From Farm to Fork FTB Asia 6 June2004 Paul French
Post-WTO entry China's 800m rural workers are faced with the prospect of competing with lower tariff imports as well as seeking to export good quality fresh produce overseas.

Historically, waste, spoilage and damage to produce was high as food moved from the farm to the consumer's fork. With profit margins becoming more important, the need for vastly improved logistics and cold chain management has become paramount, as manufacturers, retailers and consumers are all raising their quality thresholds.

In China, virtually all fresh produce moves from farm to market to consumer via several logistical stages.

Along the chain, vast improvements have occurred: retailers have installed modern frozen and chill cabinets; shippers have enhanced their reefers; and traders have upgraded their warehousing.

However, the first link in the logistical chain - what happens after the produce is harvested at the farm? - has not advanced as fast. China's agricultural system still relies on millions of smallholding farms with agribusiness yet to develop on a major scale. This means investment in agricultural technology and technical knowledge of crucial issues, such as post-harvest temperature management, food storage and packaging, is generally low.

China's rural areas remain generally underdeveloped compared with the richer coastal cities, and if the gap is not to widen still further, farmers will have to learn that maximising value by preserving product quality at the initial stage of post-harvest storage is essential.

Produce must be quickly cooled and stored in warehouses or facilities with appropriate temperatures. For smaller or more remote farms, this often means storing produce in a trailer or truck and then ensuring that proper temperature control is instigated by the receiver at this initial stage.

This has long been a problem for the farmer who, considering himself generally overtaxed and under-compensated, is not keen to invest.

However, as Steven Wolfe, a director with AllFresh Technologies in Shanghai, which advises China's farmers on how best to ensure post-harvest temperature management, urges his clients: "Better quality, appearance and nutritional content leads to better returns in the long run."

In some senses, Wolfe's message is obvious. Better post-harvest storage and control improves the shelf life of produce, reduces loss and wastage and allows for transportation of goods to more distant ports, as well as competing with produce from competitors in the US, Australia and New Zealand. "It's all about better crop returns, " says Wolfe. However convincing the Chinese farmer is not so easy.

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