Landmark China deal on horizon for Slaney Foods
TRADE PATHS are now well and truly open from Clohamon to China after it was announced yesterday (Monday) that the Chinese market had officially opened up to meat exports from Ireland.
Slaney Foods in Clohamon is one of three factories in Ireland with deals in place to begin exporting to China within the next couple of weeks, a trade route which could be worth millions to the company over the coming years and which is particularly important with the onset of Brexit. Slaney Foods managing director Rory Fanning, pictured, said that the deal was a ‘major vote of confidence’ in both Ireland and Wexford and could be vital in the coming years, with China consuming more than a quarter of the world’s meat.
THERE was big news for Slaney Foods International in Clohamon yesterday after it was announced that the Chinese beef market had officially been opened up to beef exports from Ireland. Now operating in close association with Larry Goodman’s ABP Foods, this announcement clears the way for Slaney Foods to begin exporting to a country which consumes one quarter of the world’s entire meat supply, with a potential to earn the company millions of euro going forwards.
Back in February, ABP secured the first contract to supply Irish beef to China, putting pen to paper on a €50million deal to supply restaurant chain Wowprime, a deal which would extend to the Slaney Foods plant at Clohamon. Although the contract was secured back in February, it was very much dependent on the opening up of the huge Asian market and yesterday Minister for Agriculture, Food and the Marine Michael Creed confirmed that the deal was done. Slaney Foods is now one of three factories in the country to have been fully approved and which can begin exporting immediately. Also ready to go are the ABP Plant in Clones, Co Monaghan and Donegal Meat Processors.
‘ABP is involved in our business as a shareholder, and they’ve been doing huge work in getting markets in China ready to go,’ said Rory Fanning, Managing Director of Slaney Foods. ‘I know the Minister made the announcement today (Monday), but there is a little more technical work to be done, but I would expect that everything will be ready to go within the next few weeks and we can start.’
With the industry facing major challenges with the onset of Brexit, the opening up of a huge new market is a major coup for Slaney Foods.
‘We export over 90% of what we produce,’ Mr Fanning said. ‘What you need in that case is lots of alternative markets around the world. The UK is the most important market we have and we hope that, despite Brexit, it will remain so. However, given that situation, it is more important than ever to have access to other markets and we have a fantastic product to provide them with.
China banned beef from the EU and US during the BSE crisis in 2000. While that ban was officially lifted three years ago, trade had still not resumed. Minister Creed yesterday said, after years of hard work, this would now change.
‘It has taken a huge effort by Team Ireland; Ministers, Departmental and agency officials over several years to get beef market access to China over the line, and I want to thank each and everyone who has made a contribution to this effort,’ he said. ‘There have been a number of high profile visits to Ireland in recent years, including those by Chinese President Xi Jinping and Premier Li Keqiang, which played a crucial role. I would also like to particularly thank the Chinese Ambassador to Ireland Yue Xiaoyong and all of our Chinese partners for their ongoing cooperation.’
Similarly, Mr Fanning says that the development is a major vote of confidence in Ireland and Wexford and was a great team effort.
‘This is a huge vote of confidence,’ he said ‘The Department of Agriculture has worked very hard on this, as have our own people and the farmers who have welcomed visitors as part of this process. I think they have great confidence in Wexford. If you look at Danone, Wexford already supplies baby milk powder in massive volumes to China. They already have great faith in us as a reliable producer of quality food products.’
Minister Paul Kehoe also welcomed the announcement saying that it would have a wonderful knock on effect right across the county and country.
‘I want to congratulate Slaney Foods International which is a large employer in County Wexford,’ he said. ‘The opening of this new market will present an excellent opportunity for this sector, from farmers through to processors. Opening and developing new markets is a vital part of the response required to the uncertainties arising from Brexit. I firmly believe that our beef industry can and will compete effectively in the Chinese market and I look forward to the opportunities that this access will bring to both Slaney Foods International and all in the sector in Wexford and beyond.’
In terms of job creation at the Clohamon plant, Mr Fanning says that while there are no plans to increase the workforce at the present time, this development does bode extremely well for the future and while he says its hard to put a figure on just how much the Chinese market is worth to the company, he is looking forward to seeing China develop as a market for their products.
IT IS MORE IMPORTANT THAN EVER TO HAVE ACCESS TO OTHER MARKETS AND WE HAVE A FANTASTIC PRODUCT