Monthly Agricultural Market News of South China – 15_Guangzhou_China - Peoples Republic of_11-1-2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 11/1/2017
GAIN Report Number: CH176032
China - Peoples Republic of
Post: Guangzhou
Monthly Agricultural Market News of South China – 15
Report Categories:
Agriculture in the News
Agricultural Trade Office Activities
SP1 - Expand International Marketing Opportunities
Approved By:
Levin Flake
Prepared By:
ATO Guangzhou Staff
Report Highlights:
South China is a thriving market for U.S. tree nuts…Upcoming opportunities for U.S. exporters to meet
with South China food, wine, and hides importers…ATO Guangzhou organized a sugar beet pulp feed
trade mission, participated in a U.S. beef roadshow event as well as a California table grape promotion,
and carried out a number of other promotional activities.
General Information:
South China is a Thriving Market for U.S. Tree Nuts
700
U.S. Exports of Pistachios to
China and Hong Kong
600
(Sept-Aug $ Million)
China Imports of U.S. Tree Nuts
2014-2016 avg
500
400
300
Other
41%
200
South
China
59%
100
0
Data Source: FAS/GATS, China Customs
South China is a robust and expanding market for U.S. tree nuts, with especially strong growth recently
for pistachios. Half of all U.S. pistachio exports come to China and Hong Kong, and U.S. pistachio
exports to these markets more than tripled this past year. The Pearl River Delta region of South China is
the historical hub for tree nut trading in China, with a very large number of processing plants as well as
high tree nut consumption. As a result, this region accounts for over half of all U.S. shipments to China.
In addition to pistachios, South China is also a very large market for U.S. almonds, pecans, and walnuts.
A few key trends have helped drive growth in tree nut consumption in South China. First, increasing
awareness and marketing of the health and nutritional attributes of U.S. tree nuts has helped boost
demand. Additionally, the development of a wider range of tree nut products (including flavors) and
packaging has also resulted in higher sales. And finally, the rapid growth of the bakery sector has
created a strong demand for tree nuts as a baking ingredient.
Note: Southern China includes Guangdong, Fujian, Guangxi, Hainan, and Hunan provinces.
Upcoming Events
November 14-16, Food & Hotel China (FHC), Shanghai: During the period of November 14-16, one
of the leading food and wine shows in Asia - Food & Hotel China - will be held in Shanghai. Over 50
U.S. food exporters will exhibit at the U.S. pavilion. FAS/China will have a booth at the show to provide
assistance to U.S. exhibitors and make introductions among Chinese buyers and U.S. suppliers. U.S.
food and beverage exporters who would like to meet with South China importers at this show can please
contact Vivian.Xian@fas.usda.gov.
November 12-14, Interwine Show, Guangzhou: Interwine (www.interwine.org/en ) is the largest and
most influential wine-focused trade show in South China. This biannual event, which also caters to
international spirits and beer exhibitors, is held in May and November. The May event is much larger
and attracts many more visitors while the November show is more ideal for local distributors to sell
wines before the major consuming season (i.e. Christmas, New Year and Chinese Lunar New
Year). Please contact Mr. Kang Chen (kang.chen@fas.usda.gov) if you would like to learn more about
this show.
November 20, China Tanning Industry Annual Conference, Xiamen: The China Tanning Industry
Annual Conference, which will be held in Xiamen, Fujian province this year, is the most important
annual event for major tanners throughout China. Industry leaders will participate in the conference and
discuss policies, developments and trends impacting the international leather trade. ATO Guangzhou has
organized a keynote speaker to present on the current U.S. hides and skins supply and demand situation
on behalf of U.S. industry at the event. For more information on this conference and for U.S. exporters
interested in meeting with key China leather industry representatives, please contact ATO Guangzhou
Marketing Specialist Ursula Chen (Ursula.Chen@fas.usda.gov ).
Recent ATO Guangzhou Activities
South China Importers Get a Taste of the U.S. Sugar Beet Industry – From September 18-26, ATO
Guangzhou staff led a group of South China feed importers and end-users on a trade mission to meet
with U.S. sugar beet growers, processors and traders in California, Idaho and Michigan. The trade
mission included visits to sugar mills, exporting companies, a sea port, farms, research facilities, and
several dairy/beef feedlots that utilized sugar beet pulp. Following the visit, the trade mission members,
whose companies purchased over $1 billion in U.S. agricultural products in 2016, reported they gained a
comprehensive understanding of the U.S. sugar beet industry.
U.S. sugar beet pulp gained market access to China in late September 2016 with actual trade
commencing in February 2017. According to China Customs Data, from February 2017 to September
2017, China bought nearly 34,000 metric tons of U.S. sugar beet pulp worth nearly $8 million. Of this
sum, 46 percent was shipped to South China. Trade contacts anticipate imports of U.S. sugar beet pulp
will continue to take-off over the next several years to help feed the expanding Chinese livestock
industry.
U.S. Beef Exporters Showcase High Quality Product to Enthusiastic Importers in Guangzhou –
On September 29th, ATO Guangzhou co-hosted a U.S. Beef Roadshow and Product Showcase with the
U.S. Meat Export Federation in Guangzhou. At the event, Consul General Charles Bennett delivered
opening remarks and 17 U.S. meat traders and packers showcased their beef products to over 300
importers, distributors, and selected hotel and restaurant owners from multiple regions of China. In
addition to helping organize and co-host, ATO Guangzhou also helped recruit U.S. wine and beer
importers to showcase their products at the event.
California Table Grapes Promoted at National-Wide Retail Chain – On October 16, the ATO
Guangzhou Deputy Director participated in a promotional event with the Regional Director of the
California Table Grapes Commission at a local Guangzhou outlet of a national specialty fruit retail chain
(Pagoda). This promotional visit was part of a 6 month marketing campaign (from August 2017 to
January 2018) during which California table grapes are being showcased at over 1,400 Pagoda outlets
nationwide. Over the past multiple years, U.S. seedless Red Globe, Autumn Royal, Thompson and
Crimson varieties have largely replaced the U.S. seeded Red Globe variety in the Chinese market.
Retail contacts report this change is a result of robust consumer demand for high quality seedless
varieties combined with the fact that importers now prefer to trade in U.S. seedless varieties as the profit
margin is much larger. South China is by far the largest market in China for U.S. grapes.
Cochran Program Helps Strengthen Ties between Chinese Import and Quarantine Officials and
U.S. Counterparts – From September 10-22, ATO Guangzhou staff led a group of eight officials from
the Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the
Guangdong Inspection and Quarantine Bureau (Guangdong CIQ) on a USDA Cochran Fellowship tour
in the United States. The group met with multiple federal agencies responsible for the U.S. agricultural
and food regulatory system. Additionally, the group visited corn and sorghum farms, grain elevators,
pear orchards, packing houses, hay and hops producers, and a seaport. Following the trip, participants
reported the visits helped them better understand regulatory procedures that assure high quality and
safety in the U.S. agricultural production and supply chain. Inspection and Quarantine Bureaus in South
China facilitate over $8 billion worth of U.S. agricultural and related product exports each year.
Email: ATOGuangzhou@fas.usda.gov
Tel: +86-20-3814-5453
Fax: +86-20-3814-5310
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 11/1/2017
GAIN Report Number: CH176032
China - Peoples Republic of
Post: Guangzhou
Monthly Agricultural Market News of South China – 15
Report Categories:
Agriculture in the News
Agricultural Trade Office Activities
SP1 - Expand International Marketing Opportunities
Approved By:
Levin Flake
Prepared By:
ATO Guangzhou Staff
Report Highlights:
South China is a thriving market for U.S. tree nuts…Upcoming opportunities for U.S. exporters to meet
with South China food, wine, and hides importers…ATO Guangzhou organized a sugar beet pulp feed
trade mission, participated in a U.S. beef roadshow event as well as a California table grape promotion,
and carried out a number of other promotional activities.
General Information:
South China is a Thriving Market for U.S. Tree Nuts
700
U.S. Exports of Pistachios to
China and Hong Kong
600
(Sept-Aug $ Million)
China Imports of U.S. Tree Nuts
2014-2016 avg
500
400
300
Other
41%
200
South
China
59%
100
0
Data Source: FAS/GATS, China Customs
South China is a robust and expanding market for U.S. tree nuts, with especially strong growth recently
for pistachios. Half of all U.S. pistachio exports come to China and Hong Kong, and U.S. pistachio
exports to these markets more than tripled this past year. The Pearl River Delta region of South China is
the historical hub for tree nut trading in China, with a very large number of processing plants as well as
high tree nut consumption. As a result, this region accounts for over half of all U.S. shipments to China.
In addition to pistachios, South China is also a very large market for U.S. almonds, pecans, and walnuts.
A few key trends have helped drive growth in tree nut consumption in South China. First, increasing
awareness and marketing of the health and nutritional attributes of U.S. tree nuts has helped boost
demand. Additionally, the development of a wider range of tree nut products (including flavors) and
packaging has also resulted in higher sales. And finally, the rapid growth of the bakery sector has
created a strong demand for tree nuts as a baking ingredient.
Note: Southern China includes Guangdong, Fujian, Guangxi, Hainan, and Hunan provinces.
Upcoming Events
November 14-16, Food & Hotel China (FHC), Shanghai: During the period of November 14-16, one
of the leading food and wine shows in Asia - Food & Hotel China - will be held in Shanghai. Over 50
U.S. food exporters will exhibit at the U.S. pavilion. FAS/China will have a booth at the show to provide
assistance to U.S. exhibitors and make introductions among Chinese buyers and U.S. suppliers. U.S.
food and beverage exporters who would like to meet with South China importers at this show can please
contact Vivian.Xian@fas.usda.gov.
November 12-14, Interwine Show, Guangzhou: Interwine (www.interwine.org/en ) is the largest and
most influential wine-focused trade show in South China. This biannual event, which also caters to
international spirits and beer exhibitors, is held in May and November. The May event is much larger
and attracts many more visitors while the November show is more ideal for local distributors to sell
wines before the major consuming season (i.e. Christmas, New Year and Chinese Lunar New
Year). Please contact Mr. Kang Chen (kang.chen@fas.usda.gov) if you would like to learn more about
this show.
November 20, China Tanning Industry Annual Conference, Xiamen: The China Tanning Industry
Annual Conference, which will be held in Xiamen, Fujian province this year, is the most important
annual event for major tanners throughout China. Industry leaders will participate in the conference and
discuss policies, developments and trends impacting the international leather trade. ATO Guangzhou has
organized a keynote speaker to present on the current U.S. hides and skins supply and demand situation
on behalf of U.S. industry at the event. For more information on this conference and for U.S. exporters
interested in meeting with key China leather industry representatives, please contact ATO Guangzhou
Marketing Specialist Ursula Chen (Ursula.Chen@fas.usda.gov ).
Recent ATO Guangzhou Activities
South China Importers Get a Taste of the U.S. Sugar Beet Industry – From September 18-26, ATO
Guangzhou staff led a group of South China feed importers and end-users on a trade mission to meet
with U.S. sugar beet growers, processors and traders in California, Idaho and Michigan. The trade
mission included visits to sugar mills, exporting companies, a sea port, farms, research facilities, and
several dairy/beef feedlots that utilized sugar beet pulp. Following the visit, the trade mission members,
whose companies purchased over $1 billion in U.S. agricultural products in 2016, reported they gained a
comprehensive understanding of the U.S. sugar beet industry.
U.S. sugar beet pulp gained market access to China in late September 2016 with actual trade
commencing in February 2017. According to China Customs Data, from February 2017 to September
2017, China bought nearly 34,000 metric tons of U.S. sugar beet pulp worth nearly $8 million. Of this
sum, 46 percent was shipped to South China. Trade contacts anticipate imports of U.S. sugar beet pulp
will continue to take-off over the next several years to help feed the expanding Chinese livestock
industry.
U.S. Beef Exporters Showcase High Quality Product to Enthusiastic Importers in Guangzhou –
On September 29th, ATO Guangzhou co-hosted a U.S. Beef Roadshow and Product Showcase with the
U.S. Meat Export Federation in Guangzhou. At the event, Consul General Charles Bennett delivered
opening remarks and 17 U.S. meat traders and packers showcased their beef products to over 300
importers, distributors, and selected hotel and restaurant owners from multiple regions of China. In
addition to helping organize and co-host, ATO Guangzhou also helped recruit U.S. wine and beer
importers to showcase their products at the event.
California Table Grapes Promoted at National-Wide Retail Chain – On October 16, the ATO
Guangzhou Deputy Director participated in a promotional event with the Regional Director of the
California Table Grapes Commission at a local Guangzhou outlet of a national specialty fruit retail chain
(Pagoda). This promotional visit was part of a 6 month marketing campaign (from August 2017 to
January 2018) during which California table grapes are being showcased at over 1,400 Pagoda outlets
nationwide. Over the past multiple years, U.S. seedless Red Globe, Autumn Royal, Thompson and
Crimson varieties have largely replaced the U.S. seeded Red Globe variety in the Chinese market.
Retail contacts report this change is a result of robust consumer demand for high quality seedless
varieties combined with the fact that importers now prefer to trade in U.S. seedless varieties as the profit
margin is much larger. South China is by far the largest market in China for U.S. grapes.
Cochran Program Helps Strengthen Ties between Chinese Import and Quarantine Officials and
U.S. Counterparts – From September 10-22, ATO Guangzhou staff led a group of eight officials from
the Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the
Guangdong Inspection and Quarantine Bureau (Guangdong CIQ) on a USDA Cochran Fellowship tour
in the United States. The group met with multiple federal agencies responsible for the U.S. agricultural
and food regulatory system. Additionally, the group visited corn and sorghum farms, grain elevators,
pear orchards, packing houses, hay and hops producers, and a seaport. Following the trip, participants
reported the visits helped them better understand regulatory procedures that assure high quality and
safety in the U.S. agricultural production and supply chain. Inspection and Quarantine Bureaus in South
China facilitate over $8 billion worth of U.S. agricultural and related product exports each year.
Email: ATOGuangzhou@fas.usda.gov
Tel: +86-20-3814-5453
Fax: +86-20-3814-5310