From Product Export to Supply Chain Going Overseas – Multiple Food Enterprises Establish Production Bases Abroad

Cailian Press, March 12 — (Reporter Shen Jiao Jiao, Intern Reporter Lin Jia Hao) Recently, Ziyan Food (603057.SH) announced plans to invest 500 million yuan to build a water buffalo slaughter and processing plant in Nepal.

In fact, some Chinese food companies are shifting from simple product exports to establishing overseas production bases, deepening their supply chain internationalization. By 2025, companies like Ziyan Food, Qianwei Central Kitchen (001215.SZ), and Sanquan Food (002216.SZ) have announced plans to set up production and processing facilities in countries such as Nepal, Malaysia, and Australia.

Behind this move are two main reasons: one is to reduce export tariffs and trade barriers, shorten cross-border logistics distances and cycles, and improve response times and supply stability for local customers; the other is to align with the trend of Chinese cuisine going global, seizing opportunities created by overseas supply and demand gaps.

Leading Food Companies Building Overseas Factories

Currently, most domestic food companies mainly export products, with only a few engaging in heavy asset investments overseas. For example, Anjoy Food (603345.SH) acquired part of UK-based KFC’s parent company in 2021, while Si Nian Food had already acquired a factory in Los Angeles, USA, in 2015. However, since 2025, many food companies have disclosed plans for overseas production bases.

In July 2025, Sanquan Food announced that it planned to invest approximately 280 million AUD (over 1.3 billion RMB) to build a production base in Australia targeting the Australian, New Zealand, and Southeast Asian markets.

In January this year, Qianwei Central Kitchen indicated in investor activity records that to further expand overseas markets and optimize the global supply chain, it plans to invest in establishing an overseas production base in Malaysia, enabling localized production and supply in Southeast Asia. On March 2, the company further stated on an investor platform that its Malaysian entity has been registered and that it will proceed with relevant licensing and certification applications in an orderly manner. Additionally, Qianwei Central Kitchen told Cailian Press that its overseas production bases will be established through acquisitions, with production equipment and personnel localized.

Recently, Ziyan Food announced that it plans to invest 500 million yuan of its own funds to increase capital in its wholly owned subsidiary Chengdu Ziyan. Chengdu Ziyan will then invest up to 500 million yuan (or equivalent foreign currency) into its wholly owned subsidiary in Nepal, Ziyan Nepal, for the construction of a water buffalo slaughter and processing plant. The total project investment is 800 million yuan (or equivalent foreign currency), with 300 million yuan already invested in the early stages. This capital increase is for subsequent construction funding. Ziyan Food’s choice of Nepal, a relatively niche destination, is driven by its active response to the national “Belt and Road” initiative, as local investment and industry support policies provide a favorable business environment for the project.

Building Overseas Supply Chains to Solve Export Challenges

For a long time, factors such as quarantine policies in export destinations, high cold chain shipping costs, tariffs, and trade barriers have constrained the overseas expansion of food companies.

Meanwhile, Chinese cuisine’s international presence is accelerating, with well-known chain brands expanding rapidly. Currently, Haidilao has over 120 overseas stores, Zhang Liang Málà Tàng has over 100, Yang Guo Fu Málà Tàng nearly 200, and brands like Nong Geng Ji, Zheng Liu Ji, Fei Dazhu, Zhu Guangyu, Shu Daxia, and Chao Tian Men are also opening stores abroad. The “2025-2030 China Food Service Market and International Market Outlook” reports that the international Chinese food market will surpass $260 billion in 2024, with a compound annual growth rate of 12%.

An industry insider from a large chain Chinese restaurant told Cailian Press that most overseas stores prefer to cooperate with local suppliers to meet compliance requirements and ensure stable ingredient supply.

Against this backdrop, domestic food companies are establishing bases overseas to achieve localized production and supply, fundamentally addressing these issues. Qianwei Central Kitchen said that after the Malaysia base is operational, it will significantly reduce export tariffs and trade barriers, shorten cross-border logistics distances and cycles, and lower costs related to shipping, customs, and warehousing, thereby improving response speed and supply stability for local customers.

Moreover, Qianwei Central Kitchen stated that it has already begun operations in Southeast Asia, mainly serving large chain restaurant clients. The local production initiative aims to achieve regional localization of supply. The company’s core business remains serving B2B clients, leveraging existing product and channel advantages, and combining regional cultural and dietary habits, along with the brand strength built through long-term international catering service experience, to further expand the local market.

Ziyan Food’s overseas supply chain expansion is driven by the desire to secure high-quality raw materials and cost advantages directly, reducing the impact of raw material price fluctuations on performance and greatly enhancing supply chain resilience and autonomy. It also helps the company effectively respond to international trade barriers and build a supply chain system suited for international operations, providing stable and sustainable support for long-term overseas growth.

For Sanquan Food, amid increasing domestic industry competition, seizing overseas supply and demand gaps presents an opportunity. The Australian base will break product export limitations and shorten the supply chain radius. Based on extensive market research, the company believes that the Australia-New Zealand and Southeast Asian markets offer high consumption potential and low competition, providing significant growth opportunities.

“Going overseas is not a short-term quick fix but a systematic long-term effort,” said an industry analyst. He emphasized that establishing overseas bases is a strategic integration of global resources tailored to business needs. Building capabilities such as developing products suited to local tastes and managing international teams is essential to creating a second growth curve and advancing the company to a new level of development.

(Cailian Press, reporters Shen Jiao Jiao and Lin Jia Hao)