Opportunity of Organic Products in China
Organic products are always being developed. The production processes follow the regulations of productivity strictly and organizations or institutions have guaranteed the products especially in 1985s local government and department of agriculture of China presented and specified the standard of quality products. It is classified into two levels namely pollution-free-products in accordance with the standard of safe – food and green products more standard. In 2003, Department of Agriculture of China added a type of certification of products. Therefore, in the present, there are three safe – products types as follows: pollution-free products, green products and organic products. The organic products certification is regarded as the most standard.
Chinese Government organized The Certification and Accreditation Administration of China (CNCA) under AQSIQ (General Administration of Quality Supervision Inspection and Quarantine of the People’s Republic of China) leading to the standard export and the system of control of organic products in China. Thus organic products in China and the import must pass the organizations, standard and processing of certification issuing following the limited time. Besides CNCA has responsibility of evaluation and authorization to the third person to represent as the examiner as well as issuing the Product – Quality Certification to others concerning with. In September 2012, there were 23 centers appointed by CNCA as the inspectors and issuing the certification in China as follows:
1. China Quality Certification Center
2. China Quality Mark Certification Group
3. Guangdong Zhongjian Certification Co., Let.
4. Gainshine Assessment
5. WIT Assessment
6. ZhongAn Authentication Center
7. Zhongshihengxin Food Quality Certification Center
8. Heilongjiang Quality Certification Center of Agricultural Products
9. China Organic Food Certification Center
10. China Environment Certification Center
11. Zhong An Zhi Huan Certification Center
12. Beijing Continental Hengtong Certification Co., Ltd.
13. Fanyuan Organic Food Certification Center
14. Liaoning Environmental Organic Food Certification Center
15. Beijing Wuyue HuaXia Management and Technique Center
16. Xingjing Science and Research Institute of Environmental Protection
17. Certification Center of Northwest A&F University
18. Organic Food Development Center, Ministry of Environmental Protection
19. China Cooperative Quality Certification Center
20. Beijing Orient Jiahe Certification Co., Ltd.
21. Beijing ECOCERT Certification Center Co., Ltd.
22. IMO Control CN Co., Ltd.
23. CERES (Shanghai) Certification Co., Ltd.
There are three centers in Guangdong namely China Quality Certification Center, China Quality Mark Certification Group and Guangdong Zhongjian Certification Co., Ltd.
All, said above, can issue Quality Certification to fresh fruits and vegetables products or processed organic products along with the perfect resource of private sector and supporting & promoting and management of government sector to develop standard and inspection technology of food in all system continuously including hustle in restoration as well as to expand the land for cultivation and cattle following the standard of organic products. At first, cultivation area was in Inner Mongolia, Jilin and Yunnan and also expanded to other places later. In the present, totally the land of organic cultivation in China is 15 million rai. It is one the biggest ones in the world. There are a number of producers of food products in China adapted and prepared to competition with foreign products. It effects the supply of organic products increasing continuously. However, although China is regarded as one of the biggest organic producers in the world but to buy organic products there is still difficult because of a small group of organic consumers. The biggest number of organic consumer is in Shanghai.
Organic Products in Guangzhou
Guangzhou is the first economic revolution area in China. Agriculture in the city has developed very much; vegetables, fruits, tea product, processed agriculture food – products. It is because the good quality of life is better continuously so the organic products are popular in term of healthy products. After China became a member of WTO, the development of organic products is a good effect to agriculture products – export that is a good way of organic products – export as well. Having effected to the present, the proportion of organic products in Chinese market is quite less because of emphasizing of export mainly. Currently there are organic products – export such as processed vegetable, soybean, other kinds of bean, cereal, green tea and herbal medicine.
The Factor of Organic Products – Potentiality in Guangzhou
1. In Guangdong province, there are many kinds of agriculture products and a huge number of consumers. In Guangzhou, there are many famous food products - shops along following many products: rice, cereal, corn and bean especially in the middle and north – east part. Consequently the production of organic products, processed products, and distribution in Guangzhou has been promoted well. Recently, in Guangzhou, there are many companies run business about agriculture products especially big supermarkets, retail stores, tourist and hotel business.
Moreover, currently, food products export & import companies in Guangzhou have trading and transportation covering over to the South and Asia. It can be seen that food business in Guangzhou is being exported slowly to foreign markets step by step as well.
2. Because of the advantage of land, Guangzhou is named as “the Big Southern Gate Spreading out the Trading over the World” and also the border of it is next to Macau, Hong Kong and South East Asia. According to the advantageous geography of the city, it can be a good effect for organic products export to foreign markets. As economy of the city has been very much developed and also convenient and perfect transportation that can help to promote the trading progress of the city very fast. Besides, it is not only an advantage of strategy but also an advantage of transportation and service industry. China showed her as open country referring to the successful World exhibition organized two times a year such as Canton Fair. As the result, it effects to urge trading of the city with foreign countries. Moreover foreign countries over the World are interested to buy products from Guangzhou.
3. Guangzhou government gives precedence to safety of food and organizes China (Guangzhou) International Nutrition& Health Food and Organic Products Exhibition. In 2014, it will be held as 15th year on 27-29 May.
4. There are many big supermarkets arranged a specific zone for organic products only in Guangzhou.
Channel of Organic Products Distribution
1. Shops for only organic products - distribution
2. Supermarket
3. Agent
4. Food Shop
5. Wholesale Market from Farm
6. Selling via Internet
7. Joining the Exhibition
Strategy of Organic Marketing
In China, development of organic marketing and attitude of consumer, in the present, distributors of organic products in China said that there are 7 significances that can appeal to market of Chinese consumers following as:
1. Products must contain nutritive value and be useful to health and new and ineresting fruits or vegetables. Besides the source of a product must be famous reflecting to a place originally of the product itself such as Thai rice and summer fruits should be from Thailand but dairy products should be from Australia and New Zealand etc. Regarding to the taste, it should depend on Chinese consumers in each area because of different likings.
2. The products must not cause the environment problems and have suitable life determination for transportation time and distribution to other cities. The transportation must be nice to preserve the fresh and beauty of the products. The most important one is that the importer can always export the products on schedule.
3. Strategy of products, firstly to import all organic products must pass the quality inspection from Chinese organization. After having received the quality guarantee logo, the imported products can sell in the markets. But some Chinese consumers did not trust Organic guarantee logo given by Chinese government authority. So the exporter should have organic food - universal standard inspection logo labeling on the products too. The products also should find easy to buy and be contained in the beautiful package and the quantity should be in suitable form neither more nor less.
4. Public relations, the exporter should cooperate with the leader to prepare Chinese information for Chinese customers. It should be published in healthy magazine. It is a good choice of marketing by making public relations in Internet and membership system because both middle and high class of the customers can use internet widely. Some of organic products exporters (SMEs) distribute their products via the internet by delivery service to home. To adaptation for the new way of life of new generation of customers, they can try the taste of those products placed on shop shelves to persuade interest of the customers.
5. To set the price, the price is the main factor of Chinese’s making decision very much because their attitude to “the expensive product is the best quality”. To set the price, it should be the price that can compete to the price of local competitor. For the premium products, the price should be high but it should be reasonable with the quality of products too.
6. Taking a look Exhibition from big cities in China to collect new knowledge technology and to seek cooperation with Chinese traders is in order to bring them develop the products.
7. To seek the agent in China and spread the products, if one is interested to do trading in China, when one found the Chinese agent, one should take them to visit the factory of products – production to make understanding about the process of quality production. One can explain technique and processes to make importers understand the process of production. It is a good chance of both sides to make better relationship of business in next step because Chinese culture, the good relationship to each other is the most importance.
More information from Department of International Trading Promotion, Guangzhou, Tel: (86) 20-8384-9453, e-mail:
Department of International Trading Promotion, Guangzhou
December 2013