Made In KZ eco-friendly goods enter Chinese market
The prospects within food industry cooperation between Kazakhstan and China are almost boundless. The huge market and the growing consumer demand for environmentally friendly foods open up great opportunities for North Kazakhstani producers. Owing to the Belt and Road Initiative, China shows interest in our country as an advantageous partner.
So that to facilitate promotion of Kazakhstan-made goods in China, Kanat Baimukhambetov, an entrepreneur from North Kazakhstan, studied the specifics of the country's market for six months. As a result of the tremendous work, he reached an agreement to open the first pavilion of Kazakhstani goods in the largest trading house in Wuhan.
"We created Green Gold SKO Company to promote our products in the PRC. It is the world's largest market, where competition is colossal. Just supplying and selling goods is not enough. For over 6 months, we have been in China to study the requirements for the products. We were conducting an analysis and negotiating. We needed to understand the required composition, packaging, and lots of ins and outs. Entering the Chinese market, we should not compete, we should rise a level higher. We do not have enormous volumes of products we could supply. However, we can offer high-quality goods," says Baimukhambetov.
North Kazakhstan's products are peculiar for natural origin. There is a rising trend for eco-friendly foods in China. They are in great demand and high price. However, it is necessary to prove a Chinese consumer that the product is actually environmentally friendly. Nobody will buy a pig in a poke. Moreover, it is necessary to have confirmation from Chinese laboratories, examinations.
Kanat Baimukhambetov said that it is serious and painstaking work, but it's worth it. Thanks to the cooperation between the governments of Kazakhstan and China and the Belt and Road Initiative, an agreement for the exports of honey and mutton was reached. Almaty and East Kazakhstan regions obtained certificates approving the quality of honey. North Kazakhstani beekeepers have every chance to obtain the same document and arrange stable supplies of goods to China.
There are vast prospects for agricultural producers supplying mutton. Baimukhambetov is sure that Kazakhstan-made meat can be in competition with products of Argentina or New Zealand. These are the countries which are now exporting meat to China.
"We can supply environmentally friendly meat. Our products are GMO-free, and this is the main requirement of the Chinese side. Our region's leaders have the right attitude in terms of livestock development. (...) In Kazakhstan, there are only 5 plants that have received permission to export meat to China. With our capabilities, we can become the largest exporter of meat. We have fields, feeds, and government support," Kanat Baimukhambetov said.
The entrepreneur says that for now, they have chosen a certain list of goods with which the region enters the Chinese market. These are, primarily, flour, sunflower oil, colza oil and products made by Raduga LLP such as flour, sunflower seeds, and instant potatoes. It was these goods that the Chinese delegation liked.
"Logistics from our region to China is not entirely convenient. Nevertheless, we brought our products to a small fair in Xi'an, Shaanxi Province. These were, mostly, several varieties of flour. Our products kindled the interest of local companies. In China, the flour quality standards are different. There is a certain class of flour used for the manufacturing of confectioneries, for noodles. In general, flour in China, mainly, used for the manufacturing of noodles. The local people consume it in large quantities. Some quantity of flour is used for baking bread," says Baimukhambetov.
It is also necessary to take into account the peculiarities of Chinese provinces. In some of them, the use of flour is extremely little.
Another issue is logistics. Here it is necessary to solve the problem at the governmental level. In this regard, entrepreneurs put high hopes on the Belt and Road Initiative.
Kanat Baimukhambetov's work resulted in an agreement for the establishment of a Kazakhstani pavilion signed with Trade City in Wuhan.
"We were the first to get the trading space free of charge for one year. In the future, the agreement will be prolonged," the businessman is sure.
Cooperation between Kazakhstan and China is mutually advantageous. The Chinese side gets a reliable supplier of environmentally friendly food products, while Kazakhstan accesses a huge market for products, which, in turn, will improve the development of the agricultural sector in particular. Entrepreneurs are confident that while complex logistics will change for the better owing to the Belt and Road Initiative.