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

Author

Listed:
  • Jacinto F. Fabiosa
  • Dinghuan Hu
  • Cheng Fang

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.

Suggested Citation

  • Jacinto F. Fabiosa & Dinghuan Hu & Cheng Fang, 2005. "Case Study of China's Commercial Pork Value Chain, A," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 05-mrp11, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:mpaper:05-mrp11
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    Citations

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    Cited by:

    1. Rae, Allan N., 2008. "China’s agriculture, smallholders and trade: driven by the livestock revolution?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-20.
    2. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.

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