November 1, 2006

 

Chinese agribusiness topics at agriChina kick-off meeting
 

Press release
 

 

The agriChina workshop was held last week for the agricultural industry and companies with an interest in China. Experienced experts on China presented a range of topical agribusiness issues:

• Sales and marketing structures in the machinery sector
   
• Mechanisation in northern and north-eastern China
   
• Intellectual property rights
   
• Case studies on a successful entry strategy
   
• Communication tips for negotiations with Chinese business partners

The one-day event, which was held in Hanover, Germany, on Oct 17, 2006, confirms that while China's huge agricultural market has great business potential for mechanisation, networking is essential for a successful business outcome.

 

The agriChina international agricultural exhibition and technology forum, from Apr 26-28, 2007, in Beijing, is the meeting place for decision-makers in China. It offers an ideal platform to exploit opportunities, establish Chinese contacts and network with other businesses in China.

 

Dr Gruchow of Deutsche Messe AG, Hanover, welcomed some 40 participants who attended the workshop organised by DLG Agriservice and Deutsche Messe AG. The workshop was attended by representatives from the industry, service providers and organisations either with existing offices in China or plans to expand into the region.

 

Ralph Marohn, General Manager, Far Eastern Limited, stated that China could not be viewed as a single country. In his presentation titled "The agricultural engineering sector in China: Investment behaviour and sales and marketing structures", he recommended a regional approach for the "Continent of China" that includes a continuous search for various trade partners and a strong personal presence in chosen regions.

 

Shiyan Zhang presented results from her research conducted at the University of Hohenheim, which consists of a base line study on mechanisation of agriculture in northern and north-eastern China.

 

Dr Joachim Glatter, practising lawyer at TaylorWessing in Frankfurt/Shanghai, gave a presentation on the legal framework in China and the issue of intellectual property rights titled "From supply contract to investment: legal issues and business practices in China; protecting intellectual property." China does have the legal framework in place for protecting intellectual property, and protection can only be enforced when the item to be protected has been registered under Chinese law.

 

For the programme's case studies, Gerhard Horn, marketing director of K+S Kali GmbH gave a presentation on his company's experiences and emphasised the importance of networking in China, known as "Guanxi". This is also the way in which local traders and distributors operate.

 

Ralf Strassemeyer related his experiences at Masterrind GmbH and concluded that patience, time and investment are significant factors for successful entry into the Chinese market.

 

Yung Wang from the Chinese Centre in Hanover, in his presentation "Intercultural training: communication with Chinese business partners", outlined the main difference in cultural mentality and working behaviour in China. For example, there are words for "yes" and "no", but they need to be interpreted with care and sensitivity by Europeans. Knowledge about cultural differences is critical to good business relationships with Chinese partners.

 

Dr Hans Flörkemeyer of DLG's travel agency AgrarTour gave a presentation on travel and accommodation in China during the period of the agriChina exhibition and outlined the agricultural excursion programme on Apr 29, 2007.

 

Karl-Martin Luth, manager of international cooperation at DLG and DLG project manager for agriChina presented agriChina 2007 as a meeting place for decision makers from the agricultural industry, trade, farm businesses, science and education as well as administration.

 

He concluded that China's agriculture sector offers huge business prospects especially now that rural development is receiving government support and political priority in China's present five-year development plan.

 

Exhibiting at agriChina is an opportunity to test market interest for a product or service, and to establish relevant contacts face-to-face.

 

Christian Rönisch from Hannover Messe International gave detailed information about the envisaged German national pavilion, terms and conditions for participation and the extensive services included. However, this offer only applies to companies based in Germany.

 

Dr Jochen Köckler, Managing Director, DLG Exhibitions Department, concluded the workshop by underlining that topics had been carefully selected to offer relevant information for the agricultural industry and service providers with an interest in China.

 

There are more opportunities than risks associated with a venture in China. China's incredibly huge agricultural market is expected to be booming over the coming years. Companies should consider an individual and customised market analysis, which takes time but is worth the effort. agriChina offers the framework and companies are invited to make use of this unique international agricultural platform.

 

For more information on agriChina 2007, click here.