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					Opportunities and Market Entrance Strategy for
      Egyptian Orange to China Market




             JPI Consulting, Beijing



            People’s Republic of China



                   June, 2007




                        1
Forward ............................................................................................................................................. 4
I. Oranges ....................................................................................................................................... 6
    1. Chinese Oranges / Production ........................................................................................... 6
          1.1 Varieties .................................................................................................................. 6
          1.2 Outputs ................................................................................................................... 7
          1.3 Production Base ..................................................................................................... 8
          1.4 Cultivation .............................................................................................................. 8
          1.5 Production Cost ...................................................................................................... 9
          1.6 Development Tendency ........................................................................................ 10
          1.7 Existing problems................................................................................................. 10
    2. Chinese Oranges /Market ................................................................................................ 11
          2.1 Sales Channels ..................................................................................................... 11
          2.2 Wholesale Price.................................................................................................... 11
          2.3 Market Characters ................................................................................................ 13
          2.4 Packinghouse ....................................................................................................... 14
    3. Imported oranges / Imports ............................................................................................. 14
          3.1 Imports in 2006 .................................................................................................... 14
          3.2 Sales Season and the Specification ........................................................................ 15
          3.3 Packaging information ......................................................................................... 16
          3.4 Imported Price ...................................................................................................... 19
          3.5 Imports from Hongkong ....................................................................................... 21
          3.6 Inspection & Quarantine ...................................................................................... 21
    4. Imported oranges / Distribution ...................................................................................... 22
          4.1 The Main Distributing Centres............................................................................. 22
          4.2 Supermarket and Shopping Centres ..................................................................... 27
          4.3 The Sales Channel of Imported Oranges.............................................................. 28
          4.4 Terms of Payment ................................................................................................ 31
          4.5 The Major Players in the Imported Fruit Market ................................................. 32
    5. Imported Oranges / Consumption ................................................................................... 40
          5.1         Analysis of Consumption Habit .......................................................................... 40
          5.2         Analysis of Major Consumers ............................................................................. 41
    6. Imported oranges / Egyptian oranges .............................................................................. 43
II. Oranges Juice .......................................................................................................................... 46
    1. Demand of Orange Juice ................................................................................................. 46
    2. Supply of Orange Juice .................................................................................................... 46
    3. Consumption of orange juice .......................................................................................... 47
    4. Analysis of orange juice market ...................................................................................... 47
    5. Imported Orange juice in 2006 ....................................................................................... 48
          5..1            Varieties and Origins ....................................................................................... 48
          5.2             Price ................................................................................................................ 49
          5.3 Top 10 Importers .................................................................................................. 49


                                                                          2
          5.4       The main ports for importing orange juice...................................................... 49
     6. Suggestion on Egyptian Orange juice to China Market .................................................. 50
III.       Promotion Strategies and Recommendations ................................................................ 52
     1. Strategies .......................................................................................................................... 53
          1.1 Branding Promotion ............................................................................................... 53
          1.2 Marketing Promotion ........................................................................................... 54
     2 Strategic actions .............................................................................................................. 54
          2.1 Entrance Preparations............................................................................................. 54
          2.2 Media Dissemination ............................................................................................. 55
          2.3 Promotion Activities............................................................................................... 59
     3. Implementation schedule .................................................................................................... 63
     4. Budget Statement ................................................................................................................ 64
     5 Financial Projection ........................................................................................................ 70
IV.        Appendix ....................................................................................................................... 71




                                                                       3
Forward


China is one of the biggest fruit consumptive countries in the world. Orange as one
of the four famous fruits (grape, citrus, banana and apple) is loved by Chinese. In
2006, China produced about 2.56 million tons of oranges, among which there is about
1.2 million tons of navel oranges and about 0.1 million tons of Valencia. China
imported over 63,000 tons of oranges from USA, South Africa, Australia, etc through
China Custom in 2006. It is said that Hong Kong imports about 100,000 tons oranges
every year and about 50% go to mainland market. So it is estimated that in 2006 about
110,000 tons of imported oranges have been consumed in mainland China.

Egyptian orange is famous in the world. According to the report provided by the
information center of Egyptian government, the total export amount of the fresh and
dried orange reached to USD54, 180,000, representing 2.18% of the total export
amount of the world. Egypt is the ninth country of the world which exports orange,
it exports the orange to about 49 countries, and 5 countries of them represent 73.16%
of the total export amount. The first one, U.K., USD7,470,000, representing 13.79%;
Oman holds the second place, USD5,800,000, representing 10.71%; the third one,
Holland, USD3,270,000, representing 6.04%; Hong Kong is the fourth one,
USD2,020,000, representing 3.73%.

When Premier Wen Jiabao visited Egypt in June, 2006, China and Egypt signed an
agreement Sanitation Protocol of Egyptian Orange Exported to China, it created an
opportunity for Egyptian orange entering China market. In March of 2007 the
Memorandum of Understanding for importing oranges from Egypt to China has been
signed between the Egyptian Minister of Agriculture and the Minister of Chinese
Quarantine. In the beginning of April, 2006, an Egyptian orange delegation which
consisted of the main Egyptian orange planters and exporters came to China, and
visited the fruit markets in Beijing, Guangzhou and Shenzhen. They discussed the
competition of Egyptian orange in Chinese market with Chinese importers, and came
to a primary cooperation agreement. In May of 2007, the Egyptian Valencia started to
sell in Beijing and Guangzhou.

It is believed that China is the most important consumable market in the 21st century
and developing at the highest speed, the Egyptian orange will have a promising
market in China. But Egyptian orange just entered China market, and it is
unacquainted for Chinese consumers. There are also many powerful competitors in
this market. For the Egyptian orange export club, it is significant to get the knowledge
and understand comprehensively the situation of Chinese orange market, so that they
can adopt the right promotion and marketing strategies, and make Egyptian orange to
be a brand in China market. Based on this purpose, the report introduces and analyzes
comprehensively the Chinese local planting, consumption, process and distribution, as
well as the supply, consumption and distribution of Chinese imported orange and


                                           4
orange juice. This report also gives recommendations and suggestions on Egyptian
oranges entering Chinese market.

This report consists of four sections. The Chinese local citrus variety, production,
main planting zone, planting mode, cost, development tendency, existent problems,
distribution channels, price, packing and process are described in the first part. This
part also introduces the origins of the import oranges, import seasons and
specification, price, consumers and partiality. Part 2 analyzes the demand, supply,
consumption and import status of orange juice of China. Part 3 describes the Egyptian
orange marketing strategies, and advises to adopt some marketing measures, such as
entrance design, media dissemination and promotion activities.

We finished this report by using the measures of desk research, direct interview and
expert pulling. The information and data which are referenced in this report came
from China Customs, National Bureau of Statistics of China, Ministry of Commerce,
business database, relevant associations, newspapers and magazines, the biggest citrus
importer, distributor of China and big fruit markets in Beijing, Shanghai, Guangzhou
and Shenzhen.




                                          5
I. Oranges


1. Chinese Oranges / Production


1.1   Varieties

In China the citrus fruits are generally divided into three types, orange, mandarin with
thick skin and others. Major types and species of citrus in China and their dominant
producing provinces are shown in the following table

Table 1. Main Varieties
                                                                             Major
            Types                              Species
                                                                      Producing Provinces
 Orange                        Navel orange                          Guangdong
                               Valencia late                         Sichuan
                               Jing orange                           Zhejiang
                               Xinghui orange                        Fujian
                               Anliu orange                          Hunan
                               Gailiang orange                       Guangxi
                               Blood orange                          Hubei
                               Hamlin                                Jiangxi
                               Trovita
 Mandarin with thick skin      Satsuma mandarin                      Guangdong
                               Pen mandarin                          Sichuan
                               Red orange                            Zhejiang
                               Bendizhao                             Fujian
                               South Africa orange                   Hunan
                               Zhao orange                           Guangxi
                                                                     Hubei
 Others                        Pomelo                                Guangdong, Zhejiang,
                                                                     Fujian, Guangxi
                                                                     Guangxi,
                               Golden Orange                         Jiangxi
                                                                     Sichuan Wanxian
                               Lemones                               Sichuan        Anyue
                                                                     County




                                           6
1.2   Outputs

In China currently 94% plantation area of citrus distributes mainly in 10 provinces,
providing 95% outputs. Hunan, Jiangxi, Sichuan, Guangdong, Fujian, Guangxi,
Hubei, Zhejiang and Chongqing are top nine provinces. But Fujian and Zhejiang
provinces stand as the first two with annual output exceeding 2 million tons, and the
annual outputs in Sichuan, Hunan, Guangxi, Guangdong and Hubei are over 1 million
tons.

The plantation area can be divided into three parts according to the varieties and
applications. In the south of Zhejiang, west of Fujian and east of Guangdong, unshiu
Marc (Wenzhou Orange) is planted and processed as cans for exporting. In the south
of Jiangxi, south of Hunan and Guangxi, the navel oranges and other citrus are for
direct consuming. In the upper and middle area of Yangtze River like Sichuan,
Chongqing and Hubei, the oranges and other citrus are planted for both direct
consuming and processing orange juice.

In 2004 the total plantation area and output of citrus reach 1.6 million hectares and 14
million tons, but in 1994 the total plantation area and output are only 1.12 million
hectares and 6.8 million tons. Both the plantation area and the output are increasing
in the past two years. In 2005 the total plantation area has reached 1.71 million
hectares with the output of 15.92 million tons. In 2006 the total output of citrus
reached 16 million tons.

Figure 1. The citrus plantation area and output in 1994-2006
                                             Plantation area
   1800                                      Output
   1600
   1400
   1200
   1000
    800
    600
    400
    200
      0
      1994            2004            2005             2006




The total plantation of navel orange in China in 2005 reached about 173,000
hectares, holding the first place in the world. The output is about 1.2 millions tons,
which is just under that of American. But the output capacity out of each hectare is
still very low.

The plantation of Valencia in China is over 13,000 hm2. The annual output accounts
for about 0.1 million tons. Valencia is grown mainly in Jiangan, Sichuan Province,
Changshou, Dianjiang, Yunyang and Zhongxian of Chongqing, Putian and Nanjing of
Fujian province.

                                             7
Compared with the American valencia, Chinese valencia’s main weaknesses in quality
are heavy sour, coarse texture, with not nice appearance. The fact in climate
differences is that the average temperature in January in most of China
citrus-producing areas is very low, and in spring the temperature is increasing fast. As
the difference in daily temperature is not too much, the average relative humidity is
low.

1.3   Production Base

In China most of the orchards are owned and managed by the private companies and
farmers. The biggest orchard with over 3,000 hectares is located in Beihai, Guangxi,
owned by a private company. It was sold to Asia Fruit in 2006. Another big one is
in Guangdong Heyuan, owned by a private company with about 7,000 mu (466.4
hectares), in this orchard 60% are navel oranges, others are lemon and grapefruits.
The middle and small-sized orchards are owned and managed by private farmers.

The following map shows the main oranges growing base in China: Hunan, Jiangxi,
Sichuan, Guangdong, Fujian, Guangxi, Hubei, Zhejiang and Chongqing, among
which Jiangxi Gannan navel oranges as fresh consumption has a better reputation on
quality in the market.
Figure 2:Orange growing base




1.4   Cultivation

Irrigation: In China most of the orange trees are cultivated by flood irrigation. But
in the area of Three Gorges and some rich places, the oranges are cultivated by drip
irrigation manufactured by Chinese companies and Israeli companies.

Pesticide and Fertilizer: The producers of the pesticides and fertilizers for orchards
are state-owned companies and foreign companies. But the distributors of pesticides


                                           8
and fertilizers are mainly private companies.  The local citrus research institutes are
responsible for educating and training the citrus farmers and give them the
recommendations on pesticide and fertilizers for orchards by holding seminars and
training courses. The citrus farmers can get the government subsidy on purchasing
pesticide and fertilizers based on some government policies.

In some orange growing bases, virus-free seedling breeding system is being built. The
local government and orange farmers are paying more attention to optimal
fertilization and promoting the use of organic fertilizer and bio-fertilizer while
decreasing the usage of chemical fertilizer.

Technology:
Oranges covering with bags before harvest is adopted by most of the farmers. The
local government also promotes the farmers to use biodegradable-pesticide-residues
technology to substantially improve fruit uniformity. “The big sticks Pruning” is
being done to improve the sunlight to the tree-crown, in this way to improve the
quality of the fruit appearance. The orange farmers are also promoted and trained with
the techniques of pollution-free pest control, agriculture integrated control measures
and the usage of bio-pesticides for pest control.

Controlling the humidity of the soil before harvest is also adopted to increase the
sugar-contain of the oranges and improve the orange quality.

1.5   Production Cost

Producing citrus products is a labor-intensive industry.           According to the
investigation of the citrus cost around the world, the production cost of orange and
other citrus in China is 0.6-1.0 RMB/kg, which is half of that in America as for
producing the same variety.     The production cost of growing oranges in China is far
less than in America, Spain, Australia and other countries. The cost of pesticides
and fertilizers have not much difference between China and the above mentioned
developed countries, but the labor cost for harvesting oranges in China is much
cheaper. In developed countries, it is estimated that the harvest cost takes 40% of
the total cost. In 2004 in China the production cost of oranges is 0.9 RMB/kg.
Table 2. The labor cost in orchards for growing oranges.
        Year                       Province                     Cost (RMB/mu)
1998                  Guangdong                            910.35
1998                  Chongqing                            752.93
2000                  Guangdong                            1296.75
2000                  Guangxi                              441
2002                  China                                596.7
      1 mu = 666.66 square meters



                                          9
1.6     Development Tendency

China is planning to concentrate the citrus plantation from scattered regions to some
areas with advantages for citrus plantation to promote the qualities of Chinese citrus.
53,330 hectares of the new advantaged area are located at the upper and middle of
Yangtze River. 93,300 hectares are located in south of Jiangxi and Hunan. Another
20,000 hectares of new citrus gardens has been planned in Luzhou city, Sichuan and
half of this project has come into being.

In 2004 mandarin account for 65% of the total citrus output in China, oranges holds
the second position of 20%, pomelo accounting for 14%, lemon accounting for
0.5% and the rest 0.5%. But in 2006 mandarin changed to 70.2%, oranges 16%,
pomelo 11.7% and the rest varieties 1.3%.

According to the government’s long-term development policy, the main provinces
producing citrus are changing the citrus output structure, increasing the percentage of
citrus with the harvest time in April and May while controlling the citrus harvested in
early Nov and Dec. It’s required the plantation of Valencia should reach 20% of the
total citrus area. For example, Changshou city in Sichuan province is a key area
planting Valencia. It’s planned to increase the plantation area in Changshou to 13,000
hm2 and the annual output of 300,000 tons in 5-8 years.

Figure 3: Citrus output by varieties

       80%
       70%
       60%
       50%                                                             Mandanrian
       40%                                                             Orange
       30%                                                             Pemelo
       20%                                                             others
       10%
        0%
                     2004                      2006




1.7     Existing problems

Although China is developing oranges very quickly and trying to improve the quality
of oranges, the following existing problems still prevent the China oranges from
competing with the imported oranges. It is said that Chinese oranges needs at least 15
years to have the abilities to fight with imported oranges in the same platform.

     Orange trees are becoming older and older, especially in Sichuan, Hunan.
     The long-time chemical fertilizer makes the soil very poor.


                                          10
     The oranges variety is backward.
     The technology for orange plantation and processing is uncultured.
     Farmers are willing to plant other economic crops with more profits. The
      related science and technology departments of local government developed new
      varieties from time to time to encourage the farmers to plant with financial
      supports, so the farmers are more willing to plant other new varieties.
     Some Jiangxi unscrupulous traders even dyed oranges with chemicals to make the
      oranges with nice color to sell at higher price,which brings bad reputation to
      Gannan oranges.

2. Chinese Oranges /Market


2.1     Sales Channels

The oranges are mainly distributed in the wholesale markets and then to supermarkets,
hotels, fruit shops, fruit booths in the streets, etc in and near the cities. The following
three ways are popular.

1. The fruit dealers from the orange production base rent the booth/facilities/cold
   storages in the wholesale markets in big cities and sell the oranges by themselves.
   The booth/facilities/cold storages can be rented by year or by season. This kind of
   style can be found more in Beijing, Shanghai, Zhengzhou, Shengyang ,etc.

2. The fruit wholesalers from the wholesale markets, especially in Guangzhou,
  purchase the oranges in the production area by themselves and sell in the market.
  Usually the fruit wholesalers have their own booths in the wholesale market.

3. The fruit dealers from the production area purchase the oranges and consign the
    wholesalers in the fruit wholesale market to sell. The wholesalers charge the
    commission 3-7%. Most of the fruit dealers from Sichuan, Hubei orange
    production areas adopt this way to sell in Beijing, Guangzhou and Shanghai.

2.2     Wholesale Price

The wholesale price of the oranges is different in different markets and seasons.
Usually in big cities and during the holiday time (Spring Festival/ around Feb
according to Chinese calendar, May Holiday (May 1-7), Moon Cake Festival
(Sept-Oct according to Chinese calendar), Oct holiday ( Oct 1-7), the price will be
higher. The following table shows the average wholesale price in the market in Jan
of 2006




                                            11
Table 3. Orange price in Jan of 2006.
          Wholesale market                               Original                 Price (RMB/kg)
Zhengzhou Fruit Wholesale Market           Gannan orange                         8.6
                                           Sichuan, Guangxi, Hubei oranges       2.4
Beijing wholesale market                   Gannan oranges                        4.8-6
                                           Sichuan oranges                       2.8-3
Guangdong Tianpin wholesale market         Gannan oranges                        3-3.6
(Class II)
In the supermarket in north China          Gannan oranges                        10-12
                                           Sichuan, Hunan, Hubei                 3-4
                                           Imported oranges from the States      12-18
                                           and south Africa
Source: Information Center, MOA, China

According to the information from Shanghai Longwu Imported Fruit Market, the
wholesale price of local oranges is around 5RMB/kg. The wholesale price of
Guannan oranges with high quality can reach 7RMB/kg. Usually the average
wholesale price for 15kg/carton box is about 75-80 RMB/carton,the high quality
Ganan orange can sell at 90 RMB/carton box. The following is the wholesale price
of local oranges with high quality in Shxanghai, Beijing and Guangzhou market in
2006-2007.

Wholesale price of in Shanghai                                                        (RMB/kg)
           Oct.       Nov.     Dec.             Jan.       Feb.       Mar.       Apr.    May.
Wholesale 4-6         4-6      4-6              6-8        6-8        4-6        4-6     4-5
Price
The wholesale price will change according to the supply and demand in the market. If the
purchasing price is low, but the demands in the market is high, the price will increase high.


Wholesale price in Beijing                                                    RMB/carton 15kg
           Oct.        Nov.            Dec.           Jan.        Feb.       Mar.     Apr.
Wholesale 100          80              80             100-120     100-120    120-130 120-130
Most of the wholesalers in Beijing market, they sell local oranges on consignment base. They sell
oranges as the agent of the local traders from the orange production base. There are a few
oranges in the market during Mar and Apr, if the local oranges kept in a good condition, the
wholesale price is getting higher.

Wholesale price in Guangzhou                                            (RMB/carton 15kg )
           Oct.       Nov.             Dec.           Jan.        Feb.    Mar.     Apr.
Wholesale 70-100 80-100                120-140        120-140     120-140 100-110 80-100
Price



                                                 12
The wholesalers purchase local oranges mainly in Oct and November. The
purchasing price is about 4-6 RMB/kg. They keep the oranges in the cold
storage. During the Spring Festival, the wholesale price is much higher than normal
months. But in April, the price is going down because of the quality after long time
in cold storage.

Usually the orange wholesale dealers use the following ways to sell oranges in the
market.
1) The dealers contract with the farmers and manage the orchards by themselves.
   They will treat the oranges (washing, waxing, polishing, packing) by themselves
   or contract with the packhouse for the orange treatment. Then they ship the
   packed oranges to the market for selling.
2) During the harvest seasons, the dealers purchase the oranges from the local
   farmers and paid the processing fee to the local orange packhouse for treatment,
   the dealers provide the carton box and other materials.

The fruit dealers purchase oranges from the farmers at the price of 3-6 RMB/kg.
Usually they purchase large quantities in Nov-Dec and then keep in cold storages. The
following table shows the purchasing price of oranges with high quality from the
farmers.
                                                                        (RMB/kg)
Variety      Oct           Nov          Dec         Jan            Feb
Navel        4.4           3.3-3.5      3.3-3.5     4-6            4-6



2.3   Market Characters

Wholesale markets sell the goods in general cargo with rare middle and top grades
fruits
Some dealers in Beijing and Guangzhou sell the navel oranges from south of Jiangxi
(Gannan) in 20 kg/carton box and zhongshan yangshi oranges in 30kg/carton box,
The oranges in carton boxes are in good quality. The oranges in lower quality are sold
in bulk and in general cargos.

The navel oranges from Sichuan and Hubei impact the market by low price.
In the north fruit market, oranges from Meishan in Sichuan, Zigui in Hubei, Guangxi,
and Chongqing occupy the whole market with low price, which are sold mainly to the
vendors in the city. The fruit market center in Zhengzhou has wholesaled this kind of
navel oranges 30 lorries everyday in the season of orange harvest in the past 2 years.

The navel oranges in the supermarkets in north China are inclined to low grade.
According to the quality of the navel oranges in some large-scale super-markets in
Henan, Shanxi and Shandong provinces, the quality of the navel oranges in super
markets are inclined to low grade. The quality of the navel oranges from Sichuan
                                         13
and Hubei are even lower, which have a great disparity between the navel oranges
from South Africa and America.

More and more fruits are from the south to the north in Chin
With the development of the road and railway communication, various of fruits
planted in the south are transported into the north, and the varieties and the quantity
are increasing year by year, which enrich the fruit market in the north. For example,
Hainan Green oranges , Guangdong granulated sugar oranges, Fujian lu oranges,
Hunan sugar candy oranges, Jiangxi Nanfeng honey oranges, Sichuan, Hubei navel
oranges can be seen everywhere in north wholesale markets and super markets.

2.4   Packinghouse

In China the orange commercialization (washing, drying, waxing, polishing, sorting,
packing, etc) is less than 5% of the total yields. Due to the effects of technology and
hardware condition, in the past years, the equipment/facility/wax/technology for
orange commercialization are mainly depended on import.

In the past 10 years, the packinghouse of orange is being adopted by the business
people from Zhejiang, Hunan, Hubei, Guangdong, Fujian, Sichuan and Chongqing.
They imported the overseas advanced technologies and equipments and set up the
packinghouse in China. The quantity of fruits processing has increased very quickly
in recent years.

Till 2006 China has imported more than 100 large and medium-sized product lines
(each line can process 2-20 tons of oranges per hour).    There are also a lot of
small-sized packinghouses with the machines and wax made in China.

In China the big orange companies like Gannan Oranges, Yangshi Orange, etc, have
their own orange packinghouses. They pack oranges for their own products and also
charge the medium and small size companies for treating oranges for them. Usually
the processing cost including washing, waxing, polishing, packaging, etc is 0.2-0.3
RMB/kg. The carton box, gluey band, sticks, etc will be provided by the owners of
the oranges, who are the medium and small size companies. The total cost of carton
box, gluey band, etc is about 8 RMB/carton.

Appendix I is the profile of the two packinghouses.

3. Imported oranges / Imports


3.1   Imports in 2006

In 2006 China has imported oranges from the States, South Africa, Australia, Spanish,
and Algerian, etc. The total quantity is 63,433,388 kg with USD 42,245,773, among
which 30,445,113 kg with 19,276,080 USD is from Guangzhou custom and
                                          14
13,794,760 kg with 10,012,846 USD is through Shanghai custom. The imports of
63,433,388 kg do not include the oranges through HK to mainland. It is said that in
recent years Honkong imported about 100,000 tons of oranges per year from all over
the world, among which about 50% is transferred to Guangzhou, then distributed to
mainland China.

Table 5.   Imported oranges during Jan –Dec 2006
                                                                         CIF China
Varieties             Origin              Quantity(Kg) Amount($)      Average
                                                                      CIF
                                                                      Price($/Kg)
Orange               Total                63,433,388    42,245,773    0.67
(navel oranges and American               48,294,132    32,194,328    0.67
Valencia)          New Zealand            8,515,495     5,541,907     0.65
                   South Africa           4,828,480     3,283,928     0.68
                   Thailand               864,860       584,432       0.68
                   Argentina              792,000       533,000       0.67
                   Taiwan                 58,383        49,016        0.84
                   Uruguay                49,858        36,107        0.72
                   Australia              22,680        16,380        0.72
                   Brazil                 7,500         6,675         0.89
                   Australia              477,738       234,520       0.49
                   Argentina              281,300       141,077       0.50
                   Thailand               243,706       167,176       0.69
                   Taiwan                 18,136        18,407        1.01
Source: China Customs

3.2 Sales Season and the Specification

The following table shows the main sales season and the sizes of imported oranges in
China market.

Table 6: Sales season and sizes
     Variety            Main Sales Season              Main Size (20kg/carton)

Fruits from California, USA

     Navel                    Nov - next Mar           56, 72,88,113

     Valencia                 Apr - Oct                56, 72,88,113

Fruits from South Africa


                                           15
      Valencia                 June - Sept              40,48,56,64

      Navel                    Aug-Nov                  40,48,56,64
There are a few navel oranges from the States in the market during April and May, but
the quality is not good.

The following is the information about the orange size from the wholesalers.

1) Dalian Yidu Group
         Variety\size                 113             88        72        56
In Shanghai market             20%                  80%
Navel &Valencia
In Beijing Market              Only for hotels                40%       60%
Navel &Valencia

2) Shanghai Dole Food Co., Ltd
    Variety\size             56                   72          88
Navel orange         40-45%                40-45%          10-20%
Valencia
In north China only the size of 56, 72 can be sold well. But in Shanghai and
Guangzhou the size 88 can also be sold well.

3) Hongkong Daily Fresh in Guangzhou Jiangnan Fruit wholesale market
  Variety\size        56               72              88             113
 Navel orange 10%               60%                               30%
Valencia

3.3    Packaging information

The packaging information of American oranges imported to China is listed in the
following table.
Table 8. Packaging of imported oranges from the States

       Size of the container                                40 RF

Net weight of carton                                                           over 20 kg
No. of carton/container                                                900- 1000 cartons
Net weight of container                                                  About    20 tons
of pallets /container                                                       16-20 pallets
                                                                         54 cartons/pallet
No of cartons /pallet                             ( 6 layers with 9 cartons in each layer)
Notes:

                                             16
1. In Guangzhou Jiangnan wholesale market, most of the Sunkist packaging was
found 22.5kg/carton box in May of 2007.
2. Normally the South African oranges are shipped to China in 80 carton boxes/pallet
on the sea for about 40 days, the quality is proved OK.

The following carton boxes are very popular in China market. Most are from the
States with Sunkist branding name, but some without.




                                        17
The following is the wooden box for imported oranges from Spain, 15kg/box.




The requirements on packaging are listed below base on the feedback from the
imported orange dealers in China.

Table 9. Comments on packaging for imported oranges
              Items                                   Description
Material of the box               Carton box is more welcomed, though it is not
                                  hard enough and sometimes the oranges are
                                  pressed and changed the shape. But it is
                                  convenient.
                                  The carton box should use craft paper and strong
                                  enough for shipping, which will be helpful for
                                  sales in the market.
Color of the carton box           The color should be fresh and shiny. The white
                                  color Sunkist carton box is regarded easy to be
                                  dirty, which is not good for sales.
The design of the carton box      The design of the carton box should be

                                        18
                                         concision.     Only in English. The Egyptian
                                         culture idea in the carton box. will be helpful for
                                         sales
Weight                                   15 kg /per box is accepted.
                                         But some dealers in Guangzhou prefer 20kg/box.
                                         The Sunkist 22.5kg/box is regarded as too heavy
                                         and the oranges are pressed and the shape is
                                         changed. The pressed oranges can not sell at
                                         the same price.
Pallet packing                           The dealers emphasize it is a must to use the hard
                                         paper ribbon board to strengthen the carton boxes
                                         in the pallets. With this packaging, at least 15
                                         RMB more can be sold per box.
                                         The importers also suggested to ship 80 carton
                                         boxes/pallet, which can lower cost.




3.4   Imported Price

In 2006 China has imported 63,433,388 kg oranges from overseas with USD
42,245,773 in total. The average price is 0.67 USD/kg.

Table 10. Average Price of imported citrus in 2006
  Varieties Orange     Citrus     Broad-leaved Half-bred                Pomelo    Lemon &
                      Tankan          citrus       oranges                        Citrus
                                                                                  aurantium
Average         0.67    0.60             0.55               0.80        0.79      0.87
CIF
China($/Kg)
Source: China Custom

The following is the price information from the imported orange dealers in the market

1) Mr. Shi Yubing, Shanghai Longwu Fruit Wholesale Market
                                                                              CIF Shanghai
      Variety                    Class                  Price in 2005      Price in 2006
                                                        (USD/20kg)         (USD/20kg)
Navel oranges          Class I                       18-23              23-26
Valencia               Class I                       19-20              25-28

2) Ms. Gao Haiyan, Shanghai Dole Food Co., Ltd
In 2007 the highest price is CIF China 28 USD/18.5kg in carton box (Valencia and
                                                19
navel orange).   In normal year the average price is CIF China USD 18/18.5kg carton
box.

3) Mr. Wong Man Kit, the imported fruit dealer in Guangzhou Jiangnan Fruit
Wholesale Market. The following is the wholesale price in Guangzhou Jiangnan
market.
     Year         Month            Original                  Price
In 2005-2006    Dec - May USA                       150-260 RMB/20kg
                            (navel and Valencia)
In 2007         Dec - May USA                       200-360 RMB/20kg
                            (navel and Valencia)

4) Mr. Cheng Wende, the imported fruit dealer in Guangzhou Jiangnan Fruit
Wholesale Market. The following is CIF HK price in 2006 and 2007. According to
Mr. Cheng, normally the price of the navel oranges is higher 1-2 USD/20 kg carton
box than Valencia.

         Variety                       2006                          2007
Navels, Valencia              16-19 USD/20kg carton         28-32 USD/20kg carton

The difference of the price based on the sizes is about USD 1-2/carton box. e.g. the
price of the size 72 pieces/carton box is USD 20, the size 88 is 19 USD/carton
(sometimes the price of the size 72, 88 is the same), the size 56 is 18 USD/carton, the
size 113 is 17 USD/carton.

The following table shows the facts which impact the price of the imported oranges.
Table 11. The facts influencing the price of imported oranges.
                                                   Description
          Facts
Season’s impact             In Chinese tradition festivals and holidays, the price is
                            increasing a lot, especially during the traditional Spring
                            Festival and Moon Cake Festival.
Size impact                 In North China, the consumers prefer the big size.
                            But in south China, the small size 88, 113 pieces/box are
                            OK, especially when the price is increasing higher, 113
                            pieces/carton box can also sell well.
                            In wholesale market, the price is the same no matter of
                            the size. But in north China the small size is hard to sell.
                            If after days the small size oranges can not be sold, the
                            dealers have to lower the price to sell.
                            In Shanghai wholesale market, the size 72, 88 sells well,
                            The size 88 sells better than size 72 normally. But
                            during Spring Festival the Shanghai people also choose
                            the size of 56, 64 as gifts to their relatives and friends.

                                          20
                             In Beijing only the big size can sell well.
                             In Guangzhou wholesale market, the size 72, 88, 56, 64
                             can sell well since the dealers from all over China come
                             to Guangzhou to buy fruits.

Appearance impact            The color and shape impact the price. The consumers
                             like the oranges with fresh and shiny color. The size
                             should be well-proportioned in one box. The smooth
                             skin sells well with higher price.

Brand name impact            Famous brand represents high quality, nice taste, trustful,
                             etc. Brand name impact the purchasing behavior of the
                             consumers a lot.

3.5   Imports from Hongkong

It is known only getting the permission from Chinese government, the orange is
allowed to be imported to mainland China.              The oranges from some
countries/regions are not allowed to be imported to China. In order to have those
not-allowed oranges to China, the businessmen import the oranges through Hongkong
and then ship to Guangzhou Jiangnan wholesale market. They pay the custom duty
and VAT, but apply to the Custom in the name of other permitted products. It is said
Hongkong imported about 100,000 tons of oranges and re-export about 50% to
mainland China. The importers to supply imported fruits to Guangzhou Jiangnan
wholesale market are Hongkong companies.

3.6   Inspection & Quarantine

Only with the report of quality inspection and quarantine from the related government
departments, the imported fruits are allowed to leave the ports and distribute in the
market. The related units include:

1. Stated-level: General Administration of Quality Supervision, Inspection and
Quarantine of the People’s Republic of China (AQSIQ) is a ministerial administrative
organ directly under the State Council of the People’s Republic of China in charge of
national quality, metrology, entry-exit commodity inspection, entry-exit health
quarantine, entry-exit animal and plant quarantine, import-export food safey,
certification and accreditation, standardization, as well as administrative
law-enforcement.
2. Provincial-level: Provincial Entry-Exit Inspection and Quarantine Bureau
3. Municipal-level: Municipal Entry-Exit Inspection and Quarantine Bureau

It is a must to do the quality inspection and quarantine for the imported fruits in the


                                          21
local Municipal Entry-Exit Inspection and Quarantine Bureau before releasing the
fruits from the port. The quality certificate issued by the Bureau is official with force
and effect. If the importer of the fruit doubts the result of the quality certificate, he/
she can apply for re-inspection and quarantine to the upper-level Bureau, e.g.,
Provincial Entry-Exit Inspection and Quarantine Bureau or General Administration of
Quality Supervision, Inspection and Quarantine of the People’s Republic of China.
But if the shipment can not pass the inspection and quarantine in the municipal level,
the owner of the shipment will not apply for re-inspection and quarantine because of
the shortage of the shelf life. They will try their best to get the fruits release in time.

The following companies are active in doing quality inspection and quarantine as the
third party to provide the quality certificate for the importers and exporters in China.

Table 12. Information of the companies on quality inspection and quarantine
No.      Company Name                   Tel                      Website
1     SGS China                0086-10-68456699        http://www.cn.sgs.com/
      With 33 offices all over
      China
2     CCPIT                    0086-10-58301651        http://www.ccus.com.cn/
3     Pony Test Center         0086-10-82618116        http://www.ponytestsh.com/
4     Sky Test Center          0086-755-26727998       http://www.skyte.com.cn/



4. Imported oranges / Distribution


4.1    The Main Distributing Centres

The main imported fruit distributing centers are located in Guangzhou, Shanghai and
Beijing.

In Guangzhou

Guangzhou has become the biggest imported fruit distributing center in China, which
based on the following advantages:
   1) Guangdong is the first province to start imported fruit business in China over
      twenty years ago,
    2) Guangdong is the first opened province to overseas countries with favorable
       policies from Chinese government,
    3) Guangdong is one of the richest provinces in China, it is with good location of
       sea ports in Guangzhou, Shenzhen Chiwan, Shenzhen Yantian,etc
    4) Guangdong has the flexible and convenient imp & exp procedures,
    5) Guangdong has rich experience on imported fruits with satisfied service sense,
       etc.

                                            22
In China, the first imported fruit distributing center was set up in Huadu near
Guangzhou city, in 1998 it moved to Lishui, Foshan city. In 2004 it moved again to
the current site – Guangzhou Jiangnan Fruit & Vegetable Wholesale Market.

Class I wholesale market

Guangzhou Jiangnan Fruit & Vegetable wholesale market is the Class I wholesale
market, from where the imported fruits are distributed to all over China except Inner
Mongolia and Tibet.

This market was established in 2001, over 200 kinds of vegetables are sold there, it
provides 80% of the vegetable demands in Guangzhou. In 2004 the market started
to sell the imported fruits.   Over 70% of imported fruits in China are traded in this
market to all over China, mainly to Guangzhou Municipal, Pear River Delta, Beijing,
Shanghai and other big cities, etc.

Figure 4. The imported oranges from Guangzhou to all over China




Class II wholesale market
In Guangzhou the important Class II wholesale markets is Guangzhou Tianping Fruit
Wholesale Market. This market is located in Guangzhou Tianpingjia Xinhua Road.
The daily customers visiting this market reach 8,000 people / time. In 2006 the fruit
trading amount (including Chinese fruit and imported fruits) is over 200 million kgs
with 1.16 billion RMB. It is the biggest Class II wholesale market in Guangzhou.

In Shanghai

Shanghai is the second biggest imported fruit distributing center. As the Chinese
government allows more and more kinds of fruits to China through Shanghai port,
Shanghai is becoming more convenient to import fruits directly and officially. At

                                         23
the same time, Shanghai has such a good location with a lot of the richest Yangzi
River Delta cities surrounding. Therefore Shanghai wholesale market is believed to
become the biggest imported fruit distributing center in China in the coming years.

Class I wholesale market
Shanghai Longwu Imported Fruit wholesale market is the Class I wholesale market.
In 2006 it is estimated that 1,800 containers of imported fruits have been distributed
in this market, among which, about 30% is regarded as oranges. (Source: Mr. Cao
Shouan, manager of Shanghai LongwuLu Imported Vegetable and Fruit Wholesale
Trading Market.)

Shanghai Longwulu Imported Vegetable and Fruit Wholesale Trading Market was
jointly sponsored, invested and founded by the Shanghai Caoan Cailanzi Co.,Ltd.,the
Shanghai Qifan Science and Technology Co.,Ltd., as well as the Shanghai Shenhong
Corporation. It is a large wholesale trading market to have direct access to world fruit
and vegetable markets. Its main business is engaged in imported fruits while handling
domestic high-quality fruits and vegetable is its subsidiary operation, thus marking the
import business to promote the export one.

The Shanghai Caoan Cailanzi Co.,Ltd., has rich experiences in marketing and
management, and wide customers both at home and abroad. The Longwu Port
Company possesses a spacious site and a unique dock hardware facilities while the
Shanghai Shenhong Corporation boasts a large minder of veteran professionals who
are dominance complementing characteristics. The Market, with a very convenient
traffic, is planned to occupy a total area of 0.25 million m2.And it has a variety of
business related organizations affiliated within the arena, such as the Customs,
commodity inspection agencies, animals and plants quarantine bureaus, sanitary
inspection stations, banks, tax bureaus, and offices that provide services such as
clearance at the customs for customers, transportation, cold storage, etc. Therefore,
only a few hours are needed to complete the customs formalities. In the early years
after its completion, priority will be given to general selling and buying transactions.
Later on, it will be developed into an international fruit and vegetable transport center
with club members-oriented or auction -oriented E-business.
Figure 5. The imported oranges in Shanghai distributed to other cities near
Shanghai




                                           24
Class II wholesale market in Shanghai

There are 3 main Class II wholesale markets in Shanghai.

Shanghai agricultural wholesale center

Shanghai agricultural wholesale center is one of the five stated-level large agricultural
wholesale centers that Ministry of Commerce decided to build in April 24, 1998. It
is situated at the Xie Bridge Beicai Town Pudong New Area.. As time goes by and
Pudong rises day by day, Shanghai agricultural wholesale center is developing rapidly
and becomes the distribution centre of agricultural products in Shanghai, the main
interim circulation base of agricultural products in East China, and the important
window of domestic and foreign trade of agricultural products.

Shanghai Shan Hua Fruit Co.Ltd

Shanghai Shan Hua Fruit Co. Ltd is a collective enterprise. It is situated at No.1366
Caoyang Road Putuo District, covering 40,000 square meters. Its sales in 2005 are
about 1 billion RMB.

Shanghai Hua Zhong Fruit and Agricultural Trade Centre

Shanghai Hua Zhong Fruit and Agricultural Trade Centre is situated at No.2368
Xuhui District Shanghai and has 15,000-square meters business size. Since 1989
when it was set up, the average sales in the recent 6 years has reached more than 0.2
billion RMB/year, ranging front among hundreds of fruit markets in Shanghai and
taking 12% of the total trading amount in Shanghai

Hangzhou Jiaxing Agro-product Wholesale market is also a very important market
for imported fruits. (it is overt two hours from Shanghai to Hangzhou by car)

In Beijing

Class I wholesale market in Beijing
Xinfadi Fruit Market is the Class I imported fruit wholesale market in Beijing. This
market was founded in May of 1988. It is the biggest agro-products wholesale
market in Beijing. The total area is 1370 m2. It has 1100 staffs. The total assets
reach 420 million RMB. Vegetables, fruits, seeds, and other agro-products are sold
there.

There are 3200 fixed booths and over 4800 distributors are very active in the market.
In the peak season 9 million kg of the vegetables can be sold per day, and 1 million kg
of fruits per day. This market provides over 70% of the vegetables and fruits to

                                           25
Beijing city.

Figure 6. The imported oranges in Beijing distributed to the around areas




The importers and class I wholesalers have offices and booths in the market. The
importers import fruits from the foreign suppliers directly and also purchase the
imported fruit in Guangzhou Jiangnan market.

Class II wholesale market in Beijing
There are 4 major Class II wholesale fruit markets in Beijing.

Beijing Glorious land Sidaokou Fruit Wholesale Market
This market was set up by Beijing Fruit Co., Ltd and Beijing Glorious Land
Agriculture Co. Ltd. Taking the advantage of the full resource gathered in the ten
years’ business experience, favorable location and advanced facilities, this wholesale
market becomes the biggest Class II wholesale market for fruits in Beijing.

Beijing Yue Ge Zhuang Wholesale Market
Beijing Yue Ge Zhuang Wholesale Market is located at Fengtai Road ,southwest of
Beijing. Its favorable location and convenient transportation makes the trading at
0.9 billion kgs with up to 3 billion RMB. It is the most effective and potential
wholesale market in the southwest of Beijing.

North City Huilongguan Dazhongsi Trade Market
It is a comprehensive wholesale market in agricultural products. It was set up by
Beijing Xin Long Business and Trade with the total investment of more than 0.2
billion RMB. It is situated at Huilonghuan cultural housing area Changping District,
It has19 trade halls with 60,000-square meters in total, with 100,000 booths and
20,000-square meter cold storage house.



                                          26
Beijing Bali Bridge Agricultural Wholesale Centre
It was set up by Beijing Lu Yun Tong Trade Company with the total investment of
0.15 billion in 1998. It is situated at Tongzhou District which is known as a famous
distribution base in the history of Beijing. The 10 trade halls have 2600 fixed booths
and 1000 temporary storefronts. It is the largest comprehensive agricultural
distribution base in the east of Beijing.

4.2   Supermarket and Shopping Centres

Thanks to over 20 years' development, Chinese Supermarkets have boomed
vigorously. Entering into the 21st century, Chinese most powerful supermarkets
enterprises developed cross-regional in large scale through direct investments,
franchising or reorganization merger. Fresh daily necessary commodities in the
supermarkets occupy increasingly heavy weight in commodity structure.

Supermarkets have become the most active part in Chinese retail trade. Till 2006 the
total number of the supermarkets is about 172,000. Meanwhile, modern shopping
centers are playing more and more important role with the commercial development.

The wholesale markets take a very important role on the imported fruit circulation.
And the end-consumers buy imported fruits mainly in the big supermarkets, the big
shopping centers, fruit shops, fruit booths, etc.

Table 13. The large-scale chain supermarkets in China.
No.    Supermarket Name                    No. of locations               Total No.
1     Wal -mart                In 46 cities                               78
2     Carrefour                In 25 cities                               92
3     Lotus                    In 33 cities                               75
4     Metro                    In 30 cities                               36
5     Hualian                  In Shanghai                                164
6     Parkson                  In 26 cities (6 new chains will be         39
                               opened in Beijing, Shanghai and Xian )
7     Huarun                   In most of cities                          2250
8     Trust-Mart               In more than 30 cities                     101
9     Parknshop                34 shops in Guangzhou and others in        49
                               Beijing, Shanghai, Wuhan, Chengdu,
                               Kunming, Foshan, etc
10    Legou                    In 19 cities                               46
11    NGS                      In Shanghai                                400
12    Seven-eleven             In Beijing, Guangzhou, etc                 53
13    Tesck                                                               42
14    Century Mart             Shanghai                                   35
15    Rt-mart                                                             54




                                          27
4.3   The Sales Channel of Imported Oranges

Taking Sunkist as an example, the general procedures for importing fruits can be
described as follows:

At the first beginning, before importing Sunkist oranges, Chinese importers usually
go to America and check the products by themselves before loading the goods. The
containers are transferred to smaller ships and transported to other Chinese ports
while the fruit are shipped to Hong Kong port. In mainland, more than 40% of
imported oranges were transshipped through Hong Kong. In 2000 the Sunkist
oranges was allowed directly to the mainland ports including Haikou, Guangzhou,
Shanghai, Dalian, Qingdao, Nanjing and Tianjin.

After the imported oranges reach the coastal port, the importers make the custom clear
with the Certificate of Import Permission to the local customs, then the national
entry-exit inspection and quarantine departments carry out the inspection. After this,
the importer will ship the oranges in containers to the wholesale markets to sell
directly, and the oranges will be frozen in wholesale markets.

Traders and wholesalers from other cities come to the wholesale market and negotiate
with importers to purchase oranges. Payment in cash is the main form of
transactions in China's current wholesale market. Only a small number of wholesale
markets provide with short-term credit. To those with good reputation, the related
government departments are willing to give guarantee for them. After the transactions,
traders and wholesalers from other cities and places generally use refrigerated trucks
to transport fruits to other cities for the second wholesale business.

In Guangzhou

Usually in Class I wholesale market, the importers and the Class I wholesalers have
their own offices and booths there. The importers in Guangzhou Jiangnan Market
are HK companies.

The importers import fruits directly from the foreign suppliers through HK and
transfer the fruits to Jiangnan market. The importers consign the Class I wholesalers
in Jiangnan Fruit Market. The importers have their own representatives in the
market. The main responsibility of the representatives is to know the market well at
site and control the wholesale price based on the market supplies and demands, to
have good communications with the wholesalers in the market. The following chart
shows the procedures.




                                         28
        Figure 7 Distribution Channel for Imported oranges

                                   HK Importers

                                               In this stage class I wholesaler get the oranges from the

                                               importer and distribute in the market.

                                               The payment will be paid in 7-10 days by cash or bank TT.

                                               Usually the profit for the class I wholesalers is 10-15

                                               RMB/box,      sometime reaches 20-30 RMB/box



                       Class I wholesalers in Jiangnan market

                                               In this stage Class II wholesalers from all over
                                               China get oranges from Class I wholesalers in
                                               Jiangnan market and ship to the markets of their
                                               own cities.     The payment will be made
                                               according to the oral contract made in the
                                               market.




Class II wholesalers      Class II                          Class II                                     The dealers in
from all over China,      wholesalers in                    wholesalers in                               charge of
especially from           Pear River Delta                  Guangzhou city                               supplying 4-5 star
Shanghai and Beijing                                                                                     hotels and big
                                                                                                         supermarkets



                        Including those rich                1. Fruit shops
                        cities: Shenzhen,                   2. booths
                        Dongguan, Zhuhai,                   3. Small
                        Zhongshan, Foshan,                     supermarkets
                        Jiangmen, etc




                                                       29
       A case:

Tung Shing fresh Fruit Co., Ltd is a HK company focusing on fruit business. It is
said that the company’s imports cover 40% of the total Sunkist in the States to
Chinese Market. This company imports oranges from Chili, USA, Australia,
Thailand and South Africa and supply the markets with oranges all around the year.
It is said that Tung Shing Fresh Fruit Co., Ltd has a good reputation in international
fruit market. Tuny Shing transfers about 3,000 containers of imported fruits from
all over the world to Guangzhou Jiangnan market per year. This company has
several agents in Guangzhou Jiangnan market.

Daily Fresh Trading Company, a HK base company is one of Tung Shing agents in
Jiangnan market. The owner of the company, Mr. Wong Man Kit has involved in
imported fruit business in Hongkong and China for over 40 years. This company
mainly focuses on selling fruits in Guangzhou Jiangnan market on behalf Tuny
Shing and other HK companies. This company sells fruits as agents and get
commission. Usually the procedure is as follows:


     Tung Shing sends a container of oranges to Daily Fresh by truck from
     HK


       Daily Fresh informs Tung Shing the market price and starts to sell.
       Tung Shing’s representative stays in the market all around the year .
       He/she knows the market at site and controls the market price.



       Usually the container can be sold in 1-2 days. If any quality
       problems, it will be sold out in 3-5 days at the decreasing price



 .
       Daily Fresh will transfer Tung Shing (HK) the total payment through
       bank after deducting their commission 3-5 RMB/box based on the
       agreed marketing price. But in fact the profit is about 10-15
       RMB/carton normally based on the real wholesale price .


       Tung Shing will send the invoice to Daily Fresh.




                                     30
In Shanghai

Usually the importers import the oranges from USA, South African, Argentina,
Uruguay, Australia, etc directly or through Guangzhou JaingNan Fruit Wholesale
Market to Shanghai LongwuLu Imported Vegetable and Fruit Wholesale Trading
Market.

Before the containers arrival, the Class I wholesalers will be informed the arrival time
and the details of the imported oranges by the importers. As soon as the containers
arrival, the Class I wholesalers will purchase the quantity of the oranges they want
from the importers. Usually the containers can be distributed out at the arrival day.
The Class I wholesalers pay to the importers within 7-10 days if they purchase 1/3 of
the oranges, otherwise it will be a cash base. The Class II wholesalers pay to the Class
I wholesalers according to what they agreed, usually within 15 days. For the hotel
and supermarket, the terms of payment is usually 30-45 days, but the price is higher.

The sales procedures are almost the same as in Guangzhou. The class I wholesalers
distribute the oranges to 1) The Class II wholesale markets in Shanghai 2) the
dealers who supply the big supermarket and 4-5 star hotels in Shanghai 3) the Class
II wholesalers in the cities of the Yangtze River Delta and Anhui Province, etc.

In Beijing:

The procedures are almost the same as in Guangzhou and Shanghai. Usually the
importers in Beijing wholesale market will buy from the foreign suppliers directly or
two/three Class I wholesalers will cooperate to buy one container of the oranges from
Guangzhou Jiangnan market and ship back to Beijing and distribute in Xinfadi market
to 1) the Class II wholesale market in Beijing; 2) the dealers who supply the big
supermarket and 4-5 star hotels in Beijing; 3) the Class II wholesalers in the cities of
Northern China and Northeast China.

4.4   Terms of Payment

The following terms of payment are used for importing fruits in China, not including
HK.
1. 30% down payment, 70% while the goods arrival.
2. 50% against the shipping documents, 50% in 7 days after arrival.
3. Local government guarantee + pay off within 10 days after goods arrival
4. Per 15 containers are shipped during the seasons, among which 8 containers are
    paid off immediately after the goods arrival accordingly while the rest 7
    containers are on the way. Till the end of the season, all the containers will be
    paid off.


                                          31
4.5    The Major Players in the Imported Fruit Market

Guangzhou Players

The Importers:
There are about 40 importers from HK supplying different kinds of imported fruits to
Guangzhou Jiangnan Fruit Market.

1. Tung Shing fresh Fruit Co., Ltd is a HK company focusing on fruit business. It
is said that the company’s imports cover 40% of the total Sunkist in the States to
Chinese Market. This company imports oranges from Chili, USA, Australia,
Thailand and South Africa and supply the markets with oranges all around the year. It
is said that Tung Shing Fresh Fruit Co., Ltd has a good reputation in international fruit
market. Tuny Shing transfers about 3,000 containers of imported fruits from all over
the world to Guangzhou Jiangnan market per year.
Contact person: Mr. William Lai, who can speak English
Tel: 00852-9768-6786

2. The HK importer who supplies imported fruits to Huasheng fresh fruit Trades is
Mr. Li Songfa. Huasheng Fresh Fruit Trades has been involved in imported fruit
business for over 10 years. This company distributes the imported fruits in the market
all around the year.
Contact person: Mr. Li Song Fa, who can speak fluent English.
Tel: 00852-91903134.

3. The HK importer who supplies New Peak(Fruits) Co., Ltd with imported fruits is
Mr. Gan Qingguang. New Peak(Fruits) Co., Ltd has been involved in imported fruit
business for over 10 years. This company distributes the imported fruits in the
market all around the year.
Contact person: Mr. Gan Qingguang,
Tel: 00852-94818348.

In China Custom record, there are 7 companies imported oranges through Guangdong
ports. But all of them are importing oranges on behalf of the companies who sell
oranges in the market. Their business scopes are focusing on non-fruit fields. Only
Guangdong Shantou Agriculture Products wholesale Center Co., Ltd imported
oranges on behalf of the dealers in its own market.

4. Guangdong Shantou Agricultural Products Wholesale Centre Ltd. was established
in October, 1996. It was a key “vegetable-basket project” during the 9th Five-Year
Plan in Shantou and also the only one market project approved to set up by the China
National Development Planning Commission. With a total investment of RMB0.18
billions, it has become a large-scale produce wholesale center with complete functions
and modern management in eastern Guangdong Province, South China. The

                                           32
wholesale Market of Fruits was opened in 2003, with a land space for trading of more
than 20000 square meters. It has gathered over 200 fruits wholesaler to here to have
daily fruit trade. There are hundreds of varieties of fruits from every part of China and
all over world.

Class I wholesalers:
The following list is the active distributors/agents as the Class I wholesalers in
Guangzhou Jiangnan Fruit wholesale Market.

Table 14. List of the distributors in Guangzhou Jiangnan market
Company                                   Contact Person    Tel.
Daily Fresh Trading Company               A Bing            0086-13631496189
Chang Cheng Trade Fruit Co.               Chen Kuncheng     0086-13710395169
                                                            0086-13902309918
Guangzhou Guang Xin Fruit Trade Co. Wen Zhijiang
Zhong Hou Fruit Co.                       lin Linlin        0086-13902401346
Fu Xiang Fruit Co.Ltd                     Zhang Sheng       0086-20-81786280
Guangzhou Jin Shan Fruit Co.              Zhang Yongchao 0086-13316257003
Da Chang Fa Trade Joint Co.               Chen Wenzhou      0086-13729870678
Guangdong Mei Province Golden             Wang Rongling     0086-13602881052
Pomelo Co.
Yu Dong Ling En Agricultural              Li Changhai       0086-13672439788
Wholesale Co.
Jiangnan Market Road 10 No.17             Lin Jiaxin        0086-13822169912
Lao Liu Fruit Trade Co.                   Lin Guodan        0086-13902297081
Guangzhou Yang Shi Fruit Co.              Yang Huiping      0086-13724854897
Yao Hui Fruit and Vegetable Co.           Chen Guiming      0086-13250300229
Zhong Xing Run Feng Food Co.Ltd           Yang Hanzong      0086-13902298689
Guangzhou Guang Xin Fruit Trade Co. Wen Zhijiang            0086-13902309918
Shuang He Modern Agricultural Co.Ltd Cheng Weitian          0086-13111999252
La Zi Fruit Co.                           Liu Hong Quan     0086-13710336689
Yong Wei Fruit Co.Ltd                     Chen Yongchang 0086-13902693431
Gang Long Trade Co.Ltd                    Deng Guohe        0086-13926003278
Guangzhou Chang Hong Fruit Co.            Liu Hongsheng     0086-15907075867
Dong Tai Trade Co.                        Lin Muxi          0086-13760056159

Talbe 15: Class II wholesalers In Guangzhou
Class II Wholesaler         Whom to sell              How to sell
Supermarket dealers   Big supermarkets in Buy the goods from the Class I
                      Guangzhou             wholesalers and sell to the
                                            supermarkets directly
Hotel dealers         4-5 star hotels in Buy the goods from the Class I
                      Guangzhou             wholesalers and sell to the hotel


                                           33
                                                directly
In Class II Wholesale the Class III wholesalers Buy the goods from the Class I
market                in Guangzhou              wholesalers and sell in local
                                                Class II wholesale market

Table 16 Class III wholesalers in Guangzhou
       Dealer          Whom to sell                    How to sell
Fruit shop          Direct consumers     Buy the goods from the Class II
                                         wholesalers and sell in their own fruit
                                         shops
Fruit booth         Direct consumers     Buy the goods from the Class II
                                         wholesalers and sell in their own booth
Small-scale         Direct consumers     Buy the goods from the Class II
supermarket                              wholesalers and sell in the supermarket

Shanghai players
In China Custom record, Shanghai New Long-March International Trade Co. Ltd is
No. 1 imported oranges in China in 2006. This company is one of the subsidiary
company of Shanghai Cao An Food Basket Co. Ltd, which is one of the owners of
Shanghai Class I imported fruit wholesale market.       The function of this company is
to help the fruit dealers in its wholesale markets to import oranges as an import agent.
This company is only responsible for importing, but not involving in the fruit sales
activities. They charge services fees for custom clear, etc. The oranges imported
through Shanghai New Long-March International Trade Co. Ltd are sold in 11
primary products markets which are invested and managed by Cao An company
stretching out to consumers in Shanghai and some other cities surrounding Shanghai.


The cost of custom clear and related expenses in Shanghai and Beijing is about
6,000-6,600 RMB/container. Shanghai New Long-March International Trade Co., Ltd as
an import agent will charge RMB 6,600 for custom clearing per container at shanghai
port. The total cost for custom clear, plus the VAT, Custom duty, transportation, service
charge, etc in normal year, the total cost for one 20 tons container is about RMB
38,000+6.600=44,600 RMB
Source: Shanghai Longwulu market

The cost of the fruits from HK to Guangzhou Jiangnan market is 50 RMB/carton
box, usually 975-1080 boxes in one container. It is said that the total cost including
the custom clear (HK to Guangzhou), VAT, Custom Duty, transportation, service
charge, etc is about 60,000 RMB / container.
Source: Guangzhou Jiangnan Market



In the custom record, the following companies imported oranges through Shanghai

                                            34
port in 2006. But in fact, only Shanghai Dole Food Co., Ltd imported and sell
oranges in the market by themselves. The others imported oranges on behalf of the
orange dealers in the market as import agents.
 Tianjin Lilai International Trading Co., Ltd
 Dalian Xinda Textile Imp & Exp Co., Ltd
 Shanghai Shangshi International Trade (Group) Co., Ltd
 Shanghai Daliang Industry Co., Ltd
 Shanghai New Long-March International Trade Co. Ltd
 Shanghai Dole Food Co., Ltd
 Shanghai Shanben International Trade Co., Ltd.

Importers
1) Dalian Yidu Trading Co., Ltd.
Dalian Yidu Trading Co., Ltd., Shanghai Branch: This group was built in 1998 and
manages 8 branch companies. Yidu Trading Company is just one of them. Yidu
Trading Company imports cooperates with famous fruit providers like SUNKISTT,
DOLE,   ENZA,    DUDA to imports fruits and another branch company of Yidu Group,
Dalian Yongyu Primary Products Company is responsible for selling the fruits to
fruits markets, supermarkets, restaurants and hotels.
Yongyu Fruits & Vegetables (Shanghai) Co., Ltd is a subsidiary of Dalian Yidu Group,
focusing on fruit importing. This group does the fruit wholesale business all over
China. In northeast China and North China, they supply fruits to the supermarkets,
such as Warlmart, Carrefor, Legou, Beijing Hualian, Metro, etc. In Shanghai market
in 2006 season they imported about 150 containers of oranges, among which 65% are
from South African and 35% from the States. They also import Kiwi and grapes
from Chili, oranges from Australia.
Contact person: Liu Zhi
Tel: 0086-13904091127
E-mail: lz@yidu.com.cn

2) Shanghai Jingming Fruit Co., Ltd
This company supplies fruits to the supermarkets in Northeast China, such as Carrfor,
Walmart, Aikmart, Legou, etc. The yearly turnover is 30 million USD with 50,000
tons of fruits, among which about 15% is citrus products.
Contact person: Mr. Feng ShaoChun vice general manager
Tel: 0086-21-64341319

3) Shanghai Cheerful Import & Export Co., Ltd is focusing on fruit import and
wholesale. They import oranges from USA and mandarin from Thailand, Argentina
and South Africa, etc. They import 80-100 container of citrus in the past years, 2/3
of the containers are imported during Nov to May.
Contact person: Mr. Lant Lee, General manager
Tel: 0086-21-64341508



                                         35
4) Green Source Imp & Exp Trade Co., Ltd
Green Source Imp & Expr Trade Co., Ltd is focusing on Kiwi importing and is now
negotiating with Israel orange suppliers. This company also exports Chinese
oranges. Mr. Suke, the president of this company is interested in Egyptian oranges.
Contact person: Mr. Suke, president
Tel: 0086-15982811185

The Class I wholesalers
1) Shanghai Jinbo Shengguo Co., Ltd
2) Zhengda Thailand Fruits
3) Shanghai Golden Fruit Trading Co., Ltd
4) Sanya David Food Co., Ltd
5) Greaton Corporation
6) Shanghai Huiji Fruit Trading Co., Ltd
7) Shanghai Yannong Trading Co., Ltd
8) Laiyang Junjie Food Co., Ltd
9) Haikou Bairuifeng Fruit Co., Ltd
10) Dongqing High-level Fruits Co., Ltd
11) Shanghai Yuhui Fruit Co., Ltd
12) Shanghai Junjie Fruit Co., Ltd
Note: Usually the Class I wholesalers are all located inside the market and have
their own offices in the market.

Table 17: Class II wholesalers in Shanghai
      Dealer               Whom to sell                           How to sell
Supermarket         Big     supermarkets        in Buy the goods from the Class I
dealers             Shanghai                       wholesalers and sell to the supermarkets
                                                   directly
Hotel dealers       4-5 star hotels in Shanghai    Buy the goods from the Class I
                                                   wholesalers and sell to the hotel directly
Class            II the Class III wholesalers in Buy the goods from the Class I
Wholesalers         Shanghai                       wholesalers and sell in the Class II
                                                   wholesale markets, such as Huazhong,
                                                   Chaoyang, Beicai and Nanqiao, etc.

Table 18. Class III wholesalers in Shanghai
         Dealer               Whom to sell                       How to sell
Fruit shop               Direct consumers         Buy the goods from the Class II
                                                  wholesalers and sell in their own fruit
                                                  shops
Fruit booth              Direct consumers         Buy the goods from the Class II
                                                  wholesalers and sell in their own booth
Small-scale supermarket Direct consumers          Buy the goods from the Class II
                                                  wholesalers and sell in the supermarket

                                        36
Beijing players

Importers
Beijing WanJiaRuiDa Technology and Trade Limited (WanJiaRuiDa is for short) is a
professional foreign trade company mainly operating in the import and export
business. Currently, WanJiaRuiDa has two independent storages in the largest
agricultural market -- Beijing XinFaDi agricultural and sideline products market, for
the preservation of the import and export fruits, and its branch sales have been opened
in Shanghai and Guangzhou
Wholesalers
Talbe 19 The Class I wholesalers
              Company Name                        Contact Person              Tel.
Beijing Ao Ye Zi Qiong Trade Co.Ltd             Luo Jianjun            0086-13301365471
                                                                       0086-13910737799
Beijing Bai Bao Yuan Trade Centre               Wang Yingang           0086-10-3724032
                                                                       0086-13521068058
Beijing Wen Xing Fruit Co.Ltd                   San Mao                0086-13601004266
                                                                       0086-13601126620
Beijing Xinfadi Fruit Centre                    Zhang Junwei           0086-13269206788
                                                                       0086-13522757636
Beijing Yu Feng Fruit                           Wang Yufeng            0086-10-81678930
                                                                       0086-10-83718965
Bao Yu Feng Fruit Co.Ltd                        Wei Baorong            0086-13910583756
                                                                       0086-10-86810739
Beijing Blue Tian Xiang Fruit Co.Ltd            Fan Jiancheng          0086-13811858758
                                                                       0086-10-60221066
Beijing Chun Lin Agricultural Products                                 0086-10-83711302
Co.Ltd                                                                 0086-10-80232116

Table 20. Class II wholesalers in Beijing
       Dealer                Whom to sell                        How to sell
Supermarket dealers   Big     supermarkets         in Buy the goods from the Class I
                      Beijing                         wholesalers and sell to the
                                                      supermarkets directly
Hotel dealers           4-5 star hotels in Beijing    Buy the goods from the Class I
                                                      wholesalers and sell to the hotel
                                                      directly
Class II Wholesalers    the Class III wholesalers Buy the goods from the Class I
                        in Beijing                    wholesalers and sell in the Class II
                                                      wholesale markets, such as
                                                      Huazhong, Chaoyang, Beicai and
                                                      Nanqiao, etc.



                                         37
Table 21: Class III wholesalers in Beijing
Dealer                     Whom to sell            How to sell
Fruit shop                 Direct consumers        Buy the goods from the Class II
                                                   wholesalers and sell in their own
                                                   fruit shops
Fruit booth               Direct consumers         Buy the goods from the Class II
                                                   wholesalers and sell in their own
                                                   booth
Small-scale supermarket Direct consumers           Buy the goods from the Class II
                                                   wholesalers and sell in the
                                                   supermarket


Other players
Shanghai Dole Food Co., Ltd
Shanghai Dole Food Co., Ltd is located in Pudong, Shanghai, focusing on fresh fruits
sales through supermarkets all over China. They import oranges, banana, Kiwi, etc.

In 2006 about 500 containers of oranges have been imported through the ports of
Tianjin, Dalian, Qingdao, Xiamen, Shenzhen and Shanghai, and sold in mainland
China, among this 500 containers, 60-70% is imported from South Africa and others
from the United States. They also purchase local oranges from Gannan,Jiangxi
Province.

Table 22: Major customers of Dole Shanghai.
              Key Customers                      Number of chain shops
Trust-mart                              101
Carrefour                               85
Wal-mart                                76
Tesco                                   42
Lotus                                   75
Rt-mart                                 54
Century mart                            35
E-mart                                  5
Auchan                                  15
Metro                                   35
Wumei                                   10
Total                                   533

Shanghai Dole Food Co. Ltd supplies Supermarkets directly, covering 45% of its total

                                        38
sales. In 2006, Dole’s fruits sells in 570 chain supermarkets in 52 cities in well-off
areas of China. In 2004 Dole sold fruits in only 178 supermarkets. It is expected that
1020 supermarkets will sell Dole products by the end of 2007.


       1200

       1000                                                            1020

        800

        600                                            570
                                        496
        400

        200             178
           0
                2004(ACT)       2005(ACT)      2006(ACT)       2007(ETA)



Shanghai Dole Food also distributes fruits in the wholesale market directly, which
covers 55% of its total sales. In 2004 it sold fruits in only 19 wholesale markets, but
in 2007 it is expected to sell fruits in 45 wholesale markets all over China.



         60


                                                                        45
         40                                             38
                                        30

         20            19



          0
                2004(ACT)       2005(ACT)       2006(ACT)        2007(ETA)
Shanghai Dole has its own factories in Beijing, Shengyang, Shanghai, Guangzhou,
Qingdao and Xiamen to repack/process/select the imported fruits according to the
demands of the market.




                                          39
Table 23. Dole’s 6 factories with facilities in China.
   No.                Location of the factories                 Through ports of
1           Shenyang,                                       Dalian Port
2           Beijing                                         Tianjin Xingang Port
3           Qingdao                                         Qingdao Port
4           Shanghai                                        Shanghai Port
5           Fujian                                          Shenzhen Yantian Port
6           Guangzhou                                       Shenzhen Yantian Port
The seventh one is going to be set up in Chongqing, the goods will be transferred
from Shenzhen Yantian Port to Chongqing by truck. It is estimated the factory is
going to operate at the end of 2007 and finish in April 2008.

5. Imported Oranges / Consumption


5.1     Analysis of Consumption Habit

At present, in the mainland people’s food expenditure, the proportion of fruit
consumption is approximately 2%~3%. In recent years, the fruit demand and the sales
volume increases steadily, because of the economical improvement, the living
standard enhanced and especially the three-person family’s demand. These families
pay high attention to the children’s nutrition. The total fruit demand shows the
remarkable rising tendency, and the diversified varieties are required. Staple fruits,
such as apple, pear, citrus, banana, are still the main consumption varieties, while the
rare fruit, the season fruit and the counter- season fruit are auxiliary.

1. Appearance is more important than taste.
People select and purchase import fruits with the purpose to give presents, so they pay
high attention to the appearance and color. Compared with Southern people, Northern
people like to purchase the fruit which has big size. For instance, the import ivory
mango tastes a little sour, and contains more fibers, but this kind of mango has nice
figure, and can be used as gifts, so it sells better than other verities. When people
choose present fruit, firstly they will focus on the attractive figure, then it is the taste,
and the price is the last factor to be considered.

2. Festival is the peak hour for sale
Beijing is the capital of China. There are many government officials and foreigners,
and it often holds the various sizes of conferences and business tours. Due to these
reasons, the demand of gifts is big. Fruit sale peak hour always appears during the
term of May Day (on May 1), National Day (on October 1), New Year's Day (on
January 1), and Spring Festival (in February). According to the statistic data made by
Beijing Sidaokou Fruit Wholesale Market, the sale quantity in these four festivals is
50% of the quantity of whole year.


                                             40
3. Healthcare function
The healthcare function of fruits is very important to the customers, especially the old
people and children. If the function is authenticated by authority or recorded in
Compendium of Material Medical, it would be more believable. For instance, it is said
that Changshanhuyou Tangelo can prevent hypertension and heart disease, and reduce
cholesterol. Pitaya can be used to reduce the hyperlipidemia, so the mid-aged and old
people like it very much. At present, the economy of Chinese Mainland is developing
rapidly, while more and more people start to smoke or suffer from diabetes and
hypertension, therefore the propagandas which emphasize the fruit healthcare function
can be found anyplace.

4. Taste partiality
The people in Chinese Mainland like the fruit which is washy, crisp, sweet, tasty and
easy to eat. Therefore the fruits, such as watermelon, citrus and pear, are favorable. At
present, the non-seeds fruit becomes more and more popular, for instance, the
non-seeds watermelon and non-seeds orange have an increasing market share.

5. The advantages of the rare fruit and the counter- season fruit.
In resent years, the rare and counter-season vegetable and fruit become more popular.
When a thing is scarce, it is precious. The people from Beijing like attempting the
novel thing, so long as adopting the right propaganda and marketing, the price is not a
problem. South Africa and the countries in Australia and South America located in the
southern hemisphere, the fruit season is different from Chinese Mainland, so their
products have the certain market share in china, such as the Australian mango.

6. The difference of consumption habit in North China and South China.
In North China the people like the large size oranges. Big size fruits sell well in
Beijing, Shengyang, Dalian, Qingdao, etc cities in north China. But in Guangzhou
and Shanghai, the small oranges the small size fruits can also sell well. Shanghai
people even do not like the large-size oranges.

5.2    Analysis of Major Consumers

The consumption cities
The major consumption cities of imported oranges are located in the big and rich
cities, such as Beijing, Tianjin, Shenyang, Dalian, Qingdao, Shanghai, Nanjin,
Hangzhou, Suzhou, Ningbo, Wenzhou,Guangzhou, Shenzhen, Zhuhai, Dongguan,
Zhongshan, etc.

The consumption groups
The imported oranges are consumed mainly by the following groups
 The foreigners working in China
 The Chinese living overseas for years in the past
 4-5 stars hotel for the hotel guests

                                           41
   White-collar with middle and high income
   the children and the older in rich families
   group purchasing as gifts on business purpose
   the young people who are loving fashion

According to a survey, currently in Beijing, Shanghai, Guangzhou, Shenzhen and
other large cities, the proportion of fruit consumption are rising year after year, which
nearly close to the half throughout the meal on citizens’ table. People begin to search
for the quality grade of the consumption, so the high-grade decorated fruit
supermarkets appeared. Many operators see the huge market from the urbanites’
demand on superior fruit. Therefore many fruit stands upgraded to the fruit shops in
recent years.

In china one child policy makes the children as the emperor in the family. More and
more children have become consumers of expensive foreign fruits, as their day-to-day
expenses become an important expenditure among family fruit consumption. The
majority of the household consumption accounts for of children.

The survey by Shanghai Fruit Association shows that fruits are available in more and
more Shanghai women’s satchel, such as New Zealand Kiwi, the U.S. Sunkist oranges
and superior domestic fruit. Eating some fruit before dinner, postprandial or at leisure
time has become their habit. And they spend about 150-300 RMB on fruit every
month.

Consumption tendency
In recent years, China's fruit consumption is getting to have the following trends:

1. Focusing on health food
In recent years, the consumers’ interest in health foods is increasing, and thus they
have more stringent healthy requirement for food and fruits. They are more inclined to
eating the food which is low in fat, low in sugar, and rich in various minerals,
vitamins and micro-organisms (help digest).

2. Pay attention to food safety
Recently, as a number of Chinese food panics occurred, attention paid by consumers
to food safety reaches a very high degree. Meanwhile, consumers have a higher
concern with the food production and the environmental impact on the food.

3. Foreign fruit and non- seasonal fruit are popular.
Unique exotic flavor are gradually acknowledged and accepted by the domestic
high-income consumers, they even have developed the buying habits, This
Phenomenon is more distinctly in Beijing, Shanghai and other big cities.




                                           42
4. According to the information from the wholesale market, the high quality fruits can
sell with high price in a large quantity in the wholesale market, the low quality fruits
only sell at lower price in a small quantity.

6. Imported oranges / Egyptian oranges

Egyptian oranges has been sold in the past years through HK to mainland
China. The Egyptian oranges were not regarded as high quality product. But in
May of 2007 Beijing has imported Egyptian Valencia. The quality is regarded as the
best compared with the Egyptian products in China market before.

6.1 The feedback from the market.

   The duration of the Egyptian oranges arrival (May 2007) is regarded as the best
    season.
   In Beijing market, the bigger size sells well. But in Gaungzhou and Shanghai
    market, the smaller can also sells well. So the importer shipped 72, 88
    pieces/carton to Guangzhou market this time.
   The packaging of Egyptian Valencia to China market this time is not uniformed
    and there is no stick on the orange, which is required to be changed in future.
    Comparing with Sunkist Valencia, the Egyptian Valencia has the following
    differences
         1)The color of Egyptian Valencia is loved by Chinese. The color is more
         red than Sunkist Valencia.
         2)The taste is more acceptable than that of the Sunkist Valencia. It is more
         sweet with higher sugar containing.
         3)The Egyptian Valencia is with rich juice. It is said quite amount of the
         containers in Beijing this time have been sold to the hotel for making juice.
   The selling price of Egyptian Valencia in Xinfadi wholesale market Beijing is
    about 175 RMB/15kg as wholesale price. For Sunkist Valencia with 113
    pieces/box, 20kg, the wholesale price there is 270-280 RMB/box.
   The shape of the Egyptian Valencia is OK, but the skin is rough and some
    oranges with small black dots, which will impact the sales in the market. The
    question is whether it can be improved by cultivation/growing methods. If yes,
    it will helpful with the quality/reputation of Egyptian oranges in Chinese market.
    It is also very important for Egyptian oranges to be classified according to the
    quality level, class I, class II, etc.




                                          43
   The following left picture is a cut Egyptian valencia and the right one is Sunkist..
    Comparing the two oranges, we can see the center of Sunkist is very small, but
    Egyptian Valencia is larger, which is thought to influence the sales. They
    importers hope it can be improved by cultivation.




6.2 Opportunities for Egyptian oranges in China

The sales season of Chinese navel starts from end Nov, in December a large quantity
of oranges appear in the market with good quality and reasonable price. But the
quality of Chinese oranges can keep only for about 2 months in Dec and Jan because
of the technology in storage and processing.     It is believed that Feb-May is the best
season for Egyptian oranges in China market. Around Feb it is China very important
Spring Festival, the demands of orange is increasing greatly. But the quality is very
important, especially the appearance. People often buy imported oranges as gifts for
their relatives and friends, they do not care the price too much, but the quality and
appearance will influence their purchasing.

According to the imported orange dealers, Egyptian Valencia should have better
promising future than the Egyptian navels in China market. Since there is no
Chinese oranges in the market during April-June, if the Egyptian orange’s quality can
keep stable, it has a great chance to kill Sunkist Valencia in Chinese market.

Quality
According to the dealers and consumers of imported oranges, it is very important for
Egyptian orange to enter China market with high quality. It is also very important to
have the quality stable in the market, the same quality in the same container. It is
strongly suggested no low quality oranges imported from Hongkong to mainland
China. Low quality oranges will damage the Egyptian orange reputation in China
market.

Lebal
Only the Class I Sunkist oranges are with Sunkist label. It is very good for sales.
The Egyptian oranges are suggested to classify to Class I, Class II, but both should
have high quality.



                                          44
ClassIoranges with label should have high quality with good appearance and nice
packaging. The price should be the same as Sunkist. The Class I Egyptian orange
can sell during the Chinese orange harvest of Nov to next Feb to compete with the
local oranges by quality.

The Class II Egyptian orange with good quality is suggested to compete with Sunkist
during March to June. Usually during this period the quality of Chinese oranges is
lower and the South Africa oranges are not available, so the Egyptian oranges can win
Sunkist by selling low price, but high quality. During May and June, it is the best
season for Egyptian Valencia since there is lack of high quality oranges in the market.




                                          45
II. Oranges Juice


1. Demand of Orange Juice

It is know that orange juice is very popular over the world. The average consumption
of the world is 2.6 L / person, USA’ average consumption is 25 L/ person while only
0.3 L in China.

China used to be the origin of orange, but because of the slow varieties amendment
and draggled technologies of processing, fresh keeping and storage, China needs to
import concentrated orange juice to meet the demand for orange juice. More than 95%
of the concentrated orange juice depended on import.

The consumption for the natural orange juice with abundant nutrition increases by
20% each year, showing the huge market potential. Meanwhile, Chinese new industry
for orange juice can’t match the increase of demand for orange juice, thought that’s
developing so fast. So, china would not change the status of an orange juice importer
for a long time before 2020 as likely as not, maybe years after 2020.
Source: Speech by Wu Houjiu, Senior Researcher, China Research of Orange
Professor of China Agricultural University.

2. Supply of Orange Juice

At present, among the total production of the orange raw materials in China, there are
800,000 tons oranges are used to make juice, and 80% of these oranges are harvested
during the middle term of growing season. China has already built or is building over
10 big processing plants, including Huiyuan Food and Beverage Group, which can
process 100,000 tons of fruit raw materials annually, and Chongqing Three Gorges
processing factory, which mainly produces non-concentrated juice, but the quality is
not as good as the imported NFC (not from concentrated) orange juice.

In China there are three methods to process 100% orange juice. The first one is to
press fresh fruit directly to make juice. The second one is to dilute the fresh juice, then
concentrate the diluted juice before selling. The third method is to concentrate the
fresh juice firstly, then dilute the concentrated juice before selling. Most of Chinese
companies adopt the third method to process the orange juice. Generally speaking, the
concentrated juice means to condense eight cups of juice into one cup.

There are about 4,000 juice drink factories in China, and 40% of factories are
producing orange juice drink. The orange juice mainly depends on import the

                                            46
concentrated orange juice and dilute and sell in the market.

It is said to import concentrated orange juice is mainly to consider the cost of
transportation. The frozen concentrated juice is packed in aseptic drum with average
cubage of 265-270 Kg/barrel. The frozen concentrated juice is packed in aseptic
drum with average cubage of 265-270 Kg/barrel.

Table 22 Specification of concentrated juice from Brazil:

Size of the container               20 RF                        40 RF

No. of drums/container              72 drums                     83 drums
Net weight of drum                  About 265 kg                 About 265 kg
No. of drums/container              72 drums                     83 drums
Net weight of container             About 19 tons/(19.15)        About 22 tons (22.08)



3. Consumption of orange juice

In China, orange juices are directly consumed, used as additive in ade drinks or
processed into concentrated juice powder.

Currently the annual direct consumption of orange juice in China is 0.2 Kg and is
increasing by an annual percentage of over 20%, which needs 10 tons of fresh oranges
supported every year. It’s estimated that the annual direct consumption per capita in
10-20 years will increase to 2-3 Kg which is the current average consumption in the
world.

Orange juice is used as addictive in ade drinks in China. In the current 4000 ade
manufacturers, 40% of them produce ade with orange juice, which comes mainly
from imports with the imported juice 10 times more than domestic orange juice.
Orange juice is also processed into concentrated juice powder and used in solid drink, baby foods,
health-care foods, candy, inflated foods and stuffing etc.


4. Analysis of orange juice market

In the year of 2003, China imported 52,000 tons of orange juice, while 47,000 tons in
the year of 2004, 60,000 tons in 2006. It is estimated that in 2010 China will produce
800,000 tons of orange juice, but the total consumption will reach 1.5 million tons. In
2015 Chinese orange juice output will be 1.5 million tons, but at that time the
consumption will reach 3 million tons. It is said the total output of orange can reach
approximately 7,000,000 tons and the annul output of orange juice will be
approximately 3,000,000 tons. But the consumption will be 4,000,000 tons, which

                                               47
means a shortage of 1,000,000 tons. Therefore China has to import at least 1,000,000
tons orange juice from Brazil, Florida in US or somewhere else.


It is indicated by the TianJin Custom that all the import of orange juice in TianJin
harbor is general trade import, mainly coming from Brazil and Israel. 7,891 tons of
iced orange juice has been imported from Brazil, taking up 58% of import of iced
orange juice at the same term. 5,523 tons has been imported from Israel, taking up
40.4%. The enterprise in Beijing, Tianjin, and Sichuan hold the top 3 position. 6,822
tons has been imported by the enterprises in Beijing, corresponds to 45% in total.
3,547 tons has been imported by the enterprises in Tianjin, taking up26%, while 2,521
tons has been imported by the enterprises in Sichuan, taking up 18%. The foreign
capitals dominate the realm. The foreign enterprises imported 1,070 tons, taking up
78.1% in total of iced orange juice in Tianjin harbor.

As we know, when there’s a decrease in the number of orange output orange juice
would be in short supple. Brazil, the biggest exporters in the world, cut down a large
number of orange trees for plant diseases and insect pests which is called “Citrus
yellow shoot ” since this year. At the same time, Brazil government implemented
some favorable policies caused the orange farming area decreased step by step which
affected the international market price of orange juice a lot, encouraged people to
plant sugarcane which could be used to be the auto-fuel. Furthermore, USA is a chief
orange juice producer. The output of the oranges reduces fast when the main original
area Florida be occurred by continuous three hurricanes. What's more, Florida cuts
down lots of orange trees to avoid the infection of pest overspreading in America. It
would take several years to recover it. So it worsens the supply condition, and leads to
the risen of international oranges price.

Along with the development of our national economy, the improvement of the our
living standard and the conversation of our consumptive conception, the requirement
of crude and nutritional juice is increasing as the rate of 20% each year, which has
tremendous market potential. Presently, oranges which produced in China are sold as
fresh fruit, the proportion of machining products is 5%, especially we should improve
technologies in the processing, preserving and storage areas, the capacity of orange
juice is far away less than consumption.

5. Imported Orange juice in 2006


5..1   Varieties and Origins

In 2006 China imported about 60,557 tons of frozen orange juice from Brazil, Israel,
Hotland, Taiwan, Italy, Belgium, Greece, France, American, Australia, Japan,
Thailand and Viet Nam, etc. And about 1,919 tons of unfrozen orange juice from

                                           48
Australia, Spain, American, Austria, Germany, Hungary, Thailand, Saudi Arabia,
England, Belgium, Japan, France, Kera, Newzland, etc.

It is estimated that over 95% of the imported frozen orange juice is concentrated juice
to be reinstituted in the beverage companies. The percentage of NFC (not from
concentrate) juice imported to China is very limited. The current main market of NFC
juice is in Hongkong. It is said that the price difference between the reconstituted
juice and NFC juice in American is about 30-40%, but in China the difference reaches
1-3 times. e.g. In a high-level Shanghai shop NFC juice costs 50 RMB/liter, but the
reconstituted juice is only 20 RMB/liter.

Details can be found in Appendix IV

5.2    Price

Table 23. Average price of imported juice in 2006:

        Varieties          Frozen orange   Unfrozen orange        Pomelo juice
                                juice           juice
  Average CIF China        0.67          0.60                     0.55
       ($/Kg)


5.3    Top 10 Importers

In 2006 the top 10 importers of orange juice are mainly famous branding companies,
such as Coca-cola China, Pepsi (Guangzhou) Co. Ltd, Huiyuan Group, which is the
biggest soft drinking manufacturer in China, Hangzhou Wahaha Group Co., Ltd.
Details can be found in Appendix VI


5.4    The main ports for importing orange juice

The orange juice is imported mainly through the following ports in China.
 Tianjin
 Shanghai
 Dalian
 Shenzhen
 Huangpu Gaungdong

The main players of orange juice in the market are Brazil, Israel and USA in the past.
But Brazil cut down a large number of orange trees because of diseases and insect
pests. At the same time, Brazil government implemented some favorable policies
caused the orange farming area decreased step by step. In USA the output of the
oranges reduces fast because the main original area Florida was occurred by

                                          49
continuous three hurricanes. Florida cuts down lots of orange trees to avoid the
infection of pest overspreading in America. It would take several years to recover it.
Meanwhile, it is said the quality of Israel orange juice is not as good as those from
Brazil and the States.

6. Suggestion on Egyptian Orange juice to China Market

It is expected that concentrated orange juice has a promising market in China in the
coming at least 5 years. But for NFC(not from concentrated) orange juice, the
market is just starting. We found the following brands of 100% orange juice in
Beijing market. But none of them produced in China is NFC product.

  Company Name              Brand               Packing                        Addresss                   Tel.
Beijing Xinyuan Food       Huiyuan         1.25L Tetrapak          Industrial      Development
& Beverage Co.,Lte                                                 Zone, Temple City Town,
                                                                   Huairou District
Luzhong         Huiyuan    Huiyuan         1.25L Tetrapak          North of Huiyuan Street,
Food      &     Beverage                                           Economic        Development
Co.,Ltd                                                            Zone,        Laiwu       City,
                                                                   Shandong Province
Shanghai        Huiyuan    Huiyuan         1.25L Tetrapak          2185 Lotus Southern Road,
Food      &     Beverage                                           Minxing Distric, Shanghai
Co.,Ltd
Pepsi           Beverage   Dole            250ml           Glass   2 Tianyuan Road, Yonghe          800-830-
Co.,Ltd                                           1L
                                           Bottle, Tetrapak        District,    Economic     and    2858
                                                                   Technological Development
                                                                   Zone, Guangzhou
Tianjin Fresh Food &       Dahu            255ml Glass Bottle      Huaihe       Road,     Beichen   86-22-26313
Juice Co.,Ltd                                                      Industrial Technology Park,      376
                                                                   New       Technology     Area,
                                                                   Tianjin
Shanghai Golden Farm       Golden          250ml Glass Bottle      Xujiahui, Shanghai               86-21-64813
Food Co.,Ltd               Farm                                                                     338
Shengluhang      Science   Sunkist         1.5L Plastic Pot        Hongxia       Road,    Jiuxian
& Trade Co.,Ltd                                                    Bridge, Chaoyang District
Beijing Nature Trade       Fana            2L Tetrapak             North of Dandian Village,        86-10-65495
Co.,Ltd                                                            Dongba, Chaoyang                 543
Baorui Hengli Trade        Original        1L Tetrapak             Rm 516, 18 Baiziwan Road,        86-10-87710
Co.,Ltd                    juice                                   Chaoyang District                505
                           ( Regina
                           )Thailand
Beijing           Sanye    Isle juicy      2.5L Plastic Pot        127 Dongxindian, Jinshun         86-10-64337
Mingcheng          Trade   (       Fruit                           Road, Chaoyang District          404


                                                      50
Co.,Ltd                 Island
                        )Australia
Beijing         Sanye   Just juice   1L Tetrapak 250ml   127 Dongxindian, Jinshun    86-10-64337
Mingcheng       Trade    ( Jester    Glass Bottle        Road, Chaoyang District     404
Co.,Ltd                  juice
                        )Australia
Beijing         Sanye   Berry        1L                  127 Dongxindian, Jinshun    86-10-64337
Mingcheng       Trade   Australia                        Road, Chaoyang District     404
Co.,Ltd
Beijing Andeyi Wine     Patiya       1L                  No.28 D208, East of 3ring   86-10-67606
Trade     Development   Bulgaria                         Road, Fengtai District      242
Co.,Ltd
Tianjin     Chengbao    Chengbao     2L                  Tianjin Hotel, Friendship   86-22-28011
Orange Juice Co.,Ltd                                     Hexi District, Tianjin      188


NFC still has a long way to be popular in China, but it is believed NFC should have a
promising market in the coming years. The above listed companies are leading ones
in orange juice field in China. Egyptian orange juice (NFC) manufacturers are
suggested to make contacts with the above mentioned companies to discuss the
possibilities of introducing Egyptian NFC to China market step by step.




                                               51
III. Promotion Strategies and Recommendations


Jpigroup is one of China’s leading private investment and investment advisory
companies that has been working with international and Chinese companies to
upgrade and improve their operational and financial structures so as to increase values
for its shareholders, customers and employees as well as to enhance its chances for
equity investment and corporate financing by strategic partners, financial investors
and banks. From the very beginning of its establishment in 1988, Jpigroup has also
been working with various international and domestic companies to promote the
investment and trade interests from and to China, involving companies of, among
others, the USA, France, the Netherlands, Japan, EU, Israel, United Kingdom, Turkey
and Australia.

As the marketing and communication arm of Jpigroup, Beijing OrientDream
Marketing & Communications Co. Ltd (ODMC). is one of China’s most effective
marketing and business development firms specializing in creative business
development, market research, market communications, advertising, marketing,
public relation, event planning, media planning, market representation, and
management consulting for clients from USA, Europe, Middle East, Asia and across
China. ODMC operates as its clients' most valued partner in creating profitable
growth by building, leveraging, protecting and managing their corporate and
operational assets - for both short-term results and long-term success.

On behalf of Jpigroup, ODMC hereby proposes to Egyptian Orange Club to develop
and implement a promotion program to promote Egyptian oranges in China market.
ODMC commits to using its proven capability, expertise and experiences in
generating and closing leads and deals that develop and increase Egyptian oranges
exports to China.

Based on the survey, the target markets of the Egyptian orange should focus on Bohai
Bay, Changjing Delta, the Pear River Delat, centering around the largest cities such as
Beijing, Shanghai, Guangzhou and extend to the vast areas surrounding these cities,
especially Shanghai, which plays a leading role in the Chinese markets. Shanghai is
a city which tends to accept new commodities and leads the consumption trends of the
whole Chinese market. The target customers should focus on foreign merchants、
high income white collars, children、young women, high-rank hotels and restaurants,
top-rate regional markets, supermarkets and so on .

We should promote the high-quality image of Egypt oranges in order to successfully
enter the markets with a good, famous and unique brand. As for the sales channel,
we should try its best to cooperate with professional importers, traders and big

                                          52
distributors in the big cites in mainland China using their good services such as sales
channels, storage and delivery to build a network..

Therefore, the new Campaign shall concentrate on:
 Create the momentum of the consumers interest and consumption of Egyptian
     oranges by establish the branding, conducting the promotion activities and media
     dissemination.
 Enlarging the effect and impact of the strategies of branding, market entrance and
     market share expansion
These objectives shall be realized through continuing strengthening Egyptian orange
brand. It is believed as an effective architecture to conduct our promotion tasks in
integrating the consumer’s pull with the Egyptian orange dealers’ push while building
the sales network.


1. Strategies

1.1 Branding Promotion

Considering the current market situation, the characters of imported oranges in China
market, the targeted consumers and the competitors in the market, we propose to
promote Egyptian oranges as “来自文明古国埃及的绿色脐橙, 性价比最佳的进口
脐橙” in Chinese, which means “The best oranges from famous ancient Egypt
without pollution, the Egyptian oranges are the best based on price and quality.”

Entrance preparations
Considering the history of the Egyptian oranges in mainland China through
Hongkong in the past years , the establishment of the branding name is very important.
The following entrance preparations will be done accordingly.

   Finalize a Chinese name for Egyptian orange and design the LOGO accordingly.
    It is very necessary and important to make the dealers and consumers change
    their impression on Egyptian orange.
   Design and register the commercial brand name in China. It is a good way to
    protect the Egyptian oranges to benefit from the coming promotion activities in
    the market.
   Establishing a professional website, which is very popular and effective for
    Egyptian oranges to strengthen its brand and be promoted.
   Designing packaging including normal packaging and gift packaging, which is
    helpful for branding and sales.
   Designing and making promotion materials, including brochures, post, flyers,
    exhibition booth, gifts, etc, which is a good way for branding.
   Holding three press conferences separately in Beijing, Shanghai and Guangzhou
    to announce the high quality Egyptian oranges are coming to China.

                                          53
ATL (Above the line Ad):
ATL advertising for creating Egyptian orange brand image

BTL (Below the line Ad):
Educating customers for the advantages of Egyptian oranges compared to other
products for nurturing their purchasing desire to attract the consumers

1.2   Marketing Promotion

The following activities should be done to push the sales and strengthen the brand.
 Participating the related food exhibitions in China
 Organizing purchasing delegation to visit Egypt,
 Egyptian orange Road-show in the rich cities,
 The related promotions in the chain supermarkets
 To decorate the uniform fruit shops in big cities for Egyptian oranges

Major methodologies shall be the branding to pull the market by using advertisement
that enhances the market demand and people’s purchasing and trial desire as well as
the promotion to push the market through alliance, road show and exhibitions with
famous fruit importers and distributors and the retailing market promotion for
escalating and increasing demand in the market.


2 Strategic actions

The following market actions will be focused on promoting Egyptian oranges

2.1 Entrance Preparations

The preparations for Egyptian oranges to China market will be done according to the
demands.

Advantages of entrance design:
 Establish the brand of "Egyptian Orange" and make the concept of “Egyptian
   Orange” accepted by Chinese consumers.
 Gradually raise consumers’ awareness and recognition of the "Egyptian Orange",
   to make them acknowledge the orange and purchase it habitually.
 High quality products with reasonable price will meet most consumers’
   purchasing demand.
 Improve sales channels to enable consumers to buy products at more places more
   conveniently.

Strategic action:

                                          54
1. Egyptian orange Press Conference
The press conferences on Egyptian orange to Chinese market with a new and
high-quality brand are proposed to be held in Guangzhou, Shanghai and Beijing in
October,2007. The participants (about 100 people in each city) including the
related government officials, managers in the wholesaler markets, the importers, the
distributors, media people, etc.

Note: Every year in September the Sunkist group holds sales conference in Beijing
Shanghai and Guangzhou. The main purpose is to announce the information of the
Sunkist in the coming seasons, such as quantity, quality, price tendency, shipping
information, etc. At the same time, they will entertain the importers and distributors to
thank them for the good cooperation in the past year.

2. Design and register Commercial brand name with an attractive LOGO in
    China
After checking in the market, it is better to call Egyptian orange both in English and
Chinese. A commercial logo should be designed. The commercial brand name
should be registered officially in China

3. Design and maintain a professional Egyptian orange website
Internet is a very good way to promote Egyptian oranges in China market since
almost 100% imported fruit consumers and importer are internet users.

4. Design packaging including normal packaging and gift packaging
The packaging for Egyptian oranges should be uniform with Egyptian culture to
attract the distributors.

5. Design promotion gifts in the events
The gifts with Egyptian characters and culture are suggested to be made for the
marketing events. With the pace of life continuing to accelerate, consumers are
more and more focusing on convenience food. The ring-style gift in the figure to cut
the orange are recommended to be made for the events.

6. Design advertisement for outdoor and TV.
The above mentioned 1-6 items should be considered at the same idea to have the
same promotion concept. This is a series of work.

2.2 Media Dissemination

ATL (Above the line Ad): ATL advertising for creating and strengthening
EGYPTIAN ORANGE brand image




                                           55
7. Train Poster advertisement(Beijing –Shanghai-Guangzhou)

Guangzhou is the biggest imported fruit distributing center, Beijing and Shanghai are
the most important cities for imported fruit consumption. The big potential parts of
Egyptian orange targeted customers make their trips by train through Beijing,
Shanghai and Guangzhou frequiently. The compartment advertisement in the trains
 is regarded as the most direct and effective way.

The poster advertisement will be chosen to put inside the three trains double-back
from Shanghai to Guangzhou, Shanghai to Beijing, Beijing to Guangzhou for 6
months.

Advantages of public relation
  Floating trains play a very important role to advertise products to different kinds
    of passengers.
  The advertisement in the trains aim at all potential consumers; meanwhile, it
    notifies the wholesalers directly also.
  The promotion plays an influential role on operators when they purchase,
    wholesale products in Guangzhou, which will influence their purchasing
    psychology, and produce immediate and direct impact

Strategic action:
Shanghai – Guangzhou
Posters: 34 posters in one carriage
Duration: Dec 07- May 08
Train No. Z1/2

Shanghai – Beijing
Posters: 34 posters in one carriage
Duration: Dec 07- May 08
Train No. T99/100

Beijing - Guangzhou
Posters: 34 posters in one carriage
Duration: Dec 07- May 08
Train No. T15/16

8. Outdoor advertisement in the wholesale markets

Wholesale market is essential both to imported and local fruit. Importers and retailers
both have to deal with the wholesale market. According to the differences between
products, geographical and other factors, operators are even divided into three batches.
Some large retailers, in fact, have served as the class III, even Class II wholesalers,



                                          56
Therefore, the publicity in the wholesale market is the direct access facing (sales
channels) to all operators, which will help to succeed.
The outdoor EGYPTIAN ORANGE advertisement will be put in the central location
and headquarters of the wholesaler market in Guangzhou, Shanghai and Beijing, so
good presentation of EGYPTIAN ORANGE brand and reputation would help to push
the wholesale and retailing market.

Advantages of outdoor ads:

     Increasing customers brand impression in wholesale market
     Attracting the Class I wholesalers from other cities and the medium-sized buyers
      near the wholesale markets
     Using capital market consuming habit to influence other markets

Strategic action:

               Location                           Content              Duration
                                                                    Dec 07- May 08
    Beijing Xinfadi wholesale Market Banner advertisement 10*0.7m
    Shanghai Longwu wholesale                                       Dec 07- May 08
    market                          Banner advertisement
    Guangzhou Jiangnan Wholesale                                    Dec 07- May 08
    Market                          Wall advertisement


9. Advertisements in Bus bodywork/subway

As the most effective way to reach end consumers, advertisement in Bus bodywork
and subway are suggested in Guangzhou, Shanghai and Beijing to promote Egyptian
oranges. The routes of the chosen vehicles are passing through the best locations
such as supermarkets, shopping centers, high-level resident areas, etc. The lights in
subway are also focusing on the stations with large circulations.

Advantages of bus bodywork and subway:

     The excellent liquidity of the promotion will help access to different consumer
      groups.
     The publicity covers both brand promotion and product promotion, two important
      goals of the advocacy.
     Good repeatability and randomicity of the promotion help potential consumers
      acknowledge the product.
     Consolidating market penetration in the three major markets
     Keeping increasing corporate brand image

Strategic action:


                                             57
Location        Bus bodywork                     Subway/ lights          Duration

Shanghai        17Vehicles for 6 months                               Dec 07- May 08
                                                 25 lights for 6 months

Beijing         15 Vehicles for 6 months                              Dec 07- May 08
                                                 25 lights for 6 months

Guangzhou       17Vehicles for 6 months          17 ights for 6 monthsDec 07- May 08

BTL (Below the line Ad): Keep educating customers for the advantages of EGYPTIAN
ORANGE for nurturing their purchasing desire




10.   TV advertisement in Guangzhou, Shanghai and Beijing

TV advertisement is regarded as one of the best way to promote branding name of the
products. Beijing, Guangzhou and shanghai are the three big cities for the
consumption of EGYPTIAN ORANGE . So the ads on TV could be with high
density of target audiences.

Usually the long-term and high frequency advertisement on TV can make the
audiences have deep impression on the promoted products. It is a very good way for
the branding promotion, but the cost is high.

Strategic action:
             Location                             Program
                                                        120*15’ for 120 days
  Beijing
                                                       1440*15’ for 180 days
  Guangzhou
                                                       1440*15’ for 180 days
  Shanghai
Notes:
1) The TV advertisement will follow up with a TV play in the TV golden time.
2) It is said that the Kiwi of New Zealand has made advertisement on Shanghlocal
   TV channel together with TV plays programs for over two years. The result is
                                           58
   said very good. The brand of New Zealand of Kiwi is well-known in Shanghai and
   the sales of Kiwi has increased greatly.
3) The detailed programs can be submitted accordingly late.

11. Advertisements in China Radio International
China Radio International 91.5 FM is the No. 1 music channel in China. It covers
most of the big cities in China with 18 hours broadcasting a day. The audiences are
high-income and well-educated people. They are Egyptian orange target consumers.

The proposed program content includes:
  1) Introduction of Egyptian oranges, including health benefits, history, plantation,
     trade news, etc.
  2) Playing traditional Egyptian music, intervening talks about Egyptian culture,
     folk-custom.
  3) Question & Answer about Egyptian oranges.
  4) Egyptian orange knowledge competition among the audiences.
  5) Open Egyptian orange Special page, Egyptian orange e-mail address in the
     website of China International Radio

Advantages of CRI:
 Cover over 10 big cities with more audiences
 Most of the audiences are white collar with high income and fashion consumption
   habit

Strategic action:

           Program Name                         Broadcast time
Egyptian orange Easy morning(FM91.5) Dec 07- May 08, 6 times/day,



2.3 Promotion Activities

12. Exhibition

Exhibition is the most effective way for supporting brand promotion. Egyptian orange
is supposed to attend the following exhibitions together with small seminars in
Shanghai and Shenzhen.

Strategic action:
Participating the following exhibitions
      EGYPTIAN ORANGE printing handouts or pamphlets for spreading in the
         exhibitions.
      Tasting Egyptian oranges
      Holding small seminars at site

                                          59
           The promotion ladies with tradition Egyptian clothes to attract the
            importers/consumers

            location                 name                        time
                             nd
1.        Shanghai   The 2 China International Fruit    2007.10.11-13
                     and Vegetable Industry Expo
2.   Shenzhen        SFT' 2007 World Fruit and          2007.11.10-12
                     Vegetable Unique Business Platform
                     in China
Note: Beijing Orientdream Marketing and Communication Co., Ltd can participate
the Shanghai exhibition on behalf of Egyptian orange club if the time is not
convenient for Egyptian orange club.

Appendix V: Brief Introduction of the recommended exhibitions.

13.   Potential Purchasing Delegation to Egypt

An EGYPTIAN ORANGE purchasing delegation with 10-20 people is supposed to
visit Egypt in Nov or Dec of 2007 during the harvest of Egyptian orange.

Advantages of business purchasing delegation:

     To see ORANGE in EGYPTIAN with their own eyes gives the importers the
      confidence to purchase Egyptian ORANGE
     Promote communication and purchasing preference of China business clients to
      EGYPTIAN ORANGE
     Integrating marking promotion into sales campaign

Strategic action:
 Choosing orange importers, big distributors, current clients and food pressmen
    as the candidate of the business purchasing delegation members
 Inviting 10-20 VIP of them to visit Egypt
 Follow up with the pressmen to create the soft advertisements in media.

14. Egyptian orange Road show
Egyptian orange road show has its great effect on promoting the oranges to either the
current market or the potential market. It will build a great bridge for communication
among the importers, wholesalers, consumers and Egyptian Orange Club.

During the road shows, the following activities will be conducted.

1) Promote Egyptian oranges to children
Only one Children policy makes the children become the little empires in the family.
Their demands can be met easily by their parents. Therefore primary school students

                                            60
should be the best propagandists if we can put Egyptian orange in their daily
NUTRTION MEAL at school. Contact local Education Committee to get the
approval to distribute Egyptian oranges as nutrition food in primary schools

2) The fruit wholesale markets are the places to make the distributors know the
Egyptian orange directly. Through the distributors in the market, the Egyptian
oranges with good reputation will be spread out widely to the local
markets/consumers. The promotion stands is proposed in the wholesale markets in
rich cities to attract the distributors by tasting, distributing flyers, direct
communicating, etc.

3) The program to visit the key importers and distributors is proposed to conduct. In
this way, the feedback on oranges in the market can be collected in time. At the
same time, the relationship between Egyptian orange club and the
importers/distributors will be improved greatly by visiting. It is very helpful for
branding and sales in the market.

4)To decorate the uniform fruit shops in Beijing with Egyptian oranges LOGO,
slogan, etc. Choose Beijing first to check the result, then copy in Shanghai,
Guangzhou and other cities.

Strategic action:

   Choose one school in Beijing, Shanghai and Guangzhou to distribute the oranges
    during their lunch time.
   Select the local partners to conduct Egyptian orange show in the fruit wholesale
    markets in 9 major cities: Beijing, Shanghai, Guangzhou, Shenyang, Jiaxin,
    Chengdu, Nanjing ,Wuha and Xi’an . The main activities include tasting, flyer
    distributing, and promoting girls with Egyptian traditional clothes singing and
    dancing, etc. Strong dissemination power to surrounding markets
   Once a year, to visit the big importers in Guangzhou/HK, Shanghai and Beijing.
    Time range will cover according to the market opportunity and market planning.
   To decorate the uniform fruit shops in Beijing at the first beginning.

15. Egyptian orange Trinity promotion in the supermarkets

It is a must to have the Egyptian oranges to be sold in the supermarkets while doing
promotion work in supermarkets. Shanghai Dole Food has sold imported fruits in
over 500 supermarkets and has the experience in cooperating with a Chinese agent of
Chile Embassy in China to promote Chili Kiwi in the supermarket. So we propose
to cooperate together with Dole to promote Egyptian orange in the supermarkets.

The main activities include
   Decorate Egyptian orange stands in the supermarket

                                          61
         Adv lights in the supermarket
         Poster
         Direct mail
         Taste with special arrangements to attract the customers

It is to integrate all market action in a typical period especially holiday period. In
another word, it is to centralize as much market resource in typical time to promote
associating with concentrated market branding.

Advantages of trinity promotion:

       Operate our promotion in more central way to make the customers deeper
        impression of EGYPTIAN ORANGE brand and product
       Attracting and developing potential customers
       Retaining and consolidating current customers
       Stimulating current customers’ repeating purchasing
       Developing product application in customers daily life
       Repositioning product positioning in customers mindset
       Associating with advertising increasing integrated marketing power

Strategic action:

          Location                         Supermarkets
Beijing                       Carrefour
Shanghai                      Walmart and Lotous
Guangzhou                     Parknshop

       Locking Dec - February as trinity month
       Chose 3 cities as promotion key points: Beijing, Shanghai and Guangzhou.
       The detailed plan will be reported accordingly

16.     Egyptian orange with 2008 Beijing Olympic Games

Beijing Fruit Cooperation Co., Ltd (BFC) been authorized by Beijing Commerce
                                             has
Bureau as the exclusive fruit supplier to Beijing Olympic Committee BFC is a
state-owned company with 41 years experience in fruit market. The annual sales reach
400 million RMB and it has over 80 fruits shops in Beijing.

It is possible to have BFC to choose Egyptian Orange to supply Olympic committee.
After the Beijing Olympic Games, BFC can get a certificate as the fruit supplier to
Beijing Olympic Games from Beijing Commerce Bureau. Egyptian orange can get a
certificate from BFC as the orange supplier to Beijing Olympic Games.

In this way, the Egyptian oranges can be known by the people from all over China.

                                             62
    With the certificate as the orange supplier to Beijing Olympic Games, it will be
    helpful for promoting the brand of Egyptian oranges.

    Strategic action:
    1. Keep close relationship with BFC
    2. Have BFC choose Egyptian oranges as oranges to supply Beijing Olympic Games


    3. Implementation schedule

      Description                         Aug Sept Oct    Nov Dec Jan   Feb Mar Apr May June Jul

                                             Entrance Preparations
1     Egyptian    oranges         press
      conferences
2     Design +registe Commercial
      LOGO officially
3     Design + maintain             the
      professional website
4     Packaging designing


5     Design/make promotion gifts
      for the events
6     Design advertisement          for
      outdoor, TV, etc

                                             Media Dissemination
    7 Train poster


    8 Outdoor    advertising         in
      wholesale market
    9 Bus bodywork/subway


10 TV advertisement

11 Advertisements in           China
   Radio International

                                             Promotion Activities
12 Egyptian oranges in the
  Exhibitions
13 Purchasing        delegation      to
   Egypt
14 Egyptian orange Road show

                                                     63
15 Trinity promotion   in   the
   supermarkets
16 Egyptian orange in 2008’
   Beijing Olympic Games




 4. Budget Statement

 Three marketing campaign programs are recommended for the first year.

 1.   The three programs are focusing on entrance preparations, which is very
      important for Egyptian orange brand to be impressed by the oranges dealers and
      consumers. The promotion activities for Egyptian oranges in the market are
      regarded very effective and direct to the dealers and consumers. Media
      dissemination is also important to make the Egyptian oranges famous in China.
      But the cost is also high. So the difference of the three programs is based on
      only the investment to media dissemination.
 2.   In the marketing campaign programs, ODMC acts as the agent of Egyptian
      Orange Club to implement the approved programs, control the budget and the
      quality of the programs, conduct the related activities, follow-up with media and
      related units, coordinate with the importers, distributors, consumers to make sure
      the good result of the promotion, etc.
 3.   The price for media is after discount from media companies. The price for
      entrance preparations and promotion activities is the estimated budget. The
      exact budget should be submitted together with the detailed proposal of each
      item to get the approval from Egyptian Orange Club.
 4.   The budget includes the tax and executive cost and service fee.

 Program I
                              Description                                  2007-2008 (RMB)
  1. Entrance Design                                                           600,576
  1     Egyptian oranges press conferences in Beijing, Shanghai and            300,000
        Guangzhou (conference venue, invitation, banner, badge, cocktail
        /meals, documentations, promotion CDs, etc)
  2     Design +register Commercial LOGO officially                            25,000
  3     Design + maintain the professional website                             60,000
  4     Packaging designing                                                    25,000
  5     Design + making promotion gifts for the events                         50,000
        Executive cost and service fee (20%)                                   92,000
        Tax (8.8%)                                                             48,576
  2. Media Dissemination                                                      3,334,359


                                               64
7     Train poster (cost of making and releasing) 316,000                            0
      Beijing – Shanghai Z1/2 one carriage                                        118,000
      Releasing for 6 months
      Shanghai – Guangzhou T99/100 one carriage                                    99,000
      Releasing for 6 months
      Beijing – Guangzhou T15/16 one carriage                                      99,000
      Releasing for 6 months
8     Outdoor advertising (cost of making and releasing)                           41,400
      Beijing Xinfadi wholesale market /broadcasting and                           7,400
      making cost (10*0.7 m banner for 6 months)
      Shanghai Longwu Fruit Wholesale Market /                                     21,000
      broadcasting and making cost                ( 10 m2 for broadcast
      advertisement for 6 months)
      Guangzhou Jiangnan Fruit wholesale market/                                   13,000
      broadcasting and making cost (Advertisement lot for one year )
9     Bus bodywork/subway (cost of making and releasing)                          2,257,000
      Bus bodywork
                                  In Beijing/ package 15 buses for 6 moths        596,000
                    In Shanghai/ package 17 buses for 6 months(901,000)
                            In Guangzhou/ package 17 buses for 6 months           571,000
      Subway lights
                             In Beijing/ 25 lights for 6 months (1,008,000)
                                      In Shanghai/ 25 lights for 6 months         1,090,000
                         In Guangzhou/ 17 lights for 6 months(1,039,000)


11                        Advertisements in China Radio International             636,000


                Egyptian orange Easy morning(FM91.5)for 6 months,                 636,000
                                         broadcasting and making cost
      Executive cost and service fee (10%)                                        293,440
      Tax (3.3%)                                                                  106,519
3. Promotion Activities                                                           2,404,480
12    Exhibitions(Space +walk-on package, Both Decoration, PR materials and       200,000
      samples in the exhibition, trip expenses,    advertisement, small seminar
      venue/sponsoring, small seminar expenses)
                      No. 7 National Agro Product (Shanghai) Trade Fair.
                             2007 Shenzhen International Food Exhibition
13    Purchasing delegation to Egypt 10-15 people for 3-4 days                    120,000
      Airtickets (international + domestic) not including the                     100,000
      Accommodations in Egypt.
14    Egyptian orange Road show                                                   610,000
                                       In Beijing/wholesale market, school,       150,000

                                                  65
                                   Egyptian Orange Uniform fruit shops
                                  In Shanghai/Wholesale market, school            80,000
                                In Guangzhou/wholesale market, school             80,000
                                            In Shenyang/wholesale market          50,000
                                              In Chendu/wholesale market          50,000
                                                In Xi’an/wholesale market         50,000
                                               In Jiaxing/wholesale market        50,000
                                              In Wuhan / wholesale market         50,000
                                        In Zhengzhou /wholesale market            50,000
15     Egyptian orange Trinity promotion in the supermarkets                      770,000
                                   Beijing 8-10 supermarkets for 5 days           250,000
                                 Shanghai 8-10 supermarkets for 5 days            270,000
                               Guangzhou 8-10 supermarkets for 5 days             250,000
16     Egyptian orange promotion for 2008’beijing Olympic Games
                      Orange free (the total quantity should be discussed
                                                                     late)
       Executive cost and service fee (30%)                                       510,000
       Tax ( 8.8%)                                                                194,480
                                                                 Total:         6,339,415

Program II
                         Description                                     2007-2008 (RMB)
1. Entrance Design                                                           600,576
1    Egyptian oranges press conferences in Beijing, Shanghai                 300,000
     and
     Guangzhou (conference venue, invitation, banner, badge,
     cocktail
     /meals, documentations, promotion CDs, etc)
2    Design +registrate Commercial LOGO officially                            25,000
3    Design + maintain the professional website                               60,000
4    Packaging designing                                                      25,000
5    Design + making promotion gifts for the events                           50,000
     Executive cost and service fee (20%)                                     92,000
     Tax ( 8.8%)                                                              48,576
2. Media Dissemination                                                       4,717,236
7   Train poster (cost of making and releasing) 316,000                       316,000
     Beijing – Shanghai Z1/2 one carriage                                    118,000
     Releasing for 6 months
     Shanghai – Guangzhou T99/100 one carriage                                99,000
     Releasing for 6 months
     Beijing – Guangzhou T15/16 one carriage                                  99,000
     Releasing for 6 months

                                               66
8    Outdoor advertising (cost of making and releasing)                           41,400
     Beijing Xinfadi wholesale market /broadcasting and                           7,400
     making cost (10*0.7 m banner for 6 months)
     Shanghai Longwu Fruit Wholesale Market /                                     21,000
     broadcasting and making cost               ( 10 m2 for broadcast
     advertisement for 6 months)
     Guangzhou Jiangnan Fruit wholesale market/                                   13,000
     broadcasting and making cost (Advertisement lot for one
     year )
9    Bus bodywork/subway (cost of making and releasing)                          3,158,000
     Bus bodywork
                           In Beijing/ package 15 buses for 6 moths              596,000
           In Shanghai/ package 17 buses for 6 months(901,000)                   901,000
                   In Guangzhou/ package 17 buses for 6 months                   571,000
     Subway lights
                       In Beijing/ 25 lights for 6 months (1,008,000)
                               In Shanghai/ 25 lights for 6 months               1,090,000
                 In Guangzhou/ 17 lights for 6 months(1,039,000)


11    Advertisements in China Radio International(636,000)                       636,000


       Egyptian orange Easy morning(FM91.5)for 6 months,                         636,000
                                broadcasting and making cost
     Executive cost and service fee (10%)                                        415,140
     Tax (3.3%)                                                                  150,696
3. Promotion Activities                                                          2,263,040
12   Exhibitions(Space +walk-on package, Both Decoration, PR                     100,000
     materials   and     samples     in   the   exhibition,   trip   expenses,
     advertisement, small seminar venue/sponsoring, small seminar
     expenses)
             No. 7 National Agro Product (Shanghai) Trade Fair.
                       2007 Shenzhen International Food Exhibition
13   Purchasing delegation to Egypt 10-15 people for 3-4                         120,000
     days
     Airtickets (international + domestic) not including the                     100,000
     Accommodations in Egypt.
14   Egyptian orange Road show                                                   610,000
                                   In Beijing/wholesale market, school,          150,000
                               Egyptian Orange Uniform fruit shops
                              In Shanghai/Wholesale market, school                80,000
                            In Guangzhou/wholesale market, school                 80,000
                                          In Shenyang/wholesale market            50,000

                                                        67
                                    In Chendu/wholesale market           50,000
                                        In Xi’an/wholesale market        50,000
                                    In Jiaxing/wholesale market          50,000
                                   In Wuhan / wholesale market           50,000
                                In Zhengzhou /wholesale market           50,000
15   Egyptian orange          Trinity     promotion     in    the        770,000
     supermarkets
                           Beijing 8-10 supermarkets for 5 days          250,000
                         Shanghai 8-10 supermarkets for 5 days           270,000
                       Guangzhou 8-10 supermarkets for 5 days            250,000
16   Egyptian orange promotion for 2008’beijing Olympic
     Games
              Orange free (the total quantity should be discussed
                                                             late)
     Executive cost and service fee (30%)                                480,000
     Tax ( 8.8%)                                                         183,040
                                                        Total:         7,580,852

Program III
                         Description                                 2007-2008 (RMB)
1. Entrance Design                                                       835,584
1    Egyptian oranges press conferences in Beijing, Shanghai             300,000
     and
     Guangzhou (conference venue, invitation, banner, badge,
     cocktail
     /meals, documentations, promotion CDs, etc)
2    Design +registrate Commercial LOGO officially                       25,000
3    Design + maintain the professional website                          60,000
4    Packaging designing                                                 25,000
5    Design + making promotion gifts for the events                      50,000
6    Design and making cost for advertisement TV                         180,000
     Executive cost and service fee (20%)                                128,000
     Tax ( 8.8%)                                                         67,584
2. Media Dissemination                                                  8,779,281
7   Train poster (cost of making and releasing) 316,000                  316,000
     Beijing – Shanghai Z1/2 one carriage                                118,000
     Releasing for 6 months
     Shanghai – Guangzhou T99/100 one carriage                           99,000
     Releasing for 6 months
     Beijing – Guangzhou T15/16 one carriage                             99,000
     Releasing for 6 months
8    Outdoor advertising (cost of making and releasing)                  41,400

                                               68
     Beijing Xinfadi wholesale market /broadcasting and                          7,400
     making cost (10*0.7 m banner for 6 months)
     Shanghai Longwu Fruit Wholesale Market /                                    21,000
     broadcasting and making cost              ( 10 m2 for broadcast
     advertisement for 6 months)
     Guangzhou Jiangnan Fruit wholesale market/                                  13,000
     broadcasting and making cost (Advertisement lot for one
     year )
9    Bus bodywork/subway (cost of making and releasing)                         3,158,000
     Bus bodywork
                           In Beijing/ package 15 buses for 6 moths             596,000
           In Shanghai/ package 17 buses for 6 months(901,000)                  901,000
                   In Guangzhou/ package 17 buses for 6 months                  571,000
     Subway lights
                       In Beijing/ 25 lights for 6 months (1,008,000)              0
                               In Shanghai/ 25 lights for 6 months              1,090,000
                 In Guangzhou/ 17 lights for 6 months(1,039,000)                   0


10               Advertisements in China Radio International                    636,000


       Egyptian orange Easy morning(FM91.5)for 6 months,                        636,000
                                broadcasting and making cost
11           TV advertisement (cost of making and releasing)                    3,574,800
                                  In Beijing / 120*15’ for 120 days’            1,872,000
                 In Shanghai / 1440*15’ for 180 days(5,022,000)                    0
                             In Guangzhou / 1440*15’ for 180 days               1,702,800
     Executive cost and service fee (10%)                                       772,620
     Tax (3.3%)                                                                 280,461
3. Promotion Activities                                                         2,263,040
12   Exhibitions(Space +walk-on package, Both Decoration, PR                    100,000
     materials   and    samples     in   the   exhibition,   trip   expenses,
     advertisement, small seminar venue/sponsoring, small seminar
     expenses)
             No. 7 National Agro Product (Shanghai) Trade Fair.
                       2007 Shenzhen International Food Exhibition
13   Purchasing delegation to Egypt 10-15 people for 3-4                        120,000
     days
     Airtickets (international + domestic) not including the                    100,000
     Accommodations in Egypt.
14   Egyptian orange Road show                                                  610,000
                                  In Beijing/wholesale market, school,          150,000
                               Egyptian Orange Uniform fruit shops

                                                       69
                          In Shanghai/Wholesale market, school            80,000
                        In Guangzhou/wholesale market, school             80,000
                                  In Shenyang/wholesale market            50,000
                                    In Chendu/wholesale market            50,000
                                       In Xi’an/wholesale market          50,000
                                    In Jiaxing/wholesale market           50,000
                                   In Wuhan / wholesale market            50,000
                                In Zhengzhou /wholesale market            50,000
15    Egyptian orange        Trinity     promotion     in    the         770,000
      supermarkets
                           Beijing 8-10 supermarkets for 5 days          250,000
                         Shanghai 8-10 supermarkets for 5 days           270,000
                       Guangzhou 8-10 supermarkets for 5 days            250,000
16    Egyptian orange promotion for 2008’beijing Olympic
      Games
              Orange free (the total quantity should be discussed
                                                            late)
      Executive cost and service fee (30%)                               480,000
      Tax ( 8.8%)                                                        183,040
                                                       Total:          11,877,905


5 Financial Projection

In 2006 the total consumption of navel oranges/Valencia in China is about 1.2 million
tons, among which about 110,000 tons are imported from USA, South African,
Australia, etc, including over 634,000 tons of navel/Valencia oranges from China
customs and about 500,000 tons from HK to mainland China. It is estimated the
imports of oranges to China will increase at the rate of 7% in the coming years
according to the analysis of China Fruit Circulation Association.

During a 5-year promotion plan, the target of the Egyptian oranges exporting to
China is expected as follows. In the year of 2007-2008, the Egyptian oranges will
cover 6-8 % of the estimated total imports about 120,000 tons.
Season                      Orange
                            Quantity (Ton)              Value (US$)
2007/2008                   7,000-10,000                3,500,000-5,000,000
2008/2009                   10,000-15,000               5,000,000-7,500,000
2009/2010                   15,000-20,000               7,500,000-10,000,000
2010/2011                   20,000-26,000               10,000,000-13,000,000
2011-2012                   26,000-32,000               13,000,000-16,000,000

                                              70
IV. Appendix


Appendix I. Profile of Orange Packinghouses

1. Sichuan Zhongxi Fruit Fresh-keeping Co., Ltd
This company was founded in 2000 with 4 million Yuan investment funds and
covered 12,015 square meters. It owns advanced fruit processing equipments, special
fruit storage houses and quality service. The company’s main business is engaged in
processing fruit, sterilization, classification, waxing, fresh keeping, packing etc.
Nowadays, this company has processed fruit more than 80 millions jin, dealt about 20
millions jin and stored about 3 millions jin.

This company has set up many direct sale spots in more than 20 large and
medium-sized fruits wholesale markets located in Beijing, Tientsin, Shanghai,
Shenyang, Yuannan, Tibet, Sinkiang etc., and has established stable relations with
more than 20 large and medium-sized super markets. And now, they enter the
international market.

Tel:0086-833-8059388
Website: www.zxgp.net

2. Hubei Yidu Yilong Fruit Co., Ltd
This company was established in 1998 and located in the orange production base
Yidu, Hubei. Their main business is to process oranges by wax, polishing, sorting,
packaging and sell oranges from late July to Feb of next year. Their production line
was imported from Italy.
Contact telephone: 86-717-8281577




                                        71
Appendix II: Imported Citrus Information in 2006

Varieties               origin        Quantity(Kg) Amount($)    Average
                                                                CIF
                                                                Price($/Kg)
Orange                    Total       63,433,388   42,245,773   0.67
                        American      48,294,132   32,194,328   0.67
                        New Zealand   8,515,495    5,541,907    0.65
                    South Africa      4,828,480    3,283,928    0.68
                    Thailand          864,860      584,432      0.68
                    Argentina         792,000      533,000      0.67
                    Taiwan            58,383       49,016       0.84
                    Uruguay           49,858       36,107       0.72
                    Australia         22,680       16,380       0.72
                    Brazil            7,500        6,675        0.89
Broad-leaved citrus   Total           1,020,880    561,180      0.55
                    Australia         477,738      234,520      0.49
                    Argentina         281,300      141,077      0.50
                    Thailand          243,706      167,176      0.69
                    Taiwan            18,136       18,407       1.01
Crossbreed citrus     Total           6,361,765    5,069,120    0.80
                    Thailand          5,251,611    4,490,190    0.86
                    Burma             500,000      125,000      0.25
                    Chile             223,920      156,744      0.70
                    America           213,662      158,237      0.74
                    Australia         158,230      129,708      0.82
                    Taiwan            14,340       9,231        0.64
                    France            2            10           5.00
Lemon & Citrus        Total           4,570,451    3,972,050    0.87
aurantium           America           3,298,987    2,872,695    0.87
                    New Zealand       984,600      821,717      0.83
                    Thailand          118,816      71,565       0.60
                    Uruguay           99,199       85,935       0.87
                    South Africa      49,588       45,125       0.91
                        Taiwan        11,139       13,495       1.21
                        Germany       8,122        61,518       7.57
Source: China Customs




                                       72
Appendix III   Imported orange juice information in 2006

Citrus Juice     Origin       Quantity(Kg) Amount($)       Average CIF
                                                           Price($/Kg)
Frozen orange Total           60,557,634     80,996,879    1.34
juice            Brazil       40,435,608     5,5716,327    1.36
                 Israel       17,883,448     22,003,309    1.23
                 Hotland      1,380,554      2,757,788     2.00
                 Taiwan       278,570        100,052       0.36
                 Italia       275,625        525,084       1.91
                 Belgium      245,700        363,636       1.48
                 Hongkong     30,614         30,020        0.98
                 Greece       16,900         20,156        1.19
                 France       5,835          6,230         1.07
                 America      4,620          13,534        2.93
                 Australia    93             283           3.04
                 Japan        40             416           10.40
                 Thailand     24             30            1.25
                 Viet Nam     3              14            4.67
Non       frozen Total        1,919,041      1,507,429     0.79
orange juice
                 Australia    840,708        727,475       0.87
                 Spain        672,012        399,988       0.60
                 America      227,050        229,323       1.01
                 Austria      44,761         35,480        0.79
                 Germany      41,375         35,840        0.87
                 Hungary      24,803         16,042        0.65
                 Thailand     18,240         10,631        0.58
                 Hongkong     12,852         15,183        1.18
                 Oman         10,800         10,832        1.00
                 Saudi        6,909          3,310         0.48
                 Arabia
                 England      6,546          4,983         0.76
                 Belgium      6,128          7,035         1.15
                 France       4,032          3,034         0.75
                 Japan        2,598          7,849         3.02
                 Korea        142            236           1.66
                 New          45             127           2.82
                 Zealand
                 Taiwan       30             15            0.50

                                        73
                  Poland      7              4         0.57
                  Serbian     2              32        16.00
                  Indonesia   1              10        10.00
Pomelo juice      Total       304,342        338,530   1.11
                  America     246,534        266,818   1.08
                  Korea       20,616         27,616    1.34
                  Israel      11,990         9,852     0.82
                  Australia   5,994          4,443     0.74
                  France      5,401          8,861     1.64
                  Hongkong    5,361          10,886    2.03
                  Austria     4,007          3,602     0.90
                  Japan       2,400          3,583     1.49
                  England     1,111          1,183     1.06
                  Germany     672            1,096     1.63
                  Belgium     250            588       2.35
                  Poland      6              2         0.33
Source: China Customs




                                        74
Appendix IV      Top 10 importers of orange juice in 2006

The main users of orange juice in China are the ade drink producers which include
domestic manufacturers like Huiyuan Group, Wahaha, Taiwan invested manufacturers
like Uni-president Group, MasterKong Group and multinational manufacture such as
Pepsis and Coca-Cola. According to the statistics of China custom, the first ten
importers of concentrated frozen orange juice in 2006 are as follows:

1. Shanghai WaiGaoQiao Free Trade Zone United Development Co., Ltd
It’s built in 1992 in Shanghai and the main business is the development of Shanghai
WaiGaoQiao free zone, providing construction, transportation and international trade
etc. services. The imported orange juices through the company are mainly for the ade
drink manufactures in the free zone.
Contact:021-58699888
http://www.shftz.com/

2. Sichuan Chia Meei Food Industry Co., Ltd
It’s a primary food processing enterprise invested by Taiwan Chia Meei Group, a large
scales vegetable and fruit juice producer in Taiwan.. The branch company in Sichuan
utilizes local fruits and vegetables as well as partly imported fruits to produces both
fresh and concentrated fruit juices like orange juices, lemon juice, peach juice,
vegetable juices and cans. The annual producing capacity has reached 3000 tons and
over 60% are exported to Hongkong, Japan, Southeast Asia and European.
Contact: 0832-2401568
http://www.chiameei.com.tw/eng/index.html


3. Orient International Holding Shanghai Foreign Trade Co., Ltd.
Established in January 1988, it is a large-scale local import-and -export-oriented
trading enterprise. The total imports and exports in the past each years are almost over
$100 million and reached $210 million in 2005, standing at the first position in
Shanghai trading companies. Big Supermarkets in Shanghai like Wal-mart and
Carrefour are the customers of this company.
Add: Floor 6-12, Suite B, Orient International Building, 85 Lou Shan Guan Road,
  Shanghai 200336, P.R. China.
  Tel: (86-21) 62786500
  Fax: (86-21) 62786588
  E-mail:business@cnsftc.com

4. Coca-cola China
Following the traditional orange juice drink like Fenda, Coca-cola China has brought
forth new orange juice drink with higher content of fresh orange juice syrup and it has

                                          75
been popular in China, which asks for a greater demand of high-grade fresh orange
juice.
Tel:0086-21-38984656
Fax:0086-21-64301915
http://www.coca-cola.com.cn/
5. Beijing Huiyuan Juice Co., Ltd
Beijing Huiyuan Beverage and Food Group Co., Ltd. was founded in 1992. It is a
large and modern group company engaged in producing and marketing fruit and
vegetable juice and juice drinks. To date Huiyuan has built over 20 modern plants all
over the country, linking over 100 raw material bases and model orchards for
fine-quality fruits. A nationwide sales and service network has well been shaped,
forming a huge and sound operation system for fruit processing industry. Till now
Huiyuan has researched and developed over 500 categories of juice beverages, among
which the 100% Juices and Nectars enable Huiyuan to enjoy the largest market share.
Huiyuan products have been exported to over 20 countries and regions.
Tel:(8610)60483388
Fax:(8610)60483366
http://www.huiyuan.com.cn

6 . Pepsi (Guangzhou) Co. Ltd

PepsiCo is a world leader in convenient foods and beverages,with revenues of about
$27 billion and over 143,000 employees worldwide.
Many of PepsiCo's brand names are over 100-yearsold,but thecorporation is relatively
young.PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay.Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company,including Gatorade,in 2001.Today,PepsiCo products are available in nearly
200 countries. PepsiCo was one of the early American companies to enter China.
China Beverages is one of the business units under PepsiCo International (PI).Our
main beverage brands in China include Pepsi-Cola,Mirinda,7-UP,Tropicana,Gatorade.
PepsiCo's success is the result of superior products,high standards of
performance,distinctive competitive strategies and the high integrity of our people.
Tel: 8008302858
86-20-32222228

7. Hangzhou Dingjin Food Co.,Ltd
As the first drink producing base of MasterKong, Hangzhou Dingjin company
produces and sells drinks subordinating to Masterkong to East China areas. It has
2500 staffs and the annual sales is over 1.4 trillion RMB.
Address: No.27,Street 4, Xiasha Economic & Technologies Development Zone,
Hangzhou
Tel: 0086-571-86910856

8. Lu Zhong Huiyuan Juice Co.,Ltd

                                         76
As the biggest factory of Beijing Huiyuan Juice Group, Lu zhong Huiyuan company
produces and sells 750,0000 boxes of vegetable and fruit juices in retort pouch and
2000,000 boxes of fruit juices in bottle, 27,000,000 boxes of PET juices.
Tel: 8610-634-6251272

9. Shanghai Huiyuan Drink & Food Co.,Ltd
Shanghai Huiyuan Food and Beverage Co., Ltd. is the subsidiary company of Beijing
Huiyuan Food and Beverage Group. It was established in Oct., 2001, located in
Minhang District, Shanghai. It’s a big sized modernized company which focuses on
fruit and vegetable juice production and sales.
Tel: 0086-21-33506178

10. Hangzhou Wahaha Group Co., Ltd

This company is the leading beverage producer in China, has totally 36 subsidiary
companies covering 16 provinces or cities. It has around 10 thousand employees, with
a total assets fo ¥4.4 billion. The modern plants of the group have an occupation of
land of more than 1800 Mu, with 500 thousand building area. It has over 60
world-class automatic production lines, whose value is over $ 300 million, thus it
forms the productin capacity of 2.5 million tons per year with the accessory canning,
bottling and capping lines. The company product category contains more than 30
varieties, such as milk drinks, drinking water, carbonated drinks, tea drinks, canning
food and health care products. During the past 13 years of the company, it created
¥4.65 billion profit and tax for the country, among which the amount of tax is 1.6
billion. The accumulated sales revenue reaches ¥22.68 billion, especially during the
period of the "ninth-five-year" plan, its sales revenue reached ¥16.03 billion, 70.7%
of the total. In 2000, it produces 2.24 million tons of beverage with a sales revenue of
¥5.4 billion and 1.27billion profit and tax. It accounts for 15% of the total beverage
production of the country, and 37% of the "leading-10-beverage-producers".Tel:
086-571-86032866
Add: 128-1 North Qiutao Road, Hangzhou, china
Fax: 086-571-86951532
Website: http://en.wahaha.com.cn




                                           77
Appendix V: Brief Introduction of the recommended exhibitions

1. The 2ndChina International Fruit and Vegetable Industry Expo

Website: http://www.expo888.com/com/sfv/htm.php?nowmenuid=65

Date:              Oct .11-13, 2007
Exhibition area    12,000 sq.m.
Venue:             Shanghai Ever bright Convention & Exhibition Center
Organizer:         Shanghai Gehua Exhibition Service Co., Ltd. (SGES).
Authorized by      Ministry of Commerce of the PRC
Sponsored by       AGIA,

                   Tong Yuan Group Of All-China Federation Of Industry & Commerce,

                   National Research Centre of Fresh-keeping for Agricultural products,



2.   SFT' 2007 World Fruit and Vegetable Unique Business Platform in China

Website: http://www.sftexpo.com/english/index.asp

Date:              10 - 12 November 2007
Exhibition Area:   15,000 sqm
Venue:             Shenzhen Convention & Exhibition Center
Organizer:         Guanghua International Expo
Co-organizer:      China Fruit Marketing Association

                   China Vegetable Marketing Association

                   Ministry of Commerce

                   Ministry of Agriculture

                   General Administration of Quality Supervision Inspection and
                   Quarantine of P.R.China(AQSIQ)

                   State Forestry Administration P.R.China.

                   All China Federation of Supply and Marketing Cooperatives




                                         78

				
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