In Hong Kong, imported fresh fruit has been growing in popularity for some years. Variously seen as an essential component of a healthy diet, and a welcome (and sometimes festive) gift when visiting family and friends, its popularity has endured despite the post-COVID economic downturn. It may be a luxury, but for some it’s also a necessity. In this issue of Hactlink, we talk to five businesses that help to deliver fresh fruit to Hong Kong’s tables.
“In 2023, fresh fruit and vegetables accounted for around 9% of Korean Air’s cargo business; but on its Hong Kong services, that figure rose to 15%.”
In 2023, fresh fruit and vegetables accounted for around 9% of Korean Air’s cargo business; but on its Hong Kong services, that figure rose to 15%. The airline carries fruits such as Korean strawberries, American cherries, Thai mangoes as well as berries, grapes and peaches from various regions of the world. The strawberries account for the largest share of this traffic: most originate from Korea, and some also come from Japan.
Says J.D. Eum, Head of Korean Air Cargo Business Division: “In recent years Korean strawberries have emerged as a high-end food commodity within Hong Kong and Southeast Asia. They have only about a seven-day-shelf life, so are almost entirely transported by air to maintain freshness. It is of the utmost importance that this cargo is transported quickly and at the temperature requested by the customer.”
Accordingly, the airline is expanding its fresh cargo storage facilities and working with service partners to create synergy and improve efficiencies. Korean Air’s Incheon Airport Cargo Terminal can accommodate 100 tonnes of perishable cargo in refrigerated storage and, since September 2021, the airline has been operating the Cool Cargo Center adjacent to the Incheon Airport passenger terminal apron.
“This facility can store and process more than 150 tonnes of perishables and medical products, with six temperature-controlled zones adjustable from -20°C to +22°C, that are monitored in real time. As this facility is located beside the apron, cargo can be easily loaded onto passenger aircraft or transferred between planes, minimising the transport distance and time, and so maintaining the freshness of the cargo,” Eum explains.
Tripled
According to Japan Airlines, the export value of Japan’s agricultural products has tripled over the past 10 years, reaching 900 billion yen in 2023. The main reason for this growth is the Japanese government’s regional development and agricultural promotion policies, which encourage the exports. The weaker yen is also helping.
“The export of fruits, which are special products from various regions of Japan, plays an important role for Japan’s local economy and agriculture,” says Japan Airlines’ General Manager Cargo & Mail Hong Kong, Macau & Southern China, Kensuke Sugiura. He says the most common fruits grown in Japan are apples, strawberries, peaches, grapes, melons, cherries, and persimmons. Apples are exported by sea as they have a longer shelf life, but the others travel by airfreight. The top Japanese fruit imports to Hong Kong are strawberries, followed by peaches, grapes and melons.
“The strawberries produced in the Kanto and Tohoku regions are consumed in Tokyo, but Kyushu exports a large amount because there is not much difference in the transportation time to Tokyo and the international flight time from Fukuoka to other parts of Asia,” Kensuke Sugiura adds.
Exports from airports close to production areas are the most popular, continues Kensuke Sugiura. “Japan Airlines operates international flights from Haneda and Narita, and mainly transports fruits from Okayama in the west and Chubu, Kanto, and Tohoku regions.” Passenger flights are favoured due to their greater frequency.
In Japan, as fruits are not stored for long periods of time, they do not usually need to be kept in refrigerators unless the weather is extremely hot. In Narita city, its public market, Narita International Airport, and the JAL warehouses are working together to promote the export of fresh fruits and vegetables. Products are stored at the public market, in a facility where the temperature and other conditions are controlled, until delivery to the airport. This helps to shorten the time the cargo has to wait at the airport before departure.
“The strawberries produced in the Kanto and Tohoku regions are consumed in Tokyo, but Kyushu exports a large amount.”
Connectivity
Meanwhile, EVA Air says fruit traffic is one of its key and stable revenue streams, and shippers are most concerned with how shipping time can be shortened to ensure the freshness of fruits.
The airline has a number of advantages in fruit traffic. Firstly, its flight network covers most major cities in the world – especially its frequent passenger flights, which reach major cities in North America, Europe and Asia. This high connectivity ensures seasonal fruits from all around the world can be delivered to their destinations speedily. The high on-time performance record of EVA Air’s passenger flights is another key to shipping fresh fruits.
In addition, the airline’s experienced team monitors its operation to ensure every step of its delivery process reaches the highest standard, from storing and packing fruits onto pallets, to delivering the fruits safely and speedily to their final destinations.
According to Ken Leung, Business Development Manager of importer Star Taste Global Trading Co. Ltd, 80% of the fruits imported to Hong Kong are from Japan; they are predominantly strawberries, peaches and melons. The remaining 20% are from Taiwan (mangos and pineapples), Korea (grapes), and Malaysia (chiefly durians). Over 90% of the fruit is for Hong Kong itself, with a small proportion re-exported to the UK.
Ken describes 2015-2019 as the “golden period”, when the local economy was strong and Hong Kong consumers had money for premium fruits. The market remained stable during COVID as people could not travel abroad; but demand for premium-priced Japanese fruits has dropped recently, as the city’s economy struggles after COVID. Cheaper alternatives such as “Shine Muscat” grapes from China have impacted demand, tasting almost the same as Japanese versions.
Star Taste Global Trading has buyers at the local wholesale fruit markets auctions in Japan. It also has contacts with some local farms with which it directly places orders. The shipping process is handled by local logistics agents employed by the grower or wholesaler.
“The high on-time performance record of EVA Air's passenger flights is another key to shipping fresh fruits.”
“During seasonal peaks such as the Mid-Autumn Festival and Chinese New Year, the Fruit Market is packed with consumers, truckers, agents, and even tourists.”
Fruit market
Ken’s company supplies supermarkets, smaller retail outlets and online shops; demand from the latter has been on the rise in recent years. “Most of my imports are channelled through Yau Ma Tei Fruit Market,“ says Ken. “It is still the heart of Hong Kong’s fruit trade. During seasonal peaks such as the Mid-Autumn Festival and Chinese New Year, the Fruit Market is packed with consumers, truckers, agents, and even tourists.”
Ken says consumers usually want whatever fruit is fresh and in season. “Large retail chains and supermarkets normally have standing orders, while other customers usually place daily orders in varying quantities via Whatsapp,” he continues. The main problem is flight delays: “Sometimes we have to work with other importers at our own expense, to ensure order fulfilment for our customers.” Peak demand is around holidays such as the Mid-Autumn Festival and Chinese New Year, when people visiting family and friends often take fruit as gifts.
Around 75-80% of imported fruit travels by air, and the ratio is fairly constant. Ken says temperature control is of great importance in maintaining optimal condition of the fruits, especially during the hot Hong Kong summer. Once the flight lands at the airport, he explains that the fruits are unloaded and briefly stored at cargo terminals such as Hactl, whose accredited temperature-controlled facilities help ensure the fruits are kept in their best condition. Then, his refrigerated truck fleet collects and transports them to the Fruit Market, then finally to the retailers. “Usually we deliver the fruits in their original transport packing; there are transport agents at the Fruit Market who also do re-packing and distribution to retailers.”
Fortunately, spoilage in transit remains low – around 2-3% – usually caused by the bumpy ride during road transportation. “This is simply unavoidable. Our staff perform quality checks before order fulfilment to make sure we supply only high quality fruits to customers.”
“Market demand is often driven by what the media has been promoting, such as “star apples” or “cocktail avocados".”
Daily orders
Online retailer Ip Chung Kee is one of the new generation online fruit vendors serving the Hong Kong consumer market. It also reports demand for Japanese premium fruits is strong, attributing this to increased supply in recent years that has led to a drop in prices.
“70% of the fruits we sell in Hong Kong are from Japan: peaches, grapes, melons, strawberries, plums, persimmons, etcetera,” says fruit specialist Kaman Wong. Market demand is often driven by what the media has been promoting, such as “star apples” or “cocktail avocados”. To meet this ever-changing demand, Ip Chung Kee usually places daily orders to ensure fruits are fresh, and sold to customers in the best possible condition. “Some customers expect their fruits to be ‘ready to eat’ and ripe upon delivery, while others want their fruits to stay fresh and be stored at home for a few days; it’s crucial to understand customers’ specific requirements in order to keep them satisfied,” adds Kaman.
Online fruit selling is still a relatively new phenomenon, which gained a boost from COVID, she continues: “During the COVID lockdown, business was good as consumers preferred buying fruits online and having them delivered to the door. But after COVID, people are travelling more so they tend to spend less on premium fruits, since they are not a daily necessity. But we have gained very stable customers and corporate clientele over the years.”
Kaman agrees temperature control is crucial in keeping fruits fresh and in optimal condition. “Fruits are stored in our chillers and packed in our store. We arrange delivery by our own drivers, and the packed fruits are delivered to our customers’ doorsteps within 2-3 hours.” To prevent damage or “bruising” during the road journey, fruits are packed with extra layers of protection.
Next time you bite into a fresh, succulent strawberry, spare a thought for all those who worked round the clock to bring it to your table!