Murray River Organics (MRG) has announced “the strengthening of its China export strategy”, following a new partnership deal expected to be worth more than $6.5 million in sales over the next three years.
As part of the Taking Sunraysia to Asia program, MRG has been executing a growth campaign of its organic dried vine fruit in the Chinese market, developing a strategic partnership with an existing customer in the Chinese food industry, with deliveries commencing this month.
“We have been executing a targeted growth plan that focuses on value-added and branded sales growth in premium and organic dried foods,” said MRG CEO Valentina Tripp.
“This partnership is an important milestone in further expanding our footprint into China and in executing our broader export strategy.”
The Australian Organic Market Report 2019 highlights that in 2017, China's total market size for organic food and beverages accounted for 7 per cent of global category sales (US$2,839.2 million) and was ranked the fourth largest market in the world by value. It is expected to have a total annual growth rate of 14.3 per cent by 2022.
Further research by Innova Market Insights shows an overall annual growth of 11 percent for the introduction of food with organic seals worldwide (2014-2018). The percentage of new products that fall under the organic segment grew from 8.8 percent of the new introductions in 2014 up to 10.5 percent in 2018.
MRG management says there are further discussions with a range of customers underway to extend a broader offering of MRG products into China.