HKScan to launch Omega-3 Pork in China through joint venture

By Aidan Fortune contact

- Last updated on GMT

HKScan to launch Omega-3 Pork in China through joint venture

Related tags: Value added

HKScan has announced the launch of premium-category 100% Finnish pork products to the Chinese market.

Operated through a joint venture with Zhejiang Qinglian Food, these new branded products, Finnish Rypsiporsas (Omega-3 Pork), are designed to commercialise Finnish food in the region.

HKScan signed the agreement earlier this month and said it planned to establish a new footprint on the Chinese market with premium-category, value-added products such as sirloin and tenderloin – products the company has previously offered largely only in the Nordic region.

HKScan is the first Finnish company to establish a presence in a premium market niche in China.

Exports are scheduled to commence during the first half of the year 2018. The launch of exports to China marks a significant new inroad both for HKScan and Finnish primary production. HKScan’s targeted sales volume in China is roughly three million kilograms of pork within the first year, with plans to triple that volume by 2020. Relative to current pork production volumes, this would mean that at least 5% of Finnish-grown pigs would end up on Chinese dining tables through HKScan’s export chain.

“This joint venture opens up a completely new, one-of-a-kind market for Finnish pork,”​ said Jari Latvanen, CEO of HKScan. ​By commercialising and offering products in the premium category, we are taking the world-class expertise of Finnish pork producers to a whole new level of added value. This creates new revenue opportunities throughout our entire production chain and builds confidence in the international competitiveness of Finnish food production. Competition is fierce all around the world, and China is no exception – only the most competitive products make the cut. Our key competitive advantage is our diligent control of the entire value chain from farm to fork, which has convinced our Chinese partners of our reliability.

Latvanen explained the joint venture with Zhejiang Qinglian Food.

“We were looking for a partner whose corporate values and business logic are well-aligned with HKScan’s values and strategic aims. Qinglian Food embraces the principles of responsibility and transparency throughout the food chain, which is fully in line with the core of our From Farm to Fork strategy. Qinglian Food has an impressive track record of successfully developing new brands and concepts, which was a key condition for our collaboration. In addition, Qinglian Food’s in-depth knowledge of the Chinese market offers significant potential for the future advancement of HKScan’s exports,”​ said Latvanen.

At the end of last year, HKScan announced that it had gained approval from the Chinese food authorities to launch exports from Finland to China. The launch of exports has been strongly supported by Chinese and Finnish authorities, decision-makers and cooperation parties.

Related topics: Retail, Pork, Others, China

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