The
              Report

No. 89: Australia well positioned to export pickled and dried Asian vegetables


The full report
This is a summary of a full report Pickled and dried Asian vegatables published by RIRDC (Pub. No. 00/45, DAN-124A) by Dr Q.V. Nguyen, The Horticultural Research and Advisory Station, NSW Agriculture. Ph: 02 4348 1900; Fax: 02 4348 1910; Email: vong.nguyen@agric.nsw.gov.au
The report is available in hardcopy (under wildflowers) or downloadable from this site.

A new Rural Industries Research and Development Corporation (RIRDC) report says Australia is well placed to tap into Japan’s $1.1billion processed Asian vegeta-ble import market.

Researcher Dr Q. V. Nguyen, of NSW Agriculture’s Horticultural Research and Advisory Station at Gosford, says Australia can produce high quality processed Asian vegetables, both pickled and dehydrated. His report provides a range of information to help growers, producers and exporters to take advantage of these new crops. There is technical advice on materials and meth-ods, results of product trials carried out at Gosford, and demonstration and marketing requirements for Asian markets – particu-larly Japan.

Of the 1.5 million tonnes of processed vegetables imported into the Japanese market in 1997, the market share of proc-essed Asian vegetables was 36 per cent. The main suppliers of processed Asian vegetables included China, Thailand and Vietnam.

To increase its export market share, the Australian horticultural industry needs to accept change to be more globally competi-tive. It also needs to focus on “low prices” to be attractive in overseas markets and on “sunrise” products such as pickled and dried Asian vegetables.

Exports of Australian vegetables and other products to Japan from 1988-1998 (Source: Vina Booklet 14, 1998)

The report also identifies markets for processed Asian vegetables domestically. In 1997/98, Australia exported $A40.5 million of processed vegetables but imported about $A131.8 million of these products, some of which were processed Asian vegetables.

The Study

The study analysed world production of processing vegetables, with the results showing they are mainly used for pickles in Asia. These Asian pickle industries and markets are closely examined.

The work investigates the history of pickles, identifying the Chinese pickle, Zha Cai, as one of the world’s oldest, dating back thousands of years. Pickles are now an increasingly impor-tant part of the Chinese diet.

Painting of pickle manufacturer in Owari (now Nagoya) Japan probably in Edo period (1615-1868)

Japanese pickle- (tsukemono) making involves various pickle methodologies, including nukazuke (pickling in rice-bran paste), shoyuzuke (in soy sauce), shiozuke (in salt), suzuke (in vinegar), kasuzuke (in sake-lees), misozuke (in soybean paste), and others.

The main import items for the manufacture of tsukemono are cucumbers, gherkins, ginger, Japanese apricot, scallions and eggplants. Trends on distribution of tsukemono to consum-ers and ways in which it is eaten are studied.

Major items of tsukemono material imported into Japan in 1997


Similar analysis is made of the South Korean pickle (kimchi) industry. Kimchi classifications are identified, along with raw materials used in its preparation and the processes involved. The Chinese and Vietnam processing vegetable export industries also are investigated.

Research indicated semi-processed cucumber and gherkins, ginger, Japanese apricot and eggplant are the most important commodities for Japanese import markets. But it shows too that prices have remained virtually unchanged since 1988, except for brackens and baby corn.

The work also suggests South Korea may soon need to import ingredients for manufacturing some of its kimchi, especially Chinese cabbages, daikon radish, hot chilli, cucumber and bunching onions.

Imports are likely in both fresh or semi-processed forms.

Against this background, pilot manufacturing trials of some major pickled and dried Asian vegetables were carried out at the Somersby research farm of the Gosford Horticultural Research and Advisory Station, the University of Newcastle’s Ourimbah campus, and a property at Narranderra in south western NSW.

These involved takuan (radish pickle), Chinese cabbage, hot chillis, umeboshi (Japanese Apricot pickles), and daikon radish. Ume fruits also were obtained from the Uniersity of Western Sydney’s Hawkesbury campus for additional pilot trials.

Products manufactured included takuan, kimchi, umeboshi, and umeshu (Japanese apricot wine).

Sample of new types of Chinese cabbage grown in the Gosford trials

The Results

The trials show it is possible to grow good quality takuan in Australia with a gross margin of $A1.94/kg or around $A1,060/tonne in wholesale markets.

Experiments involving the other vegetables also are positive as were trials in the manufacture of Korean and Japanese kimchi.

Recipes for the Korean kimchi were developed in cooperation with Korean women, who were members of the Keirokai Club in Sydney. Japanese kimchi trials involved a variation for Japanese taste.

The work shows that at present Australia cannot compete with South Korean kimchi either in quality or wholesale prices.

But as the price for kimchi is higher at retail level, Australian producers could achieve a profit margin of up to $A10.36/kg by selling directly to consumers through Japanese super-market chains.

Work with Japanese apricot pickles was suc-cessful and another research project is planned to expand on this.

The dried daikon trials show that currently Australia cannot compete with China in Japa-nese markets, but is capable of producing a higher quality product than China’s, with poten-tial for top end of the market sales in future.

Research also resulted in domestic markets being established for fresh, dried and pickled radish. Export markets also are being investi-gated.

Photograph shows soy pickled radish made from salted radish in the Australian processing 
pilot plant. At right is soy pickled radish commercially produced in Japan

Summary

Although $A12 billion of vegetables and prod-ucts are imported annually into North-East and South-East Asia, the Japanese market offers the best opportunities for Australian exporters. This is because of the large wholesale market for tsukemono. While there are many kinds of tsukemono, shoyuzuke and asazuke account for more than 50 per cent of the market share.

In 1997, Japan imported 227,992 tonnes of salted vegetables, 24,627 t of vegetables in vinegar and 49,801 t of dried vegetables, valued at approximately $A810 million. Semi-processed cucumber and gherkins, ginger, Japanese apricot (ume; Prunus mume), scallion and eggplant are the most important commodities in Japanese import markets.

A study of Shokuhin Ryutsu Kenkyu Kai, the Society for the Research of Food Distribution, has predicted that Japanese consumption of tsukemono will soon be around 1.28 million tonnes a year.

If this proves correct, Japan will need to import materials and/or semi-processed vegetables to make up 180-250,000 t of tsukemono. Develop-ing Japanese tsukemono sales relies on fresh-ness, lower salt and its reputation of being a healthy food.

South Korean kimchi market:

There are at least 187 types of kimchi in Korea. However, Baechu (cut Chinese cabbage), Kakdugi (diced white radish) and Dongchimi (whole white radish in water) are the most popular.

In 1996, South Korea’s consumption of kimchi was estimated at 1,500,000 t. Only 290,000 t or 19.4 per cent, was produced by commercial manufacturers.

The portion of commercial kimchi production has been increasing by 15-20 per cent a year. South Korea exported five per cent of its kimchi products in 1996.

Although self-sufficiency production of vegetables is high, South Korea still imports millions of dollars worth of vegetables. Of these, materials for kimchi such as hot chilli, garlic and onion are the main imports.

China – the major supplier of processed Asian vegetables

With improving trade relations with Japan, China has recently increased its vegetable product exports from $A600 million in 1988 to $A1,857 million in 1997 to occupy more than 39 per cent of the Japanese vegetable import market.

The Japanese import market for salted vegetables, vegetables in vinegar and dried vegetables was valued at approximately $A810 million in 1997. China supplied 84 per cent of the market for salted vegetables, 41.5 per cent for vegetables in vinegar and 79 per cent for dried vegetables.

China is the dominant supplier for the Japanese market of Asian vegetables such as lotus, scallion and eggplant.

It enjoys many export advantages over other countries in the Japanese market, because China’s pickles are similar to those of Japan and China has an available cheap labour market.

Vietnam – a rising exporter of processed vegetables for Japanese markets

In 1988, Vietnam exported to Japan only 828 t of processed vegetables. By 1996, exports had increased to 11,341 t – valued at approximately $A9.6 million.

Vietnam, like China, with knowledge of products, and low prices, has similar advantages in penetrating Japanese import markets. But processed vegetable exports from Vietnam are based on spot markets, not on long-term commitment, as Vietnamese authorities have not yet recognised that pickles are a potential export industry. Vietnam’s good processed vegetables export results are due mainly from the hard work of Japanese trade houses rather than supplier promotion.

Australian Processed Asian Vegetable Industry – the Challenge

In 1998, the Australian Asian vegetable indus-try was estimated at $A60 million. This repre-sented 1.3 per cent of the gross value of Australian horticulture, valued at $A4.7 billion.

While the total export of horticulture products was $A1.6 billion in 1997/98, Australia exported only $A40.5 million worth of vegetables for processing. This did not include any Asian vegetables. At the same time, Australia imported around $A131.8 million worth of processed vegetables, including some pickled and dried Asian processed vegetables.

Australia’s exports of major processed vegetables (ABS, 1999)

In recent years, the Australian processing industry has rapidly and significantly changed to fit into the competitive “global market”.

This has been helped by the wide range of climatic conditions enabling production of many types of “clean” and “green” crops, and by advances in processing technology, and ready availability of transport between Australia and Asia.

Most importantly, with almost 70 per cent of the industry owned and managed by foreign companies, the Australian processing vegetable industry has further export market potential in Asia, particularly Japan.

To achieve a greater market share, the Australian processing vegetable industry needs to accept changes to become more competitive on a global scale.

An emphasis should be on new products especially those involving value-adding. Australia needs to focus on higher product technology and lower costs policies.

Asian-born Australian manufacturers are also an advantage to Australia in developing a Asian vegetables processing industry.

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