China is expanding its presence as a producer of high-end foods such as caviar, foie gras, macadamias, and cherries. It has gone a step beyond substituting imports with domestic products in its home market and is actively pushing into overseas markets. Delicacies once sought only by a small wealthy class have become more widely consumed as domestic production expanded, increasing supply and lowering prices, analysts said. In addition, with support from local governments and policies to shift farms to new crops, factories for premium foods are spreading across China's agricultural regions.

Christmas ornaments shaped like caviar boxes are on display at the Christmas House store of Johann Wanner, the world's largest handmade Christmas ornament maker. The photo is not directly related to the article. /Courtesy of Reuters-Yonhap

On the 23rd, the Financial Times (FT) of the United Kingdom reported that caviar has emerged as the representative item symbolizing this shift. Kaluga Queen, a caviar brand developed by experts at China's Ministry of Agriculture, has risen to become the world's largest supplier, producing 260 tons last year and accounting for 35% of global output. China's caviar exports have also grown rapidly, with exports that were about $12 million (about 16 billion won) in 2012 reaching $98 million (about 132.3 billion won) in 2024, and its share of global exports in the 40% range, according to statistics. Some analysts said that trade disruptions with Russia due to the fallout from the Russia-Ukraine war created an opening that aligned with the expansion of Chinese supply.

China's boom in premium foods started with domestic growth, but during a period of domestic slowdown it instead supported exports. With the property slump reducing disposable income and President Xi Jinping's anti-corruption drive tightening curbs on officials' banquets, consumption of high-end foods has been pressured, observers said. As demand linked to government consumption weakened, producers diverted volume overseas, boosting exports, according to subsequent analyses. Ian Rahiff, a China agriculture consultant, said, "After the Chinese government restricted banquets in the name of eradicating corruption, inventory burdens grew, and producers suddenly turned their eyes to overseas sales."

Foie gras showed a similar trend. A farmer in Huoqiu County, Anhui province, who produces about 100 tons of foie gras a year, said, "In the past, even consumers who could afford foie gras didn't know Chinese products existed, but now recognition has grown and domestic consumption has increased." Some producers reportedly centered on domestic sales while broadening channels by exporting 100-gram canned products to the Middle East. There is also an assessment that Chinese producers secured competitiveness by lowering prices through a low cost structure, relatively loose animal welfare standards, fast production cycles, and supply chain advantages.

A piece of foie gras. The photo is not directly related to the article. /Courtesy of AFP-Yonhap

A "China-style expansion" was also seen in macadamias and cherries. Around Mangshi in Yunnan province, macadamia cultivation surged as local governments since the 1990s encouraged farms to shift to higher value-added crops by providing subsidies, fertilizer, irrigation, and education. From 2016 to last year, Yunnan's share of global production rose from 3% to 20%, and in 2023 China overtook Australia to become the world's No. 2 producer. However, under a food security stance, fertile plains were given priority for staple crops such as rice and corn, pushing macadamia farms into hilly areas.

Cherries are a case where China's rise as the world's largest cherry consumer also drove domestic production. Shandong province steered apple growers to switch to cherries, propelling it to become China's largest cherry-producing region. In Midu County, Yunnan, which has a temperate climate, authorities even moved cherry trees into industrial refrigeration facilities to force growing conditions that account for the fact that cherries fruit well in cold winter weather, while using wind power to lower operating costs. As a result, there was criticism locally that "they are growing them where they shouldn't be grown," but some said an expansion model emerged that combines central and local infrastructure investment with private-sector experimentation.

This trend shows that China's premium food industry is no longer confined to import substitution at home but is evolving into an export industry targeting global markets. With government-led variety development and infrastructure investment, a massive domestic market, and price competitiveness, a structure has taken shape that threatens the position of traditional powerhouses in high-end foods.

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