How a Waste Product Became a Booming U.S. Export to China

#1 · September 24, 2023, 6:44 pm

Quote from chief_editor on September 24, 2023, 6:44 pm
Chicken feet, known as paws in the poultry industry, have surprisingly become a hot U.S. export commodity to China. While Americans may view chicken feet as undesirable waste parts, they are a beloved delicacy in China where they can fetch prices higher than chicken meat itself. This raging demand has turned chicken paws into an unexpected financial windfall for American poultry producers.

According to the USA Poultry & Egg Export Council (USAPEEC), chicken paws are available only in niche ethnic markets in the U.S. However, they are consumed everywhere across China, where they are referred to as “phoenix talons.” Their popularity is akin to chicken wings in America, which are similarly priced higher than other chicken parts.

The insatiable Chinese appetite for paws has led to massive U.S. exports. In 2020 alone, over 201,000 metric tons of chicken paws worth $460 million were shipped to China from American poultry companies. The U.S. now holds 44.8% of China's chicken paw import market share in 2021 so far. This is since China reopened to U.S. poultry in November 2019 after years of being shut.

For U.S. producers, having a market for chicken paws in China has been a financial windfall. Without this demand, companies would be forced to sell the paws to renderers for just pennies per pound. Instead, paws now fetch an average $1.10 per pound in China. According to USAPEEC, this difference goes straight to poultry producers' bottom line.

The value of U.S. chicken paw exports to China is now about 6 times higher than in 2014. In the first 5 months of 2021, paw exports totaled over 105,000 metric tons, worth nearly $254 million. Back in the first 5 months of 2014, only 31,000 metric tons were exported, valued at $39 million.

China's domestic chicken production and consumption continues to grow steadily. However, U.S. paws are especially desirable because of their larger size compared to local Chinese chicken varieties. This preference for U.S. paws is expected to drive continued record exports in 2021 and beyond.

A Lucrative Byproduct Turned Top Export

Chicken paws used to be treated as a negligible byproduct by American poultry farms. They were sold off cheaply to renderers to be processed into animal feed and pet food. But the rapid rise of China's phoenix talon market has transformed their status.

According to Jim Sumner, President of USAPEEC, regaining access to China in 2019 was vital for the U.S. industry primarily because of chicken paws. Sumner stated, “we didn’t expect such tremendous demand for our product.” Now, paws have become the most lucrative piece of the bird.

This demand stems from the ubiquitous presence of chicken feet in Chinese cuisine. They are found everywhere from upscale banquet halls to street food stalls. Chicken feet are prepared in diverse ways like red braising, steaming, simmering in stews, and deep frying. This versatility makes them a staple appetizer and snack across China.

Cultural and Economic Drivers Underpin Demand

China's chicken feet craze also has cultural underpinnings. The collagen-rich feet are considered beneficial for skin health. Chicken feet are often served cold during warm months and are believed to cool the body. Economically, chicken feet offer a meaty delicacy at a more affordable price point compared to pricier animal proteins.

Rising incomes in China also correlate with greater chicken consumption. As living standards improve, diets incorporate more animal proteins. USAPEEC expects China's chicken production and consumption to keep growing through 2025 to meet this demand.

Of course, trade tensions have sometimes interfered with chicken paw exports. China imposed retaliatory tariffs in 2009 due to disputes over America's closed market for Chinese poultry. Only in late 2019 were formal steps taken to allow reciprocal trade access. With China projected as the top global opportunity for poultry, resolving trade barriers remains a priority.

Turning Waste Into Wealth

In conclusion, the peculiar story of chicken paws illustrates how niche foreign markets can sometimes turn overlooked byproducts into lucrative exports. What seems worthless in one culture can become cherished in another. The open trade in paws has allowed American producers to profit from waste that would otherwise be a sunk cost. Simultaneously, it has fed demand for a beloved cultural delicacy in China.

Despite occasional turbulence, the chicken paw trade between the U.S. and China remains a surprising win-win for both sides. With skyrocketing demand in China, humble chicken feet will continue serving as both a signature snack and an emblem of beneficial trade.

Chicken feet, known as paws in the poultry industry, have surprisingly become a hot U.S. export commodity to China. While Americans may view chicken feet as undesirable waste parts, they are a beloved delicacy in China where they can fetch prices higher than chicken meat itself. This raging demand has turned chicken paws into an unexpected financial windfall for American poultry producers.

According to the USA Poultry & Egg Export Council (USAPEEC), chicken paws are available only in niche ethnic markets in the U.S. However, they are consumed everywhere across China, where they are referred to as “phoenix talons.” Their popularity is akin to chicken wings in America, which are similarly priced higher than other chicken parts.

The insatiable Chinese appetite for paws has led to massive U.S. exports. In 2020 alone, over 201,000 metric tons of chicken paws worth $460 million were shipped to China from American poultry companies. The U.S. now holds 44.8% of China's chicken paw import market share in 2021 so far. This is since China reopened to U.S. poultry in November 2019 after years of being shut.

For U.S. producers, having a market for chicken paws in China has been a financial windfall. Without this demand, companies would be forced to sell the paws to renderers for just pennies per pound. Instead, paws now fetch an average $1.10 per pound in China. According to USAPEEC, this difference goes straight to poultry producers' bottom line.

The value of U.S. chicken paw exports to China is now about 6 times higher than in 2014. In the first 5 months of 2021, paw exports totaled over 105,000 metric tons, worth nearly $254 million. Back in the first 5 months of 2014, only 31,000 metric tons were exported, valued at $39 million.

China's domestic chicken production and consumption continues to grow steadily. However, U.S. paws are especially desirable because of their larger size compared to local Chinese chicken varieties. This preference for U.S. paws is expected to drive continued record exports in 2021 and beyond.

A Lucrative Byproduct Turned Top Export

Chicken paws used to be treated as a negligible byproduct by American poultry farms. They were sold off cheaply to renderers to be processed into animal feed and pet food. But the rapid rise of China's phoenix talon market has transformed their status.

According to Jim Sumner, President of USAPEEC, regaining access to China in 2019 was vital for the U.S. industry primarily because of chicken paws. Sumner stated, “we didn’t expect such tremendous demand for our product.” Now, paws have become the most lucrative piece of the bird.

This demand stems from the ubiquitous presence of chicken feet in Chinese cuisine. They are found everywhere from upscale banquet halls to street food stalls. Chicken feet are prepared in diverse ways like red braising, steaming, simmering in stews, and deep frying. This versatility makes them a staple appetizer and snack across China.

Cultural and Economic Drivers Underpin Demand

China's chicken feet craze also has cultural underpinnings. The collagen-rich feet are considered beneficial for skin health. Chicken feet are often served cold during warm months and are believed to cool the body. Economically, chicken feet offer a meaty delicacy at a more affordable price point compared to pricier animal proteins.

Rising incomes in China also correlate with greater chicken consumption. As living standards improve, diets incorporate more animal proteins. USAPEEC expects China's chicken production and consumption to keep growing through 2025 to meet this demand.

Of course, trade tensions have sometimes interfered with chicken paw exports. China imposed retaliatory tariffs in 2009 due to disputes over America's closed market for Chinese poultry. Only in late 2019 were formal steps taken to allow reciprocal trade access. With China projected as the top global opportunity for poultry, resolving trade barriers remains a priority.

Turning Waste Into Wealth

In conclusion, the peculiar story of chicken paws illustrates how niche foreign markets can sometimes turn overlooked byproducts into lucrative exports. What seems worthless in one culture can become cherished in another. The open trade in paws has allowed American producers to profit from waste that would otherwise be a sunk cost. Simultaneously, it has fed demand for a beloved cultural delicacy in China.

Despite occasional turbulence, the chicken paw trade between the U.S. and China remains a surprising win-win for both sides. With skyrocketing demand in China, humble chicken feet will continue serving as both a signature snack and an emblem of beneficial trade.