NZ firm targets China's rising meat demand

Eyeing rapid urbanization and rising disposable incomes in China, New Zealand-based Silver Fern Farms is upbeat about the Chinese consumption market and will continue to invest in the country, its top executive said.

Simon Limmer, chief executive of Silver Fern Farms, said: "China is one of the largest markets for meat. It consumes the most pork, poultry and mutton, and its consumption of beef and veal is second only to the United States."

"Fueled by the consumption upgrade, there is more room for further growth in this market down the line. China is the largest importer of New Zealand red meat, demonstrating its preference for New Zealand as a country of origin for the product category," Limmer said.

Data from the General Administration of Customs showed that in August, China imported 658,000 metric tons of meat, up 2.4 percent on a monthly basis. Among them, the import of beef rose 1 percent month-on-month to 273,000 tons.

In the first eight months, China imported some 1.70 million tons of beef, up 12 percent on a yearly basis, GAC said.

Customs data showed that between January and July, China imported about 4.10 million tons of meat, which was valued at $17 billion. The average import price of meat reached $4,156 per ton, 27.6 percent higher than in the same period in 2021.

Bo Wenxi, chief economist at marketing firm Interpublic Group China, said: "Amid the COVID-19 pandemic, consumers are paying increasing attention to the quality of food. China's consumption upgrade also promoted people's pursuit of higher-quality ingredients."

Limmer said: "We are confident in China's red meat consumption market. As the pandemic continues to increase Chinese consumers' concerns over health and nutrition, our grass-fed red meat products have become increasingly popular."

He noted that China's meat consumption market is much more complex than that of other countries and regions, as China is so vast — different areas and different ethnic groups in the country have different culinary traditions, adding to the difficulties in product localization.

Also, the country, as the world's largest and fastest-growing online shopping market, is changing the way the company gets the product into the market and the way it connects with its consumers.

To better target the Chinese market, in September, Silver Fern Farms launched "Pure Box" vending machine meals, a convenient meal solution for Chinese consumers to enjoy New Zealand grass-fed beef and lamb. It is also working with local partners on some ready-to-cook products that meet local consumers' tastes. Furthermore, it is promoting exchanges and cooperation with chefs from high-end food service niches in the hotel, restaurant and cafe segment.

"With their support, we can help create more red meat recipes preferred by Chinese consumers," Limmer said.

For the upcoming fifth China International Import Expo, the company is bringing its latest branded retail venison products. Until last year, Silver Fern Farms venison products were mainly available in catering packs in China and were only offered during festive seasons by way of Christmas and New Year gift boxes at Sam's Club.

However, after this year's expo, Silver Fern Farms' branded retail venison products, covering French venison racks, ribs, striploin and flank cubes, will be available through both online and offline channels, the company said.

"We believe that China will continue to foster a world-class, market-oriented business environment for foreign investment. This bolsters our confidence as we also continue to invest in capability for the team in China, developing targeted market programs and strategic customer relationships to deliver Silver Fern Farms' long-term China market strategy," Limmer said.