Hong Kong strategic entry point into mainland China
The Meatboard’s Manager for Trade, Goliath Tujendapi said that it was too early to determine pricing as there would be fierce competition from major meat producers such as Brazil although we are likely to cater for high end restaurants,and supermarket chains.
“Considering current prices in the Hong Kong market the meat would be priced strategically,” the report read.
Meatboard has identified companies that serve retail outlets that cater to four to five star hotels. Tujendapi added that the deals are likely be completed before the end of 2014.
Hong Kong’s Centre for Food Safety (CFS) will be in the country for an audit on import requirements in July.
Food imports into China are subject to a 10-35 % customs duties while value-added tax stands at 17 % and Hong Kong does not levy any customs duties on food imports.
The report encourages the development and implementation of “strong and tactically sound market entry strategies that sets the local meat apart from the rest.
“Meatco and Brukarros joined the delegation as industry representatives. The Meatboard hopes veterinary checks will continue without delay in fast tracking clearance. With Namibia adhering to EU import requirements talks are likely to go unabated,”With predictions of an increase in Chinese food imports including sources of protein such as red meat, it is critical that the nation obtains General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
Although recognised as a competent authority, Namibia is currently not approved to export meat and meat products to Hong Kong. “As demand of the Mainland China is foretasted to grow, Hong Kong is well poised to become a distribution and trading centre for imported food products destined for China,” he report read.
China including Saudi Arabia, Bahrain, are targeted markets for export meat products, with the Chinese market being the largest. The list of countries was reduced from a larger list of 12 potential export markets.
Apart from small pig and poultry livestock production Hong Kong does not have other domestic livestock industry, virtually all meat is imported.
However, strong competition from low cost producers such as Brazil and Argentina, as well as high volume and quality meat producers such as the US, Japan, Australia, New Zealand will see the need to fast tract veterinary export approval from China.
Hong Kong is a free port and does not impose any customs tariffs on the importation of meat. However Hong Kong’s food and beverage industry largely exports its produce.
In 2012, Hong Kong exported HK$41.6 billion worth of processed food and beverage to different countries and regions around the world, of which, re-exports accounted for over 90%. The Chinese mainland being one of the major markets.
Hong Kong company Eurosia Holdings showed willingness to buy a mixed container of blanched beef tripe,and honeycomb immediately to test the market. Meatco is expected to provide a quotation of prices should Spain and Namibia not sign an Economic Partnership Agreement. Meanwhile, YK Plastics Manufacturing, a plastic manufacturing company is expanding into food, has shown interest with seal genitals, oysters, lobsters and crab. The Ministry of Trade and Industry will help in the talks between YK Plastics and the local sea food companies.