Global trade in the domain of poultry products has expanded rapidly in the past few years. But the technical rules and regulations, which were ostensibly designed for the protection of animal and human health, now act as important factors and determinants of the sector’s growth. Barriers to trade do come to effectuate trade volumes and patterns. Many of these barriers to the global poultry have scientific bases. In order to remove these barriers several systems might be required. These systems may also pose a threat to the production systems that have long been practiced. In short, till now the poultry markets have been witnessing a boom and a rapid expansion. The effects of these technical and non-technical barriers can be evaluated in terms of the following factors.
Rise in Consumption and demand for Quality
According to a number of statistical surveys, world poultry had expanded 11 million tons to 63 million from 1965 to 1999. The same also holds to be true for the consumption of poultry products. With an increase in the consumption, in the past few decades an expected increase in the quality of these products has been seen. In other words, people all over the world demand better quality when it comes to poultry products, which is the prime and the core reason for which various new rules and regulations, have been passed. Furthermore, the supply factors have also reinforced this increase in the demand, but at the same time the rising prices of poultry tell a very different story.
Increase in Imports and Exports
Imports of poultry products have now increased in those countries who had limited poultry resources. An increase in the imports has also been seen in countries which were considered to be self-sufficient in terms of poultry production like India, Pakistan and many others. The highest levels of poultry consumption have been seen in Hong Kong, USA followed by Israel, Saudi Arabia, China and Russia.
Foreign Direct Investment
The growth of the super markets, alongside fast food retail outlets has also generated a major impact on the poultry sales worldwide. This is one of the reasons for which the sector has been subject to rapid globalization. Thus, it is obvious that foreign direct investment does come to influence the poultry business all over the world. In addition, this factor has influenced the patterns and forms of trade and the politics of the various trade barriers.
Role of Tariffs and Tariff Quotes
Consumptions in poultry are also restricted by the various regulations on poultry exports and imports having a tariff and a non-tariff nature. Another major barrier in this regard is the income of the people living in a country. Now here an important thing to note here is the fact that in Germany, which has a very high per capital income, the poultry demand is the same as in Mexico, which has a comparatively low per capital income. As expected, the nutrition requirement in Mexico is now on a constant rise, so an agile solutions and the removal of barriers to poultry trade is now needed. Although in Germany and Japan, the consumption patterns have been rising, still they are nothing as compared to other Asian countries. Now here important determinants of the barriers to poultry are the SPS regulations. SPS measures stands for Sanitary and Phytosanitary measures. In the past, some improperly evaluated steps and decisions taken by WTO SPS committee have negatively influenced the patterns of poultry consumption and trade all over the world. So, in order to gain a better understanding about the tariffs, SPS regulations and consumption patterns, all the countries must take some important measures.
Influence of High Value (White Poultry) and Low Value (Dark Poultry) Products
In the wide range of the poultry products, the two classes which are of the most significance here are the White Meat and Dark Meat. White meat is mostly seen in terms of breasts and wings of chicken in addition to turkey which are of high value in comparison to the dark meat which comes from the drumsticks and thighs. Most of the high value products go to Japan and EU, while the low value products go to China, Russia and other countries.
Other Barriers to International Poultry
Poultry flocks are always susceptible to various diseases, especially in the 3rd world countries where the sanitary and other conditions are not so well. It is due to these conditions that the numbers of disease disputes have increased all over the world. Another important barrier to poultry lies in the poultry imports and exports in terms of halal food for the Islamic Countries.
Solutions and Recommendations
A perfectly evaluated, spatially balanced equilibrium in poultry production and methods is needed for the removal of these barriers. Furthermore, in addition to the improvement in sanitary conditions and removal of tariff flaws, a change in some impractical rules and regulations is also the need of the times. Imposition of new and agile sanitary barriers might also be needed for creating a balance in consumption and supply.