Jul. 2, 2009 (China Knowledge) - China has effectively banned chicken imports from the U.S. as of Jul. 1, a move likely to cause losses of millions of dollars, said James H. Sumner, president of the USA Poultry & Egg Export Council.

China notified U.S. producers that it will not issue import permits for U.S. poultry but has not published any official statement, said Sumner.

China, which buys 70% of the chicken exported from the U.S., was expected to import 394,000 tons in the second half of 2009, said Sumner, adding that if China does not resume imports, the U.S. chicken exporters are likely to lose about US$370 million in the next six months, which would seriously hurt the U.S. chicken industry.

China's move is thought to be a reaction to a ban on U.S. imports of processed chicken. Lawmakers inserted a provision in the 2008 fiscal-year spending bill to prohibit the U.S. Department of Agriculture (USDA) from allowing chicken processed in China to be imported. The ban has been extended through to the 2010 fiscal year.

Representatives for the U.S. Agriculture Department and the Chinese Embassy in Washington declined to comment.