Cold Chain Distribution Capability Assessment for Selected Markets in China
| Project start date: | 09 May 2016 |
| Project end date: | 22 March 2017 |
| Publication date: | 22 March 2017 |
| Project status: | Completed |
| Livestock species: | Sheep, Goat, Lamb, Grassfed cattle, Grainfed cattle |
Summary
The specific objective of this research project is to conduct a detailed analysis of the cold chain logistics capability for selected cities in China, in order to develop a better understanding of current and planned how cold chain capacity.
The channels available for sales in China are changing at a rapid pace. Free trade zones and cross-border E-commerce zones are expanding the cold chain logistics network and challenging the prevailing terms of trade for exporters. The opportunities for expansion of chilled red meat markets and for on-line sales are critically dependent on the capability to execute efficient cold chain management throughout the value chain.
China is a dynamic cold chain logistics market, growing at a rate exceeding 10 percent per annum. Inflow of large private investment into cold chain logistics is in the context of major public sector investment in transport and telecommunications infrastructure and implementation of planned land release for logistics hubs and parks.
Logistics costs account for as much as 16 percent of product costs in China, compared to less than 4% for similar products in many developed countries. E-commerce last kilometre deliveries and cold chain management requirements increase these costs.
1. However, only 34 percent of meat products are distributed under cold chain management processes and 57 percent of meat products are transported in refrigerated vehicles in China, compared to more than 90 percent in Australia.
2. Cold chain logistics is fragmented in terms of geography and market. It varies between cities and provinces, often dominated by small and medium suppliers lacking systems and processes to manage cold chain.
The challenge in capturing the new market opportunities in red meat exports to China is in understanding the cold chain logistics supply dynamic and matching it to target markets, given the variability between individual cities.
In this report, five key markets have been analysed in relation to cold chain logistics capacity. The environment of rapid evolution in terms of channels to market and cold chain logistics development indicates an ongoing need to monitor progress in these markets.
