, China

Cold-chain network may gain ground in China's meat industry

Larger players will gain the most from the greater attention on food safety.

The rise of e-commerce food channels and the desire for higher-quality food after the pandemic could boost the development for a cold-chain network in place of the current open-air markets for animal products, according to a report from Bain.

The report noted that improving the warehousing and last-mile delivery options will be paramount as consumers become more willing to pay a premium for fresh, high-quality meat.

The greater attention on food safety will benefit larger players that can invest in modernizing production lines to standards common in the US and Europe, including more refrigeration.

Big players can vertically integrate throughout the value chain to give them more control over raw material prices, quality and supplies. On the other hand, these will drive smaller players with weak cash positions out of business.

Authorities in China will shift toward food-safety standards more in line with European regulations, which cover the whole value chain and include more robust food tracing and a more mature alert system.

Outdoor food markets have been hit hard, as most were temporarily shuttered amidst the outbreak. Whilst some markets outside of Wuhan are reopening, the impact is tipped to last long, as hygiene regulations and enforcement could become stricter.

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