ID :
400825
Fri, 03/18/2016 - 08:37
Auther :

Lucrative Scandinavian Market For Malaysian Fruits

By Sakina Mohamed MALMO (Sweden), March 18 (Bernama) -- When Anders Loefgren read a news article of an upcoming Malaysian fruit promotion at his local supermarket, he counted the days to the sale. "I had told all my friends about it and asked them to come down and try the durian. I love durian," the 75-year-old Swede declared. Regarded by many people in southeast Asia as the "king of fruits", the durian is distinctive for its large size, strong odour, and formidable thorn-covered husk. He had previously lived in Singapore for three years and developed an affinity towards tropical fruits. The Malaysian Ministry of Agriculture and Agro-based Industry recently held an in-store fruit promotion for the second year at the ICA Kvantum Emporia, the largest shopping centre in Scandinavia. The ministry has established last year that there was an immense market potential for Malaysian agrofoods in Scandinavia. This year's response was overwhelming. Some fruits, such as the dragonfruit, sold out on the first day. Mangos, papayas, jackfruit and mangosteen were especially a hit with the Swedes and sold out fast. Many of them cited the taste as a level above similar offerings by other countries. The humble mangosteen was sold at the promotional price of SEK20 (around US$2.46) each, while papayas and mangoes sold for SEK30 (US$3.69) each. This year's campaign also saw the promotion of frozen durian, the Agromas Seri Kaya and Agromas White Coffee. According to Mohammad Wafiuddin Esa, the Second Secretary of Agriculture at the Malaysian Agriculture Representative Office in The Hague, nearly US$2,960 (RM12,000) in sales was recorded within the promotion, which took place on 4 and 5 March. The ICA Kvantum in 2015 had purchased Malaysian fruits worth some SEK1.51 million (around US$188,804). A CUT ABOVE Despite being a newcomer to the Scandinavian fresh produce market, Malaysia's offerings are still a level above the rest. However, supply has been limited due to many factors such as the seasonality of certain fruits and limited suitable land for growing fruit. Fruits like mangosteen are not only seasonal but demanding in growing conditions. "We have seen from this promotion that the demand is solid. However, we now have to ensure that our harvest increases to meet the demand, as a shortage can cause a dent in our market," Mohammad Wafiuddin told Bernama when met during the promotion. To address such challenges, the ministry is taking steps to maximise the usage of abandoned lands, increase production at the permanent food production parks and reduce post-harvest losses. "The ministry will also continue to offer technical advice for our growers that could guide them towards obtaining phytosanitary and global good agriculture practice (Global GAP) certifications, among others. These certifications are essential to market our agricultural produce in supermarkets overseas," he added. MARKET ACCESS The promotion is a joint effort among the Malaysian Agriculture Representive Office in The Hague in Netherlands, ICA Group AB (ICA AB), Malaysian exporter DRS Trading Sdn Bhd and importer EMA'S International AS. ICA AB is a Swedish retailing corporate group with its origin going back to 1938. Most of its operations are based in Scandinavia, and the company is the largest retail company in the Nordic region. Gaining access into ICA has been a golden ticket into the Scandinavian market. To date, ICA AB controls 36 percent of the retail market and owns 1,314 supermarket chains, with an estimated sales of SEK76 billion (about US$9.36 billion) in 2015. Mohammad Wafiuddin said that ICA was so pleased with the success of the recent promotion that it extended the same opportunity in 10 of its stores across Sweden. "However, we have yet to decide whether to accept the opportunity as we have already planned several promotions this year in other Scandinavian and Eastern European countries to tap into the market potential there," he said. QUALITY OVER QUANTITY In terms of fresh produce export quantity, Malaysia is not looking to rival established exporting countries like Thailand and Vietnam. However, the unique selling point of Malaysian produce is its quality. "I have tried the mangoes from other countries. Its taste just cannot compare to the ones from Malaysia," said Aana Thuvesholmen when met at the fruit promotion in ICA Kvantum. Many Swedes echo her sentiment, thus do not mind paying a premium price for Malaysian produce. For those who do mind, ICA Kvantum Emporia CEO Peter Berlin believed that they just needed to be persuaded through further promotions. Premium produce in limited quantities would naturally demand higher prices. Despite that, Mohammad Wafiuddin said active effort was still needed on the part of Malaysian growers to increase production and export. "Our products are definitely exclusive, but now that we have established a market for our fresh produce, we need to secure it by ensuring a steady supply." -------------------------------------------------------------------- SIDEBAR The erratic conditions of today's global market make even the bigger players hesitant towards new investments. Such risks are seen as magnified by the local agrofood industry, which are run mostly by small to medium enterprises. Many are cautious in making the necessary investments to expand their operations to meet demands, even though the government has availed to them the golden opportunity to move into the big leagues by securing a lucrative market overseas. It is hoped that with the numerous government effort and support, more growers will be encouraged to take the leap. The market potential cannot be ignored. The distribution centre for Malaysian produce in the Netherlands has market access to 190 million consumers. "As the population of the European Union is some 508 million, that is already a large portion covered. We should use this entryway to further expand our fresh produce market," said Mohammad Wafiuddin. --BERNAMA

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