Lucas Delgado
In 2013, the United States Department of Agriculture (USDA) approved four Chinese poultry processors to export a limited amount of processed chicken to the United States. This decision sparked concerns among Americans about food safety and transparency, with some worrying about the possibility of U.S.-raised chickens being sent to China for processing and then shipped back for consumption. While the idea of sending American chicken to China for processing and re-importing it is not a common practice, it has been a topic of debate, with some attributing it to cost-cutting measures and wage disparities between the two countries. As of 2022, over 99% of the chicken consumed in the U.S. is domestically sourced, with only a small fraction of imports coming from other countries like Canada or Chile, and even smaller amounts from China.
| Characteristics | Values |
|---|---|
| Percentage of chicken sold in the U.S. that comes from chickens hatched, raised and processed in the U.S. | More than 99% |
| Percentage of chicken sold in the U.S. that is imported from Canada or Chile | Less than 1% |
| Percentage of chicken sold in the U.S. that is imported from China | A fraction of 1% |
| Number of Chinese processing plants eligible to export cooked poultry products to the U.S. | 4 |
| Year in which the U.S. prohibited FSIS from using funding to implement the final rule that allowed China to export processed chicken | 2008 |
| Year in which the appropriations ban was lifted and China submitted a new request for an equivalence audit | 2010 |
| Year in which four Chinese poultry processors were approved to begin shipping a limited amount of processed chicken products to the U.S. | 2013 |
| Year in which FSIS published a follow-up report on an audit of China’s processing system that found China’s processing system continues to be equivalent | 2016 |
| Year in which China’s food safety system for poultry received the “equivalent” designation | 2019 |
| Average wage for chicken processors in the USA | $11 per hour |
| Average wage for chicken processors in China | $1 to $2 per hour |
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What You'll Learn
The US Department of Agriculture's (USDA) stance on the issue
In August 2013, the United States Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) issued a final report regarding the food safety system governing the processing of chicken for export in the People's Republic of China (PRC). The report theoretically allowed China to process U.S.-raised chickens and ship them back to America. However, it is important to note that the USDA has restrictions in place on certain animal products entering the United States due to animal disease conditions in the country of origin. These restrictions apply to both chicken and duck imported from China and are specified in 9 CFR 94.6.
The USDA's approval of Chinese poultry exports to the U.S. has raised concerns among American consumers, particularly given China's reputation for product safety issues and avian influenza outbreaks. There are worries about the absence of on-site USDA inspectors in Chinese processing plants and the lack of country-of-origin labeling requirements for imported processed poultry. These concerns extend to potential issues with product contamination, mishandling, and the maintenance of sanitary conditions.
To address these concerns, the USDA has implemented several measures. Firstly, they conduct audits of Chinese processing plants before granting approval for processing raw birds from the United States. Additionally, the USDA requires that all U.S. establishments approved for export to China must be listed on the FSIS Eligible Plant List before slaughtering, processing, or storing eligible meat and poultry products intended for export to China. This ensures that only authorized facilities engage in the production and storage of meat and poultry products destined for the Chinese market.
Furthermore, the USDA has established specific requirements for importing beef and beef products into China. Deboned and bone-in beef, as well as various offal cuts, must adhere to strict guidelines and be derived from cattle of specific ages and origins. These measures aim to ensure the safety and quality of U.S. meat exports to China.
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Food safety concerns
In 2015, there were concerns in the US about American-based food companies laying off workers and sending their chickens to China for processing, to be reshipped to the US for sale. This was a concern for many American consumers, especially given China's history of food safety issues.
China has similar rules to the US regarding the checking of chicken carcass temperatures to prevent the multiplication of pathogenic bacteria, but these rules are not robustly enforced, and many poultry farmers are not well-informed about them. Heavy metals in Chinese poultry products may also be an issue, as China burns huge quantities of coal, which releases lead, mercury, cadmium, and arsenic. Poultry meat can also contain antibiotic residues if birds are treated with antibiotics inappropriately. China has had frequent outbreaks of deadly avian influenza, which it has sometimes been slow to report.
In 2004, China submitted a formal request to the US Department of Agriculture's Food Safety and Inspection Service (FSIS) to evaluate its poultry system and its eligibility to export poultry products to the US. After an extensive audit, FSIS granted China equivalence for processed poultry in 2006, meaning China was eligible to export cooked chicken to the US as long as the raw poultry was from an approved source. However, China has yet to provide a list of certified plants that will process the chicken for export, and there is no timeframe for when they intend to begin exporting to the US.
Despite these concerns, some argue that it makes economic sense to process chicken in China, as is already the case for US seafood. Domestically caught Pacific salmon and Dungeness crab are processed in China and shipped back to the US due to significant cost savings.
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Poultry processors in China
In 2013, four Chinese poultry processors were approved to begin shipping a limited amount of processed chicken products to the United States. However, it is important to note that China is not processing imported, U.S.-raised chickens and shipping them back to America. The approval for shipping processed chicken products to the U.S. comes with the stipulation that the processed heat-treated poultry products must be derived from flocks slaughtered under the U.S. inspection system or the inspection system of another country eligible to export slaughtered poultry products to the United States.
Despite this approval, concerns have been raised about the safety and integrity of the processed chicken products exported from China to the United States. One of the main concerns is the lack of country-of-origin labelling, which makes it difficult for consumers to know the source of the chicken in their food products. There are also questions about the food safety standards and inspection processes in China, with some worrying that the processed chicken may be mishandled, tampered with, or contaminated.
In response to these concerns, the U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) has conducted audits and evaluations of China's poultry processing systems. FSIS is responsible for reviewing requests from countries seeking to export FSIS-regulated products to the United States and conducting audits to determine if their food safety systems meet U.S. standards. In 2006, after an extensive audit, FSIS granted China "equivalence" for processed poultry, meaning that China was eligible to export cooked chicken to the U.S. as long as the raw poultry was from an approved source. However, there have been criticisms of FSIS' approval process, with some arguing that they have taken a passive approach and accepted simple confirmations of China's food safety oversight procedures.
To address these concerns, FSIS has implemented measures such as annual reviews, on-site audits, and port-of-entry re-inspections for all imported products. These measures aim to ensure that Chinese poultry processors maintain the required standards and that the imported chicken products meet U.S. safety standards.
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The economic implications of the arrangement
In 2013, the United States Department of Agriculture (USDA) approved four Chinese poultry processors to export a limited amount of processed chicken products to the United States. This decision was based on a review of China's system for processing poultry, which was found to meet US food safety standards. However, it is important to note that the US chicken industry achieves economies of scale, making it difficult for imported chicken to compete domestically. Indeed, more than 99% of the chicken consumed in the US is domestically hatched, raised, and processed, with only a tiny fraction of imports coming from China.
The economic implications of this arrangement are complex. On the one hand, it may be motivated by cost savings due to the lower average wage for chicken processors in China, which is around $1 to $2 per hour compared to $11 per hour in the US. This could result in significant savings for US-based food companies, but it may also lead to job losses in the domestic processing industry. However, it is important to consider the additional energy and shipping costs associated with transporting chicken between the two countries, which may offset any potential savings.
Another economic consideration is the potential impact on the US middle class. If jobs in the chicken processing industry are lost to China due to lower wages, it could undermine efforts to support and strengthen the US middle class. Furthermore, there may be implications for consumer confidence and spending if there is a perception that food safety and transparency are compromised by this arrangement.
Finally, this arrangement is part of a larger chess game between the US and China regarding trade negotiations. In 2003, China closed its market to US beef due to the mad cow disease scare, and it has since been a goal to reopen that market. China's willingness to import US beef is linked to the US accepting Chinese poultry products. This economic arrangement is thus part of a broader strategy to improve trade relations and access to the Chinese market for US agricultural products.
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The labelling of chicken products
In 2013, the United States Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) approved four Chinese poultry processors to export a limited amount of processed chicken products to the United States. This decision was based on an extensive audit of China's poultry processing inspection system, which found it to be equivalent to the US standards for food safety.
However, it is important to note that the US imports only a very small amount of chicken from China, constituting less than 1% of the total chicken consumption in the country. The majority of chicken consumed in the US, over 99%, is hatched, raised, and processed within the country itself.
Despite this, there have been concerns and controversies surrounding the labelling of chicken products processed in China and imported to the US. Some sources claim that chicken raised in the US and sent to China for processing may be labelled as "locally grown" or "grown in the USA," leading to confusion and questions about transparency and food safety.
To address these concerns, the USDA FSIS has implemented rigorous standards for inspecting food products from China. They conduct annual reviews, on-site audits, and port-of-entry re-inspections to ensure compliance with US standards. In addition, chicken products in the US are subject to country-of-origin labelling, and consumers can look for the "Hatched, Raised, and Harvested in the USA" label to ensure the chicken is domestically sourced.
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Frequently asked questions
In 2013, the United States Department of Agriculture (USDA) announced that China was eligible to export processed, fully-cooked chicken from the US and other approved source countries. However, it is important to note that more than 99% of the chicken sold in the US is hatched, raised, and processed within the country. Only a small fraction of 1% of chicken consumed in the US is imported from China.
The decision to allow US-raised chicken to be processed in China is likely motivated by cost savings due to the lower average wage for chicken processors in China compared to the US.
Yes, there have been concerns raised about the safety of chickens processed in China, including instances of rat meat being sold as lamb and chicken fattened with illegal drugs supplied to KFC restaurants in China.
Look for the "Hatched, Raised, and Harvested in the USA" label on chicken packages to ensure that the chicken you are purchasing is not processed in China.
The US Department of Agriculture's Food Safety and Inspection Service (FSIS) conducts rigorous audits and inspections of China's poultry processing system to ensure that it meets US food safety standards.
