Asahi eyes food market amid safety scare
Updated: 2011-07-13 17:47
By Yu Hongyan (chinadaily.com.cn)
A China-registered Japanese farm plans to tap into China's high-end food market with its quality and safe products amid the country's rising food safety concerns, the Beijing Times reported Tuesday.
In 2006, Shandong Asahi Green Source High-Tech Farm Co Ltd rented 1,500 mu (100 hectare) of farmland in Laiyang, Shandong province to produce certain kinds of vegetables and dairy products.
The company invested $21.9 million initially, adding $2.2 million each year, according to Gao Fengtao, an official at Muyudian county of Laiyang.
Asahi Green Source hasn't seen profits yet, but the manager of the company said they are not after profits, but want to set up an example for the sector, by supplying high-end products.
Although it sells milk only in Beijing, Shanghai and Shandong at 22 yuan per liter (1.5 times higher than average Chinese milk), sales are rising 20 percent each month, said the manager.
Unlike other foreign companies investing in Chinese farms, Asahi Green Source said it only targets the Chinese market.
Its manager told the paper that the company is confident of winning the recognition of Chinese people as well as the government.