November 28, 2006

 

Hong Kong's poultry import rises 13 percent
 

 

Hong Kong's poultry import rose 13 percent from 2005 this year, according to estimates from a USDA report entitled H Retail Food Sector Annual 2006.

 

The increase is built on an 11-percent growth from 2004 to 2005.

 

Total salmon imports however, saw an even more astonishing growth, expected to increase 42 percent after increasing 19 percent last year, figures from the report showed.

 

Hogn Kong imported US$7 billion of high value food and seafood products from the world in 2005, US$820 million of which came from the US, the report said.

 

Total imports in 2006 are running 8 percent higher and are expected to reach US$7.6 billion, while imports from the US are expected to reach US$870 million, a 6 percent increase, the report noted.

 

The US is second only to China in supplying food and seafood products to the territory. 

 

Many factors make Hong Kong an attractive market for US exports.  These include an affluent economy, rule of law, transparent import regulations, free flow of capital, no import tariffs, a sophisticated business infrastructure, and proficiency in English. 

 

The USDA report also pointed out that Hong Kong also serves as an important transshipment point.  Many local traders have strong ties with China, Macao and south-east Asia. 

 

In 2005, Hong Kong ( including tourists) purchased nearly US$14 billion in food & beverage products from retail outlets and restaurants, making it the 11th largest market for US food and seafood products. 

 

Retail sales of food and beverages have increased over 6  percent  in the first 8 months of 2006 and are expected to maintain this pace for the rest of the year.  Given a continuing buoyant economy, retail sales are expected to continue to grow in 2007, the report predicted.

 

Major US export items include fruit, poultry meat and tree nuts. 

 

In the coming years, Hong Kong offers good sales prospects for US exports of eggs, juices, scallops and oysters, wine and organic food products

 

Due to limited land resources and rapid urbanisation, Hong Kong has to rely heavily on imports for its food supply.  In 2005, local production contributed only 4 percent of fresh vegetables, 52 percent of live poultry, and 18 percent of live pigs to local consumption. 

 

Hong Kong's agricultural industry produced US$152 million worth of agricultural products but Hong Kong's total imports of consumer-oriented products and fish & seafood products amounted to US$5.3 billion and US$1.9 billion respectively.

 

The report also noted that in the first nine months of 2006, a total of 18.57 million tourists visited, representing a 9.5 percent year-on-year increase. Hong Kong's Tourism Board expects tourist arrivals to reach 27 million in 2006.  The multiplying effect of inbound tourism would further boost imports of US products, the report said.

 

While both wet market and supermarket sales are increasing, supermarkets are taking a greater share of total sales, the report noted.  The supermarket¡¯s share in terms of retail sales rose from 44 percent of total sales in 1995 to 54 percent in 2005. 

 

In 2000, only US$524 million worth fresh/chilled meat, fish, fruit and vegetables and frozen food were sold in supermarkets.  This greatly expanded to US$684 million in 2005, increasing 31 percent.  This trend is expected to continue.

 

This article provides a list of supermarket agents in Hong Kong for exporters hoping to enter the market, as well as import regulations.

 

For the full article, please click here.