[photopress:refrigerationCarrier.jpg,full,alignright]The Chinese mainland’s mounting demand for refrigerated storage and transport of fresh food is being restricted by a shortfall of facilities. It is creating a potentially huge market for cold chain logistics service operators.
As incomes rise in China, followed by fast expanding foreign and domestic food chains, cold supply chain logistics has caught increasing attention from market players.
The mainland’s largest logistics and transport company Sinotrans Group has started work on its first center for cold chain logistics, or refrigerated logistics, in Shanghai’s northeast Jiading District.
The mainland’s frozen food market is growing at an estimated annual rate of about 10 percent and the annual output of processed frozen food is growing at 20 percent. In the ice-cream sector, per capita consumption is still below one liter in the mainland, compared to about 6.5 liters in Europe and 12 liters in the US which suggests a huge potential for growth.
Jamie Bolton, a partner with Accenture Supply Chain Management service line, said, ‘WTO-mandated tariff reductions are allowing more foreign products to reach China’s mainland. Improvements in frozen and fresh food supply chains also are probable following the opening of the distribution sector under WTO entry.’
Source: Shanghai Daily