Over 95 Percent of Exports of Korean Milk Are to China
The Strongest Point Is Freshness
Recently a Korean food experience event was held in Century Park, the busiest area in downtown Shanghai. Despite the hot weather, the Chinese people who wanted to taste Korean foods kept coming to the park. The milk tasting event was particularly popular with Chinese consumers. The majority of them were mothers coming hand in hand with their children. They tasted many different Korean milk products and were highly contented with the Korean milk.
They pointed to the strengths of Korean milk products - the reliable quality, high food safety, and sophisticated design.
Korean milk products were first exported to China in 2008. Due to an outbreak of FMD (foot-and-mouth disease) in 2010, the exports ceased for a short time, but soon picked up and jumped from USD$621,000 (304 tons) in 2011 to USD$4.05 million (2,185 tons) in 2012. In short, the export growth shown by Korean milk into the Chinese market has been explosive. More than 95 percent of all exports of Korean milk go to China. There is good hope that this year’s exports will reach USD$10 million.
Chinese Consumers Can Purchase Fresh Korean Milk Just Three to Four Days After It Was Produced
Why are the Korean milk products so popular with Chinese consumers? The biggest reason is that the high-quality, fresh milk can be quickly supplied to China. In general, a sell-by date for a fresh milk product is around two weeks. According to Chinese regulations, to export fresh milk products to China, the customs formalities must be completed within three days of the production date and the products must be displayed in local stores and supermarkets within seven days. The Korean fresh milk products are able to meet all these requirements within three to four days after they were produced.
Very Popular with Chinese High-income Group
The Korean Fresh milk products are mainly sold in high-end department stores and premium supermarkets of major Chinese cities including Beijing and Shanghai. On average, the fresh milk is sold at the price of 35 yuan (about USD$5.50~6.00) per liter. This is more than double the price for the Chinese fresh milk. The regular customers for the Korean products are mainly the Chinese high-income group and mid-income earners. The sterilized Korean milk products also receive a good response from the Chinese people. Consumers often opt for these products because they can be stored for a longer time. The Korean milk products that are currently exported to China are Yonsei Milk, Seoul Milk, and Maeil Milk. Recently, Nonghyup Mogu-chon has also succeeded in getting distribution in China for its sterilized milk products.
Who Are the Milk Hallyu Quartet?
The Korean Fresh milk products are mainly sold at a high price in high-end department stores and premium supermarkets of major Chinese cities.
Yonsei Milk is the largest fresh milk exporter to China. The company is actively distributing its fresh milk products in major Chinese cities such as Beijing, Shanghai, and Qingdao. Yonsei only uses the first-grade ranch raw milk. Its quick fresh milk delivery system is also a strong point. The company makes it a rule to produce its fresh milk products every Monday and have them supplied to the Chinese high-end department stores and big supermarkets on Thursday of the same week. Yonsei’s flagship products include fresh milk (Fresh Farm Milk, 223ml and 1000ml) and processed milk (banana-flavored milk, blueberry-flavored milk, 223ml). The company is also exporting to China its sterilized milk products (banana, strawberry, and melon flavored). Overall, it ships about 60 tons of milk products to China every week. Yonsei is planning to expand its milk sales network to Chinese small-and medium-sized cities like Tenjin, Nanjing, and Yantai.
Inquiries Yonsei Milk (of Yonsei University)
Tel +82-2-325-3876 E-mail firstname.lastname@example.org
Seoul Milk is a leading milk-producer that ranks at the top in terms of Korean market share. It was also the pioneer of Korean milk exports to China. The company is now promoting its milk products to consumers in big Chinese cities including Shanghai and Beijing. The flagship products of Seoul Milk are sterilized milk products (original, strawberry-flavored, and milk chocolate-flavored milk, 200ml and 1000ml). They are actively supplied to major supermarkets and Korean stores in China. Seoul Milk’s fresh milk products are also steadily exported to the Chinese market. This year, the company is making efforts to cultivate the market in the Chinese inland areas such as Chongqing and Chengdu.
Inquiries Seoul Milk Tel +82-31-905-5386
Nonghyup Moguchon started making inroads into the Chinese milk market this year. The first product it has offered on the market is Moguchon Sterilized Milk (200ml and 1000ml). The product is made of first-grade sterilized farm milk and can be stored at room temperature. The expiration date is at least 16 weeks after production. In June, 20 tons of Moguchon sterilized milk products were exported to China and distributed to the local big supermarkets. The product was also recently displayed at the 2013 K-Food Fair in Shanghai where it received a very favorable response from consumers and many inquiries from Chinese buyers ensued. Nonghyup Moguchon has a plan to start exporting its processed milk products (banana-flavored milk) to China.
Inquiries Nonghyup Moguchon
Maeil Dairies Co., Ltd. produces many different types of dairy products - milk, fermented milk, soybean milk, powdered milk, and so on. It is famous in China as an exporter of premium powdered milk products. The company is now exporting to China small quantities of its sterilized milk products. The supplied products include original milk, strawberry-flavored milk, and chocolate-flavored milk. The original sterilized milk is particularly notable for its aromatic taste. The reduced-fat sterilized milk product also received good responses. Sangha Farm is one line of products of Maeil Dairies, which is popular in Korea as a premium fresh milk brand but is not yet sold in China.
Inquiries Maeil Dairies Co., Ltd.
Tel +82-2-2127-2160 Email email@example.com
Park Sung Eun firstname.lastname@example.org
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