Malaysia Should Tap Export Potential Of Processed Foods To US

By Manik Mehta NEW YORK, June 19 (Bernama) -- Despite being a late entrant to the processed food export sector and facing fierce competition from other suppliers in the region, Malaysia can establish a niche market for this segment by aggressively tapping the export potential to the United States (US). The US is the world’s biggest market for processed foods in value terms and among the most open to foreign foods. In this regard, while Malaysia has already established itself as a major supplier of edible oils, the real challenge lies in increasing the exports of processed foods, and where the US is concerned, has merely “scratched the surface”. The New York Fancy Food Show (NYFSS) from June 30 to July 2 offers an interesting platform for Malaysian processed food exporters to showcase their products. But the participation of local entrepreneurs has been rather sporadic at the event. According to Muhd Shahrulmiza Zakaria, the New York-based Malaysian External Trade Corporation (MATRADE) Trade Commissioner, there will be four Malaysian exhibitors at the upcoming NYFFS 2018. This is a miniscule number, compared to the huge contingents coming from other Asian countries, particularly India, China, Taiwan, Indonesia, South Korea and Thailand. Still, the participation by Malaysian exhibitors at the NYFFS is the right step towards promoting Malaysia’s image as a supplier of quality food products in the US market. “Malaysia’s food exports include processed foods such as condiments, instant spices, ready-to-eat meals, noodles, cookies and biscuits. “Curry laksa, or Malaysian noodles, as locals call it, is very popular. As an Asian fare, it is served mainly in Asian/Malaysian restaurants and Americans are becoming familiar with it,” Shahrulmiza told Bernama. According to MATRADE, Malaysia’s total 2017 exports of food, beverages and agro-based products to the US amounted to RM3.07 billion, comprising palm oil and palm-oil products (RM2.26 billion), other vegetable oil (RM25 million), seafood products (RM57.3 million), processed food (RM676.9 million), beverages and tobacco (RM50.5 million). The country’s total exports to the US in 2017 amounted to RM88.69 billion (US$1 = RM4). The NYFFS is organised by the Speciality Food Association (SFA) and its President, Phil Kafarakis said it provides a good platform to showcase processed food products to a large number of US and North American buyers. According to him, the speciality food market in the US has been growing between 15 and 18 per cent in recent years. “The US speciality food market is expected to touch US$250 billion (US$1 = RM3.99) in 2020. According to SFA research, organic processed foods and fresh fruits will also continue to be popular in the future. “Success depends, largely, on a company’s ability to adapt to the specific consumer needs and tastes in a foreign market. “One trend that is ubiquitous is that there is a growing demand for vegetarian and vegan food products, due to the growing consumer consciousness towards environmental protection and the belief that consumption of nature-based vegetarian diet is healthier than non-vegetarian,” he added. While Malaysian food products can be spotted on the shelves of ethnic stores in the US, local suppliers are striving to have their products sold in mainstream supermarkets, similar to what India, China, Thailand and other Asian countries are already doing. Malaysian tea and coffee can also sell well in the US market backed by savvy marketing. Organic teas with different flavours are becoming increasingly popular with suppliers from India, Sri Lanka and Kenya among others, continuing to rule the roost in the tea-drinking world. One US buyer who sources tea and coffee from Asia, said Malaysia’s Cameron tea could find a niche market in the world’s largest economy. -- BERNAMA