AUSTRALIAN farmers and agribusinesses need to make a mind switch if they want to capitalise on the China food boom.
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This is according Shanghai-based The Silk Initiative's managing director Andrew Kuiler, who said the industry needed to better understand market dynamics and Chinese consumers rapidly changing needs.
"China's growing middle-class population is seeing a rapid change in food purchasing habits," he said.
"In major first tier cities, there's literally been an overnight shift from buying food in traditional wet markets to looking for more branded, packaged/value-add quality products in neighbourhood stores.
"Chinese consumers are demanding quality, natural, safe and often organic foods and beverages, and they have deepening pockets to pay for them."
Mr Kuiler said the Australian industry needed to tailor products for Chinese consumer tastes.
"I've seen a lot of failures, where companies around the world have taken a product into China but have failed to adapt it to suit Chinese palates and before you know it the retailer has delisted their product," he said.
Originally from Ballarat in Central Victoria, and having spent the last 15 years in Shanghai and New York, Mr Kuiler will present his views at the new AgriVictoria State of Opportunity Summit in Melbourne on Thursday 11 June.
Mr Kuiler said China’s recent love of dairy products is one great example of needing to think of product formats for the dairy space that may not necessarily even exist in Australia.
“The Chinese diet has traditionally been low in calcium and protein,” he said.
“With the many recent food safety concerns, reliable protein has become a major issue and its availability is scarce, hence, consumers look to safe dairy products that can deliver their protein needs.
“The question for the Australian diary industry is, how do you get your product there in the form Chinese consumers want?”
And demand is huge.
“There are 300 million middle-class residents in China, and even if we were to reach 10 per cent of them that is still almost twice as many consumers as the entire Australian population,” Mr Kuiler said.
Chaired by Victorian Farmers Federation President Peter Tuohey, Mr Kuiler will speak during the summit's first session aimed at challenging Australia's readiness for capitalising on local and global opportunities.
