In recent years, along with the expansion of the Mengyin honey peach industry, the Chinese domestic market has become increasingly saturated, also the competition in the industry has led to smaller and smaller profit margins. This is why Wanhua Food Corporation focuses on foreign markets, first aim: Dubai.
Profits on foreign markets are substantial, but fruit quality requirements are very strict. In Dubai, all imported fruits must have an export authority certificate, with records of the production base, production area and wrapping area. Furthermore, there are strict work regulations and hygiene requirements for the production process of fruit.
After strict examination, newly built market transaction platforms with tons of fresh fruit were approved in Mengyin in 2014 and the construction of Wanhua Food Corporation started. Investments amounted to 3 million Yuan. The project was completed the same year, realizing a 40000 ton increase of fruit sales, sales revenue of 24 million Yuan with a profit of 707,000 Yuan. The annual income of local fruit farmers increased with 5000 Yuan.
Now, Wanhua Food Corporation already started to build a public service fresh fruit inspection platform. Total investments in this project amount to approximately 3 million Yuan. The expected annual amount of inspection transactions is 10,000 tons. The target for the increase of yearly revenues is 4 million Yuan.
Source: China Financial and Economic Online News