Land reform consolidation to bolster domestic Chinese fruit industry
The organizers of Shanghai's iFresh summit hope the event will be a positive force for change, tackling asymmetries in the import game as fruit production modernizes rapidly at home, particularly toward the country's western frontiers.
iFresh co-founder Zhu Yongli told www.freshfruitportal.com more than 1,000 local and overseas growers, traders, retailers and government representatives would be attending the event on May 26.
One key issue to be addressed will be the modernization of fruit production, a process that has taken place rapidly since Chinese President Xi Jinping set forth "unprecedented" land reforms in late 2013. Now that key players have acquired significant landholdings, cultivation is expected to ramp up in what Zhu described as a new golden age of development.
He added much of the land reform transition was coming to an end, and local governments were giving great support to fruit-growing areas.
"As far as production is concerned, the ample land supply and preferable natural endowments in western China could in turn help cultivate some domestic premium produce products, as the latest technologies, equipment and management concepts from abroad become further integrated into the local businesses," Zhu said.
"So, in other words, it's fair to say China's hinterlands are where we hope to boost our confidence in domestically grown products.
This dynamic will have a bearing on the import trade as well; a sector where information asymmetry has been a conspicuous barrier.
"Take the produce import sector for example. Years of oversupply have left negative impact on the future market potential of some once-highly profitable products," Zhu said.
"It takes a lot of concerted efforts to establish rational competition, along with a more reasonable pricing mechanism and more diverse market demands, in the industry."
He noted much had been accomplished in previous iFresh sessions, mainly by promoting opportunities in the produce industry.
"It is my belief that this year's summit will achieve even more, as huge flocks of representatives of suppliers, traders, retailers and e-commerce platforms come together to explore new business opportunities.
"However, more importantly we hope to promote new ideas, new technologies that could change the landscape."
Zhu said guest speakers and participants would take part in a collective brainstorming experience, with more than 40 industry experts from China and abroad set to touch on issues ranging from the expansion of marketing channels to brand building and retail. Among those invited include Shanghai Produce Wholesale Market deputy manager Zhang Chunhua, Shezhen Baiguoyuan chairman Yu Huiyong and Fruitday.com co-founder Loren Zhao.
While import transparency and local farming modernization will be two major topics, the third will be retail including discussions about e-commerce platforms, O2O [Online2Offline] business models and WeChat-based marketing.
"We have seen radical changes in the produce market over the past two years," the executive said.
"What we once saw as giants, such as supermarkets and chained stores, have been taking much heat from brand new business ventures, such as several vertical e-commerce platforms or even thousands of WeChat-based online fruit-stands.
"The change has been disruptive, which is still rare for businesses in other countries."
He said China's produce industry had been rather traditional in the past, perhaps event "low-key", but now the sector was on the move.
"Many industry veterans have come to the front stage and accept the challenges that arise from the internet age. We really need to move things forward in our industry from inside out."
An expo with 40 to 50 booths is to be held alongside the conference, serving as a venue to showcase high quality products, including New Zealand avocado and Australian white nectarines.
"Throughout the conference, there will be presentations on latest technologies used in production, packaging, cold storage and cold chain and third-party logistics by international firms.
"This will help Chinese produce businesses adapt much quicker to new technological advancements."
The event, officially called the iFresh Asian Fruit & Vegetable Industry Summit, will take place at the Shanghai Everbright International Hotel. Organized by iFresh Information Ltd, it is also supported by the China Fruit Marketing Association and the China Entry & Exit Inspection and Quarantine Association.