World waking up to Asia's potential
01 July 2007 15:15
John Hey
‘Fast moving’ and ‘fast growing’ are terms often used to describe the Asian fresh produce market, and the news and developments that pack the pages of this bumper edition of Asiafruit Magazine bear testimony to such rapid evolution. With so much of the world’s population and economic growth concentrated in Asia, the region’s consumer market is set to become the largest in the world. China and India may be the drivers of this development, but other countries such as Vietnam (see p140-145) are also emerging fast.
Meanwhile, a wave of consolidation is sweeping the produce trade in Australia and New Zealand (see p62-83), which has recently witnessed a flurry of mergers and acquisitions as well as the rise of production initiatives with a focus on scale and efficiency. Such consolidation is being driven by the demands of the local retail chains. But it also reflects a push to compete more effectively in export markets amid difficult trading conditions characterised by strong currencies. At production level, Australasia has seen a growth in corporate farming, while major marketers are partnering with private equity firms to fund strategic growth.
China’s food safety record has hit the headlines globally over recent months, following a string of health scares (see p120-121). The most high-profile cases involved tainted food exports to the US, where media reaction has been somewhat sensational, but there is no doubt that food safety is a thorny issue for many Asian countries. Certainly, Asian consumers are becoming more concerned about food safety and responsive to branding. Our Organics Asia special (p117-128) shows that shoppers are warming to the concept that once left them cold. However, the organic sector still faces many hurdles in Asia, ranging from a lack of genuine supply to poor certification systems.These issues are linked to the broader problems of regulating production and achieving food safety assurances in Asia, which in turn stem from the fragmented supply base and a lack of supply chain management. However, the development of initiatives such as ThaiGAP (see p30-34) and Metro’s sourcing project in Vietnam (see p144-145) are helping to tackle such issues.
Indeed, growing interest among international companies in Asia’s fresh produce sector is set to inject impetus to the bid to address these problems. As this year’s wide-ranging Asiafruit Congress programme reveals, big-brand fruit marketers, multinational retailers, major market research companies and world-leading breeding and R&D organisations are all stepping up their focus on the region. The launch of ASIA FRUIT LOGISTICA, Asia’s first produce trade fair, this year provides the platform to bring the world trade together and promote further progress.
‘Fast moving’ and ‘fast growing’ are terms often used to describe the Asian fresh produce market, and the news and developments that pack the pages of this bumper edition of Asiafruit Magazine bear testimony to such rapid evolution. With so much of the world’s population and economic growth concentrated in Asia, the region’s consumer market is set to become the largest in the world. China and India may be the drivers of this development, but other countries such as Vietnam (see p140-145) are also emerging fast.
Meanwhile, a wave of consolidation is sweeping the produce trade in Australia and New Zealand (see p62-83), which has recently witnessed a flurry of mergers and acquisitions as well as the rise of production initiatives with a focus on scale and efficiency. Such consolidation is being driven by the demands of the local retail chains. But it also reflects a push to compete more effectively in export markets amid difficult trading conditions characterised by strong currencies. At production level, Australasia has seen a growth in corporate farming, while major marketers are partnering with private equity firms to fund strategic growth.
China’s food safety record has hit the headlines globally over recent months, following a string of health scares (see p120-121). The most high-profile cases involved tainted food exports to the US, where media reaction has been somewhat sensational, but there is no doubt that food safety is a thorny issue for many Asian countries. Certainly, Asian consumers are becoming more concerned about food safety and responsive to branding. Our Organics Asia special (p117-128) shows that shoppers are warming to the concept that once left them cold. However, the organic sector still faces many hurdles in Asia, ranging from a lack of genuine supply to poor certification systems.These issues are linked to the broader problems of regulating production and achieving food safety assurances in Asia, which in turn stem from the fragmented supply base and a lack of supply chain management. However, the development of initiatives such as ThaiGAP (see p30-34) and Metro’s sourcing project in Vietnam (see p144-145) are helping to tackle such issues.
Indeed, growing interest among international companies in Asia’s fresh produce sector is set to inject impetus to the bid to address these problems. As this year’s wide-ranging Asiafruit Congress programme reveals, big-brand fruit marketers, multinational retailers, major market research companies and world-leading breeding and R&D organisations are all stepping up their focus on the region. The launch of ASIA FRUIT LOGISTICA, Asia’s first produce trade fair, this year provides the platform to bring the world trade together and promote further progress.
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