China’s meat producers seek more export opportunities in Russia

09-Dec-2014 - Last updated on 09-Dec-2014 at 10:04 GMT

Russia’s demand for meat has already driven exports from Chinese companies such as Shuanghui Group

Five more Chinese companies have filed requests with China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) to export meat products to Russia, as China’s meat sector sees growing export opportunities in the market.

The five companies are Shunxin Agriculture Co, in Beijing; Linyi Xincheng Jinluo Meat Products Group Co, in Hunan; the Delisi Group, in Shandong; China Yurun Food Group, in Jiangsu; and Sichuan Gaojin Food Co, in Sichuan.

It is still unclear whether AQSIQ will grant their requests: "So far, my company hasn’t been approved," said a senior spokesperson for the Shunxin Agriculture-owned Pengcheng Food Subsidiary. Pengcheng is a listed meat company in Beijing, with 75% of its meat products sold the capital and the rest sold elsewhere in China.

Yurun has yet to be approved as well, Jia Runqin, the company’s import and export manager, told GlobalMeatNews.

Russia’s demand for meat has already driven exports from companies such as Shuanghui Group, which has already exported at least 3,000 tonnes of frozen meat from its Heilongjiang province subsidiaries to Russia, GlobalMeatNews has confirmed with Dou Kai, general manager of a subsidiary, the Shuanghui Import and Export Trade Company.

The Pengcheng spokesperson said China’s government was encouraging pork exports in general, as the country had overcapacity.

"There are a lot more other Chinese companies that want to sell their meat to Russia, since Russia is one of countries that mainly consumes pork," said Dou Kai. He said the company does not yet know how much meat it will export to Russia next year.

"Companies that are in Heilongjian have the biggest strength to export meat to Russia," said Feng Yonghui, an analyst at Chinese pigmeat market advisor soozhu.com. He explained Heilongjiang has advantages in cost and transportation; it has a direct railway to Russia and the lowest pork price compared with all other Chinese cities, as local farmers have been hit by overcapacity.

The Pengcheng spokesperson added that a Russian inspection team had yet to examine China’s pig farms, which would be a significant step towards finalising deals. AQSIQ did not respond to interview requests from GlobalMeatNews.