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China’s Cold Chain Logistics Expected to Come to Its Prominence

Date:2018-03-30 17:03:23

Chinas Cold Chain Logistics Expected to Come to Its Prominence
By Fruit Expo Organizing Committee
Roughly 95% fruits produced in China are transported at a normal temperature which results in a serious loss that about 120 million tonnes of fruit products go rotten each year. Indeed more than 50% of fruits are in need of cold chain logistics for preservation. As compared to Europe and America, China far lags behind them in cold chain logistics circulation rate that is as low as 19%. China’s cold chain system is still in its infancy, whether about the low circulation rate, inefficient preservation. The poor investment on cold chain logistics and obsolete technologies, old amenities hinder the development of cold chain market.
In view of the storage facilities, the cold storage capacity across China has reached 7 million cubic meters, with a year-on-year increase. Whereas the utilization rate for cold storage or refrigeration still remains low. For fruit and vegetable, the cold storage volume only makes up 20% of the total. What’s worse, most of the fresh produce are marketed extensively due to the lack of preservation processing and package technology. Each year in China, the fresh produce suffers loss as high as 100 billion yuan. In particular, e-commerce over these years has been well penetrated into fresh produce marketing, cold chain logistics becomes inevitable.
Status Quo of Cold Chain Logistics in China
Governments has underlined the importance of cold chain logistics and increased their efforts to improve the cold chain logistic system for agricultural products. Among which, the governments claim to support infrastructure construction of cold chain logistics and supervise the improvement of cold chain logistic industry.
Cold chain logistics has been fueled greatly by governmental policies. The cold chain market is expected to reach 470 billion yuan by 2020, at a CAGR of more than 20%. the gross profit margin rate of this field remains at 15% -20%. Owing to the further processing of agricultural products, improvement of living standard, upgrading of consumption structure, the cold chain logistics will come to its prominence.
For more detail about Chinese China’s Cold Chain Logistics Market,please reach at