How to Troubleshoot Apps for the Modern Connected Worker
Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Hu Dinghuan
1. The opportunity & Challenges of Farmer-Supermarket Direct
Purchase in China
Author: Dr. Dinghuan Hu
Professor of Chinese Academy of Agriculture Sciences
Chief Representative
Office of Wageningen University & Research Center in China
2. China’s Agro Policy
With 4.76% of arable land in the world, China may support 20.5% of the
world population, which is closely related to the active agro policies of
Chinese 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. China’s Fast Developing Agriculture
Since 1980s, China’s agriculture has achieved great success.
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.
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. 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 of
farmer supermarket Superma
rket
12 %
farmer
5%
farmer
5%
farmer
2RMB 2.2RMB 3RMB 4RMB 5RMB
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 of
farmer Superma
supermarket
rket
12 %
farmer
5%
farmer
5%
farmer
1 day 2 days 2.5 days
1.5 days 3 days
16. Food Safety Issues
• Shanghai Pudong Clenbnterol Hydrochloride
In September 2006, over 3 00 people in Shanghai had suffered
2006 from toxicities by Clenbnterol Hydrochloride, it involved.
• several food safety events have occurred
2007 Since the “Sudan Red” event, there was “Peacock green” event, and
“big head” Baby event.
• Melamine milk powder event
2008
• Guangzhou Clenbnterol Hydrochloride
2009
2010
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. 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. Main Models of Farm-to-Supermarket Linking
Promoted by Ministry of Commerce and Agriculture, many supermarkets carry
out “farm-to-supermarket linking "programs, namely, supermarkets directly
purchase agricultural products from the producers.
Carrefour Model
supermarkets+ cooperatives +farmer members
Metro Model
supermarkets +leading enterprises +farmers
Jiajiayue Model
Supermarkets + farmers
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.
25. Farmers’ Professional Cooperative in Liangli Town, Dangshan
county of Anhui Province
In the three years of farmer-to-
supermarket linking, the number of
members of the cooperative increases
from 100 farmer households to more
than 6000 households.
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.
28. Selection criteria
2. FAs must comply with all Government
documents
2. Proof that benefits (60%) from FA must go
back to farmers
3. FAs must be located in the production
area
8. FASs have to sell what farmer number’s
produces
10. FAs must deliver from production area
(not from wholesale market)
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. 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. The model of SOCOMO in China
1. Purchase teams are at fields;
2. To insure the quality and food safety of agro-
food ;
3. Help the FAs to get new markets.
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 Middle
East countries
• 11 suppliers (26%) suitable to export according European standards (TM
>70%)
• 16 validated by FSQ department to cooperate with Socomo China