Food exporters urged to tap China market
Trust in Thai quality cited among others
Thai food exporters have been urged to reap greater opportunities in the China market, amid the economic slowdown in euro-zone countries, as there is higher demand for food consumption in China and consumers there have greater trust in the quality of Thai food.
Experts urged exporters to cash in on the advantages of the Asean-China free-trade agreement, and concerns about food safety among Chinese consumers.
David Lau, vice president and chairman of Food Ingredients and Ready-to-Eat Processors’ Group, said that Thai exporters should urgently penetrate the China market and benefit from the FTA, amid economic difficulties in the euro zone.
“Thai food exports to China are still low compared to food imported from China, but there is high opportunity to grow in the China market. The government should urgently help eliminate non-tariff barriers and value-added tax [VAT] surcharge on Thai food exports to China to facilitate trade growth,” said Lau. Despite zero import tariff, Thai food and goods exports to China shoulder 13 per cent VAT, which is a huge burden for Thai exporters and make them less competitive. Lau called on the government to urgently talk to Chinese authorities and eliminate the VAT on Thai food and agricultural goods exports to China.
Food exports from China to Thailand are currently subjected to zero import tariff and VAT, while Thai exports to China shoulder a 13-per-cent VAT.
Lau pointed out that many Thai foods, in particular tropical fruits, processed foods, and ingredients, are in high demand in China. Although economic growth in China is expected to be slower this year, the emerging growth of middle-class people in China will increase the demand for food consumption.
To do business in China, Lau also advised Thai exporters to register their trademark in order to prevent counterfeit problem.
Zhi Cai Zheng, executive director of Guangdong Institute of Food Science and Technology, said that food-safety problems in China in the past few years have led to demand for imported food. Thai foods, which are recognised for their quality and safety, have a bright future in the China market. “More than 600 million Chinese are currently living in the urban areas and they spend as much as 36.7 per cent of their income on food. If Thai businesses study the market thoroughly and comply with regulations and business traditions in China, Thai exports will find great success in this massive market,” said Zhi.
Wenwen Jiang , deputy general-manager of Worldex China, a co-organiser of the China Guangzhou International Food and Beverage Trade Fair 2012, said that Chinese people tended to favour foreign foods, in particular Thai food.
Demand for foreign food imports have risen gradually each year, in particular in the Pan-Pearl River Delta Region. Guangdong region is the highest potential gateway for Thai food exports as it is a centre for distributing goods to other parts of China, she said.
Guangzhou City in Guangdong region will host the first International Food and Beverage Fair (Food Hospitality World 2012) from November 29 to December 1. About 500-700 exhibitors from China, Asean, and other countries are expected to join, while more than 30,000 international visitors will attend.
