Chinese Firm to Enter Organic Beef Market

Published By : 13 Jul 2015 | Published By : QYRESEARCH

The demand for organic food in domestic market of China and in several international markets have led to many large companies increase their product range to offer organic foods. Also, several new entrants in the market that specialize in organic produce are increasingly fueling the competition in the organic foods market. One such company from China is by the industrialist Lu Xing that is targeting the organic beef market.

The firm produces certified organic beef which is made using the local breeds. This company’s owner Lu Xing currently breeds the domestic Yellow and Luxi cattle on feed lots which are present in the easterly province of the region Shandong. According to the industrialist, the company makes around US$20,800 in terms of retail sales of the carcasses, which is approximately six times higher each beast when compared to the non-organic cattle variety. This range is produced by a subsidiary which belongs to the Jin Ming Group. Furthermore, a major range of cuts and products are the prime factor to the profitability of the brand of beef products called Ao Shi Da.

To secure an organic certification for any animal products is a tedious task in China highlighted by the absence of land to produce genuine organic feedstuffs. However, according to Lu, they are 100 per cent organic right from feed to processing. He also said that the he studied extensively how the U.S. beef processors feature a higher range of products and cuts. The tour undertaken by Lu a decade ago of the U.S. cattle lots convinced him the potential for efficiently managed beef farms in China.

The boom of online retail channels such as Yihaodian and JD has allowed brands such as Ao Shi Da to skip the supermarkets and focus on the middle class consumers. Furthermore, the entry of this organic beef products by Lu shows that there is high demand for meat in China. The brand Ao Shi Da has global ambitions, and at present ships mostly to 10 Asian countries.
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