Friday, June 22, 2012 by Lee Mannering
Opportunities in China explored during PMA seminar
In April, PMA held “Brazil and the World: A Fresh Perspective,” our first industry networking event in Sao Paulo at the headquarters of APAS (the supermarket association of the state of Sao Paulo). During this event, industry leaders learned about business opportunities and challenges in the global produce industry. One of the sessions focused on opportunities for fresh produce in China. Highlights from that session included:
- China’s emerging and growing middle class is shopping more at modern retail and demanding quality and variety. They prefer imported products and will drive demand for products which have clean, healthy and upmarket ‘image.’
- Food safety is an important issue (especially for processed food products) although less so for fresh produce.
- China is constrained by limited arable land which may contribute to higher costs in the future.
- China’s labor intensive agricultural model will be affected by rising labor costs and migrating workers although slight reversal in the near term due to closures of export-oriented factories.
- For exports into China, expect very high quality demands, uniformity of pack sizes, large fruit/berry size, color-specific, and taste/brix requirements.
- Produce sales are moving away from wet markets, with supermarkets gradually becoming the main fruit sales channel. Also, China’s fruit market is changing to be more centralized.
- To initiate trade with China, it is best to start in Guangzhou, Shenzhen, Shanghai, and Beijing, and then move to Nanjing, Hangzhou, Shenyang, Changsha, Chengdu, and Chongqing.
To view other presentations from this event, visit the PMA website. You can also join the Global Trade Community on PMA Xchange. Also, to help our members better understand emerging opportunities in China, we have hired an in-country consultant who has detailed knowledge of the Chinese produce supply chain as part of USDA’s Foreign Agricultural Service office in Shanghai.
Tags: Global Trade