'Dutch dairy misses opportunities in China'

Marion Tjin-Tham-Sjin is the daughter of a Chinese father and Dutch mother and has been running 'Splendid China' since 2006. That company has offices in Appingedam and Shanghai and supports parties that want to export to China. Last week, Tjin-Tham-Sjin spoke at a meeting of knowledge cooperative Niscoo about the theme: 'How China is conquering the world'. She also discussed the opportunities and challenges for the agricultural sector.

Increasing prosperity
"The biggest opportunity for trade with China is that the middle class is growing very quickly. 400 million Chinese now earn between $10.000 and $50.000, they can afford luxury food products and are eager to consume them. This also includes products from the West Dairy from the Netherlands from cows in Dutch pasture certainly works for the wealthier Chinese consumer," says Thin-Tham-Sjin.

According to her, the Chinese government is working hard to increase the level of self-sufficiency. "They encourage and facilitate farmers through various subsidies." However, due to increasing prosperity and the demand for high-quality, more luxurious products, the demand for Western products will remain at least at the same level as now in the coming years, she estimates.

"In addition, 'only' approximately 10% of the land in China is suitable for agricultural land. Large-scale research showed 5 years ago that almost 20% of that agricultural land is polluted and to a greater or lesser extent unsuitable for food production. and healthy crop growth."

Idea for FrieslandCampina
The statement that the Chinese consume little or no dairy is increasingly outdated, according to Thin-Tham-Sjin. "Many of the Chinese lack an enzyme, which makes them lactose intolerant. However, this is evolving, because more and more young people and children do have this enzyme. The sales market for dairy is also growing in this way."

She estimates that the demand for fresh dairy from Europe in China will increase significantly in the coming years. "I have also expressed my ideas about this to FrieslandCampina, where I worked a Blue Monday in 2006. They are not interested in it yet. Logistically speaking, it is indeed challenging to market fresh dairy from Europe in China, but I think that can be managed. The market demand is there and will grow in the coming years, I am convinced of that."

The Dutch dairy market has a good reputation and many companies benefit from this, but according to Thin-Tham-Sjin there is room for more and better. "Dutch cheese is already offered and consumed in various Chinese cities, but ask a Chinese person about the cheese country in the world and he will say Switzerland. There is still some work to be done for the Netherlands."

Dutch baby food is such an important, luxury export product. With a decline in the birth rate, sales of that product are under pressure. It is remarkable that the birth rate in China is declining; prosperity is increasing and the one-child policy was abolished in 2016. "Perhaps it is because they are so used to having at most 1 child or they think a second child is really too expensive," Thin-Tham-Sjin speculates. "It is an item in Chinese politics. The country is aging and increasing prosperity requires more workers. A surcharge for having a second child could well be on the agenda in China in the coming years."

More trade with Europe
Thin-Tham-Sjin, who became 'World Businesswoman of the Year' last year, states that China is done with American President Donald Trump and his policies from the United States. "That clearly offers opportunities for Europe, also in the agricultural field," she says. "A tangible example of this is the release of veal imports. China is really looking to Europe, that much is clear."

In addition, the Chinese do everything they can to trade. By trading all over the world, China is slowly but surely conquering the world. "The United States sometimes seems to like to go to war, but that is certainly not the case in China. China always adopts a neutral position and does business everywhere."

Renminbi becomes world currency
That power is becoming increasingly visible on all sides. Thin-Tham-Sjin says this is expected to be reflected in the currency used for global trade in the foreseeable future. "At the moment it is still the US dollar, but there are indications that China will soon convert this to the renminbi, the Chinese currency. The first oil has already been traded in Renminbi."