Food & Agribusiness Talking Points | 10/11/2017

In today’s talking points: China’s inflation higher than expected with food prices to blame; Thirty years of KFC in China; Australian beef producer promoting AFL in China

 

China’s inflation higher than expected with food prices to blame

China’s consumer inflation hit a nine-month high in October. China’s official consumer price index, published by the National Bureau of Statistics, rose 1.9 per cent in October, up from 1.6 per cent in September higher than the median forecast of 1.8 per cent from economists polled by Reuters. Food prices, which have been declining since February, have been the main factor influencing the CPI. The drop in the food component of the CPI narrowed significantly in October, slipping by just 0.4% year-on-year after a 1.4% decrease in the previous month. The NBS said food, liquor and tobacco prices combined contributed almost 0.1 percentage point to the CPI reading in October.

Read more at: Financial Times

 

Thirty years of KFC in China

As that restaurant and the chain celebrate their 30th anniversary in China this Sunday, KFC faces a future peppered with an entire new set of challenges. No longer are matters like finding qualified employees or suitable food suppliers issues, attesting to the huge changes that have taken place in China over the last three decades. Instead, the company faces an uncertain future due to growing competition from homegrown rivals, as well as changing consumer tastes that are swinging towards more upscale, nutritious options. Thanks in no small part to its early entry to the market, including its status as the first Western chain on the Chinese mainland, KFC has grown to become the country’s largest fast-food operator. While it underwent a period of decline, KFC recently returned to sales growth. But the road ahead could still be challenging in China’s massive restaurant market of today, where fast-food accounts for about one-third of the 3 trillion yuan in annual sales.

Read more at: Caixin

 

Australian beef producer promoting AFL in China

The junior Chinese owner of Australian beef producer S. Kidman and Co. Ltd., Shanghai CRED, is helping to promote Aussie Rules in China. In May next year, Port Adelaide, who is backed by Shanghai CRED, will play the Gold coast Suns at Shanghai’s Jiangwan Stadium, which will be renamed Adelaide Arena for the game. Over the next ten years the Australian Football League (AFL) plans to hold premiership matches in China.

Read more at: Queensland Country Life