Cleaner Greener China

Company Est 2001 by Japanese entrepreneur for local japanese community
- early financial success wasn’t good. Super markets were fragmented
- sold farm and returned to his business
- new firm bought in and grew through grocery expansion period
- own 2 farms in shanghai
- have 4 partner farms in north/ south china ( must be certified, inspections several times a year, partnership with SGS)
- now almost 300 people
focus is green products with cut that day and sent to customer
- can source potatoes, garlic, etc from partners – 2 shipments a week

quality:
- sgs has own standards
- governments inspect farm
- customers inspect farm and have their own teams

growing what is needed:
- selling green leafy items (spinach, bok choi)
- western salads

beijing organic farm are largest in china, and have distribution through entire country.
- shanghai market is enough for them
- demand in shanghai is best and most concentrated
- half of sales coming from chinese, and is growing

organic pricing has been stable
- hr is fastest growing cost
- intially 500… Now 1000 a month
- 30 peasants working the land

food safety issue:
- may not buy regularly for entire family, but for child or elderly

each slot has a report to record which veg has been planted. Crop rotation.

Mainly supply east china outlets. Carrefour, lotus, lianhua, jiuguang.
- wholesale has integrty issues, so not the main focus.
- main focus is retail
- home delivery service (1 year): each district has different day for delivery
- customers select via website

specialty organic retailers have different history in china. In us, they were only outlet, but in china large retailers buy organic.
- many local stores are only 20 percent organic
- lack of supply and demand
- grains.
- meat, fruit, etc are all in small quantity

its not easy to grow organic in china
- europe has advanced technics
- climate in shanghai is sever, so presentation is a problem
- no artifical lighting can be afforded

certification:
- inspectors once a year
- everthing clear, and on paper are the same as international
- inspectors are paid by farm, so they will not necessarily say much as they cannot lose fees
- they do not have real visibilty though
- best standards are at the super market: which are certified once a month

market moves from black to grey to white

inorganic product offering
- controlled pesticides used
- significantly cheaper

pestcides in china:
- cheapest is often the worst

city shop farm is only herbs – the rest of prducts are purchased. Some import

government money is being spent through relationships
- local farmers not coming to farm
- local government not doing progrmming

water through filter