A trade mission to China is taking place this week to identify and deliver new business opportunities and to enhance customer relationships with China.

Led by the Minister for Agriculture, Food and the Marine Simon Coveney and in conjunction with Bord Bia, more than 70 executives from 35 Irish food and agriculture companies are participating in the trade mission. Companies such as ABP, Dawn, Kepak, Rosderra, Glanbia, Dairygold, Lakeland and the Irish Dairy Board are taking part. Keenans and Samco are also present.

China has become a very important market for Irish food and beverage exports, having trebled over the last three years. In 2013 exports grew by 40% to reach a value of €441m. Strong performance was seen in dairy (€268m), pigmeat (€39m) and seafood (€16m).

Main product

Dairy is the main sector, accounting for 70% of our total exports. Infant formula accounted for 72% of the overall dairy category and grew by 37% in 2013.

Pork plays a central role in China’s meat economy. China accounts for half of the world’s pork production and consumption. However, poultry is gaining in popularity, largely because it is cheaper than pork. Total Irish pork exports to China reached €34.4m last year.

Beef is not a traditional meat item in China and consumption of beef has been historically low (3% of overall meat consumption).

Following recent food scares, such as OSI Meats this year and melamine in 2008, food safety in China remains a fundamental issue for consumers and an increasing focus for the government. Such scandals have shifted the mindset of middle- to high-income consumers toward imported products.

With a population of 1.4 billion, or almost 20% of the global population, China is one of the largest consumers and producers of agricultural products. Growth and reform have led to fundamental structural shifts in China’s economy and economic growth has slowed in recent years.

While there is great opportunity in China for Irish food and beverage exports, it is not without its challenges.

Next week we dig deeper into these opportunities and challenges with more in-depth analysis of the market.