Claire Thompson
Chicken feet are supplied to the global market by over 76 countries, with notable suppliers including LLC TD CHERKIZOVO, PRIVATE LIMITED MHP, and SEERA ALIMENTOS LTDA. The largest importers of chicken feet include China, Vietnam, Bangladesh, France, and Jamaica. Payment terms for chicken feet imports vary, with some buyers requesting payment terms of L/C (Letter of Credit), DLC (Documentary Letter of Credit), or TT (Telegraphic Transfer). Other buyers prefer to negotiate trade terms before issuing a purchase order and receiving the goods upon payment or as per the agreed terms.
| Characteristics | Values |
|---|---|
| Chicken feet consumers | China |
| Chicken feet preference | Big chicken feet with better mouthfeel |
| Global chicken feet importers | Over 142 countries |
| Chicken feet exporters | Over 145 countries |
| Chicken feet buyers | 4,447 (importers) and 4,818 (exporters) |
| Chicken feet suppliers | 2,422 (importers) and 2,749 (exporters) |
| Chicken feet export business growth strategy | Understanding global demand, identifying potential customers, offering quality products at competitive prices, keeping up with technological advances, implementing digital marketing strategies, establishing a professional online presence, networking at industry events, and building long-term relationships with clients |
| Chicken feet import business growth strategy | Understanding domestic demand, pinpointing potential overseas suppliers, offering high-quality products at competitive prices, keeping up with technological advances, implementing digital marketing strategies, establishing a professional online presence, networking at industry events, and building long-term relationships with clients |
| Chicken feet business exclusivity | Proactive measures to maintain contract exclusivity and protect market position |
| Chicken feet business risks | Parallel imports |
| Chicken feet business payments | Payment upon receipt of goods or as per agreed terms, customs duties or taxes may apply |
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What You'll Learn
Chicken feet as a delicacy in China
Chicken feet, known as "phoenix talons" or "phoenix claws" in Chinese, are considered a delicacy in China. They are savoured everywhere, from banquet halls to street-side eateries. The meatless, sinewy appendages are relished for their chewy texture and are believed to have health benefits.
China imports nearly a billion dollars' worth of poultry every year, with a significant proportion of that being chicken feet. In the past, the United States was the primary supplier of chicken feet to China, with American companies exporting about 300,000 to 400,000 metric tons of chicken feet annually. However, due to strained international trade relations, this flow has diminished. American chicken feet were particularly sought-after in China due to their larger size, which is attributed to a longer growth cycle.
Chicken feet are used in various regional Chinese cuisines and can be served as a beer snack, cold dish, soup, or main course. In Guangdong and Hong Kong, a popular preparation method involves deep-frying and steaming the feet to make them puffy before stewing them in a sauce flavoured with black fermented beans, bean paste, and sugar, or in abalone sauce. In mainland China, snack bars often sell marinated chicken feet, simmered in a blend of soy sauce, Sichuanese peppercorn, clove, garlic, star anise, cinnamon, and chilli flakes.
Chicken feet are also commonly packaged and sold in grocery stores and supermarkets as snacks, often seasoned with rice vinegar and chilli. They are considered a prized delicacy in China, and their popularity has created a lucrative market for global meat companies, generating hundreds of millions of dollars in revenue from selling chicken feet to the Chinese market.
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Chicken companies' reliance on chicken feet exports
Chicken feet, or chicken paws as they are called in the industry, have become a lucrative market for global meat companies, generating hundreds of millions of dollars each year. In China, chicken feet are a beloved delicacy, and overseas chicken feet are particularly popular as they tend to be higher quality and better value for money than domestic varieties. This has created a robust domestic value chain in China, with Chinese importers securing supply and gaining leverage.
In the US, chicken companies have come to rely heavily on chicken feet exports to China. Until about 20 years ago, chicken paws were almost worthless for a US chicken company. However, due to the huge demand in China, they have become a significant profit center. The US exports about 300,000 metric tons of chicken paws annually, with companies like Perdue Farms producing more than a billion chicken feet a year, bringing in over $40 million in revenue. Carlos Ayala, the Vice President of International at Perdue Farms, has stated that without the paw trade, many chicken companies would struggle to stay in business.
Chicken growers cannot produce chicken breasts without also producing the other parts, and chicken feet have become an essential part of the business. The high consumer valuation in China has created a stark contrast with the US market, where the product has minimal intrinsic value. This over-reliance on a single dominant market for niche exports carries inherent risks, as demonstrated by the US-China trade dispute over chicken feet.
To mitigate these risks, chicken companies can diversify their exports to other countries that also consume chicken feet, such as Brazil, Argentina, and Chile, and Korea. Additionally, companies can leverage data and tools to create winning strategies in the import-export business, identifying fast-growing chicken feet-related products and integrating them into their business models to capitalize on growth opportunities. By expanding their buyer pool and staying abreast of market trends, chicken companies can enhance their profitability and ensure their long-term survival.
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US-China tariffs and their impact on chicken feet trade
Chicken feet are a delicacy in China, where they are known as "phoenix talons". The US has been the source of about half of China's imports of chicken feet, which are almost worthless in the US market. In 2024, shipments of American chicken feet to China were worth $290 million. Chicken feet are a very desirable export for the chicken industry, as they can be sold for a high price in China. In 2009, China implemented tariffs of over 100% on chicken from the US, in response to complaints from Chinese chicken farmers. In 2010, China's Ministry of Commerce announced it would begin imposing antidumping tariffs ranging from 43.1% to 105.4% on imports of chicken parts from the US. This was in response to President Obama's announcement of tariffs of up to 35% on tire imports from China.
The US-China tariffs have had a significant impact on the trade of chicken feet between the two countries. The tariffs have made US products more expensive in China, leading to concerns among American farmers about losing a key market for chicken feet. As a result, American chicken feet have been disappearing from Chinese stores and restaurants, being replaced by imports from other countries such as Brazil and Russia. The tariffs have also disrupted the supply of US beef to China, with prices increasing by 50% compared to before the tariff war.
The impact of the tariffs on the chicken feet trade is particularly notable in Georgia, the largest chicken-producing state in the US. The poultry industry is a major source of jobs in Georgia, and China was once one of its most important markets. With the tariffs in place, Georgia has lost access to the lucrative Chinese market for chicken feet, and the state's chicken companies have struggled to stay in business.
Overall, the US-China tariffs have had a significant negative impact on the trade of chicken feet between the two countries. American farmers have struggled to find alternative markets for their chicken feet, and the loss of the Chinese market has hurt the profitability of the US poultry industry, particularly in states like Georgia. The tariffs have also contributed to increasing prices and reducing the availability of US agricultural products in China, including chicken feet.
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Strategies for expanding a chicken feet import business
Chicken feet, once considered close to worthless in the US, have become a lucrative market for global meat companies due to high demand in China. This has created a profitable opportunity for chicken feet import businesses. Here are some strategies to expand a chicken feet import business:
Understand the Market
Analyze the import and export data of chicken feet to understand competitive pricing, product quality, and demand. Volza, for example, provides data on buyers, suppliers, pricing, quantity, and contact information. This analysis can help identify reliable buyers and suppliers and develop a data-driven strategy for expansion.
Diversify Your Product Offerings
In addition to chicken feet, consider exporting chicken feet-related products with high growth rates. Volza's 'Hot Product' feature can help identify these fast-growing products, allowing you to integrate them into your business model and broaden your horizons within the industry.
Tap into High-Volume Products
Employ volume and trend analysis tools to identify high-volume chicken feet and related products that align with your business strategy. Integrating these products into your portfolio can increase your market presence and profitability.
Optimize Your Supply Chain
Certain ports are more efficient for logistics planning, execution, and supply chain management. Optimize your supply chain by exporting and importing chicken feet through these popular ports.
Build Relationships and Market Your Business
Networking at industry events and building long-term relationships with clients are crucial for business growth. Additionally, implementing digital marketing strategies and establishing a professional online presence can help expand your import business.
Keep Up with Industry Changes
Stay informed about the latest technological advances in chicken feet manufacturing and changes in import regulations. This includes being aware of customs regulations and the necessary duties or taxes when importing chicken feet.
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Customs regulations for exporting chicken feet
To export chicken feet from the United States, it is advisable to analyse export data to understand competitive pricing, optimal product quality, and identify reliable and cost-effective vendors. Using the correct HSN Code for chicken feet is a crucial regulatory requirement, as it determines the rate of duty and export benefits.
When importing chicken feet into the United States, it is important to note that the FSIS determines that a country's federal inspection system is equivalent to that of the U.S. While other countries' regulatory systems do not need to be identical to the FSIS system, they must employ equivalent measures to protect against food safety hazards.
In addition to FSIS regulations, imported animal food must comply with the requirements of the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act). This Act requires the registration of animal food-producing facilities with the FDA and "prior notice" for each shipment before arrival in the U.S. Import permit applications for animal-derived materials are submitted to the USDA using the APHIS eFile system.
It is worth noting that China has placed bans on exporting chicken products from certain U.S. states, with 37 states currently banned from exporting to China. These bans are related to the presence of HPAI and the General Customs Administration China (GACC) has not fully adhered to the regionalization protocol that was part of the Phase One Agreement between the two countries.
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Frequently asked questions
Chicken feet are largely unpopular around the world, except in China, where they are considered a delicacy. Chicken feet from overseas are especially popular in China due to their larger size and better value for money. This has created a lucrative market for global meat companies, which make hundreds of millions of dollars each year from selling chicken feet to the Chinese market.
Payment terms vary depending on the buyer and supplier. Some common payment terms include LC (Letter of Credit) payment, which can be irrevocable, and PB2% before L/C establishment. Other payment terms may include receipt of payment upon delivery of goods or as per agreed-upon terms.
To find buyers for the chicken feet business, you can utilize online B2B portals such as ExportHub, which connects suppliers with leading chicken feet buyers and importers. Additionally, you can leverage data and analytics tools, such as those offered by Volza, to identify potential customers and develop a growth strategy for your business.
Growing a chicken feet export business involves understanding global demand, identifying potential customers, and offering quality products at competitive prices. It is important to stay up-to-date with technological advances in manufacturing and changes in export regulations. Implementing digital marketing strategies, establishing an online presence, networking, and building long-term client relationships are also crucial for business growth.
