Agricultural and Medicinal Logistics

Agricultural Logistics

Eggs are the main agricultural product that we work with. As an important source of protein for the diets of many Chinese, eggs must flow swiftly to satisfy their immense demand. Due to their fragile nature, eggs also require special treatment when being transported and stored.

For these reasons, eggs have become one of the logistics industry's "special products." Baolong Logistics controls 90%-95% of egg transportation in Northeast Liaoning, Jilin, Heilongjiang Provinces and the Pan Pearl River Delta, including 70% of the market demand of Hong Kong. Baolong Logistics can meet market demands by employing shipments of over ten railroad freight cars per day.

In the future, Baolong Logistics will focus on expanding the range of agricultural products, beyond eggs.



Medical Logistics

The branches of the company in Northeast Liaoning, Jilin, and Heilongjiang Provinces directly transport several kinds of valuable Chinese traditional herbal medicines (such as Changbai Mountain Ginseng) to the Pearl River Delta Region, including the areas of Guangzhou, Hong Kong, and Macao.

These shipments have become so popular for Baolong Logistics that it currently enjoys market shares of approximately 100%. Additionally, the profit margins for transporting these herbal medicines have remained stable.



Market Analysis

Agricultural Logistics Analyasis

Egg Market: As an important dish in the Chinese diet eggs are universally available throughout supermarkets, general food stores, convenience stores and street vendors. They are sold individually or in pre-packaged boxes.

After Chinese agricultural liberalization, farmers began to establish large-scale factory farming operations as well as small holdings that have been combined to boost egg production in China to over 40% of the world's total.

Northeast Liaoning, Jilin and Heilongjiang Provinces are China's egg production base, while Harbin City is its center. There are 800 tons of eggs being sold to Southern China every day, which accounts for over 34% of the total eggs shipped throughout China.

Much of the new focus in development lies in promoting existing industries, such as agricultural logistics. Improving existing systems is expected to become much more significant within the economy of the country over the coming years, and is likely to produce many new business opportunities for both foreign and domestic companies.


Medical Logistics Analysis

Ginseng mainly grows in Northeast Liaoning, Jilin, and Heilongjiang Provinces of China. The various planting areas, harvest yields and transportation costs all have direct effects on both the domestic and international ginseng market.

According to statistics in the Northeast provinces of China, during 2003-2004, the demand of ginseng was approximately 6,000 tons.

In 2005, the demand increased to 7,000 tons. In this same period the Pearl River Delta Region, including Hong Kong, Macao, and Taiwan consumed over 65% of the Chinese ginseng market. The relevant logistics industry is facing a giant opportunity as the Chinese herbal medicines market continues to prosper.