Agriculture and Agri-Food Canada
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Agri-Food Trade Service
CAN NEA Agri-Food Update
January 2009
A quarterly newsletter presented by Canada's agri-food team in North East Asia
Table of Contents
Gaining Recognition and Building Markets
Agri-Food News from the Region
Trade Leads for Canadian Companies
Trade Commissioners @ your service
CHINA
Ottawa: Stéphanie Parisien
parisienst@agr.gc.ca
Post: Grace Kim
grace.kim@international.gc.ca
HONG KONG
Ottawa: Stéphanie Parisien
parisienst@agr.gc.ca
Post: Houston Wong
houston.wong@international.gc.ca
JAPAN
Ottawa: Lauren Lavigne
lavignel@agr.gc.ca
Post: Amitabh (Amit) Dutt
amitabh.dutt@international.gc.ca
SOUTH KOREA
Ottawa: Inge Vander Horst
vanderhorsti@agr.gc.ca
Post: Darcie Doan
darcie.doan@international.gc.ca
TAIWAN
Ottawa: Chris Anderson
Chris.Anderson@agr.gc.ca
Post: Hugh Moeser
hugh.moeser@international.gc.ca
UPCOMING TRADE EVENTS IN NEA
February
Canadian Better-for-you Food Products Virtual Trade Mission, Greater China, Feb 25 (Evening of Feb 24th in Canada)
The Canadian Wine Seminar & Tasting, Rihga Royal Hotel, Osaka Japan, February 26, 2009
March
FOODEX Japan, Makuhari Messe (Chiba City, near Tokyo), March 3-6
www.ats.agr.gc.ca/foodex
Food Ingredients China (FIC) 2009, Everbright Centre, Shanghai, China March 25-27, 2009
Incoming Buyers Mission around SIAL Montreal (buyers from China, Japan and Taiwan will be in Toronto, Montreal and Vancouver) March 30 – April 3.
Japanese Seafood Buyers' Mission , March 15-20, 2009 - Contact AAFC if interested in meeting with buyers in Vancouver or Boston
April
World of Pet Supplies, Hong Kong Convention and Exhibition Centre,
Hong Kong, April 20-23
http://worldofpetsupplies.hktdc.com
China National Grains, Oilseeds and Feed Conference, Beijing, China, April 9-10, 2009
May
Seoul Food & Hotel 2009, Korea International Exhibition Center,
Korea, May 13 – 16
http://seoulfood.or.kr
HOFEX 2009, Hong Kong Convention and Exhibition Centre, Hong Kong,
May 6-9
http://www.hofex.com
SIAL China 2009, Pudong, Shanghai New International Exhibition Centre, May 19-21, 2009
Global Pig Forum, Chengdu, Sichuan Province, China, May 14-15, 2009
Agriculture Inputs and Machinery Show, North China, May 2009
2009 China (Inner Mongolia) International Dairy Show, May 9-11 2009
World Dairy Expo & Summit - Hangzhou, Zhejiang Province, China, May 30 – June 1, 2009
June
FOOD TAIPEI, Taipei World Trade Center (TWTC) Nangang Exhibition Hall,
June 23-26, 2009
www.foodtaipei.com.tw
FHC Beijing 2009, China National Agriculture Exhibition Centre, June
9-11, 2009
http://www.fhcbeijing.com.cn
August
Food Expo 2009, Hong Kong Convention and Exhibition Centre, Hong Kong,
August 13-17
http://hkfoodexpo.hktdc.com
International Conference & Exhibition of the Modernization of Chinese Medicine & Health Products, Hong Kong Convention and Exhibition Centre, Hong Kong, August 13-17 http://icmcm.hktdc.com
Natural Products Expo Asia 2009, Hong Kong Convention and Exhibition
Centre, Hong Kong, August 27-29
http://www.naturalproductasia.com
September
Restaurant and Bar 2009, Hong Kong Convention and Exhibition Centre,
Hong Kong, September 1-3
http://www.restaurantandbarhk.com
October
HI Japan 2009, Tokyo Big Sight Exhibition Centre. Oct 14-16,
2009
http://www.hijapan.info/eng/index.php
November
Hong Kong International Wine & Spirits Fair, Hong Kong Convention
and Exhibition Centre, Hong Kong, November 4-6
http://hkwinefair.hktdc.com
Wine & Gourmet Asia 2009, Cotai Expo, Macao, November 5-7
http://www.wineandgourmetasia.com
GAINING RECOGNITION AND BUILDING MARKETS - Report for Oct - Jan
SOUTH KOREA
The credit decline of the Korean won is affecting
buyers of Canadianmeat and seafood
Buyers are complaining of the difficulties associated with obtaining
their usual 90-day Usance letters of credit from Korean banks. This
difficulty stems from an overall credit crunch in Korea brought on by
the global financial situation as well as declining terms of trade caused
by sharp recent declines in the value of the Korean won. Commodity buyers
who purchase from the US are currently making heavy use of the American
GSM credit program. Post is looking into the buyer credit programs offered
by EDC to see if any of these might be available to Korean buyers of
agri-food commodities.
Canadian icewine tasting on Korean high-speed train
in October
This icewine tasting aimed to raise the profile of Canadian icewine
in conjunction with a promotion of Canadian films showing at the Busan
International Film Festival.The tasting showcased major Canadian icewines,
particularly to business men and women travelling in first class between
Seoul and Daejeon, two major citiesin Korea. A Brand Canada banner,
posters and icewine materials were displayed. Two importers, Leah Trading
Co. and Vinissimo, supplied vidal icewines. The overall reception of
the taste of icewine was positive. The event could also leverage media
attention by publishing it in the KTX monthly magazine in conjunction
with Canadian cultural events. While it is difficult to measure the
impact of this one-time event directly on icewine sales, it is believed
to have raised consumer awareness and will lead to increased sales of
Canadian icewines in the long-term.
CHINA
2008
Canadian Seafood Promotion
2008 Canadian seafood promotion (Chongqing) took place in Chongqing
from mid Oct to mid Dec. It's the first time that 4 renowned food services,
namely Chongqing Little Swan Hotpot Restaurant Chain, Chongqing a Xingji
Restaurant Chain, Days Inn Hotel, and Howard Johnson Hotel worked together
under the umbrella of promoting Canadian seafood. In total 70 innovative
recipes were created in variouskinds of cooking styles (traditional
western style, Sichuan cuisine, Cantonese cuisine and even Chongqing
hotpot!) It's conservatively estimated that over 30,000 persons tried
Canadian seafood and enjoyed its high-quality and fresh taste during
the promotion.
Considerable quantity of Canadian seafood was consumed, including but not limited to 700 kg of lobster, 280kg of geoduck, 240kg scallops, 530kg sablefish, 350kg snow crab, 350kg blue mussel. Local media exposure was prominent, with 12 Medias (3 newspaper, 3 magazines, 4 websites, 2 local TV channels) reportingon the event. Chongqing Dayu Website (Chongqing's No.1 gateway website with around 5 million hits daily) offered a special edition of 2008 Canadian Seafood Festival at http://cq.eat.qq.com/zt/2008/Canadian/index, which contains various info including 2008 seafood festival, Canadian seafood industry, 12 key seafood species, free downloading of 2008 Canadian seafood recipe and 2009 seafood calendar.
Canadian Icewine Promotion, December 12, 2008
The Consulate General of Canada organized a Canadian Icewine Promotion
in Shanghai on December 12. With active participation of 4 in-China
Canadian Icewine importers and distributors, the activity successfully
met the key objective of promoting VQA and Canadian Icewine, especially
educating local wine professionals on how to identify Canadian Icewine
from fake products.
A total of 11 brands of VQA Icewine products were promoted. 57 wine professionals from local business community and F/B media attended the event and tasted the Canadian icewines.
Official Residence Seafood Dinner
On December 17, 2008, a Canadian seafooddinner was held at the Consul
General Susan Gregson's Official Residence. Guests invited to this dinner
are owners, head chefs of top seafood restaurants in Shanghai. The objective
of thedinner reception was to express appreciation and to encourage
the restaurants' usage of Canadian seafood. OR Chef Zhao prepared all
the dishes featuring Canadian lobster, scallop, smoked salmon, oysters
and geoduck. Maple syrup, Canadian white wine and Canadian Icewine were
also featured at the dinner.
The dinner promoted not only Canadian seafood capabilities but also raised the profile of Canada among the guests. As a direct result of the event, one of the invited restaurants conducted a Canadian seafood festival promoting lobster, arctic clam and scallop with support from the post. Another joint seafood promotion event is under discussion. Post will follow up with the invited guests to explore further areas of collaboration.
First in-store promotion of Canadian pre-packaged
food and beverage products
The First in-store promotion of Canadian pre-packaged food and beverage
products in Beijing was held from Dec. 26, 2008 to Jan. 16, 2009 at
ten OLE supermarkets across the capital city. A wide selection of Canadian
products were made available to the store customers, including canola
oil, candies, dried cranberry, glacial water, nougat, biscuits, ice
wine, red wine, white wine, and maple syrup. Customers also had the
chance to win gifts prepared by the Embassy.
The Grand Opening of the Festival took place at the World Trade Center OLE Supermarket on December 29, 2008. Representatives from the Embassy of Canada in Beijing, China Resources OLE and various suppliers celebrated this event with media and distinguished guests.
This Festival is sponsored by Agriculture and Agri-Food CanadaCanadian Embassy in Beijing, Alberta China Office, Ontario Ministry of Agriculture, Food and Rural Affairs, Natural Glacial Waters, Blossom Winery, Pelee Island Winery, and Beijing Kanuola Trading Inc..
Canadian Swine and Feed Mission to Hubei
Mr.Martin Charron, Acting Trade Program Manager in the Embassy, led
a Canadian swine and feed mission to Wu Han, Hu Bei Province late fall
2008. The Embassy, in cooperation with AAFC, posts in Shanghai, Chongqing
and Guangzhou organized the program and participated in the China National
Swine Industry Development Conference organized by the Chinese industry.
Canadian Swine Exporters Association, Canola Council of Canada, Pulse
Canada and other key Canadian swine and feed exporters joined the mission.
Hu Bei is one of the main pig producers in China. The mission met with local government officials responsible for the livestock and feed sector, over10 major local swine companies and approximately 50 new qualified Chinese importers from across China during the meetings, roundtable discussions and dinner networking events. A separate meeting with COFCO was arranged for Canadian companies to purpose its $1.3 billion USD swine project. Each of the Canadian companies had a chance to make presentations highlighting their capabilities/projects and the benefits of their production systems. Several qualified trade leads have been identified. 5 cooperation areas with Canada have been targeted by the Hu Bei government.
HONG KONG
Canadian Catalogue Show and Macao International
Trade Fair in Macao, October 13-26, 2008
A Canadian Catalogue Show at the Macao Business Support Centre and the
13thMacao International Trade and Investment Fair was completed in October.
Canadian food and beverage promotion materials, posters, food associations
and companies' leaflets were displayed to promote Canadian product variety.
New Brunswick Fisheries Minister Visit and Delegation
to Hong Kong and Macao, November 1-3, 2008
Minister Doucet and four New Brunswick seafood companies visited Hong
Kong and Macao to meet with seafood importers and hotel contacts before
heading to the China Seafood Expo in Qingdao. Post scheduled one-on-one
business meetings for delegates to discuss opportunities with local
seafood suppliers. Snow crab, rock crab, lobster, sea cucumber, herring
roe, herring, mackerel, Greenland halibut and whelk were their focused
items. New Brunswick government is interested to participate in upcoming
trade and product promotion activities.
Canadian Food Fair at Jusco in Hong Kong, November
6-19, 2008
Two buyers of Jusco supermarkets to visited Alberta and British Columbia
in May 2008, to source products for a 14-day Canadian Food Fair in nine
outlets in Hong Kong. Initial Canadian product sales are valued at C$388,000.
The promotion was successful in introducing new brands and products
to the Hong Kong market. The promotion featured 59 brands and 287 SKUs
(90% were new to the Hong Kong market). The Canadian Consulate General
in Hong Kong, Agriculture and Agri-food Canada, the Alberta Government,
Canada Pork International, Canada Beef Export Federation and local suppliers
were joint event partners. Jusco is planning a follow-up Canadian Fresh
Food Promotion in the New Year.
Mini Wine Education Expo in Hong Kong, November
24-25, 2008
In order to promote their professional wine courses, the Open University
of Hong Kong organized a mini on-campus wine education promotion. With
the support of a key local supplier, a wide array of Canadian wines
was introduced to university staff and students at the complimentary
wine booth. Thirty interested students also attended an evening Canadian
Wine Seminar, where more information was provided on our wine industry,
followed by a wine tasting event. Australia and Chile were also part
of the event and held education seminars. Our local supplier made on-site
wine sales of red, white and Icewine. Post is invited to participate
in the university's future wine workshops.
Canadian Seafood Promotion at Treasure Lake in Hong
Kong, December 1-31, 2008
In cooperation with AAFC, Alberta Government, the Canadian Sablefish
Association, the Underwater Harvesters Association and Clearwater Seafoods
Limited Partnership, the consulate general in Hong Kongworked with the
Treasure Lake Chinese Restaurant Group to promote Canadian canola oil,
wild sablefish, scallops, live geoduck and wild lobster to the restaurant
customers. Six restaurants were selected to serve four delicious Chinese
dishes featuring these items. Two thousand live lobsters were consumed
in that month. With this encouraging result, the restaurant group has
the confidence to continue highlighting Canadian lobster in various
menus.
JAPAN
Health
Ingredients (HI) Japan, October 15-17, 2008
Agriculture and Agri-Food Canada (AAFC) and the Canadian Embassy in
Tokyo organized the Canadian pavilion at Health Ingredients (HI) Japan.
Held in Tokyo, October 15-17, 2008, the Canadian pavilion featured 9
exhibitors from 4 provinces. HI Japanis Asia's largest trade show for
health ingredients and support services, which in 2008 featured over
580 exhibitors from 20 countries, and attracted 42,000 buyers. Inaddition
to the Canadian pavilion at HI Japan, a table-top reception was organized
at the Canadian Embassy in Tokyo where exhibitors and buyers could network
in advance of the show.
Japanese Processed Food Buyers Mission to Canada,
Nov 24-28, 2008
Fourwell respected Japanese buyers visited Montreal, Toronto and Vancouver
the week of November 24, 2008 to meet with Canadian processed food suppliers.
The four buyers, Nihon Ryutsu Sangyo Co. Ltd. (Nichiryu); Japan Green
Tea Co. Ltd.; Kokubu & Co. Ltd.; Matsuya Foods Co. Ltd.; were all
very impressed with the quality of and range of Canadian products, and
discussions are on-going with several Canadian suppliers.
Japan Seafood Vision 2025 seminars
Agriculture and Agri-Food Canada organized a series of seminars in Vancouver,
Moncton, and St. John's the week of January 12, 2009 to outline the
trends, market developments, competitive pressures, demographic changes,
new product requirements and market challenges likely to take place
in the Japanese seafood industry over the next 15-20 years. Companies
were quick to register for these seminars, and evaluations showed that
all participants found the information that was presented to be extremely
useful to their businesses. A report and a copy of the presentationare
available electronically for any interested companies.
TAIWAN
Taiwanese Delegation Visit to Expo East, Sept 11-14,
2008, Toronto
The market for health food and functional foods and nutraceuticals (FFN)
in Taiwan was estimated at CDN$800 million in 2006, representing one
of Taiwan's fastest growing sub-sectors. Imported products accounted
for at least 39% of market share. Drivenby high disposable incomes and
GDP growth rates, an aging population and lifestyle-related diseases,
Taiwanese consumer spending on FFN is growing year after year. Local
manufacturers are constantly looking for new and innovative ingredients,
products andtechnologies. The Canadian Trade Office in Taipei organized
and led a mission of seven delegates from four Taiwanese organizations
to Canada. The objective of the mission was to promote Canadian natural
health food ingredients and products to Taiwanese companies. This was
accomplished with the collaboration and support of the Canadian Health
Food Association (CHFA), Ontario Provincial Government, and AAFC headquarters
and Regional Office in Vancouver. Activities included plant visits,
one-on-one meetings, retailer tours, networking dinners/lunches and
the Expo East Trade Show. The overall mission was successful with the
participating Taiwanese companies gaining broad exposure to theCanadian
market, making relevant industry contacts and conducting promising initial
business discussions.
Canadian
Table-Top Display in Taiwan, Oct 31 and Dec 3rd and 4th, 2008
The market in Taiwan for processed and packaged foods continues to show
positive growth potential. This trend is due to higher levels of disposable
income, a change in consumer preferences towards western styles, a growing
preference for easy to prepare/convenience foods, and a growing interest
in nutrition and food safety; an area of strengths for Canada and Canadian
products. In cooperation with Canadian Food ExportersAssociation, Ontario
Food Exports and the Alberta Taiwan Office, Canadian Trade Office in
Taipei organized two table-top display events on October 31st and December
3rdand 4th, 2008. Both proved to be a cost-effective partnering opportunity
in response to the global down turn of the economy. More than one hundred
inquires and leads were collected at these events, which outnumbered
those for the more consumer-oriented annual international food show
in Taiwan. The table-top events focused on traders, with the December
3rd and 4th event also targeting consumers. Post-event analysis showed
that dried cranberry and snack foods are the two most popular items
sourced from Canada.
GAINING RECOGNITION AND BUILDING MARKETS - Upcoming Period
TAIWAN
Taiwan SIAL Buyers Mission: March 30 to April 3,
2009
A buyer's mission is an effective promotional activity designed to build
meaningful working relationships with key local firms and to increase
the numberof Canadian products in these selected firms' portfolios over
the short and long terms. Since most major retail chains (hypermarkets,
supermarkets and convenience stores) in Taiwan source the majority of
their products locally (including imported westernproducts), importers
remain the most important sales channel for Canadian suppliers, therefore
this mission will focus on developing this channel. The mission will
consist of four Taiwanese food and beverage buyers. Partnering events
will be organized in Toronto and Montreal.
HONG KONG
Virtual Trade Mission to the Greater China Market,
evening of February 24, 2009
“Better-for-you” products have become popular products actively sought
by Chinese consumers, particularly the higher income group who has a
higher disposable income and are more concerned about health. In addition,
these products can normally command a premium that provides a niche
for Canadian products. The event will include a video-conference and
a concurrent table top show displaying product samples. It is anticipated
that a total of approximately 70 Chinese food buyers, importers, distributors
and traders from Hong Kong, Beijing, Guangzhou and Shanghai will attend
this event.
Ontario Ginseng Growers Association Chinese New
Year Promotion Campaign in Hong Kong
The campaign includes an advertisement in one of Hong Kong's most circulated
free Chinese newspapers, as well as the distribution of pamphlets to
consumers at various locations in Hong Kong.
IMPROVING MARKET ACCESS - Report for Oct - Jan
SOUTH KOREA
Korea's autonomous TRQ rates and quantities have
been set for the first half of 2009
These TRQs are set at the discretion of the Korean government and they
represent voluntary improvements in market access compared to Korea's
bound tariff rates.
Almost all of these rates have gone up slightly, in response to softening commodity prices and decreased ocean freight rates compared to last year. The tariff rate cuts implemented in 2008 - called "emergency quota tariffs" - were themselves a response to the spikes in commodity prices (especially of feed ingredients) which were very negatively impacting Korean consumers and farmers at that time. The largest rate hikes in commodities of export interest to Canada are the increase in the malt tariff from 0% to 8%, and the tariff on whey powder which will rise from 0% to 5%. However, because import demand for these commodities is relatively inelastic, these rate increases are not expected to significantly impact trade.
Market Access for Canadian beef
Canadian and Korean veterinary experts met in early November in Seoul
to again discuss market access for Canadian beef and beef products.
Following that meeting, Korean veterinary experts traveled to Canada
for a week-long inspection visit of Canadian cattle farms, feedlots,
slaughterhouses, and feed mills. A great deal of information was shared
about Canada's internationally-recognized BSE control and surveillance
system, and our comprehensive measures to protect food safety. The next
step will be to meet again to negotiate import conditions for Canadian
beef, and AAFC hopes this meeting will be scheduled early in 2009.
HONG KONG
Expanded Beef Access
Agriculture Minister Gerry Ritz secured an agreement in-principle with
Hong Kong that immediately expands key export opportunities for Canadian
beef and sets out a clear time table to open the Hong Kong market to
all commercially-significant Canadian beef exports. Canada will work
closely with the Hong Kong authorities to ensure Hong Kong's high quality
and safety standard are met in order to complete a staged process within
this calendar year. Minister Ritz and Secretary Chow agreed to a staged
process that immediately expands opportunities for key Canadian beef
exports. After Canadian beef exporters meet Hong Kong's requirements,
all commercially-significant Canadian beef exports will have access
to the Hong Kong market. The first stage of the process gives Canadian
beef producers access to the Hong Kong market for bone-in beef products
(excluding vertebral column) from cattle under thirty months of age.
After meeting Hong Kong's requirements during the first four-month phase-in
period, Hong Kong will allow Canadian exports of rib cuts, boneless
beef and offal from all Canadian cattle. If Hong Kong's remaining requirements
are met by the end of this calendar year, it will open its borders to
all remaining Canadian beef exports from cattle under thirty months
of age, including T-bones and porterhouse steaks.
The Canadian Beef Export Federation estimates that the improved access could mean an increase in Canadian beef exports to Hong Kong by as much as $26 million, almost doubling Canada's current beef exports to Hong Kong.
TAIWAN
Annual Apple Inspection Completed
In September 2008, an official from Taiwan's Bureau of Animal and Plant
Health Inspection and Quarantine (BAPHIQ) visited BC for the purpose
of conducting the annual inspection of apple orchards, packaging houses
and phytosanitary certification procedures. Organized by the Canadian
Food Inspection Agency (CFIA) and coordinated by the Canadian Trade
Office in Taiwan, the BAPHIQ inspector visited the BC apple packing
houses and facilities. CFIA-mandated pest control measures, and their
implementation, were once again confirmed. Nine packers were approved
for exporting apples to Taiwan for 2008-2009. Canada exported more than
CDN$390,000 of apples to Taiwan from January to October 2008, an increase
of 120% over the same period last year.
Taiwan Opens the Market for Canadian Greenhouse-Grown
Tomatoes on the Vine (cluster tomatoes)
In October 2008, Taiwan approved market access for greenhouse grown
cluster tomatoes from Canada. This success is the result of ongoing
cooperation and technical exchange between the Canadian Food Inspection
Agency (CFIA) and Taiwan's Bureau of Animal and Plant Health Inspection
and Quarantine (BAPHIQ). Following submission of information regarding
greenhouse tomato facilities, growing practices and pest control, CFIA
hosted a BAPHIQ inspection visit to greenhouses in the Vancouver, BC
area. The BAPHIQ delegate had the opportunity to review the phytosanitary
security measure in place and to discuss his observations with CFIA.
IMPROVING MARKET ACCESS - Upcoming Period
TAIWAN
BSE-Related Restrictions on Beef, Tallow and Animal-Origin
Feed Meal
Canada is working, to expand existing access for Canadian beef beyond
de-boned muscle meat from UTM animals, and to re-establish access for
Canadian avian meal, porcine blood and tallow, which was withdrawn in
2003 following an outbreak of BSE in Canada. These issues were addressed
most recently during a mission to Taiwan in November, 2008 by AAFC ADM
Krista Mountjoy. Overcoming a basic aversion to risk in the Taiwanese
Department of Health (and government as a whole) is the main challenge
on beef; one shared by both Canada and the US. However, for the feed
meal and tallow issues, the responsible Taiwan animal health regulator
(BAPHIQ) has stepped up the pace of work, agreeing recently to schedule
inspection visits to four avian and porcine blood meal establishments
in BC, Alberta and Quebec. Successful inspections would complete the
technical work in this area and open the way to imports of these products
from Canada, which prior to closure of the market were substantial in
value.
SOUTH KOREA
Food safety media mission: Feb. 9-13
This mission of 6 Korean journalists will focus on the BSE safety systems
in place in Canada. Delegates will spend their time in Alberta, touring
ranches and feedlots, slaughterhouses, and beef retailers. The focus
will be on Canada's excellent cattle traceability, the enhanced feed
ban, food safety measures at slaughter (SRM removal), BSE surveillance
and transparency of the results, and finally, the confidence of the
Canadian consumer in the safety of Canadian beef. The mission aims to
achieve greater awareness of Canadian BSE food safety systems. This
awareness should result in positive Korean media coverage of the safety
of Canadian beef. Such coverage should lead to increased public acceptance
of market re-opening to Canadian beef, which will in turn enhance sales
of Canadian beef post-market-opening.
HONG KONG
Food Recall Order
The Hong Kong Special Administrative Region Government proposed an amendment
to Hong Kong's Public Health and Municipal Services Bill on November
5, 2008 to empower the Government to make administrative orders to prohibit
the import and supply of any food and direct that any food supplied
be recalled if there are reasonable grounds that the food may pose a
danger to public health. According to the amendment bill, the importers,
distributors and users at all levels of the food chain including consumers
are responsible for recovering the questionable food products. At the
moment, we do not consider the proposed amendment will compromise Canada's
food exports to Hong Kong. It is anticipated that the proposed amendment
bill will be passed by the Hong Kong Legislative Council (equivalent
to the Canadian Parliament) in summer 2009.
OVERCOMING TECHINICAL BARRIERS - Report for Oct-Jan
SOUTH KOREA
Maple Syrup Market Access Success: In October, the Korean Food and Drug Administration (KFDA) began enforcing their standard for sweeteners in such a way that maple syrup could not possibly meet the standard. A shipmentof Canadian maple syrup was tested, rejected, and ordered to be either shipped back or destroyed. AAFC's representative in Seoul followed up with technical information showing that enforcement of the standard as written would result in a de facto ban on all maple syrup imports. In November, KFDA responded by changing their test method for maple syrup. The rejected shipment was re-tested using the new method and cleared. Post has been assured that all future shipments of maple syrup will be tested using the new method.
OVERCOMING TECHINICAL BARRIERS - Upcoming Period
HONG KONG
Implementation for the Cartagena Protocol on Biosafety
The Hong Kong Special Administrative Region Government is consulting
the public on a proposal of a new legislation for the implementation
for the Cartagena Protocol on Biosafety in Hong Kong. The main objective
of the proposal is to provide a legislative framework to regulate the
release of living modified organisms into the environment. As the proposal
has an implication on the trading of genetically modified products including
food to Hong Kong, the Consulate General of Canada in Hong Kong will
work with the Hong Kong Government to ensure Canada's trade interest.
Success Stories of Canadian companies in the region
SOUTH KOREA
New sales channel for lobster “popsicle packs”
A Korean food conglomerate recently imported 2 containers of frozen
whole lobster for Korean TV home shopping sales during the New Year
holiday season. The lobsters were imported from the largest lobster
popsicle pack processor in Canada, located in Quebec. The total value
of this deal is over $480,000. Post helped arranged this new commercial
business lead at the Boston Seafood Show in February 2008.
Demand grows for flaxseed products as a health supplement
Korean health food and nutraceutical entrepreneurs are showing renewed
interest in flax-based products for the health food market in Korea.
- A new Korean buyer recently imported 4 tons of flaxseed oil from an Alberta processor as an ingredient in a new health productto be manufactured in Korea by an established Korean supplement manufacturer. The value of this sample shipment is only $20,000 but an additional commercial-volume shipment is planned for March 2009. Post provided the Korean company with a list of eligible Canadian flaxseed suppliers in November 2008.
- In November, a Korean-Canadian businessman imported a trial shipment of 1,000 bags (350 gram packs) of sprouted flaxseeds from an Ontario company. Post provided this buyer with a list of organic flaxseed suppliers in July. After sprouting in Canada, the flaxseeds are being dried and packaged.
- In October, an established health supplement importer imported 3.5 tons of organic flaxseed products from a supplier in Saskatchewan,and an additional 1,440 bottles of edible organic flaxseed oil from a supplier in Manitoba. Post provided these trade leads in June 2008.
HONG KONG
New York Fries
The first New York Fries Shop was opened in Hong Kong in early December
2008. New York Fries appointed Next Step Limited of Hong Kong as their
master franchisee for the Greater China market, including Hong Kong
and Macao. Next Step Limited plans to open 2 or 3 more shops in 2009
in Hong Kong. They are also actively seeking opportunities to expand
to China.
Canadian bagels in town
A Canadian bagel supplier has put their great effort in knocking the
doors of key supermarket and catering chains in Hong Kong to introduce
frozen par-bake bagels from Calgary. Fifty PARKnSHOP supermarkets have
recently selected their healthy bagels for their high-end in-store bakery
customers.
New buyer of Canadian fish and seafood
The Sun Wah Group has formed a new buying division operated by Sun Wah
International Trading Limited. The new company has purchased a container
of frozen Atlantic mackerel at a value of about C$70,000 from a supplier
based in Newfoundland. The fish is exclusively supplied to Japanese
restaurants. Sun Wah is now studying other seafood items and is intending
to place a new order again.
CHINA
Four additional pork processing plants were registered with
Chinese government on Dec. 5, 2008
These were the remaining four plants which were awaiting CNCA approval
for the last several months. This recent approval brings the total number
of Canadian pork plants approved for export to China to 60. At present
there is only one remaining plant undergoing the approval process?
2008 Press Conference of Successful Sino-Canada Cooperation
On December 6, 2008, Pelee Island Winery of Ontario and its Chinese
partner, Jingzhou Yuyuan Winery, held their “2008 Press Conference
on Successful Sino- Canada Cooperation & Signing Ceremony for Pelee
Island Wine Industry in China” at the Great Hall of People in
Beijing. Supported by China's Ministry of Commerce and Canadian Embassy,
this event was witnessed by Vice Chairman of China National People's
Congress, Mr. Xu Jialu; Chairlady of China International Investment
Promotion Council, Ms. Zhou Ming and Agriculture Counsellor of Canadian
Embassy, Dr. Les Kumor.
Panfish Shanghai imports Canadians salmon and tuna fish Panfish reported that with Consulate's support, from Jan-Jun 2008, they havesuccessfully imported 85 ton of Canadian salmon fish valued at 60,0000 USD and 400 ton of Canadian tuna fish valued at 120,0000 USD.
630
Canadian Breeding Pigs land in Chongqing airport!
On Dec 24, 2008, 630 Canadian breeding pigs landed in Chongqing airport.
These pigs were imported by Chongqing Longsheng Group from Alberta-based
Polar Genetics and the contract value is around 3 million CAD . Now
all the pigs are in the 45-day quarantine and will then be moved to
Longsheng's newly established hog farm with the highest standard in
Chongqing. The 630 heads of purebred pigs, including Duroc, Landrace
and Yorkshire, will form the nucleus of Longsheng group's integrated
pork production and processing system, with the pent-up capacity to
produce one million slaughter hogs in 5 years and provide stable supply
of 30,000 tons meat products to Chongqing market. The project is now
listed as a pilot project of 2008 Chongqing urban-rural integrated development.
Modernized Dairy Cattle base set up in Meishan City
On Oct 8th, 2008, BC-based Lifeteck Group signed a LOI with Meishan
City, Sichuan province on setting up a moderized dairy cattle base in
Meishan with a total investment over 45million USD. 3 years from now,
there will be 5000 high-yield cows in stock and 50,000 by 2017, making
it one of the biggest milk providers in west China. IND Lifetech's core
business is inthe research, development and commercialization of in
vitro and in vivo cattle embryos.
Canadian Lobsters Enter the South China Market
After participating in the Canadian Seafood Festival with the Guangzhou
Restaurant in Nov, 2008, Clearwater Seafoods Limited Partnership successfully
signed a sales agreement to supply Canadian live lobsters to this very
famous and influential South China Cantonese restaurant. The estimated
sales quantity for this restaurant is about 300 lobsters per month.
Chinese-style weddings and business banquets are the main channel for
selling premium fish and seafood in South China, and thus this agreement
is an important step to help Clearwater enter into the Cantonese cuisine
and to further expand their business with more Chinese restaurant.
Agrium has opened its first office in Beijing, China
Agrium has selected China as an important market to expand sales of
agriculture inputs and fertilizer components.
“As a Company, our mission is to provide ingredients for growth. Agrium's vision is to be one of the world's leading providers of inputs for plant growth by creating value for each our stakeholders. Agrium is a leader in developing and supplying environmentally friendly nutrient products and other products for agricultural applications, the home and garden as well as turf and the golf course industry. Agrium is one of the world's premier developers and manufacturers of controlled release fertilizers. Controlled release fertilizers release nutrients as theplants require them increasing the efficiency of the fertilizers while benefiting the environment.”
Sinograin imports 100,000 tons of Canola Oil
Since the signing of the MOU between 4 Canadian canola exporters with
Sinograin 2008, Sinograin has importedabout 100,000 tons of canola oil.
This is the first time Canada has exported canola oil for State Reserves.
Canadian Swine Industry signed MOU with Chinese Swine Industry
in north China 2008
The aim of the MOU is to share research and technical knowledge on the
use of swine genetics, animal nutrition, bio security, husbandry etc.
Currently under this MOU a few swine projects have already been carried
out.
The Canadian Wheat Board promotes Canadian Wheat
The Canadian Wheat Board (CWB) is pleased to announce a joint initiative
with Guchaun Food Company to promote premium flour made from 100 per
cent Canadian wheat. The flour which is produced in Canada and packaged
and promoted in China by Guchaun, will be officially launched on January
20, 2009 in Beijing. The CWB has sold wheat into China for more than
50 years. Canadian wheat has an excellent reputation in China and the
CWB hopes this initiative will further increase awareness among Chinese
consumers of the high quality of Canadian wheat.
TAIWAN
Canadian Soybeans: New Healthy Choices
Taiwanese consumers are becoming ever more health-conscious, and are
often willing to pay a premium for quality products, such as Canadian
non-GMO soybean milk. In collaboration with Canadian and Taiwanese public
and private stakeholders, and as a result of a number of successful
media and marketing campaigns since 2005, Canadian soybeans are considered
a premium brand and healthy choice by Taiwanese consumers. Exports of
Canadian soybeans have increased more than 30% annually since 2006.
Moreover, Taiwan's number two leading soymilk and tofu manufacturers
have signed co-branding partnership agreements with AAFC for the use
of Canada Brand graphics. More marketing activities to brand Canada
will be included in their work plans in the coming months.
Canadian Foie Gras taking Off in Taiwan's Marketplace
Canada has become a leading supplier of foie gras for Taiwan's upscale
restaurants and retailers since Taiwan imposed an import ban on foie
gras from European countries because of quarantine issues. Taiwan imported
CND$550,000 of foie gras from January to November of 2008, an increase
of 70% over the same period last year. Building on its French culinary
tradition, Quebec has developed an expertise in the production of foie
gras. With support from Quebec's food industry, Quebec manufacturers
participated in the Taipei International Food Show in 2006 and 2007.
Since then, the quality and superior taste of Canadian foie gras has
been increasingly recognized by the food industry and gourmet chefs
in Taiwan.
CTOT and TECO sign an MOU in November 2008
The Canadian Trade Office in Taipei (CTOT) and the Taipei Cultural and
Economic Office (TECO) signed an MOU to establish a framework for cooperation
in the sectors of agriculture and agri-food science and technology.
Agriculture and Agri-Food Canada and the Taiwan National Science Council
(NSC) will be the respective executive agencies to carry out the MOU
on behalf of CTOT and TECO. Under the agreement, Canadian and Taiwanese
scientists and researchers are encouraged to enhance research on, and
applications of, innovative agricultural sciences, agri-food products,
food supplements and biotechnology products, as well as biotech processing
know-how. This MOU complements a broader MOU on agriculture, which covers
cooperation in agricultural science and technology between AAFC and
Taiwan's Council (Department) of Agriculture.
New Market Reports in the region
SOUTH KOREA
Opportunities in the Food Markets of South Korea
This report identifies food categories that might prove to be opportunities
for Canadian exporters in South Korea. Recent trends in consumer expenditures
are explored, providing insight into the tastes and preferences of South
Korean consumers. The characteristics of about 116 individual consumer
products available in South Korea are presented. The report is currently
being translated. To receive an English copy, or to reserve a French
copy, please email Inge.VanderHorst@agr.gc.ca
Agri-Food News from the Region
JAPAN
Food Safety and Quality to Remain Top Issue in 2009
Japanese consumer confidence in imported foods was repeatedly pummelled
during 2008. Nearly every week seemed to bring some new and disheartening
revelation. Despite increased scrutiny by the Japanese government, as
well as changes in consumer purchasing habits, concern over food safety
and quality will undoubtedly remain a top issue for Japan's food industry
in 2009. Why is this of interest to Canadian exporters? With consumer
anxiety about food safety continuing and perhaps even deepening, Canadian
exporters with a story to tell about good production techniques and
top level quality assurance programs may potentially find receptive
ears among Japanese buyers. The temporary absence of China from much
of the produce market, in particular, represents an important opportunity.
Time is of the essence, however, as solutions are developed and the
current window gradually closes.
Japan's Convenience Stores Benefiting from Recession
As department stores and general merchandising stores rely heavily on
discretionary spending, Japanese convenience store operators are expected
to outperform the retail sector in 2009. Recent sales trends clearly
reflect that consumers are already opting for cheap prepared meals instead
of eating out as the economy slides deeper into recession.
Sapporo to Market Beer with “Carbon Footprint” Labels on Cans
Sapporo Ltd., the owner of Canada's Sleeman Breweries, Ltd. and Japan's
4th largest beer company, recently announced that it will be the first
brewer in the world to introduce “carbon footprint” labels.
Starting in February 2009, the company plans to start test sales of
beer with “carbon footprint” labels on cans in Hokkaido,
Japan's northernmost island.
The labels, which will be attached to 350ml cans of Sapporo's Black Label beer, will show the amount of carbon dioxide emitted during the production process of each can, ranging from the operation of agricultural machinery in barley and hop production to recycling.
CHINA
East China Agriculture Fiscal Stimulus Package
Among the total RMB 4 trillion budget, the portion of China's fiscal
stimulus package allocated to Agriculture is relatively small. However,
various provincial agriculture bureaus, commissions and municipal governments
within the East China territory are preparing project proposals to compete
for central funding.
- Proposed Shanghai projects, will require the import of small-medium sized agricultural machinery and equipment. Technologies will be sourced/imported to keep vegetables fresh.
- Zhejiang Province is preparing project proposals to upgrade agricultural infrastructure (roads and water conservation projects), increase fertilizer application and develop methane-based power generation sites.
- Anhui Province is preparing project proposals focusing on bio-energy (e.g. methane), and the procurement of vehicles and other transportation equipment for transporting agricultural products.
- Jiangsu Province does not plan to request funds from the central government. However, the provincial government will likely allocate an additional RMB 200 million (about $40 million USD), mainly to improve its agricultural infrastructure.
HONG KONG
Hong Kong Seminar on Import Control on Fish and Fishery Products
The HKSAR Food and Environmental Hygiene Department and the Hong Kong
Veterinary Association Limited organized a two-day veterinary public
health workshop on the theme of “Import Control of Fish and Fishery
Products” on December 1-2, 2008. Five speakers representing the
EU, the UK, Australia, Japan and China were invited to present on their
respective country's systems in dealing with disease risks and safety
assurance. Fish health, aquaculture development and the international
trade of products continuously bring new challenges. More exchanges
or co-operations at the national level should be encouraged to improve
the global surveillance standards and practices. This seminar provided
a good opportunity for HKSAR government to learn and share with various
speakers in this aspect, especially when they are proposing broadening
the definition of “food” to cover live fish or aquatic products
in the Food Safety Bill.
TAIWAN
2008 Third Quarter Food Industry Development
The value of Taiwan's 2008 third quarter production for food and beverages
was estimated at US$4.2 billion, an increase of 9.7% from 2007. Imports
were roughly US$1.1 billion, an increase of 18.6% over the same period
last year. The global economic downturn is expected to reduce economic
growth in Taiwan considerably. According to Neilson's on-line survey
of consumer confidence in Taiwan's economy, more than 90% of Taiwanese
consumers believe Taiwan is in an economic recession and 50% think Taiwan
will not be out of the recession in the next 12 months. As a result
of concerns over impacts on employment and financial security, Taiwanese
consumers are cutting spending on non-essential living expenses. Examples
include eating out less, switching to cheaper grocery brands, buying
smaller packs or buying bulk. Sales of frozen vegetables, dumplings,
ready to serve frozen food, edible oil, rice and noodles are increasing
as consumers opt for meals at home.
Taiwan Distributes Vouchers to Stimulate Consumer Spending
In January 2009, the Taiwanese government issued NT$3,600 (CND$133)
in vouchers to every citizen as part of an economic stimulus package
to boost consumer spending and economic growth in light of the economic
downturn. The measures are aimed at increasing retail sales. Many people
went straight to hypermarkets to buy up daily necessities. Authorities
said the measures were expected to add at least 0.6% to the GDP growth
rate for 2009. The government will evaluate the results before studying
the feasibility of distributing a second round of vouchers to the public.
Trade Leads for Canadian companies
HONG KONG
- Four Seas Group (http://www.fourseasgroup.com.hk/) is one of Hong Kong's largest food and beverage manufacturers, importers, distributors and retailers. The company was founded in 1971, and currently carries over 5,000 food products from manufacturers in 29 countries. Brands represented by the company include Cadbury, Gilco, Lotte and Meiji. The company has a very dominant share of the local snack food market. The company expressed an interest in representing more Canadian food products in Hong Kong. If you are interested in contacting the company regarding your products, please contact Houston Wong, Trade Commissioner (Agriculture and Agri-Food) of the Consulate General of Canada in Hong Kong at his e-mail address: Houston.wong@international.gc.ca
- Amoy Food Limited (http://www.amoy.com/) is Hong Kong's biggest soy sauce manufacturer. The company is interested in establishing direct trading relationships with Canadian non-GMO food grade soybeans suppliers. They are also interested in buying black beans for making Chinese condiments. If you are interested in contacting the company regarding your products, please contact Houston Wong, Trade Commissioner (Agriculture and Agri-Food) of the Consulate General of Canada in Hong Kong at his e-mail address: Houston.wong@international.gc.ca
- The Foods, Oils and Miscellaneous Department of Dah Chong Hong, Ltd. (http://www.dchfom.com) is looking for a direct supplier of flour. The company is interested in an exclusive distributorship agreement. If you are interested in contacting the company regarding your products, please contact Houston Wong, Trade Commissioner (Agriculture and Agri-Food) of the Consulate General of Canada in Hong Kong at his e-mail address: Houston.wong@international.gc.ca
CHINA
- A Chinese company in Shenzhen, Guangdong Province is looking for Canadian milk powder to make milk and whey powder for animal feed. For further information please contact Trade Commissioner Leanne Yi at: leanne.yi@international.gc.ca
- In order to improve its double-low rapeseed production, Hubei Provincial Department of Agriculture seeks technologies from Canada to grow canola in the province. Hubei is located in central China, and is one of the largest oilseed producing provinces of the country.
- There is a good market potential for Canadian sablefish in Shanghai. Local restaurants and importers need a stable supply of sablefish, in terms of both quantity and quality.
