China 2009 MST

Young, Hip, and Wary: China's New Consumer

 They’re young, they have more money to spend, they look at labels, and they want convenient, adventurous,and, most of all, safe food.

They’re China’s new generation of middle-class urban consumers. Shanghai U.S. Agricultural Trade Office Director Wayne Batwin sees “a lot of future” in value-added U.S. exports, given that China’s growing middle-class is “very young” -- on average, 25 to 44.

“Western products are very welcome in China, but it has to do with income and age,” Batwin related. Urbanization has led to more Chinese eating out and seeking pre-packaged, pre-cooked alternatives not available at the local “wet market”, “and that’s good for our products,” he said.

FarmWeek's Martin Ross also interviewed Hong Kong Foreign Ag Service representative Anita Katial about the new Chinese consumer.

Download Hong Kong FAS rep Anita Kalial

Specialty Meats Valuable in Asian Markets

Hog organs and offal worth little at the slaughterhouse multiply in value in the Asian market.

“A lot of people in the United States would say, ‘How much value is there exporting an item that’s only 40 cents a pound?’” Hong Kong-based U.S. Meat Export Federation Asian Pacific Region Senior Vice President Joel Haggard says.

“But if the alternative sales price for that product is only 20 cents a pound, then you’re adding a 100 percent margin. That’s an incredible margin.”

Midwest potential isn’t limited to pig tongues and feet -- Haggard cited demand in the Hong Kong market for products “in between” offal and prime cuts, such as short ribs and short plate, a lower-value U.S. belly cut commonly sliced and grilled by the Chinese.

But pleasing Chinese customers involves more than parts distribution and catering to local tastes: Philip Shull with the Hong Kong ATO noted many U.S. competitors today are “much more willing to customize their services” by modifying their U.S. packaging, cuts, and portions

Illinois has a number of smaller meat companies already serving the Hong Kong market,” Haggard noted. “They’ve demonstrated a willingness to listen to customer demands for different specifications from what they sell in the U.S. Let’s keep that up: That’s how we’re going to export more.” -- Martin Ross

Download Joel Haggard USMEF

FYI: Time change impact

Since the U.S. went on Daylight Savings Time on Sunday, March 8, the time difference between Central IL and China is now only 13 hours ahead.  While the U.S. observes DST, China does not...so we gained an hour Sunday on the Chinese.

Blog writer AWOL?

Sorry, blog readers, for the recent absence of updates Saturday wasn't a good day for me. I stayed at the hotel so I don't have any photos to add. Maybe I can get some from someone else this evening (it's Sunday here.) We're on our way to a Cargill facility today, along with an aquaculture facility. We should have something for you sometime Sunday morning (for you). Don't forget about the time change, right? FYI I found a starbucks this morning where I got my dose of a triple venti mocha and a cup of fresh fruit.

Chinese food preferences

Care for a chicken paw? That may not seem a very appetizing prospect in the States, but across China, chicken feet and paws are considered as irresistible as a beckoning plate of buffalo wings at a Sunday Super Bowl party. If that doesn’t rock the Illinois producer’s world, perhaps it should: Chicken paws plus a Chinese population topping 1.3 billion equals explosive poultry potential, and that potentially means powerful soybean and corn markets for the U.S. That’s the perspective of the U.S. Agricultural Trade Office in Shanghai and the USA Poultry and Egg Export Council, which has partnered with groups including the United Soybean Board, Illinois Soybean Association, and Illinois Corn Growers Association to promote poultry consumption in China. In 2008 alone, the U.S. exported 421,025 million tons of chicken feet and paws, valued at $280.3 million, to China. In total, China imported $716.3 million in U.S. poultry products. As brand recognition and a fast-food generation expand in China’s massive cities, new opportunities for chicken consumption emerge, such as the proliferation of KFC restaurants (2,500 stores to date across China, at a rate of 500 new stores a year). PEEC recognizes the challenges to sustaining such growth: The organization sponsors trade shows and receptions, “reverse” trade missions which invite Chinese importers to visit U.S. poultry operations, and billboard ads and other educational efforts that attempt to reassure consumers of poultry safety despite Asian anxieties about avian influenza while alerting wholesalers and the populace at large at the appeal of poultry. And the good news is not confined to U.S. broiler makers and Midwest corn and soybean producers: China imported 37 million tons of turkey in 2008 to accommodate curious, increasingly health-conscious Chinese consumers who may be drawn by the big bird’s lowfat potential. PEEC is working to develop recipes aimed at having more of China’s poultry-loving populace talking turkey -- Martin Ross

Check the flickr photos

Hey blog readers! It's another late night and I'm beat. I added a few more photos to the flickr badge on the right side of this page. Unfortunately, I lost many of them in a format issue on my smaller digital camera :(

We're headed to the airport in the morning so I need to rest. Have a great day!

Melamine Update

Last year’s milk melamine contamination scare -- linked to more than 300,000 illnesses and at least four infant deaths -- has led to death sentences for three individuals implicated in the scandal and, as Market Study participants have found, reexamination of the way milk is produced, marketed, processed, and safeguarded across China.

The U.S. Grains Council’s China office has stepped up educational efforts for Chinese dairy managers at its Sino-U.S. Dairy Training Center in cooperation with Huaxia Dairy Farm, a state-of-the-art operation 37 miles east of Beijing. Huaxia, founded by a pair of Californians who’d never previously milked a cow, provides a template for quality control and efficiency, with 800 cows delivering an average 8.5 gallons of milk per day.

Meanwhile, Shanghai’s Bright Dairy, a major Chinese processor, has automated its two billion-cup-per-year yogurt facility to reduce the chances of secondhand contamination. Market Study participants toured the plant’s interactive yogurt “museum,” which aims to teach the public about dairy health and Bright Dairy’s food safety measures.

“Fresh is the Future of the Chinese Dairy,” proclaims one of Bright Dairy’s slogans. Improved safety down the dairy chain will help seal the industry’s future. -- Martin Ross

A note on twitter

What in the world is twitter? Yeah, I've heard that a few times from the MST participants. You can go to www.twitter.com to find out. It's a free networking service that's really caught on around the world. The idea is to micro-blog what you're doing in 140 characters or less. Twitter asks you, "What are you doing?" and you answer. The twitter badge you see in the upper righthand portion of this blog page is a list of my most recent 3 "tweets."

Twitter is the service.

You tweet a message.

Tweeple are those who tweet on twitter. aka "tweeps"

You can find my page at http://twitter.com/agchick

You don't have to sign up to check out tweep pages. You can also click the "follow me on twitter" button on this blog to link to that page.

If you sign up on twitter, you'll get an account and can choose to receive my tweets along with anyone else's as a text message on your cell phone. You, too, could start tweeting if you like. If you go to my page, you can find out who follows me and who I follow. If it all seems a little to public to you, you can block your twitter profile and pre-approve any requests. If you have a PDA like an iPhone or Blackberry, you can also download a bajillion twitter apps to do this work and skip the text messaging. I use twitterberry. You can also skip the mobile component of the service and only use the online application.

Keep reading the blog and listening to RFD. Look for more in next week's FarmWeek!

Thanks for keeping all of us in your thoughts and prayers as we continue on this great adventure!

Shanghai, the husband city.

We arrived to Shanghai as record setting rainfall was coming to an end. Tomorrow (Friday) will be the first sunny day they've seen in a while, and the first sunshine we will see since we've been in China. The Chinese call Shanghai and Beijing the husband and wife cities. Shanghai is the husband because it makes all the money. Beijing, the capital, is the wife because it spends all the money. Some things just don't change no matter how far you get from home. Sheesh!

Things are progressing rapidly all over China, and Shanghai is the epitome of that trend. A river divides the city into east and west halves, with the old city being on the west side. Until 1991, the only way to cross the river was by ferry. In '91 China started building bridges over that river to accomodate the people and commerce. Now there are 5 bridges and six tunnels to allow people to move more easily.

By the way, the air quality seems a bit better here but I think it might be because the rain washed all the particulates out of the sky. No complaints from me!

The Rendevous Hotel is quite nice. There is a Starbucks only a couple blocks away, so I had my fix. And Leah, I bought a cup to add to your collection! My barrista was excited to practice her English and was very helpful, as are all of the staff we see in China. Here is the hotel's website if you'd like to check it out. http://www.rendezvoushotels.com/

I am really jet-lagging on this trip. I guess I should have rested better before we left! I've been sleeping in the room since about 6pm this evening, but woke up just before 11pm local time to call in to the RFD Today program with my co-host, Alan Jarand. We air that program live each day at 9am for the first time. Your local radio affiliate may air it later in the day. Go to www.rfdradio.com to listen to the program stream, or you can download the podcasts, too.

We visited Bright Dairy No. 8 today in Shanghai. It is Asia's largest yogurt factory, and is state of the art. The product was quite good. Ladies, you'd be proud to know that the men are enjoying yogurt! The Chinese have known for centuries that it is good for your digestive system, and it seems we're just figuring this out (NOTE the ads for the yogurt products at home.) Bright Dairy No 8 prodcues 200,000 tons of yogurt each year.

We then checked into our hotel and walked to a local supermarket. This is not the average Chinese's supermarket. It is for the higher income population. It's a little like a super walmart or kmart or target in that it has all your home goods as well as groceries. CHECK THE FLICKR PHOTO STREAM (ON THE RIGHT SIDE OF THIS PAGE) FOR UPDATED PHOTOS. We're not allowed to take photos inside the store, so I was shooting from the hip without a flash. Please forgive the small number of photos and the quality.

 

 

The fresh, whole (and I mean whole) chickens were about a dollar a kilo as far as I could tell.

Or, take your pick of seafood.

    

 

 

More China MST coverage

Farm Futures magazine editor Mike Wilson is also touring China with the group. You can find his blog at www.farmfutures.com

China's Largest Dairy

The Hua Xia (wha-she) Dairy Farm is China's premier dairy farm. It is used as a demonstration center and has a growing "agritainment" style business opportunity. Go online to www.wondermilk.cn to find out more about the dairy and its products. Click the link below to listen to my discussion with Hua Xia manager and nutrionist Dr. Walter Chen.

Download Walter Chen

The Great Wall of China

Today we visited the Great Wall. It was as magnificent as you might expect, and magnificently difficult to climb! Some of us made it farther than others up the ridge, although only a handful made it to the top of the peak. Here is a link to the Wikipedia page http://en.wikipedia.org/wiki/Juyongguan Sorry if you're not a wiki fan, but I didn't figure I needed to stay up much later tonight to type out what wiki already has! Don't forget to check the Flickr photo stream on the right for more smoggy photos. We board MU #5104 tomorrow morning for Shanghai!

New photos from Beijing

We've added some new photos from the IFB Market Study Tour from Beijing.  Click on the Flicker badge on the right hand menu area to view the latest photos.

Interview with Paul Taylor

The China Market Study Tour of China is visiting a dairy farm Wednesday, before heading to the Great Wall of China.  Check Tricia Braid Terry's twitter updates on the right hand side of this blog for updates.

Also, check out our earlier video of the dairy visit from America's Heartland.  This is the same dairy that the IFB group is visiting Wednesday.

Earlier on Tuesday, Tricia spoke with Paul Taylor on RFD Radio.  Click on the file below to listen to the interview.

Download Paul_Taylor_

Tuesday's Dinner at Bai's Family Restaurant

 

This traditional Chinese restaurant featured gorgeously costumed waitstaff who were johnny on the spot with anything you needed, including far too much food! Here is the menu from tonight's meal:

Cold Dishes: Stewed Pork Hock, Mixed Vegetables, Mushroom with Pine Nuts, Imperial Bun with Pork Stuffing, Mustard Cake (yowza it was HOT!), Braised Donkey (yes as in hee-haw) Meat with Soy Sauce, Sweet Pea Puree and Kidney Bean Rolls.

Hot Dishes: Fried Shrimp with Walnuts (another zingy dish), Stir-Fried Mushroom with Foie Gras, Stewed Chicken with Litchi and Pineapple and Bai's Style Fried Rice, Crispy Duck Cubes, Sauteed Beef Slices with Chinese Green Tender (aka kale), Stir-Fried Venison with Fresh Vegetables, Steamed Turbot Fish, and Stir-Fried Seasonal Vegetables.

Soup: Cuttlefish Roe (Larry Paarlberg and I were the only one's at our table to try it)

Dessert: Imperial Pastries

And unlimited quantities of Oolong Tea. I think I must have had 3 gallons worth. I couldn't take a sip without the waitress adding more steaming hot water to my cup/bowl.

BON APPETIT!