China’s total retail fresh fruit and vegetables market grew by 144.9% between 2002 and 2008 to reach a total value of RMB236.69bn (US$34.68bn) in current terms.
This compares with a total population growth of 6.36% over the same period, meaning that per capita spending on fruits and vegetables in constant 2001 prices has increased significantly. Indeed, per capita retail sales during the 2001 to 2008 period increased by 116.45%, from RMB142.7 in 2008 (US$20.9).
Robust economic growth and a subsequent climb in consumer incomes have created greater demand for more and better-quality food products, or at least food that is not tainted with harmful additives, which has meant certifiably clean produce can demand higher prices. As a consequence, sales of fruit and vegetables have remained stable within total retail food sales, in volume terms, thanks to prices remaining strong while demand has also risen.
Leading supermarket chains are now becoming directly involved in the production of fresh produce, including fruits and vegetables, for sale in their stores. The leading grocery chains had been directly sourcing their local fresh produce for a long time. But, supply problems, quality problems, the use of pesticides, trades of heavy metals, etc. have continued to make sourcing local fruit and vegetables difficult.
So retailers, such as Carrefour and Wal-Mart, have been investing a lot of time in working with farmer-suppliers to overcome these problems, improve production methods, rid the production cycle of contaminants, support viable cooperatives that can manage land, grow crops and supply quality produce more efficiently.
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