Product ScanPart II

Consultant Presentation 2012 Nashville Meeting

Product Scan

Meat & Fish

Tree Nut

Fruit & Vegetable

Several categories in the total food exporting from U.S. to China enjoy a stable performance in terms of value, showing its wide recognition in China. These categories are considered to be easier to gain market access. U.S. companies, especially new exporters could start with these items.

Product of Strength in Exporting

U.S. Exports of Agricultural Products to China/HK

2011 (In Thousands of Dollars)

Product Value Growth(%)

Fish Products 1,267,335 52.97Red Meats 1,074,401 102.78Tree Nuts 1,043,444 28

Poultry Meat 461,718 23.29Fresh Fruit 411,317 21.63

Dairy Products 382,808 52.87Processed Fruit &

Vegetables 293,800 23.05

Wine and Beers 182,361 56.18Red Meats, Prep/Pres 132,146 -1.08

Snack Foods 94,570 32.11Eggs & Products 39,751 45.64

Pet Foods 39,434 34.39Fruit & Vegetable Juices 35,162 13.16

Breakfast Cereals 17,288 10.75Fresh Vegetables 13,842 39.88Nursery Products 6,520 27.96

Product Scan

Product of Potential in Exporting

Certain categories have witnessed robust growth in exporting to China/HK during the past year. It manifests the popularity of the items among Chinese consumers and buyers. These products are considered to have great potential for expansion in the upcoming years.

Wine & Beer

Seafood

Dairy Products

U.S. Exports of Agricultural Products to China

2011 (In Thousands of Dollars)

Product Value Growth(%)

Red Meats 1,074,401* 102.78Wine and Beers 182,361* 56.18

Fish Products Total 1,267,335* 52.97Dairy Products 382,808* 52.87

Eggs & Products 39,751* 45.64Fresh Vegetables 13,842 39.88

Pet Foods 39,434* 34.39Snack Foods 94,570* 32.11

Tree Nuts 1,043,444* 28Nursery Products 6,520 27.96

Poultry Meat 461,718 23.29Processed Fruit &

Vegetables 293,800* 23.05

Fresh Fruit 411,317* 21.63Fruit & Vegetable Juices 35,162 13.16

Breakfast Cereals 17,288 10.75

Product ScanValue-added Items

Easy in market access with fewer restrictions

Confectioneries, cookies, chips, dried fruits, tree nuts, cereals, beverages etc.

Fierce competitions from existing suppliers and targeted by most new entrants

Popular Items in China

Product Scan

Popular Items in China

Food Ingredients

Immature market, but growing demand with the advancement of the foodservice and bakery channels

Meat, seafood, dairy, seasonings, bakery ingredients etc.

Fewer competitions, but relatively lower awareness

Product Scan

Distribution Channel

Foodservice LogisticsRetail

Over 18 years’ double digit growth rate generated sales of USD 327 billion in 2011

More dinning out and international events

Over 30,000 western style restaurants & 39% growth in bakery sector

Accelerate building of cold chain system

Over 20,000 cold storage with capacity of 8.8 million MT

20,000 tracks ad 1,910 trains for shipping of chilled or frozen items

More logistics centers are set up nationwide

To be 3rd largest retail market of USD 2 trillion by 2025.

Most of global retail groups have entered China.

Emerging high-end gourmet stores with over 50% imported food.

Product Scan

Note-worthyFacts

Additional Charge for Products Shelf listing Fee Bar Code Fee Other Costs

Rely on Qualified Suppliers Source from importers or

distributors Need timely delivery,

sometimes of daily basis

Absence of Import RightsHotels & restaurants usually

could not import directly from overseas

Diversified Format Supermarket/Hypermarket Convenience Store High-end Gourmet Store Internet/TV Retailing

Distribution Channel