Wednesday, 07 June 2017 10:55

Affco’s value-added foray into China

Written by  Sudesh Kissun
Affco general manager Andy Leonard. Affco general manager Andy Leonard.

Meat company Affco has shipped 33,000 consumer packs of premium beef to China -- its first foray into the lucrative value-added market.

Beef packed in thermoformed vacuum cases, and 200g single steaks wrapped by skin-pack technology are now available in Chinese supermarkets and restaurants, and online via Chinese e-commerce giant JD.com.

The meat packs displaying the Affco brand were packed at the processor’s Horotiu site where the new skin pack technology was installed earlier this year as part of its value added retail sales strategy and certified by Chinese authorities for export.

Affco general manager Andy Leonard says the company does a lot of business in China and its brand is well recognised. He says the company will watch in the coming weeks how the Chinese market responds to the different product packaging and the pricing.

“Initial feedback is that our customers like the packaging and presentation; the New Zealand meat story is alive and well in China,” he told Rural News.

“It’s important for NZ farmers to realise we are reaching the value end of the market, adding value through smaller packages and branding.”

NZ’s reputation for farming meat in open green pastures is intact in the Chinese market, Affco says. NZ grass-raised meat is considered healthy, safe and natural, and consumers are willing to pay a premium for it.

Affco sold this first shipment to two Chinese customers; one had first bought NZ lamb flaps in 1993.

Flaps were then the most common meat export to China, fetching about 60c/kg; now they fetch about $8.40/kg. Affco is shipping beef tenderloin at $35.00 plus per kilo.

Despite NZ beef costing about twice as much as in other countries, it is a popular choice because of its premium positioning, Leonard says. And NZ compared with many other countries is considered an easy place to do business, with a reputation for honesty, high quality standards and robust certification processes.

“Our business is built on the strength of our relationships: we do what we say we’re going to do, and we do it well.”

With more Chinese moving to cities, and the expectation of the Chinese middle classes growing wealthier, the outlook for the high value beef market over the next decade looks promising, Leonard says.

More like this

Gong for Waikato farming leader

Waikato farming leader Sam Lewis says he’s surprised and delighted at being made a member of the New Zealand Order of Merit for services to business and the community in the latest King’s Birthday Honours list.

Winners and losers

The main beneficiaries of the EU FTA will be kiwifruit, onions, honey, wine and seafood.

Featured

DairyNZ: Waikato Farmers Need Certainty on PC1 Rules

DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.

Ravensdown Named Naming Rights Sponsor of A&P Show

Farmer owned co-operative Ravensdown has signed a two-year naming rights sponsorship of the Canterbury A&P Show.

Editorial: Wool's Back in the Black

OPINION: Confidence in the wool sector is rebounding as prices hit levels not seen in more than 15 years.

Queenstown to Host Sold-Out New Zealand Apple and Pear Conference

More than 300 growers, exporters, researchers, service providers and industry leaders will descend on Queenstown later this month for EXPO 2026, the annual conference for New Zealand’s apple and pear sector.

National

Machinery & Products

 

 

» Latest Print Issues Online

The Hound

Great Idea!

OPINION: Central Hawke's Bay farmer Mark Warren recently told the Hawke's Bay Times it's time for a conversation about allowing…

No Choice

OPINION: A nation that relies as heavily as NZ does on functional global shipping lanes will have to do its…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter