Institute draws producers' attention to China's great appetite for frozen food
Thai exporters should not overlook the potential growth of the frozen-food market in China, the National Food Institute (NFI) warned recently.
The warning came despite the 57-per-cent increase in exports of Thai food products to China since a free-trade agreement between the two countries took effect in October 2003. Research by the NFI found that China could be a great purchaser of Thai frozen foods. However, Thai exporters have largely lost their share the Chinese market after shifting their focus to other markets such as Japan, the United States and European Union countries. Nuchjarin Ketnil, an information specialist with the NFI, said Thailand could still make headway in China's frozen-food market, especially through sales of frozen seafood. "The frozen-food market in China is considered a premium products market," she said, adding that the main purchasers of frozen foods in China are wealthy city dwellers. Nuchjarin referred to an analysis by Euromonitor International, which predicted that the frozen-food market in China would be worth 59.5 billion yuan (Bt281.4 billion) in 2008, a 36-per-cent rise from the 43.58 billion yuan spent on frozen foods in 2003. Of the frozen foods sold in 2003, 32 per cent were seafood products, 21 per cent were poultry and 10 per cent were other meats, with other non-meat products making up the rest. Euromonitor wrote that the North and Northeast regions of China would be the fastest growing markets for frozen foods, with 43 per cent more sales expected in 2008 than 2003. Following them will be the central region, which is expected to grow by 36 per cent. Nuchjarin named three products with which Thai exporters will have the best chance of penetrating the Chinese market. Firstly, seafood used in dim-sum cooking is predicted to grow by about 40 per cent between 2003 and 2008 because dim-sum restaurants - common almost everywhere in China - are seeking to add value to their products by cooking with seafood instead of just pork. Secondly, snack products, especially those that claim to be healthy, are expected to grow 28 per cent by 2008. Lastly, sales of chicken are predicted to grow by 32.4 per cent, largely due to it being perceived as a healthy alternative. Nuchjarin added that the market for vegetables such as peas, mushrooms and baby sweet corn was also expected to grow, but only slightly.
Chalida Ekvitthayavechnukul The Nation
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