Camposol is the largest agricultural company in Peru and a leading producer of avocados and blueberries. Jose Antonio Gomez Bazan, the CEO of Camposol Trading, spoke about the company's plans for the Chinese market. He has just participated in a fair in China, organized by Alibaba and the Yiguo Profit Chain.
Camposol and China
The Chinese households' fresh fruits and vegetables consumption is growing rapidly. China is already an important market for global exporters of agricultural products. Currently, China represents 10% of Camposol's total exports. Gomez Bazan expects it will represent 30% of their exports in the medium term.
Last year Camposol opened its first commercial office in Shanghai to strengthen its ties with China and other Asian markets. The range of Peruvian agricultural products allowed to enter China has expanded in recent years. Currently it includes grapes, mangoes, citrus fruits, asparagus, avocados, and blueberries. Peru expects to be able to export more products to China, such as shrimp.
Another key to Camposol's strategy is the adoption and development of new retail models, such as electronic commerce. This is a key component of the company's strategy in China. Gomez Bazan highlighted the importance of electronic commerce data to maintain an efficient operation. Ultimately it leads to lower costs for the final consumer.
Agreement between Camposol and Win-Chain
At the summit, Camposol and Win-Chain signed a strategic cooperation agreement to export more products from Peru to China. Win-Chain will become an important customer of Camposol in China, starting in a few weeks with avocados. It will continue with blueberries when the season begins in July.
After previous negotiations with the management of Alibaba and Win-Chain, Gomez Bazan stated that this agreement would be beneficial for both parties. Camposol will decrease variability and costs in the Alibaba supply chain. Meanwhile, the Peruvian company will be able to use the resulting data to anticipate consumer trends and adjust production and packaging procedures.
According to the Peruvian executive, Camposol's experience in the US and European markets will be useful in China. He said that, to date, their business model had focused mainly on supplying retailers. In fact, last year, Camposol received the Supplier of the Year award from Walmart in the agricultural products category.
He also stated that it was important to recognize the differences in the requirements of the Chinese market and its consumers, such as in terms of product quality, size, and taste. Logistics is an additional challenge and China's storage, transport, and cold chain systems are still under development, he added.
Source: La Voz de Perú