Competitive Trade Analysis Hong Kong

MARKET ACCESS SECRETARIAT Global Analysis Report Competitive Trade Analysis Hong Kong June 2015 REPORT CONTENT SUMMARY This report looks to highlight the major sectors in Hong Kong, and attempts to identify the best opportunities for Canadian exports. Specifically, the data analysis that follows focusses on the top ten Hong Kong imports by major aggregate sector, of which Canada is a supplier. It identifies the gap between Hong Kong s imports from the world and the portion provided by Canada, and then outlines top international competitors. In addition, the analysis examines re-exports of products originating from Canada and other parts of the world to further highlight domestic consumption opportunities within Hong Kong. Unless otherwise specified, all figures in this document are based on import data as reported by the Hong Kong Census and Statistics Department, sourced from Global Trade Atlas (2015). HONG KONG MARKET SUMMARY Hong Kong was the world s eighth-largest importer of agri-food and seafood products with a value of C$31.6 billion in 2014. It recorded a significant trade deficit of C$20.7 billion in the same year, with exports valued at C$10.9 billion. The top suppliers of agri-food and seafood products to Hong Kong include with 19.8% market share, the United States (15.17%) and Brazil (9.1%). Canada is the 10 th -largest supplier of agri-food and seafood products to Hong Kong. Canada s proportion of Hong Kong s agri-food and seafood product imports increased by 31.6% in 2014. CONTENTS Report Content Summary... 1 Hong Kong Market Summary... 1 Trade Overview... 2 Top Ten Agri-Food and Seafood Commodity Imports... 4 1. Meat and Edible Offal... 4 2. Edible Fruit and Nuts... 7 3. Fish and Crustaceans... 10 4. Beverages... 13 5. Dairy, Eggs and Honey... 16 6. Furskins and Artificial Fur... 19 7. Prepared Meat and Fish... 22 8. Miscellaneous Edible Preparations... 25 9. Tobacco... 28 10. Baking Related Goods... 31 Conclusion... 34 For More Information... 34 Resources... 34 Annex: Abbreviations... 34 Note: Please see the Annex at the end of this document for a list of abbreviations that will be used throughout this report. Visit our online library of public reports for more information on this and other markets.

TRADE OVERVIEW In 2014, Hong Kong was the eighth-largest importer of agri-food and seafood products in the world, and recorded a trade deficit of C$20.7 billion. Hong Kong imported C$31.6 billion and exported C$10.9 billion worth of agri-food and seafood products in the same year. The top commodities imported by Hong Kong are meat and edible offal (24.0% of total imports), edible fruit and nuts (13.7%), and fish and crustaceans (11.2%). The leading supplying countries of overall agri-food and seafood product imports are, the United States, and Brazil. Canada is the 10 th -largest supplier of Hong Kong s agri-food and seafood imports; however, the value of Canadian imports decreased in 2014, after a significant increase in 2013. Hong Kong s Top Ten Suppliers of Agri-Food and Seafood Products, C$ Millions Country World 20,600.89 23,274.85 24,354.33 28,091.38 31,612.08 11.30 1 3,810.86 4,298.64 4,968.89 5,548.62 6,252.36 13.18 2 United States 3,173.21 3,631.27 3,660.42 4,408.52 4,765.30 10.70 3 Brazil 1,532.02 1,731.03 1,768.56 2,424.99 2,888.58 17.18 4 Netherlands 472.40 728.26 910.10 1,250.14 1,667.60 37.07 5 France 975.43 1,260.32 1,128.61 1,195.03 1,265.89 6.73 6 Japan 1,154.33 1,135.11 1,029.58 1,151.90 1,179.74 0.55 7 Thailand 834.28 862.03 876.32 935.35 1,144.01 8.21 8 Australia 785.62 874.88 911.23 948.30 1,128.44 9.48 9 Denmark 668.29 813.91 981.04 1,238.85 764.09 3.41 10 Canada 625.00 604.89 671.01 882.77 748.97 4.63 Hong Kong s Top Ten Suppliers of Agri-Food and Seafood Products, % Share Country PP Change 1 18.50 18.47 20.40 19.75 19.78 1.28 2 United States 15.40 15.60 15.03 15.69 15.07-0.33 3 Brazil 7.44 7.44 7.26 8.63 9.14 1.70 4 Netherlands 2.29 3.13 3.74 4.45 5.28 2.99 5 France 4.73 5.41 4.63 4.25 4.00-0.73 6 Japan 5.60 4.88 4.23 4.10 3.73-1.87 7 Thailand 4.05 3.70 3.60 3.33 3.62-0.43 8 Australia 3.81 3.76 3.74 3.38 3.57-0.24 9 Denmark 3.24 3.50 4.03 4.41 2.42-0.82 10 Canada 3.03 2.60 2.76 3.14 2.37-0.66 Page 2

Canada has a large supply gap with Hong Kong, despite being its 10 th -largest supplier of agri-food and seafood products. Hong Kong has a diverse supplier list for agri-food and seafood products, totaling 186 countries in 2014, but the top five players represented a combined 53.3% of the market, signalling a relatively concentrated supply environment. Agri-food and Seafood Products Supply Gap, 2014, C$ Millions Hong Kong s imports from the world 20,600.89 23,274.85 24,354.33 28,091.38 31,612.08 11.30 Hong Kong s imports from Canada 625.00 604.89 671.01 882.77 748.97 4.63 Supply gap 19,975.89 22,669.97 23,683.31 27,208.60 30,863.11 8.02 Meat and edible offal was Hong Kong s top-grossing commodity in 2014, with a value of just under C$7.6 billion or 24.0% of overall agri-food and seafood imports. However, over the 2010 to 2014 period, meat and edible offal was an average performer with a compound annual growth rate (CAGR) of 14.7%. In comparison, the slightly smaller categories of dairy, eggs and honey, prepared meat and fish, and baking related goods posted the strongest value sales growth with CAGRs of 18.4%, 18.3% and 15.0%, respectively, over the same period. Hong Kong s Top Ten Agri-Food and Seafood Commodity Imports from the World, C$ Millions Rank HS Commodity Total Agri-Food and Seafood Imports 20,600.89 23,274.85 24,354.33 28,091.38 31,612.08 11.30 1 02 Meat and edible offal 4,371.93 5,003.51 4,433.78 5,664.94 7,570.11 14.71 2 08 Edible fruit and nuts 2,568.68 2,876.45 3,474.02 3,793.58 4,324.20 13.91 3 03 Fish and crustaceans 2,830.45 3,007.76 3,120.98 3,338.04 3,539.92 5.75 4 22 Beverages 2,061.05 2,455.39 2,402.73 2,497.69 2,809.34 8.05 5 04 Dairy, eggs and honey 1,359.93 1,452.95 1,706.89 2,075.57 2,667.96 18.35 6 43 Furskins and artificial fur 2,266.93 2,417.95 2,818.54 3,517.11 2,262.01-0.05 7 16 Prepared meat and fish 923.36 1,354.23 1,378.88 1,676.35 1,808.84 18.31 8 21 Miscellaneous edible preparations 660.25 760.92 830.71 896.36 1,069.17 12.81 9 24 Tobacco 641.90 707.83 828.32 893.48 995.64 11.60 10 19 Baking related goods 563.46 620.72 711.22 859.77 983.68 14.95 Page 3

TOP TEN AGRI-FOOD AND SEAFOOD COMMODITY IMPORTS 1. MEAT AND EDIBLE OFFAL Hong Kong s Top Ten Suppliers of Meat and Edible Offal, C$ Millions Country World 4,371.93 5,003.51 4,433.78 5,664.94 7,570.11 14.71 Brazil 1,390.26 1,543.30 1,535.68 2,210.74 2,682.50 17.86 United States 990.97 1,152.27 853.38 1,154.74 1,926.07 18.07 551.32 566.44 532.00 557.40 650.62 4.23 Germany 228.64 310.33 253.87 237.57 337.75 10.25 Australia 148.34 184.53 163.60 215.70 299.58 19.21 Netherlands 144.04 204.12 187.14 224.22 218.65 11.00 Canada 194.85 160.69 127.12 177.92 209.93 1.88 Argentina 118.13 111.85 103.57 154.20 167.51 9.12 Poland 40.30 62.80 51.89 50.25 141.40 36.86 New Zealand 88.99 92.62 90.54 96.54 113.96 6.38 Hong Kong s Top Suppliers of Meat and Edible Offal, % Share Country PP Change Brazil 31.80 30.84 34.64 39.02 35.44 3.64 United States 22.67 23.03 19.25 20.38 25.44 2.77 12.61 11.32 12.00 9.84 8.59-4.02 Germany 5.23 6.20 5.73 4.19 4.46-0.77 Australia 3.39 3.69 3.69 3.81 3.96 0.57 Netherlands 3.29 4.08 4.22 3.96 2.89-0.40 Canada 4.46 3.21 2.87 3.14 2.77-1.69 Argentina 2.70 2.24 2.34 2.72 2.21-0.49 Poland 0.92 1.26 1.17 0.89 1.87 0.95 New Zealand 2.04 1.85 2.04 1.70 1.51-0.53 Page 4

In 2014, 27.1% of the total meat and edible offal imported by Hong Kong was re-exported to other countries. The top re-export destinations of meat and edible offal were Vietnam (53.6%), (18.2%) and Taiwan (15.4%). During the period, 6.1% of the total meat and edible offal imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian meat and edible offal grew by a CAGR of 21.9% over the same period. Meat and Edible Offal Supply Gap, C$ Millions Hong Kong s imports from the world 4,371.93 5,003.51 4,433.78 5,664.94 7,570.11 14.71 Hong Kong s imports from Canada 194.85 160.69 127.12 177.92 209.93 1.88 Supply gap 4,177.08 4,842.82 4,306.66 5,487.03 7,360.17 15.21 Meat and Edible Offal Re-Exports, C$ Millions Hong Kong s total re-exports 1,994.11 1,683.17 1,411.67 1,501.56 2,050.28 0.69 Hong Kong s re-exports from Canada 105.72 48.72 25.16 32.02 12.87-40.93 Meat and Edible Offal Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 2,377.82 3,320.34 3,022.11 4,163.38 5,519.83 23.43 89.13 111.97 101.95 145.89 197.07 21.94 Domestic consumption supply gap 2,288.69 3,208.38 2,920.15 4,017.49 5,322.77 23.49 Page 5

HS Hong Kong s Top Five Meat and Edible Offal Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 020230 Frozen boneless beef 641.03 1,310.45 1,866.05 70.62 020714 020649 Frozen chicken cuts and edible offal (including livers) Frozen edible pork offal, except livers 1,178.14 1,098.16 1,558.13 15.00 698.90 761.79 1,143.31 27.90 020629 Frozen edible beef offal 612.36 904.17 1,094.16 33.67 020329 Frozen pork 564.02 588.56 637.10 6.28 Hong Kong s Top Five Meat and Edible Offal Product Imports and Top Supplying Countries, 2014 HS Product Description 020230 Frozen boneless beef 020714 020649 Frozen chicken cuts and edible offal (including livers) Frozen edible pork offal, except livers 020629 Frozen edible beef offal 020329 Frozen pork Market Share % 1 2 3 Brazil 51.99 Brazil 38.51 United States 23.63 Brazil 64.78 Brazil 32.39 United States 36.14 United States 33.72 Germany 21.19 Argentina 10.31 29.93 Australia 3.36 8.15 Netherlands 10.91 Australia 7.35 Netherlands 8.50 Canada s % Share 2.8 0.85 2.94 1.28 1.71 Page 6

2. EDIBLE FRUIT AND NUTS Hong Kong s Top Ten Suppliers of Edible Fruit and Nuts, C$ Millions Country World 2,568.68 2,876.45 3,474.02 3,793.58 4,324.20 13.91 United States 1,161.54 1,375.83 1,670.45 1,943.63 1,549.37 7.47 Iran 369.26 207.60 266.78 240.51 566.66 11.30 Thailand 276.95 296.06 330.66 339.39 489.26 4.44 Chile 191.49 280.34 344.23 359.09 465.25 15.29 South Africa 119.52 160.10 199.01 172.38 303.99 26.29 Australia 82.42 83.75 120.98 168.81 222.12 28.13 62.81 80.43 110.83 121.23 123.98 18.53 Peru 31.17 45.40 50.85 52.47 113.26 38.07 Philippines 60.23 72.04 69.96 70.40 87.38 9.75 New Zealand 34.38 49.23 50.29 42.77 53.27 11.57 (18) Canada 5.41 12.39 22.65 16.72 18.77 36.48 Hong Kong s Top Ten Suppliers of Edible Fruit and Nuts, % Share Country PP Change United States 45.22 47.83 48.08 51.23 35.83-9.39 Iran 14.38 7.22 7.68 6.34 13.10-1.28 Thailand 10.78 10.29 9.52 8.95 11.31 0.53 Chile 7.45 9.75 9.91 9.47 10.76 3.31 South Africa 4.65 5.57 5.73 4.54 7.03 2.38 Australia 3.21 2.91 3.48 4.45 5.14 1.93 2.45 2.80 3.19 3.20 2.87 0.42 Peru 1.21 1.58 1.46 1.38 2.62 1.41 Philippines 2.34 2.50 2.01 1.86 2.02-0.32 New Zealand 1.34 1.71 1.45 1.13 1.23-0.11 (18) Canada 0.21 0.43 0.65 0.44 0.43 0.22 Page 7

In 2014, 47.3% of the total edible fruit and nuts imported into Hong Kong were re-exported to other countries. The top re-export destinations were (58.7%), Vietnam (29.7%) and Taiwan (4.0%). Over the period, 4.0% of the total edible fruit and nuts imported from Canada were re-exported to other countries. However, Hong Kong s domestic consumption of Canadian edible fruit and nuts grew by a CAGR of 35.2% over the same period. Edible Fruit and Nuts Supply Gap, C$ Millions Hong Kong s imports from the world 2,568.68 2,876.45 3,474.02 3,793.58 4,324.20 13.91 Hong Kong s imports from Canada 5.41 12.39 22.65 16.72 18.77 36.48 Supply gap 2,563.27 2,864.06 3,451.37 3,776.86 4,305.43 13.84 Edible Fruit and Nuts Re-Exports, C$ Millions Hong Kong s total re-exports 1,130.53 1,652.77 1,833.41 1,768.13 2,044.83 15.99 Hong Kong s re-exports from Canada 0.02 6.07 14.90 3.58 0.76 141.91 Edible Fruit and Nuts Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 1,438.15 1,223.68 1,640.61 2,025.45 2,279.37 12.20 5.39 6.32 7.75 13.14 18.01 35.20 Domestic consumption supply gap 1,432.76 1,217.36 1,632.86 2,012.31 2,261.36 12.09 Page 8

Hong Kong s Top Five Edible Fruit and Nut Product Imports, C$ Millions HS 080251 Product Description 2012 2013 2014 Fresh or dried pistachios, in-shell 632.47 842.55 889.30 080610 Fresh grapes 369.90 414.98 503.45 080929 Fresh cherries 248.24 202.91 375.21 081060 Fresh durians 148.92 173.95 303.67 080510 Fresh oranges 177.95 202.82 251.29 2012-14 18.58 16.66 22.94 42.80 18.83 Hong Kong s Top Five Edible Fruit and Nut Product Imports and Top Supplying Countries, 2014 HS 080251 Product Description Fresh or dried pistachios, in-shell 080610 Fresh grapes 080929 Fresh cherries 081060 Fresh durians 080510 Fresh oranges Market Share % Canada s % 1 2 3 Share Iran 62.46 United States 26.84 Chile 66.91 Thailand 98.71 United States 52.74 United States 36.79 Chile 26.56 United States 20.66 Malaysia 0.91 South Africa 19.23 0.37 Peru 19.93 Australia 4.88 Vietnam 0.22 Australia 11.92 0.14 0.02 2.91 N/A 0.87 Page 9

3. FISH AND CRUSTACEANS Hong Kong s Top Ten Suppliers of Fish and Crustaceans, C$ Millions Country World 2,830.45 3,007.76 3,120.98 3,338.04 3,539.92 5.75 365.69 434.59 662.84 962.95 1,059.24 30.46 Japan 540.74 544.31 446.71 491.27 465.94-3.65 Norway 133.23 119.79 124.41 166.25 191.68 9.52 United States 176.60 214.56 215.34 212.73 191.58 2.06 Vietnam 83.49 107.83 118.64 114.78 147.93 15.37 Canada 117.29 127.70 121.41 126.88 127.41 2.09 Indonesia 131.61 126.37 123.02 108.72 119.78-2.33 Australia 238.05 224.30 217.16 135.59 114.44-16.73 Philippines 76.90 82.02 87.96 85.84 108.02 8.87 India 72.10 69.67 85.02 93.03 100.43 8.64 Hong Kong s Top Ten Suppliers of Fish and Crustaceans, % Share Country PP Change 12.92 14.45 21.24 28.85 29.92 17.00 Japan 19.10 18.10 14.31 14.72 13.16-5.94 Norway 4.71 3.98 3.99 4.98 5.41 0.70 United States 6.24 7.13 6.90 6.37 5.41-0.83 Vietnam 2.95 3.59 3.80 3.44 4.18 1.23 Canada 4.14 4.25 3.89 3.80 3.60-0.54 Indonesia 4.65 4.20 3.94 3.26 3.38-1.27 Australia 8.41 7.46 6.96 4.06 3.23-5.18 Philippines 2.72 2.73 2.82 2.57 3.05 0.33 India 2.55 2.32 2.72 2.79 2.84 0.29 Page 10

In 2014, 26.7% of the fish and crustacean products imported by Hong Kong was re-exported to other countries, and 2.6% of the re-exports came from Canada. Hong Kong s top re-export destinations were Vietnam (51.1%), (13.3%) and Macau (10.3%). Over the period, 19.1% of the total fish and crustacean products imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian fish and crustaceans grew by a CAGR of 0.6% over the same period. Fish and Crustaceans Supply Gap, C$ Millions Hong Kong s imports from the world 2,830.45 3,007.76 3,120.98 3,338.04 3,539.92 5.75 Hong Kong s imports from Canada 117.29 127.70 121.41 126.88 127.41 2.09 Supply gap 2,713.16 2,880.06 2,999.58 3,211.16 3,412.51 5.90 Fish and Crustaceans Re-Exports, C$ Millions Hong Kong s total re-exports 414.17 474.70 691.46 932.18 945.71 22.93 Hong Kong s re-exports from Canada 16.50 20.26 23.19 31.79 24.27 10.13 Fish and Crustaceans Domestic Consumption Supply Gap, C$ Millions consumed imports from the World consumed imports from Canada 2,416.28 2,533.06 2,429.52 2,405.85 2,594.22 1.79 100.79 107.44 98.22 95.09 103.14 0.58 Domestic consumption supply gap 2,315.49 2,425.62 2,331.30 2,310.77 2,491.08 1.84 Page 11

HS Hong Kong s Top Five Fish and Crustacean Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 030617 Frozen shrimp and prawns 289.14 365.22 361.17 11.76 030819 Sea cucumbers 348.53 361.48 327.91-3.00 030199 Live fish 212.22 239.15 269.54 12.70 030729 Frozen/dried/salted/in-brine scallops, including queen 030572 Smoked/dried/salted/brined fish heads, tails and maws 203.12 236.65 265.62 14.35 154.16 211.02 260.31 29.95 Hong Kong s Top Five Fish and Crustacean Product Imports and Top Supplying Countries, 2014 HS Product Description 030617 Frozen shrimp and prawns 030819 Sea cucumbers 030199 Live fish 030729 Frozen/dried/salted/in-brine scallops, including queen 030572 Smoked/dried/salted/brined fish heads, tails and maws Market Share % Canada s % 1 2 3 Share Vietnam Myanmar 22.23 8.16 0.73 39.06 Japan 47.88 47.39 Japan 55.06 India 24.59 8.32 Philippines 22.44 32.86 Brazil 20.23 Mexico 6.38 Indonesia 10.34 Canada 6.16 Uganda 9.83 2.60 <0.01 6.16 <0.01 Page 12

4. BEVERAGES *does not include juices Hong Kong s Top Ten Suppliers of Beverages, C$ Millions Country World 2,061.05 2,455.39 2,402.73 2,497.69 2,809.34 8.05 France 811.49 1,054.12 903.01 953.67 970.14 4.57 672.15 689.08 791.91 786.78 954.19 9.15 United Kingdom 174.33 215.46 179.00 175.41 218.19 5.77 Australia 61.26 76.27 80.69 104.19 126.30 19.83 United States 60.65 87.26 85.17 93.83 101.25 13.67 South Korea 33.21 35.86 36.03 43.35 61.60 16.70 Japan 31.60 43.27 49.26 48.77 55.24 14.99 Italy 25.54 33.14 40.05 41.01 48.44 17.35 Taiwan 23.13 22.93 28.64 37.26 37.51 12.84 Germany 12.88 19.16 21.78 24.73 28.44 21.89 (23) Canada 6.43 5.11 4.10 2.61 3.70-12.91 Hong Kong s Top Ten Suppliers of Beverages, % Share Country PP Change France 39.37 42.93 37.58 38.18 34.53-4.84 32.61 28.06 32.96 31.50 33.96 1.35 United Kingdom 8.46 8.78 7.45 7.02 7.77-0.69 Australia 2.97 3.11 3.36 4.17 4.50 1.53 United States 2.94 3.55 3.54 3.76 3.60 0.66 South Korea 1.61 1.46 1.50 1.74 2.19 0.58 Japan 1.53 1.76 2.05 1.95 1.97 0.44 Italy 1.24 1.35 1.67 1.64 1.72 0.48 Taiwan 1.12 0.93 1.19 1.49 1.34 0.22 Germany 0.63 0.78 0.91 0.99 1.01 0.38 (23) Canada 0.31 0.21 0.17 0.10 0.13-0.18 Page 13

In 2014, 37.4% of the total beverages imported by Hong Kong were re-exported to other countries. The top re-export destinations were (41.6%), Vietnam (28.6%) and Macau (22.3%). During the period, 19.5% of the total beverages imported from Canada were re-exported to other countries. Hong Kong s domestic consumption of Canadian beverages decreased by a CAGR of 16.0% over the same period. Beverages Supply Gap, C$ Millions Hong Kong s imports from the world 2,061.05 2,455.39 2,402.73 2,497.69 2,809.34 8.05 Hong Kong s imports from Canada 6.43 5.11 4.10 2.61 3.70-12.91 Supply gap 2,054.62 2,450.27 2,398.63 2,495.08 2,805.64 8.10 Beverages Re-Exports, C$ Millions Hong Kong s total re-exports 680.94 825.32 804.37 878.87 1,051.10 11.46 Hong Kong s re-exports from Canada 0.45 0.85 0.63 0.68 0.72 12.30 Beverages Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 1,380.11 1,630.07 1,598.36 1,618.82 1,758.24 6.24 5.98 4.27 3.47 1.93 2.98-15.99 Domestic consumption supply gap 1,374.14 1,625.81 1,594.89 1,616.89 1,755.26 6.31 Page 14

HS Hong Kong s Top Five Beverage Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 220421 220190 Wine of fresh grapes (other than sparkling) <2 litres Ice and snow waters other than mineral or aerated, not sweetened or flavoured 977.75 994.98 1128.73 7.44 456.39 495.87 511.12 5.83 220820 Grape brandy 289.07 304.79 318.93 5.04 220290 Non-alcoholic beverages 177.87 218.36 265.41 22.16 220890 Spirits including cordials, liqueurs, kirshwasser, ratafia, and vodka 165.04 112.51 143.56-6.73 Hong Kong s Top Five Beverage Product Imports and Top Supplying Countries, 2014 HS 220421 220190 Product Description Wine of fresh grapes (other than sparkling) <2 litres Ice and snow waters other than mineral or aerated, not sweetened or flavoured 220820 Grape brandy Market Share % Canada s % 1 2 3 Share France 49.47 99.99 France 99.30 United Kingdom 11.47 Japan <0.01 United Kingdom 0.20 10.12 South Korea <0.01 Singapore 0.20 0.25 N/A N/A 220290 Non-alcoholic beverages 46.23 Taiwan 11.44 United States 9.61 0.17 220890 Spirits including cordials, liqueurs, kirshwasser, ratafia, and vodka 96.54 Australia 1.15 Mexico 0.79 N/A Page 15

5. DAIRY, EGGS AND HONEY Hong Kong s Top Ten Suppliers of Dairy, Eggs and Honey, C$ Millions Country World 1,359.93 1,452.95 1,706.89 2,075.57 2,667.96 18.35 Netherlands 193.59 343.53 543.73 810.75 1,181.43 57.17 Indonesia 408.56 271.76 187.05 211.68 223.41-14.01 New Zealand 81.98 115.10 169.11 187.75 216.55 27.48 113.27 140.98 131.92 139.98 170.94 10.84 Australia 89.53 99.99 124.57 121.68 126.92 9.12 Ireland 118.14 112.95 115.91 112.11 114.84-0.71 United States 42.21 56.43 72.22 98.71 104.13 25.33 Singapore 31.84 34.22 73.13 74.58 99.81 33.06 Germany 10.93 19.74 26.03 39.00 72.02 60.20 Thailand 36.16 33.96 29.01 47.58 64.05 15.36 (22) Canada 1.80 4.51 3.41 3.67 3.37 16.86 Hong Kong s Top Ten Suppliers Dairy, Eggs and Honey, % Share Country PP Change Netherlands 14.24 23.64 31.85 39.06 44.28 30.04 Indonesia 30.04 18.70 10.96 10.20 8.37-21.67 New Zealand 6.03 7.92 9.91 9.05 8.12 2.09 8.33 9.70 7.73 6.74 6.41-1.92 Australia 6.58 6.88 7.30 5.86 4.76-1.82 Ireland 8.69 7.77 6.79 5.40 4.30-4.39 United States 3.10 3.88 4.23 4.76 3.90 0.80 Singapore 2.34 2.36 4.28 3.59 3.74 1.40 Germany 0.80 1.36 1.53 1.88 2.70 1.90 Thailand 2.66 2.34 1.70 2.29 2.40-0.26 (22) Canada 0.13 0.31 0.20 0.18 0.13 0.00 Page 16

In 2014, 13.9% of the total dairy, eggs and honey products imported by Hong Kong were re-exported to other countries. The top re-export destinations were Macau (84.2%), (8.9%) and Vietnam (3.5%). During the period, 8.3% of the total dairy, egg and honey products imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian dairy, egg and honey grew by a CAGR of 27.7% over this same period. Dairy, Eggs and Honey Supply Gap, C$ Millions Hong Kong s imports from the world 1,359.93 1,452.95 1,706.89 2,075.57 2,667.96 18.35 Hong Kong s imports from Canada 1.80 4.51 3.41 3.67 3.37 16.86 Supply gap 1,358.13 1,448.44 1,703.48 2,071.90 2,664.59 18.35 Dairy, Eggs and Honey Re-Exports, C$ Millions Hong Kong s total re-exports 115.87 142.56 157.91 255.79 371.70 33.83 Hong Kong s re-exports from Canada 0.64 3.70 0.23 0.19 0.28-18.95 Dairy, Eggs and Honey Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 1,244.07 1,310.39 1,548.98 1,819.78 2,296.26 16.56 1.16 0.81 3.18 3.49 3.09 27.66 Domestic consumption supply gap 1,242.91 1,309.58 1,545.80 1,816.29 2,293.17 16.55 Page 17

Hong Kong s Top Five Dairy, Eggs and Honey Product Imports, C$ Millions HS 040221 Product Description 2012 2013 2014 Concentrated milk/cream, not sweetened, in powder, granules or other solid forms, >1.5% fat content by weight 2012-14 937.63 1209.15 1615.22 31.25 041000 Edible products of animal origin 190.14 218.16 229.13 9.78 040721 Fresh chicken eggs 149.44 175.77 206.43 17.53 040291 Concentrated milk/cream, not sweetened 71.98 72.52 94.83 14.78 040120 Milk/cream, not concentrated nor sweetened >1% but <6% fat content by weight 68.76 77.17 90.18 14.52 Hong Kong s Top Five Dairy, Eggs and Honey Product Imports and Top Supplying Countries, 2014 HS Product Description Market Share % 1 2 3 Canada s % Share 040221 Concentrated milk/cream, not sweetened, in powder, granules or other solid forms, >1.5% fat content by weight Netherlands 69.14 Ireland 7.06 New Zealand 6.18 0.08 041000 Edible products of animal origin Indonesia 94.29 Malaysia 3.81 Vietnam 28.37 N/A 040721 Fresh chicken eggs 43.33 United States 25.63 Thailand 13.15 0.01 040291 Concentrated milk/cream, not sweetened Netherlands 58.38 Singapore 13.75 Malaysia 13.54 N/A 040120 Milk/cream, not concentrated nor sweetened >1% but <6% fat content by weight 27.04 Thailand 20.20 Australia 19.85 0.09 Page 18

6. FURSKINS AND ARTIFICIAL FUR Hong Kong s Top Ten Suppliers of Furskins and Artificial Fur, C$ Millions Country World 2,266.93 2,417.95 2,818.54 3,517.11 2,262.01-0.05 1,155.49 1,188.58 1,301.80 1,562.84 1,127.58-0.61 Denmark 562.09 693.26 903.12 1,161.52 677.92 4.80 Canada 121.21 119.98 179.24 253.12 134.99 2.73 Finland 246.01 203.11 209.76 265.92 90.61-22.10 Italy 18.69 32.20 37.15 46.28 70.52 39.37 Netherlands 34.19 36.33 47.44 56.71 43.34 6.11 United States 66.17 59.90 49.07 76.21 28.69-18.85 Greece 5.85 10.40 12.38 16.90 16.88 30.32 France 7.01 9.51 8.04 11.33 16.36 23.58 United Kingdom 17.15 12.96 17.31 16.70 13.74-5.38 Hong Kong s Top Ten Suppliers of Furskins and Artificial Fur, % Share Country PP Change 2010-2014 50.97 49.16 46.19 44.44 49.85-1.12 Denmark 24.80 28.67 32.04 33.02 29.97 5.17 Canada 5.35 4.96 6.36 7.20 5.97 0.62 Finland 10.85 8.40 7.44 7.56 4.01-6.84 Italy 0.82 1.33 1.32 1.32 3.12 2.30 Netherlands 1.51 1.50 1.68 1.61 1.92 0.41 United States 2.92 2.48 1.74 2.17 1.27-1.65 Greece 0.26 0.43 0.44 0.48 0.75 0.49 France 0.31 0.39 0.29 0.32 0.72 0.41 United Kingdom 0.76 0.54 0.61 0.47 0.61-0.15 Page 19

In 2014, only 26.9% of the total furskins and artificial fur imported by Hong Kong was consumed domestically, with the remaining 73.1% re-exported to other countries. The top re-export destinations were (74.0%), Vietnam (6.2%) and Russia (3.4%). During the period, 97.7% of the total furskins and artificial fur imported from Canada was re-exported to other countries. Hong Kong s domestic consumption of Canadian furskins and artificial fur decreased substantially by a CAGR of 42.8% over the same period. Furskins and Artificial Fur Supply Gap, C$ Millions Hong Kong s imports from the world 2,266.93 2,417.95 2,818.54 3,517.11 2,262.01-0.05 Hong Kong s imports from Canada 121.21 119.98 179.24 253.12 134.99 2.73 Supply gap 2,145.72 2,297.97 2,639.31 3,263.99 2,127.02-0.22 Furskins and Artificial Fur Re-Exports, C$ Millions Hong Kong s total re-exports 1,398.28 1,431.79 1,626.96 2,087.47 1,654.12 4.29 Hong Kong s re-exports from Canada 92.30 98.73 133.92 219.53 131.90 9.33 Furskins and Artificial Fur Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 868.64 986.17 1,191.58 1,429.63 607.89-8.54 28.90 21.25 45.31 33.59 3.09-42.82 Domestic consumption supply gap 839.74 964.91 1,146.27 1,396.04 604.80-7.88 Page 20

Hong Kong s Top Five Furskins and Artificial Fur Product Imports, C$ Millions HS 430211 Product Description 2012 2013 2014 Whole tanned/dressed not assembled mink furskins 2012-14 1,052.93 1,340.12 926.28 6.21 430110 Whole raw mink furskins 1,296.79 1,686.81 902.27-16.59 430310 430219 430230 Articles of apparel and clothing accessories of furs Whole tanned/dressed not assembled furskins Whole/pieces tanned/assembled furskins 283.26 258.94 282.10-0.20 97.19 106.45 76.47-11.30 17.22 41.48 38.81 50.13 Hong Kong s Top Five Furskins and Artificial Fur Product Imports and Top Supplying Countries, 2014 HS 430211 Product Description Whole tanned/dressed not assembled mink furskins 430110 Whole raw mink furskins 430310 430219 430230 Articles of apparel and clothing accessories of furs Whole tanned/dressed not assembled furskins Whole/pieces tanned/assembled furskins Market Share % Canada s % 1 2 3 Share 91.18 Denmark 72.03 66.04 57.60 92.69 Denmark 2.86 Canada 13.79 Italy 21.38 Italy 5.10 Spain 2.40 Netherlands 1.74 Finland 6.92 Greece 3.56 Finland 3.27 France 1.48 0.37 13.79 0.17 2.66 0.03 Page 21

7. PREPARED MEAT AND FISH Hong Kong s Top Ten Suppliers of Prepared Meat and Fish, C$ Millions Country World 923.36 1,354.23 1,378.88 1,676.35 1,808.84 18.31 299.08 466.56 550.31 618.74 590.54 18.54 United States 78.02 113.37 138.30 145.98 139.16 15.56 Thailand 45.12 43.59 45.29 63.92 73.91 13.13 Poland 29.57 48.55 36.32 49.91 73.38 25.51 Spain 61.01 101.57 76.63 86.82 71.86 4.18 Brazil 24.56 32.36 30.63 49.87 62.20 26.15 Australia 34.51 44.94 46.55 51.19 51.83 10.70 Paraguay 1.02 6.28 15.23 38.49 49.94 164.74 Taiwan 32.02 41.68 42.95 52.59 49.25 11.36 Japan 34.39 30.02 37.22 44.06 47.75 8.55 (19) Canada 8.00 11.07 12.69 15.17 20.44 26.43 Hong Kong s Top Ten Suppliers of Prepared Meat and Fish, % Share Country PP Change 32.39 34.45 39.91 36.91 32.65 0.26 United States 8.45 8.37 10.03 8.71 7.69-0.76 Thailand 4.89 3.22 3.28 3.81 4.09-0.80 Poland 3.20 3.58 2.63 2.98 4.06 0.86 Spain 6.61 7.50 5.56 5.18 3.97-2.64 Brazil 2.66 2.39 2.22 2.98 3.44 0.78 Australia 3.74 3.32 3.38 3.05 2.87-0.87 Paraguay 0.11 0.46 1.10 2.30 2.76 2.65 Taiwan 3.47 3.08 3.12 3.14 2.72-0.75 Japan 3.72 2.22 2.70 2.63 2.64-1.08 (19) Canada 0.87 0.82 0.92 0.90 1.13 0.26 Page 22

In 2014, 12.5% of the total prepared meat and fish imported by Hong Kong was re-exported to other countries. The top re-export destinations were Vietnam (62.5%), Macau (21.7%) and Singapore (3.7%). During the period, almost 15.0% of the total prepared meat and fish imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian prepared meat and fish increased by a CAGR of 25.3% over the same period. Prepared Meat and Fish Supply Gap, C$ Millions Hong Kong s imports from the world 923.36 1,354.23 1,378.88 1,676.35 1,808.84 18.31 Hong Kong s imports from Canada 8.00 11.07 12.69 15.17 20.44 26.43 Supply gap 915.36 1,343.16 1,366.19 1,661.18 1,788.40 18.23 Prepared Meat and Fish Re-Exports, C$ Millions Hong Kong s total re-exports 162.16 211.12 154.99 275.11 225.22 8.56 Hong Kong s re-exports from Canada 0.89 0.81 1.92 2.14 2.92 34.80 Prepared Meat and Fish Domestic Consumption Supply Gap, C$ Millions consumed imports from the World consumed imports from Canada 761.20 1,143.12 1,223.89 1,401.24 1,583.62 20.10 7.11 10.26 10.77 13.03 17.52 25.27 Domestic consumption supply gap 754.08 1,132.85 1,213.12 1,388.21 1,566.11 20.05 Page 23

Hong Kong s Top Five Prepared Meat and Fish Product Imports, C$ Millions HS Product Description 2012 2013 2014 2012-14 160249 Prepared/preserved pork or pork offal 380.85 495.79 539.40 19.01 160232 Prepared/preserved chicken or chicken offal 160.37 192.52 275.50 31.07 160250 Prepared/preserved beef or beef offal 142.05 220.72 269.70 37.79 160420 Prepared/preserved fish 137.89 136.84 138.79 0.33 160557 Prepared/preserved abalone 99.75 110.74 103.11 1.67 Hong Kong s Top Five Prepared Meat and Fish Product Imports and Top Supplying Countries, 2014 HS Product Description 160249 Prepared/preserved pork or pork offal 160232 Prepared/preserved chicken or chicken offal 160250 Prepared/preserved beef or beef offal 160420 Prepared/preserved fish 160557 Prepared/preserved abalone Market Share % Canada s % 1 2 3 Share 28.52 30.73 Paraguay 16.79 50.80 25.54 Poland 9.18 Thailand 10.23 United States 9.14 Japan 14.98 Australia 18.46 United States 8.91 United States 7.36 Brazil 8.11 Taiwan 14.66 South Africa 15.27 0.71 0.25 0.09 0.01 N/A Page 24

8. MISCELLANEOUS EDIBLE PREPARATIONS Hong Kong s Top Ten Suppliers of Miscellaneous Edible Preparations, C$ Millions Country World 660.25 760.92 830.71 896.36 1,069.17 12.81 205.81 233.29 243.21 262.49 310.33 10.81 United States 101.24 116.15 133.80 132.25 156.02 11.42 Japan 95.08 92.07 95.25 94.58 98.03 0.77 Netherlands 2.46 27.71 42.13 50.71 78.64 137.86 Malaysia 31.03 42.52 49.21 54.31 67.38 21.39 Taiwan 44.15 49.79 47.96 57.17 67.23 11.08 France 21.34 28.71 31.65 37.99 41.33 17.97 Thailand 21.37 28.44 26.19 29.20 35.86 13.82 South Korea 10.71 14.57 19.44 25.25 34.72 34.19 Australia 9.13 12.72 14.34 12.30 29.87 34.51 (16) Canada 8.58 8.52 10.44 13.41 12.04 8.83 Hong Kong s Top Ten Suppliers of Miscellaneous Edible Preparations, % Share Country PP Change 31.17 30.66 29.28 29.28 29.03-2.14 United States 15.33 15.26 16.11 14.75 14.59-0.74 Japan 14.40 12.10 11.47 10.55 9.17-5.23 Netherlands 0.37 3.64 5.07 5.66 7.36 6.99 Malaysia 4.70 5.59 5.92 6.06 6.30 1.60 Taiwan 6.69 6.54 5.77 6.38 6.29-0.4 France 3.23 3.77 3.81 4.24 3.87 0.64 Thailand 3.24 3.74 3.15 3.26 3.35 0.11 South Korea 1.62 1.92 2.34 2.82 3.25 1.63 Australia 1.38 1.67 1.73 1.37 2.79 1.41 (16) Canada 1.30 1.12 1.26 1.50 1.13-0.17 Page 25

In 2014, 21.4% of Hong Kong s total imports of miscellaneous edible preparations was re-exported to other countries. The top re-export destinations were (35.0%), Macau (32.3%) and the United States (8.7%). During the period, almost 10.0% of the total miscellaneous edible preparations imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian miscellaneous edible preparations increased by a CAGR of 7.8% over the same period. Miscellaneous Edible Preparations Supply Gap, C$ Millions Hong Kong s imports from the world 660.25 760.92 830.71 896.36 1,069.17 12.81 Hong Kong s imports from Canada 8.58 8.52 10.44 13.41 12.04 8.83 Supply gap 651.67 752.40 820.27 882.95 1,057.13 12.86 Miscellaneous Edible Preparations Re-Exports, C$ Millions Hong Kong s total re-exports 111.89 125.66 157.75 181.87 228.83 19.59 Hong Kong s re-exports from Canada 0.49 1.17 0.43 0.68 1.13 23.20 Miscellaneous Edible Preparations Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 548.36 635.26 672.96 714.49 840.34 11.26 8.09 7.35 10.01 12.73 10.91 7.75 Domestic consumption supply gap 540.27 627.91 662.95 701.76 829.43 11.31 Page 26

Hong Kong s Top Five Miscellaneous Edible Preparation Product Imports, C$ Millions HS Product Description 2012 2013 2014 2012-14 210690 Food preparations 430.71 463.73 584.56 16.50 210390 Sauces, mixed condiments and seasonings 185.77 194.24 214.16 7.37 210410 Soups, broths and preparations 57.91 65.92 78.29 16.28 210310 Soy sauce 32.36 34.52 34.79 3.69 210112 Coffee extracts, essences, concentrates and related preparations 22.34 25.37 33.96 23.29 Hong Kong s Top Five Food Miscellaneous Edible Preparation Product Imports and Top Supplying Countries, 2014 HS Product Description 210690 Food preparations Market Share % Canada s % 1 2 3 Share 20.62 United States 15.30 Netherlands 13.07 1.72 210390 Sauces, mixed condiments and seasonings 41.41 Japan 16.76 United States 13.70 0.07 210410 Soups, broths and preparations 48.03 Malaysia 19.06 United States 10.91 0.24 210310 Soy sauce 61.37 Japan 22.39 Singapore 7.83 <0.01 210112 Coffee extracts, essences, concentrates and related preparations Malaysia 48.71 21.27 Japan 8.20 N/A Page 27

9. TOBACCO Hong Kong s Top Ten Suppliers of Tobacco, C$ Millions Country World 641.90 707.83 828.32 893.48 995.64 11.60 165.33 175.95 239.30 265.49 297.95 15.86 South Korea 28.10 25.16 36.51 125.37 158.96 54.22 Serbia 0.00 0.00 9.03 102.82 149.56 N/C Japan 64.63 72.61 68.64 67.55 68.61 1.51 Cuba 32.07 38.80 39.38 41.50 62.22 18.02 Singapore 61.81 57.84 50.91 61.38 61.35-0.19 Macau 4.11 9.76 12.36 15.09 37.31 73.57 Brazil 18.64 21.85 37.27 33.92 31.55 14.05 Malaysia 86.20 88.37 90.91 27.39 24.53-26.96 Germany 91.32 96.98 83.42 21.27 22.11-29.86 (50) Canada 0.00 0.08 15.27 6.12 0.00 N/C Hong Kong s Top Ten Suppliers of Tobacco, % Share Country PP Change 25.76 24.86 28.89 29.71 29.93 4.17 South Korea 4.38 3.55 4.41 14.03 15.97 11.59 Serbia - - 1.09 11.51 15.02 15.05 Japan 10.07 10.26 8.29 7.56 6.89-3.18 Cuba 5.00 5.48 4.75 4.64 6.25 1.25 Singapore 9.63 8.17 6.15 6.87 6.16 3.47 Macau 0.64 1.38 1.49 1.69 3.75 3.11 Brazil 2.90 3.09 4.50 3.80 3.17 0.27 Malaysia 13.43 12.48 10.97 3.07 2.46-10.97 Germany 14.23 13.70 10.06 2.38 2.22-12.03 (50) Canada - 0.01 1.84 0.69 - N/C Page 28

Only 21.8% of the total tobacco imported by Hong Kong was consumed domestically, with the remaining 78.2% re-exported to other countries in 2014. The top re-export destinations were (51.1%), Vietnam (18.3%) and Macau (12.4%). The re-export of tobacco coming from Canada is essentially non-existent over the last five years. In addition, Hong Kong s imports of Canadian tobacco for domestic consumption have been inconsistent from, with no imports recorded in 2014. Tobacco Supply Gap, C$ Millions Hong Kong s imports from the world 641.90 707.83 828.32 893.48 995.64 11.60 Hong Kong s imports from Canada 0.00 0.08 15.27 6.12 0.00 N/C Supply gap 641.90 707.75 813.05 887.36 995.64 11.60 Tobacco Re-Exports, C$ Millions Hong Kong s total re-exports 546.19 567.48 596.42 674.51 778.77 9.27 Hong Kong s re-exports from Canada 0.07 0.00 0.07 0.00 0.00-100.00 Tobacco Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 95.70 140.35 231.91 218.97 216.87 22.69 0.00 0.08 15.20 6.12 0.00 N/C Domestic consumption supply gap 95.70 140.27 216.71 212.85 216.87 22.69 Page 29

HS Hong Kong s Top Five Tobacco Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 240220 Cigarettes containing tobacco 614.35 675.35 778.34 12.56 240210 240120 240319 Cigars, cheroots and cigarillos containing tobacco Partly/wholly stemmed/stripped tobacco Smoking tobacco with/without tobacco substitute 59.80 63.18 91.28 23.55 115.99 108.86 74.93-19.63 32.70 42.92 44.20 16.26 240391 Homogenized/reconstituted tobacco 2.05 2.01 5.17 58.74 Hong Kong s Top Five Tobacco Product Imports and Top Supplying Countries, 2014 HS Product Description 240220 Cigarettes containing tobacco 240210 240120 240319 Cigars, cheroots and cigarillos containing tobacco Partly/wholly stemmed/stripped tobacco Smoking tobacco with/without tobacco substitute 240391 Homogenized/reconstituted tobacco Market Share % Canada s % 1 2 3 Share 28.91 Cuba 67.67 44.01 81.32 56.02 South Korea 20.42 Switzerland 10.83 Brazil 41.61 Belgium 5.22 France 43.98 Serbia 19.22 Dominican Republic 9.89 Zimbabwe 11.63 Denmark 3.87 South Korea N/A N/A N/A N/A N/A N/A Page 30

10. BAKING RELATED GOODS Hong Kong s Top Ten Suppliers of Baking Related Goods, C$ Millions Country World 563.46 620.72 711.22 859.77 983.68 14.95 234.04 245.19 282.27 311.91 349.37 10.54 Japan 62.42 66.42 85.18 106.16 116.24 16.82 Indonesia 30.28 39.93 43.58 47.90 56.49 16.86 Taiwan 28.00 29.37 36.09 41.38 41.52 10.34 South Korea 13.57 14.82 21.42 35.43 41.31 32.09 Thailand 29.03 33.28 34.16 39.56 40.94 8.98 United States 16.69 18.90 23.87 31.94 38.49 23.23 Denmark 43.72 43.43 23.63 32.03 34.10-6.02 Malaysia 23.60 21.94 23.90 28.55 33.46 9.13 Singapore 6.23 10.42 14.16 21.11 29.98 48.13 (24) Canada 1.88 2.18 2.44 3.04 2.61 8.49 Hong Kong s Top Ten Suppliers of Baking Related Goods, % Share Country PP Change 41.54 39.50 39.69 36.28 35.52-6.02 Japan 11.08 10.70 11.98 12.35 11.82 0.74 Indonesia 5.37 6.43 6.13 5.57 5.74 0.37 Taiwan 4.97 4.73 5.07 4.81 4.22-0.75 South Korea 2.41 2.39 3.01 4.12 4.20 1.79 Thailand 5.15 5.36 4.80 4.60 4.16-0.99 United States 2.96 3.04 3.36 3.72 3.91 0.95 Denmark 7.76 7.00 3.32 3.72 3.47-4.29 Malaysia 4.19 3.53 3.36 3.32 3.40-0.79 Singapore 1.11 1.68 1.99 2.45 3.05 1.94 (24) Canada 0.33 0.35 0.34 0.35 0.27-0.06 Page 31

In 2014, over 19.0% of all baking related goods imported by Hong Kong was re-exported to other countries. The top re-export destinations were (39.8%), Macau (39.0%) and the United States (3.3%). During the period, 3.5% of baking related goods imported from Canada was re-exported to other countries. However, Hong Kong s domestic consumption of Canadian baking related goods increased by a CAGR of 12.6% over the same period. Baking Related Goods Supply Gap, C$ Millions Hong Kong s imports from the world 563.46 620.72 711.22 859.77 983.68 14.95 Hong Kong s imports from Canada 1.88 2.18 2.44 3.04 2.61 8.49 Supply gap 561.57 618.54 708.78 856.73 981.07 14.97 Baking Related Goods Re-Exports, C$ Millions Hong Kong s total re-exports 112.25 149.12 140.27 166.37 188.16 13.79 Hong Kong s re-exports from Canada 0.32 0.09 0.05 0.08 0.09-27.12 Baking Related Goods Domestic Consumption Supply Gap, C$ Millions consumed imports from the world consumed imports from Canada 451.21 471.60 570.94 693.40 795.52 15.23 1.57 2.10 2.39 2.97 2.52 12.61 Domestic consumption supply gap 449.64 469.50 568.56 690.44 793.00 15.24 Page 32

HS Hong Kong s Top Five Baking Related Goods Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 190590 Bread, pastry, cakes, biscuits, etc. and puddings 256.37 320.60 360.46 18.58 190230 Prepared pasta 120.54 133.69 147.46 10.60 190219 Uncooked (spaghetti and macaroni) pasta, not stuffed 77.61 97.51 114.83 21.63 190531 Cookies (sweet biscuits) 66.83 80.92 89.14 15.49 190190 Malt extract; products of flour, meal etc. with <40% cocoa; milk/cream products with <50% cocoa 47.64 78.19 82.42 31.52 Hong Kong s Top Five Baking Related Goods Product Imports and Top Supplying Countries, 2014 HS Product Description Market Share % 1 2 3 Canada s % Share 190590 Bread, pastry, cakes, biscuits, etc. and puddings 34.48 Japan 12.70 Indonesia 10.89 0.28 190230 Prepared pasta 42.76 Japan 18.52 South Korea 12.60 N/A 190219 Uncooked (spaghetti and macaroni) pasta, not stuffed 68.01 Italy 11.26 Japan 6.00 0.32 190531 Cookies (sweet biscuits) Japan 28.10 14.96 United Kingdom 10.81 0.22 190190 Malt extract; products of flour, meal etc. with <40% cocoa; milk/cream products with <50% cocoa Singapore 25.82 New Zealand 14.41 Malaysia 14.30 0.01 Page 33

CONCLUSION Hong Kong is the world s eighth-largest importer of agri-food and seafood products, and Canada is ranked as the 10 th -largest supplier of agri-food and seafood to Hong Kong. However, there is a significant supply gap between Hong Kong and Canada that has only been widening in recent years. While Hong Kong sources agri-food and seafood products from a large number of countries, among many commodities the vast majority of imports come from the top one or two suppliers, leaving just marginal market share for others. Canada holds less than 1.5% market share in all of Hong Kong s top ten imported commodities, except furskins and artificial fur, where Canada has a 5.9% share. Canada also falls outside of the top ten suppliers in five of Hong Kong s top imported commodities (edible fruit and nuts; beverages; dairy, eggs and honey; prepared meat and fish; miscellaneous edible preparations; tobacco; and baking related goods). However, Hong Kong s imports from Canada have increased in seven of the top ten commodities, with the exceptions being beverages; dairy, eggs and honey; and tobacco. This may indicate further opportunities to lessen the gap, particularly within the commodities where growth in imports from Canada outpaced growth in imports from the world, such as in edible fruit and nuts. It is important to note that Hong Kong re-exported C$9.9 billion worth of agri-food and seafood products in 2014, representing 31.3% of the total agri-food and seafood exported by Hong Kong. Re-exports of agri-food and seafood products originating from Canada were valued at C$203.7 million, thus positioning Hong Kong as a potential gateway for Canada to access other Asian markets. FOR MORE INFORMATION International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice. Overview of Trade Commissioner Services in Hong Kong http://www.tradecommissioner.gc.ca/eng/office.jsp?oid=117&cid=513 Find a Trade Commissioner http://www.tradecommissioner.gc.ca/eng/find-trade-contacts.jsp For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest: ats-sea.agr.gc.ca RESOURCES Global Trade Atlas (March 2015). ANNEX: ABBREVIATIONS CAGR - compound annual growth rate N/A - not applicable N/C - not calculable PP - percentage point (difference between two percentage values) Page 34

Competitive Trade Analysis: Hong Kong Global Analysis Report Prepared by: Oumou Keita, Co-op Student Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2015). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. For additional copies, to request an alternate format, and for all other inquiries regarding this publication, please contact: Agriculture and Agri-Food Canada, Global Analysis 1341 Baseline Road, Tower 5, 3 rd floor Ottawa, ON Canada K1A 0C5 E-mail: infoservice@agr.gc.ca The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge. Page 35