Zhang, Shane and Woodhead, Alice (2016) Toowoomba to China: cold chains and premium food exports by air freight. Project Report. University of Southern Queensland, Australian Centre for Sustainable Business and Development , Toowoomba, Australia. [Report]
Abstract
The Darling Downs region where Toowoomba situates is the largest agricultural producing area in Queensland and the second largest in Australia. The opening of Brisbane West Wellcamp Airport (BWWA) presents new market access opportunities for agricultural businesses and related industries in Toowoomba and its surrounding areas. Exporting perishable products through BWWA is expected to provide steady job opportunities and economic growth to this region. However, exporting agricultural products requires a seamless supply chain, particularly for premium perishable food where the cold chain needs to be carefully managed and monitored from the origin in Australia to the destination in Asia.
This report discusses the possible flow channels for Australian agricultural products from Wellcamp to China and assesses the role of cross-border e-commerce and cold chain system in facilitating the export of perishable goods to China. Key points:
• Zhengzhou has been identified as an ideal import and export port and distribution centre, for perishable products because of its strategic location, excellent transport connectivity, supportive customs and quarantine policies, and reliable infrastructures being constructed.
• Cross-border e-commerce has become increasingly popular in China and could serve as an effective platform toplatform, to distribute perishable food products and represent a new mode of international trade. However, the Chinese government is set to regulate the cross-border e-commerce, and, therefore, be prepared to respond to any new changes and regulations imposed on this sector by adjusting their export strategies accordingly.
• The construction of massive cold chain infrastructures in China presents enormous opportunity for Australian cold chain industry to export designing and engineering services. The participation of Australian logistics firms with their experiences and expertise will benefit not only Australian food exporters in terms of mitigating the possibility of disruptions in food supply chain, but also other Australian businesses in China such as restaurant operators that rely on reliable cold chain services.
• To capitalise on the opportunities in Zhengzhou and across Asia and to ensure the consistent production of safe, quality premium agricultural produce, Toowoomba and Southern Queensland need state of the art cold chain and food processing facilities. It is recommended that along with cold-chain networks, a food processing cluster be developed around the Toowoomba airport. This will enable greater value creation of premium branded and chilled produce from Southern Queensland to Asia.
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