Tyson plans to build 10 large poultry complexes in China as part of a joint venture with Hong Kong-based Kerry Holdings Limited. Foreign investment in China has created at least 1,000 joint ventures or foreign processing businesses, says Morgan. The biggest poultry investor in China is Thailand's CP, with 130 broiler production companies in 27 of China's 30 provinces. CP became an even bigger global player last year when it chose Eufala, Alabama, for its first U.S. poultry processing plant. The U.S. hopes to get a bigger piece of the market now that pork prices are more competitive.
Japan is also a target for Chinese poultry exports.
Not only is China exporting its own production, it is importing chicken legs through Hong Kong, then processing the meat to specifications for the Japanese market. China's pork export market has been declining since 1995 when its largest market, Russia, began to dry up. In addition, the Chinese government has embarked on a campaign to reduce pork production and consumption. China could import every pigs foot in the world, and it still wouldn't be enough. Johnson visited China last fall, touring slaughterhouses.