A panel representing all points of the supply chain discussed how China’s fruit and vegetable distribution landscape has evolved at Asiafruit Congress
China’s fresh produce market continues to develop as more consumers seek out a wider array of products and suppliers look to service demand from more than 1.4bn people. Behind this change sits a fresh produce supply chain that has been forced to evolve to ensure perishable products can make it to the end consumer in the best condition possible.
On Day Two of Asia Fruit Logistica, the Asiafruit Congress session ‘China’s changing distribution landscape’ gathered perspectives from industry experts on how the country’s fresh produce logistics sector had transformed and what supply chain advances were needed to facilitate further growth.
Justin Chan of VX Logistics opened the session with a presentation on how his company had worked with leading global fruit brands and suppliers to develop a comprehensive modern supply chain service tailored to fresh produce.
Chan then joined the discussion with Sean Chou of Zespri International; Ivan Marambio of Frutas de Chile and Belle Lam of Hong Kong Customs and Excise Department.
Chan reflected on the changes he has seen in China’s supply chain particularly during and post-Covid. He noted the overarching theme of an increased care for cold chain, which has powered investment from government, retailers and industry.
“Consumers are pickier about the freshness of their products, not just imported food, but also the local brands, so cold chain has become more frequent topic for them,” explained Chan. “Retailers are doing more direct sourcing, and then they need experienced and reliable partners to do the packing, cold storage and manage the whole process for them.
“Distributors are also becoming more capable and experienced and they care more about quality and market changes. They care more about brands so they care about temperature and visibility.”
Chan said the cold chain in some of the lower tier cities still lagged behind, but he suggested distributors, and companies like VX Logistics could play a more important role in ensuring the right steps were taken. Sharing knowledge and processes would help facilitate growth in these cities.
Chou picked up on the point of partnership and said although Zespri has invested in its own supply chain infrastructure in China, its partnerships still played an essential role in success.
“Our focus is less about controlling every step and more about ensuring that you have a great partnership. We trust our partners and we trust the transparency through the whole journey,” Chou said. “Every season, Mother Nature gives different disruptions and different challenges. The strength of our partners in the global landscape is that they really understand the variability of the fresh produce, but still can achieve a consistent delivery experience or eating experience for our consumers.”
Marambio said China was Chile’s largest fresh fruit export market despite being one of the most distant. This means the integrity of the supply chain has to be “exceptional”. Chilean suppliers have been able to cut their time to destination with services like the Cherry Express and they recognise that strong supply chain will be key to achieving growth in tier-two and three cities. However, Marambio said the last mile was still one of the biggest challenges.
“The last mile is a concern for us especially with products like blueberries and cherries which are very fragile. We need to keep our products fresh, the same as they were at harvest,” he said. “We need to have quality high at the farm and keep it there. In order to keep the quality high, we need consistency and you get consistency through technology. That is what we are doing, at the farm level, at the packaging level during transit and of course in China.”
Lam shared some insight about a new Air-Land Fresh Lane initiative launched by Hong Kong Customs, in close collaboration with the Gongbei Customs and the governments of both Hong Kong and mainland China.
This initiative enables fast and secure movement of fresh overseas products, especially fruit, via Hong Kong to the mainland by using Hong Kong International Airport and the Hong Kong-Zhuhai-Macao Bridge. With new regulatory measures and technology, the Fresh Lane streamlines customs clearance and quarantine procedures for fresh produce travelling into the Greater Bay Area, expanding the reach and efficiency of fruit distribution beyond Hong Kong.
This article appears in the upcoming eition of Asiafruit Magazine. For more coverage from the Asiafruit Knowledge Centre visit the Asiafruit App.
