COFCO Imported Foods Co. has become the exclusive distributor of Lerøy Seafood Group’s frozen salmon fillets in China, according to an executive close to the deal.
COFCO, a state-owned conglomerate that is one of China’s leading agricultural food processors, has a huge footprint across the country and sourcing offices around the globe, making it well-placed to extend Leroy’s advance in China, the executive told SeafoodSource on condition of anonymity. COFCO Imported Foods, the subsidiary of the Chinese conglomerate, signed the deal last month.
“Leroy is a leading and reputable seafood company. We visited Leroy's headquarters twice. We think two companies have very similar core values [based on] the firm foundation of long-term partnership and sustainable development,” the executive said. “Leroy salmon fillets are of high quality and [Leroy has] whole chain traceability, stable supply, and has been a well-known brand in the China market for a long time.”
The executive also touted the benefits to Chinese consumers, who will now have better access to premium Norwegian salmon, and the environmental benefits of the deal.
“In particular, chilled salmon fillet can reduce carbon emissions dramatically, since fish heads and bones do not need to be air-freighted and can be processed to fish oil and pet food inputs in Norway,” the executive said.
Lerøy’s Beijing office head, Gu Yu, told Chinese publication Seafood Guide there could be further cooperation between the two parties.
“W we have been cooperating in different projects for many years. Both parties are willing to cooperate further,” Gu said. “The original salmon fillet product is very mature in Japan, and we want to introduce this product to the country. It happens that COFCO has a very strong catering sales network advantage, covering many catering channels."
Due to weaker demand and stricter customs controls, Norwegian salmon imports fell last year to 17,022 metric tons (MT) from 23,000 MT in 2019 – a year in which Norwegian salmon shipments to China doubled.
Overall, China’s GDP contracted by 2.3 percent in the first quarter of 2020, when the country went into lockdown to contain the spread of COVID-19. But restaurants are now open across China, and some economists are predicting growth could be as high as 20 percent in the country in 2021.
However, economists have also expressed concern that consumer spending remains the weaker component next to investment in construction, and lending channels are now being reined in by the central government, which is keen to limit the country’s debt-load.
Photo courtesy of COFCO Imported Foods Co.
