China links provide incentive to NI firms

BELFAST BRIEFING: BOILIE IRISH goats’ cheese and creamy Tyrone cheddar may not be what you might expect to find on the shelves…

BELFAST BRIEFING:BOILIE IRISH goats' cheese and creamy Tyrone cheddar may not be what you might expect to find on the shelves of your average Asian supermarket, but Fivemiletown Creamery is hoping the Chinese discover a taste for it and more following the winning of a major new contract with the Dairy Group, headquartered in Hong Kong.

It is quite a coup for a co-op owned by a Tyrone farmer to have its cheese listed by a leading pan-Asian retailer, particularly one that owns some of the region’s largest supermarkets.

But it is not the only organisation in Northern Ireland vying for a slice of potentially lucrative business in China. For Northern Ireland companies it is fast becoming the year of opportunity.

The visit last week by one of China’s most senior government ministers to the North underlines just how fast the relationship between Northern Ireland and China is developing.

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The visit of China state councillor Liu Yandong – during which she attended the launch of the Confucius Institute at the University of Ulster – ahead of this week’s UK-China summit in London demonstrated her country’s “commitment” to Northern Ireland.

Details of a new partnership between Queen’s University and the China Medical University in Shenyang were also unveiled during her brief stop-off. The partnership will bring 1,000 Chinese students to Belfast to study for degrees in pharmaceutical science.

According to Queen’s president and vice-chancellor Prof Peter Gregson, the partnership and new collaborative agreements with other Chinese universities will help his university build on existing links.

These include a £2.3 million (€2.8 million) science bridge project, which has resulted in Queen’s technologies being used in the construction of the “Bird’s Nest” Olympic stadium, Hangzhou Bay sea-crossing bridge, and thermal power plants and power systems across China.

Queen’s may be successfully exporting intellectual knowledge and technology to China, but latest figures show local firms are also enjoying the rewards of seeking out new markets in the region. Manufacturing and export sales from the North to China and Hong Hong grew to more than £115 million in 2010-2011.

The increase in trade has seen long-established exporters such as FG Wilson and United Diary Farmers (UDF), the largest local diary co-op, cement their position in the region.

UDF has developed new markets for its Dale Farm business by exporting hundreds of tonnes of specialised whey protein powders – used in the manufacture of dairy food products – to customers in China.

FG Wilson, meanwhile, not only continues to be the largest exporter to China but continues to invest in its significant production facilities, such as FG Wilson Shantou, in the region.

Like other major exporters to China – such as Randox Laboratories, Andor Technology and BE Aerospace – the opportunity to expand their customer base in a rapidly emerging market is not without certain challenges.

Esmond Birnie, chief economist with PricewaterhouseCoopers, says China offers “significant growth opportunities” for Northern Ireland companies.

He said the visit by Madame Liu and a planned return trade mission to China by the First and Deputy First Ministers would help further develop trade relationships.

But, he warns, if Northern Ireland is to capitalise on the opportunities, it needs to look at some basic issues, and the first of these is air routes to the Far East. Easier access could mean all the difference.

The partnership will bring 1,000 Chinese students to Belfast to study pharmaceutical science

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business