Published By : 09 Sep 2015 | Published By : QYRESEARCH
Australia invested US$70 mn to build an agricultural park in Adelaide to supply food and wine to Chinese shops following an agreement between Chinese and South Australian governments.
According to reports, the industrial food park to be built in the northern Adelaide will produce food and wine for hundreds of containers to be exported to China’s Shandong province.
The emerging and rapidly growing middle class in China has an insatiable appetite for good-quality food and wine. The increasing demand for high-quality food products in China provides lucrative prospects for the foreign players in the food industry. However, logistics barrier and high tariff restrains the opportunities for export growth.
The deal to construct the part was finalized and signed during a formal dinner organized in Adelaide on Tuesday night. The dinner was attended by Premier Jay Weatherill and the secretary of Shandong’s Communist Party, Jiang Yikang.
The agreement was finalized between Shandong Fusheng Food Co Limited, Zibo Shoushan Enterprise (also based in Shandong), Australia Original Ecology Pty Ltd, and Armstrong Wines Trading Pty Ltd.
A team of 150 strong delegates from Shandong are visiting SA this week to attend a trade delegation.
The government in Australia said that the construction of the agricultural park is an addition to the previously mooted plan of building an Industrial Food Park in northern Adelaide.
The State Government released a statement earlier today saying that the construction of a US$200 mn worth retail center has already begun in the city of Zibo by SA-Shandong consortium. The retail center will have SA food and wine.
Developer of the project William Li said that a complete floor will be dedicated to SA products.
In a recent interview Li said that his relation with South Australia began in a trade mission to China organized by the State Government in 2013. He met Tony Royal during this delegation and after which the decision to start importing premium wine from Portavin was taken.