Day of deals on Coveney agri-mission to China

EQUINE PRODUCTS group Connolly’s Red Mills has been named the first animal feed company in the world to secure a licence to import horse feed into mainland China, one of many deals signed yesterday during an agri-services trade mission to China.

The deal is potentially worth several million euros, said Red Mills’ managing director Joe Connolly. The Kilkenny-based company started the Chinese registration process in 2007.

“We are delighted to see it come to fruition. This business is a core competence of Ireland. Although the Chinese horse market is still emerging, there is considerable potential and advantage for us by being first past the post,” said Mr Connolly.

The Department of Agriculture signed the agreement for the animal feed licence with Chinese officials in Beijing during the trade mission being led by Minister for Agriculture Simon Coveney.

The family-owned company has a strong presence in Asia, including Japan, Hong Kong, Singapore and Malaysia.

Fruit producer Keeling’s also signed a licensing agreement with one of the largest fresh produce companies in China for the customisation and implementation of its enterprise resource planning system.

The system was designed in-house, group managing director Caroline Keeling said, and delivers a highly efficient supply chain management tool. The company has also appointed Dermot Ferris as managing director for Asia and Africa, and Dan Zou as general manager for China.

Keeling’s has previously signed a procurement contract with a pear grower in Xinjiang for a premium quality fragrant pear which it plans to introduce into European markets later in the year.

Keeling’s also made the first Irish application to the Chinese authorities for a licence to export Irish-grown fruit directly to China.

Limerick-based Samco Agricultural Manufacturing signed a deal with DuPont business Pioneer, through its joint venture partner Dunhuang Seed Pioneer Hi-Bred Co, to bring a corn silage system to China.

The Samco machine lays a thin layer of biodegradable plastic film over the soil at the time of sowing which increases soil and air temperature.

The new corn silage system will help to bring improved productivity to China’s northern corn growing areas and rapidly expanding dairy industry by extending the corn-growing season up to three additional weeks.

“Farmers have successfully used this equipment paired with top Pioneer hybrids in northern climates around the world for over a decade,” said Samuel Shine, Samco managing director.

The Irish Dairy Board said it was expanding its presence in China with the launch of Kerrygold UHT Milk, and has signed a distribution agreement with Chinese company Algrow Trading Company, based in Beijing, to distribute its products in major urban centres including Xi’an, Zhengzhou and Wahan.

Kerrygold Irish butters and cheese are sold in Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu and Hangzhou with a combined population of over 150 million.

Kerrygold was first launched in Beijing in 2008, and has shown steady growth since its launch with a doubling of sales last year.

A key factor in the mission has been how to get Irish beef back into China – it banned Irish and EU beef after health scares back in the early part of this century.

Mr Coveney said there had been an agreement to set up a joint working group on market access for Irish beef to the Chinese market involving the Chinese inspection and quarantine service and his department.

“This is a major step forward and one of the few such joint working groups which have been established by the Chinese authorities. We are working to build on the momentum from the Taoiseach’s visit last month.”

Vice-minister Wei from the quarantine service will visit Ireland in June, when beef market access will be discussed further.