B&R Initiative Opens Market For Dutch Dairy

Added On May 4, 2017

Proposed by China in 2013, the Belt and Road Initiative is now facilitating better trade between China and European nations.

Among those benefitting from the initiative is the Netherland's biggest dairy company, Royal FrieslandCampina. It can now reach their Chinese customers through rail transportation.

Let's take a look.

More than 15,000 cans of the Dutch company's infant formula Friso are being loaded into this 45-foot-high cube container.

They will first travel by truck to Herne in Germany, where they will then be loaded onto the China Europe Rail Express, eventually arriving in southwest China's Chongqing Municipality.

To make this happen, Mischa and his colleagues from Royal FrieslandCampina have been working on the project for nearly two years.

Mischa said the train freight has many advantages compared with other means of transportation.

SOUNDBITE (ENGLISH) MISCHA BROEDERS, FrieslandCampina Logistics Manager
"I think the advantage compare to air freight is that the cost is way lower. It's roughly ten times cheaper than making use of air freight. That's a lot of money. Our farmers are also benefiting from it. If you compare it to ocean freight, you see the transit time is like roughly half of the transit time of ocean container. So that means roughly the saving of almost 20 days, which of course enables us to reach our Chinese customers faster."
This first trial shipping will reach China in about 2 weeks, travelling through many countries en route.
If the rail transportation proves successful, the company could decide to use China Europe Rail Express in the future.

SOUNDBITE (ENGLISH) WALTER VERMEER, FrieslandCampina Procurement Manager
"So this test trial we will evaluate, if this is really successful then we will continue. Because this for us is a very interesting way of transporting our products to China. 删掉That means we will look into expanding the volume apart from this first container. It will be more and in the end we might even use a full train with Friso products to move to China. This container is very well able to transport a lot of other goods that FrieslandCampina wants to sell. And depending on the demand on the market, we could also use the same transport also for other product types. So yes, it will be a really interesting option. "
The logistic team said food safety and transportation speed are the two key factors for a successful shipping.

Vermeer said their dairy products can enter the Chinese market in 27 days by rail, of which 20 days are needed for the journey and 7 days for custom clearance. This timeframe meets the company's requirements.

FrieslandCampina is the biggest dairy cooperation in the Netherlands and China is one of their key markets since their entrance in 1994.

The company's 2016 annual report showed it earned a revenue of about 560million euros in the Chinese market, with an increase of 27 percent year on year.

China now has express freight services to over 25 European cities. Since March 2011, more than 3,500 trips have been made, and the figure should rise to 5,000 by 2020.