Twenty years of cold chain

In late April, Hu Shutong sat in the courtyard of his home.

At noon, the scenery outside is beautiful, with bright sunshine and a gentle breeze. Getting some fresh air and a good view makes it easier to let one's thoughts flow freely.

There wasn't a single book on the table, but rather a large number of papers scattered about, mostly notes Hu Shutong had jotted down as he investigated things around the year before and after. Some of them contained data, but more importantly, they were lists of keywords he had seen and the thoughts that had suddenly come to him at the time.

The five counties north of Qingyan City should be more accurately described as two counties in the northwest, two counties in the northeast, and one county directly north. Because the Beiyuan District of Qingyan City is a long and narrow area extending northward, the distance between this area west of Niujia Town and the county seat of the five counties is roughly the same, and it can almost be regarded as the center point of a five-pointed star.

Although logistics parks all have a series of functions such as warehousing, distribution, transportation, loading and unloading, and packaging, in actual operation, different focuses will categorize logistics parks. Taking warehousing as an example, there are many intricacies involved.

Some facilities provide storage for clients, essentially building large cold storage facilities to create a storage base for various perishable food companies. Others offer direct leasing, providing long-term rental services based on space calculations, which significantly reduces the park's intervention.

Furthermore, the focus on production areas or sales areas, and the target customers, will all change the function of logistics parks. This isn't a one-size-fits-all market; not every company is the same. Therefore, Hu Shutong's most important consideration is—

What path should we take?

Having been in this industry for so long, how could he not know how to make the most money? Simply put, as long as you don't do the first mile, you can still earn a considerable income. The reason is not complicated: going deep into the fields means a lot of labor, vehicle, and time costs. No matter how good the location of the land is, there are still too many roads to travel, vehicles to drive, and goods to gather.

The simplest operation involves sourcing vegetables from numerous vendors, transforming the industrial park into a massive distribution center, and then supplying them to supermarkets and farmers' markets in the city. This also allows for large-scale storage and connections with other provinces. Coupled with cold storage leasing, as business partnerships mature and land value increases, rents are bound to rise.

However, if Hu Shutong doesn't take the first step, his many years of industry research will lose much of its meaning.

He wants to focus on cold chain logistics, not just the chain itself.

It's not just a transportation hub or a simple cold storage facility, but a "city refrigerator" with full-process refrigeration and temperature control. This is something that has been lingering in his heart for many years, and it is also the ideal of countless people in the cold chain industry, just like the two simple propositions he heard when he first met his teacher in the academic hall at university—eating with peace of mind and reducing waste!

Many problems stem from the very first mile.

Why is it that "farmers have difficulty selling their produce and city dwellers have difficulty buying it"? Why do vegetables bought from the fields for 13 cents a pound become several times more expensive after traveling dozens of kilometers? And why do farmers use large quantities of carrots, which are worth a lot of money in city supermarkets, to feed pigs?

The significant waste generated in the fields and during transportation by trucks prevents all production capacity from reaching the market. The price difference between one ton and two tons of vegetables is substantial. Delayed transportation leads to large stockpiles of vegetables, resulting in excessively low prices and farmers' reluctance to sell. The lack of market regulation and off-season sales are all real problems affecting the food supply.

This also involves the quality of vegetables. Why do vegetables bought at the market look crystal clear, but wilt after only half a day or even two or three hours at home? It's because they are sprayed with water instead of being refrigerated during transportation to make them look fresher. However, once the water evaporates, it quickly takes away the vegetables' own moisture.

When Hu Shutong was a sophomore, every household in Mozi County grew celery. However, when harvest time approached, the price of celery plummeted. A large bundle as thick as a water bucket could only sell for a few cents. Many farmers preferred to throw it away rather than sell it. He remembers the county roads lined with piles of dumped celery and countless tears of hardship. But if there had been enough space for cold storage, celery could have been stored for 70 days. With sufficient transportation capacity, celery could have been sold to other provinces and even abroad.

Having seen third-party logistics in Europe, Hu Shutong had certainly considered it, but that couldn't solve the most practical problems; the time was not yet ripe for this model in China.

Venturing to the front lines requires courage, but in Hu Shutong's view, if they ultimately acquire this land, it will become part of the company's DNA. He is the son of a vegetable farmer, and the work of the fields has always been with him. How to deal with vegetable farmers and how to do things well are also advantages.

Taking this path will certainly present challenges such as a shortage of manpower and vehicles, and incur significant additional costs. However, every journey is taken one step at a time, and entrepreneurs must be grounded and pragmatic. Hu Shutong never envisioned achieving instant success, nor did he expect the park to sweep across five counties upon its opening. The idea of ​​attracting businesses from all directions and drawing in fish from all corners of the world was merely wishful thinking.

Once you enter the market, competition and cooperation are inevitable. Growing bigger and stronger requires a process and opportunities. Industry insiders predict that strong policy support is not far off, and relevant industry regulations are already being drafted. However, as things stand, the only tangible benefit Hu Shutong can obtain right now is an interest-free loan.

Many ideas emerged, and gradually, the framework, core, and even the two points mentioned by the teacher became clearer as the path became more defined. It was this series of convictions that led Hu Shutong to focus on a model he had not previously explored in detail: how to do a good job in the first mile and enable agricultural products to quickly reach the market. Unconsciously, his initial vision was also broadened.

Starting from the very first kilometer and ending at the very last, it requires not only connecting and integrating upstream and downstream processes but also maintaining complete control. That will be difficult, even potentially counterproductive, but he believes it's a significant step forward for the food supply chain, a visionary move from a professional. His focus has shifted entirely to this, just as his teacher said: single-mindedness brings peace of mind!

To build a systematic and genuine cold chain, and to apply what we have learned, seen, felt, and researched to this major issue concerning people's livelihood that is worth dedicating our lives to!

This is Hu Shutong's true nature—

The road to cold chain logistics!

……

I've loved cold chain logistics for twenty years.