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Sunflower Seeds Skyrocket in China
By Jill Lee
The black-and-white zebra stripes of crunchy-salty sunflower seeds are a favorite snack of healthy eaters in the United States–but they’re even more popular in the People’s Republic of China. A high-quality U.S. product and increased disposable income among Chinese consumers have recently prompted dramatic growth of this export.
Sino-Sunflower Market is Booming
U.S. exports of sunflower seeds to China reached a value of close to $5.3 million in 1998, with a market share of 80 percent.
The growth in exports has come a long way since 1995, when 300 metric tons of edible seeds–called confectionery sunflower seeds by the industry--were imported into China. This year, 10,000 tons will be shipped. This is a different market from sunflower seeds for planting.
What Caused the Seed’s Success?
There are two main reasons for the boom in sunflower seed sales to China. The first is the reputation U.S. sunflower seeds have for quality. The second is more Chinese consumers have expendable income to purchase luxuries such as snacks.
"Just like U.S. citizens enjoy cracking peanuts at a ball game, Chinese like the crunchy taste of whole sunflower seeds," said Larry Kleingartner, executive director of the National Sunflower Association (NSA). "And the U.S. sunflower seed reputation is so strong that many snack packs have little U.S. flags on their label."
One other important fact: the Chinese government offers incentives for the production of staple foods such as wheat, corn, rice and soybeans, but not for sunflower seeds.
If Chinese farmers grow sunflower seeds, their objective is probably to restore the soil and remove alkalinity.
Of the sunflower seeds that are grown in China, about 75 percent are crushed for oil. The rest go to bird food, or possibly for snacks.
The Snack-Track Means Profits
U.S. sunflower seeds may have benefitted from a solid reputation for quality and long-standing government farm policy, but this success is also about consumers’ tastes.
The Chinese are serious about their snacking. They spend an estimated 10 percent of their grocery budget on snacks.
That crunchy texture of sunflower seeds is what sells. While some growers and exporters have tried to open a market for sunflower kernels without the shell, it just doesn’t play as well with China’s consumers, according to John Sandbakken, marketing director for the NSA.
Sandbakken made a trip to China in 1998 to promote U.S. sunflower seeds. He will be returning this year thanks to FAS. The National Sunflower Association recently received $809,180 from FAS’ Market Access Program to promote their product overseas. In total, FAS provided $90 million to over 65 U.S. trade organizations for export promotion in other countries. MAP uses funds from USDA’s Commodity Credit Corporation.
"We really appreciate FAS’ financial assistance in conducting these marketing missions to China. We are a smaller trade association and travel to China is not inexpensive," Sandbakken said. "That direct contact is essential to building new markets in China."
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John Sandbakken is marketing director for the National
Sunflower Association, Bismarck, North Dakota. Tel.: (701)
328-5100; Fax: (701) 328-5101; E-mail: johns@sunflowernsa.com
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