Interview Show Branbergen
"China offers great potential for Jersey milk"
After South Korea, China is the next distant market for Holland Jersey. The cooperative, to which about twenty dairy farmers are affiliated, sees great opportunities in this market. Especially in the higher segment. "We focus on markets with potential. China is a large market, where dairy consumption is growing," says Toon Branbergen on behalf of the dairy cooperative.
Congratulations, the first export containers to China are a fact! What volumes are we talking about, now and in the future?
"Thanks! I find it difficult to make statements about this. Look, we have only just started. In addition, China has recently gone through a lockdown, which has slowed demand. But we are not tapping the Chinese market for a few pallets, so to speak. The goal is to export a regular flow of Jersey milk there. There is a lot of potential, the first follow-up orders are now in the books."
How exactly do you work?
"We work together with a Chinese partner. That is Gold Tulip, an international trading company in Shanghai. They know the market and the legislation well. export flow, from idea to realization. This is a lengthy process that requires the necessary patience."
Jersey milk is relatively expensive, what kind of consumer in China are you targeting?
"Jersey milk is a premium product that fits the current zeitgeist, that does indeed include a premium price. Jersey milk is not necessarily known in China yet, but there is a need for premium dairy products there. In coffee, for example, "But in China, milk is also often used in tea. Milk is a luxury product in China and is often given as a gift, such as when we give away a bottle of wine. That is why we will soon be starting with small packaging in addition to 1 liter packaging."
With approximately twenty dairy farmers, overseas export is not necessarily a must, you would say. Where does that ambition come from?
"Export is in line with our commercial ambitions. We focus on markets with potential. China is a large market, where dairy consumption is growing. Last year we also started exporting baby milk powder, based on Jersey milk, to South Korea. The Dutch market is also important and we also focus on exports within Europe, after all, that is our home economy. The Middle East is also interesting, for example, we are exploring the market in Saudi Arabia. we remain a niche player and not interested in bulk trading, others do that."
Finally, the dairy market is dominated by shortages. What do you notice about this?
"We hear that, the increase in the milk price is in line with the prevailing milk prices. In addition, the cost inflation in the chain is clearly noticeable due to the rising fuel and energy prices. Packaging material has also become considerably more expensive. Due to our size, we are reasonable flexible, but as a result we sometimes run into other challenges.
Wouter Job
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