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Ekosem-Agrar concludes new contracts for the export of dairy products to China
Walldorf, 4 May 2021 – Ekosem-Agrar Group is expanding the export of its dairy products to neighboring China. Since the beginning of 2021, three containers with a total of around 70 tons of EkoNiva UHT milk have been shipped, which already corresponds to the total volume exported to China during the whole of the previous year. After the first deliveries attracted a high level of interest among Chinese consumers, more extensive contracts have now been concluded with Chinese wholesalers.
The first orders for UHT milk in the 3.2% and 3.5% fat grades that have now been confirmed comprise 13 containers with a total of approx. 295 tons, which are to be shipped to the ports of Dalian, Shanghai, Tianjin and Nansha by mid-May. The Ekosem-Agrar Group is thus expanding the presence of its products to the entire east coast of China. The first shipment of EkoNiva dairy products, which took place in August 2020, only reached several cities in northeast China.
The Chinese customers are both retail companies and customers from the food service industry. The conclusion of further contracts and the placement of additional orders are expected in the coming months.
While the Russian population currently comprises around 147 million people, China is home to around 1.4 billion people with continuously increasing purchasing power. At the same time, the natural resources for the production of agricultural commodities in China are comparatively small. While the ratio of agricultural land to population (in hectares per inhabitant) in Russia amounts to 0.85, China only has a ratio of 0.09. In addition, although the annual per capita consumption of milk in China has risen from 18 kg in 2007 to over 36 kg in 2018, this still only corresponds to one third of the global average and is thus also far from the nutritional recommendation of the Chinese authorities (109 kg of dairy products per year).
Stefan Dürr, Chairman of the Management Board of Ekosem-Agrar AG: We see a highly attractive, unsaturated sales market in a favorable location in our neighboring country of China and are very pleased that our EkoNiva dairy products are meeting with high demand there. For the near future, we expect to be able to increase our monthly deliveries to up to 50 containers with a total volume of more than 1,000 tons."
At present, EkoNiva UHT milk is still delivered exclusively by sea, as this is, among other factors, more cost-effective than the overland route. However, in order to be able to supply fresh dairy products to China in the future, preparations are currently being made to include rail freight transport, which would significantly reduce delivery times.
Further details on the operating performance in the fiscal year 2021 as well as the Annual Report 2020 will be published on 30 June 2021.
Walldorf, 4 May 2021 – Ekosem-Agrar Group is expanding the export of its dairy products to neighboring China. Since the beginning of 2021, three containers with a total of around 70 tons of EkoNiva UHT milk have been shipped, which already corresponds to the total volume exported to China during the whole of the previous year. After the first deliveries attracted a high level of interest among Chinese consumers, more extensive contracts have now been concluded with Chinese wholesalers.
The first orders for UHT milk in the 3.2% and 3.5% fat grades that have now been confirmed comprise 13 containers with a total of approx. 295 tons, which are to be shipped to the ports of Dalian, Shanghai, Tianjin and Nansha by mid-May. The Ekosem-Agrar Group is thus expanding the presence of its products to the entire east coast of China. The first shipment of EkoNiva dairy products, which took place in August 2020, only reached several cities in northeast China.
The Chinese customers are both retail companies and customers from the food service industry. The conclusion of further contracts and the placement of additional orders are expected in the coming months.
While the Russian population currently comprises around 147 million people, China is home to around 1.4 billion people with continuously increasing purchasing power. At the same time, the natural resources for the production of agricultural commodities in China are comparatively small. While the ratio of agricultural land to population (in hectares per inhabitant) in Russia amounts to 0.85, China only has a ratio of 0.09. In addition, although the annual per capita consumption of milk in China has risen from 18 kg in 2007 to over 36 kg in 2018, this still only corresponds to one third of the global average and is thus also far from the nutritional recommendation of the Chinese authorities (109 kg of dairy products per year).
Stefan Dürr, Chairman of the Management Board of Ekosem-Agrar AG: We see a highly attractive, unsaturated sales market in a favorable location in our neighboring country of China and are very pleased that our EkoNiva dairy products are meeting with high demand there. For the near future, we expect to be able to increase our monthly deliveries to up to 50 containers with a total volume of more than 1,000 tons."
At present, EkoNiva UHT milk is still delivered exclusively by sea, as this is, among other factors, more cost-effective than the overland route. However, in order to be able to supply fresh dairy products to China in the future, preparations are currently being made to include rail freight transport, which would significantly reduce delivery times.
Further details on the operating performance in the fiscal year 2021 as well as the Annual Report 2020 will be published on 30 June 2021.
