China's impact in California draws increased attention
China's impact in California draws increased attention
A conversation about global economics cannot be had without China factoring heavily into the discussion. While much is made of China's high-tech and manufacturing prowess, the Asian powerhouse is coming up in the world in agriculture.
The population of China tops 1.3 billion, and the country has a workforce of 700 million. Specialty crops are on the rise in China, a country rich in cheap labor.
Beiming Wang, a native of Shanghai in eastern China who is also rooted in the United States, has a unique role as a consultant to growers in China. There are not many Chinese nationals with U.S. roots serving in a similar capacity, Mr. Wang said. He came to study at Monterey Institute of International Studies in Monterey, CA, in the mid-1980s, and later taught international business management in China from 1987 to 1994. He has made a home in the United States ever since, and now lives part of the year in Monterey County, though today he spends the majority of the year in China.
Mr. Wang formerly grew broccoli, cauliflower, carrots and lettuce in Shanghai. Virtually all China's broccoli is grown in eastern China. Mr. Wang pointed out that some 150 years ago, there were Chinese field workers in the Salinas Valley and surrounding areas.
In the Salinas Valley, competition from China has significantly cut into growers' exports of broccoli to Japan. Mr. Wang estimated that it takes China one-third of the time that it takes Salinas Valley shippers to transport fresh produce by sea to Japan. And China growers' labor costs are less than a third that of U.S. growers, he said. Therefor, broccoli growers in China can compete well against California's broccoli growers, he said.
"Broccoli is not a strong item in China," Mr. Wang said. "It's produced for export. Tier I quality sells to Japan -- everything must be the same size.
Mr. Wang's view is that China's growers have a long way to go to catch up to the quality of California-grown strawberries, but that quality is improving. "The [Chinese-grown] strawberries are not of the same quality, Mr. Wang said. "The best strawberries look similar but taste different.
China's other crop exports to Japan include ginger and onions -- red, yellow and green -- and cabbage. Farm-gate value of China's cabbage is five times that of its broccoli, Mr. Wang said.
Growers in China still lag behind U.S. growers on quality-control standards and pollution matters, thus their products face a greater risk of being rejected, Mr. Wang said. But growers are thinking on a grand scale more so now than in years past and want information on U.S. business styles and views on long-term trends, he said.
"Farmers want big management concepts, Mr. Wang said. "They want to know how to view international markets. He said that Chinese growers also ask "how much farmers are making in Monterey and Watsonville.
Mr. Wang said that while lower-level workers in U.S. produce operations are not likely to be involved in big-picture thinking and strategic planning, in China such constant attention occurs from the top down. "Life quality is terrible and low-level workers are not happy, Mr. Wang said.
While U.S. high-tech companies are increasingly setting up offices in China and linking up with Chinese businesses, Mr. Wang foresees smaller efforts rather than systematic efforts within agriculture. "Farmers are conservative in every society, Mr. Wang said.
In May, a contingent of eight Western Growers Association members and staffers ventured to China on an information-gathering trip. The group was led by Tom Nassif, president and chief executive officer of Western Growers. The week-and-a-half-long trip included visits to food shows in Hong Kong and Shanghai.
John Baillie of Baillie Family Farms/Tri-Counties Packing and chairman of the Salinas-based Grower-Shipper Association of Central California said that he came away from the trip with a greater appreciation for China. Mr. Baillie grows lettuce, broccoli, celery and other crops on 1,000 acres in the Salinas Valley.
"I had a wall -- you're not going to take away my business, Mr. Baillie said of his attitude before the trip. "We had some great dialogue there.
Mr. Baillie, a third-generation grower, said that specialty crops are on the rise in China, despite the country's relative lack of technology in its fields. "They are still using oxen, Mr. Baillie said, adding that there are no sprinkler systems but there is some drip irrigation in use.
Mr. Baillie said that he saw fresh produce in stores that in appearance rivaled the product he might find in the Salinas Valley, including Iceberg lettuce and cauliflower. Except for Sunkist oranges, that produce was all grown in China, he said. He was surprised to see pre-made salads in a Carrefour supermarket in Shanghai. Because most homes do not have refrigeration, the Chinese shop daily, he said.
The quality of China's produce will improve as growers learn more about seed varieties by trial and error, he said.
"In the Salinas Valley, we aren't dominant anymore, Mr. Baillie said. "To think that this will always be the 'Salad Bowl of the World' & we've got to be adaptable.