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Aug 05, 2020

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Page 1: Join the Conversation on Twitter: #FreshConnections/media/pma-files/fc-southern-africa/... · PRODUCE MARKETING ASSOCIATION. Global Trade Flow Shift – Past 10 Years. Significant

PRODUCE MARKETING ASSOCIATION

Join the Conversation on Twitter:#FreshConnections

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PRODUCE MARKETING ASSOCIATION

The Next Frontier: Exploring New Opportunities in China

Richard Owen, Produce Marketing

Association

Fresh Connections:Southern Africa Conference & Expo

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PRODUCE MARKETING ASSOCIATION

What to expect from this session:

• Snapshot of the vast China market• ‘Size of the Prize’• Import opportunities • E-commerce growth

• Perspective of South African companies working in the Chinese market• Jason Bosch, Origin Direct Asia• Cecilia Landman, The X-Group

• Panel discussion

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PRODUCE MARKETING ASSOCIATION

Global Trade Flow Shift – Past 10 YearsSignificant growth 2011-2015

Growth in trade is toward Eastern Hemisphere

2005 Flows

Source: International Trade Centre (ITC) 2005-2015

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PRODUCE MARKETING ASSOCIATION

Top Fresh Produce Markets & Share of Imports

U.S.+0%

EU-8%

China+5%

Southeast Asia+1%

Japan- 1%

Russia+1%Canada

+0%

Source: FAOSTATS Fruits and Vegetables 2004-2013

Global fresh produce imports (US$ 121B) averaged +4% growth annually last 10 years

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PRODUCE MARKETING ASSOCIATION

Fresh Produce Consumption Growth by Region 2016-2020

(As percentage of world growth)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

Asia Pacific MiddleEast and

Africa

WesternEurope

LatinAmerica

EasternEurope

NorthAmerica

Australasia

2015 Fresh Produce Consumption 2016-2020 Forecasted CAGR

Asia Pacific and Middle East & Africa are growing consumption regions

Source: Euromonitor International

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PRODUCE MARKETING ASSOCIATION

Regional Share of International Trade Now…and in 2050

2016 2050

Source: Oxford Economics

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PRODUCE MARKETING ASSOCIATION

Fruit Imports by Country (million USD)

0 400 800 1200

Australia

South Africa

Peru

Ecuador

New Zealand

USA

Philippines

Vietnam

Chile

Thailand

Mainland China

201520142013

Source: China Customs

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PRODUCE MARKETING ASSOCIATION

Total Fruit Imports: Mainland and HK

2.7

1.5

3.4

1.6

3.8

1.6

China Hong Kong

Volume (million tons)2013 2014 2015

3.4

1.7

4.3

2.2

5

2.2

China Hong Kong

Value (billion USD)2013 2014 2015

Source: China Customs, HK Customs

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PRODUCE MARKETING ASSOCIATION

Mainland Top 10 Fruit Imports by Value

Bananas21%

Cherries18%

Grapes16%

Durians16%

Kiwi7%

Guavas, Mangoes,

Mangosteens7%

Oranges5%

Apples4%

Plums, Prune Plums, Sloes

3%

Pineapples3%

Source: China Customs

Share change comparedto 2014

Cherries: +1.85%Guava/Mango/Mangosteen: +1.58%Plum/Prune: +1.26%Kiwi: +1.19%Orange: +1.12%Pineapple: +0.81%Grape: -2.81%Durian: -3.01%Banana: -4.11%

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PRODUCE MARKETING ASSOCIATION

Growth Leaders (million USD)

Fruit 2014 2015 GrowthRaspberries, Blackberries,Mulberries, Loganberries 0.02 0.6 2888.0%

Avocados 11.9 45.1 279.7%

Apples 46.4 146.7 216.6%

Plums, Prune Plums, Sloes 51.8 105.2 103.2%

Blueberries 40.8 68.1 66.9%

Pineapples 58.2 96.2 65.3%

Oranges 108.8 165.3 52.0%

Guavas, Mangoes, Mangosteens 177.2 260.2 46.8%

Kiwifruit 195.4 266.6 36.4%Source: China Customs

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PRODUCE MARKETING ASSOCIATION

Growth of Fresh E-commerce in China

91 Billion RMB/183 Billion

Rand

Source: Produce Report

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PRODUCE MARKETING ASSOCIATION

Why you cannot afford NOT to be in China

Cecilia Landman – The X Group

August 24, 2016

Fresh Connections:Southern Africa

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PRODUCE MARKETING ASSOCIATION

Why you cannot afford NOT to be in China!• Information about the size of the market, GDP• China’s own production & World production• SA Citrus industry information• Information shared will be mainly based on citrus

Some market information and lessons learned• Market Segments• Quality• Branding

Points of discussion

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PRODUCE MARKETING ASSOCIATION

World population & Growth Rate& % of world population

Source: Worldbank.org

Canada33.990 0.9%

0.45%

Russia146.300

0.2%1.92%

United States321.570

0.8%4.35%

EU Area509.472

0.2%6.84%

Africa1.2 Billion

2.3%16.12% India

1.254 Billion1.2%

17.85%

China1.371 Billion

0.5%18.58%

South America422.5340.98%5.68%

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PRODUCE MARKETING ASSOCIATION

GDP Growth Rate: Annual % 2005 - 2015

Source: Worldbank.org

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Euro Area China India Russia

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PRODUCE MARKETING ASSOCIATION

GDP Growth Rate: Per Capita

-10

-5

0

5

10

15

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GDP Per Capita Growth Rate % 2005 – 2015

United States Euro Area China India Russia

Source: worldbank.org

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PRODUCE MARKETING ASSOCIATION

GDP per Capita

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015United States 44,307.83 46,437.11 48,061.42 48,401.49 47,001.43 48,377.39 49,803.49 51,495.87 53,041.98 50,662.40 51,486.00Euro Area 30,000.00 37,862.53 38,817.88 38,812.75 36,930.11 37,604.27 38,113.52 37,865.26 37,454.89 37,806.28 38,341.20China 1,731.13 2,069.34 2,651.26 3,772.88 3,748.50 4,433.34 5,447.31 6,092.78 6,807.43 6,032.61 6,416.18India 740.11 830.16 1,068.68 1,193.21 1,147.24 1,417.07 1,539.61 1,503.00 1,498.87 1,698.93 1,805.57Russia 5,338.41 9,687.50 10,532.34 11,089.94 10,219.53 10,675.00 11,121.52 11,493.41 11,615.71 11,490.87 11,038.82

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

Source: tradingeconomics.com.

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) – Oranges

Source: Production, Trade and Regulation Statistics: Fruit

19,8

11.0

0

11,8

48.5

0

8,07

8.50

4,57

1.00

4,07

9.70

2,81

8.90

2,57

7.70

2,46

9.90

1,81

8.90

1,73

0.10

1,49

5.30

33.3

0

310.

90

752.

00

28.0

0

16.5

0 1,52

6.60

1,04

2.30

135.

40

0.00 36

6.30

975.

50

B R AZ I L C H I N A U N I TE D S TATE S

I N D I A M E X I C O S P AI N E G YP T I TAL Y I N D O N E S I A TU R K E Y S O U TH AF R I C A

Production Exports

0.17% 2.62% 9.31% 0.61% 0.40% 54.16% 40.44% 5.48% 0.00% 21.17% 65.24%

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) -Grapefruit

Source: Production, Trade and Regulation Statistics: Fruits

7,13

8.90

1,14

6.70

415.

50

397.

30

305.

00

219.

00

196.

00

189.

20

184.

30

183.

70

306.

10

225.

70

214.

80

17.0

0

13.4

0

158.

10

0.80

10.2

0

0.00 59.6

0

C H I N A U N I TE D S TATE S

S O U TH AF R I C A

M E X I C O TH AI L I AN D TU R K E Y I N D I A AR G E N TI N A S U D AN I S R AE L

Production Exports

4.29% 19.68% 51.70% 4.28% 4.39% 72.19% 0.41% 5.39% 0.00% 32.44%

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) – Lemon & Limes

4,61

3.80

2,14

7.70

2,10

8.00

1,22

8.70

1,12

6.70

834.

60

790.

20

736.

20

560.

10

483.

10

260.

10

27.5

0 469.

70

24.7

0

255.

10

66.5

0

111.

00 487.

00

480.

80

33.4

0

41.4

0

165.

00

C H I N A M E X I C O I N D I A AR G E N TI N A B R AZ I L U N I TE D S TATE S

TU R K E Y S P AI N I R AN I TAL Y S O U TH AF R I C A

Production Exports

Source: Production, Trade and Regulation Statistics: Fruits

63.44%20.76% 5.9% 13.3% 65.31%

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) -Tangerines

25,1

61.0

0

2,11

7.10

1,00

4.70

928.

20

872.

30

863.

50

848.

10

800.

00

753.

00

680.

50

148.

602,14

5.00

1,59

0.30

0.90

2.60 47

0.90

112.

90

16.1

0

7.40 34

8.50

2.90

107.

80

C H I N A S P AI N B R AZ I L J AP AN TU R K E Y I TAL Y E G YP T I R AN M O R O C C O K O R E A S O U TH AF R I C A

Production Exports

Source: Production, Trade and Regulation Statistics: Fruits

8.53% 75.12% 0.9% 0.28% 53.98% 13.07% 1.9% 0.93% 46.28% 0.43% 72.54%

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) - Apples

Source: Production, Trade and Regulation Statistics: Fruits

71,9

71.7

0

4,27

5.10

2,89

1.00

2,68

0.10

2,49

3.10

2,41

1.20

1,85

7.30

1,84

3.00

1,58

8.30

1,33

9.00

781.

10

3,14

1.10

833.

20

25.7

0

87.3

0

532.

10

976.

10

726.

60

132.

70

801.

20

48.7

0

333.

40

C H I N A U N I TE S S TATE S

I N D I A TU R K E Y P O L AN D I TAL Y F R AN C E I R AN C H I L E B R AZ I L S O U TH AF R I C A

Production Exports

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) - Pears

Source: Production, Trade and Regulation Statistics: Fruits

31,7

40.0

0

926.

50

876.

10

691.

30

502.

40

386.

40

350.

50

334.

80

312.

80

290.

50

1,18

3.30

162.

80

178.

20

472.

40

133.

10

8.50 181.

60

1.30

0.60

18.0

0

C H I N A I TAL Y U N I TE D S TATE S

AR G E N TI N A S P AI N TU R K E Y S O U TH AF R I C A

I N D I A J AP AN K O R E A

Production Exports

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) - Grapes18

,241

.30

7,44

4.90

6,75

6.40

6,58

8.90

5,80

9.00

4,29

6.40

3,14

9.40

2,89

0.00

2,11

2.70

1,71

5.70

1,68

3.90

431.

40

498.

10

416.

30

16.2

0

140.

60

239.

60

853.

30

57.1

0

9.80

29.9

0

248.

10

C H I N A I TAL Y U N I TE D S TATE S

F R AN C E S P AI N TU R K E Y C H I L E AR G E N TI N A I R AN AU S TR AL I A S O U TH AF R I C A

Production Exports

Source: Production, Trade and Regulation Statistics: Fruits

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PRODUCE MARKETING ASSOCIATION

World Production/Exports (Volume) –Avocados

1,26

4.10

295.

10

276.

00

238.

50

217.

00

215.

10

212.

90

201.

50

160.

40

156.

20

75.7

0

347.

20

19.9

0

0.10 17

.90

0.00

0.10

81.4

0

0.00

3.30

102.

80

30.3

0

M E X I C O D O M I N I C AN R E P

I N D O N E S I A U N I TE D S TATE S

C H I N A C O L O M B I A P E R U K E N Y A B R AZ I L C H I L E S O U TH AF R I C A

Production Exports

Source: Production, Trade and Regulation Statistics: Fruits

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PRODUCE MARKETING ASSOCIATION

Global Fruit Import Trends

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PRODUCE MARKETING ASSOCIATION

Global Fruit Import Trends

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PRODUCE MARKETING ASSOCIATION

Why you cannot afford NOT to be in China• 18% of the world population• One of the highest growth in GDP• Fast Growing Middle & Affluent class• One of the biggest fruit producing countries in the world• The more developed a country is – the bigger the

requirement for year around supply of a product • China is Northern Hemisphere – South Africa Southern

Hemisphere.• South Africa is the biggest Southern Hemisphere

exporter of citrus.

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PRODUCE MARKETING ASSOCIATION

Top Citrus producing/exporting countries Southern Hemisphere - Grapefruit

415.50

189.20

214.80

10.200.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

South Africa ArgentinaProduction Exports

Source: Production, Trade and regulation Statistics

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PRODUCE MARKETING ASSOCIATION

Top Citrus producing/exporting countries Southern Hemisphere - Tangerines

1,00

4.70

148.

60

0.90

107.

80

BRAZIL SOUTH AFRICA

Production Exports

Source: Production, Trade and Regulation Statistics

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PRODUCE MARKETING ASSOCIATION

Top Citrus producing/exporting countries Southern Hemisphere – Lemon & Limes

1,22

8.70

1,12

6.70

260.

10

255.

10

66.5

0 165.

00

ARGENTINA BRAZIL SOUTH AFRICA

Production Exports

Source: Production, Trade and Regulation Statistics

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PRODUCE MARKETING ASSOCIATION

Top Citrus producing/exporting countries Southern Hemisphere - Oranges

19,8

11.0

0

1,81

8.90

1,49

5.30

33.3

0

0.00 97

5.50

BRAZIL INDONESIA SOUTH AFRICA

Production Exports

Source: Production, Trade and Regulation Statistics

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PRODUCE MARKETING ASSOCIATION

Southern Hemisphere Citrus export volumes

331 200 tons 205 800 tons 204 700 tons 117 000 tons 97 700 tons

1 770 000 tons

Source: Global Fruit Trends

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PRODUCE MARKETING ASSOCIATION

SA Industry Grapefruit 2012 - 201611

0,20

7

655,

372

927,

795

1,01

6,32

2

662,

303

307,

603

336,

876

268,

669

447,

813

405,

131

417,

810

992,

248

1,19

6,46

4

1,46

4,13

5

1,06

7,43

4

2 012 2013 2014 2015 2016

China Hong Kong China and Hong Kong

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PRODUCE MARKETING ASSOCIATION

SA Industry Oranges 2012 – 201612

5552

2 1842

650 24

9601

1

2272

714

2040

460

2,39

7,17

2

1,25

0,82

3

2,01

0,29

4

2,98

8,26

9

3,06

1,71

5 3,65

2,69

4

3,09

3,47

3

4,50

6,30

5

5,26

0,98

3

5,10

2,17

5

2 012 2013 2014 2015 2016

China Hong Kong China and Hong Kong

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PRODUCE MARKETING ASSOCIATION

SA Industry – Lemons 2012 - 20169,

200

15,8

30

40,6

40

30,9

46

31,1

20

731,

656

567,

853

1,95

7,68

8

1,26

4,47

9

949,

016

740,

856

583,

683

1,99

8,32

8

1,29

5,42

5

980,

136

2 012 2013 2014 2015 2016

China Hong Kong China and Hong Kong

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PRODUCE MARKETING ASSOCIATION

About the market:• If you think about China don’t think about it as a single

market segment like you do for e.g. with Middle East or Europe

• There is a distinct difference with regards to quality and sizes – whole sale vs retail vs supermarkets• Different regions in the market requires different fruit sizes

for eg. • Southern area (Guangzhou) all sizes, because the sell

everywhere. Guangzhou is also the biggest and oldest market• Eastern area (Shanghai) Small and middle size• Northern area (Beijing) Middle and big sizes• Western area – Big sizes

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PRODUCE MARKETING ASSOCIATION

Most Dominant supermarkets in China

Source: ibisworld.com

2. Carrefour

1. Lianhua Supermarket

3. Lotte Mart

4. Lotus

6.Tesco

5. Vanguard

7. Sam's Club

8. Pagoda

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Current Reality• In Europe a lot of consolidation has taken place the last 5 – 8

years vs CN relatively new market still a lot of new players entering the market.

• Europe medium quality spec – China high end

Biggest Changes in the last 5 years:• Less and less fruit going through the grey channel via Hong

Kong• The use of Storage Facilities of fruit – to reduce the impact of

high volumes that arrive in the market

Changes in the future:• Impact of E-commerce

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About Quality • Visit the market that you can understand your client and your clients – client

requirements• Don’t judge a book by its cover – Jiangnan Market

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About Quality

The most important factor is QUALITY – especially if you selling on the wholesale markets

• Substandard product draws the market down and you WILL get penalized• A market like Europe adjust easier to changes in quality due to differences in

season – China notFor citrus the most important quality factors are:

• Taste• Color• Firmness • Skin texture• Heavy pack• CONSISTENCY

Be cautious with new varieties

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About branding• Chinese people are superstitious – color, numbers,

symbols means something make sure you know the meanings

• Chinese people must be able to pronounce your brand• Animals on packaging make it easier to recognized• Consider colour of packing

• Red - lucky, happiness, beauty, success and good fortune• Yellow - royalty and power• Green - money

• Lucky numbers – 8 – prosperity, wealth, success and social status, even numbers also better, 6 success and 2 harmony

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Changes in packaging

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If you want to be successful• Grow specifically for the market • Pack for the market• Plan your logistics carefully and in detail – challenges

with cold steri protocol• Monitor market and SA shipping info closely• Understand the cost chain• Be aware of important festivals like Mid Autumn Festival,

National Day, Chinese New Year• Know upfront how you are going to handle a quality

problem• Remember a good Chinese importer will never loose

money

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Aspects to keep in mind for the future• SA can not afford to NOT focus on China and we HAVE

to grow • The Grey channel is no longer an option• Supermarkets are starting to request phytos• Global Gap will soon be a reality• Negotiating of sustainable protocols are critical• Negotiating of competitive tariff structures are critical –

Chile is brilliant • Learn from countries like Chile

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Aspects to keep in mind for the future• Be 100% clear on

• Where you want to play • Keep in mind E-commerce is a reality

• With whom you want to play• What they can offer – clients, cold chain management, infrastructure• Their strategic position – market segments

• How you going to play• Fixed, MG’s• Spot market opportunity taker or long term brand building• Who will take what risks

• What you need to do to win

This is why you and SA cannot afford NOT to be in China!

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Let all of us do our part – and enjoy the exciting journey!

Success and Growth

in China

GrowerGrow for ChinaPack for China

ConsistencyUnderstand the dynamics of the market

ExporterClarity on where to play & How to play in this

segmentBranding and packaging

Focused and Hands on logisticsRisk management – Steri failues & market

fluctuations

Industry & GovernmentCompetitive trade agreements

Realistic protocols – achievableIndustry facilities

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Let’s take hands and Win together!

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The Next Frontier: Exploring New Opportunities in China

18 August 2016

Fresh Connections:Southern Africa

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Fruit supply into the Chinese market

Jason BoschOrigin Direct Asia

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After your first week in China you feel like you can write a book.

After your first month in China you feel like you can write an article.

After you first year in China you are more confused than the day that you arrived and don’t dare to try and write anything.

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China must feed a fifth of the world’s population with about 7% of its arable land, according to the UN’s food and agriculture organisation, and nearly half of that land has been “degraded” by decades of unchecked development. “It’s a zero-sum game, you have less and less resources, but more and more people who need them.”

What we see

What we read and hear

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With forecast 32 percent average annual growth, online shopping expenditures in China are set to reach 3.3 trillion yuan ($539 billion)

Shoppers spent nearly US$10bn in the first 10 hours of Chinese e-commerce giant Alibaba’s “singles day” event, almost 15 million users logged onto T-Mall in the first 60 seconds of sale and 213 mill logged on for the first day.

The compound annual growth rate for B2C platforms was 160 percent from 2009 to 2012, and the sector is expected to continue growing by 53 percent annually.

Jack Ma, founder of Alibaba, was recently quoted as saying: “in other countries, e-commerce is a way to shop, in China it is a lifestyle”. “No matter how you slice the numbers, trends or forecasts, it’s clear that e-commerce is booming in China”.

China's fruit imports in 2014 up 23%According to information supplied by China's customs authority, Chinese fruit imports increased by 26.2% in terms of value compared to 2013, while the volume grew by 22.8%, reaching 3.3 million tonnes.

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ZAR vs USD 2 performance

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A look our industry in the China market

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South African grapefruit volumes to China and HK

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South African orange volumes to China and HK

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China’s economy expanded by 7.4% in 2014 and 6.9% in 2015, its slowest rate in a quarter-century and below the government’s growth target, although this still sounds very positive China's economy is not in a good place, China's broad money growth — which includes physical currency, some sorts of deposits in banks, and some sorts of very liquid securities — has slowed to the point at which it is actually slower than that of the US.

Oxford Economics adds that China's M2 (a broad money measure) has risen about 2.5 percentage points faster than nominal GDP (which includes inflation) since 2010, so growth of 7% would suggest growth of about 4.5% nominal growth, even lower once inflation is stripped out.

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The total cost to the economy of the prohibition on government consumption and the chill on administrative spending is an estimated reduction in growth of at least 0.6% this year.But it could, the report argues, be as high as 1.5% which, by rough calculation, gives us the figure of about $135bn of lost economic activity.

Even honest officials, the report suggests, are now so terrified of starting new projects, for fear of being seen as corrupt, that they're simply keeping public funds in the bank.

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China produces half of worldwide vegetables and 30% of fruit!

China is not only the most populated country in the world but when it comes to production of fresh vegetables and fruit China is the worlds number 1! Of the estimated (commercial) production of fresh vegetables in the world, China produces half. Of all the fruits, China produces 30%. From this enormous amount, only a small portion is exported. Of 484 million tons of vegetables produced in 2012, only 4.4 million tons was exported. That's less than one percent. Of the 220 million tons of fruit produced in 2012 only a mere 3 million tons were exported abroad. Despite these figures China remains high on the list of exporters. With fresh vegetables China's export value is in fourth place and with fresh fruit export they are in 7th.

What we are failing to see

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We are not starving

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Australia’s cherry production is considerably smaller than major cherry exporting countries such as Chile, so Aussie exporters generally position their cherries as a premium product.“And such a brand image goes well with many Asian countries’ gift exchange traditions during cultural festivals.”For many Asian consumers, imported fruits are expected to be more expensive than their local peers and when there is too much availability they look for something new.

Many of those people who bought cherries in China did not purchase the fruit for themselves; they were bought as gifts for others. As we all know, in recent months, the Chinese government has become increasingly heavy-handed with its anti-corruption campaigns across the country. This definitely had an impact on the sales of fruit”

Cherries were a premium gift. But some sellers say even though cherry imports are at their height this year, they’re no longer the hot luxury fruit they were just last year.One major importer that has been in the imported fruit business for 25 years. Last Chinese New Year he did great business in cherries. But this year, he says, the market is flooded. "It’s like you want one bowl of rice a day and they give you 10, there’s no way you can eat it all and it starts to lose its appeal,"

Another factor contributing to the shortfall is the changing attitude among Chinese buyers toward higher-priced imported fruits. As they become increasingly familiar with foreign fruits and the volumes available increase, the imported fruits have begun to loose some of that exotic appeal. Instead, some Chinese consumers have reverted to buying local products with a lower price unless the quality is significantly better.

Comments in China from sellers and buyers

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China’s “Second tier cities”

This is a very broad term that we throw about, roughly 180 Chinese cities have over 1 million residents but only 4 of them have the title of “first tier” cities in terms of size and GDP and to a large extent this is due to their coastal location and access to port facilities.

These second tier cities have been the engines if China’s economy for many years and are key to growth in our industry, most of these 2nd tier cities are however located inland making them inaccessible to direct shipment and for this reason they are often unheard of and considered untapped “new markets” however in reality they are currently very active in consuming imported products.

Increased future growth in these cities is going to come as a result of improved logistical infrastructure in China and building relationships with sellers that are responsible for the physical sale of the fruit in these regions.

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How we tend to think….

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Reality…

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Solutions???

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Get an FTA in place to make South Africa competitive

The Chinese Government deems Free Trade Agreements (FTAs) as a newplatform to further opening up to the outside and speeding up domestic reforms,an effective approach to integrate into global economy and strengthen economiccooperation with other economies, as well as particularly an importantsupplement to the multilateral trading system. Currently, China has 19 FTAsunder construction, among which 14 Agreements have been signed andimplemented already.

China's Free Trade Agreements•China-ASEAN FTA•China-Pakistan FTA•China-Chile FTA•China-New Zealand FTA•China-Singapore FTA•China-Peru FTA•Mainland and Hong Kong Closer Economic and Partnership Arrangement•Mainland and Macau Closer Economic and Partnership Arrangement•China-Costa Rica FTA•China-Iceland FTA•China-Switzerland FTA•China-Korea FTA•China-Australia FTA

Free Trade Agreements under Negotiation•China-GCC(Gulf Cooperation Council) FTA•China-Norway FTA•China-Japan-Korea FTA•Regional Comprehensive Economic Partnership, RCEP•China-ASEAN FTA Upgrade Negotiations•China-Sri Lanka FTA•China-Maldives FTA•China-Georgia FTA

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Supply the correct fruit into the market according to their requirements:

Trying to force undesirable fruit onto a wholesale platform pulls down the market and damages the industry reputation. Forcing someone to take it will maybe work for a year or two but is this worth while at the jeopardy of your countries reputation.

There will never be a shortage of customers willing to take your fruit but there is a severe shortage of customers that will pay you for your fruit.

Know your clients back ground and intentions.

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Manage spikes in arrival volumes and spread the season longer and more evenly

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2016 Grapefruit shipment by port

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Manage Industry data released into the market

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Thank You

Dankie

Xie Xie