One of the stories we cover this month looks at Shengmu Farming’s plans for expansion. The growing interest in organic foods in China has been evident for some time – and was confirmed earlier this year by the growing attendance figures for the trade show Biofach 2013 in May, which also saw a 38% increase in the number of exhibitors vs 2012. There has also been a proliferation of organisations like Share the Harvest and Little Donkey in Beijing, and Tony’s Farm in Shanghai, which run urban farms and farmer’s markets.
The new interest is fitting, following the government’s moves in 2012 to improve standards in the sector. Certification in the 1990s was invariably for the export market. This is still important – the US has been importing increasing volumes of organic soybeans from China, for instance. However local demand is now a key driver – even though obtaining organic certification in China is an arduous, expensive process and often marred by corruption. This also makes some businesses hesitate to import organic milk from overseas, though the market’s interest is evident. Many organic dairy operations in China are very small still of course – Green Yard in Beijing is a good instance. The Shengmu Farming business seems well-placed to take advantage of the market opportunity, which has been provided with added impetus as consumer distrust of China’s food industry has spiralled in recent years.
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