Poor Logistics, Lack Of Farms Limit China's Tilapia Market

The high cost of air transport, and difficulties keeping tilapia fresh using land transportation, are costing the market its full domestic potential.

According to an article published by Hexun News, the tilapia market in China’s Hainan province has decided to turn its attention towards domestic sales, but ahs struggled in the effort because of poor logistics and a reduction in available farming areas in the region.

“If the companies want to develop the domestic market better, one effective way is to further process the tilapias,” a Hainan producer told the newspaper. “In this way, it can not only solve the problem of logistics but also increase the tilapias’ added value”, said a Hainan producer.

In this undercurrentnews.com article, the author speculates one solution is to build an e-commerce platform as well as cold chain logistics.

The Hainan companies usually transport their live aquatic products by air, but the packing expense is very high because the companies have to buy air freight containers from the airport which are much more expensive than the price in the regular packaging market. The logistic problem takes a toll on the competitiveness of Hainan tilapias in the domestic market, and the Hainan aquatic product companies say that the government should take measures to help them in the development.

However, it is still impossible to rely on the e-commerce platforms for the sales of Hainan aquatic products, said Guo Hongxing, the general secretary of Hainan Electronic Commerce Association (HECA). “The lack of a cold chain system is what influences the development of Hainan aquatic products’ e-commerce”, he added. There are only a few logistic companies in Hainan with the required refrigerated trucks, according to the research of HECA. But the situation will improve in two to three years with the efforts of different parties.

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