THE National Development and Reform Commission (NDRC) has revealed that 20 per cent of fresh fruit and vegetables, 30 per cent of fresh meat and 15 per cent of seafood are spoiled in delivery, costing CNY100 billion (US$147 million) a year, reported China News.

To counter this, the central government has launched a five-year plan to develop an agricultural cold chain logistics system to enhance preservation and storage of fresh agricultural produce so that producers can better compete in global markets.

China's cold chain logistics system is in its initial stages of development compared to the US, the European Union and Japan, where cold chain logistics practices cover 100 per cent of poultry and 95 per cent fruit and vegetables.

This new five-year plan for agricultural produce will include the development of regional cold chain logistics distribution centres as well as reorganising resources of major players in the sector.

The plan aims to set up an overall cold chain logistics system for the country in 2015 to handle more than 20 per cent of fresh fruit and vegetables, 30 per cent of the meat and 36 per cent of seafood.

The frozen food five-year plan calls for increases in cold chain coverage to 30 per cent of frozen fruit and vegetables, 50 per cent of frozen meat and 65 per cent of frozen seafood to reduce spoilage 15 per cent for fruit and vegetables, eight per cent for meat and 10 per cent for seafood.

The plan intends to raise China's competitive standing in the global agricultural markets where it has many comparative advantages if it were not for its high spoilage rate because of an inadequate cold chain system.

Source: shipping online