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Hubei Province HUBEI Qianyu Huang 16-11-2016 Location Hubei lies in Central China, across two important rivers, the Yangtze river and the Han river. Hubei is bordered by the provinces of Henan in the north, Anhui on the east, Jiangxi and Hunan on the south, Chongqing Municipality on the west and Shaanxi on the northwest. Main facts ■ Total area: 185,900 km² ■ Population: 58.5 million (2015) Urban 33.3 million Rural 25.2 million ■ Urbanisation rate: 56.85% ■ Climate: subtropical monsoonal climate average 15°C ~ 17°C ■ Main cities: Wuhan (capital), Yichang, Shiyan, Jingmen GDP and its increasing rate of Hubei 2011- Main facts 2015 3500 25 2955 3000 2737,9 2479,2 20 2500 2225 1963,2 % 2000 15 ■ GDP: ¥2,955 billion in 2015 1500 13,8 10 11,3 1000 10,1 9,7 8,9 GDP billion RMB 5 500 ■ Cultivate area: 3420.51 kilo hectares 0 0 2011 2012 2013 2014 2015 GDP Increasing rate ■ Main crops: grain, oil-bearing crops, rapeseed Main agri-food products of Hubei in 2015 ■ Average disposable income: Production Product (million ton) Increase (%) Grain 27.03 4.6 ¥20,026 (+9.5%) Cotton 0.28 -22.4 Oil-bearing crops 3.45 1.0 Rapeseed 2.59 0.6 Tea 0.26 5.1 Fruits 6.16 0.3 Vegetables 38.49 4.8 Food industry in Hubei Ranking Ranking Main business Province Growth of output of growth income (billion) 8% value rate 21% Shandong 1712 3.58 1 19 Henan 1060 8.3 2 12 57% 14% Hubei 792.5 10.93 3 8 Jiangsu 711.5 8.9 4 11 Sichuan 655.4 5.38 5 16 Agricultural and sideline food processing Guangdong 620.5 3.21 6 20 Food manufacturing 2014 Beverage Tobacco 25/95 of the major growth-oriented industrial clusters are agri-food clusters. Food industrial clusters ■ 25/95 of the major growth-oriented industrial clusters are agri-food clusters ■ Can be divided into 4 types: – Single brand (Baiyunbian, Zhijiang, Daohuaxiang) – Based on special local products (tea, mushroom) – Green/organic food products – Others Snack food ■ 8 types: puffed grains, fried nuts, fried potatoes, fried grains, sweets, meat and fish, dried fruits, dried vegetables ■ Market size in China is 20-30 billion, the increasing rate is expected to be 15% in the following years ■ Comprising 10% in major supermarkets which accounts 5% of the total revenue Snack food • Main consumers are young women • 58.4% consumers are interested in new brands • More focus on natural and healthy food, vitamin fortified products Growing importance of eCommerce Market size of eCommerce % of online users 600 562,7 500 34 33 400 349,1 300 billion 200 93,9 79,3 74,5 100 42,6 0 33 Cellphone Pad PC ■ Largest online market in the world ■ 2/3 of the transactions were done on mobile devices ■ Average age of users is 25 Growing importance of eCommerce Market share of B2C websites of China in 2014 Amazon Tmall(Taobao) Taobao and Jingdong have more than 80% Jingdong of the market share. E-commerce and Cold chain logistics ■ E-commerce has driven the development of cold chain logistics ■ The cold chain logistics industry is expected to develop rapidly as demand for commodities like food, medicine and cosmetics ■ Cold chain distribution and storage centers provide refrigeration services for local agricultural markets ■ In Hubei total 324 food processing and distribution companies have the cold chain business Distribution channels Distribution channels Infrastructure and logistics Highway: 253,000 km Water route: 863.8 km Infrastructure and logistics Wuhan Guangzhou Hongkong Infrastructure and logistics Beijing ■ 73 train lines (2014.8) Nanjing, ■ Jingjiu: Shanghai Beijing <-> Hongkong Hefei ■ Jingguang: Beijing <-> Guangzhou Xiangyu: Xiangyang <-> Chongqing Chongqing, Chengdu Liuzhou Nanchang, Fuzhou Guangzhou, Hongkong Infrastructure and logistics Wuhan (WUH) Yichang (YIH) Xiangyang (XFN) Enshi Shiya Shennongjia Jingzhou Regulations ■ Comply with Food Safety Law ■ Must have Chinese labelling, instruction (sentence 66 of Food Safety Law) – Name, ingredients, place, net weight (solids content etc.), production date (yy.mm.dd), storage instruction, distributor – The Chinese size must be not smaller than foreign words and > 1.8 mm ■ GMP, ISO9002 certified products need to submit support documents for approval ■ Taxes due to products Useful contacts ■ Hubei Food and Drug Administration – http://www.hubfda.gov.cn – Tel: +86 27 87662639 ■ Hubei Entry-Exit Inspection and Quarantine Bureau – 588 Qintai Road Wuhan Hubei – +86 27 58906226 ■ Huazhong Agricultural University – http://www.hzau.edu.cn .
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