Re-Exports to China Increase and Decline

January 18, 2000

Hong Kong's re-exports of U.S. agricultural products to China during the first half of 1999 increased in quantity over a year earlier but declined in value. Poultry meat re-exports helped increase the value and prevent a steeper decline, says USDA.

When poultry meat is not considered, Hong Kong re-exports of all countries' consumer-oriented agricultural products during the first half of the year declined in both quantity and value compared to a year earlier, a USDA attache report shows.

Several categories of U.S. products showed Hong Kong re-export increases in both quantity and value: snack foods, processed breakfast foods, poultry meat, nursery products and pet foods. However, when considering absolute value and quantity increases, poultry meat showed the only sizable growth.

The value of U.S. dairy product re-exports increased and the quantity declined; for other consumer products, the situation was reversed.

Increases in fresh fruit and poultry meat re-exports from all countries have one significant indications: although the local authorities over the past year have been trying to tighten up on grey channel imports, the success appears limited at best, the report says. Over the years, a vast majority of China's fresh fruit and poultry meat imports have been through grey import channels.