From one land of dragons to another

Welsh food and drink producers prepare to make an impact at flagship industry event in Shanghai

Since 1904, the Royal Welsh Show held each summer in the idyllic village of Llanelwedd, near Builth Wells, in Powys, has showcased the cream of the country's livestock, food and drink.

Organized by the Royal Welsh Agricultural Society, it is considered one of the biggest shows of its type in Europe.

In July, in its vast "new look" food hall, 60 producers jostled for customers coming from across the world, offering top quality lamb and other meats, dairy, bakery and alcoholic drinks of varying strength and flavor.

But for a chosen few the event was being seen as the perfect rehearsal for possible participation in an altogether larger show, much further east, later in the year.

The Welsh government is now organizing a series of trade exhibitions, culminating in its Welsh Pavilion at the giant Food and Hotel China Exhibition in Shanghai in November, the biggest event on the Chinese food and hospitality calendar.

According to the most recent figures from the Welsh government's food division, food and drink exports from Wales to China rose 82 percent last year, to 201 million pounds ($333 million; 254 million euros), making China its second largest non-EU market.

Keith Smyton, head of the division, predicts that will continue to grow significantly, driven by increasing disposable income, urbanization and an escalating taste for international food, and quality, in China.

He says the Welsh food and drink sector is one of the country's key priority sectors, and a significant employer, accounting for turnover of 17.3 billion pounds, and 170,000 jobs.

Among the Welsh export list to China are alcoholic drinks, mineral water, sport drinks, cereal, biscuits, cakes, confectionery, seafood, sea salt, cheese, milk, and health supplements.

Smyton considers the Shanghai event as a big opportunity for Welsh companies seeking to identify new opportunities in China and to develop existing trade in the region, and his department is in the middle of recruiting a range of top Welsh producers to exhibit.

"China is one of our key export markets, and we have demonstrated that through continuing presence at some of China's premier food and drink trade exhibitions," he says.

"We are determined to support Welsh producers to export their quality products to there. But we are also keen to work with our colleagues in China to help manufacturers to source Welsh raw materials such as milk, cheese and red meat, and for them to establish a manufacturing base in Wales, given its nearness to the rest of the UK and Europe."

His added line on Welsh meat, considered the world over as of the highest quality, is particularly telling.

Welsh food and drink exports to China received a significant boost in June, after industry agreements were signed between the British and Chinese governments during Chinese Premier Li Keqiang's visit to the UK.

British Prime Minister David Cameron said Britain and China were in negotiations that could result in the export ban on British beef and lamb being lifted for the first time since the outbreak of BSE, commonly known as mad cow disease, 30 years ago, which could contribute 120 million pounds annually to the British economy.

Last year, the former UK secretary of state for environment, food and rural affairs Owen Paterson visited China with Cameron, where he secured a 45 million pound export deal for British pork, and a deal on beef and lamb is still being sought.

Gwyn Howells, chief executive of Hybu Cig Cymru (Meat Promotion Wales), says: "We believe that China is a very important market for Welsh lamb. Our market research has shown that it is exactly the kind of premium quality meat that is sought by the growing number of affluent consumers in the country.

"We have had a number of very positive meetings with Chinese government officials both in Wales and in Beijing, and I look forward to the day when Welsh lamb is available in shops and restaurants across China."

Zhou Xiaoming, minister counselor for economic and commercial affairs at the Chinese embassy in London, says: "There are some high-quality manufacturers in Wales who cater to the needs of Chinese customers, who in recent years have developed a great interest in high-quality Western products."

The Welsh government has also just agreed on a partnership with the China-Britain Business Council, by which it will be able to use the offices of the British Chamber of Commerce in key overseas markets, to help in their offices to help firms find and grow business in China.

Graham Morgan, a director of both South Wales, and Mid Wales chambers of commerce, thinks that as yet the Chinese market is "probably not being exploited to the degree it could be", and is keen to grow Welsh links with the world's second largest economy.

"There you have a developing market (China) where there are increasingly affluent individuals who are after foreign brands and commodities. It's a massive country, and Wales has to work out how our products are best sold there."

One company which is well on its way to creating a strong presence in China is the Good Carb Food Company.

Nigel Bryan, the managing director, says its Chinese journey began in Shanghai at the 2011 Food and Hotel China, as part of a delegation of UK and Welsh companies.

Good Carb's business model means it appoints traders (retailers, health clubs and therapists) as stockists of its products, a selection of granola bars, breakfast cereals and muesli.

After that first trip it appointed one in Shanghai, Nanjing Biwelyuan Trading, and with support from the Welsh government, it has attended the event every year since and now also sells in the south of China through another company, Rostabuyer in Guangzhou.

"It is clear that the Chinese are acquiring a taste for different types of Western food, and granolas is one of them," Bryan says.

The company's main brand is Lizi's, a granola that comes in various flavors.

Its latest product is called On the Go, which is a portion of original granola in a self-contained pouch that also doubles as a bowl and comes with a disposable spoon. The packet contains lactose-free milk powder so all the buyer needs to do is add a few drops of water, says Bryan.

"It is expected to be very appealing to the Asian market," he adds.

Another Welsh company enjoying considerable Chinese success is Trioni Ltd, a dairy firm, whose founder Laurence Harris says the fact its Daioni milk products are "European and organic" is crucial in attracting attention, especially in light of recent milk powder scandals in China.

"The Chinese place British dairy systems in high regard, and recognise the type of quality and integrity with which Trioni approaches the export of its home-grown produce," he says.

In its first year, the company has expanded its exports to China six-fold, and now sends 132,000 litres, about six container loads of milk annually.

Harris says he believes his sales to China will remain strong, especially since being awarded Chinese organic certification.

Arguably one of the highest quality food exports to China is Welsh lobster, says Trisan Wood, the managing director of the Lobster Pot, a family-run business specializing in the supply of the shellfish to customers in the UK and the rest of Europe.

He is already eying the estimated 200 tons of live lobster and crab exported to China last year, and says that is expected to grow 25 percent over the next year.

For China Daily

(China Daily European Weekly 09/05/2014 page21)