By engaging international trade protocols, investing in domestic production and distribution capacities, liberalising retail systems, and promoting consumer development, China has established itself in recent years as a major force in the global produce industry.

During its Fresh Summit 2003 International Convention & Exposition in Orlando, Florida, the Produce Marketing Association unveiled a new industry research report titled FreshTrack China: Opportunities for Fresh Produce Suppliers, during a workshop on Sunday, October 19. This is the first FreshTrack report that examines the produce industry outside of the US.

The report provides benchmark information that can be used to track the development of the evolving China market and to review the impact of imported produce promotional or support programs. To prepare this report, PMA collaborated with Deloitte Touche Tohmatsu Emerging Markets Ltd, China Food and Agricultural Services Inc, and Belrose Inc.

"Recognizing the enormous potential of China's fresh produce industry as both a supplier and a market, PMA became involved with nation's industry several years ago through reverse trade missions, retail seminars in China, the production of Chinese-language training materials, and educational programming at Fresh Summit," said PMA president Bryan Silbermann. "China represents a developing market that offers great potential for increased produce exports. This report will help suppliers understand how China's supply chain operates, as well as help them assess market entry and/or development strategies."

Some key findings from FreshTrack China: Opportunities for Fresh Produce Suppliers include:

• U.S. produce already has a very high reputation with Chinese buyers for quality, taste, consistency, and profitability. Best practices and quality assurance measures are vital to maintain this image.

• It may be possible to use the successes in marketing of US fresh oranges, apples, and table grapes to build market share for lemons, western pears, or kiwifruit.

• Chinese traders are eager to buy additional produce items from the U.S., including avocados, limes, cherries, clementines, apricots, and new varieties of apples.

• A small proportion of all imported produce is sourced directly by retailers from foreign grower-shippers, and a small proportion of the business of importers involves sales to foodservice outlets. Both segments are likely to see increased growth.

• Most U.S. produce items imported into China remain in their original shipping carton throughout the supply chain. As such, improvements are needed to the structure of shipping cartons to better preserve and protect the produce under current Chinese conditions.

• Retailers welcome a wide array of promotional support including price breaks, free samples, in-store demonstrations, repackaging services, and nutrition information.

• While a lack communication infrastructure has limited the use of the internet in the Chinese produce business, cell phones are omnipresent. With a new generation of wireless telephones that allows internet access, suppliers could use this opportunity to use the internet to build stronger ties with their Chinese customers.

PMA member price for FreshTrack China: Opportunities for fresh produce suppliers is $150; non-members pay $600. A $5 non-refundable handling fee is applied to all orders. To order, contact the PMA Solution Centre at +1 (302) 738-7100.

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