W9 Chicken Update: China Lifts Anti-Dumping Measure on Brazilian Chicken Imports, Russia Implements Duty-Free Quota to Combat Domestic Price Surge

Published Mar 8, 2024

In W9 in the chicken landscape, China's decision to lift the anti-dumping measure on Brazilian chicken imports, effective February 17, 2024, marks a significant development for Brazil's poultry industry and its access to the Chinese market. The removal of surcharges ranging from 17.8% to 34.2% enhances the competitiveness of Brazilian chicken exports, potentially increasing export volume and market share in China, the world's second-largest consumer of chicken. In contrast, Russia has approved a duty-free quota of 140 thousand mt for chicken meat imports in 2024 to address rising domestic poultry prices. With poultry prices in Russia soaring due to currency devaluation and supply chain disruptions, the duty-free quota aims to stabilize prices and ensure adequate meat supply for consumers.

Brazilian Chicken Exports to China Expected to Rebound Following Removal of Anti-Dumping Tariffs

The Chinese government has officially lifted the anti-dumping measure imposed on Brazilian chicken imports to China since 2019. This move signifies a significant development for the Brazilian poultry industry and its access to the Chinese market. The protectionist measure, which included surcharges ranging from 17.8% to 34.2% on Brazilian chicken meat and its derivatives, has been nullified as of February 17, 2024, and will not be reimplemented based on the Chinese government's announcement.

Removing anti-dumping measures and associated surcharges enhances the competitiveness of Brazilian chicken exports in the Chinese market, potentially leading to increased export volume and market share. The removal of these surcharges and associated "price commitments" is expected to enhance the competitiveness of Brazilian chicken products in the Chinese market, potentially leading to increased export volumes and revenue.
Brazil is the world's leading chicken exporter, while China is the world's second-largest consumer and the primary destination for Brazilian chicken exports. In 2023, Brazil exported over 679 thousand metric tons (mt) of chicken to China, valued at more than USD 1.9 billion. Enhanced competitiveness through lower export costs could translate into improved profitability for Brazilian chicken producers exporting to China.

Russia Approves Duty-Free Chicken Import Quota Amid Rising Domestic Prices

The Russian Ministry of Agriculture has authorized supplying chicken meat to Russia under a duty-free quota of 140 thousand mt for 2024, aiming to address rising domestic poultry prices. The Ministry approved chicken meat imports under specific tariff codes (0207 14 100 9 and 0207 14 500 9) within the Eurasian Economic Union (EAEU) framework. As of the announcement, approximately 134.3 thousand mt of the quota remains available for duty-free imports.

The Federal State Statistics Service (ROSSTAT) data indicates a 28.47% year-over-year (YoY) increase in chicken meat prices in Russia since the beginning of 2023. Poultry prices have so far increased by 20% in 2024. The devaluation of the Russian ruble has contributed to rising import costs along with lower production volumes, supply chain disruptions, and logistic challenges.