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Food Trade with Canada to Triple

Canada is expected to triple its exports of food and farm products to China within five years as domestic demand rises and Canada hopes to ship more processed goods abroad to change its image as a major exporter of bulk food products.

Canadian exports of agricultural products to China are expected to reach 3 billion Canadian dollars (US$2.22 billion) in 2008 from 1 billion Canadian dollars last year, Deng Huada, a Canadian consulate official in Shanghai, said yesterday.

Deng made the remarks at the city's opening ceremony of the Canadian Gourmet Festival, which will run through Sunday at Shanghai Hongqiao Friendship Shopping Center. More than 400 varieties of Canadian food will be available to consumers.

Robert mackenzie, consul general of Canada, said that Canadian food exports to China are expected to grow fast in the coming years thanks to the rising local demand and lower tariffs following China's entry into the World Trade Organization. Currently, North America is the primary food market for Canadian products.

"For the Chinese market, we have some special food products catering to Chinese tastes and processed oil for local food manufacturers," Mackenzie said.

He added that the volume of Canadian farm goods and food exports are currently limited - only 25 local firms handle Sino-Canadian food trade.

To change the status of its image as a major farm resource goods exporter, Canadian merchants have agreed to export more deep-processed food products instead of bulk farm goods such as wheat or rice. It plans to sell more biscuits and canned fish to the Chinese market.

Currently, only 10 percent of Canadian foods sold to China are processed products while the country's global food exports of processed products total 40 percent of all its food sales abroad.

"We bank on selling more profitable and processed foods to China, instead of selling more primary goods, to push up our farm and food product exports here," said Deng.

Business insiders said that Canadian food products are getting more popular among Chinese people.

(eastday.com September 29, 2003)

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