Regionalisation agreement paves the way for Polish poultry market entry

Poland is set to resume its poultry exports to China following a new agreement on regionalisation. This development marks a significant step forward after several years of absence from the Chinese market.

Background on Regionalisation

The agreement, reached in mid-September, allows for the implementation of regionalisation based on the NUTS 3 system, which divides Poland into 73 sub-regions. This compromise was achieved after extensive negotiations between Polish and Chinese authorities. Initially, China proposed regionalisation at the provincial level, while Poland pushed for a more granular county-level approach. The NUTS 3 system represents a middle ground, offering exporters greater flexibility and practicality.

This follows the milestone agreement announced on 17 September, which we covered in our article “Polish Poultry Exports Resume to China”, where Poland and China signed the deal that formally introduced regionalisation as the key mechanism for poultry trade.

Market Implications

The agreement is expected to facilitate smoother trade by allowing regions unaffected by avian flu to continue exporting, thereby preventing nationwide export bans. This is particularly crucial during flu seasons when outbreaks can occur sporadically across different regions. The ability to isolate affected areas without halting all exports is beneficial for both Polish exporters and Chinese importers.

Next Steps for Export Resumption

For the agreement to take full effect, two key steps remain: updating the health certificates to reflect the new regionalisation terms and reopening the CIFER system for nine authorised Polish companies. The CIFER system, managed by China's customs administration, was previously closed following avian flu outbreaks in Poland. Polish authorities are optimistic that these steps will be completed within 30 days, allowing exports to resume promptly.

Industry Outlook

Despite the hiatus since 2020, Polish poultry producers have maintained strong relationships with Chinese importers. The recent presence of Polish firms at trade events like SIAL in Shanghai underscores their commitment to the Chinese market.

Our relationships with Chinese importers remain robust, and interest in Polish poultry is significant.

Dariusz Goszczyński, President of the National Poultry Council

The reopening of the Chinese market is a strategic move for Poland, which exports 60% of its poultry production. While the country has also been exploring other Asian markets such as the Philippines and South Korea, China remains a vital partner. The successful implementation of the regionalisation agreement is expected to enhance trade opportunities and strengthen Poland's position in the global poultry market.

Source