James O’Donnell, Asia Manager, Bord Bia – The Irish Food Board
Irish Food & Drink exports to Greater China recorded strong growth in the first six months of 2019 increasing by 18% to reach €457m – a record return in the history of trade with China. All key targeted categories showed favourable growth.
Beef exports performed strongly reaching direct sales of €14m to mainland China. Exports to China are an important factor in lifting overall returns as the market opportunity offers additional outlets for forequarter beef. Present growth is the limited by the number of factories approved for China. A successful outcome to this week’s inspection visit by Chinese officials is critical for further growth.
Dairy exports to greater China were worth over €300m up 5% while to the mainland the increase was 13% reaching €228. Irish exports of dairy are mainly destined for the infant formula sector. This is a particularly strong performance in light of the fact that the birth rate is decreasing. Estimates indicate birth rates decreased by 2m in mainland China in 2018. Bord Bia has a number of insights projects underway to identify alternative opportunities in the market around the bakery and cheese (pizza) markets.
The pork trade in China is particularly buoyant at present where import prices have reached a record high. ASF has significantly impacted domestic production, expected to be back in the region of 30-40% this year. Pigmeat exports for the first six months reached over €67.5m – reflecting an increase of over 70%. The outlook for pigmeat for the remainder of the year is very positive.
The forth key priority sector for exports is seafood which reached €33.5m. Mainland China accounts for growing part of our shellfish exports and is particularly important for brown crab, whelk and oysters.
Note: Greater China includes Mainland China, Hong Kong, Macau & Taiwan)