Asia's trade convention offers food for thought
01 September 2008 12:06
John Hey
Walking the floor of this year’s ASIA FRUIT LOGISTICA trade fair in Hong Kong, it was impressive to see so many different countries represented among the exhibitors and visitors. And the substantial growth recorded by this year’s event certainly reflects the global interest in Asia’s fruit and vegetable market.
Such massive appeal is no doubt fuelled by Asia’s huge population and by its examples of spectacular economic growth. Some of the region’s rising stars, like India and Vietnam, came under the spotlight in the conference hall at the Asiafruit Congress, but there were words of caution from certain speakers for those eyeing the Asian markets. Des O’Rourke of Belrose Inc warned against overenthusiasm, stressing that Asia is a complex and multi-faceted market that cannot be approached with simple marketing models. He also cast an air of economic realism on proceedings, pointing out that only one country in Asia has a big population AND large Western income levels – and that is Japan.
The results of a recent survey of Asian buyers conducted by Asiafruit Magazine, which were presented at the Asiafruit Congress, revealed that the region’s markets are “under-serviced“ in terms of imported fruits, with global suppliers lacking local understanding and still tending to prioritise other destinations. An expert panel of global suppliers to Asia also testified to the difficulties of servicing the diverse demands of these markets.
The message was clear; the Asian markets require long-term commitment, but the final day of the Asiafruit Congress, which highlighted China’s rise as a consumer market, provided an incentive to “hang in there”. With pressures building on land and resources and some 200m people set to relocate from rural to urban areas over the next 10-15 years, China will struggle to feed itself, delegates heard. As John Chapple of Sino Analytica noted, China is already a net importer of agricultural products in cash terms – and he tipped it to become a domestic market supplier and an importer when it comes to fresh produce too, thus challenging traditional threat perceptions over China’s role as an exporter. The multiple Chinese companies promoting their products at ASIA FRUIT LOGISTICA seemed to counter his assertion. Indeed, other conference speakers noted that “a battle for acres” in China’s agriculture sector might prompt a shift in production towards higher value crops, such as fruit and vegetables. And with its huge diversity of native fruit species, China has great potential to offer new and unique products to the world market.
But it’s an interesting notion, and key retail executives speaking at the Asiafruit Congress revealed how a trend among several countries to consume more food than they can produce is encouraging big multinational retailers to pursue global sourcing strategies in order to secure consistent, safe and high-quality supplies. This move is sure to have a major impact on fresh produce suppliers in Asia and beyond over the coming years.
Walking the floor of this year’s ASIA FRUIT LOGISTICA trade fair in Hong Kong, it was impressive to see so many different countries represented among the exhibitors and visitors. And the substantial growth recorded by this year’s event certainly reflects the global interest in Asia’s fruit and vegetable market.
Such massive appeal is no doubt fuelled by Asia’s huge population and by its examples of spectacular economic growth. Some of the region’s rising stars, like India and Vietnam, came under the spotlight in the conference hall at the Asiafruit Congress, but there were words of caution from certain speakers for those eyeing the Asian markets. Des O’Rourke of Belrose Inc warned against overenthusiasm, stressing that Asia is a complex and multi-faceted market that cannot be approached with simple marketing models. He also cast an air of economic realism on proceedings, pointing out that only one country in Asia has a big population AND large Western income levels – and that is Japan.
The results of a recent survey of Asian buyers conducted by Asiafruit Magazine, which were presented at the Asiafruit Congress, revealed that the region’s markets are “under-serviced“ in terms of imported fruits, with global suppliers lacking local understanding and still tending to prioritise other destinations. An expert panel of global suppliers to Asia also testified to the difficulties of servicing the diverse demands of these markets.
The message was clear; the Asian markets require long-term commitment, but the final day of the Asiafruit Congress, which highlighted China’s rise as a consumer market, provided an incentive to “hang in there”. With pressures building on land and resources and some 200m people set to relocate from rural to urban areas over the next 10-15 years, China will struggle to feed itself, delegates heard. As John Chapple of Sino Analytica noted, China is already a net importer of agricultural products in cash terms – and he tipped it to become a domestic market supplier and an importer when it comes to fresh produce too, thus challenging traditional threat perceptions over China’s role as an exporter. The multiple Chinese companies promoting their products at ASIA FRUIT LOGISTICA seemed to counter his assertion. Indeed, other conference speakers noted that “a battle for acres” in China’s agriculture sector might prompt a shift in production towards higher value crops, such as fruit and vegetables. And with its huge diversity of native fruit species, China has great potential to offer new and unique products to the world market.
But it’s an interesting notion, and key retail executives speaking at the Asiafruit Congress revealed how a trend among several countries to consume more food than they can produce is encouraging big multinational retailers to pursue global sourcing strategies in order to secure consistent, safe and high-quality supplies. This move is sure to have a major impact on fresh produce suppliers in Asia and beyond over the coming years.
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