cold chain infrastructure - suggestions from japan as...
TRANSCRIPT
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2013/SOM3/PPFS/005 Agenda Item: 5, 8, 9
Cold Chain Infrastructure - Suggestions from Japan As Solution Provider
Purpose: Information Submitted by: Japan
Second Policy Partnership on Food Security Meeting
Medan, Indonesia22-25 June 2013
7/6/2013
1
Cold Chain Infrastructure-Suggestions from Japan as Solution Provider-
NAOJI KATODirector, Executive Vice President
Nichirei Foods Inc.
APEC Policy Partnership on Food Security (PPFS)Medan, Indonesia, June 22, 2013
WG 3: Facilitation on Investment and Infrastructure Development
Priority3: Infrastructure development and Public Private Partnership (PPP)
WG4: Enhancing Trade and MarketPriority3: Enhancing supply chain connectivity for foodPriority5: Reducing post-harvest loses and food waste and increasing food safety, including development of food industry
2Copyright © 2013 Nichirei Foods Inc. All rights Reserved.
Corporate Profile “Nichirei Corporation”
NichireiBiosciences Inc.
Biosciences
Nichirei FoodsInc.
Processed Foods
Nichirei Fresh Inc.
Marine & Meat and Poultry
Nichirei Corporation -Holding Company-Group Statement: Networking “Good Taste” and “Freshness”
Established: December 1, 1945Head Office: Tsukiji, Chuo-ku, TokyoPaid in Capital: $303 million (@JPY 100/$)
Net Sales: $4.7 billion (FY2012 ended March 2013)
Number of Employees (consolidated): 12,082
ProcessedFoods1840
Marine637
Meat andPoultry
755
Logistics1564
Net sales by Segment FY2012: Million $
Logistics
NichireiLogistics Group
Inc.
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Preface
1. Cold Chain Infrastructure - Key part of food supply chainWell recognized in the past presentation, as below:- September 2012: Presentation at PPFS Work Shop in Tokyo, Japan- January 2013: Presentation at PPFS in Jakarta, Indonesia
“A Cold Chain Proposal for Food Loss - Learning from the Past and Present of Japan -”
- May 2013: ABAC Japan Forum of Mid-Year Activities in Tokyo, Japan“Building of Cold Chain Infrastructure through PPP”
2. Cold Chain Infrastructure - Solution for sustainable economic growth
- Food Producer groups- Food Processors, Manufacturers, Retailers, Food Services- Communities
3. Establishing the Cold Chain Infrastructure- Requires a strong Policy Partnership of Public and Private – Japan case
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- Estimated 2 billion people are eating- More than 1900 insect species
consumed- Rich in protein and good fats, and high
in calcium, iron and zinc- 2 kilo grams of feed to produce 1 kilo
grams of insect meat vs. 8 kilo grams for beef
Source: FAO “Edible insects”
FAO “Edible insects” released on May 13, 2013
Japan’s bee larvas
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Rapid Growth of World Population- 2011: 7 billion 2050: 9 billion
Starving and Malnourished people- World: 900 million people are starving- ASEAN: 17% of children suffering malnutrition
Food Losses & Waste- About 1.3 billion tons a year in the world- 1/3 of total food production in the world- Largest for fruits & vegetables (Around 20% at Producing Level)- Substantial gaps in knowledge throughout the food chain- Loss reduction as an important option to increase food availability
Source: Save Food Congress, Dusseldorf, 16 May 2011
Current Food Loss / Waste in the World
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Developed Economies Emerging Economies
Source: FAO “Global Food Losses and Food Waste”, 2011
Per
cap
ita fo
od lo
sses
and
was
te (k
g/ye
ar)
- Poor storage facilities- Lack of refrigeration- Lack of primary processing facilities- Poor transportation- Inadequate market system and facilities- Poor packaging
Producer Side
Consumer Side
Per capita food losses and waste, at consumption and pre-consumptions stages
Need for Cold Chain Infrastructure
Latest Initiative – 5th June, 2013USDA/EPA launched the U.S. Food Waste Challenge, calling on others across the food chain—including producer groups, processors, manufacturers, retailers, communities, and other government agencies - to join the effort to reduce, recover, and recycle food waste.
Awareness of Communities
Causes of Food Losses & Waste by Region
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1991 Liberalization of Import of Beef1967 Liberalization of import of pork
1960 Liberalization of import of 12 Agri Products
1977 Law on the Territorial Sea
2010 Law of Food Recycling
1955 1965 1975 1985 1993 2012
Cold Storage: Storing seafood at ports Distribution centers close to consumers
Cold Logistic Network: Individual Logistics Joint logistics
1971: 1st McDonald’s shop in Japan 2011/2: 3286 shops
1965 Admonishment of Cold Chain
Public Wholesale Markets: Declining by increasing direct trading
Frozen Processed Food : Peaking
2000
High Economic Growth – Food Loss at Supply-sideSlow Growth –Food waste at
Demand-side
Logistics
Wholesale
Manufacturing
1957 1st super market (Daiei) in Japan FY2011:Total Sales 12 trillion JPY
1974 1st CVS in Japan FY2011: Total sales 9 trillion JPY
1985 3 deliveries/day
Retail&
Consumers
1964 Tokyo Olympic1955 Joined GATT
Development of Food Supply Chain in Japan
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“Admonishment of Cold Chain Infrastructure”:Recommendation to modernize the comprehensive food supply chain system to contribute to the systematic development of diet style
1. Construction of cold chain2. National food grades/standard and inspection system3. Information system on food distribution4. Processing & transfer center system5. R & D of food distribution
Source: Science and Technology Agency, Resources Research Council, 1965
Booklets of “Admonishment of Cold Chain Infrastructure”
Large amount of research data attached in the booklets
Japan Government’s Initiative in 1965
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Admonishment of Cold Chain (1965)
Development of coldtemperature logistics
Development of frozen processed foods industry
Balancing of supply and demand system
Construction of highway system & cold storages
Legislation of stricter food safety standards
Foreign capital inflow
Technical advances in food industry
Liberalization of foreign capital investment
Public Wholesale Market
Government
Import liberalization of agricultural products
Private Sectors
Chain operation of food service and food retail
PPP scheme in building Cold Chain Infrastructure in Japan
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0
5
10
15
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
unit:
mill
ion
tons
Source: Japan Association of Refrigerated Warehouses
Trends in Capacity of Cold Storage Warehouses
Development of Cold Chain Infrastructure in Japan
1965 “Admonishment of Cold Chain”
More than doubled in 30 years (1972 – 2000)
Change of location:From “near the port sites” to “closer to consumers”
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0
1,500
3,00019
5719
60
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
2005
2008
2011
wei
ght:
1,00
0ton
0
50
100
Pene
tratio
n ra
te: %
Domestic Production - Frozen Processed Foods
ImportedFrozen vegetable
Imported FrozenProcessed Foods
Penetration ofHousehold
RefrigeratorPenetration of
HouseholdMicrowave
Source: Japan Frozen Food Association
Trends in domestic frozen food consumptionand penetration of home appliances
Development of Frozen Processed Food in Japan
1965 “Admonishment of Cold Chain”
Agricultural products import:1960: 1.7 billion USD2010: 53.6 billion USD
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Benefits from Cold Chain Infrastructure
Enhancement of Cold Chain Infrastructure HighLow
High
Low
Adde
d Va
lue
Increase in farm productivity / income
Reducingfood losses
Stable balancing of food supply / demand
Enhancement of food safety / nutrition standard
Development of food manufacturing industry
Sustainable increase in employment / income
Modernizing of retail / food service
Broader choice of foods and meal occasion
Growth of food industry
Increase in farm exports
- Cold storage at port site / closer to farm producers- Individual logistic by farm producers
- Cold storage closer to consumer- Flexible nationwide logistic network
Historical Development :Creating added value of food industry / Enhancement of cold chain infrastructure
- Comprehensive Food Supply Chain
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0
40
80
120US
A
Indi
a: 2
010
Chin
a: 2
010
Japa
n: 2
010 UK
Ger
man
y
Fran
ce
Sout
h Ko
rea:
201
0
Aust
ralia
Italy
Indo
nesi
a
Mal
aysi
a: 2
008
Volu
me:
mill
ion
cubi
c m
eter
s
0.0
0.2
0.4
0.6
volu
me
per p
erso
n: c
ubic
met
ers
Volume of Cold Storage Warehouse
Source: International Association of Refrigerated Warehouses, 2011
Total VolumeVolume per Capita
Correlation of GDP / Capacity of Cold Storage
Capacity of Cold Storage by Economies
U.S.
JapanSpain
Italy
Greece
AustriaSweden
Russia
Canada
India
ChinaBangladesh
Malaysia
Australia
Germany
FranceUK
Belgium
BrazilSouth Africa
0
30
60
0 15 30Capacity: million cubic meters / 10,000 persons
GD
P: 1
0 m
illio
ns /
10,0
00 p
erso
ns
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0
10
20
30
40
50
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
unit:
kg
per c
apita
82
252
401
830
919
1,451
2,564
2,993
2,775
3504
12,878
0 5000 10000 15000
Thailand
Taiwan
South Korea
Australia
Italy
France
Japan
Germany
UK
China
USA
unit: 1000tons
Frozen Food Consumption
USAUK
AUSGER
FRAJPN
ITA
TPEKOR
CHNTHA
Source: Japan Frozen Food Association, 2011
Trend in Frozen Food Consumption per Capita
Consumption of Frozen Food by Economies
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Training class to farmers Acerola Fruits
Acerola fruits in Brazil- Rich Natural Vitamin C
(Contain 34 times of a lemon)- Perishable & Delicate
Worldwide Market (since 1985)- Japan, EU, Asia- Health Conscious- Demand for Natural Vitamin C
Creation of New Business- Cultivation & Frozen Processing in Brazil- Worldwide sales of Processed Acerola Fruits
18,000km
Nichirei, Brazil (since 1978)- Processing facilities- Training of local farmers- Frozen processing technology- Breeding / R&D of Vitamin-C acelora species
Cold Chain Infrastructure
Acerola Business in Brazil - One of the Best Practice
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Minimizing post-harvest losses is “Critical” for emerging economies
Sharing developed economies’ technology innovated in the past to save food losses in emerging economies
Proposed Solution: Public Private Partnership
Public Sector Private Sector
Principle: Public Private Partnership
Infrastructure-Roads-Markets-Energy (e.g. electricity)
Public Awareness(e.g. Education)
Facilities-Cold Temperature Logistic-Frozen Processed Plant-Freezer at Retail Stores
Management of Operation
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1. Ongoing Public Infrastructure Projects:Extendable to include the development of foodmanufacturing industry
- Jakarta’s Metropolitan Priority Area (MPA) - Greater Mekong Sub-region’s Economic Corridors
East-West Economic Corridor (EWEC)Southern Economic Corridor (SEC)North-South economic Corridor(Kunming-Bangkok Expressway)
2. Private Sector – Nichirei Group:JV with Thai’s Siam Cement Groupin building a network of cold storage facilities
- Sep. 2013 – Cold temperature logistic business in Thailand and export of chicken products & fruits juice
- Future plan – Business expansion to Vietnam and Malaysia
JV with local food partners- Chicken processing business in Thailand - export of processed chicken products- Processed food business in Viet Nam
GMS Economic Corridors
Ongoing Infrastructure PPP Projects
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Infrastructure Projectse.g.) Jakarta Metropolitan Priority Area (MPA)
Master Plan
Steering Committee- Feasibility Study- RFP
Pilot Project
Recommendation
Cold Chain Infrastructure Consortium
Cold Chain Infrastructure + Food Industry
2013
2014
2017
2018
2020
Private Sector- Farm Producer- Financial Institution- Food Manufacturer- Refrigeration Engineer- Cold Logistic Company- Consulting Company
Public Sector- Governments- Int’l Organization- Community
APEC Economies- Approval
Comprehensive Food Supply Chain
Building a PPP Platform for Cold Chain Infrastructure
PPFS @ Medan 2013
7/6/2013
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Steps for building the Cold Chain Infrastructure through PPP:
1. Framework of dialogue between Public and Private (2013-2014)- Cold Chain Infrastructure Consortium
2. Formulation of public policy (2015-2016)- Food supply chain system, Farm production, Food manufacturing industry
3. Steering Committee (2017)- Feasibility study, Research Team,
4. Launch of selective PPP pilot projects (2018)- RFP, Project SPV, Project finance
5. Creation of comprehensive food supply chain- Farm production:
Regional network of public wholesale market, cold storage & primary processing facilities- Cold temperature logistics- Food manufacturing industry- Food retailing, Food service
Proposition – Next Steps
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Combination with Declaration in NIIGATA / KAZAN
Cold Chain Infrastructure – Achieving the goals of two Declarations
NIIGATA Declaration1. Sustainable development of the
agricultural sector 2. Facilitation of investment, trade and
markets
Increasing farm productivity
Increasing income for farmers
Increase of food export
Developing food industry
Improving hygiene and nutrition
Reducing food losses
Sustainable food supply chain
KAZAN Declaration1. Increasing agricultural production and
productivity2. Facilitating trade and developing food
markets3. Enhancing food safety and quality4. Improving access to food for socially
vulnerable groups of population5. Sustainable ecosystem management,
and anti-illegal fishing
Shared Goals Cold Chain Infrastructure
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Thank You Very Much
for Your Attention!