China's fresh produce supply chain modernises to meet expanding consumer demand
China's fresh produce distribution network is undergoing significant transformation as logistics providers and international suppliers invest heavily in cold chain infrastructure to service the world's most populous consumer market, industry executives said at the Asiafruit Congress in Hong Kong.
The evolution reflects shifting consumption patterns among China's 1.4bn people, who increasingly demand higher quality perishable goods and greater product variety, forcing the entire supply chain to adapt rapidly to preserve product integrity from farm to consumer.
Cold chain investment accelerates
Justin Chan, representing VX Logistics, told the conference that investment in temperature-controlled logistics had intensified following the Covid-19 pandemic, driven by government, retailers and industry participants responding to more discerning consumer preferences.
"Consumers are pickier about the freshness of their products, not just imported food, but also the local brands, so cold chain has become a more frequent topic," Chan said. He noted that retailers were increasingly engaging in direct sourcing, requiring experienced partners to manage packing, storage and distribution.
The infrastructure gap remains pronounced in lower-tier cities, Chan acknowledged, though he suggested knowledge sharing and process standardisation by logistics providers could facilitate expansion into these markets.
International suppliers navigate distance and complexity
Sean Chou of Zespri International, the New Zealand kiwifruit exporter, emphasised the importance of partnership over direct control in managing China operations. Despite having invested in proprietary supply chain infrastructure, the company relies on trusted partners to navigate seasonal variability and maintain consistent quality.
"Our focus is less about controlling every step and more about ensuring that you have a great partnership," Chou said. "The strength of our partners in the global landscape is that they really understand the variability of fresh produce, but still can achieve a consistent delivery experience."
Ivan Marambio of Frutas de Chile highlighted the particular challenges facing Chilean exporters, for whom China represents the largest market despite being among the most geographically distant. Chilean suppliers have developed expedited services such as the Cherry Express to reduce transit times, but acknowledge that penetrating lower-tier cities requires further supply chain refinement.
"The last mile is a concern for us especially with products like blueberries and cherries which are very fragile," Marambio said. "In order to keep the quality high, we need consistency and you get consistency through technology."
Hong Kong launches fast-track customs programme
Belle Lam of Hong Kong Customs and Excise Department outlined a new Air-Land Fresh Lane initiative designed to accelerate movement of overseas fresh produce through Hong Kong into mainland China. The programme, developed in collaboration with Gongbei Customs and both Hong Kong and mainland authorities, utilises Hong Kong International Airport and the Hong Kong-Zhuhai-Macao Bridge infrastructure.
The initiative employs new regulatory measures and technology to streamline customs clearance and quarantine procedures, expanding distribution efficiency into the Greater Bay Area beyond Hong Kong's traditional role as an entry point.
The panel discussion formed part of the Asiafruit Congress held during Asia Fruit Logistica, an annual trade event focused on fresh produce supply chains across Asia-Pacific markets.