On the 17th of March, the fourth PMA Fresh Connections China, the annual forum organised by the Produce Marketing Association (PMA), took place in Shanghai. The PMA, as part of the programme, staged a number of lectures by prominent members of the industry. These lectures highlighted current trends and opportunities on the Chinese fresh produce market. Below are some of the key takeaways listed, as well as an outlook on this year’s upcoming PMA events.
PMA in China
Richard Owen, vice-president of the PMA, explains: “Fresh Connections is one of our key events in China, this being our fourth one so far. The PMA has members in over 40 countries worldwide. It is exciting to connect our members to such promising emerging markets as China. Throughout the year, we publish case studies and intelligence reports about the Chinese market and create help-directories on issues such as how to export fresh produce to China or how to understand the emerging E-commerce and retail structures. We also organise small trading sessions to connect buyers to suppliers and vice versa. From a broader stand point, we are always looking for local partnerships that serve our mission.”
“We are a resource for the global industry, whether in Mexico, Chile, South Africa or the United States. We help our members make connections and understand global supply and demand. Worldwide, we focus on informing our members with the latest insights in the fresh produce industry... We help demonstrate best practises, including food safety, cold chain and phytosanitary market access practises. This way, we provide value for our members and the broader industry all year round.”
China: growing imports, consolidating retail and widening market access
Mabel Zhuang, the PMA representative in China, outlined that the Chinese import market has continued to grow from 3.4 million tons in 2014 to 3.8 million tons in 2015. Its total value now accounts for 5 billion USD. Biggest suppliers in 2015, in terms of value, are Thailand, Chile and Vietnam. Fast growing export countries are New Zealand, Ecuador and Peru. The market is progressively opening to foreign companies and international partnerships are formed. Zespri has recently opened a flagship store in Beijing. The announcement of the joint-venture between Mission Produce, and Chinese Lantao and Pagoda is another example of extended international cooperation.
Whilst imports have been growing, domestic fruit production is going through a transformation process. Increased production volumes have led to a gradual decline of apple and pear prices, two of China’s biggest fruit crops. There is movement on the retail market, which is going through a process of consolidation. In 2015, the market witnessed the merger of Joyvio with Golden Wing Mau, which created the largest fruit distributors in the country. In addition, Pagoda, an upmarket fruit retailer, merged with Guoduomei. The E-commerce market is vibrant and saw a number of investments. Online fruit retailer Fruitday had a major investment by JD.com, Amazon launched its own fresh channel, and the Alibaba Group invested in online retailer Yiguo.com.
Recently, the New Zealand kiwiberry has been removed from the list of allowed import products by the Chinese AQSIQ. The general trend, however, has been the opposite. In 2015, the total number of countries that have received access to the Chinese market increased from 35 to 39. Exciting newcomers are Peruvian avocados, South African apples and Canadian blueberries. In addition, there are no more varietal restrictions in place on US apples. There have also been attempts to speed up the quarantine and inspection process. A number of import ports have managed to decrease time needed to finish the procedures and investments have been made to facilitate the inspection of goods that are still being shipped.
Upcoming PMA events
“On the 11th of May, the PMA will hold the Fresh Connections Mexico forum in Guanajuato, Mexico. Another key event is the PMA Fresh Summit Convention & Expo in Orlando, Florida, taking place on the 14, 15 and 16th of October this year. The Fresh Summit is both a conference and expo, and it is an opportunity for buyers to source products from around the world. We will host over 21,000 attendees from 63 countries, including a number of delegates from China. Finally, in 2017, the PMA will organise another Fresh Connections China. This will again take place in Shanghai around the middle of March,” concludes Richard Owen.
