How treating colds in China impacted the donkey supply chain in Africa

An article in CNN.com (September 29, 2016) available at http://www.cnn.com/2016/09/29/africa/china-african-donkeys/index.html describes a Chinese remedy, ejiao, used to treat colds and insomnia, that uses donkey gelatin. With a fall in the donkey population in China from 11 million to 6 million over the past 20 years as China shifts away from agriculture, there has been a surge in demand for donkeys imported from African countries like Niger and Burkina Faso. The surge in exports from these countries generated an inflow of foreign currency, but reduced the locally available animals, raised prices for other animals and caused a rush to slaughter that polluted water supplies. The result is now a ban on exports by Burkina Faso and Niger. Given the continued demand for donkey gelatin in China, how should African economies engage in a manner that minimizes disruption?  Given that Kenya and South Africa are scaling up their exports to meet Chinese demand, will Niger and Burkina Faso have to adapt quickly or lose access to this market? Given the projected continued demand increase in China, should global rules require the buyer to ensure environmental impact in the source country is minimized ?

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About aviyer2010

Professor
This entry was posted in Capacity, competitiveness, consumer, Cost, delivery, disruption, Global Contexts, ordering, Prices. Bookmark the permalink.

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