Gelatin production in China has been boosted by a strong recovery in prices in the first eight months of 2001. Gelatin is one of China's traditional export goods and is widely used in various food products such as confectionary.

Mad cow disease and now the foot and mouth epidemic have affected the supply of pigs and cattle, the main sources of gelatin materials, and production has been low. Earlier this year prices rose dramatically to around $3.6-4.1 per pound - nearly double the levels of a year before. Global sales are also increasing at an annual rate of 3% to over $1.2 billion this year.

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