June 9, 2006

China's meat processors aim to increase profit margins

China's meat industry are now interested in brand development and safety as higher profits and sales propelled the industry into addressing marketing concerns. 

Although China's meat industry achieved a 38 percent increase in sales last year, the average profit margin in the meat industry is just 3 percent, lower than the 5.9 percent average for China's other industries, according to Deng Fujiang, deputy chairman of the China Meat Association.

China's Meat Association will jointly organize a seminar in Beijing next month with the World Meat Organization to discuss China's meat development strategy and promotion of meat consumption, along with other issues such as brand management and food safety.

China's meat consumption, though growing, is still much lower than that of many western nations. China's meat consumption per capita is 59 kg, compared to Germany's 85 kg.

China exported around 1 million tonnes, or US$2 billion worth of meat last year, with almost half going to Japan. It imported around 700,000 tonnes of meat worth US$800 million.

Various government measures to help farmers, along with higher demand from an increasingly affluent population, have fuelled growth in the animal industry.