A recent release by the USA Poultry and Egg Export Council (USAPEEC) confirmed that through May 2021, the U.S. exported 105,000 metric tons of chicken paws valued at $254 million. Given that the U.S. represents 44.8 percent of export supply to China, total importation of paws during 2021 to date has attained 234,375 metric tons. In 2020 following restoration of trade, China, imported 201,000 metric tons of paws valued at $460 million.
Reconciling USAPEEC prices and volumes with USDA data, it is apparent that the 105,000 metric tons of paws imported over the first five months of 2021 represented 57.5 percent of volume shipped amounting to 182,587 metric tons. Given a total value of $254 million for paws, the unit price was $2,457 per metric ton. The value of paws shipped to China represented 80.4 percent of the total shipment of chicken products to that Nation amounting to $321 million.
It is evident that the remaining 77,587 metric tons of chicken products shipped during the first five months of 2021 generated total revenue of $63 million, equivalent to $1,199 per metric ton. These products included some bone-in items but also edible giblets.
In reviewing current trends, it is evident that pork imports by China will decline as domestic volume increases. This is evident in the settlement price for live hogs as quoted on the Dalian Commodity Exchange. Fortunately chicken exports, with a concentration on paws, will continue as domestic production of white feathered broilers in China will be inadequate to supply demand for this product. China favors U.S. paws based on size derived from birds with an average live weight of 6.5 pounds compared to 4 to 5 pounds for domestic broilers in China and lower live weights from Brazil and Thailand.
Commenting on the demand for paws, Jim Sumner, President of USAPEEC, stated “Our industry wanted to regain access to China after five years to be able to export paws, but we did not expect such tremendous demand for our product.” Unfortunately the increase in shipments to China comes at the expense of sales to Hong Kong. Prior to March 2020 about half the consignments of paws to this destination were transhipped to the mainland.