18 Dec, 2008 - The head of China's food industry body has said the level of imported processed foods will increase their market presence in China over the next five years despite the effects of the global recession.
Wang Wenzhe, chairman of China National Food Industry Association said the trend towards more imported foods in the years to come was inevitable – with imports set to reach 1 trillion Yuan (US$147 million) by 2013.
"The most important thing is that we are better off than we were 30 years ago," he said
He added: "With the global economic crisis as the backdrop, it will be very important to boost international trade in order to improve the competing power of China's food industry.”
The National Bureau of Statistics showed the per capita disposable income for urban dwellers rose from 343.4 yuan (about US$50.5) in 1978 to 13,785.8 Yuan last year. The per capita net income for rural people also went up from 133.6 yuan to 4,140.4 Yuan last year.
Improved Performance
China’s food sector last year generated 3.27 trillion Yuan compared to 47 billion Yuan in 1978.
The country's food sector generated 3.27 trillion Yuan last year, compared to 47.1 billion Yuan in 1978. The sector's sales revenue is expected to skyrocket to 4 trillion Yuan this year.
In 1992, Wang said China exported US$ 9.6 billion worth of foodstuffs, while imports were valued at US$4 billion. However, while food exports soared to US$32.3 billion last year, imports were fast closing the gap, rising to US$30.6 billion.
At present, imported food is available only at exclusive chain-stores established by multinationals. Since the explosion of these stores five years ago in major Chinese cities, volume has increased at an annual rate of 15 percent.
This assessment was backed by other industry experts who believe importing high-end foodstuffs from foreign countries will not only help boost a consumption trend and meet market demand, but also advance the incorporation of the agricultural and food industries. This could be crucial in helping China's food sector develop from primary processing to in-depth processing.
Zhang Li, chief of consumer product industry division of the Industry and Information Technology Ministry, said China consumption of processed food lagged behind that of the West – accounting for just 30% in China compared to 60 to 80 percent in developed countries.
Zhou Xianwang, chief of Hubei Provincial Bureau of Commerce, said demand for imported foods followed as a direct result of improved living standards.
He said: “The leading force of the domestic consumption market in China in the forthcoming decade will be the only-child generations born in 1980s and 1990s, who are more ready to embrace the consumption tide of imported food.”