Leatherhead forecasts slowdown in growth for Chinese exports

China is a net exporter of food and drink, with exports in volume terms worth between 25 million and 30 million tons, says Leatherhead Food Research.

By value, exports were worth over $31 billion in 2008, although lower growth is forecast for 2009 as a result of the melamine scandal.

Whilst the most significant overseas markets for the Chinese food and drinks industry include nearby Asian countries such as Japan, South Korea and Malaysia, the country is also a major exporter of food and drink to the US, where it has been assuming increasing prominence in sectors such as fresh produce and fish and seafood.

It is also a major exporter of food and drink to EU countries and Russia.

The country's growing significance as a supplier to the global food and drinks industry is mainly the result of its economic performance, together with the development of its domestic food industry.

The Chinese economy has been experiencing double-digit increases in recent years, although lower growth is forecast for 2009 as a result of the global economic downturn and its effect on China's overseas export markets.

Much of the recent economic growth has occurred in coastal provinces, which has resulted in up to 200 million rural laborers and their dependents moving to urban locations.

China's food and drinks industry has developed in line with the country's economy.

By value, food industry output has increased by more than 150% between 2004 and 2008, whilst its food retail market has witnessed a shift away from more traditional outlets such as wet markets to modern grocery stores.

Food and beverage manufacture and processing now accounts for nearly 7% of industrial production in China, with much of the country's domestic food industry concentrated geographically on the eastern coast, in cities such as Shanghai.

However, concerns persist that much of the food industry's recent expansion has come at the expense of food safety and quality.

Safety scandals such as the melamine scare have rocked the industry, leading to all manner of negative outcomes.

These have ranged from bans on imported Chinese foodstuffs abroad to even illnesses and deaths as a result of consuming contaminated products.

In response, a new food safety law came into effect in June 2009, which consolidates hundreds of separate regulations and statutes, and replaced the existing Food Hygiene Law.