Meat into China a long term prospect

Southland-based Blue Sky Meats is eyeing the prospect of supplying high-value meat products to China but warns it could take 10 years to achieve the full market potential. Company chairman Graham Cooney said the signing of a Free Trade Agreement with China last year and an expectation that the Chinese currency would continue to appreciate over time had triggered the move reports The Southland Times.  The focus would be on higher value products, a step forward from the lower value meat and offal currently sold in that market, which would continue. Traditionally, the lower value product had been sold as a commodity to suppliers and finishing product companies that developed it into customer-ready goods. It was felt there was an opportunity to supply a premium product to target expatriates and increasingly affluent Chinese, as well as luxury restaurants and hotels, he said. However, it was not likely to happen immediately and could take up to 10 years to develop the market and see the full benefits. The company was fortunate to have New Zealand contacts in China, which was helping to open doors. Letters of intent signed with Chinese importers and processors were being followed up. Earlier this year, Blue Sky Meats reported a significantly improved trading result of a $3.9 million after-tax profit for the  year ending March 31, compared with the previous year. Higher processing numbers, particularly of capital stock because of farmers moving from sheep to dairy, in the first three months and a favourable New Zealand dollar had boosted the company's profit. Extra stock was turned away in summer because of pressure on space availability but that eased in March. The kill for the year was 1.7 per cent higher than the previous year.