Driven by rising levels of disposable incomes and concerns over domestic food safety across China, an increasing number of Australian food and beverage producers are now capitalising on this significant market opportunity.
Peloris has invested considerable time and resources identifying the critical success factors to develop a commercially sustainable China market access solution for food and beverage imports in general, and fresh produce specifically.
We came to the conclusion that the two primary reasons why producers failed to convert their export potential in the China marketplace were:
- A lack of knowledge of the relevant China food import regulatory requirements
- A lack of visibility of their export product once the shipment had arrived in China.
These two factors led to frequent border clearance delays, shipment failures and in some instances, the suspension of their export license.
Of those shipments that did successfully clear the China border, reduced shelf life (due to extended border clearance lead times), unreliable customer delivery, and poor product quality (due to inadequate condition monitoring during transit), did little to encourage export sales growth.
Food Safety Legislation
Peloris provides expert consultation on the relevant China food import legislation and any other border clearance requirements including technical and other trade barriers. We also ensure producers are fully cognizant of any relevant food export legislative requirements.
The 2015 China Food Safety Law, widely regarded as the toughest food import legislation ever enacted by the China government, comprises 10 chapters and 154 articles prescribing food safety standards, labelling, and advertising, food inspection, handling of food safety incidents and legal liabilities including consequences for noncompliance.
In addition to the China Food Safety Law, other food health and safety legislation may apply to specific food categories such as infant milk formula and health supplements.
Although complex and often confusing, China import regulations are not arbitrary and are almost always based on achieving a logical outcome.
Peloris has developed a strong relationship with China central regulatory authorities as a consequence of our willingness and ability to operate a transparent and fully compliant import channel and we are often consulted or advised on upcoming regulatory changes.
For the food producer seeking to develop China export markets, Peloris brings a wealth of knowledge, expertise and practical experience to the table, assisting them in their awareness and understanding of China’s complex regulatory environment, their obligations as a producer and the obligations of their distribution partners in China.
We provide expert consultation on the relevant China food import legislation and any other border clearance requirements including technical and other trade barriers.
We also ensure producers are fully cognizant of any relevant food export legislative requirements and appraised of any changes or developments.
Peloris was recently appointed as an Executive Committee Member on the China Chamber of Commerce of Foodstuffs and Native Produce (CFNA) recently formed Food Import Council. As a member of this committee, Peloris will have direct access and input into China food import policy discussions and directives.
Peloris’ knowledge of China food import market compliance is unparalleled.
China Market Consultancy
A comprehensive range of market compliance services including accreditation, registration, regulatory advice, product compliance, distributor vetting and site audits.
Easy to read reports that highlight the pros and cons of the various pathways open to the producer’s food category.
Face to face workshops and on-site visits to explain, in detail, the various trade and technical barriers that will be encountered and how these are best overcome.
Developing a sound export strategy helps the producer define their export goals, identify the market sectors defined as core business and select the most appropriate import pathway(s) and partners to service those sectors.
With more than 1.3 billion potential consumers and a rapidly growing middle class, it is easy for a producer to fall into the trap that their product will sell itself if only they can get it there.
This is not usually the case – the China consumer is one of the most connected and discerning consumers in the world, with the ability to validate product authenticity and conduct price comparisons instantly via their smart phones.
Peloris offers food producers guidance in preparing an objective and quantifiable China export strategy, with realistic sales targets (based on quantifiable data), and benchmark market information to enable correct product positioning and pricing strategies.