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When Pigs Fly: China Chooses U.S. Swine Genetics
By Mary Ponomarenko and Jill Lee 
When Stan Garbacz arrived in Guiyang Province, China, he was warmly welcomed by agricultural authorities, who appreciated the technical expertise their guest brought with him. The Chinese producers recognized an opportunity to learn from one of Nebraska’s top farmers and improve their pork industry with Nebraska’s best livestock.
Stan Garbacz, administrator for the Ag Promotion and Development Division of the Nebraska Department of Agriculture, went the extra mile to build trade links with this region.
"They were really interested because the reputation of U.S. pork preceded us," he said. "They knew it to be a high-quality meat and that U.S. pigs tend to be larger than many of China’s domestic lines."
Chinese officials were hesitant to purchase because of some previous bad experiences with less-reputable foreign exporters.
They also knew buying quality U.S. breeding boars and sows was no panacea; a failed experiment in the 1980s had taught them that they also needed a sound breeding plan.
Garbacz listened carefully, then gave his Chinese customers the plan they needed, and, as a result, sold U.S. breeder pigs.
Building a Foundation of Trust
Garbacz built their trust by holding seminars for Chinese pork producers. Funding from FAS’ Market Access Program (MAP), obtained through U.S. Livestock Genetics Exports, Inc., was used to bring swine consultants to China.
Since 1996, Nebraska’s Department of Agriculture has organized several trade missions to China and has hosted 22 Chinese teams in the United States, Garbacz travels to China nearly every year, accompanied by industry experts with information for Chinese producers. Their talks go beyond improving genetic lines, and include practical advice on farm management.
"You have to build a relationship in China, and you have to show them that you care about them as a customer," he said.
Reaching China Farmer-to-Farmer
In a stroke of old-fashioned marketing sense, Garbacz invited
a group of Nebraska hog farmers to speak to Chinese producers.
Among the U.S. delegation was Max Waldo, president and general
manager of Waldo Farms, in De Witt, Neb. Waldo is a member of the
Nebraska Specific Pathogen Free (SPF) producers. These hog
farmers make a commitment to special disease control protocols,
so their swine can be exported successfully.
The talk was successful–so much so that Waldo and other SPF
producers sold three shipments of breeder swine, totaling 415
head, after his visit. Another sale for an additional 340 head is
pending.
Several Chinese delegations visited Waldo’s farm. Gross sales to China by Waldo Farms and other Nebraska SPF producers could reach $1 million.
"We went to China and we succeeded in selling some
breeder pigs, but one thing about China–there is a lot of
red tape," Waldo said, cautioning potential exporters to be
realistic about risk. "Of course, it’s not all that
different from exporting to a lot of other countries. Some
requirements are legitimately related to animal health,
but sometimes there is the unfortunate side effect of restricting
trade."
Exporting live animals can be challenging. For example, hogs can become ill during their flight. To make matters worse, if the animals are detained in quarantine, they can rapidly grow too large and it costs to ship them after clearance. Moreover, if the pigs are held too long in quarantine, permits can expire. Those permits must be renewed, which adds to the expensive time lag.
Despite the potential frustration, Waldo, an active member of the National Pork Producers’ export council remains committed to international marketing.
Enhancing Trade With China
Garbacz, like many others who seek trade with China, takes a close interest in the news these days. He hopes new cooperative bridges can be built with diplomacy.
"With China, it could only make things better," he said. "When government officials feel comfortable dealing with you, there is a lot less hassle."
Open trade has a ripple effect across U.S. agriculture. If Waldo’s pigs sell, for example, it also benefits the grain industry.
"Max selling breeder stock is a win-win situation for us," said Don Hutchens, executive director of the Nebraska Corn Board. "Better exports for China means our sales may also increase because great hog demand means more feed is required."
Hutchens added that, by improving its pork industry, China could provide more dietary protein to its booming population. The Nebraska Corn Board and the Nebraska Department of Agriculture have joined promotional efforts with the U.S. Feed Grains Council, another FAS-partner cooperator.
China Is Sold on U.S. Agriculture
The Chinese farmers and agricultural officials are well aware of the benefits of improving their pork industry, Garbacz said.
"I find that the provincial governments are so anxious for their farmers to learn more about pork production that they are perfectly willing to pay their air fare," he said.
A Friend Under Foreign Skies
Garbacz says he has repeatedly used FAS’ agricultural trade offices to facilitate his China trips.
"When it comes to cataloging everything that FAS officers do for us, I don’t know where to begin. Everyone in China has been great."
Garbacz said that, prior to trips, he checks with FAS’ Agricultural Trade Office for up-to-the-minute information about the Chinese market. They provide him with contacts in the pork industry and generally make sure the trip goes smoothly.
"The State of Nebraska does not have foreign offices," he said. "We are totally reliant on FAS and other organizations such as the U.S. Feed Grains Council to be our overseas liaisons.#
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Ponomarenko is an agricultural economist with FAS’
Dairy, Livestock and Poultry Division in Washington, D.C. Tel.:
(202) 720-4455; Fax: (202) 720-0617; E-mail: Ponomarenko@fas.usda.gov
Lee is a public affairs specialist with the FAS Information
Division, USDA, Washington, D.C. Tel.: (202) 720-7939; Fax: (202)
720-1727; e-mail: leejill@fas.usda.gov
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