Ireland ready to taste success in emerging Chinese market
The sector has been identified by the Government as one of the most promising in regard to developing cooperation with the country.
A major trade mission to China last year, headed by Taoiseach Bertie Ahern, where food promotion strongly-featured, and a visit to Ireland the previous year by Chinese Premier Wen Jiabao have helped develop the business links.
Executives from food and drink companies, as well as from Bord Bia, Bord Iascaigh Mhara (BIM) and the Irish Dairy Board, were part of last year’s trade delegation, which included Agriculture and Food Minister Mary Coughlan.
Officials from her Department, Bord Bia, BIM and IBEC outlined the quality and safety of Irish food and drink controls to the Chinese and explained the sector’s export capability.
Some 120 firms along with representatives of the education institutions, were represented on the delegation, organised by Enterprise Ireland, which has offices in Beijing, Shanghai, Hong Kong and Guangzhou.
Ms Coughlan addressed two major food seminars in Beijing and Shanghai, which also provided an opportunity for the Irish visitors to directly engage with Chinese ministry and regulatory officials and with importers and traders.
Irish food exports to China have grown from less than €7 million in 2000 to an estimated €20m in 2004. Of the €20m, almost €10m is accounted for by dairy products, up from nearly €8m in 2003.
Ms Coughlan said the market potential in China is huge and Ireland is at the early stages of establishing a foothold in that country.
Bord Bia has meanwhile revealed that an increased focus on the opportunities for Irish products in Asia is part of its new strategy.
It aims to double Irish food and drink exports to the region to €400m by 2009, with the main opportunities being for meat and dairy products and for ingredients and drinks.
Bord Bia has appointed David Eiffe as its full-time Asia manager, and located a “hot desk” in Shanghai, which can be used by exporters visiting the region.
Kerry Group, the global ingredients, flavours and consumer food giant, already has a significant presence in China.
Last year, it announced a €20m investment programme including the establishment of manufacturing, technical and administrative facilities in Hangzhou.
Chief executive Hugh Friel said at the time that the programme will expand Kerry’s asset and customer base in China, through the acquisition of Lanli Food Industry and the establishment of a new manufacturing facility and technical centre on a 16-acre site.
Mr Friel said since the Group opened its first representative office in Shanghai in 2000, its ingredients and flavours and fragrance divisions have progressively expanded its customer base in China.
Kerry Bio-Science division has further developed its presence and technology offering in the region.
All Kerry businesses’ headquarters in China will transfer to the new facilities in Hangzhou.
This will serve as an important platform for the Group in a rapidly-evolving market with a potential 1.3 billion consumers.
Mr Friel said: “Kerry’s food ingredients and flavour technologies will be focused on the significant growth opportunities in China in the food processing and food service sectors - particularly in nutritional, dairy, flavoured noodle, brewing, flavoured beverage, snack and bakery market segments.”
During her visit last year Ms Coughlan also signed a protocol with her Chinese counterpart, Li Changjiang, that established the basic framework for exporting Irish pork to China. The minister said this is awaiting complex veterinary certification required by the Chinese.
Ms Coughlan said she understands that other countries are also experiencing delays of this nature.
