British food and drink exports saw record growth in the first half of this year, rising by 8.5 percent on the same period last year, buoyed in part by a 35 percent increase in exports to China. The first half of the year saw exports of all British food and drink grow to 10.2 billion pounds ($13.14 billion), up by 8.5 percent and also representing the highest first half-year growth on record…Full Article: Aug 2017

Key Point

  • From January to June 2017, UK exports of salmon to China rose 61% (year-on-year increase), while crustacean and wine exports increased 179% and 98%, respectively. Other key agricultural exports included pork, milk, milk powder, whiskey, beer, and coffee.

ChinaAg Comments

  • In August 2017, as a result of the agreement between the UK government and China’s CNCA and AQSIQ, seven UK businesses were approved to export pork products to China including three based in Suffolk, Lincolnshire, and Derbyshire.
  • In late May/early June 2017, Unilever established the company’s China Consumer Product Safety Collaboration Center, a Shanghai-based facility designed to promote product safety and traceability. During the same time, Unilever signed agreements related to tea production with the provincial Chinese governments of Guizhou and Anhui. According to one of the agreements, Unilever plans to increase sustainable tea cultivation in Guizhou to 6,667 hectares. Unilever produces Lipton tea products.
  • In May 2017, UK’s Sirius Minerals and China’s DianHuang signed a sulphate of potash (SOP) mining agreement. As part of the agreement, DianHuang will purchase 150,000 MTs of polyhalite in 2021/2022 (within the first year of extraction) and will purchase 1 million MTs annually within five years (of first extraction).
  • In January 2017, British Secretary of State for Environment, Food and Rural Affairs, voiced optimism in increasing agricultural exports to China amid Brexit concerns. From 2015 to 2016, according to the Secretary of State for Environment, Food and Rural Affairs, UK exports to China increased 50%. During the same month, a freight train transporting consumable goods (e.g. household items, clothes, etc.) from Yiwu, Zhejiang Province, arrived in London.
  • In 2016, the UK exported GBP 439.5 million (USD 546.6 million) worth of food and beverage products to China. The most popular exported products were milk and cream powders, salmon, pork, whisky and beer. In terms of pork, according to the UK’s Agriculture and Horticulture Development Board, Britain exported 1.6 million MTs of pork to China.
  • In November 2015, the UK signed a deal to export up to US$151 million worth of barley to China (primarily to be used by the brewery industry) over the next five years. At the time, according to the British Secretary of State for Environment, Food and Rural Affairs, China will import approximately 150,000 MTs of British barley annually.
  • In January 2015, the UK’s Environment Secretary visited China in order to expand British exports such as pork and pig’s trotters (i.e. pig’s feet).
  • In 2014, Hong Kong imported 4.2 million liters of whisky and exported ~745,600 liters of whisky to mainland China, equating to roughly an 18% re-export rate. From 2010 to 2014, total re-export volumes averaged 28% of all imports. The United Kingdom was the top supplier of whiskey.
  • From 2010 to 2014, UK pork exports to mainland China increased from just under 2,000 MTs to 28,244 MTs while export to Hong Kong decreased from 17,311 MTs to 16,968 MTs. Overall, in 2014, UK exported more than 45,200 MTs of pork to mainland China and Hong Kong.
  • In July 2013, the UK-based Diageo Plc, the world’s largest liquor producer by sales, stated it will acquire the remaining shares of Sichuan Chengdu Shuijingfang Group, also known as SJF Holdco, for 233 million pounds ($357.6 million). SJF Holdco is major Chinese producer of baijiu.
  • In September 2009, Unilever opened its first Chinese Research and Development center in Shanghai.
  • In November 2005, the Unilever Hefei Industrial Park was opened in Anhui Province. Production of Lipton tea products was expected to begin in September 2006. At the time, Unilever also produced Lipton tea products in Beijing and Guangzhou, Guangdong Province.

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