Pigs are flying and waving the Union Jack in Jumbo Jet to China
Who would have thought that the old saying “pigs might fly” would come true for forward looking British pig farmers after the countrywide foot and mouth epidemic in Britain 10 years ago?
Everyone is talking about the massive potential growth markets in the BRIC countries (Brazil, Russia, India and China). Yet, we have to realise that there are strong differences in culture, social norms and living standards. The BRIC countries represent huge scope for those exporters who are ready to serve the ever growing middle class population. They can do so by taking their established product concepts to new markets by exploring the product life cycle and managing the project from introduction, growth phase through to maturity over time.
This year, the British pig industry has benefitted from the growing appetite for pork within the fast growing Chinese middle class. Pork is the most popular meat in China; on average one person eats 34 kg per year compared with 25 kg in Britain, 36% more.
The Chinese love British pork and the highly sophisticated breeding programme has opened the doors, as one standard British-bred sow gives birth to 22 piglets compared with only 14 piglets by a Chinese-bred one. With artificial insemination techniques, an adult boar can sire 6,000 piglets a year.
The DEAL
The business agreement is not only based on one way flight tickets for around 2000 pigs but a long term stake in the Chinese pig business.
Seven forward thinking companies are part of this groundbreaking project. The first company, JSR in East Yorkshire, has a confirmed supply contract with Hubei Cereals, Oil and Foodstuffs Company alongside a 1% stake in the Chinese pig business. What a future… The first piglets born of British sow stock will be on sale before Christmas. The potential of this trade agreement is estimated to be worth around £45 million over the next five years.
Highlights:
- Direct partnership
- Fast track learning for the overseas market(s)
- Using the partner’s expertise without middle men whilst having a direct share in the future
- Using the partner established supply chain
- Two way learning long term