Farmmi to develop agricultural supply chain in China
Farmmi plans to build on its core business of high-quality agricultural products to grow into a comprehensive service provider for the agricultural industry chain.
Farmmi, Inc., an agriculture products supplier in China, has announced the establishment of Zhejiang Farmmi Agricultural Supply Chain Co., Ltd. Leveraging more than two decades of experience in China’s agriculture industry, Farmmi plans to build on its core business of high-quality agricultural products to grow into a comprehensive service provider for the agricultural industry chain.
The Company plans to invest in companies with storage facilities which could extend the Company’s logistics network. At present, the penetration rate of the digital economy in agriculture in China is estimated to be only 8 per cent, compared with 36 per cent for industries in China as a whole. The number of rural internet users exceeded 300 million, while the number of agricultural products sold via internet or supply chain is still small.
Agricultural products require an extensive supply chain, including storage and cold chain facilities, due to the freshness and quality control required, which presents both challenges and opportunities for the agricultural supply chain. On the other hand, recent years have witnessed the rapid expansion of agriculture e-commerce.
With the expansion of supermarkets, fresh stores, agriculture e-commerce and O2O (online to offline) platforms, the integration of online and offline retail channels presents an irreversible trend. Therefore, the Company plans to expand its presence in smaller local and larger regional storage facilities, as part of its strategy to become a comprehensive service provider for the agricultural supply chain.
Farmmi plans to build on its core