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AU: All bets on Chinese pre-cut carrot market

Queensland's largest carrot producer is betting a gamble into the pre-cut trade will pay dividends in new Asian markets, particularly in China.

Kalfresh, based in south-east Queensland's Fassifern Valley, has made what managing director Richard Gorman described a "risky" move, into the pre-packaged sector. The company has about 1,500 acres under crops, including carrots, onions, green beans, and pumpkins.

After launching the company's pre-cut carrot range into local retailers, Mr Gorman said the long-term goal is to crack the lucrative Chinese market.

"It is definitely about tapping into new markets," he explained. "We already participate in exporting into Singapore, Hong Kong and different countries around the world. However, we wanted to come up with a range of products that got through what we call non-tariff barriers to allow us to trade into China."

Mr Gorman said a lack of biosecurity and health protocols is hampering efforts to open up trade access to Asia's burgeoning middle-class.

"Just because you have an FTA doesn't mean agricultural trade opens up. A lot of the business that can be done, isn't being done ... that's just a cold hard fact. Once you size reduce something, the process of exporting it into China becomes a lot easier ... well, hopefully it becomes a lot easier. We're about to test that theory."

Source: abc.net.au

Publication date: 9/16/2015


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