|
|
Rural Industries
|
|| Introduction || Project listing|| Project Summaries ||
Agribusiness covers many activities including the supply of materials and services to farm business, the farm business itself and also the transportation, transformation, packaging and marketing of products once they leave the farmgate.
In the past, RIRDC's strategy was to directly address the key 'off-farm' agribusiness issues in the program through four inter-related sub-programs.
Research Highlights for 1996-97
· A series of reports highlighting both national and regional aspects
of agribusiness in Indonesia and how Australian firms can best take advantage
of changing conditions to improve trade performance.
· A report that surveyed most small to medium rural based firms
in Victoria and New South Wales and determined what characteristics were
common to firms that were successful exporters.
· Application of heat pump drying technology to new key product
sectors of Australian rural industries.
· A report that highlighted opportunities for Australian firms in
Asian food service markets.
AN ANALYSIS OF THE JAPANESE MANGO MARKETING CHAIN TO IDENTIFY OPPORTUNITIES FOR QUEENSLAND MANGO EXPORTS
Objective
· To identify market opportunities of Queensland mangoes in Japan through detailed consumer research and an analysis of the marketing chain from the point of entry into Japan to the end consumer.
Background
Although Japan imports limited quantities of mangoes from countries such as the Philippines and Mexico, mangoes are still a relatively unknown fruit in Japan. Until recently Japanese quarantine barriers have restricted imports of Australian mangoes. With mango production in Australia increasing rapidly the industry is anticipating that new markets such as Japan will provide an important export market; although the recent papaya fruit fly outbreak has impeded exports to Japan.
The Queensland Department of Primary Industries is currently working in conjunction with the Australian Quarantine and Inspection Service and the Japanese Ministry of Agriculture Forestry and Fisheries to develop methods to allow exports of fresh mangoes to the Japanese market to recommence.
Research
This research focused on two areas:
· Market opportunities for Australian mangoes in Japan - focus groups
were carried out in Tokyo to examine consumer attitudes to fruit and mangoes
and to identify market opportunities for Australian mangoes in Japan.
· Distribution channels for imported mangoes - the distribution
system for fresh fruit was examined and the most appropriate distribution
systems for Australian mangoes was identified.
Outcomes
The general characteristics that Japanese consumers like in all fruit were identified as good nutritional value, sweetness, good presentation, and ease of consumption. The research suggested that Japanese consumers are generally unfamiliar with the characteristics of mangoes. Only about 54% of respondents had tasted fresh mangoes prior to the interviews and many had never heard of mangoes.
The research also found that Japan is currently undergoing structural changes in its distribution system due to various factors. For the distribution of fresh mangoes the most suitable Japanese retailers include supermarkets, convenience stores, specialty stores, department stores, and eating out places.
Implications
The research pointed to consumer unfamiliarity as a obstacle to exporting Australian mangoes to Japan. As many consumers do not know of the fruit, strong sales promotions will be required. The research identified trading companies, importers and retailers as possible first points of entry to Japan for Australian fresh mangoes.
RIRDC Project No: DAQ-178A
RESEARCHER: Yukiko Miyauchi
ORGANISATION: Agribusiness Marketing Services
Queensland Department of Primary Industries, GPO Box 46,
BRISBANE QLD 4001
PHONE: 07 3239 3251 FAX: 07 3239 0429
Objective
· To identify opportunities for Australia's second tier food and beverage processors to supply the food service markets of Hong Kong, Indonesia, Malaysia and Singapore.
Second tier processors are defined as those have limited export activity but a willingness to develop export capability and commitment, limited representation in Asian markets, good products which are well accepted on the domestic market and/or customer focused, and a willingness to change products to meet customers' needs.
Background
The Asian food service market (fast food and restaurants, travel and leisure, institutional and catering) is a very large consumer of food products. Within Asia, markets are large and growing rapidly and consumer tastes are shifting significantly, presenting opportunities for Australian suppliers of a range of fresh and processed foods.
Research
The research concentrated on four Asian markets, namely Hong Kong, Indonesia, Malaysia and Singapore. More than 90 interviews were conducted with key food and food service executives in the four markets. Areas of investigation included: trends influencing food service, fast food segments and their growth, opportunities for Australian suppliers, tariffs and non tariff barriers, and critical success factors for export.
Outcomes
A range of opportunities were identified for Australian suppliers in a range of categories (meat, horticulture, seafood, dairy, wine and beverages, cereals, oils, nuts, processed foods). These were categorised as either high opportunities (ie longer term opportunities well suited to Australian suppliers). The results of the study were presented at Food Service Forum ® in February which was attended by a large number of food manufacturers.
As part of the project, more than 250 organisations were contacted and advised of relevant opportunities. There was very good response with more than 50 organisations requesting information. Their approaches are being coordinated through the relevant Austrade posts. These organisations will be contacted in July to ascertain if any orders have resulted.
Implications
A number of opportunities were identified for Australian suppliers. However, it should be noted that the food service markets of Hong Kong, Indonesia, Malaysia and Singapore are extremely competitive. This project provides potential suppliers with a good understanding of opportunities, key players, market characteristics and trends which are occurring which could have strategic implications for trade and the factors which will be critical to their success in each market. Thus, the report provides a basis for the development of individual organisations' strategic export plans.
RIRDC Project No: MSG-1A
RESEARCHER: Rosemary Richards
ORGANISATION: Meyers Strategy Group, 5/100 Penshurst Street/PO Box 173
WILLOUGHBY NSW 2068
PHONE: 02 9958 0741 FAX: 02 9958 0914
THE EXPORT ORIENTATION OF FOOD AND BEVERAGE PROCESSING MANUFACTURERS IN REGIONAL NSW AND VICTORIA
Objectives
· To understand why some food and beverage processors have
sought out export markets for their products whilst others have not.
· To recommend to both firm managers and export assistance agencies,
strategies which would appear to increase the probability that no-exporting
firms within this industry (with and export potential) become actively
involved in export marketing.
· To evaluate management's perception of the usefulness of a number
of export assistance agencies and schemes.
Background
It is estimated that almost two-thirds of all food and beverage processors producing exportable products are not currently exporting. All firms in this study are involved in a basically similar industrial function (albeit in different food sectors), are located in a similar geographical, political, economic and cultural environment, but yet which have shown vastly different responses to the export challenge.
The international literature on export behaviour suggests that managerial characteristics, managerial attitudes to exporting and a number of firm-specific characteristics differentiate the way that firms evaluate and respond to the opportunities and threats posed by selling abroad.
Research
From a large questionnaire survey of almost 700 regionally located food and beverage processors in regional NSW and Victoria (yielding 280 responses), the researchers were able to collect data which allowed for the construction of a number of factors (sets of related variables) and other explanatory variables associated with managerial characteristics, attitudes, firm-specific characteristics and known export constraints.
These were used in the formulation and estimation of two particular models based on logistic regression procedures. Outcomes indicated the probability of a firm being an "active exporter" (or a non-exporter) based on these variables. Follow up interviews were also conducted.
Outcomes
The best model was able to predict with an accuracy exceeding 84% that a firm would be an active exporter on the basis of only five major explanatory variables. If management was attitudinally committed to export, was prepared to devote sufficient resources to it, acknowledged the importance of price in relation to their product's market competitiveness, had or was able to access particular export specific skills and had a tertiary education, there was a high probability that the firm would be an active exporter. This was despite firm size and a number of other constraints and attitudes often posed as seriously inhibiting export activity. An instrument was developed to assist agencies in assessing the export potential of the non-exporting firms they sought to help.
Implications
Firm proprietors and others charged with promoting our processed food exports must work towards creating a culture in which management becomes "export minded" and appreciates the need: for thorough export market investigation and planning, for making (frequent) overseas trips, for possible product and promotional adaptation, for creating an adequate production capacity befitting long term export market commitment, and for learning and upgrading export specific marketing skills.
Enhancing all opportunities for non-exporters to network with new and experienced exporters is one possible strategy. Industry (and sector specific) associations, perhaps in conjunction with government agencies, should play an even greater role in providing industry and sector-specific export marketing intelligence and (continue to) encourage export education programs at the post secondary level.
RIRDC Project No: UCS-5A
RESEARCHER: Dr Norman Philp ORGANISATION: Charles Sturt University ALBURY NSW 2640 PHONE: 060 418 825 FAX: 060 418 878
EXPLOITING THE OPPORTUNITIES IN FOOD RETAILING IN EAST ASIA
Objective
· To provide practical information on the structure of and the changes taking place in food retailing in Indonesia, Malaysia, Singapore, Taiwan and Thailand in order to help the Australian agribusiness community to better identify and develop market opportunities for their products.
Background
Numerous market research reports have been prepared which discuss in general terms the character of retail and consumer markets in Asia. However, such reports are of little help in supporting the agribusiness community to precisely identify key market opportunities and the practical issues in exploiting those opportunities. This research was designed to fill this information need.
Research
The research was conducted principally through field visits to the countries under study and an extensive series of face-to-face interviews with senior management from the major retail companies in each country. Over 120 interviews were conducted with food retailers as well as distribution companies, manufacturing companies, property developers and other interested parties. Secondary sources were also extensively reviewed. A further element of the study was an overview of grocery retailing trends in Europe as a means to better understand possible future change drivers in Asia. The study was conducted between October 1994 and April 1995.
Outcomes
Each country studied demonstrates important individual characteristics in the structure of retail and distribution channels, the sophistication of the major food retailers. and the dynamics of their market development. Furthermore, important differences were also found between product channels within the same country. There were also a number of common development themes identified throughout the countries studied. In particular, many supply chains are presently 'pushed' by manufacturers and distributors but will come increasingly to be 'pulled' by major retailers.
Implications
Clear opportunities were identified and noted for the Australian agribusiness industry in the countries studied. However, carefully targeted and focused strategies need to be employed to maximise the opportunities in the region. Ensuring effective distribution will be a key determinant of success. Where a distribution strategy emphasises a focus on modern distribution channels, understanding specific organisational characteristics will be crucial to success. Further research to establish more clearly the dynamics of market change in these and other countries would be highly valuable.
RIRDC Project No: ACR-1A
RESEARCHER: Dr Alan Treadgold
ORGANISATION: Australian Centre for Retail Studies, PO Box 197 CAULFIELD
EAST VIC 3145
PHONE: 03 9903 2864 FAX: 03 9903 2099
AGRIBUSINESS OPPORTUNITIES IN SUMATRA AND EAST JAVA
Objectives
· To identify whether the development of food retailing and
income levels justify marketing Australian foodstuffs in Sumatra and East
Java.
· To identify production and processing opportunities in Sumatra
and East Java that could provide commercial opportunities for Australian
companies.
Background
Indonesia is a major potential market for Australian foodstuffs. The market is very large, but also very diverse. Nationally-aggregated information is of little real value in assisting Australian suppliers to assess opportunities in different parts of Indonesia.
The food industry is modernising, although the traditional smallholder still dominates production. There are opportunities for Australian companies to provide technical and management expertise on a commercial basis and to supply the domestic market from an Indonesian production base.
Sumatra was studied because its cities are adopting Jakarta-style consumer patterns, it has plentiful land available for food production, it will increasingly supply Java as land in Java becomes more expensive, and it is close to export markets in Southeast Asia. Sumatra is thus interesting both as a market for Australian foodstuffs, and as a production base to supply the domestic market. East Java was added to the study at the request of RIRDC.
Research
Research included extensive surveying of supermarkets and interviews with their managers, as well as with Indonesian distributors, retailers and producers associations and Indonesian and foreign companies. Desk-top research covered production, household income/expenditure, changes in the regulatory framework for retailing and distribution , the socio-political context of agriculture in Indonesia, and the activities of companies.
Outcomes
It was found that because distributors are in Jakarta or Singapore, direct marketing to Sumatra cities would not be worthwhile, although good promotion of new "western" products in Sumatra supermarkets could pay off. East Java, however, is worth direct marketing to, because there are Surabaya-based importers and because agents there (rather than Jakarta) supply small but wealthy niche markets in Eastern Indonesia.
Implications
Investment rather than exports alone, will be the way for expansion of Australian involvement in the quality food boom that is spreading outwards from Jakarta. There are several local companies (both retailing and production/processing) which want more technical and managerial expertise and which could provide opportunities for Australian companies.
This research will give companies an appreciation of the large differences in markets in Indonesia and will save them time and costs in exploring the market outside Jakarta.
RIRDC Project No: UMU-16A
RESEARCHER: Professor Richard Robison
ORGANISATION: Murdoch University MURDOCH WA 6150
PHONE: 08 9360 2846 FAX: 08 9310 4944
APPLYING HEAT PUMP DRYING TECHNOLOGY TO AUSTRALIAN RURAL INDUSTRIES
Objectives
· To build on the success of the heat pump drying technology
and apply it to new key product sectors of Australian rural industries.
· To increase promotion of the technology to the Australian industry
and to develop a handbook to assist Australian companies who want to enter
the drying industry.
Background
The use of heat pump technology in drying is now well established. Heat pump drying enables both the dehumidification of the drying air by removing water vapour and the recovery of latent heat from the evaporated water. As a result, the technology offers higher energy efficiency, improved and consistent quality product in relation to colour and flavour retention and precise control of drying irrespective of the ambient conditions.
Research
The research program was designed to generate basic drying information on a range of products (apple, banana, pawpaw, carrots, mushroom, tomatoes and basil). This information is fundamental in planning for the establishment of heat pump drying facilities. An open research policy adopted in this project encouraged potential users of heat pump technology to trial their products in the pilot scale dryers, directly assisting the industry development objective of the project.
Research also aimed at evaluating the potential of a chemical dehumidification (lithium chloride) unit for drying basil as an alternative, particularly for very low dry temperatures - below 35dg. C. Some research has also been carried out to develop a more energy efficient hybrid system - fluidised bed heat pump dryer.
Outcomes
In addition to detailed product drying information developed for the products listed previously, preliminary drying tests were carried out for a range of companies. Products dried included chestnuts, tomatoes, pineapple, native flowers, mushrooms and venison pizzles. A number of new heat pump dried products are likely to appear in the market in near future.
Successful public seminars held in Melbourne, Brisbane and Townsville attracted over 90 participants. The seminar papers and product information (Data Sheets) generated are available to the industry as a "Handbook".
Implications
This project has provided additional basic drying information on a wide range of products, which could be used to assist the establishment of new drying industries and to improve the performance of existing ones.
RIRDC Project No: DAQ-175A
RESEARCHER: Dr Bandu Wijesinghe
ORGANISATION: Queensland Department of Primary Industries, 19 Herculaes
Street, HAMILTON QLD 4007
PHONE: 07 3406 8573 FAX: 07 3406 8662
IDENTIFYING KEY AGRICULTURAL SECTORS FOR APEC NEGOTIATIONS
Objective
· To identify the agricultural commodities and processed food products that could be nominated by Australia for early trade liberalisation under APEC.
Background
To promote free trade, APEC trade ministers are looking for specific industries that could be subject to trade liberalisation earlier than the 2010-2020 deadline. Country nominations will be considered and a consensus by a 'critical mass' of APEC members will determine the selections for early action. The agreements will be placed before the WTO and it is hoped they will become a catalyst for wider trade liberalisation.
Research
APEC trade for six key agricultural product groups were reviewed. The analysis examined the relative importance of a range of products from a trading and domestic market perspective. The prospects for various products achieving a consensus for early action was also considered.
Outcomes
The final report incorporated summaries of the trade reviews for each of the six key product groups. These reviews highlighted the products that offered the biggest potential benefits from liberalisation and the factors likely to affect their nomination for early action.
For most agricultural products it will be difficult to achieve early trade liberalisation. However, some products could be successfully nominated if Australia can build coalitions of support. Nominating areas for study on the effects of APEC trade liberalisation and providing information to key countries on how they will be affected by trade liberalisation will help to build these coalitions.
Implications
The APEC 'early action' on trade liberalisation offers a major opportunity for Australia to build the momentum for further agricultural trade reform in the WTO negotiations in 1999. Building a stronger support base within APEC will be helped by: · investigating potential nominations for early action; · looking for opportunities to tradeoff country support for product nominations; and · APEC trade liberalisation studies for specific industries.
RIRDC Project No: CIE-3A
RESEARCHER: Dr Andrew Stoeckel
ORGANISATION: Centre for International Economics,
88 Northbourne Avenue, CANBERRA ACT 2601
PHONE: 02 6248 6699 FAX: 02 6247 7484
Last updated: 25 October1997
Copyright © RIRDC
http://www.rirdc.gov.au/pub/97comp/agrib.html