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Rural Industries
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|| Introduction || Project listing|| Project Summaries ||
The market for Australian grown Asian vegetables in many Asian countries is large. For instance, Japan imports $2.3 billion of fresh, frozen, preserved and dehydrated vegetables each year.
There are off-season windows of opportunity in Australia for fresh products when prices are high and supply from competing Asian sources is low. Foods other than vegetables, particularly processed foods, are popular and opportunities include sauces, ready made meals, and possibly snacks. Domestically, the predicted value of potential import replacement Asian foods is $1.5 billion by 2000.
Research Highlights for 1996-97
STRATEGIC ENTRY INTO ASIA - A REVIEW OF ASIAN VEGETABLE MARKETS
Objective
· To review existing production, government standards and marketing literature relevant to developing an Australian Asian vegetable export industry.
Background
Since 1993, the Rural Industries Research and Development Corporation has sponsored a number of workshops and seminars dealing with Asian vegetables. One outcome of these was the target of developing an Australian grown Asian vegetable industry worth $100 million in the near future.
At the same time, the workshops and seminars recognised that the bulk of research, both the physical as well as the economics and marketing, available in Australia was heavily biased towards traditional "western" vegetables. As a first step towards assisting the development of an Australian grown Asian vegetable industry, it was determined that a literature review be conducted of the existing knowledge.
Research
The review identified production, government standards and marketing as the three broad areas where there were significant knowledge gaps. As many of the publications relating to the physical research have not been catalogued, computer-generated literature research was of limited use.
Outcomes
The number of Asian vegetables which have been subjected to detailed Australian physical research is comparative small. Brassicas, especially Chinese cabbage, have been subjected to more research that any other Asian vegetable. Even with this comparatively well-reported research, potential producer/exporters in most of Australia are not able to draw upon detailed agronomic and like production-oriented advice. The situation for most other Asian vegetables is quite poor.
Government standards relating to quarantine information and assistance to potential exporters, are also poorly promulgated. The main weakness with quarantine standards is that there is no obligation for importing countries to notify Australian authorities of their latest standards. This puts the emphasis for discovery back to producers who are usually poorly equipped to do so. Whilst there are an encouraging number of state and federal government schemes designed to assist potential exporters to get into exporting, knowledge of all but a few is very poor. Moreover, most schemes are ephemeral, making keeping abreast of them very demanding.
A great deal has been written about the Asian market. However, most of this has been too macro-oriented to be of assistance to a potential exporter of an Asian vegetable(s).
RIRDC Project No: AMR-2A
RESEARCHER: Mr Grant Vinning
ORGANISATION: Asian Markets Research 157 Horizon Drive WESTLAKE QLD 4074
PHONE: 07 3376 2244 FAX: 07 3376 7264
AUSTRALIAN MARKET DEMAND FOR AUSTRALIAN ASIAN VEGETABLES
Objective
· To determine baseline market data on the demand for Asian vegetables in Australia.
Background
Recent studies supported by RIRDC's Asian Food research and development program have identified that the Australian market is a major consumer of Asian vegetables.
RIRDC's recent research on the Australian Asian vegetables industry has estimated that in 1995 some 80% of the industry's value of production is consumed locally in Australia. This consumption is occurring through not only the traditional outlets (such as Asian restaurants), but it is also increasing in popularity in major Australian supermarkets.
A greater understanding is required of the Asian vegetables, quantity and trends for distribution, and consumption in Australia.
Research
The research involved an extensive program of over 180 interviews with Asian grocery store retailers, Asian restaurants and major Australian supermarket groups in Sydney and Melbourne.
Outcomes
The total wholesale annual demand for Asian vegetables purchases in Sydney and Melbourne is estimated to be $44 million, and the total Australian market is estimated to be $60 million.
Both the Sydney and Melbourne markets are estimating an annual growth rate of over 20%.
In Sydney and Melbourne, Asian restaurants, Asian grocery stores and supermarkets are the major outlets for Asian vegetables, with Asian restaurants accounting for some 50% of the trade. However, in terms of future growth demand for Asian vegetables, major Australian supermarkets expect the largest average increase in annual demand of some 38% or $9 million.
Implications
To foster the viability of the Asian vegetables industry in Australia there is a need for: · Market development with a focus upon consumer research, marketing and consumer education, and training of trade outlets. · Industry development with a focus upon an understanding of the Asian vegetables markets, the differing requirements of the trade outlets, improved industry communication, industry investment, research and professional training in the Asian vegetable industry.
RIRDC Project No: CON-2A
RESEARCHER: Barry W. Lee
ORGANISATION: Connectica International Level 3, 2 Help St CHATSWOOD NSW 2067
PHONE: 02 9415 4200 FAX: 02 9411 8188
EMAIL: blee@world.net
ASIAN FOOD PACKAGING INFORMATION DATABASE (AFPID)
Objective
· To provide Australian food interests with a comprehensive and accessible system of packaging information relating to differing Asian foods categories as required in East Asian markets. The project result would be in the format of a database accessible by computer.
Background
A priority areas identified in RIRDC's Asian Food Strategic Workshop in July 1993 was the lack of commercial marketing knowledge of Asian food packaging.
Research
The project involved the research, collation and documentation of information covering Asian food packaging in 14 east Asian nations. On site market research was undertaken in Brunei, Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Laos, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. A unique database system containing a large volume of industry specific information was developed, utilising Microsoft Access and Windows, to be made available on floppy disks.
Outcomes
The project resulted in the production of a 2 diskette database system listing the characteristics of some 2,600 Asian food items across 14 east Asian nations. The database, called AFP10- Asian Foods Packaging Information Database, was jointly funded by RIRDC/Sira International Corporation in April 1996. The cost is $150 for 2 disk set plus $10 p&h. To order call SIRA International.There is potential for an update or expansion of the database in the future dependent upon demand and cost recovery principles.
RIRDC Project No: SIR-2A
RESEARCHER: Kelvin Fahey ORGANISATION: SIRA International Corporation Pty Ltd GPO Box 2609 CANBERRA ACT 2601 PHONE: 02 6293 1800 FAX: 02 6293 1818
DEVELOPMENT OF AN AUSTRALIAN SEAWEED FOOD INDUSTRY
Objective
· To establish baseline market, production and research data for the development of an Australian seaweed food industry.
Background
As a result of Asian vegetables research conducted under RIRDC's Asian Foods program, seaweed has been identified as a potential and emerging food industry opportunity for Australia. With the support of the Fisheries Research and Development Corporation (FRDC), RIRDC commissioned this study to establish a more comprehensive understanding of the market and supply opportunities for the Australian seaweed industry.
Research
The study methodology included: · identification of key industry and research organisations; · a strategic analysis of the Australian seaweed industry; and · identification of key production and marketing factors influencing the industry.
Outcomes
The key findings from the study are: · The utilisation of seaweed throughout the world is wide and diverse, and accordingly the seaweed industry should not be viewed as one industry; rather it is a collection of heterogeneous industries. · Statistics on world seaweed production are not readily available, but it is conservatively estimated that the world seaweed industry is valued at some A$1.5 billion annually, and is equivalent to a world production of over 6 million tonnes of dry weight per annum. · Recent Australian statistics confirm that Australia is a net importer of seaweed products importing over $16 million of seaweed products in 1995-96, and exporting some $415,000 of seaweed products. · Very limited information exists on the sustainability of seaweeds as a resource. However, this should not preclude the industry from recognising the potential of seaweed as a resource, and the opportunity to diversify the Australian marine industry.
Implications
The commercial utilisation of Australia's seaweed resource needs to be compatible with the present management strategies of the Australian fisheries industry and the Commonwealth Government. Further objective research data is required on key resource and environmental aspects of seaweed utilisation such as sustainability and biodiversity.
The study details conclusions and recommendations for: · Industry communication and information. · Research management. · Market research feasibility studies. · Product development. · Trade development. · Research and development.
RIRDC Project No: CON-5A
RESEARCHERS: Barry W. Lee/Karnig Momdjian ORGANISATION: Connectica International Level 3, 2 Help St CHATSWOOD NSW 2067 PHONE: 02 9415 4200 FAX: 02 9411 8188
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, however, identified also a number of common development themes 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 modem 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
RESEARCHERS: Dr Alan Treadgold ORGANISATION: Australian Centre for Retail Studies PO Box 197 CAULFIELD EAST VIC 3145 PHONE: 03 9903 2864 FAX: 03 9903 2099
FOOD CULTURE AND PREFERENCES OF INDONESIAN FOOD MARKETS (FOR SMES)
Objective
· To prepare and assist small to medium sized enterprises (SMEs) to maximise opportunities for food exports to Indonesia.
Background
Australia's economic prosperity and well-being relies, in part, on the ability of its food industry to take advantage of opportunities in the rapidly growing Asian food markets to the north. Some 30% of companies who failed in export drives did so because of a lack of market research, failure to understand Asian culture and lack of knowledge of the market.
SMEs are highly susceptible to failure in export business, since their size provides minimal resources for research and for meeting the costs of mistakes in market penetration. In addition, there is a need for suppliers, growers, manufacturers and allied industries to be informed about the Asian food markets. The strength of the Indonesian economy and the growth in its middle class, is creating a growing demand for a wide range of food products.
The Indonesian market is important by virtue of its accessibility to Australian exporters and the demands it generates are moderate and therefore are more easily supplied by SMEs than are the larger, more difficult-to-penetrate markets of Northern Asia. However, the information on the market, culture and consumer trends that is critical for SMEs to succeed in Indonesia is not readily available.
Research
CSIRO's Sensory Research Centre surveyed SMEs (food) in Australia, to determine their information requirements about exporting food to Indonesia, then consulted market experts for their views on what SME exporters need to know. Bi-lingual staff were used to help gather and translate relevant information in Indonesia and to study A+ consumer attitudes through structured discussion sessions (focus groups) and by questionnaire.
The results provide a profile of Indonesian A+ consumers' shopping habits, favourite foods, preferences for convenience foods, taste for traditional and western flavours, important food attributes and attitudes to imports and western flavours. It shows Indonesian consumers will purchase products which many companies can produce with relative ease.
The data in the study should help food companies prepare their market entry or expansion strategies in this important Asian food market and emphasises the importance of understanding cross-cultural sensory perceptions and preferences when doing so. There is also an update on latest trends and statistics and information on regulations and the distribution system.
Outcomes
Data was collected and collated by the SRC and published as a softcover book "Exporting Food to Indonesia: A guide for Australian Small to Medium Enterprises". The book has been brought to the attention of food companies through a seminar (February 1997, Sydney), by advertisements in industry journals and newsletters, through interviews, by presentation of research at an international conference (International Symposium on Olfaction and Taste XII / Association for Chemoreception Sciences XIX) in San Diego and via the Internet.
Implications
The food and beverages industry is the largest sector of the manufacturing industry in Australia. There is a need for information on the food culture and eating habits of other potential food markets in South-East Asia, to improve our export performance, reduce the cost of market entry and stimulate rural-based manufacturing and production sectors.
RIRDC Project No: SRC-1A
RESEARCHERS: Ms Kerry Easton ORGANISATION: CSIRO Sensory Research Centre PO Box 52 NORTH RYDE NSW 2113 PHONE: 02 9887 8424 FAX: 02 9887 3107
Last updated: 22 October1997
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