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Brexit-How Much It Will Affect Our Poultry Industry
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Britain withdraw from Europe referendum attracted worldwide attention. It will shake the European integration process, the impact of the global political and economic pattern. Since we are ten thousand miles away from London, the spread is not big, but still we can not avoid the impact of the British withdraw from Europe. So, with England withdraw from the Europe how much it will affect China poultry industry trade between Britain.

Background - European integration has been resisted in the United Kingdom

In this year's world political and economic events, the largest event will have to be the “Brexit” of United Kingdom, it is even more influential than U.S. presidential election. The breadth and intensity of the support of the "Brexit" in the United Kingdom is over a lot of people's expectations. In June 23, 2016, British citizens voted to become the first member of the EU's 58 year history to withdraw from the European union. At present, the British “Withdraw from Europe" impact is still in continuous fermenting.

British economy has reached 3 trillion U.S. dollars, and it is not a member of the euro zone. The view of the European integration is not entirely consistent within the European countries on the British withdrawal from the European Union, and sometimes more serious differences, the British left the EU will lead further increase the differences.

According to the economic analysis of public opinion, Britain withdraw from Euroup will not bring as much damage to the British economy as OECD, the International Monetary Fund estimated. Because the heavy taxes of the industry outside the EU region, and their encouragement of a high degree of protection of agricultural policy. In Europe, food, household appliances, computers and other commodities prices are 20% higher than the other regions. Britain “Withdraw from Europe" can get rid of these obstacles, and reduce the cost of about 8% for consumers. In addition, the UK also saves about $9 billion per year of EU membership fees, and also can abolish the EU's expensive labor and environmental protection laws and regulations.

As one of the world's largest trading bloc, the EU has not received all its regulatory, policy, tariffs, agreements and provisions in the United Kingdom. Since 2010, the European Union's 28 countries GDP growth is only about 5.2%, the 19 countries of the euro zone growth rate is only a little higher than this number which is far behind the United States (12%), Australia (14.5%) and Canada (9.3%). Therefore, with the development of the times, some European countries are in an unprecedented boycott of some of the EU's decision.

The same trend — global economic power is migrating from north to south and it has been proved by the the famous "North South cooperation", "South South cooperation”. The strength of the global economy are migrating from the northern hemisphere to the southern hemisphere. The middle classes in emerging markets are surging; they are becoming more and more urbanized and more and more younger. Governments around the world have advocated strengthening the control of key industries and resources in their respective countries. Business activities will no longer be the same as before, which requires many large enterprises to change the way enterprises operate, the extent of the change is most managers have never dreamed about.

With the rapid development of economy, China has now become the world's second largest economy, since almost every European country has its own China policy, and these countries when dealing with China will mostly focus on commercial interests.

From an economic perspective, the British withdraw from Europe is not very good news for China. In 2015, the bilateral trade volume between China and Britain is about $78.5 billion, in China's major trading partners, Britain is not ranked by the "first echelon", but the British withdraw from European is most likely to cause long-term effects far more than the volume of exports to China.

If, as a historical event, the Brexit is passing some kind of information to the world, that means what we know as "globalization" is moving towards the end. Western countries in order to cater to the so-called "global victims", it is likely to suppress free trade. This has prompted China to readjust its economic and trade strategy in Europe, in particular, to re-examine the adjustment of regional distribution strategy of foreign trade.

The relative conservation of poultry production and trade in the United Kingdom

1, UK egg industry refuses to compromise for TTIP

Britain's relatively conservative trade has made it harder for other economies to enter. For the United States and the European Union led the development of the trans the Atlantic trade and investment partnership agreement (TTIP), British egg producers refused to compromise. The National Union of British farmers (NFU) representative told delegates at the European Parliament a cross the Atlantic trade and investment partnership agreement of the conference that British poultry farmers cannot lose their poultry products competitive advantage to the poor quality import of poultry products. The national farmers union chairman Duncan Priestner said that British consumers expect and demand of higher standard of poultry welfare, higher level of environmental and safety standards. UK has paid hundreds of millions of pounds to achieve these standards.

But the lowest welfare standards involved in negotiations with the United States are lower than the EU's current standard, which would allow the UK's poultry industry to suffer the risk from cheap imports.

The National Farmers Union concerns that in 2012 the implementation of "hen welfare instructions" to prohibit the use of battery, the British manufacturer will invest about 400 million pounds ($616 million), to replace the battery with a better cage. In the United States, 95% of the egg from the battery, it is estimated that the cost of production in the US than in the UK is less for 25%.

In addition, the National Farmers Union also expressed concerns of the treatment processing for cleaning the meat. In the European Union, the process can only be used by drinking water, so they really focus on the health of the farm, but poultry production in the EU often do not do this.

2, In United Kingdom domestic consumption of poultry products has a high proportion of self sufficiency

In Britain a large proportion of the poultry consumption comes from domestic production, domestic production of poultry meat and eggs demand and supply ratio is very high. British poultry consumption is a fairly common in the people's diet consumption. Although the vast majority of consumers do not know the most popular food is how to enter the supermarket from the production plant, but the British poultry consumption is still accounted for half of the meat consumption. The poultry industry is responsible for 365 days a year to provide services to consumers. In the UK, every two meal will have a meal containing poultry products, including chicken, Turkey, duck or goose.

Any industry is to meet consumer demand for products. In recent years, the British consumer demand for food is getting higher and higher, the same is true for poultry products, people wants to eat more healthy, more convenient, more simple food, but also hope that the price can be reasonable.

The annual sales of poultry is up to hundreds of millions of pounds, primary processing products mainly include whole chicken, chicken breast and chicken legs, which accounted for the largest proportion of single commodity. This shows that the fresh meat products is still the UK consumer first choice. What we are sure about is, the chicken breast and other beneficial protein are more popular than the traditional baked food. At present, green organic chicken free range poultry

products accounted for the proportion of market share in the growing concern of food, that more and more people are more focus on health and safety issues.

British poultry trade plays a very important role in the import and export trade. British poultry products to provide consumers with a variety of options, consumers can buy a lot of high quality and inexpensive cut meat products. British people love chicken breast products, but other meat product is not so popular. Fortunately, other countries consumers have different consumption habits and consumer demand, the chicken claws, chicken legs and other meat products which British people not love have a good market in some countries. Therefore, these products can be exported to other countries, and import chicken breast from other countries at the same time.

3, Britain is the main trading partner is the EU Member States

Britain is the main trading partner is a member of the European Union, in addition, Thailand and Brazil are also the main importing countries. The British poultry industry does not receive direct funding of the common agricultural policy, but the British agriculture industry is the most regulated industries, subject to public health and animal health and welfare standards, the health and welfare standards to control poultry raising, feeding and transport ways.

The poultry industry is adjusting to the public health and animal welfare, the next will introduce is rules for the control of chicken breeding, feeding and transport, so chicken can be reared under the environment of comparison standards and rules.

British poultry industry often needs to conduct daily testing. Veterinary monitoring programs reveal that most of the hens are kept by the current animal welfare law. The prospects are better on the chicken, and they are almost always in compliance with animal welfare laws. Broiler industry has its own specific regulations of broiler production, the implementation of individual producers and supermarkets higher standards.

British National Federation of farmers said that due to the British poultry industry in the proportion is the largest in Europe, only retail have already reached 3 billion pounds, and therefore should be given sufficient attention.

The British poultry industry market transparent information and effective operation of the policy environment, will provide important conditions for European consumers to increase awareness of animal welfare, at the same time, Europe is an important producer of the world high quality food, production and consumption will be through the shadow of local rings and change the world understanding and action on animal welfare, UK has done better in this regard.

UK domestic poultry market is good but poor in export. However, the British pig industry is about to carry out direct trade with China, China's pork production and consumption accounts for about half amount of the global total.

But the British poultry industry is not 100% good, there are also security issues of poultry products, the respondents considered the most important aspect is to reduce Campylobacter infection, the second is to improve the reputation of the industry, raise public awareness of the economic contribution of the poultry industry.

Conclusion: the effect of the original poultry trade is limited. To sum up, because Britain pursues relatively conservative economic and trade policy, domestic poultry industry production and trade is also good, but the import trade foreign poultry products are rare, coupled with the high ratio of self-sufficiency domestic poultry production and consumption, also the poultry trade volume between China and Britain every year is small, the main trading partner of Britain is a member of the European union. Therefore, the United Kingdom withdraw from EU is relatively independent of the economy, it has little effect on China’s poultry industry, domestic poultry related industries

upstream and downstream large-scale farming groups need not to worry too much about the Brexit.

As it was written on June 29, 2016 China "Youth Daily": "although we have less demand for Britain, the demand from Britain for us is more, and this is actually an opportunity for China that may set off a new round of global cooperation. And these are likely to reduce the influence brought by the effect of Britain withdraw from the European Union." 

 

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