Cold Storage
4/28/2008
Cold Chain Opportunities in China
2008 IARW-WFLO-IRTA Annual Convention & Expo
Outline General information of China Import & Export of the Agricultural Products Food production Current cold chain market Opportunities and challenges
1
4/28/2008
General information of China GDP Grew by 11.4% in 2007
11.40% 11.20% 11 00% 11.00% 10.80% 10.60% 10.40% 10.20% 10.00% 9.80% 9.60% 9.40% 9.20%
2003
2004 2005 2006 GDP growth rate
2007
CPI
Exchange Rate
Increased by 4.8%
Increased by over 16%
Source: USDA
General information of China
Regional Market YangZi Delta Area ( Shanghai ) Pearl Delta Area ( Guangdong ) North China ( Shandong ) West China ( Chengdu )
2
4/28/2008
35 30 25 20 15 10 5 0
Total Chinese Agricultural Imports
20 01 20 02 20 03 20 04 20 05 20 06
Billion USD
China’s Agricultural Imports & Exports 2001 - 2006 ($Billion)
Year
Import & Export of the Agricultural Products Chi na I mpor t s of Agr i cul t r al , Fi sh pr oduct s f r om t he U. S ( I n t housands of dol l ar s)) Calendar Years (Jan-Dec)
Product 2003
2004
2005
2006
2007
Agricultral, Fish Product Total
5,192,926
5,800,164
5,584,010
7,151,203
8,846,545
Fish & Seafood Products, Edible
176,242
257,719
350,831
440,082
532,688
Poultry Meat
72,254
12,287
82,392
183,170
347,478
Dairy Products
38,864
59,183
61,599
116,277
152,928
Red meats, fresh/chilled/frozen
46,593
57,329
71,341
49,503
142,771
Processed Fruits & Vegetables
59,193
68,687
62,851
86,063
101,635
3
4/28/2008
Import & Export of the Agricultural Products Chi na Expor t s of Agr i cul t r al , Fi sh pr oduct s t o t he U. S ( I n t housands of dol l ar s) Calendar Years (Jan-Dec)
Product 2003
2004
2005
2006
2007
Agricultral, Fish Product Total
2,431,994
2,852,339
3,312,927
4,186,908
4,918,257
Fish & Seafood Products, Edible
1,144,395
1,237,190
1,441,098
1,922,122
1,999,956
Processed Fruits & Vegetables
313 668 313,668
382 923 382,923
452 941 452,941
554 924 554,924
718 178 718,178
Fresh Vegetables
38,780
60,536
69,940
91,818
120,928
Red meats, fresh/chilled/frozen
6,179
7,877
10,176
11,552
2,191
Food Production The production of the perishable food in China reached nearly 700 Million tons, the consumption accounts for around 240 million tons tons. 80 80 70 60 50 40 30 20 10 0
Volumn In Million Tons
44
8.5 Meat
Fishery
Frozen food(Readyto-eat)
13.73 2 Dairy
Ice cream
4
4/28/2008
Frozen Food Consumption • Less than 10 kg per person
• Annual increasing rate : ≈10%
Current cold chain market ---Cold Storage Cold storage
5
4/28/2008
Current Cold Chain Market
Shanghai Twenty First Century Cold Storage
Current cold chain market ---Cold Storage Cold storage
6
4/28/2008
Current cold chain market ---Cold Storage Capacity • 9 million- 10 million Tons • Or over 30 million Cubit Meters • Around 50% estimated as the PRW
Refrigerated Transportation In China, the overall knowledge of cold chain logistic is weak, especially in small companies. Many food enterprises are poor in cold chain practice. Many of them have not fully executed cold chain process, are ignoring product quality matter in its delivery or are lack of sufficient and up-to-date implementation.
Other than that, there are very few third party logistics companies in the country that are able to provide optimized cold chain management solutions. Most of the time, the services provided by these companies are too expensive to be accepted by food companies.
7
4/28/2008
Refrigerated Transportation 30,000 Trucks
＞
99 9% 99.9%
Increase at 3000~4000 per year
100 T Trailers il
＜
1%
Increase at 100~150 per year
Current cold chain market ---Standard • China is falling short of establishing compulsory national, trade and local standards on cold chain industry.
Shanghai (DB31/T388-2007)
• New Local Standard Beijing j g
• Trade Standard ( New Cold Storage Design Standard)
8
4/28/2008
Opportunities and challenges • Price Driven • Weak Market Monitoring System • Higher Investment
Opportunities and challenges International Level of Cold Chain Service Providers are Demanded • Export & Import –oriented Agricultural Products • Multi-national Food Processors • International Food Service Provider
9
4/28/2008
Opportunities and challenges New Players • Eimskip Qingdao • Swire Guangzhou • • Preferred Freezer Shanghai
China office are there to help :
Mabel Zhuang China Representative Tel: 86 21 65216751 M.P: 13331836502 g@g g Email: [email protected]
2008 IARW-WFLO-IRTA Annual Convention & Expo
10
Cold Chain Opportunities in China
2008 IARW-WFLO-IRTA Annual Convention & Expo
Outline General information of China Import & Export of the Agricultural Products Food production Current cold chain market Opportunities and challenges
1
4/28/2008
General information of China GDP Grew by 11.4% in 2007
11.40% 11.20% 11 00% 11.00% 10.80% 10.60% 10.40% 10.20% 10.00% 9.80% 9.60% 9.40% 9.20%
2003
2004 2005 2006 GDP growth rate
2007
CPI
Exchange Rate
Increased by 4.8%
Increased by over 16%
Source: USDA
General information of China
Regional Market YangZi Delta Area ( Shanghai ) Pearl Delta Area ( Guangdong ) North China ( Shandong ) West China ( Chengdu )
2
4/28/2008
35 30 25 20 15 10 5 0
Total Chinese Agricultural Imports
20 01 20 02 20 03 20 04 20 05 20 06
Billion USD
China’s Agricultural Imports & Exports 2001 - 2006 ($Billion)
Year
Import & Export of the Agricultural Products Chi na I mpor t s of Agr i cul t r al , Fi sh pr oduct s f r om t he U. S ( I n t housands of dol l ar s)) Calendar Years (Jan-Dec)
Product 2003
2004
2005
2006
2007
Agricultral, Fish Product Total
5,192,926
5,800,164
5,584,010
7,151,203
8,846,545
Fish & Seafood Products, Edible
176,242
257,719
350,831
440,082
532,688
Poultry Meat
72,254
12,287
82,392
183,170
347,478
Dairy Products
38,864
59,183
61,599
116,277
152,928
Red meats, fresh/chilled/frozen
46,593
57,329
71,341
49,503
142,771
Processed Fruits & Vegetables
59,193
68,687
62,851
86,063
101,635
3
4/28/2008
Import & Export of the Agricultural Products Chi na Expor t s of Agr i cul t r al , Fi sh pr oduct s t o t he U. S ( I n t housands of dol l ar s) Calendar Years (Jan-Dec)
Product 2003
2004
2005
2006
2007
Agricultral, Fish Product Total
2,431,994
2,852,339
3,312,927
4,186,908
4,918,257
Fish & Seafood Products, Edible
1,144,395
1,237,190
1,441,098
1,922,122
1,999,956
Processed Fruits & Vegetables
313 668 313,668
382 923 382,923
452 941 452,941
554 924 554,924
718 178 718,178
Fresh Vegetables
38,780
60,536
69,940
91,818
120,928
Red meats, fresh/chilled/frozen
6,179
7,877
10,176
11,552
2,191
Food Production The production of the perishable food in China reached nearly 700 Million tons, the consumption accounts for around 240 million tons tons. 80 80 70 60 50 40 30 20 10 0
Volumn In Million Tons
44
8.5 Meat
Fishery
Frozen food(Readyto-eat)
13.73 2 Dairy
Ice cream
4
4/28/2008
Frozen Food Consumption • Less than 10 kg per person
• Annual increasing rate : ≈10%
Current cold chain market ---Cold Storage Cold storage
5
4/28/2008
Current Cold Chain Market
Shanghai Twenty First Century Cold Storage
Current cold chain market ---Cold Storage Cold storage
6
4/28/2008
Current cold chain market ---Cold Storage Capacity • 9 million- 10 million Tons • Or over 30 million Cubit Meters • Around 50% estimated as the PRW
Refrigerated Transportation In China, the overall knowledge of cold chain logistic is weak, especially in small companies. Many food enterprises are poor in cold chain practice. Many of them have not fully executed cold chain process, are ignoring product quality matter in its delivery or are lack of sufficient and up-to-date implementation.
Other than that, there are very few third party logistics companies in the country that are able to provide optimized cold chain management solutions. Most of the time, the services provided by these companies are too expensive to be accepted by food companies.
7
4/28/2008
Refrigerated Transportation 30,000 Trucks
＞
99 9% 99.9%
Increase at 3000~4000 per year
100 T Trailers il
＜
1%
Increase at 100~150 per year
Current cold chain market ---Standard • China is falling short of establishing compulsory national, trade and local standards on cold chain industry.
Shanghai (DB31/T388-2007)
• New Local Standard Beijing j g
• Trade Standard ( New Cold Storage Design Standard)
8
4/28/2008
Opportunities and challenges • Price Driven • Weak Market Monitoring System • Higher Investment
Opportunities and challenges International Level of Cold Chain Service Providers are Demanded • Export & Import –oriented Agricultural Products • Multi-national Food Processors • International Food Service Provider
9
4/28/2008
Opportunities and challenges New Players • Eimskip Qingdao • Swire Guangzhou • • Preferred Freezer Shanghai
China office are there to help :
Mabel Zhuang China Representative Tel: 86 21 65216751 M.P: 13331836502 g@g g Email: [email protected]
2008 IARW-WFLO-IRTA Annual Convention & Expo
10
