China

China’s Crackdown on Daigou, New Cross-Border e-Commerce Policies

China’s crackdown on daigou is part of its moves to strengthen e-commerce regulation and better control the rapidly expanding sector.

Cross-border e-commerce in China has grown steadily in recent years, on the back of strong consumer demand for premium brands and high-quality overseas products.

A significant amount of this shopping is done through the gray channel known in Chinese as ‘daigou’. Literally translated as ‘buy on behalf’, daigou refers to a consumer-to-consumer (C2C) relationship of intermediaries who purchase overseas goods for Chinese consumers for a fee.

iiMedia Research, a Chinese market consultancy, finds that China’s cross-border e-commerce generated RMB 7.6 trillion (US$1.1 trillion) in sales last year. By 2020, the market research firm eMarketer projects that a quarter of the Chinese population will be shopping online for overseas products via cross-border e-commerce websites.

Given this rapid growth and its unregulated nature, the Chinese government is now implementing policies to bring cross-border e-commerce under stricter control while supporting its growth.

China’s crackdown on daigou
From January 1, 2019, daigou merchants are obligated to register and pay taxes. The new law compels daigou merchants to obtain licenses and formally register as businesses. Otherwise, they will be subject to fines as high as RMB 2 million (US$291,620) for illegal business and tax evasion.

Chinese customs have reportedly doubled down on their inspections of daigou merchants at airports, and some have been imprisoned for tax evasion.

By coming down heavily on daigou merchants, the Chinese government aims to collect more taxes from cross-border e-commerce imports. In the past, most daigou merchants declared their imports as personal items to avoid taxes.

Some estimate the daigou practice to be worth tens of billions of dollars a year, meaning that authorities lose tremendous tax revenue on these transactions.

Foreign retailers will also benefit from China’s crackdown on daigou. Before, purchasing through daigou merchants helped consumers save on import duties, giving them an advantage over traditional e-retailers.

With the crackdown, daigou purchases will become pricier, meaning that products sold by foreign retailers will become more competitive for Chinese consumers.

New cross-border e-commerce policies
In late November, the State Council released new policies promoting cross-border e-commerce, which came into effect on January 1, 2019.

According to the policies, China’s Ministry of Finance will add 63 categories of products to the list of goods that are duty-free when purchased via cross-border e-commerce platforms, including popular consumer goods like electronics, small home appliances, food, and healthcare products.

With the new policy, the list of duty-free cross-border e-commerce products covers 1,321 items in total.

Further, the tax-free quota on single transactions will increase by 150 percent from RMB 2,000 (US$291.62) to RMB 5,000 (US$729.05). Consumers buying high-value products shall benefit more from the higher single transaction limit.

China will also loosen the annual quota of individual consumers on cross-border e-commerce to RMB 26,000 (US$3,791.06), up from RMB 20,000 (US$2,916.20) previously. The ministry will increase the annual quota as income grows in the future.

Additionally, China will extend cross-border e-commerce pilot zones to 22 more cities, including Beijing, Nanjing, and Shenyang, bringing the total to 35 cities. Cross-border e-commerce companies enjoy easier customs procedures and supportive policies in these zones.

Implications for China’s e-commerce industry
China’s crackdown on daigou is unlikely to have a significant impact on total cross-border e-commerce consumption.

The new policy initiatives only serve to tighten the tax gap between cross-border platforms and daigou, making the difference in prices between imported goods from cross-border e-commerce platforms and daigou insignificant.

Cross-border e-commerce platforms are the main beneficiary under China’s new policies. Chinese consumers maintain high demand for imported goods that cannot be found on the domestic market. The crackdown on daigou will divert this consumption towards legitimate channels, such as Alibaba’s Tmall Global and NetEase’s Kaola. In the long term, these measures will expand the scale and reach of Chinese e-commerce platforms.

Moreover, consumers in China will benefit from the credibility and authenticity of retailers and their products on cross-border e-commerce platforms due to stricter management, compared to daigou sellers.

Overseas retailers are also likely to welcome China’s push for regulation of daigou.

Products sold by daigou have generally evaded import taxes, which put them at a competitive advantage over legitimate sellers that paid taxes on their products. Given the online commerce push by major foreign retailers like Sainsbury and Walmart, the transparency in regulation is a positive development.

On their part, daigou merchants will adopt a wait-and-see attitude toward China’s new e-commerce policies. Most of them will likely take a break from daigou activities in the short term and see whether authorities continue to enforce the new policies.

Combined with the new e-Commerce Law, which also took effect on January 1, China is aiming to improve oversight and regulation of its e-commerce market.

Those selling via legitimate cross-border e-commerce channels in China will benefit from expanded preferential policies and support against gray-area competitors and counterfeiters.

 

Source: https://www.china-briefing.com

Written byFrank Ka-Ho Wong

Northern Australia launches initiative to boost mango exports to China

There is a new Australian initiative, joining experts and producers to boost the export of North Australian mangoes by some 200 percent.

The 1.6-million US dollar undertaking was announced on Monday and will be led by the Cooperative Research Centre for Developing Northern Australia (CRCNA), involving Australia's leading Calypso mango exporter Perfection Fresh (Perfection), the Queensland Department of Agriculture and Fisheries (DAF) and the University of Queensland (UQ).

Northern Territory project manager Sally Leigo from the CRCNA told Xinhua that a number of new mango plantations being established in the region have prompted the industry to look for new and innovative export avenues. Key to the new strategy will be moving from airfreight to sea freight, allowing for a larger amount of produce to be moved, but creating the distinct problem of maintaining freshness during the 18-day journey from Brisbane to China.

"An issue that the team in this project certainly want to tackle is, how can you maintain the quality of that fresh mango throughout the transportation and various handling procedures once it arrives," Leigo said. "A key with mangoes is making sure they don't ripen too quickly during the transportation process."

Because the ripeness process is affected by heat, the team intend to use data loggers to monitor the temperatures within refrigeration units, with information being sent via satellite to make sure that the fruit is at its best when it arrives.

Leigo said the success of the project will mean Chinese consumers are able to enjoy even more of this coveted fruit counter-season to their own market. The project is expected to be completed by mid-2021.


Publication date : 1/15/2019
Source: www.freshplaza.com

Early engagement core to market access in China

With market access negotiations underway for Australian mainland apples and strong progress made towards the launch of Pink Lady® in China, Apple and Pear Australia Limited (APAL) are doubling down on their efforts to forge relationships in the region.

“This is our third visit to mainland China in the last 12 months,” said Andrew Hooke, APAL Director Global Development, of the team’s November trip. “Market access is probably still some time away, but we are doing all that we can to accelerate this by articulating the benefits to China and generating excitement around our product.”

The most recent visit coincided with the China Fruit & Vegetable Fair where Australian fresh produce was appreciated by Chinese officials at the trade display hosted by Hort Innovation and Taste Australia.

During the visit, APAL also participated in the 2018 International Seminar on Inspection Technical Cooperation sponsored and hosted by China Entry-Exit Inspection and Quarantine Association (CIQA).

“CIQA plays an important role in securing access for Australian mainland apples so it was quite an honour to have APAL’s own Head of Global Quality and Innovation, Andrew Mandemaker, invited to address the delegates,” explained Andrew. The prestigious event was attended Professor Guo Lisheng, Senior Advisor of CIQA; Mr Paul McNamara, Minister Counsellor from the Australian Embassy; and Mr Adam Balcerak Department of Agriculture.

In addition to informal discussions, APAL was also asked to present to the General Administration of Customs of the People’s Republic of China.

“We are building the business case for the size and sophistication of the Australian apple industry and its value to the Chinese consumer, every chance we get.”

“The quality of the existing commercial relationships between APAL and Chinese government officials and business partners, reinforces our commitment to an industry partnership, which will be a key driver for the Chinese government supporting market access,” said Andrew.

For more information:
Apple and Pear Australia Limited
Phone: +61 3 9329 3511
Fax: +61 3 9329 3522
Email: ea@apal.org.au
www.apal.org.au


Publication date : 1/9/2019

Source: www.freshplaza.com 

Shipments of oranges and mandarins to China continue to climb, while US demand stabilises

Increasing demand from China has been the driving force behind growth in Australian citrus exports over the last decade. Shipments to all international markets have increased on average 8 per cent by volume per year over ten years to 265,000 tonnes (12 months to September 2018).

Based on preliminary results for 2018, exports may miss the 2017 record (volume) by around 3 per cent, however, it is still a very strong result compared to even a few years ago. According to peak industry body Citrus Australia, mandarin exports were lower due to the lighter crop in Queensland this year, as well as an earlier finish to the season.

China, including Hong Kong, accounted for around 44 per cent of Australian citrus exports in 2018 (data until September), followed by Japan with 15 per cent.

Comparatively, China, including mostly Hong Kong, made up 17 per cent of exports in 2008, while Japan was 11 per cent. Back then North America was the leading market, holding a 22 per cent share of exports. It now holds 7 per cent.

Australia enjoyed many years of solid trade into North America, being the first Southern Hemisphere country to gain market access for citrus to the US in 1993. As more countries gained access to this lucrative market, Australia’s share declined. While Australia’s market development focus has shifted to China, the North American market, including the US and Canada, has settled to a stable demand pattern for Australian oranges and increasingly mandarins, mostly from the West Coast regions. Trade to North America lifted 8 per cent in 2018.

Korea is a developing market for Australian oranges and lifted 48 per cent in 2018 to over 3,000 tonnes. With tariffs approaching zero by 2020 under a free trade agreement, Citrus Australia sees greater opportunities in the Korean market for counter-seasonal citrus from Australia.

ASEAN markets have long been the mainstay of Australian citrus exports, though the mix of markets has changed. Thailand, Vietnam and the Philippines have ramped up to become significant markets, while Singapore has been steady at around 10,000 tonnes. Malaysia, once the largest market in the region, has declined in volume by over 50 per cent in ten years.

The Middle East markets have increased more than 3 per cent year-on-year over the decade, although they dipped some 20 per cent in 2018 as other suppliers increased their share in the region and traded more directly with end markets rather than through the UAE hub.

Europe remains a small opportunistic market for Australian citrus, with some niche opportunities for high-end fruit that can withstand the long distance and freight costs.

Citrus Australia has been focused on developing sustained export growth that has provided viable returns for growers large and small.

The range of navel oranges and the development of new seedless mandarin varieties to meet market needs have been instrumental in the growth enjoyed over the last few years, along with a cohesive team of professional exporters supported by Citrus Australia.

 

Source: http://www.fruitnet.com/asiafruit

Author: Wayne Prowse

Australian stonefruit ready for retail

New export programme aims to build market share for Australian stonefruit in China

It’s not hard to see why China is the word on the Australian stonefruit industry’s lips.

Having gained direct access to the Asian nation for nectarines in 2016, Australian peaches, plums and apricots were approved for export in late 2017. The opening propelled the industry to its best export performance in over a decade, with 17,785 tonnes of fruit shipped internationally over 2017/18, a 27 per cent increase year-on-year.

China was the leading destination for this trade, receiving 4,985 tonnes of fruit directly, while Hong Kong took 3,308 tonnes.

With the 2018/19 export season getting underway in late November (2018), hopes are high these figures will again be eclipsed.

“Last year we had an exceptional year, our best export year since 2003, and we’re confident we’ll match it,” said John Moore, chief executive of peak industry body Summerfruit Australia.

“It will be the first year of full participation by all summerfruit growers in Australia for exports to China, with fruit primarily coming from Victoria, South Australia and New South Wales.”

To aid market development efforts and showcase the full capabilities of the industry, Australia’s Summerfruit Export Development Alliance (SEDA) – a body that sits within Summerfuit Australia – has developed a concentrated retail programme for the Chinese market.

Backed by a Food Sources grant from the Victorian state government, the programme will see eight Australian growers supply fruit directly to selected retail partners.

After SEDA called for expressions of interest in the programme in mid-2018, the participating growers were selected based on their ability to meet defined quality specifications.

An independent programme facilitator, appointed by SEDA, will conduct inspections upon each consignment’s departure to ensure the quality specifications continue to be met, while there will also be a provision for the Chinese retailers to have the fruit assessed upon arrival.

The programme’s remit isn’t just to highlight the quality of Australian stonefruit; it also aims to bring the category to the forefront of Chinese consumers’ minds.

A wide range of point-of-sale and promotional materials have been developed especially for the programme, while participating growers will send extra fruit to the retailers at no added charge in order to facilitate in-store sampling.

The SEDA programme will operate independently from the established Taste Australia retail programme, which also includes stonefruit promotions.

Ian McAlister, chair of SEDA, said one of the immediate benefits of the programme has been the level of collaboration it has promoted between participating growers. By McAlister's admission, no single Australian exporter has the capacity to deal with a large retailer on their own. By working together, the goal is to drive value growth for the category.

“What they (retailers) demand is consistency of product and the continuous supply of product,” McAlister said. “You can’t come in for one week, send a couple of containers, then be out of the market for three weeks.

“Under this programme, every grower will retain their identity, but if we can get a benchmark standard and consistency it will give the Chinese consumers and retailers the confidence that we can deliver again and again.”

Over 120 Australian stonefruit growers registered to send fruit to China ahead of the 2018/19 season, up from 76 on the year prior, indicating the willingness among the industry to grow this market. With this in mind, provisions have already been made to expand the retail programme.

“It’s been clearly explained to SEDA members that this is a pilot programme to demonstrate to the Chinese retailers that this can work,” Moore explained. “Eventually, as demand grows, we’ll need to source more and more fruit, so other growers will be encouraged to come onboard, providing they can meet the benchmark quality.”

Read more about the SEDA retail programme in the December 2018/January 2019 edition of Asiafruit Magazine, out now.

Source: http://www.fruitnet.com/asiafruit  Author: Matthew Jones

China: Cold storage forecast: capacity will exceed 53 million tons in 2018

With the rapid development of the domestic cold chain logistics market, the market demand for cold storage is becoming more and more prominent. Online shopping, fresh e-commerce, and fruit and vegetable home delivery are all popular choices in the current consumer market. For online shopping, fresh e-commerce, fruit and vegetable home delivery, transportation is very important. Benefiting from the growth of such consumption, the domestic cold chain logistics market has also developed rapidly. It is estimated that the size of China's cold chain logistics market will reach nearly 300 billion yuan in 2018. By 2020, the market will be nearly 470 billion yuan.

Cold storage is one of the important infrastructures in the cold chain logistics industry. At present, the domestic cold storage demand is mainly concentrated in Beijing, Shanghai, Guangdong, Shenzhen, as well as Fujian, Tianjin, Zhejiang, Jiangsu, Shandong, Chongqing, Henan and other places.

In recent years, the number of cold storage facilities in China has increased, but there is still room for growth when considering the huge potential market. According to statistics, China's cold storage capacity exceeded 48 million tons in 2017 and will continue to grow in the future. It is estimated that by 2018, China's cold storage capacity will exceed 53 million tons.

Source: China Business Intelligence Network via www.freshplaza.com

Publication date : 12/18/2018

T&G Global: Orchard Rd to export first Aussie Tulare Giant sugar plums to China

T&G Global is gearing up for harvests of Australian Tulare Giant sugar plums with plans to ship the fruit to Asian markets under its Orchard Rd brand.

The company’s general manager of Australia (exports) Paul Scheffer says the fruit will start to be picked in small volumes next week with most growers expecting to start picking between Christmas and New Year.

“Size is looking larger than usual with our expectation of increased production of Tulare Giant that will be in good supply until mid-February,” Scheffer says.

“Export markets will include Singapore, Malaysia, Hong Kong and mainland China. Retailers will be ranging under the Orchard Rd brand with promotional activity being scheduled for the lead-up into Lunar New Year.”

The option to export to mainland China has been made possible by the country’s decision in November 2017 to expand its market opening for Australian stonefruit to also include plums, peaches and apricots in a protocol that already included nectarines.

“We’ve got growers registered to meet the protocol for that direct access to China; that protocol will play a big part of what we do with Tulare,” says Scheffer, adding the fruit will be assisted into the market by T&G’s own Shanghai office.

“Initially the demand was purely taken up in Asia, but in the last two seasons we’ve released the product domestically here in Australia and that’s really given us a good balance for our growers.

“We’re doing a lot of targeted marketing around Chinese New Year as well – it’s been really successful.”

T&G has commercialization rights in Australia for the variety, which was bred by the University of California Davis.

“We are fortunate the have growers who are committed to delivering a great quality product with excellent eating characteristics,” says Scheffer.

He adds Tulare Giants are the earliest plums to hit the shelves in Australia, and the product should fit nicely into export markets as well as a counter-seasonal option to supplies from California.

Released as a cross-category brand less than a year ago with the goal of broader consumer recognition in Australia, Orchard Rd has expanded internationally.

Scheffer says the company has already been exporting USA berries and cherries into Asia under the label, as well as New Zealand berries and grapes for Japan.

“Our berry fruit and our sugar plums will probably be our two big Orchard Rd drivers for the summer,” he says.

Source: https://www.freshfruitportal.com 

New South Wales cherry growers turning to Chinese buyers

Cherry Growers Association Australia president Tom Eastlake is preparing for what could be a game-changing season. Eastlake is one of the many cherry growers around Young (New South Wales) gearing up to export their produce to China for the first time, thanks to relaxed new trade laws.

The climate around Young makes it prime territory for cherries and the NSW Department of Primary Industry said the Young region has seen some of the highest numbers of farmers registering to export to China in the state.

Growers have previously been restricted to sea-freighting their cherries to mainland China market because of Queensland fruit fly contamination fears. Now a new free-trade agreement between Australia and China has allowed growers to airfreight their produce after treating it for fruit fly.

Before the agreement, only growers in Tasmania could airfreight to mainland China, thanks to the island state being fruit fly free, while mainland Australian growers could export to Hong Kong.

But Eastlake said Chile was Australia's biggest competitor for the Chinese market. The South American nation could produce 200,000 tonnes of cherries this season, Mr Eastlake said, while Australian growers are hopeful for a record season this year of 18,000 tonnes.

"But it can be six weeks before the consumers are eating it [Chilean cherries]," Mr Eastlake said, with the majority of Chilean cherries moved by sea freight. Now, theoretically, Young cherries could find themselves on mainland Chinese shelves three days after being picked.

"You just can't beat something that's 72 hours from the tree. You just can't do it. The flavour's better. The appearance is better," he said. "Nowhere in the world can get things to South-East Asia as quickly as we can."

He said growers in Australia needed to get at least $8 a kilogram for cherries just to remain in the industry. "There's no money in it at $7 or $8. We're not making money hand over fist. We're not out there buying Rolls Royces."

Source: canberratimes.com.au via www.freshplaza.com 

Australian table grapes - forecast almost 18% above last year’s estimate

USDA GAIN report


Australia’s production of table grapes in 2018/19 is expected to be higher due to more favourable seasonal conditions, higher yields and a larger harvest area. This forecast is almost 18 percent above last year’s estimate, which was revised down due to poor weather, reduced yields, and a late season. Australian table grape producers are increasingly focusing on the growing export market as a result of strong international demand, especially from China.

Exports comprise almost 70 percent of production in recent years and are likely to grow further with the impending removal of Chinese tariffs on table grapes under the China-Australia FTA. Table grape imports, mainly from the United States, are likely to remain the same as 2018/19, primarily due to the strengthening U.S. dollar.

Production
Table grape production is forecast at 200,000 MT in 2018/19, up almost 18 percent on the previous year due to favorable seasonal conditions and higher yields. The harvested area is forecast to expand to 12,000 hectares in 2018/19, up 9 percent in anticipation of higher yields and an expanded harvest area.

Production in the previous year featured poor yields in a number of areas due to hotter temperatures. Most grape producers in Australia are small and medium-sized family businesses, with a few large growers. Sunraysia is Australia’s largest table grape growing region, producing an estimated 80 percent of total production. Early season regions include the Northern Territory and Queensland with 70 percent of late season production from the Sunraysia region of Victoria, based at Mildura and Robinvale.

Australian exports of table grapes, 2012-2017 (in 1,000 tons)

Click here for the full report.


Publication date : 11/23/2018

Source: www.freshplaza.com 

Michael Every of Rabobank: 'New Zealand could be forced to pick a side between US and China'

The US-China trade conflict is developing into a ‘cold’ war for global economic supremacy and could result in New Zealand being forced to pick a side between the two global superpowers, according to Rabobank’s Head of Financial Markets research for Asia-Pacific Michael Every.

And with this threat on the horizon, Mr Every says New Zealand’s agricultural sector should aim to reduce its reliance on individual trade partners and place an increased focus on diversification of its export markets.

Visiting New Zealand last week to speak at a number of Rabobank events in both North and South islands, Mr Every said he expected US-China relations to deteriorate further.

“The clash between the US and China is not going away, it’s not an aberration, it’s going to get worse,” he said.

“China and the US both want to be number one, they both want to be sitting in the driving seat for who gets to set the rules for the global economy and who everyone looks to as the global leader and there’s only room for one in that chair.”

Mr Every said increasing tensions could produce a scenario where New Zealand is forced to choose sides.

“China is aggressively pursuing trade expansion and there may come a time when a gun is put to New Zealand’s forehead and you’ll be asked are you with us, or are you with the US,” he said.

“If you answer the US, the Chinese could slam the door shut.”

Mr Every said China’s growing global influence and use of policies inconsistent with free trade had provoked the US to retaliate with tariffs on Chinese imports and other as anti-China trade policy.

“Last month the US concluded a new trade deal with Canada and Mexico, which requires them to notify the US before entering into any agreements with non-market economies such as China. This was economic warfare dressed up as trade and the type of move the US may try to employ in the Asia-Pacific region.” he said.

In March this year, 11 nations, including New Zealand, signed up to the Trans Pacific Partnership (TPP).

The TPP was originally intended to include the US, but it withdrew from negotiations in 2017. In January, however, US President Donald Trump signalled he could push harder for “substantially better" Pacific trade deal for the US.

“At some point the US is going to come crashing back into the Asia-Pacific region because it’s so geopolitically important,” Mr Every said. “And the message may well be that the price of protecting New Zealand is a new trade deal on their terms and which forbids, or greatly restricts, dealing with China.”

An ultimatum from either of the US or China would place New Zealand in a perilous position given its significant trade ties with both countries.

New Zealand’s agricultural exports to China have grown rapidly in recent years and China is now New Zealand’s most important trading partner. New Zealand also has a significant trade relationship with the US as well as historically strong diplomatic and cultural ties.

Mr Every said New Zealand farmers and exporters should look to diversify offshore markets, before any concessions are demanded by the US or China.

“New Zealand’s agricultural sector should be looking to further develop links into new growth markets like Japan, Indonesia and India,” he said. “While this may take a lot more effort in the short-term, it will leave agricultural exporters in a better position should the US or China start making demands down the track."

“New Zealand needs to look at it as an opportunity, rather than a threat, and ask ‘what brand can we build for agriculture that allows us to thrive’, because trade protectionism won’t go away.”

Mr Every said with increased market volatility likely, New Zealand farmers should also be taking a close look at their balance sheets.

“Farmers would be wise to shore up their balance sheets so they are robust enough to cope with a scenario where one of New Zealand’s major trading partners withdraws from the market,” he said.

For more information:
Rabobank.com 


Publication date : 11/13/2018

Source: www.freshplaza.com 

Australian cherry crop sizes up well

Early forecasts point to solid national crop, with mainland growers sending directly to China via airfreight
As Australia’s early-season cherry harvest gets underway, hopes are high for a record crop.

Cherry Growers Australia president Tom Eastlake said all major production regions were cropping well, with growers on track to surpass the 16,000 tonne mark for the first time.

“The forecast at the moment depends on how bullish you want to be … we would have to be starting this year at a baseline of 20 per cent higher than 15,000 tonnes, so it will be about 18,000 tonnes," Eastlake told ABC News.

“Assuming we don't have any adverse weather events come through, I would be reasonably confident we hit that mark."

Cherry growers in New South Wales are optimistic about crop forecasts, despite the state being in the grips of drought.

Water storage in the key production hub surrounding the township of Young is down, but many don’t foresee this as a wholesale problem.

“It means we just have to manage our water supply well,” Fiona Hall, managing director of Caernarvon Cherry Co, told Asiafruit. “Good management will mean there will be no impact on the crop as we hope for more rain through early summer.”

The dry spell, coupled with a warm winter, resulted in a later blossom in New South Wales, which has seen a later start to harvest for some growers.

Further south in Victoria, growers are reporting an above average fruit set, although some areas were affected by an early frost at budbreak. This has been compensated by a better than average fruit set on other varieties.

Michael Rouget, managing director of Victorian-based grower-packer-exporter Koala Cherries, said he was expecting a “normal crop to slightly above average" on his orchards.

Cautious optimism for China

Having secured significant market access improvements in January this year, the upcoming 2018/19 campaign will see mainland cherry growers send fruit directly to China via airfreight for the first time. However, it will be with an eye on laying the foundations for what the industry hopes will develop into a lucrative market.

“It is a positive step forward. People are optimistic but cautious given this is new territory for mainland cherry producers in Australia,” Rouget said. “I think this season most growers will trial shipments through this pathway but do it cautiously.”

The new protocol with China requires all mainland cherries grown outside recognised pest free areas to undergo methyl bromide treatment prior to export.

Hugh Molloy of Antico International says an adherence to high-quality will be crucial when it comes to developing market share in China.

“There is specific and unique demand for Australian supply if we can deliver consistent high quality, firm, sweet fruit,” Molloy told Asiafruit. “If this is established over November and December, the sales draw should then flow on into the Tasmanian supply window, which this year is perfectly suited to and timed for the Chinese New Year gifting period.”

 

Source: http://www.fruitnet.com/asiafruit

Author : Matthew Jones

Early Murcott Mandarin Variety Key to BGP’s Good Start in China

From September 5 to 8, the booth of BGP International, a Melbourne-based produce company, caught the eye of many attendees at Asia Fruit Logistica 2018 Hong Kong. Since its founding in 1992, BGP has strived to provide customers with high-quality fresh produce year-round through extensive cooperation with partners in Australia, the United States, Pakistan, India, Turkey, Egypt, South Africa, and New Zealand. Now, the company has also expanded operations to California, the Philippines, India, and Egypt. Produce Report interviewed Neil Barker, CEO of BGP, to explore how his company has done in China.

Citrus has been a key category for BGP, with the company’s annual citrus volume exceeding 40,000 metric tons. Relying on oranges, mandarins, and grapefruit from the world's leading production regions to develop the Chinese market has proven a sound strategy which pairs well with BGP's own strengths. The company’s strategy for China focuses on a special Murcott mandarin, the very early Murcott variety Royal Honey Murcott, which was discovered and patented by Ironbark Citrus, a producer of premium Australian mandarins in Queensland. This variety matures one month earlier than other Murcott mandarins and possesses a skin texture and taste profile which appeals to Chinese consumers.

As an appointed partner of Ironbark Citrus, BGP enjoys the privilege of being able to promote the variety in China before fierce market competition kicks in. "Until now, every year when the sales season kicks off for Royal Honey Murcott, demand is always two to three times greater than the volume available, so we have to restrict access to only a small number of specially-selected importers to better serve the market.” Neil continued however, noting that, "because we started with these early varieties, we are in a good position to go on with our later Murcott varieties."

For a first-hand account of this highly sought-after variety, Produce Report also spoke with Jing Huang, Assistant to CEO for Fruitday, a major Chinese fresh produce e-retailer, who confirmed the popularity of the Royal Honey Murcott in China. “This will be our fifth year marketing this variety on our platform. In addition to maturing early, Royal Honey Murcotts also boast a good appearance, excellent taste, high brix, and low acid content. As a result, it has been received well on Fruitday and is a perfect fit for the Chinese market.”

According to Neil, production of Royal Honey Murcotts is expected to double over the next 3 years and BGP will be working to continually increase market penetration for the variety in China.

Besides sourcing from Australia, BGP were also among the first companies to bring Chinese consumers mandarins, grapefruit, and lemons from Egypt. "We also expect some increases in these volumes in the years ahead. To achieve this goal, our grower partners in Egypt and South Africa are planting new farms with varieties specifically developed for the Chinese and Asian markets," Neil remarked. In addition to expanding the existing supply chain volumes, BGP is actively exploring new fruit varieties as well, such as avocadoes, nectarines, plums, and peaches, to further add value to its business in China.

BGP has been exporting premium Australian fruit to China since the early 2000s. Over the years, the company has developed into a crucial supplier to many upscale supermarkets, online retailers, and wholesalers in China. As one of the forerunners in marketing China-grown produce around the world, BGP has operated an office in China for a number of years to facilitate its exports of apples, citrus, garlic, and ginger to India, the EU, and other Asian markets. BGP was also involved in the early shipments of Ya pears (a famous type of pear native to northern China) to Australia.

Source: https://www.producereport.com