During a recent business matchmaking event held in Shanghai, 25 foreign dairy companies including New Zealand’s Fonterra and France’s Sodiaal managed to sit down with domestic (Chinese) distributors and buyers, such as JD and Bright Dairy, and discussed of possible agreements that could be finalised during the 5th China International Import Expo (CIIE), which will be held in November 2022.
China imported US$14.1 billion worth of dairy products in 2021, up 13.8% from 2020, said Ma Haihua, Director of the Public Service Department of the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-products. He explained that the continued growth in imports of dairy products has been supported by China’s open-door policy which includes lowering the Customs duties and relaxing market access for more than 50 countries and regions. Ma added that China still offers huge growth potential as per capita consumption of dairy products is far lower than world’s average.
Han Li, Vice President of Fonterra China said, “We have been promoting more sustainable and green development of dairy products along with our partners and suppliers. We saw CIIE as a wonderful way to showcase quality dairy products from New Zealand that meet the demand of Chinese consumers looking for an upgrade in product offerings.”
Li Xin, Marketing Manager of Sodiaal Dairy Trading (Shanghai) Co. whose parent company is the largest dairy corporation in France said, “We saw rapid growth in China in the past 5 years. With the increase in Chinese household incomes, our high-end milk, butter and cheese gained more recognition and double-digit growth.”
Meanwhile, smaller players are looking at ‘niche’ segments. For example, Shanghai Maui Dairy Products Co. is focusing on importing sheep milk from New Zealand. According to the company spokesperson, it has seen more than 15% growth in sales in the past 5 years, and it has used CIIE event to gain wider exposure.
New players like Tnuva, Israel’s largest food producer, is hoping to penetrate into China with its enriched protein drinks and Edam cheese.
