The 2018 Global Leaders Programme (GLP) convened 24 participants from 13 companies across 12 countries in Hong Kong, Xianyang and Yongji to explore the challenges and opportunities facing China’s apple industry.
Agriculture is the backbone of many developing economies, yet smallholder farmers are often the most disadvantaged in the food value chain. With 230 million smallholder farming households and being the world’s largest producer and consumer of food, China has placed rural revitalisation and sustainable food production at the top of its national priorities.
Xianyang in Shaanxi Province produces one-ninth of China’s apples and one-sixth of the world’s apple juice concentrate, but declining AJC prices, ageing orchards, and market volatility have placed pressure on farmers to shift to more competitive, labour-intensive fresh market apples or abandon their orchards altogether.
In collaboration with Austria Juice, a leading global fruit juice concentrate producer, and Puhan Cooperative, one of China’s most established farming cooperatives, the GLP cohort developed a business plan aimed at securing a stable, sustainable supply of industrial apples while improving the livelihoods of smallholder farmers. The proposed model recommends a 20-year partnership between Austria Juice and Puhan Cooperative.
Puhan’s established track record in ecological farming, crop diversification, and community services makes it an ideal partner to pilot a large-scale, sustainable apple supply chain.
- Phase One
13,000 mu of land would be reserved for industrial apple production, applying environmentally friendly farming practices that reduce chemical inputs, plastic waste and soil degradation. Austria Juice would purchase apples at a premium price to incentivise farmers and contribute to a microfinancing fund to support orchard development. - Phase Two
Creating a new joint-venture company, Sustainapples, to replicate the cooperative model in Xianyang and build local processing facilities that reduce transport, create jobs, and maintain quality standards.
Beyond commercial gains, the model is designed to address wider social needs: providing education and elderly care, building training and traceability systems, and drawing young people back to rural communities. It aligns with China’s rural revitalisation policy and contributes to multiple UN Sustainable Development Goals including reducing poverty, protecting the environment, and promoting inclusive economic growth.
By integrating smallholder farmers into the modern value chain and promoting environmentally responsible production, the plan seeks to strengthen the apple industry’s resilience while ensuring a steady supply of quality apples for Austria Juice. This project offers a blueprint for how public–private partnerships can create shared value in the global food system, benefiting both companies and farming communities.