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Case Study of China's Commercial Pork Value Chain, A

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  • Jacinto F. Fabiosa
  • Dinghuan Hu
  • Cheng Fang
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    Abstract

    In China, with the cost of improved technology rising, surplus labor shrinking, and demand for food quality and safety increasing, it will be just a matter of time before the country's hog production sector will be commercialized like that of developed countries. However, even if China's cost of production converges to international levels, as shown in this case study, China may continue to retain some competitive advantage because of the labor-intensive nature of the marketing services involved in hog processing and meat distribution. The supply of variety meats offers the most promising market opportunity for foreign suppliers in China. The market may open further if the tariff rate for variety meats is reduced from 20% and harmonized with the pork muscle meat rate of 12%, and if the value-added tax of 13% is applied equally to both imported and domestic products. The fast-growing Western-style family restaurant and higher-end dining sector is another market opportunity for high-quality imported pork.

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    Bibliographic Info

    Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 05-mrp11.

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    Date of creation: Aug 2005
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    Handle: RePEc:ias:cpaper:05-mrp11

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    Keywords: commercial; cost structure; imports; pork value chain.;

    This paper has been announced in the following NEP Reports:

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