المدونة

Although China is a major exporter of food and agricultural products, the standard of its cold chain logistics lags significantly behind the pace of industrial development, which has had an adverse impact on food and agricultural exports and requires urgent attention.

Key Issues

Cold chain technology is underdeveloped. As the food cold chain is a supply chain system designed to ensure the quality of perishable foodstuffs, with the maintenance of a low-temperature environment as its core requirement, it is more demanding and complex than standard ambient-temperature logistics systems, and requires greater investment. At present, China’s cold chain system remains largely confined to an early-stage market for refrigeration equipment; the cold chain technology currently available cannot be fully applied to many food categories, and there is a significant gap compared to international advanced standards.

Inadequate cold chain infrastructure. China suffers from a severe shortage of cold chain facilities and equipment; existing facilities and equipment are outdated, and their development and distribution are uneven, rendering them incapable of providing the necessary low-temperature guarantees for the perishable food distribution system. At present, the loading of perishable goods in China is mostly carried out in the open air rather than in cold stores or temperature-controlled facilities; 80% to 90% of fruit, vegetables, poultry and seafood are transported using ordinary lorries. For agricultural products such as fruit and vegetables alone, the loss rate during logistics stages including harvesting, transport and storage reaches 25% to 30%, with the volume of wastage ranking first in the world; large quantities of milk and soya products are transported without any cold chain assurance.

The development of third-party food cold chain logistics lags behind. The service networks and information systems of third-party food cold chain logistics are insufficiently robust, significantly impacting the in-transit quality, accuracy and timeliness of food logistics; simultaneously, the costs and product wastage associated with the food cold chain are high.

The food cold chain lacks overall planning and integration. The time-sensitive nature of perishable foods requires a high degree of organisational coordination across all stages of the cold chain; however, China currently lacks comprehensive planning and coordination between upstream and downstream supply chain participants, as well as a shortage of comprehensive, specialised talent in the food cold chain sector. These are issues that urgently need to be addressed.

Key Impacts

Massive wastage of perishable foodstuffs, particularly primary agricultural products. Due to high wastage during transport, logistics costs account for 70% of the total cost of perishable goods, leading to significant fluctuations in the prices of exported food raw materials and undermining the price stability of exported agricultural products.

There are significant hidden risks regarding food safety. The agricultural logistics sector has become a major threat to food safety; incidents such as ‘formaldehyde-treated Chinese cabbage’, ‘recycled potatoes’, ‘alum-treated Chinese chives’ and ‘DDT-treated ginger’ have all occurred due to the use of toxic chemicals for preservation during the logistics process.

In response to the above situation, the Weihai Inspection and Quarantine Bureau in Shandong proposes the following recommendations:

Strengthen research into the overall planning of China’s food cold chain and establish a coordination mechanism involving the government, industry organisations and relevant enterprises. The government should formulate policies to encourage the development of the food cold chain and strengthen directional guidance for industry planning; industry organisations should play a role in communication and coordination, formulating and implementing overall industry plans and standards; relevant enterprises should operate in accordance with market rules and work together to promote the gradual development of China’s food cold chain.

Promote the development of diverse cold chain models. On the one hand, rely on leading agricultural enterprises and large food companies to develop a food cold chain system centred on core enterprises, linking upstream and downstream supply chain segments to gradually form a cold chain assurance system covering the entire food industry. On the other hand, building upon the establishment of green corridors for agricultural products, construct a main cold chain network connecting major agricultural production areas with consumption centres to enhance the safety and security of bulk food logistics.

Establish a logistics and quality information system for the food cold chain to provide relevant stakeholders with accurate market updates and facilitate information exchange; simultaneously, provide traceability information to support food safety inspections, ensuring that problematic food products can be traced to their source.

As a long-established product in the field of water-cooled heat exchangers, there are currently over a hundred companies producing shell-and-tube heat exchangers in the refrigeration market; however, only around ten specialise in their manufacture. Jiangsu Honry HeatEX Industrial Co., Ltd. is a specialist manufacturer of shell-and-tube heat exchangers. These heat exchangers are primarily used in large-scale equipment such as central air-conditioning systems and refrigeration and cold storage facilities. Due to this characteristic, should a shell-and-tube heat exchanger fail, it would affect the entire system and inevitably result in significant losses; consequently, the quality requirements for shell-and-tube heat exchangers are extremely high. To ensure product quality, great emphasis is placed on material selection during the manufacturing process. “We have strict requirements regarding the selection of raw materials; we choose materials of consistent quality because if the heat exchanger fails, it will affect the entire system, so material selection must be meticulous,” stated Mr Xu, General Manager of Honry HeatEX. In shell-and-tube heat exchangers, if the materials selected do not meet standards, problems may not be apparent at the outset of use, but will become evident after a period of operation. As a supplier, particularly one providing components for such large-scale products, a lack of a good reputation effectively destroys one’s market presence.

It is understood that, compared to last year, shell-and-tube heat exchangers have seen a 10% price increase. With production costs continuing to rise—including higher raw material prices and increased labour and material costs—profit margins in the shell-and-tube heat exchanger industry are becoming increasingly slim. Factors such as the rapid dissemination of price information, the large number of manufacturers, and the wide variety of product types have collectively led to fierce competition within the industry. Even though there are only about five or six leading brands in the shell-and-tube heat exchanger sector, competition among these top brands remains fierce due to the very low profit margins.