China further reduces tariffs on Australian wine February/March 2018

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1 February/March 2018 China further reduces tariffs on Australian wine At a time when Australian wine exports to China are at an all time high, China has further reduced tariffs on Australian bottled and bulk wine, which is set to boost Australian wine exports to the country. Starting from 1 January, 2018, import tariffs on Australian bottled wines to China have been cut from 5.6% to 2.8%, while tariffs on bulk wine have been reduced to 4%, based on the two countries Free Trade Agreement signed in December The agreement paved the way for a reduction in tariffs over a few years until 2019, when they will be completely scrapped. In the first year after the FTA agreement, China s demand for Australian wines surged. In September 2016, the country became Australia s top export destination, outstripping the US as its top value market, according to Wine Australia. Mainland Chinas position as the number one destination for Australian wine exports by value was consolidated during the years 2016 and Exports grew by 44% in value to AU$607 million, according to figures released by the country s trade organisation. In China, Australian wine s market share has been steadily growing. By the end of November in 2017, Australia had a 27.1% market share in terms of market value, following France s 41.1%, based on figures just released by the China Association of Imports and Exports of Wine & Spirits. Officials from China and Australia signing the bilateral Free Trade Agreement in 2015 In its most significant development, Australia, in the single month of October, surpassed France as China s biggest source of imported bottled wine for the first time. Although France reclaimed its position in November, Australia registered the highest value growth rate of 111.3% year-on-year. About 10.6 million litres of bottled Australian wine worth over US$80.67 million was shipped to China, slightly shy of France s US$96.65 million, based on the Chinese trade organisation s data. In January 2018, China has signed FTA agreements with a few wine producing countries including Australia, New Zealand, Chile and Georgia. Source: If you have any further questions please do not hesitate to contact food & beverage logistics China: Ms Daniela Gracia (China Team) FBLOG Manager Greater China Phone (+85 2) daniela.gracia@hartrodt.com Ms Ling Wu (Australia Team) Customer Service Supervisor Phone (+61 8) ling.wu@hartrodt.com

2 Frozen macarons from France to Peru At the end of December 2017, our office in Lyon/France delivered a shipment of frozen macarons to Lima. This shipment was sent for the famous and well known Fauchon company. After the collection of the frozen macarons by our a. hartrodt team in France, the shipment was packed in our frozen warehouse located in Rungis. (The Marché International de Rungis (or Rungis International Market) is the major market of Paris and France, located in the city of Rungis, in the Southern suburbs. It is the largest wholesale food market in the world). The Marché International de Rungis Specific packaging with polystyrene material inside "CO9" with dry ice were used to maintain the macarons at the appropriate frozen temperature. A temperature recorder has also equipped the shipment to control the temperature. The shipment had to be kept at any time at about -18 C. The a. hartrodt team in Peru handled the shipment after the arrival in Lima. The frozen macarons have been delivered safely to the boutique - well done a. hartrodt France and Peru. Duesseldorf Germany

3 Technical terms: temperature monitoring In combination with the transport of temperature controlled cargo, we as food & beverage logistics can offer you the possibility of temperature monitoring throughout the whole transport chain. From the loading warehouse up to delivery at destination. food & beverage logistics can offer you an USB Datalogger: The USB Datalogger (TempTale 4 USB) creates a secure Adobe PDF format shipment report, without installing proprietary software or hardware readers on your computer. Access to the Adobe PDF format report with commonly available reader software permits on-site shipment decisions without system deployments, staff training, and computer installs. Technical data: Temperature Measurement Range: Temperature Resolution: Data Storage Capacity: Max. Recording Timeframe: Battery Life/Type: Data Sampling Interval: Start-Up Delay: Typical Dimensions: Weight: Monitor Recording Options: -30ºC to 70ºC (-22ºF to 158ºF) 0.1ºC/F over full temperature measurement range 16,000 data points 77 days 1-year run life/3.6 V lithium Programmable from 10 seconds up to a maximum of 2 hours Minimum 0 seconds, Maximum 194 days 10.0cm L x 5.5cm W x 2.1cm H (3.95" L x 2.18" W x 0.82" H) 71 grams, 2.5 ounces Single use An additional humidity monitoring can be also arranged. If you have any further questions please contact your local food & beverage office.

4 Introducing our colleagues around the world - Spotlight on: FBLOG Peru NICKY CORROCHANO! 1. When did you start working for FBLOG and what is your job function? I have been working for a. hartrodt 18 years and we started our F&B setup in Being part of the senior management team, my job function is to lead the team and manage the priorities with a strong focus in sales and our people. 2. What have you experienced/learned working in FBLOG and what do you enjoy most about your job? I have learned that in this business every day is different and we have to be open to reinvent ourselves with our clients needs. Nowadays all businesses need to have a strong emphasis on innovation/technology and I enjoy immerse this philosophy into the company. 3. If you had to describe the Peruvian FBLOG team in three words, which would they be? Specialized in its field, committed and passionate. Nicky Corrochano, Managing Director a. hartrodt Peru (left) and his team 6. Last and most important question to someone working in the F&B industry - What is your favorite drink and food? It is currently summer time in Peru, so I would have to say Ceviche (Peruvian fish dish cooked only with lime juice) and a gin tonic. 4. Where do you see the potential for FBLOG in Peru now and in the future? Peru s economic growth provides a nice scene that allows us to develop FBLOG in Peru. We are currently focused on developing our perishable export operations and in a near future we will be looking into the imports side of the business. 5. What do you see yourself doing in the next few years at FBLOG? Consolidate our position as a leading freight forwarder in the perishable business and use our knowledge to create new business opportunities within the F&B industry. Also working continuously on the development of our team so we can be prepared for the future. If you have any further questions please do not hesitate to contact food & beverage logistics Peru! Mr. Nicky Corrochano Managing Director Phone (+51 1) nicky.corrochano@hartrodt.com

5 SPECIAL New Potential Market for fblog: Fresh Fruits (Volume 2: Wholesale Market in Guangzhou) The Area of the Importers & Exporters The inspection zones for the imported fruits usually prohibit the entry of visitors. Somewhere around the corner of the imported fruits area, there is a lane that is not too noticeable. This is where the offices of the smaller-sized fruit trading companies are located. Jiangnan Fresh Fruit & Vegetable Wholesale Market Located in the Baiyun District in Guangzhou, Jiangnan Fresh Fruit and Vegetable Wholesale Market is the biggest wholesale market for perishable agricultural products in Guangzhou. The fruits from all over the world are allocated here and then distributed to different locations along the Pearl River Delta. Up to 1,000 tons of vegetables and fresh fruits are imported and exported here each day. The imported fruits zone The refrigerated warehouse of the big fruit importers are all located here

6 SPECIAL New Potential Market for fblog: Fresh Fruits (Volume 2: Wholesale Market in Guangzhou) It was lunch time when we visited there. People were having lunch together inside the offices. There were also old people and kids by the table, with the TV on, which is an obvious sign that these trading companies are family-owned businesses. Another characteristic of these traders is that they are highly protective of their own business as the agricultural market often generates enormous profit or loss. Therefore when they saw us as an outsider around the area, they were looking at us with high awareness and were not willing to disclose much information when we talked to them. Finally we passed by the company Goodfarmer. While we were taking pictures, Mr. Cao was getting out of the office. He came to talk to us. He explained to us that the company Goodfarmer uses the cold-chain trucking companies for transporting the fruits products within the country. He also mentioned that their warehouse is in Dongguan and we may go there for a visit. Some thoughts after the visit to the market Right now it is a bit challenging for us to enter this market because the transportation decisions are mostly controlled by the exporters. In the case of China, the fruit trading enterprises mostly import fresh fruits from all over the world. In terms of incountry delivery, they usually work directly with cold-chain trucking companies under competitive rates due to the large amount has to be transported daily. Apart from the market situation, the characteristics of people working in this industry is another barrier. As mentioned before, many agricultural businesses are family-owned, and due to the fact that they are related to considerable profit and loss, the owners would usually only involve people of their trust into their business. Therefore, apart from building up knowledge of this industry, it is also very important to start making connections in the market. Even though it may not possible to secure any business at first, the contact should be kept on going as the trust is gained bit by bit. P.S. The visit to the wholesale market was made by Helen Ng (F&B HK) and Fenly Luk (F&B Guangzhou). Special thanks to Fenly s effort on organizing the visit. If you have any further questions please do not hesitate to contact our colleague in China! 巨野县佳农食品有限公司 jianonga23@goodfarmer.com Ms Helen Ng Customer relations & support food & beverage logistics Hong Kong Phone (+852) helen.hg@hartrodt.com Duesseldorf Germany

7 FRUIT LOGISTICA in Germany successful participation Once again our colleagues from Lima and Hamburg travelled to Berlin, especially for the FRUIT LOGISTICA. Our Peruvian office had a stand inside the Peruvian Pavilion recently at FRUIT LOGISTICA trade fair in Germany. Receiving the visits of importers and key players of this growing business. 3,077 exhibitors from 84 countries and 76,238 visitors attend FRUIT LOGISTICA fair every year to realise their full business potential within the international fresh produce. This year, a. hartrodt group was represented in the Peruvian pavilion in Berlin. Many new international contacts were made, interesting talks and not to mention they had the opportunity to meet their existing customers. Our expectations of the fair had been fully achieved. Our team from Germany and Peru. Special guest: Willem van der Schalk (CEO AH Germany), on the right. Save the date: Did you miss the exhibition this year? You still have the chance to participate in the next edition of ASIA FRUIT LOGISTICA that will be held from 5-7 September 2018 in Hong Kong. Or you come to Berlin next year: FRUIT LOGISTICA 2019, 6-8 February We are looking forward to seeing you!

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