China’s second-tier cities, many of which have more residents than the largest U.S. cities of Los Angeles or New York, boast growing populations, increasing disposable incomes, upscale retail development, savvy e-commerce customers and improved cold chain and distribution networks. China now has over 600 cities that fall somewhere within the tier system, and many of these cities are untapped treasures for U.S. agricultural exporters. U.S. exporters are encouraged to develop a second-tier marketing strategy that works well for their products.
China: second-tier cities offer first rate sales opportunities
Chinese market opens to Portuguese grapes
Following China’s president Xi Jinping’s trip to Portugal in December 2018, several bilateral agreements have been sealed, including a protocol allowing Portugal to export table grapes to China. Portugal has also agreed to join China’s “One Belt, one Road” initiative, which could have significant implications on the flow of agriculture trade between the EU and China. The Portuguese port of Sines will be part of this initiative to promote the connection between Europe and Asia in sectors such as transport, energy and trade.
Phoenix Global, the ambition of a produce leader
The Dubai-based group has become a major agribusiness operator in several sectors, mainly cereals, rice and fresh produce.
Nielsen report: Ten trends of China's consumer market in 2018
Throughout 2018, China's Consumer Trend Index stabilized at a high level. As of the third quarter of 2018, China's average consumption trend index stood at 113 points, the same as last year and still far above the global average of 105. With the continuous development of China's economic structure, consumption has become an important driving force for the market.
The Philippines remains Japan’s main source of fresh fruit
Japan imported approximately 1.6 million tons of fresh fruit in 2017, worth US$ 2.14 billion. The leading exporters to Japan in value terms were the Philippines (37.7%), followed by the US (16.8%), New Zealand (14.4%), and Mexico (12.6%). The main fruits imported to Japan were banana (39.8%), followed by kiwi (14.7%), avocado (9.6%) and pineapple (5.9%). Japan’s domestic production of fresh fruit is declining as a result of its aging fruit farmers. The Philippines is the dominant supplier of both banana (80%) and pineapple (90%) to Japan.
Chinese potato production to fall 3% in 2018/19
The world’s largest potato producer, China, is seeing its farmers shift to corn as a result of low potato prices. Accounting for around 25% of global fresh potato production, China’s 2018/19 fresh potato production is expected to drop 3% to 94 million tons. Meanwhile, processed potatoes and frozen french fry (FFF) production will jump 15% to 290,000 tons, due to added FFF processing capacity. China’s FFF imports are expected to fall 10% to 115,000 tons as a result of the additional tariffs placed on US exports to China, reduced European supply, and growing domestic FFF production.
Kenyan fruit to gain access to Chinese market
An agreement is to be signed between Kenya and China that will allow the African country to export avocados, mangoes, cashew nuts and other products to the Asian market. The president of Kenya will head a delegation of farmers and horticultural merchants to China in November for the 1st Shanghai Import Expo. This phytosanitary agreement will allow over 40% of Kenya's fresh produce to be exported.
China imposes 25% tariff on US berries and vegetables
On July 11, 2018, the US Government imposed tariffs on a further US$200 billion of goods imported from China, and solicited public opinions on the measures. On August 2, the US announced an increase in the tariff rate imposed on these goods from 10% to 25%. The measures have deviated from the consensus of multiple consultations between the two sides and seriously violate relevant rules of the WTO. In response, China’s State Council Tariff Committee decided to impose tariffs on 5,207 items imported from the US. The measure involves approximately $60 billion of imports from the US.
Supafresh imports 1,000 containers a year
Established in 2009, Supafresh is Chinese importer, wholesaler and retailer of fresh fruit, whose flagship products are avocados and coconuts. In 2012, Supafresh became a pioneer in importing avocado, contributing to the explosive growth of avocado consumption in China. Importing around 1,000 forty-foot containers yearly, Supafresh has national distribution strategies with cold storage, repacking and ripening facilities set up in several cities across China.
SanLucar opens office in Dubai
Higher customer proximity and increased presence in the Arab Gulf States
SanLucar, premium brand for fruit and vegetables, reinforces its commitment in the Arab Gulf States and the Middle East with an office in Dubai. “We are closer to our customers and can therefore respond to their needs even faster and more directly,” says the head of the new office Bilal Issa.