Export with added value
By José María Otamendi.
Foreign trade is very important for the growth of our country, and especially for the food industry, since we are considered a power in that sense.
But, paradoxically, we have been exporters of primary products, but not so much of processed foods. Perhaps this time is the time to move on to the second stage, that is, to export that raw material, but with added value.
We must offer ready-to-eat products to the international market, something that the world today demands more and more.
There is a market that has not yet been explored by our country, to offer processed foods, mainly frozen, where we find in Asia, the Middle East and in some European countries, an increasingly growing demand and with great purchasing power.
Although our country exports a variety of products, such as soybeans, oils, and beef, there is even greater potential to export products such as frozen pizzas, meat hamburgers, veggie products, etc.
We believe that if we can generate these exports, not only will there be a significant inflow of foreign currency to the country, but it will also boost the increase in Argentine labor through the growth of production companies, since many of them should expand their plants to export these products to the enormous Asian market, for example, and as they say, exporting is a generator of genuine labor.
If we focus on a country like China, for example, we find that this Asian giant has experienced significant economic growth and high purchasing power in its middle class and currently has a more cosmopolitan life.
It is currently one of the world powers, with exponential growth and projections of possibly being the greatest world power in the coming decades.
There is a traditional China with deep-rooted customs, but at the same time a China of the future where the new generations are looking for a life more open to the West, with China today being an advanced country, where many call it “digital China”
In the so-called coastal area of China where more than 95% of its population lives, international products have been consumed for some years.
The frozen food market is a growing commercial segment worldwide, driven by today’s lifestyle.
Nowadays, it is unthinkable to do without frozen products in the daily diet since practically all households buy these products.
In this sense, it is estimated that the Asia Pacific area is the fastest growing region in the sector.
It is estimated that the global frozen food market will reach USD 380.5 billion by 2027, with a compound annual rate of 4.4%.
In the specific case of China, it has the largest share in the Asian market for packaged frozen foods.
In addition, as we have mentioned, its large, growing middle-class population with high purchasing power, its marked change in its eating habits and its more Western consumption, makes this market a potential buyer for Argentine processed products.
The distribution channels for frozen foods have improved a lot and this has facilitated the access of these products to more consumers.
In closing, we can say that the ready-to-eat food market (frozen and dry) is highly competitive and could boost the exponential growth of Argentine companies, improving their profitability, expanding their production plants, generating more genuine employment and promoting innovation in companies to meet the demand for these products worldwide.
Source: https://reporteasia.com/opinion/2024/05/28/export-with-added-value/
José María Otamendi is Partner & CEO at Global Trading Bridge, a company that exports and distributes processed food products from Argentina to the world, focusing on China and Hong Kong. It exports processed products with “added value” to Asia and other European countries, focusing on products with an international concept.