Page 15 - 2020 Virtual International Symposium

QIMEI: CHINESE ORGANIC PRODUCE SUPPLY CHAIN ANALYSIS

A STUDENT MULTIDISCIPLINARY APPLIED RESEARCH TEAM (SMART) PROJECT

Alex Curran¹, Michael Li², James Patten³, Teresa Yang⁴

Team Leader: Lin Fu⁵

Faculty/Field Advisors: Ralph Christy⁶, Joel Li⁷

INTRODUCTION METHODS Supply Chain Overview

Founding Story: Hebei, Qimei Agriculture Technology Co. To gain a holistic view of the company’s supply chain, we:

was founded in 1999 in Handan Province, Hebei, China by 1

Zhao Yuqi. She is considered a thought leader in production

and food safety in China’s organic industry. Conducted interviews with employees from farmers,
processors, and sales representatives to division managers,

as well as the Cornell Food Science team

2

Visited Qimei farms, processing sites, and distribution centers

across the province

3

Mission Synthesized findings for corporate presentation and case

“Food Safety is our responsibility, environmental protection is ● Fresh products are only distributed locally (within a 48

our mission” hour radius)

● Frozen and freeze-dried can be exported, as they are

Products: Fresh, frozen, and freeze-dried vegetables and fruits, non-perishable.

fresh eggs, frozen meat, cooking oil, flour

Unique Selling Point: All the products are produced organically ANALYSIS

in China, with certifications from various countries and

organizations Potential Risks in the Supply Chain

Operational Risk Regulatory Risk

● Lack of coldchain leads to ● Continuous compliance to

faster spoilage; reduced certifications

product quality

● Certifications change

● Contract Management: standards due to shifts in

Closed-loop Organic Farming System SUPPLY CHAIN FINDINGS ensuring growers are consumer behavior

following standards

● Uncertainties regarding tariffs

FARMING ● Access to Land: maintaining (e.g. trade war)

relationships for continued

The free-range All Qimei farmland Farm Types access to land

chicken manure is satisfies international • Own Farms: Qimei owns a few farms, ● Aging Workforce: struggle to

composted into organic standards and including 90+ greenhouses find young talent may require

organic fertilizer for certifications mechanization

Qimei organic fruits Each farm is staffed by • Contract Farms: The company also

and vegetables seasoned, local utilizes an out-grower scheme Environmental Risk Strategic Risk

experts who ensure the Characteristics ● Air pollution and water ● Reputational risk to the food

quality of all products contamination could diminish and organic industry leads to

Free-range chickens • Chickens raised organically onsite provide crop quality distrust

fed with organic grain natural fertilizer and premium eggs ● Climate change increases ○ National food safety

and vegetables roam Harvested produce is sent • Some contract farms are located as far as scandals

around all organic crop promptly to processing facilities to Xinjiang and Outer Mongolia cost of production ○ Maintaining brand image

farms ensure safety and quality ○ Availability of clean water during partnerships
● Demand for organic products

PROCESSING increases competition

OUR OBJECTIVES Each product is processed at one of Qimei’s Industry Observations

plants depending on its type:
Production Phase

The team set out to document processes • Fresh

and write a case study through: • Frozen Nurseries are essential to organic production
• Freeze-dried.
Selection of healthiest plants; promotion of critical early plant life cycle

• Documenting and verifying Qimei’s supply chain Example: Carrots are sold all three ways. Monitoring Technology

capabilities While washing and cutting are standard Accounting for climate change; diagnostics of poor soils

steps, blanching, freezing, and/or
• Supporting Food Safety researchers in identifying dehydrating are added depending on the

food safety risks product type. Distribution Phase

• Researching and writing a case study on Qimei’s Cooled trucks from farm to processing

organic food supply chain for teaching purposes Prolong freshness and quality earlier

DISTRIBUTION

Alternate delivery models and partnerships

Food vending machines; marketing opportunities in a nascent market

CONCLUSIONS

ACKNOWLEDGEMENTS AFFILIATIONS

1,5,6 Charles H. Dyson School of Applied Economics and Management

We would like to thank everyone who made this trip so memorable, 2 College of Human Ecology

including our gracious host Yuqi Zhao, Joel Li, Qimei staff, the Dyson 3 International Programs - College of Agriculture and Life Sciences REFERENCES

Emerging Markets Program, the Walmart Foundation and our amazing 4 Department of Animal Science - College of Agriculture and Life Sciences

team leader, Lin Fu. 7 Qimei Agriculture Science and Technology Company

谢谢 Achieving Sustainable Growth in the Chinese Organic Industry Qimei

Agriculture Science and Technology: A Case Study by Luke Pryor, Eric

Reker, Hiromi Shimizu, Cheryl Thayer © 2010 CIIFAD

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