In the morning, we woke up to a beautiful view of Shanghai just as the vibrant sun was rising. After several days of heavy travel, we were finally able to relax and enjoy a hearty breakfast at the esteemed four-star Jiulong Hotel. We arrived at Husi Food Company Ltd. at 9:30 a.m. sharp. Husi Foods is the Chinese division of Otto and Sons International Foods (OSI), a firm that previously visited us at U of I. The general manager of Husi China, Dennis Zhang, Ph.D., welcomed us at the the Husi plant in Shanghai and provided us with water and fresh fruit including the delicious  loquat.

To begin, Dr. Zhang gave a brief overview of Husi and highlighted the main challenges Husi faces. The firm focuses on protein and produce products for the fast food industry. The first challenge concerns the underdeveloped Chinese agriculture sector. Therefore, Husi must find trustworthy suppliers that follow food safety and labor laws. Also, customer demand is constantly changing. In the past, consumers demanded cheap and affordable products which is what we think American consumers are looking for currently.  Now, due to rising incomes and higher protein demand, consumers want healthiness and convenience. The last main challenge deals with competition. In China, there are certain food manufacturers with different growth strategies. The main difference is some firms lack a long-term strategy, while firms like Husi look to create a sustainable competitive advantage. This variation causes firms to have varying risk-taking and cost structures which ultimately effects Husi's operations.  This is not a problem that would be experienced in the United States.  However, Husi foods in China are held to the same standards found in The United States.

Next, Robin Jiang, who has been with Husi for 13 years, discussed the produce-side of the business and about technological processing. More specifically, he discussed eban lettuce production and raw material management. Recently, Husi is focusing on research and development for new types of varieties for lettuce production.

Mr. Jiang then took us to the Shanghai produce processing facility. Husi is very strict when it comes to the food safety and quality of its products. Therefore, we were fully protected with lab coats, rubber boots, hair nets, and face masks. Moreover, we were sanitized with specific hand wash and put in a chamber with air sanitization before finally walking through a tub to sanitize the boots. Once inside, we saw Husi's lettuce production line for McDonald's. It was an amazing experience because we were able to see the reason why this firm is so successful. Afterwards, we took a lunch break at a local restaurant where we ate a Shanghai favorite pork-dumpling, corn fritter, and shrimp.

Next up, we visited one of Husi's supplier's farms and able to see different types of varieties grown such as lettuce, watermelon, and asparagus. On the way to the farm, we passed houses and buildings that had not received the modern makeover that Shanghai had experienced in the past 20 years.  It was great being able to see more traditional Chinese architecture. The farm is approximately 400 mu (75 mu dedicated to lettuce) with an average yield of 40 tonnes per hectar.  The farm was very well established; it was hard to believe they had only been growing lettuce for a year.  This farm also is one of the suppliers for Shanghai's 2010 World Exposition. To meet the Expo's standards, the government regulates what types of chemicals are allowed and how frequently they can be used. The farm also uses a computer software to track when the plants were last treated. Afterwards, we visited Husi's community greenhouse where we saw a wide variety of seed such as petunias, corn, and asparagus. To complete the day, Husi generously hosted us for both lunch and Shanghai-style dinner which in included many dishes we had not had before.  The meals usually all blend together , but the delicious watermelon juice and a sweet rice-sesame ball soup made this dinner stand out.