| 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. |