Fresh Food - China
Euromonitor International : Industry Overview April 2011
List of Contents and Tables
Executive Summary (1)
Food Prices Continue To Escalate in 2010 (1)
Lack of Cold Chain Logistics Standards Hamper Food Safety (1)
Water Resources Po A Major Challenge (1)
Distribution Channels Evolve (1)
Heavy Government Subsidy Guarantees Future Consumption (1)
shawn fanningKey Trends and Developments (2)
Overall Inflation Further Pushes Up Food Prices (2)
Chine Food Therapy Thrives – Affecting the Food Market (2)
Lack of Cold Chain Logistics Standards Hampers Food Safety (3)2014研究生考试时间
Market Data (4)
Table 1Sales of Fresh Food by Category: Total Volume 2005-2010 (4)
Table 2Sales of Fresh Food by Category: % Total Volume Growth 2005-2010 (4)
Table 3Sales of Fresh Food by Distribution Format: % Total Volume Analysis 2005-
2010 (4)
Table 4Sales of Fresh Food by Distribution Format: % Retail Volume Analysis
2005-2010 (4)
Table 5Forecast Sales of Fresh Food by Category: Total Volume 2010-2015 (5)
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bewilderingTable 6Forecast Sales of Fresh Food by Category: % Total Volume Growth 2010-
2015 (5)
Definitions (6)
Summary 1Rearch Sources (6)
FRESH FOOD IN CHINA
美式英语音标EXECUTIVE SUMMARY
Food Prices Continue To Escalate in 2010
China has entered a period of long-term inflation since the RMB4 billion economic stimulus plan was launched back in 2008. Since then, food prices have steadily rin, with prices rising 4.4% in October 2010 on a year earlier. Rising food prices have placed a heavy burden on low-income and rural families. Besides the extreme weather in 2010, additional contributions to rising food prices were incread labour costs and growing demand for meat, dairy, and grain products, combined with market speculation, which pushed inflation beyond its target. Imports of commodities will ri if the prices continue to escalate in the future. The Chine government is continuing to unveil food price controls and policies to remain lf-sufficient and to keep food prices under control in the long run.
Lack of Cold Chain Logistics Standards Hamper Food Safety
China did not start establishing cold chain national standards until 2010, a major hurdle for the development of cold chain logistics in the country. China is a latecomer in terms of cold chain logistics development. Currently, only around 15% of food, meat and vegetables is transported via the cold chain in China, compared with 90% in more developed nations. The development of China’s cold chain logistics will effectively reduce the percentage of food decay in transportation and will move food safety standards to a higher level. Moreover, cold chain logistics will increa the availability of some local crops, which is likely to influence the diet structure and the food products consumption structure, especially in inland cities, where local residents will have better access to afood that requires refrigeration facilities.
Water Resources Po A Major Challenge
In 2010, crop production was hindered by extreme weather. In the spring ason of 2010, vere drought hit the southern part of China, caud a shortage of water supply for livestock and farmland. In the early summer, heavy flooding hit 28 provinces, damaging about nine million hectares of farmland. Food shortages caud by extreme weather will only have a temporary or asonal effect
on inflation. However, due to the growing population, increasing urbanisation, rising farming levels and climate change, not only China, but also the whole world is facing shortages in water supply. The shortages in water resources will po major challenges to the food supply in the long run.
Distribution Channels Evolve
Big and modern distribution channels are taking share from traditional distribution channels in China due to the combined effects of overall ongoing urbanisation, retailer upgrades, lifestyle changes, and better houhold refrigeration facilities. Chine consumers are getting ud to doing a major shop once a week and hypermarkets will be the ideal one-stop shopping solution. Chine consumers are moving towards big distributors like hypermarkets and supermarkets where they expect better-quality food and a better open shelf rvice, albeit higher prices as well.
Heavy Government Subsidy Guarantees Future Consumption
China launched a new 5-year plan in 2011 and indicated its intention to continue providing heavy government subsidies to improve the incomes of the rural population and guarantee the food supply in terms of price, quality and diversity. The government has realid that the repeated reports of food accidents can be partially ascribed to the low-margin food suppliers and tough business environment.
The 5-year plan will guarantee a better business environment with a lower tax burden and additional direct subsidies. Consumers will have greater lections with better quality and fair prices. On the other hand, Chine consumers might e price inflation on imported products due to the local agricultural protection of certain products.
KEY TRENDS AND DEVELOPMENTS
Overall Inflation Further Pushes Up Food Prices
China has entered a period of long-term inflation since the RMB4 billion economic stimulus plan was launched back in 2008. Consumer price inflation sped to a 25-month high in October 2010, with prices rising 4.4% on a year earlier. Food prices climbed 10.1%. The overall inflation was due to the combined influence of abnormal climate events such as cold, drought and flooding and oversupply in monetary terms. Market speculation was also blamed for contributing to the rocketing commodity prices over the last year.
Current Impact
The prices of 18 staple vegetables such as Chine cabbages, potatoes, and cucumbers ro 62.4
% in China in the November year-on-year. The average wholesale price of the 18 staple vegetables in 36 major cities went up by 11.3% from the beginning of the year. Specifically, the wholesale prices of garlic ro 95.8% and ginger 89.5% in 36 major cities in November, compared with the figures in the previous year. The trend started in staple vegetables and then moved into fruits. According to the report, the prices of the most commonly eaten fruits went up along with the macroeconomic circumstances. Apples were over 50% more expensive than a year earlier, with bananas also among the biggest rirs. The soaring prices hit product consumption levels in rural areas for a few months before the government stepped in and the volume consumption recovered gradually as the market took this on board.
Outlook
China will unveil food price controls and crack down on speculation in agricultural commodities to contain inflationary pressure since inflation is politically volatile in China, where poor families spend up to half of their income on food. Such direct intervention would mark an escalation of the government’s efforts to tame inflation. The government will also issue food subsidies for poor families to ea the worries and pressure of daily life from rising prices of food necessities. The Chine government has a good track record of highly-efficient top-down administration. The food pri
ce fluctuations will be stabilid, but the prices will not go back to what they were in 2008.
Future Impact
The UN Food and Agriculture Organisation said global prices of most commodities were up sharply in 2010 on the previous year and further spikes are likely unless production of major food crops ris. The future impact on the Chine food market will vary from product to product bad on the shortage or surplus of domestic supply. For example, China is expected to be a net importer of sugar from 2011 due to forecasts of continuing domestic demand growth and sugarcane output reduction in southern China.
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Chine Food Therapy Thrives – Affecting the Food Market
Chine food therapy is an ancient process – practitioners believe that a body can be healed by eating certain foods in certain combinations and amounts, instead of taking traditional medicine. In 2009, a 47-year-old retired textile worker in Beijing started to spread the word about his “magic” diet regimen. His book about Chine food therapy was one of the top-lling books in 2009 and people
wait for months for an appointment at his clinic eking out food therapies, despite paying fees of up to RMB2,000. The popularity of food therapy in China reflected increasing public attention paid to health and huge demand for health-related food.
Current Impact
The heated topic of Chine food therapy has affected the supply and demand relationship of certain food products in the market, which is regarded as having been stable for years. In some food therapy books, mung beans, eggplant, yam or corns are the most commonly ud key ingredients. For example, encouraged by the therapy books, Chine consumers kept purchasing mung beans so that there was excess demand for mung
beans, resulting in a price surge in 2010. The recent price surge in mung beans in early summer was ascribed to one of the therapy books in which mung beans are described as a universal remedy for many dias. In a similar n, the outbreak of H1N1 flu helped cau garlic prices to soar.
improvesOutlook
Chine food therapy has been around for thousands of years. It stems from the concept of Chine
草莓英文traditional medicine, but has not been commercialid until recent years. The concept has now been conveyed and spread by well-published books, DVDs and even some speciality restaurants making certain foods to treat dias. The trend will continue on the growth track along with the rvice economy development. People do e the value of Chine food therapy and the importance of eating right in general. The ongoing rearch into unveiling the principles of Chine food therapy also provides scientific evidence for its consistent development.
马尔克斯去世
Future impact
Most Chine food therapy advocates various herbs and vegetables as the key ingredients. However, it is not against the globally recognid way of eating right: less red meat, diversified foods, and high levels of proteins. The trend towards Chine food therapy will further positively impact the demand for vegetables and fruits that are commonly ud like beans, root products and pears. However, it will not affect imported food products much in the near future as most Chine food therapies do not include food products that were only recently introduced to Chine consumers. For example, Chine food therapy books have little knowledge of berries and puls.
Lack of Cold Chain Logistics Standards Hampers Food Safety
China did not start establishing cold chain national standards to boost the industry's development until 2010. China is a latecomer in cold chain logistics development. Currently, only around 15% of food, meat and vegetables is transported via the cold chain in China, compared with 90% in developed areas. The cold chain is esntially a temperature-controlled supply chain and involves a ries of storage and distribution solutions that ensures the shelf life of agricultural products such as meat and vegetables. The lack of national standards pos a major barrier to the development of the cold chain industry in China.
Current Impact
During the cold transportation process, fluctuations in the temperature are the major cau for the decline in the food quality. The above-mentioned food types are all classified as nondurable goods. Some 15% of China's perishable agricultural products are lost due to supply chain problems. The standards for the cold chain industry are still in their infancy and there is no clear timetable on when they will be rolled out. This major problem results in it not being possible to transport food products that need rigid temperature control and the higher cost of shipping premium products results in higher retail prices.
金山在线词霸
The relatively underdeveloped cold chain network has been boosted up the development of hypermarkets, which require intensive refrigeration and large stock levels. Seafood is still rare and expensive in most inland cities as air freight cannot meet all the demand until a cold chain logistics network is in place for it.
Outlook
China is working on the rising need for cold chain logistics. The National Logistics Standardisation Technical Committee’s Cold Chain Logistics Technical Committee was t up in 2010 to take full responsibility for building up a nationwide standard of cold chain logistics to integrate resources from processing, storage and shipping. The new standard will particularly address the different needs of different food products and locations.
Future impact
The development of China’s cold chain logistics will effectively decrea the odds of food decay in transportation and move food safety standards up to a higher level. It will also extend the shelf lives of fruits and vegetables, giving inland consumers access to tropical fruits and afood. This is likely to influence the diet structure and food products consumption structure, especially in inland cities. Fo
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