2012/11/22

Leading to the Third Generation: HiGreen Wholesale Markets

20 November 2012 Chandigarh, India

Elton ZHANG Shenzhen Agricultural Products Co., Ltd.

Contents
1 Evolvement of Wholesale Markets in China 2 An Overview to Shenzhen HiGreen Market 3 Planning & Design 4 IT Applications 5 Food Safety & Quality Assurance 6 Supporting Facilities 7 Environment-friendly Solutions

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1. Evolvement of Wholesale Markets in China

First Generation of Wholesale Markets (1980 to 1990)

1. Evolvement of Wholesale Markets in China

First Generation of Wholesale Markets (1980 to 1990)

Formed spontaneously Built and managed by villagers Most of the sellers were farmers and self-employed individuals Small area and scale Often unsheltered Most loading and unloading by hand Dirty and poorly managed

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1. Evolvement of Wholesale Markets in China

Second Generation of Wholesale Markets (1991 to 2010)

1. Evolvement of Wholesale Markets in China

Second Generation of Wholesale Markets (1991 to 2010)

Demand for supply grew fast as urban population expanded rapidly Large number of wholesalers and distributors came into the business Wholesale markets became the major channel for fresh produce distribution Most markets were invested and operated by private companies Larger area and trading scale, management and service still poor Low level of logistical efficiency, food hygiene, and IT application Location gradually became down town area and usually congested both in and outside the market

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1. Evolvement of Wholesale Markets in China

New stage of development: the emerging 3rd generation markets

Better awareness by the governments of the key role of wholesale markets to ensure sufficient and stable food supply for fast growing urban population Food safety becomes a major concern of the community and the government. Responsibility has been given to wholesale markets Well developed national highway system makes it possible to bring by trucks fresh produce to any domestic city within 1-2 days Big rooms seen to improve efficiency of trade & logistics and to lower the cost of supply by better infrastructure & management and application of cold chain & technologies More and more capital injected in the business

2. An Overview to Shenzhen HiGreen Wholesale Market

Shenzhen HiGreen Market: Leader and best example of the 3rd generation markets
Advanced new infrastructure with both hardware and software support facilities Greatly improved logistical efficiency Better conditions and practices for food hygiene More and stricter food safety assurance Possibility to adapt to full cold chain operation IT applications Environmental-friendly solutions

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2. An Overview to Shenzhen HiGreen Wholesale Market

Shenzhen HiGreen Market (Phase 1) : Facts & Figures

Land area covered: 303,000 square meters

Floor area built: 400,000 square meters Investment: RMB1.08 billion Yuan Investor & Operator: SZAP Population served: 14.5 million Category of foods traded: vegetables, fruits, frozen foods, grain & oil, non-staple foods, tea Number of vendors: 1,286 Annual tonnage of foods traded: 1.6 million Annual turnover: RMB19 billion Average daily entry of vehicles: 12,500

2. An Overview to Shenzhen HiGreen Wholesale Market

The market is relocated from an old one existed for 22 years

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2. An Overview to Shenzhen HiGreen Wholesale Market

The market is connected to highways by a single access road

3. Planning & Design

The market layout is planned by grouping categories and functions

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3. Planning & Design

Main entrance/exit and 3-level road systems

3. Planning & Design The 4-lane, one-way only ring road (level 1) ensures fast and smooth access to any target zone, then a vehicle can reach any destination by the level 2 and level 3 roads

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3. Planning & Design

Plenty of parking space is provided

3. Planning & Design Parking spaces for long and medium sized trucks, and light vehicles

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3. Planning & Design

Distance between the trading halls is set by the length of most frequently used in-coming vehicles and the width of the lanes of road, to eliminate conflicts between unloading and passing trucks

3. Planning & Design

Plenty of space between trading halls ensures smooth traffic

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3. Planning & Design

Platforms and purchasing channels enable the use of forklifts and pallets

3. Planning & Design

To overcome the altitude difference of the site, two ground levels are established, with slopes and suspended roads accessing three levels of the multi-floor buildings

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3. Planning & Design

Ventilation of trading halls Specially designed drainage

Lighting in the air-conditioned halls

4. IT Applications

Electronic Cashless Trading System

...

IBM Compatible IBM 37XX

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4. IT Applications

Integrated information system:

security monitoring fire alarm information and voice broadcasting data collecting & analyzing information products

5. Food Safety & Quality Assurance

Third-party quality test: F.Q.T

Food safety issues in China nowadays stir up the public nerves and draw great attention from the government Wholesale markets have the responsibility and obligation to test the agricultural products traded in their markets and monitor the food safety according to the Food Safety Law effected in 2009 Shenzhen HiGreen Market SZAP invited an independent third-party quality testing agency FQT (Food Quality Testing) to set up a food testing laboratory inside the market

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5. Food Safety & Quality Assurance

F.Q.T
Independent third-party with national accreditation
Fast testing & Quantitative determination Covers 1,000 testing items; 800 samples tested per day Comprehensive one-stop food quality & safety solutions including testing, consulting, and training for wholesalers, purchasers, growers, processing and distribution businesses, and related companies

6. Supporting Facilities

Food processing and distribution

Covering an area of 41,600 222 business stalls, over 160 vendors Processing volume 1,450 tons daily, among which 84% is purchased directly from the wholesale market

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6. Supporting Facilities

Warehouse & cold storage

warehouse floor area 31,270 m2 15,635 tons of storage capacity, which can basically meet the demand of nonstaple foods storage in the market A cold storage with total floor area of 30,137m2 and capacity of 20,000 tons is under construction

6. Supporting Facilities

Other facilities
A bank already opened inside the market An office building with totally 25 floors is under construction An apartment building project was lunched in August 2012 with target completion in 2014

Agricultural Bank

Office building

Apartment building

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7. Environment-friendly Solutions

Pioneer of Environmental Protection

The market is the first and the only wholesale market in China to equip with multi-environmental protection facilities like sewage treatment, solar energy collecting system, and mash gas power generation plant (to be built)
Solar energy colleting boards on the roofs

Sewage treatment plant

7. Environment-friendly Solutions

Sewage treatment & Water recycling

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7. Environment-friendly Solutions

Organic waste treatment (to be built)

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