Pig tails, feet and internal organs...?

Westerners may think they are the worst and cheapest parts of a pig for eating, compared with the pig's belly or ham hock.

But for Chinese, these parts can be made into some of the most delicious dishes on a Chinese table.

Some Irish citizens see this as a business opportunity, and want to begin exporting their meat products to China.

The two countries signed a protocol on pork trade last Tuesday.

Irish Prime Minister Bertie Ahern said the agreement is "a watershed in the active initiation of trade in meat products between the two countries."

The Irish side will take this step further in the future in relation to Irish beef, Ahern said at the Seminar on Irish Food and Drinks in Beijing.

China bans beef imports, due to BSE (bovine spongiform encephalopathy) cases that have been reported in some Western countries.

Philip Carroll, director of meat policy under the Irish Department of Agriculture and Food, said the successful co-operation on pork between the two countries will extend to beef when the ban is lifted.

He said a series of discussions, seminars and field trips will be carried out in the coming years.

On this visit, 30 Irish business people from 20 companies came to China in a bid to seek business opportunities.

Ireland is sending out its biggest foreign trade mission to China, Carroll said.

Many Irish enterprises have seen market potential from their experiences in Hong Kong, and say they are more excited to be able to tap the market of 1.3 billion citizens, Carroll said.

Speaking of the advantages over other European meat exporting countries, Carroll said Ireland's pleasant environment offers the possibility of abundant natural products.

"Ireland is not a industrialized country. Our great geographical characteristics, fresh air and clean water guarantee the quality of our products," he said.

Irish Agriculture Minister Mary Coughlan stressed on the food safety system in the country. "We comply to the European Union (EU) standards. All our guarantees are measurable, comparable, internationally benchmarked as well as being scientifically verifiable," she said.

John Madden, chief executive of Glanbia Meats, one of the largest pork producers in Ireland, said the company will begin business with lower-valued products in China.

"Pig tails, feet and internal organs are profitable in China due to the different diet, compared to the European market. While we export pig bellies to Europe, there is still a huge amount of lower-valued products available. We aim to seek a balance in our production and sales," he said.

Glanbia Meats exports 10 thousand tons of meat to Japan and six thousand tons to Hong Kong annually.

"We hope to shift the six thousand ton export from Hong Kong to the mainland, since the profit there is even higher," Madden said.

The company currently has two agents in China.

"If the business goes smoothly, we will think of introducing a production base in China," he said.

Madden hopes the company can take the advantage of these early opportunities and develop the Chinese market.

"The price of imported low-end products are about 20 to 30 per cent cheaper than domestic products, which attracts foreign companies to the market," said Li Shuilong, chairman of the China National Meat Association.

Statistics from the association indicate China imported 640,000 tons of meat and exported 470,000 tons in 2003. Since China only exports high-end products and imports mainly low-end products, the trade surplus reached US$120 million.

Other food products

Irish food exports to China were close to 20 million euros (US$27.2 million) last year, but Carroll pointed out the figure itself marked the very substantial rate of growth in trade in the past three years.

Although meat products are a major focus of Ireland's current efforts to establish trade links with China, the country already has a very active dairy products and drink sector traded in China.

"We also export fish, and a consistent pattern of growth in trade with China has developed in recent years. We would like to see a major expansion in these areas in the future," Carroll said.

Ireland, an EU member, is an agricultural country, with 4.5 million hectares devoted to agriculture. The nation's livestock numbers 4.5 times greater than population, and more than 80 per cent of the livestock are exported.

The output of agriculture and food amounts to 15 billion euros (US$20.4 billion), accounting for 10 per cent of the country's gross domestic products.

(Business Weekly 01/26/2005 page8)