Food exporters told to tap into China
Exporters have a unique opportunity to tap into the growing demand for foods in China, according to Reorient Group.
"While Chinese imports overall are well down year on year in value and volume terms and hence Chinese demand would appear to be an unlikely driver of Thai exports, one category of Chinese imports, food, is growing substantially," Uwe Parpart, executive managing director and chief strategist of the group, said yesterday.
China is shifting from export- to domestic-demand-driven growth, as outlined in the next five-year plan to be discussed and approved at the Chinese Communist Party’s central committee’s plenary from October 26-29.
The People’s Bank of China’s third "double cut" this year is deemed part of the measures to maintain growth and support the transition, he said.
"That provides a unique opportunity for Thai exporters who can discern and identify the food items in greatest demand."
Food is a critical category of consumption with large growth potential as the Chinese consumer is, and will remain, distrustful of foodstuffs made in China. Food imports in September were up 24 per cent year on year by volume, he said.
The investment firm based in Hong Kong said mainland China’s simultaneous cuts in interest rates by 0.25 percentage point and the required reserve ratio by 0.5 percentage point for commercial banks was part of Premier Li Keqiang’s pledge to pull out all the stops for maintaining stable economic growth.
