will
continue the next couple of years.

# Poultry Meat

## China's poultry production growth due to domestic breed chickens and non-chicken poultry as the industry strengthens quality to meet tougher quarantine and quality requirements. 

China\'s total poultry production in the first quarter of 2003 was 4.08
million MT, about 6 percent up over the same period in 2002. The top
three producing provinces were Shangdong, Sichuan and Guangdong. Poultry
meat accounted for about 21 percent of China\'s total meat production,
about 2 percent up from last year. The growth in 2003 is attributed to
domestic-breed chicken, ducks and geese, varieties gaining acceptance on
international market and becoming more popular here with consumers.
Ducks and geese are considered healthier food by consumers, because more
natural feed is reportedly used. Steady exports of down products and
preserved goose and duck eggs are other reasons. Overall, China's
poultry trade volume is very small compared with the magnitude of
production, and this situation will not significantly change in the
future.

Poultry product quality is improving and will continue over the next few
years due to pressure from consumers and the government to reduce
disease and the use of chemicals and drugs. Consumers are also paying
more attention to physical health, environmental protection and tighter
controls on growth of domestic operations, feed, slaughter, processing,
and distribution.

In response to these concerns, the Chinese Government in January 2003
required that all newly opened animal drug plants obtain a "Good
Manufacturing Practices" (GMP) certificate before production. The GMP
system will be implemented for all animal drug plants by the end of
2005, and those that cannot meet GMP requirements will be closed down.
The national standard (GB 18596-2001) for animal and poultry waste
handling became effective. The Chinese Ministry of Commerce (MOFCOM),
previous MOFTEC, recently issued a request to strengthen animal and
poultry slaughter and standardized meat product distribution. Processed
meat products will be subject to a reinforced system that they cannot
enter domestic retail market without a certified mark "QS" (quality
safety) in the latter half of this year.

In the long run, China's poultry industry will benefit from improved
quality and competitiveness on both the domestic and international
market. However, since approximately 70 to 80 percent of China's poultry
production is raised on small, non-modern family farms, it will take
time to see large-scale improvements.

## Consumption of highly processed products is gaining popularity, and consumer preference for domestic breed broiler meat is spreading to Northern China. 

As Chinese incomes rise and living standards improve, broiler
consumption in China is shifting towards more processed products such as
ready-to-cook, pre-portioned and breaded broiler parts. For consumption
of highly processed poultry products, producers' brands are important
because Chinese consumers believe that the well-known brands normally
have better quality.

Currently, high-quality, domestic breed broilers are mostly consumed in
the southern part of China, coastal areas or large cities where incomes
are higher. Although western breed broilers are making inroads in
northern China, high quality domestic breed broiler consumption is
spreading the fastest. This trend will continue over the next few years
in part because many Chinese consider broiler meat as a delicacy
stressing color and taste. High-quality domestic breed broilers are
considered tastier than western bered broilers\--especially in
traditional ways of cooking. Consumption patterns in China also reflect
cultural differences. Consumers in the west prefer broiler chest meat
and do not eat offal, while Chinese believe that paws, legs, wings and
wing tips taste better. Because of lagging production of paws coupled
with strong demand, the shortfall in offal must be met by imports. The
United States will continue to remain the largest offal supplier for
China over the foreseeable future.

## Domestic breed broiler production grows fast while western breed broiler production falls due to consumers' preferences

Although China\'s broiler prices have been low over the year, broiler
production has increased steadily. Profit margins are helped by lower
domestic feed prices due to adequate corn supplies. Prices of high
quality local breed broilers are about 30 to 50 percent higher than
ordinary breeds. Given export frustrations, some companies traditionally
involved in raising western breed broilers for export have started to
focus on local breed for the domestic market. According to industry
contacts, local breed broilers comprise about 90 percent along the Pearl
River Valley, 60 percent along the Yangtze River Valley and 40 percent
along the Yellow River Valley. In the future, local breed broiler meat
may cut into the meat share of western breed broilers.

Due to fierce competition and stricter production requirements,
increasing scale is being encouraged and moving faster than last year.
Leading broiler companies in Shangdong province are increasing the scale
of commercial farms, while reducing the number of contracts with smaller
sized household farms as a way to prevent disease and reduce production
costs. As evidence, contracts with family household have been reduced
from 60 to 40 percent this year. Contracted household farms are now
required to raise 5,000 birds at one hatching instead of 1,000-2,000 as
in the past. Broiler production is also being concentrated to grain
production areas for easy access to feed.

The Chinese Government no longer invests in broiler production. Existing
state-owned broiler companies are being transferred into private
share-holding companies. There are only a few foreign companies
investing in the broiler industry in China. Most foreign investment is
in slaughtering and processing or feed manufacturing. Most of their
products are for Chinese domestic markets.

Despite the increasing scale of production, China\'s broiler industry
faces challenges. The biggest problems are disease prevention and drug
residue control. Up to now, there is no national official veterinary
system. There are two standard animal drug residue laboratories at the
national level and six animal drug residue test centers at the Ministry
of Agriculture. Each province also has an animal drug residue test lab.
However, it is still not enough to serve and monitor thousands of
broiler plants and farms. Overlapping quarantine inspections by
different government leading with similar inspection authorities have
created more burdens for broiler producers, some to avoid inspections.

HACCP implementation appears out of reach for most small-sized broilers
slaughter plants, thus limiting their ability to meet increasing
stringent Chinese quarantine and certification standards. Most farms are
small, and the over-density of birds sometimes causes low survival
rates. Broiler production near large cities must also limit production
due to increasing production cost. Shanghai has decided to close down 30
to 40 percent of livestock and poultry farms and move them to other
places. The opportunity cost of pollution control in China is much
greater than in western countries due to China's huge population
density. Further, export difficulties still influence domestic prices.

## Poultry prices decrease during first half of 2003 quarters due to SARS, but prices are forecast to rise in the second half and remain stable in 2004

During the first six months of 2003, prices of poultry products
decreased because of SARS and the drop in food. Difficulties in
exporting poultry meat during this period also increased supplies and
pushed prices downward. Prices are expected to rise gradually as
domestic consumption has rebounded following the end of SARS. The
approaching public holidays (e.g., moon festival in September) also
normally lead to higher poultry consumption. Prices are expected to
remain stable in 2004 as feed production and prices are forecast to
remain fairly constant due to sufficient corn supplies.

# Trade

## China\'s poultry imports in 2003 and 2004 forecast to decrease due to SARS, more strict quarantine/certification requirements and the import ban on 7 U.S. States due to AI

China's imports of broiler meat are forecast at 330,000 MT, a slight
decline from the previous year and a 70,000 MT decrease from post's
previous forecast. The reduced import forecast is due to China's
outbreak of SARS in the spring and stricter implementation of quarantine
and certification requirements. FAS/Beijing, in cooperation with USDA's
APHIS regional office, continues to work with AQSIQ to find a way to
ease these constraints on trade.

China's stricter requirements have impacted imports of U.S. poultry, the
country supplying about 60 percent of China's imports. In recent months,
several batches of U.S. poultry or other meat products were rejected due
to supposed pathogens or chemical residues. China has imposed an import
ban on seven U.S. States due to Exotic Newcastle Disease and
non-pathogenic Avian Influenza (AI). Despite the fact that several of
these states are free of these diseases, the ban remains. The ban on two
other States for AI was lifted after FAS/Beijing coordination with AQSIQ
and the Ministry of Agriculture, and post continues efforts on the
remaining States.

The Chinese Government announced in August 2003 that all fresh and
frozen poultry imports and exports must comply with the new national
standard GB 16869-2000 (please refer to FAS/Beijing's report, GAIN
CH1060). The U.S. Government and industry contend the zero pathogen
tolerance for Samonella and E.coli is unfair on raw poultry meat for
processing. These complaints have been forwarded to the Chinese Ministry
of Health (MOH) and the State General Administration for Quality
Supervision, Inspection and Quarantine (AQSIQ) by FAS, FSIS, USMEF and
USAPEEC, and bilateral exchanges continue. This standard will be
replaced in the future by a new draft standard, GB 16869--2002, notified
to the WTO (see GAIN report CH3052), but the zero tolerance for
Samonella and E.coli would remain unchanged.

Chinese traders must also obtain both an Import Inspection Permit (IIP)
from AQSIQ and Import Automatic Registration Certificate (IARC) from the
Ministry of Commerce (MOFCOM) before signing a contract. Both processes
seem to have an import quantity limit. No matter how much traders
request each time, they can only get 200-300 MT per application. Traders
complain they may also get one document at a time and not the other. But
if both are not approved, imports are not allowed. Traders report that
MOFCOM seems to allocate import quantities to each province at the
beginning of each month. Since only the 73 companies granted poultry
import rights can apply for IIP and IARC, many importers have to buy the
two documents at a cost of several hundred RMB per ton, thus increasing
their costs.

FAS/Beijing and the U.S. meat industry continue to exchange views with
Chinese authorities. However, they deny import any quantity limitations.
The IIP and IARC process will continue to constrain imports in the near
future.

U.S. broiler exports to China through Hong Kong are sometimes reported
to be fraudulent products originating from South America and Europe.
When U.S. poultry products are repacked in Hong Kong, they are sometimes
mixed with products from other countries under a fraudulent health
certificate. According to the trade, the quality of these fraudulent
products is not as good as U.S. products, but the prices are much lower.

In response to this problem, this year the USDA's Foreign Agricultural
Service and the Food Safety Inspection Service (FSIS) successfully
negotiated with AQSIQ use of a new FSIS export health certificate. The
new certificate includes a watermark that will help accurately identify
U.S. meat, poultry and pork products. The Chinese Government, in an
attempt to reduce smuggling of poultry products, is encouraging direct
shipments from the United States to China.

## In the next couple of years, China will not likely compete with the United States in key export markets for frozen broiler cuts; however, China will increase exports of cooked and highly processed cuts.

China\'s broiler exports in 2003 are expected to decrease due to delayed
negotiations with Japan and the EU for re-opening their markets. The
country's exports are limited because of Japan and the EU, but also by
Russia\'s import quota implemented in May this year. During 2003 China
is only allocated 3,100 MT to Russia\--only 10 percent of China\' total
export volume to Russia in 2002. Before the quota system started,
Russian traders sharply increased their imports from China to expand
their stocks. This quota application will continue during the next
couple of years. However, China's increased exports of cooked broiler
products to Japan have partly compensated for the decrease in frozen
broiler exports.

Thailand is China\'s largest export competitor, as opposed to the United
States or Brazil, because the country targets the same market segment.
Both countries have cheap labor to process high-end cuts manually in
different kinds of sizes. The Chinese industry has indicated that once
Japan reopens its market, China will regain its export dominance in
labor-intensive production of high-end cuts and cooked products.

# Poultry Eggs

## China continues 18th year as top egg producing country in the world.

## 

China's poultry egg production accounts for 46 percent of the total
world production. Output in the first quarter of 2003 was 6.08 million
MT, 7.19 percent and 10.58 percent up respectively against the first
quarter of 2002 and 2001. Commercial egg production was 41 percent in
the first quarter of 2003. Annual per capita egg consumption in China is
17.9 kilograms. During 2002 farmers increased production due to lower
feed prices and better egg prices. However, in 2003 increased production
and the sudden outbreak of SARS pushed egg prices considerably down.
Although the egg price decline slowed after the end of the SARS panic,
the prices on average are expected to remain low. In China 90 percent of
chicken eggs are consumed as in-shell eggs and 90 percent duck eggs are
consumed as preserved eggs.

China's egg import situation remains constant. Shell chicken egg exports
are still dominant. Egg exports in the first two quarters of 2003 were
607,413 MT, up 30 percent over the same period of 2002. Hong Kong and
Macau are China's main export markets due to the close proximity. Egg
exports are expected to grow by 6 percent in 2003.

+--------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**      |       |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
| **Country**        | ###   |       |       |       |       |       |
|                    | ### C |       |       |       |       |       |
|                    | hina, |       |       |       |       |       |
|                    |  Peop |       |       |       |       |       |
|                    | les R |       |       |       |       |       |
|                    | epubl |       |       |       |       |       |
|                    | ic of |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**      | ####  |       |       |       | (1000 |       |
|                    | ## Po |       |       |       | MT    |       |
|                    | ultry |       |       |       | )(MIL |       |
|                    | , Mea |       |       |       | HEAD) |       |
|                    | t, Br |       |       |       |       |       |
|                    | oiler |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
|                    | 2002  | Re    | 2003  | Est   | 2004  | For   |
|                    |       | vised |       | imate |       | ecast |
+--------------------+-------+-------+-------+-------+-------+-------+
|                    | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                    | Off   | Est   | Off   | Est   | Off   | Est   |
|                    | icial | imate | icial | imate | icial | imate |
|                    | \[    | \[    | \[    | \[    | \[    | \[    |
|                    | Old\] | New\] | Old\] | New\] | Old\] | New\] |
+--------------------+-------+-------+-------+-------+-------+-------+
| **Market Year      |       | 01    |       | 01    |       | 01    |
| Begin**            |       | /2002 |       | /2003 |       | /2004 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Inventory          | 0     | 0     | 0     | 0     | 0     | 0     |
| (Reference)        |       |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
| Slaughter          | 287   | 560   | 0     | 580   | 0     | 600   |
| (Reference)        |       |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks   | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Production         | 9558  | 9558  | 9844  | 9844  | 0     | 10129 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Whole, Imports     | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Parts, Imports     | 435   | 341   | 400   | 330   | 0     | 330   |
+--------------------+-------+-------+-------+-------+-------+-------+
| Intra EC Imports   | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Other Imports      | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports      | 435   | 341   | 400   | 330   | 0     | 330   |
+--------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY       | 9993  | 9899  | 10244 | 10174 | 0     | 10459 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Whole, Exports     | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Parts, Exports     | 438   | 400   | 400   | 420   | 0     | 440   |
+--------------------+-------+-------+-------+-------+-------+-------+
| Intra EC Exports   | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Other Exports      | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Exports      | 438   | 400   | 400   | 420   | 0     | 440   |
+--------------------+-------+-------+-------+-------+-------+-------+
| Human Consumption  | 9555  | 9499  | 9844  | 9754  | 0     | 10019 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Other Use, Losses  | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| Total Dom.         | 9555  | 9499  | 9844  | 9754  | 0     | 10019 |
| Consumption        |       |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Use          | 9993  | 9899  | 10244 | 10174 | 0     | 10459 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks      | 0     | 0     | 0     | 0     | 0     | 0     |
+--------------------+-------+-------+-------+-------+-------+-------+
| TOTAL DISTRIBUTION | 9993  | 9899  | 10244 | 10174 | 0     | 10459 |
+--------------------+-------+-------+-------+-------+-------+-------+
| Calendar Yr. Imp.  | 510   | 167   | 0     | 170   | 0     | 170   |
| from U.S.          |       |       |       |       |       |       |
+--------------------+-------+-------+-------+-------+-------+-------+

+--------+------------------------+-----+-----+-----+-----+---------+
| Ch     |                        |     |     |     |     |         |
| ina\'s |                        |     |     |     |     |         |
| Import |                        |     |     |     |     |         |
| of     |                        |     |     |     |     |         |
| Se     |                        |     |     |     |     |         |
| lected |                        |     |     |     |     |         |
| P      |                        |     |     |     |     |         |
| oultry |                        |     |     |     |     |         |
| Pr     |                        |     |     |     |     |         |
| oducts |                        |     |     |     |     |         |
| (V     |                        |     |     |     |     |         |
| olume: |                        |     |     |     |     |         |
| Metric |                        |     |     |     |     |         |
| Tons)  |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        |     |     |     |     | \%      |
|        |                        |     |     |     |     | Change  |
+--------+------------------------+-----+-----+-----+-----+---------+
| HS     | Description            | 2   | 2   | 2   | 2   | 2002/03 |
| Code   |                        | 001 | 002 | 002 | 003 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        | J   | J   | J   | J   | Jan-Jun |
|        |                        | an- | an- | an- | an- |         |
|        |                        | Dec | Dec | Jun | Jun |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Whole Broiler   | 191 | 0   | 0   | 0   | 0.00%   |
| 7.1200 |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Cut Broilers,   | 1   | 1   | 55, | 38, | -29.47% |
| 7.1411 | with Bones             | 21, | 17, | 045 | 821 |         |
|        |                        | 781 | 338 |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Cut Broilers.   | 93  | 62  | 62  | 0   | -       |
| 7.1419 | Boneless               |     |     |     |     | 100.00% |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Broiler Wings   | 26, | 62, | 35, | 22, | -35.17% |
| 7.1421 |                        | 845 | 892 | 385 | 941 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Wingtips, Paws, | 4   | 3   | 1   | 1   | 13.68%  |
| 7.1429 | Offal                  | 95, | 18, | 55, | 76, |         |
|        |                        | 626 | 482 | 520 | 790 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 050    | Chilled or Frozen      | 9,  | 8,  | 6,  | 4,  | -39.30% |
| 4.0021 | Broiler Gizzard        | 920 | 891 | 868 | 169 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| Ch     |                        |     |     |     |     |         |
| ina\'s |                        |     |     |     |     |         |
| Import |                        |     |     |     |     |         |
| of     |                        |     |     |     |     |         |
| Se     |                        |     |     |     |     |         |
| lected |                        |     |     |     |     |         |
| P      |                        |     |     |     |     |         |
| oultry |                        |     |     |     |     |         |
| Pr     |                        |     |     |     |     |         |
| oducts |                        |     |     |     |     |         |
| (      |                        |     |     |     |     |         |
| Value: |                        |     |     |     |     |         |
| US\$   |                        |     |     |     |     |         |
| 1,000) |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        |     |     |     |     | \%      |
|        |                        |     |     |     |     | Change  |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        | 2   | 2   | 2   | 2   | 20      |
|        |                        | 001 | 002 | 002 | 003 | 02/2003 |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        | J   | J   | J   | J   | Jan-Jun |
|        |                        | an- | an- | an- | an- |         |
|        |                        | Dec | Dec | Jun | Jun |         |
+--------+------------------------+-----+-----+-----+-----+---------+
|        |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Whole Broiler   | 179 | 0   | 0   | 0   | 0.00%   |
| 7.1200 |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Cut Broilers,   | 87, | 93, | 45, | 26, | -41.18% |
| 7.1411 | with Bones             | 425 | 037 | 504 | 766 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Cut Broilers.   | 77  | 97  | 97  | 0   | -       |
| 7.1419 | Boneless               |     |     |     |     | 100.00% |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Broiler Wings   | 24, | 71, | 40, | 24, | -38.94% |
| 7.1421 |                        | 960 | 429 | 389 | 660 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 020    | Frozen Wingtips, Paws, | 2   | 2   | 1   | 1   | 12.60%  |
| 7.1429 | Offal                  | 98, | 13, | 04, | 17, |         |
|        |                        | 010 | 854 | 269 | 407 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| 050    | Chilled or Frozen      | 8,  | 7,  | 5,  | 3,  | -41.17% |
| 4.0021 | Broiler Gizzard        | 492 | 698 | 937 | 493 |         |
+--------+------------------------+-----+-----+-----+-----+---------+
| #      |                        |     |     |     |     |         |
| ###### |                        |     |     |     |     |         |
|  Sourc |                        |     |     |     |     |         |
| e: Chi |                        |     |     |     |     |         |
| nese C |                        |     |     |     |     |         |
| ustoms |                        |     |     |     |     |         |
+--------+------------------------+-----+-----+-----+-----+---------+

+--------+------------------------+-----+-----+-----+-----+--------+
| **Ch   |                        |     |     |     |     |        |
| ina\'s |                        |     |     |     |     |        |
| Export |                        |     |     |     |     |        |
| of     |                        |     |     |     |     |        |
| Se     |                        |     |     |     |     |        |
| lected |                        |     |     |     |     |        |
| P      |                        |     |     |     |     |        |
| oultry |                        |     |     |     |     |        |
| Pr     |                        |     |     |     |     |        |
| oducts |                        |     |     |     |     |        |
| (V     |                        |     |     |     |     |        |
| olume: |                        |     |     |     |     |        |
| Metric |                        |     |     |     |     |        |
| T      |                        |     |     |     |     |        |
| ons)** |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        |     |     |     |     | \%     |
|        |                        |     |     |     |     | Change |
+--------+------------------------+-----+-----+-----+-----+--------+
| HS     | Description            | 2   | 2   | 2   | 2   | 200    |
| Code   |                        | 001 | 002 | 002 | 003 | 2/2003 |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        | J   | J   | J   | J   | J      |
|        |                        | an- | an- | an- | an- | an-Jun |
|        |                        | Dec | Dec | Jun | Jun |        |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Whole Broiler   | 19, | 21, | 10, | 10, | 4.81%  |
| 7.1200 |                        | 173 | 827 | 082 | 567 |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Cut Broilers,   | 4,  | 1,  | 553 | 1,  | 1      |
| 7.1411 | with Bones             | 505 | 523 |     | 463 | 64.56% |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Cut Broilers.   | 3   | 2   | 1   | 1   | 8.59%  |
| 7.1419 | Boneless               | 20, | 56, | 04, | 13, |        |
|        |                        | 343 | 714 | 358 | 319 |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Broiler Wings   | 2,  | 431 | 170 | 177 | 4.12%  |
| 7.1421 |                        | 612 |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Wingtips, Paws, | 4,  | 1,  | 1,  | 1,  | 4.84%  |
| 7.1429 | Offal                  | 677 | 988 | 034 | 084 |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 050    | Chilled or Frozen      | 6   | 2   | 2   | 5   | 1      |
| 4.0021 | Broiler Gizzard        |     |     |     |     | 50.00% |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| **Ch   |                        |     |     |     |     |        |
| ina\'s |                        |     |     |     |     |        |
| Export |                        |     |     |     |     |        |
| of     |                        |     |     |     |     |        |
| Se     |                        |     |     |     |     |        |
| lected |                        |     |     |     |     |        |
| P      |                        |     |     |     |     |        |
| oultry |                        |     |     |     |     |        |
| Pr     |                        |     |     |     |     |        |
| oducts |                        |     |     |     |     |        |
| (      |                        |     |     |     |     |        |
| Value: |                        |     |     |     |     |        |
| US\$   |                        |     |     |     |     |        |
| 1,     |                        |     |     |     |     |        |
| 000)** |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        |     |     |     |     | \%     |
|        |                        |     |     |     |     | Change |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        | 2   | 2   | 2   | 2   | 200    |
|        |                        | 001 | 002 | 002 | 003 | 2/2003 |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        | J   | J   | J   | J   | J      |
|        |                        | an- | an- | an- | an- | an-Jun |
|        |                        | Dec | Dec | Jun | Jun |        |
+--------+------------------------+-----+-----+-----+-----+--------+
|        |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Whole Broiler   | 25, | 21, | 9,  | 14, | 49.66% |
| 7.1200 |                        | 461 | 539 | 635 | 420 |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Cut Broilers,   | 6,  | 2,  | 926 | 2,  | 1      |
| 7.1411 | with Bones             | 619 | 293 |     | 464 | 66.09% |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Cut Broilers.   | 4   | 3   | 1   | 1   | -      |
| 7.1419 | Boneless               | 84, | 34, | 56, | 26, | 19.09% |
|        |                        | 852 | 323 | 083 | 294 |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Broiler Wings   | 4,  | 909 | 347 | 347 | 0.00%  |
| 7.1421 |                        | 984 |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 020    | Frozen Wingtips, Paws, | 3,  | 1,  | 573 | 978 | 70.68% |
| 7.1429 | Offal                  | 974 | 209 |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+
| 050    | Chilled or Frozen      | 11  | 7   | 5   | 14  | 1      |
| 4.0021 | Broiler Gizzard        |     |     |     |     | 80.00% |
+--------+------------------------+-----+-----+-----+-----+--------+
| #      |                        |     |     |     |     |        |
| ###### |                        |     |     |     |     |        |
|  Sourc |                        |     |     |     |     |        |
| e: Chi |                        |     |     |     |     |        |
| nese C |                        |     |     |     |     |        |
| ustoms |                        |     |     |     |     |        |
+--------+------------------------+-----+-----+-----+-----+--------+

+----------+-------------------------+------+------+------+------------+
| M.F.N.   |                         |      |      |      |            |
| Tariff   |                         |      |      |      |            |
| Rate of  |                         |      |      |      |            |
| Chicken  |                         |      |      |      |            |
| P        |                         |      |      |      |            |
| roducts, |                         |      |      |      |            |
| 2001 -   |                         |      |      |      |            |
| 2003     |                         |      |      |      |            |
| (Based   |                         |      |      |      |            |
| on       |                         |      |      |      |            |
| Weight)  |                         |      |      |      |            |
| (Unit:   |                         |      |      |      |            |
| RMB/KG)  |                         |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
|          |                         |      |      |      | Change, %  |
+----------+-------------------------+------+------+------+------------+
| HS Code  |                         | 2001 | 2002 | 2003 | 2002/2003  |
+----------+-------------------------+------+------+------+------------+
| 2        | Frozen whole broiler    | 1.6  | 1.6  | 1.3  | -18.75%    |
| 007.1200 |                         |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| 0        | Frozen broiler cuts     | 1.2  | 1    | 0.8  | -20%       |
| 207.1411 | with bones              |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| 0        | Frozen broiler cuts,    | 2.7  | 1.5  | 1.2  | -20%       |
| 207.1419 | boneless                |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| 0        | Frozen broiler wings    | 2.3  | 1.2  | 1    | -16.67%    |
| 207.1421 |                         |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| 0        | Frozen wingtips. Paws,  | 1    | 0.8  | 0.6  | -25%       |
| 207.2900 | liver                   |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| 0        | Broiler gizzard         | 1.7  | 1.7  | 1.4  | -17.65%    |
| 504.0021 |                         |      |      |      |            |
+----------+-------------------------+------+------+------+------------+
| #####    |                         |      |      |      |            |
| ## Sourc |                         |      |      |      |            |
| e: China |                         |      |      |      |            |
|  Customs |                         |      |      |      |            |
+----------+-------------------------+------+------+------+------------+

+---------------+-----------+-----------+-----------+----------------+
| China\'s      |           |           |           |                |
| Retail        |           |           |           |                |
| Broiler Meat  |           |           |           |                |
| Prices on     |           |           |           |                |
| Average       |           |           |           |                |
| (2001-2003)   |           |           |           |                |
|               |           |           |           |                |
| ( RMB/KG,     |           |           |           |                |
| US\$ 1 =      |           |           |           |                |
| 8.27)         |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+
|               | 2001      | 2002      | 2003      | \% Chg.        |
|               |           |           |           | 2002/03        |
+---------------+-----------+-----------+-----------+----------------+
| January       | 9.93      | 9.64      | 9.26      | -3.94%         |
+---------------+-----------+-----------+-----------+----------------+
| February      | 9.79      | 9.83      | 9.43      | -4.07%         |
+---------------+-----------+-----------+-----------+----------------+
| March         | 9.32      | 9.62      | 8.98      | -6.65%         |
+---------------+-----------+-----------+-----------+----------------+
| April         | 9.58      | 9.22      | 8.93      | -3.15%         |
+---------------+-----------+-----------+-----------+----------------+
| May           | 10.02     | 9.29      | 8.78      | -5.49%         |
+---------------+-----------+-----------+-----------+----------------+
| June          | 9.37      | 9.12      | 8.77      | -3.84%         |
+---------------+-----------+-----------+-----------+----------------+
| July          | 9.50      | 9.24      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| August        | 9.80      | 9.26      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| September     | 9.78      | 9.35      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| October       | 9.79      | 9.17      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| November      | 9.62      | 9.32      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| December      | 9.57      | 9.28      |           |                |
+---------------+-----------+-----------+-----------+----------------+
|               |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+
| China\'s      |           |           |           |                |
| Retail Live   |           |           |           |                |
| Chicken       |           |           |           |                |
| Prices on     |           |           |           |                |
| Average       |           |           |           |                |
| (2001-2003)   |           |           |           |                |
|               |           |           |           |                |
| ( RMB/KG,     |           |           |           |                |
| US\$ 1 =      |           |           |           |                |
| 8.27)         |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+
|               | 2001      | 2002      | 2003      | \% Chg.        |
|               |           |           |           | 2002/03        |
+---------------+-----------+-----------+-----------+----------------+
| January       | 9.06      | 8.90      | 8.97      | 0.79%          |
+---------------+-----------+-----------+-----------+----------------+
| February      | 8.60      | 9.68      | 9.15      | -5.48%         |
+---------------+-----------+-----------+-----------+----------------+
| March         | 8.71      | 9.32      | 8.67      | -6.97%         |
+---------------+-----------+-----------+-----------+----------------+
| April         | 8.53      | 9.29      | 8.72      | -6.14%         |
+---------------+-----------+-----------+-----------+----------------+
| May           | 8.77      | 9.10      | 8.25      | -9.34%         |
+---------------+-----------+-----------+-----------+----------------+
| June          | 8.54      | 9.07      | 8.70      | -4.08%         |
+---------------+-----------+-----------+-----------+----------------+
| July          | 8.50      | 8.87      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| August        | 8.83      | 8.89      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| September     | 9.07      | 8.97      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| October       | 9.04      | 8.82      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| November      | 9.07      | 8.78      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| December      | 9.02      | 8.96      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| ####          |           |           |           |                |
| ### Source: t |           |           |           |                |
| he Ministry o |           |           |           |                |
| f Agriculture |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+

+--------------+-----------+-----------+-----------+-------------------+
| China\'s     |           |           |           |                   |
| Retail       |           |           |           |                   |
| Prices of    |           |           |           |                   |
| Chicken      |           |           |           |                   |
| Breeds on    |           |           |           |                   |
| Average      |           |           |           |                   |
| (2001-2003)  |           |           |           |                   |
|              |           |           |           |                   |
| ( RMB/KG,    |           |           |           |                   |
| US\$ 1 =     |           |           |           |                   |
| 8.27)        |           |           |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| Layer Breed  |           |           |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
|              | 2001      | 2002      | 2003      | \% Change 2002/03 |
+--------------+-----------+-----------+-----------+-------------------+
| January      | 1.98      | 1.97      | 2.14      | 8.63%             |
+--------------+-----------+-----------+-----------+-------------------+
| February     | 1.91      | 2.07      | 2.06      | -0.48%            |
+--------------+-----------+-----------+-----------+-------------------+
| March        | 2.02      | 2.17      | 2.02      | -6.91%            |
+--------------+-----------+-----------+-----------+-------------------+
| April        | 1.93      | 2.28      | 1.90      | -16.67%           |
+--------------+-----------+-----------+-----------+-------------------+
| May          | 2.06      | 2.17      | 1.78      | -17.97%           |
+--------------+-----------+-----------+-----------+-------------------+
| June         | 1.97      | 2.13      | 1.90      | -10.80%           |
+--------------+-----------+-----------+-----------+-------------------+
| July         | 1.90      | 2.15      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| August       | 1.93      | 2.18      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| September    | 2.12      | 2.22      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| October      | 2.05      | 2.20      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| November     | 2.24      | 2.14      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| December     | 2.03      | 2.20      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
|              |           |           |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| Broiler      |           |           |           |                   |
| Breed        |           |           |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
|              | 2001      | 2002      | 2003      | \% Change 2002/03 |
+--------------+-----------+-----------+-----------+-------------------+
| January      | 1.96      | 1.98      | 1.84      | -7.07%            |
+--------------+-----------+-----------+-----------+-------------------+
| February     | 1.97      | 2.16      | 1.92      | -11.11%           |
+--------------+-----------+-----------+-----------+-------------------+
| March        | 2.22      | 2.21      | 1.85      | -16.29%           |
+--------------+-----------+-----------+-----------+-------------------+
| April        | 2.28      | 2.21      | 1.72      | -22.17%           |
+--------------+-----------+-----------+-----------+-------------------+
| May          | 2.25      | 2.17      | 1.58      | -27.19%           |
+--------------+-----------+-----------+-----------+-------------------+
| June         | 2.02      | 2.04      | 1.79      | -12.25%           |
+--------------+-----------+-----------+-----------+-------------------+
| July         | 1.97      | 1.96      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| August       | 2.17      | 2.06      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| September    | 2.26      | 2.06      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| October      | 2.35      | 2.00      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| November     | 2.17      | 1.94      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| December     | 2.13      | 1.91      |           |                   |
+--------------+-----------+-----------+-----------+-------------------+
| #######      |           |           |           |                   |
|  Source: the |           |           |           |                   |
|  Ministry of |           |           |           |                   |
|  Agriculture |           |           |           |                   |
+--------------+-----------+-----------+-----------+-------------------+

+---------------+-----------+-----------+-----------+----------------+
| China\'s      |           |           |           |                |
| Retail Egg    |           |           |           |                |
| Prices on     |           |           |           |                |
| Average       |           |           |           |                |
| (2001-2003)   |           |           |           |                |
|               |           |           |           |                |
| ( RMB/KG,     |           |           |           |                |
| US\$ 1 =      |           |           |           |                |
| 8.27)         |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+
|               | 2001      | 2002      | 2003      | \% Chg.        |
|               |           |           |           | 2002/03        |
+---------------+-----------+-----------+-----------+----------------+
| January       | 5.38      | 5.58      | 5.49      | -1.61%         |
+---------------+-----------+-----------+-----------+----------------+
| February      | 5.08      | 5.63      | 5.42      | -3.73%         |
+---------------+-----------+-----------+-----------+----------------+
| March         | 4.97      | 5.31      | 5.14      | -3.20%         |
+---------------+-----------+-----------+-----------+----------------+
| April         | 4.92      | 5.39      | 5.05      | -6.31%         |
+---------------+-----------+-----------+-----------+----------------+
| May           | 5.04      | 5.41      | 4.97      | -8.13%         |
+---------------+-----------+-----------+-----------+----------------+
| June          | 5.16      | 5.48      | 5.01      | -8.58%         |
+---------------+-----------+-----------+-----------+----------------+
| July          | 5.29      | 5.37      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| August        | 5.33      | 5.60      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| September     | 5.73      | 5.73      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| October       | 5.77      | 5.61      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| November      | 5.44      | 5.50      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| December      | 5.45      | 5.49      |           |                |
+---------------+-----------+-----------+-----------+----------------+
| ####          |           |           |           |                |
| ### Source: t |           |           |           |                |
| he Ministry o |           |           |           |                |
| f Agriculture |           |           |           |                |
+---------------+-----------+-----------+-----------+----------------+

+------------+------------+------------+------------+----------------+
| China\'s   |            |            |            |                |
| Poultry    |            |            |            |                |
| Feed       |            |            |            |                |
| Prices on  |            |            |            |                |
| Average    |            |            |            |                |
|            |            |            |            |                |
| ( RMB/KG,  |            |            |            |                |
| US\$/RMB 1 |            |            |            |                |
| = 8.27)    |            |            |            |                |
+------------+------------+------------+------------+----------------+
|            |            |            |            |                |
+------------+------------+------------+------------+----------------+
| Layer Feed |            |            |            |                |
| Prices     |            |            |            |                |
+------------+------------+------------+------------+----------------+
|            | 2001       | 2002       | 2003       | \% Chg.        |
|            |            |            |            | 2002/03        |
+------------+------------+------------+------------+----------------+
| January    | 1.66       | 1.50       | 1.70       | 13.33%         |
+------------+------------+------------+------------+----------------+
| February   | 1.62       | 1.50       | 1.65       | 10.00%         |
+------------+------------+------------+------------+----------------+
| March      | 1.67       | 1.69       | 1.63       | -3.55%         |
+------------+------------+------------+------------+----------------+
| April      | 1.68       | 1.65       | 1.66       | 0.61%          |
+------------+------------+------------+------------+----------------+
| May        | 1.71       | 1.64       | 1.65       | 0.61%          |
+------------+------------+------------+------------+----------------+
| June       | 1.77       | 1.66       | 1.64       | -1.20%         |
+------------+------------+------------+------------+----------------+
| July       | 1.72       | 1.67       |            |                |
+------------+------------+------------+------------+----------------+
| August     | 1.72       | 1.66       |            |                |
+------------+------------+------------+------------+----------------+
| September  | 1.75       | 1.65       |            |                |
+------------+------------+------------+------------+----------------+
| October    | 1.71       | 1.64       |            |                |
+------------+------------+------------+------------+----------------+
| November   | 1.70       | 1.63       |            |                |
+------------+------------+------------+------------+----------------+
| December   | 1.66       | 1.63       |            |                |
+------------+------------+------------+------------+----------------+
|            |            |            |            |                |
+------------+------------+------------+------------+----------------+
| Broiler    |            |            |            |                |
| Feed       |            |            |            |                |
| Prices     |            |            |            |                |
+------------+------------+------------+------------+----------------+
|            | 2001       | 2002       | 2003       | \% Chg.        |
|            |            |            |            | 2002/03        |
+------------+------------+------------+------------+----------------+
| January    | 1.86       | 1.81       | 1.81       | 0.00%          |
+------------+------------+------------+------------+----------------+
| February   | 1.88       | 1.81       | 1.83       | 1.10%          |
+------------+------------+------------+------------+----------------+
| March      | 1.86       | 1.89       | 1.80       | -4.76%         |
+------------+------------+------------+------------+----------------+
| April      | 1.87       | 1.83       | 1.80       | -1.64%         |
+------------+------------+------------+------------+----------------+
| May        | 1.90       | 1.83       | 1.79       | -2.19%         |
+------------+------------+------------+------------+----------------+
| June       | 1.90       | 1.84       | 1.81       | -1.63%         |
+------------+------------+------------+------------+----------------+
| July       | 1.90       | 1.82       |            |                |
+------------+------------+------------+------------+----------------+
| August     | 1.87       | 1.81       |            |                |
+------------+------------+------------+------------+----------------+
| September  | 1.90       | 1.80       |            |                |
+------------+------------+------------+------------+----------------+
| October    | 1.88       | 1.81       |            |                |
+------------+------------+------------+------------+----------------+
| November   | 1.87       | 1.80       |            |                |
+------------+------------+------------+------------+----------------+
| December   | 1.90       | 1.79       |            |                |
+------------+------------+------------+------------+----------------+
| ###        |            |            |            |                |
| #### Sourc |            |            |            |                |
| e: the Min |            |            |            |                |
| istry of A |            |            |            |                |
| griculture |            |            |            |                |
+------------+------------+------------+------------+----------------+