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Oranges in China: the train could be the means of transport

April 16, 2019


Abstract : Plane or ship, eventually the train could be the means of transport. "The important thing is that the Sicilian oranges arrive in China". Federica Argentati, the Distretto Agrumi di Sicilia chairman, does not encourage the controversy of the past few days about the convenience...

MILAN, Apr 14 (Class Editori) – Plane or ship, eventually the train could be the means of transport. "The important thing is that the Sicilian oranges arrive in China". Federica Argentati, the Distretto Agrumi di Sicilia chairman, does not encourage the controversy of the past few days about the convenience, or not, of sending oranges to China by air. Following the RomaPechino agreement on the Silk Road, Oranfrizer highlighted that already now the cost of four Tarocco oranges to the Chinese consumer is 4 euros, while in Italy the price is around 2 euros per kg. If we add to this the costs of shipping by air, there would be a further increase of around 2.5 euros more for each kg of oranges. But for Argentati, sending oranges by plane "is only a possibility, it exists and can be exploited. With the plane it is gained time and freshness to the benefit of the quality of our products". And then "Alibaba asked us for our citrus fruits and therefore we did everything to bring them".

Meanwhile, on April 19th the first Rosaria brand oranges from Pannitteri will arrive in Shanghai, associated with the Distretto Agrumi di Sicilia and with the People of Sicily network of companies. Choosing to send a product by plane is a matter of costs. As explained by Salvo Leone, the Naturalmente Siciliano director, a consortium to sale fruit and vegetables. "We ship many products by air, but the oranges never. I've never been able to convince our customers. There is an big price differential".

The issue is not linked just to trafficking, but the logistics as a whole is more expensive. "If I am good, I can get a shipping price of 1.7 euros per kg, but it can even reach 2.2 euros. Then I have to take the product to the departure airport and have it picked up at the destination one, because the shipments are free carrier (FCA). Furthermore, by plane the pallets are halved, the space, which is usually not so much, must be booked in advance. I am in favor of the plane for fruit and vegetables, but it is possible to send a small quantity of product and the costs double, if not tripled, compared to the logistics by ship, where you spend 60-70 cents per kg and container management is easier".

Igino Colella – chairman of the Italy Round Table of Cscmp (Council of supply chain management professionals) – underlined how, in the end, the game is not worth the candle. "It is strange to think of sending oranges by plane; usually you do it with the first fruits, with fresh fruit coming from South Africa or South America. Exotic fruit can also be sold to the public at a price of 8 euros per kg. But certainly not oranges". And Colella opens up a new strategy. "It is not unreasonable to send goods by train also to China. It could be a viable solution".

(Source:Class Editori)

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