A contingent of Abbotsford’s most successful agri-businesses, headed by Mayor George Peary, is embarking on a trade mission to China.

Around 21 representatives from 15 companies, the mayor and two staff from the city’s economic development office are taking a nine-day tour of Beijing and Shanghai from May 10 to 19.

“It has the potential to be a very exciting initiative,” said Peary, adding China is one of the fastest growing economies in the world.

The cost of sending the mayor and two city employees is being covered by $16,000 of provincial funding through the Asia-Pacific Initiative to grow international business and trade within municipalities.

However, around $30,000 from the city’s economic development budget will be going towards co-ordination and industry, and networking cost and presentation materials.

Ken Baerg, the city’s economic development director who is going on the trip, said the potential of the expanding Chinese market is great.

The country is the province’s second largest trade partner and fastest growing export market. The relationship garners about $12 billion annually, he said.

Recent forecasts indicate the Chinese economy, which expanded more than 10 per cent in 2010, will show similar growth in 2011.

“You ignore an economic force like that at your own peril,” said Baerg.

“We want to create opportunities for Abbotsford businesses and organizations to take part in that growth.”

Focusing the trade mission around the agriculture industry plays to Abbotsford’s strengths, he said.

“It’s prudent to play up our assets and the agricultural sector is a significant one for us,” said Baerg.

“Food security is a significant issue for the Chinese, and we’re part of the gateway to the Asia Pacific.”

Organizations and companies sending representatives on the tour include Tourism Abbotsford, Abbotsford International Airport, Abbotsford Chamber of Commerce, Rossdown Farms and Natural Foods, the UFV agricultural studies department, Farm Fed poultry processors, Thiessen Group of Companies, The Nutriva Group, Mt. Lehman Wineries, and Artex Barn Solutions.

Much of the tour will be to expose the businesses to understanding the food and supply chain in region, said Baerg.

“The delegates going on the tour are wide-open to what the possibilities are,” he said.

“We’d like to get local products to the Chinese market but there are a whole host of other considerations as well including the sale of technological processes and industry best practices, joint ventures with Chinese counterparts and the establishment of production factories for world wide export.”

One of the businesses on the tour, Artex Barn Solutions, has already achieved significant gains by setting up a production facility in China.

Artex president John De Jonge, who is also a partner in the Bakerview Ecodairy, is helping organize the tour based on his experience and knowledge of the Chinese market after establishing itself there to manufacture it’s barn equipment more competitively in 2006.

“From that time we have built over 40 dairy farms in China and done around $20 million in business,” said De Jonge.

“Today, 50 per cent of our business is done in China, with the remainder happening globally.”

After establishing the factory, De Jonge decided to investigate the Chinese Dairy Industry and Artex set up a display at a Chinese trade show in 2007.

“Chinese dairy farmers hoarded our booth. We found Canadian companies are very well accepted in China and dairy farms are looked at with high regard,” he said.

Emerging markets such as China, India and Vietnam have traditionally used small amounts of milk protein to feed their populations, but that’s shifting with those countries increasing affluence.

Chinese consumers are increasingly wealthy and looking for high-end, quality food products as well, he said.

“The demand for dairy and value-added food products is increasing at a huge rate. There are huge opportunities to get involved with helping these nations design modern and efficient dairy farms and that includes animal nutrition, growing quality feed, and modern farm management practices.”