NRI: Exporting U.S. Livestock Products to China: Assessment of the Chinese Marketing Distribution System

After more than a decade of intensified bargaining, the U.S. and China reached a major breakthrough i.ntrade negotiations with the 2000 U.S.-China W'fD Accession Agreement. For tht!.first time, U.S. livestock exporters acquired marketing distributlon rights within China; thus, bypassing Chinese importers and enabling U.S. exporters to develop their own marketing distribution channels within China. The overall goal of this project is to assess the Chinese livestock marketing distribution system using an institutional framework approach that examines structure, conduct and performance. We firmly believe that in order for U.S. livestock exporters to successfully conduct business in China, they need a clear understanding of Chinese marketing laws and rules, preferences of Chinese consumers, and business practices of Chinese competitors. In addition to advancing academic research on Chinese marketing channels, results will provide U.S: livestock distributors with Chinese market structure information to enh(lnce competitiveness, one of the goals of the NRlCGP. In addition to academic ancL outreach publications and presentations, results will by available on web; thus available to all. Specific research objectives to achieve our goal incl.ude the following: to 1) collect information . on laws/rules that govern China's livestock product marketing chain via a literature review & focus group studies; 2) conduct consumer preference surveys for livestock~product attributes--product safety, labeling, brand name, & customized cuts; 3) estimate Chinese consumer preferences using ordered probit models; 4) conduct business surveys of Chinese livestock distributors on their business practices, performances & management philosophies; 5) estimate the relati~nship between businesS' performance and business practices using a probit model; 6) disseminate results in a variety of venuesacademic and outreach outlets. Focus group studies, consumer surveys aqd business surveys will occur in five selected Chinese cities--Beijing, Nanjing, Shanghai, Xiamen and Guangzhou-=' administered by our Chinese collaborators under the supervision of the principal investigators.