elders drives red meat sales in china

Elders drives red meat sales in China

MARK PHELPS IN SHANGHAI

31 May, 2012 09:37 AM


MEET the team that is helping to drive Australian beef and lamb into the rapidly developing and increasingly affluent Chinese market.
Trading as Elders Fine Foods, the Shanghai based operation has successfully targeted high end international brand hotels and restaurants across China.

Elders Fine Foods general manager Craig Aldous said the 2008 Beijing Olympics and the 2010 World Expo in Shanghai had resulted in signicant changes in how China viewed food quality.

"There really was a seismic shift and increased demand for the premium product that Australia produces," Mr Aldous said.

"Chinese people suddenly became far more aware of food quality.

"In years past the demand was driven by ex-patriots living and working in China and wanting high quality western food. NOw the market is absolutely driven by Chinese demand."

And while economic growth in China may have offically slowed, the continued pace of development is staggering.

"Some of our customers may be reporting a 10 percent drop in activity," Mr Aldous said. "But that volume is being easily swallowed by the sheer numbers of new hotels that are being opened.

"For example, another 170 international brand hotels are expected open in the next 18 months.

"That's another 340 to 500 top level resaurants that will demand high quality product."

That growth has seen Elders Fine Foods triple its business in the past three years through its headquarters in Shanghai and offices and warehouses in Beijing and Shenzheng.

Elders Fine Foods is trading about 20 tonnes of beef and 5t of lamb a month.

The product mix has also changed.

"Five years ago we were not selling any Wagyu because it not in demand," Mr Aldous said.

"Now it represents 20-25 percent of our beef sales."

Elders Fine Foods also supplies seafood, wine, beer and some other specialty products including venison.

One challenge that remains in place is the difficulty of selling white wine into China.

Despite white wine's arguably superior suitability to Chinese cruisine, red wine simply because of its colour remains the preference. In China the colour red symbolises good health and good luck.

* Mark Phelps travelled as a guest of Elders to China.