update:Feb 5, 2007
The Impact of World Trade on Poultry Production
Guest Bloggers
An editorial on free trade in The New York Times might
seem to be unusual Christmas Day reading but is relevant in the spirit of the
holiday which offers “goodwill to allâ€. By Simon
Shane
An editorial on free trade in The New York Times might seem to be unusual
Christmas Day reading but is relevant in the spirit of the holiday which offers
“goodwill to allâ€.
Written as a counter to the strident calls for protectionism and trade
barriers to preserve domestic jobs in the USA from outsourcing, the article
cites the success of the aviation giant Boeing.
This Company received orders for 67 of their updated 747 model during the
past year valued at €13 billion. What is important is that many of the planes
are in freighter configuration, designed specifically to move products including
perishables from areas of low-cost production to consumers in the affluent
regions of the World. Although Boeing assembles aircraft in the USA many of the
components are fabricated in a wide range of countries providing economic
benefits to entrepreneurs and workers alike.
US/China's poultry export deal
A recent and connected
announcement by Richard Raymond, USDA Under Secretary for Food Safety, is
extremely relevant in the context of relaxing trade restrictions. A request by
China to export added-value cooked broiler meat to the USA has received
Departmental approval on scientific and regulatory grounds. The proposed rule
will be forwarded to the Office of Management and Budget, a Cabinet-level Agency
before Congressional oversight.
Export of US-origin poultry meat from China
Previously
USDA approved a number of plants in China to process US-origin poultry meat for
re-export to the USA as cooked product. A hollow concession since the cost of
double freight would render any potential bilateral trade uneconomic.
US poultry parts exports to China up 145%
During the
first 10 months of 2006, the USA exported 300,000 m tons of poultry parts
comprising feet, gizzards and leg quarters to China, a 145% increase over the
corresponding period in 2005. The value of €155 million in unilateral trade in
broiler products has represented an issue of contention and was the subject of
negotiation at recent Ministerial level meetings in Beijing on trade and
currency alignment.
World Bank economy predictions
The World Bank forecasts that the
World economy will triple from the current value of €27 trillion over the next
25 years. This will require free trade and expedited transport with realistic
currency conversion. Free trade will benefit both agricultural and
industrialized Nations and expand poultry production which embodies the
efficiency of feed conversion and application of
technology.
By: Simon Shane
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