The opportunity & Challenges of Farmer-Supermarket Direct                    Purchase in ChinaAuthor: Dr. Dinghuan HuProfe...
China’s Agro PolicyWith 4.76% of arable land in the world, China may support 20.5% of theworld population, which is closel...
China’s Fast Developing Agriculture   Since   1980s, China’s agriculture has achieved great success.
Challenges for China’s Agro Sectors   1. Farmers’ income increases less fast    than urban residents’;   2. Agricultural...
Traditional Supply Chain of Vegetable
Seeding
Planting
Sale to collector
Wholesaler
Processing
Wholesale market in Beijing
Wet Market
It is difficult fo sell production   The price of agro production always become very    low, and farmers have not any pro...
Traditional Supply China of Agricultural Products 传统农产品供应链采购的价值增值过程    78%farmer                broker       wholesal     ...
Traditional Supply China of Agricultural Products  传统农产品供应链采购的价值增值过程farmer       78%                 broker         wholes...
Food Safety Issues           • Shanghai Pudong Clenbnterol Hydrochloride           In September 2006, over 3 00 people in ...
Fast Developing China’s Supermarkets
The big challenge of supermarkets   As fast development of supermarkets,    the competition within supermarkets    become...
The History FSDL   FSDL started in 2007 :   Ministry have meeting with CEOs of 9 biggest    supermarket, and asked the d...
Main Models of Farm-to-Supermarket LinkingPromoted by Ministry of Commerce and Agriculture, many supermarkets carryout “fa...
Supermarkets and Government in Farmer-to-supermarket Linking    Function of Supermarkets               Function of Governm...
Achievements of Carrefour’s Direct Purchase from Farmers 200 多家合作社参加项目,采购金额达 1.5 亿元。                                      ...
Number of FA                                                                                                              ...
Farmer-to-Supermarket Linking Meaningfarmer                      wholesal       Wholesale         broker                  ...
Farmers’ Professional Cooperative in Liangli Town, Dangshan                 county of Anhui ProvinceIn the three years of ...
Fujian Cooperative Case   Fujian Nongxin Farmers’ Professional Cooperative is located deep in    the mountains. There are...
Two Modes of FSDL    National Model   Local Model
Selection criteria2. FAs must comply with all Government   documents2. Proof that benefits (60%) from FA must go   back to...
Five Documents are necessary
The test of pesticides residue
Sign the contract
ID Card
Quality control
The process of FSDL        Payment      Invoice
Farmer-to-Supermarket Linking Faces Challenges                         Traditional Farmers
The Standards of Agricultural Products in Supermarkets     Reject Criteria of Supermarkets: the unqualified rate 《 10%
Story of Apple
Production Technology Challenge for Agricultural Products-         Logistics Technology—Less of cold chain
Inner Mongolia Potato Cooperative Case
Potato system in Netherlands
Fail in quality control
The self selection machine
Evolvement
From FSDL to Socomo   In November 1st, 2011, Carrefour China set up a    new company, Called SOCOMO China.   The propose...
SOCOMO in Spain   SOCOMO is a purchase department of    Carrefour group ;   SOCOMO set up in 1987 ;   Purchase from 42 ...
The model of SOCOMO in China1. Purchase teams are at fields;2. To insure the quality and food safety of agro-  food ;3. He...
Ticket minimum separated 3 levels to match destinationcountry Food Safety regulations
Ticket Minimum results & Volume exported42 Chinese suppliers have been audited for FSQ Ticket Minimum• 18 suppliers fail ...
The case of Fujian Pomelo
The purchase situation of SOCOMO
The opening ceremony of SOCOMO
New market of ASDL203Stores                     7846                     Stores
合作社同蔬果茂合作社 GAP :产品质量
Story of Papaya in Hainan province
Thank you for your attention!© Wageningen UR
Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Hu Dinghuan
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  • 19/07/12
  • 19/07/12
  • Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Hu Dinghuan

    1. 1. The opportunity & Challenges of Farmer-Supermarket Direct Purchase in ChinaAuthor: Dr. Dinghuan HuProfessor of Chinese Academy of Agriculture SciencesChief RepresentativeOffice of Wageningen University & Research Center in China
    2. 2. China’s Agro PolicyWith 4.76% of arable land in the world, China may support 20.5% of theworld population, which is closely related to the active agro policies ofChinese government. The keys of China’s Agro Policies are as follows:1. Ensure the scale of basic farmland;2. Improve the output of agricultural products in unit area through the development of agro science and technology;3. Adopt various measures to increase farmers’ income;4. Ensure the security of grains and food;5. Optimize agricultural product processing and market distribution system.
    3. 3. China’s Fast Developing Agriculture Since 1980s, China’s agriculture has achieved great success.
    4. 4. Challenges for China’s Agro Sectors 1. Farmers’ income increases less fast than urban residents’; 2. Agricultural products markets and price are instable; 3. How to improve the food safety of agricultural products; 4. How to satisfy the new needs of middle class.
    5. 5. Traditional Supply Chain of Vegetable
    6. 6. Seeding
    7. 7. Planting
    8. 8. Sale to collector
    9. 9. Wholesaler
    10. 10. Processing
    11. 11. Wholesale market in Beijing
    12. 12. Wet Market
    13. 13. It is difficult fo sell production The price of agro production always become very low, and farmers have not any profits In April and May of 2011, the vegetables’ price is at 0.08 RMB.
    14. 14. Traditional Supply China of Agricultural Products 传统农产品供应链采购的价值增值过程 78%farmer broker wholesal Wholesale er market Supplier offarmer supermarket Superma rket 12 %farmer 5%farmer 5%farmer 2RMB 2.2RMB 3RMB 4RMB 5RMB
    15. 15. Traditional Supply China of Agricultural Products 传统农产品供应链采购的价值增值过程farmer 78% broker wholesal Wholesale er market Supplier offarmer Superma supermarket rket 12 %farmer 5%farmer 5%farmer 1 day 2 days 2.5 days 1.5 days 3 days
    16. 16. Food Safety Issues • Shanghai Pudong Clenbnterol Hydrochloride In September 2006, over 3 00 people in Shanghai had suffered2006 from toxicities by Clenbnterol Hydrochloride, it involved. • several food safety events have occurred2007 Since the “Sudan Red” event, there was “Peacock green” event, and “big head” Baby event. • Melamine milk powder event2008 • Guangzhou Clenbnterol Hydrochloride20092010
    17. 17. Fast Developing China’s Supermarkets
    18. 18. The big challenge of supermarkets As fast development of supermarkets, the competition within supermarkets become Strictness 1. How to reduce the cost ; 2. How to improve the fresh of products ; 3. How to increase the food safety ; 4. How to attract more customs
    19. 19. The History FSDL FSDL started in 2007 : Ministry have meeting with CEOs of 9 biggest supermarket, and asked the directly purchase agro-production from producers ; The FSDL in 2011 : In 2011, there are 2000 supermarkets work on FSDL, and 14000 FAs take part in FSDL.
    20. 20. Main Models of Farm-to-Supermarket LinkingPromoted by Ministry of Commerce and Agriculture, many supermarkets carryout “farm-to-supermarket linking "programs, namely, supermarkets directlypurchase agricultural products from the producers. Carrefour Model supermarkets+ cooperatives +farmer members Metro Model supermarkets +leading enterprises +farmers Jiajiayue Model Supermarkets + farmers
    21. 21. Supermarkets and Government in Farmer-to-supermarket Linking Function of Supermarkets Function of Government  Provide a great amount of Improve the purchase price of training for cooperatives; agricultural products by 10%;  Support the cooperation Support the development of between farmers’ cooperatives cooperatives of farmers; and supermarkets through Improve farmers’ plant programs; technology through training ;  Assist cooperatives to get in Establish the concept of touch with supermarkets; agricultural product standards  Help solve the problems for farmers; between supermarkets and cooperatives.
    22. 22. Achievements of Carrefour’s Direct Purchase from Farmers 200 多家合作社参加项目,采购金额达 1.5 亿元。 HELONGJIANG JILIN XINJIANG LIAONING INNER MONGOLIA BEIJING HEBEI SHANDONG NINGXIA QINGHAI GANSU SHAN’XI HENAN JIANGSU TIBET SHANGHAI ANHUI HUBEI SICHUAN ZHEJIANG CHONGQING JIANGXI FUJIAN HUNAN GUIZHOU TAIWAN YUNNAN GUANGXI GUANDONG HAINAN
    23. 23. Number of FA 5 HLJ XJ JL 3 8 LN 31 6 29 TJ IM 2 23 BJ 4 - NX 1 - 60 HeB SD - QH 3 5 11 JS 11 HeN GS SX 16 16 SH TB 11 31 - AH - 31 HuB SC CQ - ZJ 9 14 13 JX GuZ HuN 23 FJ YN 15 GX TAIWAN - 27 - 8 GD 27 HN
    24. 24. Farmer-to-Supermarket Linking Meaningfarmer wholesal Wholesale broker Supplier of er market Supermafarmer supermarket rketfarmer 20-30 % Profit 10-15 % 10-15 %
    25. 25. Farmers’ Professional Cooperative in Liangli Town, Dangshan county of Anhui ProvinceIn the three years of farmer-to-supermarket linking, the number ofmembers of the cooperative increasesfrom 100 farmer households to morethan 6000 households.
    26. 26. Fujian Cooperative Case Fujian Nongxin Farmers’ Professional Cooperative is located deep in the mountains. There are more than 20 farmer households. When the manager of Carrefour visited here in 2010, he found that there are many bamboos here and then gave new orders to the cooperative, so that the market problems of farmers in deep mountains were solved and the income of poor farmers were improved.
    27. 27. Two Modes of FSDL National Model Local Model
    28. 28. Selection criteria2. FAs must comply with all Government documents2. Proof that benefits (60%) from FA must go back to farmers3. FAs must be located in the production area8. FASs have to sell what farmer number’s produces10. FAs must deliver from production area (not from wholesale market)
    29. 29. Five Documents are necessary
    30. 30. The test of pesticides residue
    31. 31. Sign the contract
    32. 32. ID Card
    33. 33. Quality control
    34. 34. The process of FSDL Payment Invoice
    35. 35. Farmer-to-Supermarket Linking Faces Challenges Traditional Farmers
    36. 36. The Standards of Agricultural Products in Supermarkets Reject Criteria of Supermarkets: the unqualified rate 《 10%
    37. 37. Story of Apple
    38. 38. Production Technology Challenge for Agricultural Products- Logistics Technology—Less of cold chain
    39. 39. Inner Mongolia Potato Cooperative Case
    40. 40. Potato system in Netherlands
    41. 41. Fail in quality control
    42. 42. The self selection machine
    43. 43. Evolvement
    44. 44. From FSDL to Socomo In November 1st, 2011, Carrefour China set up a new company, Called SOCOMO China. The propose of this company is export Chinese FAs high quality agro-food to international market
    45. 45. SOCOMO in Spain SOCOMO is a purchase department of Carrefour group ; SOCOMO set up in 1987 ; Purchase from 42 countries ; Sale to Carrefour stores in 18 countries ; In 2011, the total purchase at 550,000 t.
    46. 46. The model of SOCOMO in China1. Purchase teams are at fields;2. To insure the quality and food safety of agro- food ;3. Help the FAs to get new markets.
    47. 47. Ticket minimum separated 3 levels to match destinationcountry Food Safety regulations
    48. 48. Ticket Minimum results & Volume exported42 Chinese suppliers have been audited for FSQ Ticket Minimum• 18 suppliers fail (42%) – main reasons: no basic traceability & lack of records(TM <50%)• 8 suppliers (18%) must apply a Food Safety progress plan (TM 50%)• 5 suppliers (14%) TM between 50% and 70% can export to Asia and MiddleEast countries• 11 suppliers (26%) suitable to export according European standards (TM>70%)• 16 validated by FSQ department to cooperate with Socomo China
    49. 49. The case of Fujian Pomelo
    50. 50. The purchase situation of SOCOMO
    51. 51. The opening ceremony of SOCOMO
    52. 52. New market of ASDL203Stores 7846 Stores
    53. 53. 合作社同蔬果茂合作社 GAP :产品质量
    54. 54. Story of Papaya in Hainan province
    55. 55. Thank you for your attention!© Wageningen UR

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