Via a Scott Lincicome tweet, I see all kinds of possibilities for trade conflict here:
The world's biggest goose farm and foie gras factory will soon be established on the banks of Poyang Lake, in China's Jiangxi Province. The American investment company Creek Project is said to be investing $100 million into the venture.
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Along with caviar and truffles, foie gras is often considered to be one of the "top three" Western gourmet items. However, the forced feeding of geese in order to fatten up their livers has been plagued with controversy internationally. Countries like Germany and Poland outlaw the "gavage" method of feeding, while California prohibits the sale of foie gras. A similar procedure was believed to have first been performed by Egyptian farmers nearly 5,000 years ago.
Under strong condemnation from animal protection groups, the European Union has planned to stop, from 2019 onward, the production of this traditional cuisine. Currently, Hungary, which used to be the second-biggest producer, has gradually decreased its output. Israel, another major producer in the past, has also discontinued its production. And so it is not altogether surprising that production is shifting eastward to China.
The planned Poyang Lake project will raise around two million geese and eight million ducks annually. China already produces an estimated 1,000 tons of foie gras per year, double its output in 2006. France still remains No. 1 in this market with about 20,000 tons a year.
Last year, some French foie gras producers were shut out at the Cologne International Food Fair, triggering some Franco-German tension. "In international trade, the lack of respect of animals' welfare could create barriers, as well as damage a country's image," says Zhang Dan, co-founder of China's Animals Protection Reporters Salon.
