Kerryfirmseye Asianfoothold
WITH uncertainty over the impact Brexit and Donald Trump’s trade wars prompting fears among most major companies many are turning their attention to Asia where the massive population and a safer market is proving increasingly attractive.
IRISH farmers and food processors stand to be among the main winners from last weeks agreement signed between the EU and Japan to scrap tariffs on much of their bilateral trade which is expected to come into effect next year. THE Economic Partnership Agreement between Europe and Japan remains subject to ratification by the European Parliament and the Japanese Diet following which it could enter into force as early as 2019.
The Japanese trade deal could reap massive rewards for Irish businesses but several major Kerry firms have already been busy expanding their Asian interests for several years.
Predictably, the most significant is Kerry Group whose Asian presence has been growing steadily over the course of the last decade.
Earlier this year Kerry Group opened a new regional technology and innovation centre in Bangalore, India with linked regional development centres in Indonesia, Thailand and Vietnam.
Meanwhile a infant formula milk product sold exclusively in the Chinese and aimed primarily at the lucrative Chinese middle class market has proved a phenomenally successful move for the Tralee based multinational.
Given the importance of Asian markets it is probably no coincidence that the Groups new CEO Edmond Scanlon was previously Kerry’s Asia Pacific Chief Executive and since taking up the post in January he has said the group is eyeing up several potential acquisitions in the region.
Of course its not just Kerry Group who expanding across Asia. Dairymaster has just completed a major deal to sell it milking devices to Chinese mega farms while Fexco has been rolling out its dynamic currency exchange service across Asia.