After about a decade of expansion in China, Japan-based beverage maker Asahi Group Holdings has decided to sell off its farm and dairy business in the country. Asahi launched its farm business in 2006 in East China’s Shandong Province, using Japanese agricultural technology and experience in vegetable production, according to a report by ribenxinwen.com on Tuesday…Full Article: The Global Times Jan 2017

Key Points

  • By the end of 2015, China had a total freezer capacity of approximately 93.5 million cubic meters (an increase of 12.6% from 2014). On average, the USA’s freezer capacity totaled 0.36 cubic meters per capita, while Japan’s totaled 0.33 cubic meters. Far behind was China, with an average freezer capacity of 0.07 cubic meters per capita.
  • In 2015, approximately 65% of China’s seafood passed through its cold chain network, followed by 50% of its meat, and 30% of its fruits and vegetables.
  • From 2014 to 2015, China’s top 100 cold chain logistics companies saw their revenue increase 17.3% to CNY 17.38 billion (US$2.52 billion).
  • In 2008, Asahi launched its dairy business in the Shandong Province. The Japanese company imported dairy cows from Australia, but reportedly failed to make headway due in part to China’s underdeveloped cold chain logistics infrastructure.

ChinaAg Comments

  • In August 2016, China’s first refrigerated-container train departed from Dalian, Liaoning Province, to Moscow transporting pears (origin Hebei Province), pomelos (Guangdong Province), and garlic (Shandong Province). The new refrigerated-container train route will cut shipping times by 60% versus traditional shipping routes (ship and rail). Once crossing the border into Russia, the Chinese goods will be transferred onto a Russian freight train near Lake Baikal.
  • In May 2016, JD.com and Shanghai Zheng Ming jointly opened a cold storage logistics center in Tianjin Municipality.
  • In September 2014, it was reported that the large Chinese refrigeration companies of Aucma (based in Qingdao, Shandong Province) and Wanbao (based in Guangzhou) had manufacturing facilities in the Minquan High-tech Zone. By 2015, they hoped by 2015 that the zone will have the capacity to produce 20 million refrigerators and more than 20,000 refrigerated truck units.
  • Founded in 1994 and headquartered in Shanghai, Shanghai Zheng Ming modern logistics operates cold storage facilities across 20 provinces/regions that are primarily used to supply Chinese supermarkets and restaurants. Its Chinese partners include Kentucky Fried Chicken (KFC), McDonald’s, Bright Dairy, Inner Mongolia Yili, Caffe Bene, and others. In July 2013, the French private equity firm, Cathay Capital, invested in Shanghai Zheng Ming.

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