As the world's second-largest exporter of agricultural products, the Netherlands is setting its sights on the Chinese market. To help more Dutch food and agriculture companies sell their products to Chinese consumers, an organization called the Holland Center has been created in Shanghai by the agricultural and food company CHIC Group Global Co Ltd.

At the center's launching ceremony on October 27, Edward Zhu, the director of the Holland Center and CEO of CHIC Group, said that China is facing a lot of difficulties in its agriculture industry. "During the next decade, some 385 million Chinese people will leave rural areas for cities, and fewer people will be engaged in agriculture jobs," he said, adding that concerns about food safety may remain in this country for years.

"Therefore, with the fast-growing purchasing power of Chinese customers, an increasing number of people are willing to spend more money on imported agricultural products with better quality," he said.

Last year, the Netherlands exported 2 billion euros ($2.55 billion) worth of food and agricultural products to China. "China is facing an enormous increase in the demand for food, particularly for high-quality proteins such as vegetables, dairy and meat," said Lilianne Ploumen, the Dutch Minister for Foreign Trade and Development Cooperation. "The Netherlands is particularly strong in these sectors, which makes it one of the most productive and innovative countries in the world."

In March, President Xi Jinping visited the Netherlands and asked to strengthen agricultural cooperation between China and the Netherlands. The Chinese market is becoming a land of golden opportunity for Dutch food and agriculture companies, and the Holland Center was built as a platform to support and facilitate them to start or speed up their business in China.

The center promises to offer its members a series of services including developing a strategy to enter the Chinese market, investigating Chinese customers and establishing an e-commerce platform bridging members' products with targeted Chinese consumers. The annual membership fee is 12,000 euros.

So far, nine Dutch food and agricultural companies have become members, such as Royal FrieslandCampina, one of the world's five largest dairy companies, and Refresco Gerber, a leading European bottler of soft drinks and fruit juices.

Several of these companies have started doing business in China, but some have not yet gained access to the Chinese market. At the ceremony, Zhu said that the center will do its best to help its members in the process of obtaining market access.

"China is paying more attention to the quality of imported products, especially food and agricultural products, because recent food safety scandals of the global fast-food chain operator Yum! Brands Inc and food supplier OSI Group have hurt the image of foreign food enterprises in this country," Zhu said, suggesting that to run a successful business in China, Dutch companies must have a strict quality control system and will need to gain the trust of Chinese customers.

Lilianne Ploumen, the Dutch Minister for Foreign Trade and Development Cooperation, speaks at the launching ceremony for the Holland Center.

 

Guests unveil a plaque for the center. Photos: Courtesy of Holland Center