Pilgrim's Pride (PPC): China Reopens 17 States to US Poultry

Pilgrim's Pride (PPC) told investors on July 30, 2026 that China has released 17 U.S. states from its avian influenza import ban, letting raw poultry from those states ship to China again [1]. It is the first partial opening after roughly three years of a full closure, and PPC is so far the only company to disclose it. In the same call, the company said its overall poultry exports held steady against last year [1].

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How the China ban worked, and what changed

U.S. chicken processors break a bird into parts and sell them into different markets. Breast meat and legs are absorbed at home, while paws and feet are barely eaten in the United States and have to be sold abroad. China has long been one of the largest buyers of those parts. On its October 30, 2020 call, PPC described China as one of its biggest poultry export destinations, second only to Mexico [2]. After highly pathogenic avian influenza (HPAI, a poultry disease that usually triggers immediate import bans) spread, China closed to U.S. raw poultry entirely. As late as October 30, 2024, PPC still described China as the one trade lane showing no movement [3].

What changed is how eligibility is decided. China now certifies states one at a time as disease-free, and 17 states have been cleared, so plants in those states can resume shipments on their own. Nothing changed in how U.S. birds are raised or processed, so every U.S. processor with plants in those states faces the same opening. Because paws have almost no domestic demand, an extra pound sold to China does not have to come out of domestic sales. PPC said on April 30, 2020 that when the lane was open, quarterly sales to China rose to roughly 86 million pounds, about 20% of its exports, spanning more than paws and dark meat [4].

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Seventeen states cleared, no movement yet in reported exports

PPC gave the scope and the expected next steps. It said meetings between U.S. and Chinese government officials led China to release 17 states and allow raw product shipments to resume, and that other states currently free of high-path avian influenza have not yet been fully recognized, with further meetings scheduled later in the year that may release them [1].

The financial line has not moved. On the same call, the company said overall poultry exports remained steady versus last year [1]. The 10-Q filed the same day lists the factors that will shape prices for the rest of the year in its Raw Materials and Pricing discussion, and mentions trade policy only as something that could influence consumer spending in price-sensitive segments, without citing the reopening [5].

The lane had also shrunk during the ban. U.S. chicken paw exports to China were $75.92 million in 2025 [6]. Against a revenue base in the tens of billions of dollars, even a return toward pre-ban levels would be unlikely to change reported revenue in the near term. Taken together, the disclosure supports a change in access rules, not yet a change in shipped volume.

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The gain would show up in margin, and the pace is set in Beijing

If product actually moves, the effect lands more visibly on profit than on revenue. Paws and feet have little alternative outlet in the United States, so the spread between the export price and domestic disposal value falls largely into gross profit, and no additional growing, slaughter or processing capacity is required. Revenue will move more slowly than margin because these parts carry a low unit price.

U.S. processors do not control how wide the opening gets. The pace depends on China's state-by-state certification and on the meetings scheduled later in the year, which is why PPC could only describe further releases as an opportunity [1]. Over the next one to four quarters, three things are checkable: whether export revenue and volume disclosed by PPC and Tyson rise accordingly, how many additional states China releases, and whether USDA/FAS trade data for poultry to China shows the corresponding volume.

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Companies exposed to this change:

• Tyson Foods (TSN): One of the largest U.S. poultry exporters, it also relies on overseas markets to absorb parts that do not sell at home and faces the same state-by-state certification rules, so it can resume shipments once its plant states are cleared. Its most recent earnings call, on May 4, 2026, predates the announcement and does not mention China, so there is no disclosure of its own yet to corroborate this lane [7].

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Sources

[1] Drillr · Pilgrim's Pride (PPC) · 2026-07-30 · FY2026 Q2 earnings call

For Asia, recent meetings between government officials from the United States and China created a favorable outcome for the US poultry exports. As such, China released 17 states from its avian influenza ban, allowing shipments of raw products to resume. Additional opportunities exist as other states that are currently free of high path avian influenza have yet to be fully recognized. Further meeting scheduled later in the year may result in the release of these states and resumption by China to follow the phase one agreement.

[2] Drillr · Pilgrim's Pride (PPC) · 2020-10-30 · FY2020 Q3 earnings call

[3] Drillr · Pilgrim's Pride (PPC) · 2024-10-31 · FY2024 Q3 earnings call

[4] Drillr · Pilgrim's Pride (PPC) · 2020-04-30 · FY2020 Q1 earnings call

[5] Drillr · Pilgrim's Pride (PPC) · 2026-07-30 · FY2026 Q2 10-Q (Item 2 MD&A, Raw Materials and Pricing)

[6] Food Business MEA · US chicken paw exports to China fall to US$75.9M as HPAI restrictions tighten trade · report · https://www.foodbusinessmea.com/us-chicken-paw-exports-to-china-fall-to-us75-9m-as-hpai-restrictions-tighten-trade/

[7] Drillr · Tyson Foods (TSN) · 2026-05-04 · FY2026 Q2 earnings call

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