June 24, 2019

China Concerned Tariff War May Effect Considerable Kosher Sales

Shanghai…The looming trade war between the US and China shows signs of concerning the Chinese food industry, particularly in its lucrative sales of ingredients to the US. FoodPack, one of five shows last week at the Hi & Fi Asia-China, invited Rabbi Sholem Fishbane, Rabbinic Administrator of the Chicago Rabbinical Council (cRc) and executive director of the Association of Kashrus Organizations (AKO) to speak on the theme of “The Impact of the Trade War between China and US on Chinese Food Exports in Europe, Israel and North America Markets.” China is a major market for kosher food manufacturers in Israel, North America and Europe and is a particular source for ingredients for kosher food companies. Major kosher certifications on 3 continents certify several thousand plants in China. Half of China’s $3 billion exports of food ingredients to the United States are kosher. The trade war may result in higher prices which may force manufacturers and others to seek alternative sources including South Korea, Cambodia and Vietnam. The higher prices may also force manufacturers and others to look at potential domestic sources where shipping and rabbinic supervision are far less expensive.

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