Friday, August 15, 2014

GLOBAL FOOD SUPPLY CHAIN RISK

This is interesting when defining global food supply chain risk as to food supply.  But what risks are created by sourcing Chinese foods with China's history of food safety?

Russia ban boom for Chinese exporters (chinadaily.com.cn)Updated: 2014-08-13 14:41

China will directly export fruit and vegetables to Russia after the Russian government banned import of agricultural products from western suppliers, according to rt.com on Tuesday.
Baorong, a wholesale company dealing with agricultural products between China and Russia, is reportedly building a special logistics center in Heilongjiang province’s Dongning, which is near the border of Russia's Far East.
According to ITAR-TASS, the logistics center will include 70,000 square meter wholesale market and 30,000 square meter warehouse, providing refrigerators and other equipment.
The construction of special cross-border zone will cost around $9.7 million. Customs clearance time will be shortened and video surveillance in the warehouse will help to eliminate double check of the cargo.
Zhang Zhikai, director of executive office of Baorong, said the refrigeration facilities will help to store some easily-preserved fruits and vegetables, such as potatoes and onions, which will boost the total exports of the company.
Refrigeration facilities will increase the fruit and vegetable trade between China and Russia, while video surveillance will reduce the clearance time, said Zhang.
Chinese producers will handle fruit and vegetables' direct exports from it, ITAR-TASS cited Zhang Chunjiao, head of the Association of Applied Economy of Heilongjiang province.
After the Russian government imposed a one-year ban on importing agricultural products from the United States, European Union, Canada, Australia and Norway last week, Russia started looking for non-western suppliers. China caught its attention as it's a large agricultural country.
Quoting Vygaudas Usackas, the EU ambassador to Russia, the report said that if the ban lasts, it could cost European Union members $16 billion.
According to reports by Zero Hedge, a business website, Brazil authorized about 90 meat manufacturers to export chicken, pork and beef to Russia. Brazilian officials also claimed that exports of corns and soybeans were expected to increase. Chile is the main beneficiary of Russia's western fish prohibition.
China and Russia signed a 30-year gas deal in May, ending a decade of natural gas supply talks between the two neighbors.
Zhou Huiying contributed to the story.