A Case Study of China’s Commercial Pork Value Chain, August 2005

In China, with the cost of improved technology rising, surplus labor shrinking, and demand for food quality and safety increasing, it will be just a matter of time before the country’s hog production sector will be commercialized like that of developed countries. However, even if China’s cost of production converges to international levels, as shown in this case study, China may continue to retain some competitive advantage because of the labor-intensive nature of the marketing services involved in hog processing and meat distribution. The supply of variety meats offers the most promising market opportunity for foreign suppliers in China. The market may open further if the tariff rate for variety meats is reduced from 20% and harmonized with the pork muscle meat rate of 12%, and if the value-added tax of 13% is applied equally to both imported and domestic products. The fast-growing Western-style family restaurant and higher-end dining sector is another market opportunity for high-quality imported pork.

What can the United States learn from Spain's Pork Sector? Implications from a Comparative Economic Analysis, September 2005

This study provides a comparative economic analysis of the primary production of pork and its marketing channel in Spain and the United States. The focus on Spain is due to the profound growth and transformation of its pork sector over the last 20 years, compared with other major players in the world market for pig meat. The analysis reveals a number of similar characteristics but also important differences between the two countries. The significant expansion of Spain’s pork production sector stemmed from a number of factors that apply, to a relatively large extent, to some U.S. states (in particular, North Carolina) but do not apply to the U.S. pork production sector as a whole. This implies that it is unlikely that the U.S. pork production sector as a whole will mimic an expansion driven by the same type of factors in the future. Likewise, it seems highly unlikely that the U.S. consumption of pig meat will expand in the future based on the same driving forces behind the sharp increase in Spain’s domestic demand for pig meat over the last 20 years. The analysis also indicates that Spanish pig producers are currently being subjected to more stringent environmental and animal welfare regulations than their U.S. counterparts and that these regulations are becoming increasingly more restrictive. It would not be surprising to see similar trends emerging in the United States, leading to a substantially more restrictive regulatory environment for U.S. hog producers.

Consumers’ Demand for Pork Quality: Applying Semantic Network Analysis, May 2006

Abstract Consideration of consumers’ demand for food quality entails several aspects. Quality itself is a complex and dynamic concept, and constantly evolving technical progress may cause changes in consumers’ judgment of quality. To improve our understanding of the factors influencing the demand for quality, food quality must be defined and measured from the consumer’s perspective (Cardello, 1995). The present analysis addresses the issue of food quality, focusing on pork—the food that respondents were concerned about. To gain insight into consumers’ demand, we analyzed their perception and evaluation and focused on their cognitive structures concerning pork quality. In order to more fully account for consumers’ concerns about the origin of pork, in 2004 we conducted a consumer survey of private households. The qualitative approach of concept mapping was used to uncover the cognitive structures. Network analysis was applied to interpret the results. In order to make recommendations to enterprises, we needed to know what kind of demand emerges from the given food quality schema. By establishing the importance and relative positions of the attributes, we find that the country of origin and butcher may be the two factors that have the biggest influence on consumers’ decisions about the purchase of pork.