1547D916A32 Danh Gia Thi Truong Qua Nhiet Doi EU

An Assessment of Market Potential
of Selected Tropical Fruits in The Netherlands

Prepared For:

Federal Agricultural Marketing Authority (FAMA)
Bangunan FAMA Point, Lot 17304, J alan Persiaran 1,
Bandar Baru Selayang,
68100 Batu Caves,Selangor
Tel: 03-61389622 Fax: 03-61383650

Prepared by:

Research Team from Universiti Kebangsaan Malaysia

Prof. Dr. Mohd. Fauzi bin Mohd. Jani
Prof. Dr. Aliah Hanim bt Mohd. Salleh
Dr. Tih Sio Hong
Dr. Azhar Hj Ahmad
Dr. Norjaya bt Mohd. Yasin
En. Mhd. Suhaimi Ahmad
En. Ahmad Khairy bin Mohd. Domil

1

Market Potential of Selected Malaysian Tropical Fruits
in The Netherlands

Abstract

Agricultural sector has been identified as the third largest contributor to the growth of the
Malaysian economy. Although Malaysia had penetrated the EU market for the past few
years, the total export is still very minimal and only concentrated on selected fruits
particularly star fruits. As such, this research attempts to explore the market potential of
various tropical fruits in the European market particularly The Netherlands, which serves
a gateway to Europe. The purpose of this research is to identify the types of tropical
fruit distributed and to provide recommendations to increase the tropical fruits export to
The Netherlands. Ten types of fruits are identified as the focal fruits in the study
namely star fruit, papaya, pineapple, pomelo, dragon fruit, rambutan, mangosteen, durian,
mango and jackfruit. One hundred industry players including importers, wholesalers,
distributors, and retailers are chosen for the study sampling. Data is gathered through
personal interviews and market observations. Consequently, a strategic action plan is
recommended to increase the market potential of Malaysian tropical fruits. It is also
important to comply with several international regulations such as EUREPGAP and
HACCP in order to penetrate the supermarket chains in The Netherlands.

Keywords:

Marketing strategy, supply chain management and distribution

Introduction

European Union (EU) is the worlds largest importer of agricultural products and the
major imported products are fruits, vegetables, cereals and coffee. Fruit consumption is
increasing due to health conscious eating habits and there is great potential towards the
consumption of exotic/tropical fruits. The import of agricultural products to EU markets
is via the Netherlands since it is a gateway of fruits and vegetables to the EU markets.
Accordingly, this research project aims at assessing the market potential of selected
tropical fruits in the Netherlands. The findings of this research would certainly help in
formulating a strategic action plan to enhance Malaysian export of tropical fruits.

The high standard of living and purchasing power of the Netherlands consumers indicates
there is a great potential for demand on tropical fruits and fruit products. This study also
focuses on the market potential of ten tropical fruits which are 1) star fruit, 2) pomelo, 3)
dragon fruit (pittaya), 4) papaya, 5) pineapple, 6) mango, 7) rambutan, 8) mangosteen, 9)
durian and 10) jackfruit.

Therefore, this research focuses on achieving the following objectives; to identify
importers, distributors and retailers in the Netherlands that market tropical fruits, to
identify the types of tropical fruits distributed and the preferred characteristics of these
2

fruits, and to suggest a strategic action plan to increase the tropical fruits export to the
Netherlands.

Overview of Tropical Fruits in the EU Markets

It is predicted that the demand for fresh tropical fruits is growing at nearly 8% over the
projection periods for major tropical fruits. World import of tropical fruits is expected to
reach 4.3 million tones by 2010 and 87% (or 3.8 million tones) of this demand would be
from developed country markets. Among the biggest markets for tropical import are the
EC markets, followed by the United States of which both markets total up to 70% of the
import demand. For the EC markets, the Netherlands remains as the major European
transshipment point or gateway for imported tropical fruits. Thus, it is important to
understand the marketing channel of the Netherlands and establish network contact in
order to penetrate the EU markets.

Export of fruits and vegetables to EU markets also encountered competition from the
local produces. Since EU markets are governed by The European Commission, there is a
Common Agricultural Policy (CAP) that controls the prices and subsidies. The
objectives of CAP include development of local agricultural system, taking care of the
local agricultural community and the control of agricultural products pricing as well as
the movement of products (The European Commission, 2000). Efforts of CAP have no
doubt has led to the increase of the number of farmers and hence, increase in local
supply. However, there is a demand gap for tropical fruits where tariffs for non-
competing commodities (i.e., not produced in EU) like tropical products are low. In
addition, there is a preferential scheme given to imports from developing and less
developing countries, thus favoring of some countries (www.researchandmakrets.com).

Malaysian Exports of Selected Tropical Fruits to EU

Malaysia is one of the exporters of tropical fruits to the EU markets. Figures 1 to 5 show
the total quantity of exports of selected tropical fruits from Malaysia to the EU markets
between 2001 and 2005. In Figure 1, there was a slight increase in quantity and in year
2005 the export was recorded at 90kg. Durian is a unique tropical fruit and only
appreciated by a small group of the EU consumers. This group of consumers might only
be Asian originated consumers, and are willing to pay slightly premium price to enjoy
fresh durians. Frozen durian is also exported to EU markets and the main suppliers are
Thailand. Malaysia might want to explore the export of fresh and frozen durian to the
EU markets.

3

Figure 1: Malaysian Exports of Fresh Durian
0
200
400
600
800
1000
2005 2004 2003
EU25
Netherlands

Source: Adapted from table 2.2.1,
http://mkaccdb.eu.int/mkaccdb2/statistical_form.htm, Accessed date 22/7/2006

Malaysian exports of fresh or dried guava, mango and mangosteen have not been
consistent. As shown in Figure 2, though from year to year there was slightly increase in
exports of these fruits, in 2005 the quantity export was not very high with a total of
12,900 kg. As mentioned before, these fruits are exported by India and Thailand.

Figure 2: Malaysian Export of Guava, Mango, and Mangosteen
0
5000
10000
15000
20000
25000
30000
35000
2005 2004 2003 2002 2001
EU25
Germany
Netherlands
UK
France
Italy

Though in smaller quantity, Malaysian export of fresh tamarind, cashew apple, jackfruit,
lychee and sapodillo plum category are on a constant increase (Figure 3).The export is
more reflected on jackfruit export since the jackfruit market acceptance is more
favorable. Generally, to western consumers, it is a delicious fruit especially prepackaged
jackfruit. J ackfruits that are exported in whole units are used for decorative purposes.

4

Figure 3: Malaysian Export of Tamarind, Cashew Apple, J ackfruit, and Lychee
0
20000
40000
60000
80000
100000
2005 2004 2003 2002 2001
EU25
Germany
Netherlands
UK
France
Italy


Malaysian export of fresh papaya has shown a slight decrease for five consecutive years.
The direct export of papaya to United Kingdom is of minimum quantity (Figure 4).
According to the Malaysian exporters, the best quality papaya is usually supplied to Hong
Kong market at premium prices. In addition, there might also be a shortage of supply due
to some farming problems that affect papaya fruits. In 2005, Malaysian export of papaya
to EU is 68,200kg.

Figure 4: Malaysian Export of Fresh Papaya Pawpaw
0
5000
10000
15000
20000
25000
30000
35000
2005 2004 2003 2002 2001
EU25
Germany
Netherlands
UK
France
Italy


Star fruit is the main export of Malaysia. The quantity export of fresh star fruit and
dragon fruit are stable at more than 3 million kg (Figure 5). In particular, Malaysian
export of star fruit is significant. Most of the EUs importers and or wholesalers get their
star fruit supplies from Malaysia. This is one of the potential export areas. However, the
volume of star fruit consumption is not growing due to the low consumer awareness of
star fruits consumption and its nutritional value. Star fruit is used as decorative purposes
and only a small quantity is used for consumption. More introductory promotion is
needed to increase the world demand on star fruit. Dragon fruit is quite new to the EU
consumers and the white dragon fruit is highly demanded compared to red dragon fruit.
5

Figure 5: Malaysian Export of Fresh Star Fruit and Dragon Fruit
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2004 2003 2002 2001
EU25
Germany
Netherlands
UK
France
Italy

From the statistics, it is indicated that Malaysian tropical fruit exports to EU remain at
lower and inconsistent quantity. There are some opportunities yet to be fully explored
and exploited. Among the trade partners for Malaysia are the Netherlands, Germany,
United Kingdom, France and Italy with the Netherlands as a major gateway for
Malaysian exports to get access to the EU markets. In terms of the type of tropical fruit
export, it is identified that higher potential fruits include star fruit; fresh or dried guava,
mango and mangosteen, papaya and durian.

Methodology

Before the actual data gathering in the Netherlands, an exploratory study was conducted
among a group of Malaysian fruit suppliers and exporters. Then, industry interviews
were carried out among the Netherlands importers/exporters, distributors, wholesalers
and retailers to examine the characteristics of tropical fruits distribution activities and to
determine the potential demand of the selected tropical fruits. A drop off method was
also included in the survey to generate more industry responses especially to capture the
potential respondents who were unable to attend formal interviews. In addition, market
observation was done to understand the daily function of tropical fruit distribution and
market spread of tropical fruits within the local community.

This holistic research approach would generate more information that is useful to draw a
complete framework of foreign channel distribution and fruit distribution network in the
Netherlands market. To determine a valid and meaningful findings a sample size of 100
industry players was targeted. The study took approximately six months of study which
encompassed secondary and primary data collection, data analysis and reporting as well
as strategizing on strategic action plan. The research was completed in April 2007.

6

Research Findings

Sample Characteristics

A total of 100 field interviews or observations were carried out. Refer to Table 1 for the
breakdown of the respondents. Large scale importers are channel players that directly
import fruits and vegetables from overseas. Eleven large scale importers that operate in
the Netherlands as well as Europe were interviewed. Examples of large scale importers
are FTK, Natures Pride, Hispa Fruit, Aartsenfruit, Agro Fair, Bud Holland, De Groot
International B.V. and Valstar. These players usually contact foreign farmers or
exporters and import substantial quantities of fruits including tropical fruits. They supply
to the local Netherlands wholesalers and other European wholesalers that distribute the
fruits through out European markets.

Table 1: Sample Category and Size (N =100)

Sample Category Sample Size
Large Scale Importer 11
Importer/Wholesaler 35
Large Scale Retailer 12
Retailer/ Small Retailer 38
Open Market 4

Overall, the channel of distribution in the Netherlands is well developed and connected.
From figure 6, the channel members include large scale importers, wholesalers, and
exporters. These channel members are the big players in fruits and vegetables
distribution in the Netherlands as well as European markets. They usually hold multi-
roles from importing fruits and vegetables from various parts o the world, sourcing from
South America, Asia and also local supplier to re-exporting to European countries and
redistribute them through out the Netherlands. In their distribution network, they supply
to other importers, wholesalers, exporters and sometimes retailers.

Figure 6: Overview of the Channel of Distribution

7

Fruits Supply and Distributing Size

Tropical fruits in the Netherlands are usually imported from South America, Africa and
Asia. Other exporting countries include Brazil, Colombia, Surinam, Mexico, Costa Rica,
Thailand, Indonesia, Vietnam, Philippine, India and Malaysia. From Table 2,
Malaysian tropical fruits such as star fruits, pomelos and rambutans are common but,
mangosteens, dragon fruits, durians and jackfruits are not very common. In terms of the
size of the fruit distribution, there are different sizes for different type of fruits. Table 3
shows the common distributing size of the selected tropical fruits.

Table 2: Tropical Fruits Distributed and Sources of Supply

Type of Fruits Frequency count of distributor
that distribute the fruits
Source of Supply (Country Base)
Star fruit

33

Malaysia, Taiwan,
Israel (very small quantity)
Dragon fruit

24 Vietnam, Thailand,
Malaysia (very small quantity)
Papaya

50 Colombia (cheaper price),
Brazil, Thailand,
Ecuador, Surinam, Malaysia
Pineapple

41 South America
Costa Rica (Dulce Gold Pineapple)
Brazil, Ecuador, Mexico, Ghana, Spain,
Malaysia
Mango

44 South America
Philippines (the best)
Thailand, Pakistan, India, Mexico, Mali,
Carribean, Peru, Malaysia
Pomelo

31 China, Thailand, Israel
Malaysia (price too high)
Rambutan

31 Thailand, Indonesia, Malaysia
Mangosteen

28 Thailand, Indonesia, Africa, Malaysia
(Hardly see in the market)
Durian

18 Thailand, Malaysia, Africa
J ackfruit

17 Malaysia, Thailand (in pre-packed form)
Depend on demand, hardly see in the
market
8

Table 3: Tropical Fruits Consumption and Distributing Size for European Market

Type of Fruits Frequency Count Distributing Size
Star fruit
Decorative
Consumption
Decorative &
Consumption

15
4
4
150gm per piece
20 pieces/ box
1 box 3kg

<150gm per piece
24 pieces/ box
1 box 3.5kg
Dragon fruit
Decorative
Consumption
Decorative &
Consumption

1
11
2
500gm/piece
10 pieces/box
1 box 5kg
Papaya
Decorative
Consumption
Decorative &
Consumption

2
18
-
<800gm/piece
7-9 pieces/box
1 box 6kg
Pineapple
Decorative
Consumption
Decorative &
Consumption

3
13
3
>1.5kg /piece
6-8 pieces/box
1 box 11-12kg

Mango
Decorative
Consumption
Decorative &
Consumption

2
15
1
>500gm/piece
6 pieces/box
1 box 4kg
500gm/piece
8 pieces/box
1 box 4kg
Pomelo/Citrus grandis
Decorative
Consumption
Decorative &
Consumption

-
12
-
1-1.25 kg /piece
9 pieces/ box
1 box 10 kg
Rambutan
Decorative
Consumption
Decorative &
Consumption

-
15
-
>30gm/piece
12 pieces/small package
4 packages/box
1 box 2kg
9

Mangosteen
Decorative
Consumption
Decorative &
Consumption

-
13
-
<100gm/piece
20-24 pieces/box
1 box 2kg
Durian
Decorative
Consumption
Decorative &
Consumption

-
12
-
Frozen Fresh Durian
454gm per package

>1.5kg each
Jackfruit
Decorative
Consumption
Decorative &
Consumption

-
9
1
>15kg/piece
1 piece / box
1 box 15-18kg

Competitiveness of Malaysian Fruits

A positioning mapping looks at the competitiveness of the tropical fruits. The mapping is
based on two elements; market competitiveness and market demand based from the
survey and market observation during the team visits to the Netherlands and Germany.
As shown in Figure 7, there are three clusters of different positioning for the fruits.

Figure 7: Positioning Map for Selected Tropical Fruits in European Market

High

Market
Demand
Starfruit

Rambutan, Durian,
Jackfruit, Mangosteen
Pomelo,
Dragon Fruit
Mango, Papaya,
Pineapple

Low High
Market Competition

10

The first cluster is mango, papaya and pineapple. Though the demand or quantity
imported into the Netherlands and European market is high, the competitiveness is also
high. In order to compete, Malaysian suppliers must improve the quality of the fruits and
reduce the cost of farming. Next cluster is pomelo and dragon fruit. These tropical fruits
though accepted in the market, the quantity of demand and numbers of suppliers are not
significant. Dragon fruit has a great potential to be exported to the European market due
to the low market competitiveness. The third cluster is star fruit, rambutan, durian,
jackfurit and mangosteen. This cluster is more on novelty purchase. These fruits are not
commonly available in the market. The demand is seasonal, thus the market
competitiveness is relatively low compared to other tropical fruits. Star fruit is
highlighted because Malaysia is the leading supplier of star fruits. The majority of
importers, wholesaler, traders and retailers mainly recognize Malaysian star fruits and
import them from Malaysia.

Conclusions and Suggestions

There are a number of strategic actions needed to enhance Malaysias competitiveness of
tropical fruits export for the Netherlands and European markets. This study on the
Netherlands market serves as a good platform to understand the overall channel of
distribution. In terms of supply, value chain and market access there are six components
that require special attention. These six strategic actions are proposed due to its
significant impact on the Malaysian tropical fruits sales in the Netherlands and European
markets. Figure 8 shows the components of the strategic action plan.

Figure 8: Components of Strategic Action Plan

Suggestions for Strategic Action Plan
Strategic
Al liances
Foreign
Importers
Wholesalers
Distributors
Consumer
Awareness
Foreign
Consumers
Market Maker
* Malaysian
Government
Agencies
* Local Distributors
Exporters
Associations
(National
Distribution
Network/
Center)
Suppl y Chain
Management
* Local Malaysian
Farmers, distributors
Exporters (Integration
Of Supply Chain
Activities)
* Commercial-based
farming
Information Flow

i. Supply chain management system in the local Malaysia market

The suggested strategic action plan includes a setting up of farmers, distributors and
exporters alliances with the leading exporters serving as key management center. In
summary, the solutions are:
11

Enhanced vertical cooperation: Farmers, Distributors and Exporters Alliances
Enhanced horizontal cooperation between industry players
Further development of EUREPGAP compliance working team, farmer groups
Encourage more Commercial-based farming and infrastructure
Transportation cost subsidization; double tax deduction for carriers

ii. Enhancement of strategic alliances with key foreign channel members

In general, the research findings indicated that there is a lack of market access among the
local players. The solutions should include:
Enhancement of Strategic alliances with foreign importers and wholesalers
Strategic partnership with importers because importers are the first-tier market
player that control the distribution network and market creator that pushes the
demand down the channels to end users via retailers

iii. Large scale consumer awareness marketing campaign

Generally, consumer awareness on tropical fruits is at a minimum. Tropical fruits are
sometimes used in food decoration rather than consumption. The summarized solutions
would include:
Conduct large scale consumer marketing campaign
Collaboration with foreign universities to promote Malaysian tropical fruits
Young generation: develop positive perception towards tropical fruits
consumption
Periodical in-store promotion

iv. Brand management

It is found that there is lack of brand recognition in the market. In addition, European
channel members and consumers are unaware of tropical fruits nutritional value. In
summary, the solutions are as follows.
Development of strong products in terms of fruit quality, packaging, cold-chain
facilities
Development of strong brand (e.g. Chiquita Banana, Dole Pineapple, Washington
Apple, Del Monte Tomato) in terms of brand awareness, perceived quality, brand
loyalty and brand association
Conduct brand survey
Consumer education campaign in supermarket chains to make European shoppers
to acquire the taste for sweet tropical fruits and to eat them fresh in addition to use
them for decorative purposes
Promotion of brand to create brand equity (added value of the brand name)

12

v. Coordinated research, development and market access

Research and development must be fully utilized to gain market access. Some new
research findings or information might not be well disseminated due to government
regulations on information dissemination. The solutions are:
Review the existing rule and regulations on information dissemination
Enhance the efficiency of information dissemination via centralized information
intelligence unit (IIU)

13

Analyzing the Marketing Channels of Tropical Fruits
in the European Market

Abstract

The Netherlands is considered the second largest trading partner for Malaysia in the
European Union (EU) market and the tenth largest export destination for Malaysian
fruits. Successful penetration and expansion of tropical fruits is very much dependant on
the overall integrated marketing system and supply chain management. Hence, this study
explored the marketing channel of tropical fruits in the Netherlands. Specifically, the
study identified 1) the industry players in the fruits industry in the Netherlands
particularly importers, distributors, wholesalers and retailers and 2) the facilities for fruit
distribution. One hundred industry players are chosen for the study sampling. The data is
gathered through personal interviews and market observations. The channel of
distribution in the Netherlands is well developed and connected. Therefore, there is a
need to create strong partnership between Malaysian fruit exporters and the Netherlands
importers and wholesalers. In addition, Malaysian exporters should focus on the
supermarket chain since it provides great economical and growth opportunities for
tropical fruits. The distribution of fresh produce in the Netherlands is mainly through the
supermarket chain and on the increasing trend.

Keywords:
Supply chain management, marketing management and marketing strategy

Introduction

Market penetration and expansion of tropical fruits, either in fresh form or processed, is
very much dependent on the overall integrated marketing system and supply chain
management. For the whole system to function accordingly, several mechanisms have to
be established which include market channeling system, grading system for fresh and
processed products, transshipment and storage, bar coding and identification system,
quality control and labeling. Understanding the characters of the existing markets and its
development with respect to fruit industry in the targeted country and the character of
customers preference are important knowledge in order to strategically place Malaysian
fruit exports to the European community.

One of the immediate issues that require more attention is the understanding of foreign
market channel and industry characteristics in the Netherlands, especially in a country
that serves as a market gateway to Europe. Thus, an in-depth understanding of the
characteristics of the channel members and its operation of fruits distribution would
definitely gain us better access to the European markets. This research focuses on
achieving the following objectives:
i. To identify importers, distributors and retailers in the Netherlands that market
tropical fruits
14

ii. To identify facilities in fruits distribution used by the channel members in
distributing tropical fruits

Tropical Fruits Export in the EU and the Netherland Markets

According to DG Trade European Commission, it is predicted that the demand for fresh
tropical fruits would grow at nearly 8% over the projection periods for tropical fruits. In
terms of market demand, United Kingdom is the largest market followed by France and
Germany. Even though EU acts as a single market, EU consumers preferences are
different and they emphasize on different elements. (www.researchandmarkets.com).

World import of tropical fruits is expected to reach 4.3 million tones by 2010 and 87%
(or 3.8 million tones) of this demand would be from developed country markets. Among
the biggest markets for tropical import are the EC markets, followed by the United States
of which both markets total up to 70% of the import demand. For the EC markets, the
Netherlands remains as the major European transshipment point or gateway for imported
tropical fruits. Therefore, it is important to understand the marketing channel of the
Netherlands and establish network contact in order to penetrate the EU markets.

Market Channels of Fruits Distribution in the Netherlands

From experts opinions and in reference to the GfK Consumentenpanel Netherland, Frugi
Venta Annual Report of 2005 (report on consumer panel for fruit and vegetables
purchases), it is clear that supermarket chains are the main distribution channels of fruit
and vegetables. The total volume traded in 2005 is 3.7 billion (refer to Table 1). Out of
this, 2 billion is through supermarket chain (54%), followed by the daily or flea or open
market (32.5%) and green grocer or fruit and vegetables shops (13.5%). Table 2 shows
the share of volume in the purchase of fresh vegetables and fruit. The distribution of
fresh fruits is mainly through the supermarket chain and followed by the open market.
Green grocer and home delivery enjoy relatively smaller shares. Therefore, to penetrate
the Netherlands market it is crucial to access the supermarket chains.

Table 1: The Value of Selected Market Segments in Year 2005

Market Segment Euro (in Billion) Percentage* Percentage
Supermarkets (5000 Outlets) 2 54% 65%
Daily/ Flea Market 1.2 32.5% 20%
GreenGrocer/Shops/Fruit/ Stalls 0.5 13.5% 15%
TOTAL 3.7 100% 100%
*2005 percentage is calculated based on the three selected market segment volume
Source: Adapted from GfK Consumentenpanel Nederland. Frugi Venta Annual Report
2005

15

Table 2: Share of Volume in Purchases of Fresh Fruit and Vegetables for Individual Sales
Channels in the Netherlands

Vegetables Fruit
1999 2002 2005 1999 2002 2005
Supermarket 73% 77% 84% 63% 68% 75%
Greengrocer 11% 8% 5% 12% 9% 7%
Home delivery 1% 1% 1% 3% 2% 2%
Open-air
market
11% 10% 6% 18% 16% 12%
Other 4% 4% 4% 4% 5% 4%
TOTAL 100% 100% 100% 100% 100% 100%
Source: GfK Consumentenpanel Nederland. Frugi Venta Annual Report 2005 page 10.

EU Requirements of Tropical Fruits Importation

The European Union is a custom union that has a common tariff for third countries
importation into EU markets. In fruit and vegetable sector EU has a common market
organization (CMO) that is involved in policy mechanisms and trade agreements to
stabilize markets (http://www.ers.usda.gov). EUs requirements for foodstuffs export are
high especially in terms of food quality and safety. Several mandatory legislative
requirements include general good law, certificate of conformity, maximum residue
limits and phytosanitary regulations and plant protection.

General Food Law

European Food Safety Authority was established in 2002. It underlines procedures in
food safety, other general principles and requirements and provisions on the traceability
of food. General Food Law was enforced since J anuary 2005. Certificate of Conformity
is required for all import consignments of fresh fruit and vegetables from countries
outside of the EU. Maximum Residue Limits (MRLs) for pesticide residues is the EC
Marketing Standards requirements. A Pesticide Residue Analysis report should
accompany each consignment and the labs providing the report must be accredited or ISO
approved. The International Plant Protection Committee (IPPC) sets the International
Standard for Phytosanitary Measures (ISPM) in order to ensure that the imported
agricultural goods are free from plant diseases or insects. It also prevents the EU crops
from contact with phytosanitary harmful organisms that might be transferred from the
imported consignments. Other measures of fruits import include firmness of the fruit,
freshness, color/appearance, packaging presentation, uniformity in size, free of damaged
and abnormal external moisture.

EUREPGAP

Recently the EUREPGAP certification is required especially for supply to supermarket
chains. It is believed that in 2008, EUREPGAP certification might be a must in order to
16

supply to EU markets. EUREPGAP provides a widely accepted standards and
procedures for the global certificate of Good Agriculture Practice (GAP). It consists of
standard processes of product even before it is planted until it leaves the farm. This is to
ensure that the best practice is applied in systematic and consistent approaches
throughout the entire agriculture chains from seed selection, farm, chain of processing,
packaging and distributing channels until the products are delivered to the end
consumers. It is accomplished through standardization of procedures and compliance
criteria. Currently, even though EUREPGAP certification is not a must for certain
segment, it has become a basic requirement to enter into the high end retail chains in
European markets.

Methodology

Industry interviews were carried out among the Netherlands importers/exporters,
distributors, wholesalers and retailers to examine the characteristics of tropical fruits
distribution activities and to determine the potential demand of the selected tropical
fruits. A drop off method was included in the survey to generate more responses
especially to capture the potential respondents who were unable to attend formal
interviews. In addition, market observations were done to understand the daily function
of tropical fruit distribution and the market spread of tropical fruits within the local
community.

This holistic research approach would generate more information that is useful to draw a
complete framework of foreign channel distribution and fruit distribution network in the
Netherlands market. To determine a valid and meaningful findings a sample size of 100
industry players was targeted.

Findings

Sample Characteristics

This study focuses on industrial survey that interviewed importers, wholesalers and
retailers of tropical fruits. A total of 100 field interviews or observations were carried
out. Refer to Table 3 for the breakdown of the respondents.

Table 3: Sample Category and Size (N =100)

Sample Category Sample Size
Large Scale Importer 11
Importer/Wholesaler 35
Large Scale Retailer 12
Retailer/ Small Retailer 38
Open Market 4

17

Channel of Distribution in the Netherlands

With reference to Figure 1, the channel members include large scale importers and
wholesaler, large and small scale retailer, and open market.

Figure 1: Overview of the Channel of Distribution

i. Importers and Wholesale Distribution

In the group of importers and wholesale distribution, two significant segments can be
identified: large scale importers and importers/wholesalers group. The first group is the
large scale importers. The list of large scale importers is as follows:

Aartsenfruit Hispa Fruit
Agro Fair Natures Pride
Bud Holland OTC Holland
De Groot International B.V. Stacy Food Group
FTK Holland Valstar Group

This group of channel members plays a key role for fruits distribution through out the
Netherlands and European market. As shown in Figure 2, large importers import fruits
from foreign exporters and some even directly contact the foreign farm operator and
foreign wholesale center to assure that they enjoy the certain targeted margin. Their main
customers are big buyers such as other importers/wholesalers in the Netherlands,
importers/ wholesalers in Europe and large scale retailers. In general this group of
players may enjoy about 30% to 35% gross profit margin. To supply to this group of
importers, fruits products must posses EUREPGAP certificate, especially in 2008, where
the EUREPGAP requirement becomes a must.

18

Figure 2: Suppliers and Customers of Large Scale Importers

Importer/
Wholesalers in the
Netherlands
Foreign
farm
operator

Large Scale

Based on the interviews conducted with the large scale importers, the first criterion that
their clients looked for when purchasing fruits is EUREPGAP (refer to Table 4). Large
importers are usually not involved in re-packaging since all imported products are sold in
containers and pallets. Mix pallet may be supplied upon request by the customers.

Table 4: Feedbacks from Large Scale Importers (n =11)

Statements Summary Remarks
Import/export activities Actively involve in importing and exporting activities of fruits and
vegetables.
Source from the world and distribute through out Europe
General turnover is more than 100 million
Decision making criteria
of tropical fruits
Quality, Price and Consistency of supply
Facilities Have their own cold rooms and cold-storage vehicles
Mode of payment Letter of credit via IBAN (International Bank Account Number)
Direct bank transfer and Bank guarantee for suppliers
Credit term Usually within month to 1 month
Longer credit term is given to supermarket as payment is secured.
The same credit term is received from suppliers
Company policy on
defective goods
The common practice is to take the photo of the defective goods
and send credit note to the suppliers or
Accept the fruits and sell at lower price
Service Deliver the ordered fruits to their customers.
Rent out the storage space (warehouse space) for their customers.
Import requirement EUREPGAP Certification
Compliance to all EU rules and regulations
Brand name is not an issue except for well established brand name
Importers/
Exporter
(Margin ~30-35%)
Importers/
Wholesalers in
Europe
Foreign
Exporters
Foreign
wholesaler
center
Large Scale
Retailers
(Supermarkets)
19

such as Chiquita Banana and Dole pineapple.
Packaging requirement Standard container and pallet size.
Does not involve itself in re-packaging and pallets are ready to be
transported to the customers.
Mix pallet is provided with regard to customers requirements
Promotion Use push strategies that usually highlight the fruits that they carry
and service provided.
Do not promote specific country products. Promotion of the
specific country products depend on the exporting country.
For example, Thailand government and exporters support with
poster and various promotional materials.
Malaysian products Receive minimum materials about Malaysian products.
The only exception is starfruits
The companies import starfruits mainly from Malaysia
Collaboration potential Interested to collaborate with Malaysian exporters and farm
operators, however, it depends on the quality, price and supply
consistency
No general collaboration terms, all depends on specific negotiation

ii. Importers/ Wholesalers

The second group of tropical fruit network is importer/wholesaler. This group of channel
members distributes fruits and vegetables within the Netherlands markets as well as
neighborhood European countries such as Germany, Belgium and France. They import
fruits from foreign exporters. Their main customers are retailers in the Netherlands and
European countries. As depicted in Figure 3, this group of players might enjoy about
25% to 35% gross profit margin. To supply to this group of importers, fruit products
must possess minimum EU requirements. EUREPGAP certificate is an added advantage
but not compulsory, however, it may be the basic requirements in the near future.

Figure 3: Suppliers and Customers of Importers/Wholesalers

Wholesaler/
Retailers in Europe

Importers/
Wholesaler

(Margin ~25-
35%)
Small Retailer/
Open Markets in
the Netherlands
Foreign
Exporters
Large Scale
Retailers
(Supermarkets)
20

According to these companies, their clients criteria in fruits purchasing decision are
price and quality. As shown in Table 5, wholesalers try to avoid any re-packaging work
as labor cost is extremely expensive in Europe. However, minor re-packaging is
sometimes performed to meet their clients packaging requirements. Some customers
require the packaging in the form of ready-to-sell. Small mixed-packaged fruits are also
provided for specific customers such as hospital fruit store.

Table 5: Feedbacks from Importers and Wholesalers (n =35)

Statements Summary Remarks
Distribution activities Involve in distributing fruits products to the local retailers as well
as to the other European countries especially Germany, Belgium
and France.
Mainly source the products from foreign exporters
Generally, the turnover is below 100 million
Decision making criteria
of tropical fruits
Quality, Price and Consistency of supply
Facilities Majority own cold rooms and cold-storage vehicles
Mode of payment Letter of credit via IBAN (International Bank Account Number)
Direct bank transfer, via cheque or cash
Bank guarantee is provided for direct source of foreign exporters
Credit term Usually within month to 1 month
Longer credit term is given to supermarket as payment is secured.
The same credit term is received from suppliers
Company policy on
defective goods
The common practices include:
taking photo of defective goods and send credit note to suppliers;
returning to the suppliers; writing off; and selling at lower price
Service Deliver the ordered fruits to their customers
The delivery is organized as direct as possible, sometimes directly
from port to the customers venue
Import requirement EUREPGAP Certification is a plus but sometimes not compulsory
In 2008, the EUREPGAP Certification may become a must
Must comply to EU rules and regulations
Brand name is not an issue except for well established brand name
such as Chiquita Banana and Dole pineapple.
Supply to supermarket has more strict requirements
Packaging requirement Do simple re-packaging and bulk breaking to supply to small
retailers.
Excess fruits may be supplied to open markets with minimum
price or at cost.
Some retailers require the fruits packaged in ready-to-sell form
Promotion Do not invest in promotion of specific country products.
Traditionally it depends on the established network of distribution.
The original source of fruits must invest in promotion
Malaysian products Receive minimum materials about Malaysian products.
The only exception is starfruits.
21

Starfruit imports are mainly from Malaysia
Some importers/wholesalers that have established relationship
with Malaysian exporters may carry more Malaysian fruits.
Collaboration potential Few companies are interested to collaborate with Malaysian
exporters, however, it depends on the quality, price and supply
consistency
There is no general collaboration terms, all depends on specific
negotiation

iii. Large Scale Retailers: Supermarket Chains

One of the most important outlets that sell fruit and fresh produce to the customers is the
supermarket. In the Netherlands, supermarket chains are very popular since they are
found everywhere and offer better products at a competitive price. Besides Mediterranean
fruits, tropical or exotic fruits are also popular items found on the shelves of the
supermarkets. Through observation, all the premises are complete with cold rooms to
store the fresh produce.

Albert Heijn

Considered to have the largest market share in the country, Albert
Heijn operates the stores in several formats; everyday
supermarket, the larger Albert Heijn XL, convenience store, and
the Internet delivery service Albert.nl. Albert Heijn stores are full
service-supermarkets and are known for their focus on quality.

From observations, starfruits supply came from Malaysia, whereas bananas and
pineapples are from South America, mainly from the branded Dole and Chiquita. The
tropical fruits on sale here include Doles pineapples (Costa Rica) which are priced at
5.85 each and papayas from Brazil. Interestingly, Albert Heijn makes an effort to
promote these products as exotic fruits through brochures and advertisements.

C1000 Schuitema

C1000 is part of Schuitema, a retail and wholesale company. C1000 is
now part of Ahold Supermarket Group which includes Albert Heijn
since it holds 73% interest in Schuitema. Tropical fruits such as bananas
and ananas are also available in these supermarkets. Besides coming up
with its own brand C1000, branded fruits such as Dole and Chiquita
are also available. C1000 also does its own packaging.

Through technology innovation, C1000 supermarket chain is rolling out a new generation
of self-scan checkouts. Customers simply place their items on the conveyor belt, which
are transported through a scanner portal, where a device will read the barcodes,
regardless of their position. By eliminating individual scanning, it accelerates the
checkout experience.
22

ALDI

Aldi is considered as the worlds leading discount retailer. With a
modified concept, Aldi has developed a hybrid that until now has
been regarded as opposites: discount and convenience. With over
5000 stores all over the world, Aldi focuses on food-to-go and
convenience products, including chilled drinks, sandwiches and fresh
fruit - and all this without breaking the rules of efficient discounting.

All products whether baked beans or fresh cut flowers, biscuits or daily delivered fresh
fruit and vegetables, are sourced from the best suppliers. Tropical fruits such as bananas
and pineapples are available in this outlet. Among the tropical fruits available include
papaya (Brazil) which is priced at 5.95 per piece, pineapple (Costa Rica) at 5.50 per
piece, mango (South Africa) at 0.95 per piece and pomelo (China) at 2.50 per piece.
The fruits are sold as they are, in the original packaging. Promotion on tropical fruits is
done in the store; point-of-purchase (POP).

Sligro

Sligro is a wholesale outlet (entrance by registered pass only). Most of the customers are
organisational consumers such as restaurants and cafeteria (39%), medium business
(22%) and small retailers (6%).

Currently, Sligro has 38 self-service stores and food contributes 90% of sales. Its main
competitor is Makro. In Netherlands, Sligro has more sales than Makro and the average
Sligro store resembles a hypermarket, whereas Makro looks more like a warehouse.
Branded fruits like Dole and Chiquita are sold here. Other tropical fruits include
Malaysian starfruits, Brazils melons, Chinas pomelos and Thailands rambutans.

iv. Small Retailers and Open Markets

Small Retailers

A total of 38 small retailers were included in the study. Retailers in the form of mini
market and grocery stores are scattered through out the Netherlands. It serves the local
communities at convenience location and appropriate smaller quantities for household
consumption. A typical mini market usually carries various ranges of household items
such as canned foods, vegetables, fruits and dried items. Relatively, tropical fruits are
considered as luxury fruit items as it is imported. Therefore, consumers purchases of
tropical fruits are relatively in smaller amount. The retailers require fruit products that
are packaged in a ready-to-sell form. As labor cost is expensive, retailers also avoid doing
re-packaging activities.

23

Open Markets

Open markets are traditional areas for selling dried and wet products. This type of open
market usually operates in the morning or evening on a regular basis. For example,
Afrikaaderbuurt Open Market operates twice per week. The products sold in open
markets are of lower quality and price. Excess supply is usually distributed in the open
markets with minimum pricing. Only few typical tropical fruits such as banana,
pineapple, mango and papaya are commonly displayed and sold. Few stores sell dragon
fruits. Starfruit, pomelo, rambutan, mangosteen, durian and jackfruit are not available in
the open markets. Store owners usually get the suppliers from local wholesalers and sell
on cash basis. No specific packaging is required.

Pineapple is one of the tropical fruits sold that requires specific cutting machine. The
machine is supplied by the suppliers to the store owners. When consumers purchase the
pineapple, the cutting service is provided so that the pineapple is in the ready-to-eat form.

Conclusion

Information from various industry players is pertinent in understanding the market
characteristics and structure of EU. Tropical fruits are brought in by importers and
wholesalers which are later distributed in retail outlets such as supermarkets and open
markets. Penetrating the supermarket chains in the Netherlands would be the next step in
order to gain market acceptance to the European consumers.

The Netherlands provides good access opportunities to the European countries since the
fruits are transported to the Netherlands and re-exported to Germany, France, the UK and
other European countries. To address the above issues, a strategic action is recommended
which consists of several components. They are 1) supply chain management system in
the local Malaysian market, 2) enhancement of strategic alliances with key foreign
channel members, and 3) coordinated research and development in market access.

For Malaysian suppliers to compete in the international market particularly in Europe,
they must supply enhance its product quality and price competitiveness. In addition, more
promotion and marketing activities are needed especially promotions in the supermarket
chain stores to attract end users which serve as a pulling effect. Finally, Malaysian
suppliers need to be able to supply tropical fruits consistently in order to attract the big
foreign buyers.

24

References

Exotic Tropical Fruits Market in the EU,
www.researchandmarkets.com/reportinfo.asp?report_id=304437, Accessed date
25/1/2007.

Market Access Database, DG Trade European Commission,
Tropical Fruits, www.fao.org, Accessed 27/1/2007.

International Tropical Fruits Network,
www.itfnet.org/whatsnew_content.fm?ID=362&Channel=Business, Accessed 1/7/2006.

http://www.ers.usda.gov, Accessed date 1/7 2006

http://www.ers.usda.gov/publications/wrs0406/wrs0406e.pdf, Accessed date 1/7 2006

http://www.fruitsafety.org/UK/Products/Pineapple/Framesetpineapple.htm, Accessed
date J uly 1, 2006

25

The Enterprise and the Importance of Quality for Market Access in EU.

By

Palasuberniam K.
Agriculture Counsellor
Embassy of Malaysia
The Netherlands

Abstract

Quality is a fundamental factor for negotiating price on our products.
Engaging both the enterprise and public sector at all level for determining
the compliance in the quality infrastructure is of paramount importance.
Having done that, compliance to the quality standards set by both
regulatory and consumer organization of importing countries is the
responsibility of the enterprise.

Food safety issues in the whole of EU are governed by regulations and
directives established at EU level. In addition, retailer organizations such
as GlobalGAP, BRC, IFS, and Q&S have their own food safety control
systems with their suppliers which are often more stricter than the state
rules.

Recent trends on food markets favour the development of new food
products with more added value and higher degrees of differentiation.
These changes have created new opportunities for new products such as
convenience and functional products such as hot cuisine, food with low
sugar level, natural products and products that can be conveniently picked
up at the stores.

Enterprises in Malaysia should exploit these opportunities and compete in
the new value chain. Also be prepared to innovate and to organize speedily
not only to comply with food safety standards but also to be sensitive to
the changing food habits in Europe.

1

1. Introduction

Trading is the basis for the existence of commercial activities and the success of each
enterprise is subject to its ability to get organized in order to produce and promote its
products.

Since Europeanization or globalization of the trade and the rules it entails, the most
realistic approach for an enterprise is futures selling, i.e, selling before producing. But,
we cannot sell before having produced, unless we are capable of respecting the buyers
demand, product features, i.e, adhering strictly to the quality requirement. Therefore, it is
imperative for enterprises especially in Malaysia to produce products of quality and at
the same time to strengthen the national quality control body which would enable a label
to be given to the origin of the products.

Analysis of retail sales data reveals there is a further trend in food consumption pattern
in Europe. Packed food products account for large shares of total food expenditures
among consumers especially among the high income countries and the demand for
convenience is still growing. Market trends also indicate strong growth in sales of
packaged food products among the newly independent countries in Eastern Europe.

The demand for processed attributes has increased consumption of quality assured
products including organic products. In Western Europe, this has resulted in increased
sales of private brands because retailers can set and enforce their own product quality
standards.

In developing countries especially in Eastern Europe, expansion of supermarket chains
has also introduced private retailer brands, mainly cheaper substitutes for major
manufacturer brands.

This is the reason why the quality control approach remains one of the fundamentals,
even the first and foremost requirement among the rules to be adhered to in all types of
transactions.

2. Market Access Rules in EU

At the moment, there are 35 quality regulations that cover 40 major fruits and
vegetables. The regulations covers minimum requirements for quality (loyal and
commercial quality), criteria for classification and calibration (fair trade); requirements for
presentation and labeling; consumers information and country of origin.

In addition to that, Common Agricultural Policy reform for EU countries was introduced
on 24
th
J anuary 2007 to improve the competitiveness and market orientation of the fruits
and vegetable sector, reduce income fluctuations resulting from crisis, increase
consumption, enhance environmental protection and, where possible, simplify the rules
and reduce the administrative burden. The reform would encourage more growers to join
Producer Organizations within EU.

For Malaysia, to get market access, let us move on to the practical phase of the matter
in order to understand the links existing between our activities and Quality.
2

Moving to the market implies respecting the market access rules, namely;

Offering Quality
Providing Quantity
Ensuring Regularity
Offering a Good Price

So for an enterprise in Malaysia to get market access and compete in the EU market, it
needs to focus on the above market access rules.

2.1. Offering Quality

Technological advancement of food production and internationalization of food
distribution have induced more concern on food safety standards. Regulators have
issued codes of conduct for food production, distribution, processing and preparation.
The different stages of the production process are subject to different European laws
regarding food safety and quality control or related issues.

The enterprise has to comply with the regulatory standards and consumer demands on
the quality.

2.1.1 Compliance to the regulatory standards

What is the situation in Malaysia? Government enforces technical requirements such as
in CODEX, HACCP, ISO standards for products inter alia, to protect the health and
safety of their citizens. Consequently, an exporter has to meet these requirements for
the relevant product to be allowed entry into the importing country. That is not enough.
The requirements of the buyer have also to be satisfied if the product is to be sold in that
market.

In Malaysia, regulatory bodies involved in the exports of fruits are: Department of
Agriculture and Federal Agricultural Marketing Authority (FAMA). But both these bodies
do not have the capacity or manpower to provide analytical services that has
international standing or accredited laboratories for residues and pests risk analysis.
Other agencies and establishments are also providing analytical services in some other
areas. It will greatly benefit the exporter if there is only one central agency providing all
the necessary analytical services. For example within the European Member States
there is an extensive network of laboratories engaged in detecting undesired substances
in food. Within this network, there are so-called reference laboratories, whose task is to
maintain the quality of the research in detecting residues. But at the national level, in
particular in the Netherlands, two laboratories are represented as National Reference
Laboratory (NRL) for residues in food products. One of the example is RIKILT.

RIKILT- Institute of Food safety is an independent research organisation in the field of
food and feed safety and health. The institute carries out high-quality research in the
detection, identification, functioning and effects of substances in animal feed and
vegetable, animal and compound foodstuffs. It is an autonomous body, self funded that
3

carry out all the necessary analytical services for both enforcement agencies and
consumer bodies. So there is uniformity in the results that everyone accepts the
authoritativeness of the agency. It is also serve as an expert centre for analysis of
residue substances in animal products.

The Fruit Trade Association of Netherlands as (Frugi Venta) has also established Food
Compass in 2003. By means of Food Compass, companies in the fruit and vegetable
trade sector can have residue analyses conducted by agents. As a result, they can
prevent products with excessive residue content from coming into the retail channel.
Members of the association need only have to pay an annual subscription. Growers
apply to Food Compass via the trading firm or the sales organization, and the products
of the grower are sampled at the trading firm in accordance with the normal planning of
Food Compass. Samples are taken from members premises to monitor residues every
three months. This service is free for members.

Since the end of October 2006, Food Compass has been certified as a residue
monitoring system for GlobalGAP.

In Malaysia, there are many agencies providing such services. Very often these
laboratories are not accredited by the international accreditation bodies and the results
are questionable. In view of this Malaysia should positively support the formation of a
single body to implement this entity.

Malaysia Agri Food Corporation or MARDI TEC or FAMACO jointly can form a corporate
entity to set up the laboratory with initial grant from government. This kind of laboratory
that is privately run can be more efficient with result orientated for the benefit of private
sector. This laboratory can encompass not only fruits and vegetables, but also seafood,
meat products and other processed and semi-processed products. But for development
of methodology, this organization can utilize the universities infrastructure and other
government departments for technical services that are available.

These organisation can also become a certified residue monitoring system for SALM,
SALT, SPLAM and also for GlobalGAP as needed.

2.1.2. Compliance to the Consumer Driven Standards

Exporters having to meet the relevant sanitary and phytosanitary measures applicable to
their products for entry into the importing country also need to fulfill the consumer driven
standards. In Europe, satisfying buyer specifications such as Euro Retailer Product
Working Group Good Agricultural Practice (EUREPGAP) synonym (GlobalGAP),
International Food Standard (IFS) and the Global Standard- Food of the British Retail
Consortium (BRC Food) are the pre-requisite for products to be sold in well established
supermarket chains. Conformity has to be demonstrated to mandatory and voluntary
requirements.

Very often the consumer standards imposed by the consumer organization in Europe
are much stricter than regulatory standards that are generally complied with CODEX.

The GLOBALGAP or any other consumer quality standards are primarily designed to
reassure consumers about how food is produced on the farm by minimizing detrimental
4

environmental impacts of farming operations, reducing the use of chemical inputs and
ensuring a responsible approach to workers health and safety as well as animal welfare.
Generally they are a private sector body that sets voluntary standards for the certification
of agricultural products around the globe.

In Malaysia, similar voluntary quality programs have been established with the help of
government agencies. They are abbreviated such as SALM, SPLAM, SALT, SOM and
so on. Such abbreviations do not have the direct connotation on quality for easy
interpretation by the enterprise in the market place. For uniformity and easy
understanding, the agencies that are implementing the consumer quality programs
should be thinking of changing the abbreviation by depicting the international market
perception and general understanding ( for example, MYGAP).

2.1.3. Traceability

This is a method of developing system and procedures to enable traceability of raw
materials and intermediate and final products.

From J anuary 2005, traceability is required at all levels of the food supply chain in the
EU (General Food Law Regulation). Major importers of fruits into EU have been
implementing this procedure.

Growers Traceability Reference Number- In Malaysia, often an export consignment
consists of fruits collected from many growers. The major importers in Europe insists on
traceability meaning that each grower must have an identity or reference number which
can be traceable in case the consignment is intercepted with residues or pests.

Therefore, traceability will help to screen the grower who has supplied fruits which have
high pesticide residue on them, and action can be taken for individual non-compliance
while the remaining inventory can be released. Further, this procedure will help to
alleviate the problem of rejecting the whole consignment otherwise.

2.1.4. Notification of Non-Compliance of SPS

Quick mitigation of the non-compliance is most essential to ascertain the credibility of the
existing exporters. Generally, the notification of non-compliance is conveyed through the
Consumer protection directorate-general of EU to the Ministry of International Trades
(MITI) representative office in Brussels, Belgium. Sometimes the notifications of non-
compliance do not reach the exporter quickly or effectively and this leads to
misunderstanding and over-reacting in certain situations. So the responsible agency at
the SPS inquiry point should coordinate with the relevant department and the parties
affected immediately after receiving a non-compliance report from (MITI) Brussels. Any
follow up decision made at the ministry or departmental level to rectify the non-
compliance issues need to be conveyed immediately to the EU enforcement authorities
and clients. The quick remedial action will create confidence amongst the regulators and
will help to exporter to proceed with the continuity of the export.
5

General Administrative Infrastructure of SPS
EU
Director General
SANCO
Malaysian International
Trade & Industry (MITI)
In Brussels
National SPS
Committee
??
Ministry of Health
Ministry of Agriculture
MAQIS
National Inquiry Point
Food Safety and
Quality
Control
Department
Department of
Fishery
Department of
Agriculture
Department of
Veterinary
Services
Enterprise
Notification

The figure above shows the general administrative infrastructure of implementation of
Sanitary and Phytosanitary (SPS) in Malaysia. Although administrative structures for
handling notifications of SPS measures, both incoming from EU and other members
and notifications of new measures do exist but they need to be streamlined and
improved for effectively solving of emerging SPS problems.

2.2. Providing Quantity

At the moment, horticulture industry in Malaysia is facing a major crisis. With the palm
oil price exceeding RM 3000 per metric ton, prevalent dieback disease on papaya, ever
increasing cost of production (material and labour), perennial problem of short of air
cargo space with anticipation of further flight route cut, seasonal variation of production,
uncertainty of supply, unavailability of new clones that is accepted by market,
competition form other emerging markets, impact of AFTA, all these will pose great
threat to the industry.

The government through the implementation of Third National Agriculture Policy,
recommended 15 types of fruits (1998). In 2003, based on the Action Plan for The
Balance of Trade (BOT) for agriculture, set a target of 12 fruits.(www.agrolink.moa.my).

Since the implementation of the slogan Agriculture is Business, there is a need to
review on the policy decision on the number of fruit types to be given priority that are
economically viable and have the capacity to produce for export market. The
government should focus on the crops that are strategic to Malaysia.

6

Again with the record breaking experiences of palm oil price in 2007, it will pose a threat
to the horticultural crop expansion in the shorter term. So the BOT plans might not be
materialize due to this golden crop.

2.3. Ensuring Regularity

Certain fruits have been established well in the foreign market. But fluctuating supply
has affected the continuity of demand of the specific product. Some examples are
mangosteen, rambutan and even mango.

Some importers in Netherlands have indicated unfavourable reaction towards Malaysian
exporters as far as regularity is concerned.

2.4. Offering a good price

Price is always a major factor in Market Economy. It is well known fact that, in the
horticulture industry, China is the price maker. At the moment, almost every country has
to compete with Chinas products. Malaysian products are generally assumed to be
more expensive as compared to products from China, Vietnam and Thailand.

3.0 The Role of enterprise within a Market Economy

Within the Market Economy system, an enterprise is bound to innovate, create and
make forecasts. Since consumer food choice is changing rapidly with development, the
various quality attributes indicated by Brunso, Fjord Grunert (2002) such as sensory
attributes, health attributes, health attributes, process attributes and convenience
attributes have already created considerable complexity of consumer choices. In
addition to that, cultural differences further complicate the consumer choice. Towards
this end, an enterprise not only needs information, but it also requires the ability to
analyze them so as to be innovative. Consequently, the quality of the information
received plays a major role in its capacity to make forecasts and continue to compete
and progress.

3.1 Structure of the Retail Market in Netherlands

At the point of preparing this paper, I am unable to get the EU figures on the number of
supermarkets and retail shops dealing with vegetables and fruits. In 2004, there are
5593 supermarket outlets of which 1446 are green grocers in the Netherlands alone
(Source: Facts and Figures of the Dutch Agri-Sector 2006/2007). Green grocers
generally deals with vegetables, fruits, grains and other food items. In term of values, the
total value of fruits and vegetables traded in and on these markets was approximately
3.7 Billion (Fig 1). Fifty-four percent (54%) of the value traded was from supermarkets,
thirty-two percent (32%) was done in flea markets and fourteen percent (14%) was from
green grocers (Source: Frugi Venta Annual Report 2005).

7

Fig 1: The structure of the Netherlands Retail market (2005)

Supermarket
outlets

Euro 2 Billion
Daily/ Flea Market

1.2 Billion
65%
GreenGrocer/Shops/
Fruit/Veg Stalls

0.5 Billion
15%
20%
Source: GfK Consumentenpanel Nederland.
Frugi Venta Annual report 2005

According to GfK Consumentenpanel (report on consumer panel for fruit and vegetables
purchases, 2005), based on the initial six months of trading in 2005, the volume for
supermarket dominated almost eighty-four percent (84%) for vegetables and seventy-
five percent (75%) for fruits, respectively. The dominant position of the supermarket is
also reflected in the table below (Table 1), which indicates the distribution of total fruit
and vegetable sales for individual channels. Additionally, their report indicates a
significant increase in volume per household in 2005 than in 2002. The volume of semi-
processed vegetables (eg. assortment of mixed vegetables such as salad, carrot,
cabbage and leak) continued to grow strongly. There was a seventeen percent (17%)
increase in 1999 and a nine percent (9%) increase in 2002, respectively. Within the
extensive processed vegetable assortment, sales of washed spinach and sliced endive
reached the highest level.

Table 1: Share of volume in purchases of fresh fruit and vegetables for
individual sales channels in the Netherlands

Vegetables Fruit
1st half of 1999 2002 2005 1999 2002 2005
Supermarket 73% 77% 84% 63% 68% 75%
Greengrocer 11% 8% 5% 12% 9% 7%
Home delivery 1% 1% 1% 3% 2% 2%
Open-market 11% 10% 6% 18% 16% 12%
Other 4% 4% 4% 4% 5% 4%

source: GfK Consumentenpanel Nederland.
Frugi Venta Annual report 2005 page 10

8

Furthermore, the report indicates that the vast majority (94%) of prepared products are
sold in supermarkets. However, the sales of prepared fruit have not met the expectations
of buyers and shareholders of the supermarkets and the greengrocers, which was a
mere 4%. Nevertheless, despite the sale of the prepared fruit not meeting the
expectations of their investors, the share of pre-packaged fruit (assortment of different
fruits) and vegetables in total sales continued to rise: Sixty percent (60%) of the
vegetables was pre-packaged compared to fifty percent (50%) in 2002; with fruit, forty-
six percent (46%) was pre-packaged compared to forty-three percent (43%) previously.
Retail packaging is popular from these two marketing strategies: (1) hygiene
(appearance, colour and smell) and (2) labeling to distinguish a product). The report
also indicates that there is a sharp decline in the share of the open-air market.

The enterprises have to decide in which segment of market they would like to pursue
and strategize accordingly.

3.2 Trends in Food Retailing

The changes in retail structure as seen above has influenced the power balance in the
food chain and the competition among retailers. Retailers are already beginning to adopt
proactive marketing strategies by having private labels to indicate their products. This
will influence the buyers that the products having private labels are of high quality and
consequently develop loyalty.

European retailers also giving special importance to traceability of food products within
the distribution network and willingness of suppliers to engage for long-term relationship
with enterprises.

4.0. The Key factors within the Market Economy

The key actors within the market economy are:

The state, whose responsibility is to regulate, and
The enterprise, whose duty is to sell trading products of reliable quality

4.1. Government policy

Government and private sctor should not do the same. Government agencies should not
compete with private enterprises. Government should be the facilitator rather than a
competitor. If the government does compete with enterprises, then there will be a
tendency to have double standards in term of enforcement and implementation of
regulatory rules. This will lead to the lack of confidence on the part of regulators.

The enterprise should strive to improve and innovate so that government can continue to
support based on the credibility of the enterprise rather than the contacts.

9

5.0. Concluding Remarks

Agriculture exports diversified significantly during the last two decades particularly into
high value fresh and processed products fuelled by changing consumer tastes and
advances in production, transport and other supply chain technologies. Quality attributes
are becoming a negotiating instrument.

Trends on food markets favour the development of new products both in the fruits and
vegetable sector with more added value and higher degrees of differentiation. Both
developments in consumer demand and changes in retail industry have created new
opportunities. However, to sustain in the industry, the enterprises should always comply
with the quality requirements.

10

Pengantarabangsaan dan Pengkomersialan Buah-buahan Malaysia: Penilaian
Kesedaran Pengguna, Penerimaan, Sikap dan Citarasa di Pasaran Jepun
oleh
Profesor Dr. Faridah Hj. Hassan (Ketua Penyelidik)
Prof. Madya Dr. Rosidah Musa
J amaliah Mohd. Yusof
J amaluddin Yahaya

Fakulti Pengurusan Perniagaant
Universiti Teknologi MARA
40450 Shah Alam, Selangor,
Malaysia

dengan kerjasama

Lembaga Pemasaran Pertanian Persekutuan (FAMA)
Kementerian Pertanian dan Industri Asas Tani Malaysia

Abstrak
Objektif utama kajian ialah untuk mendapatkan maklumat mengenai
cabaran dan potensi yang akan dihadapi oleh pengeksport buah-
buahan tropikal Malaysia ke pasaran Jepun. Secara spesifik kajian
ini mendalami dan meneliti garispanduan impot dan prosidur sistem
pengagihan pengeluaran segar di Jepun. Penemuan penyelidikan ini
memberi implikasi bahawa prosidur import yang ketat dan undang-
undang perlindungan tumbuhan akan merumitkan pengeksport buah-
buahan tropikal untuk memasuki pasaran di Jepun. Oleh yang
demikian, sekiranya Malaysia ingin berjaya dalam persekitaran
pasaran yang lukratif dan berdayasaing, maka satu penekanan kepada
pengusaha, pengeksport buah-buahan dan agensi kerajaan yang
berkaitan mestilah terlebih dahulu perlu memahami secara implisit
perundangan/peraturan dan juga memahami corak pemakanan
buah-buahan oleh pasaran Jepun. Kaedah penyelidikan ini adalah
melalui focus group dan temuduga in-depth dan laporan rasmi dari
beberapa pentadbir kerajaan, peniaga buah-buahan, pengimport,
peruncit dan konsumer.

Kata kunci: Pengantarabangsaan dan Pengkomersilan, buah-buahan
Malaysia, Kesedaran Pengguna, Penerimaan, Sikap dan Citarasa,
Pasaran Jepun.

Towards Internationalisation and Commercialisation of Malaysian
Fruits: Assessment of International Consumers Awareness,
Acceptance, Attitude and Preferences (Japanese Market)
by
Professor Dr. Faridah Hj. Hassan (Research Leader)
Associate Prof. Dr. Rosidah Musa
J amaliah Mohd. Yusof
J amaluddin Yahaya

Faculty of Business Management
Universiti Teknologi MARA
40450 Shah Alam, Selangor,
Malaysia

In collaboration with

Federal Agricultural Marketing Authority (FAMA)
Ministry of Agriculture and Agro-based Industry Malaysia

Abstract
The main purpose of this paper is to illuminate the challenges and
potentials that might be faced by the exporter of Malaysians tropical
fruits into the Japanese market. Specifically the study aims to impart
importing guidelines and procedures and distribution system for fresh
produce in Japan. The key findings of the research imply that the
stringent importing procedures and plant protection regulations may
discourage the exporters of tropical fruits to penetrate the market.
Hence, if Malaysia is to succeed in this competitive yet lucrative market
environment, it is imperative that farmers, fruit exporters and relevant
government agencies understand implicitly the aforementioned
regulations and understand the pattern of fruit consumption among
the Japanese. The research methods utilized in the study were via focus
group and in depth interview and official reports from several
government authorities, fruit traders, importers retailers and
consumers.

Key Words: Internationalization and Commercialization, Malaysian
fruits, Consumers Awareness, Acceptance, Attitude and Preferences,
Japanese Market

Introduction

The agriculture sector has contributed significantly to the growth and development of
the Malaysian economy hence, it is appropriate for the agriculture and food sector to be
boosted as the third engine of Malaysias economic growth. In fact, Malaysia quest to
be a net exporter of food by 2010, and seriously reinventing its agriculture sector. To
ensure that this sectors contribution to the national economy and its global
competitiveness remain strong in future, the Third National Agricultural Policy (NAP3)
has been formulated. The NAP3 covers the period 1998 to 2010, which was set out as a
framework for the agricultural sector future growth and continue to sustain as an
important sector in the economic development of the country. The Policy was largely
guided by the objectives and strategies of the National Development Policy and
incorporates several strategies and action plans to deal with expected challenges and
changes to the international economy.

It was reported that the markets for agricultural produce such as local fruits are
experiencing stiff competitive environment domestically, particularly during the fruit
season. As such, it is envisaged that developing new markets such as penetrating
challenging market such as Japan for fruits could promise significant contribution
of the agricultural sector to export earnings. This effort could facilitate and assist to
realize this countrys aim to increase its agricultural products export value to RM17.2
billion by 2010 (Federal Agricultural Marketing Authority, 2005). Malaysia is a producer
of a wide range of tropical fruits such as pineapple, banana, mango, rambutan, durian,
mangosteen, jack fruit, star fruit just to name a few.

Although the world market for tropical fruits is growing, Malaysias share in the
overall international fruit trade is relatively insignificant. Nonetheless some
interesting prospects for future development of tropical fruits in J apan have been revealed
(Miyauchi & Perry, 1999). Hence, it is timely for Malaysia to examine the export market
potential for its fresh tropical fruits into the J apanese market.

J apan is considered as one of the largest market in the world. Being the worlds
biggest importer for primary produce such as rice, wheat, soy bean, beef, fish, prawn, and
animal feed (Miyauchi & Perry, 1999), its market for fresh fruit is relatively
undeveloped. Furthermore, it was reported that the Japanese fruit growers satisfied
only 60 percent of the market demand (Japan Trade Directory, 2005). Thus it offers
a promising opportunity for foreign importers.

J apan itself produces fresh fruits such as pears and persimmon for their own
consumptions. In fact, J apan is the third major producer for persimmon after China and
Brazil (J apan Trade Directory, 2005). A wide variety of fresh fruits are imported to
Japan, and most common one are bananas, pineapples, oranges, grapefruits and
mangoes. With a strong economic background of Japanese households, the demand
for other fresh fruits keeps on increasing (Japan Trade Directory, 2005). It was
noted by Miyauchi & Perry (1999), the volume of the imported fruits is declining, but the
variety of imported fruits and consumption of new and foreign tropical fruit is increasing.

This reflects that the J apanese consumers desire for variety in the fresh fruits category.
With regards to fresh fruits imports, among the principle exporters are the USA for
oranges, grapefruits, lemons and limes and papayas. While New Zealand is the key
exporter for kiwifruits, Philippines is the major exporter for bananas, pineapples and
mangoes (J apan Trade Directory 2005). The domestic production has run at 3.0 3.2
million tons a year whilst imports share of total fresh fruit supply is approximately 35
percent, about 1.6 million tons (c.f. J apan Trade Directory, 2005).

Problem Statement

Even though it is an attractive avenue to embark on export marketing
(internationalization) specifically lucrative market such as J apan, however, tremendous
amount of effort, time and money have to be invested to implicitly understand the
market and ultimately gaining market accessibility. Therefore, a thorough
knowledge of the importing procedures and the Japanese distribution system and
business practices as well as Japanese fruit consumption behavior is imperative in
order to gain market accessibility successfully. Importers might face a tremendous
challenge as Japanese market is very different in terms of plant protections laws,
distribution system and the Japanese fruit consumption as compared to other
cultures. Despite the aforementioned issues, very little research has been carried out to
enrich our insights of the knowledge gap. In respond to this rationale, this paper attempts
also to explore what are the critical challenges and potentials of importing fresh tropical
fruits into the J apanese market.

Research Objective

Generally this study is to explore and identify the challenges and market potentials in
exporting fresh fruits and commercializing it in J apanese market. Specifically, the
research aims to gain insights of the legal regulations and administrative procedures
in importing fresh fruits and understand the J apanese distribution system of fresh fruits
and business practices and J apanese fruit consumption behavior. Ultimately, the fresh
fruit business potentials offers by the market will be identified.

In brief the research objectives are:

Assess the awareness level, acceptance, attitude and preferences of the
J apanese consumers on Malaysian fruits.

Gain insights of the importing procedures and imported plant protection
procedures for fresh fruits in the focused country.

Examine implicitly the distribution system for exporting fresh fruits to Japan.

Propose Action Plans for Market Accessibility of Malaysian fruits into
J apanese market.

Research Design

Two stages approach were used in this study. Firstly, focus group discussion was
conducted in Malaysia with relevant exporters, agents, representatives Ministry of
Agriculture and Agro-based Industry, Federal Agriculture Marketing Authority (FAMA)
and J apanese Embassy. The main objective of the focus group session was to
understand the current rules and regulations in importing fresh fruits to Japan and
to gain some insights from panels that have vast experience in exporting fresh fruits
to Japan.

Secondly, several in depth interviews were conducted in J apan with relevant key
officers of various fruit-related organizations such as the Import Promotion Department
of the J apanese External Trade Organization (J ETRO), the import agents and wholesaler
of fresh fruits and also Fresh Produce Import Facilitation Association in J apan. Beside
this, relevant information was also obtained from official reports published in J apan and
Malaysia and observations from field visits.

The in-depth interviews with the J apanese authorities were conducted during 7 19
October 2006 in various cities in J apan which include Osaka, Nagoya, and Tokyo. In
addition, the research members visited several hypermarkets and supermarkets in these
cities to observe the fresh fruits available with regards to its varieties, prices, quality,
packaging, and their country of origin. Meetings with the relevant companies top
management and top official of Tottori University and Wakayama University in Osaka
were arranged by our research assistance in J apan. Company representatives from
Nagoya came to Tokyo to be interviewed. Three consumer surveys were conducted in
Tottori and Wakayama University and J apanese Club, in Kuala Lumpur.

The interviews were conducted between 10
th
October 2006 until 19
th
October 2006 in
three major cities in Osaka, Nagoya, and Tokyo. On 10
th
October, an interview was held
in Wakayama University in Osaka with the President, Vice President and also other top
management of the University. On 11
th
to 12
th
October, 2006, the researchers attended
seminar on agriculture organized by Tottori University. Most of the papers presented
were mainly about the demand and supply of fresh fruits in J apan market. During the
seminar, our research team distributed structured questionnaires to the students and
lecturers who attend this seminar. The main purpose of this survey was to explore their
preferences and awareness of J apanese of Malaysians tropical fruits.

While in Tottori we were also invited to attend a meeting organized by J apanese
Agriculture Association (J AA). We took this opportunity to interview the officers about
the potential of exporting Malaysians fruits in the J apanese market. We were also
furnished with important reports pertaining to the value of export and imported fruits in

J apan. Subsequently, after the meeting we were invited to visit the pear (nashi)
plantation. Tottori is well known as the biggest producer of quality nashi in J apan. We
were also given the opportunity to visit J AA biggest fruit collection centre, where the key
workers are the nashi farmers themselves. We were amazed by the high technology
instruments that the factory employed in order to grade and pack the fruits.

On 14
th
October, the researchers traveled southbound to Toyokawa, Nagoya where a
meeting was conducted with the packaging manufacturer. During the visit we were given
the opportunity to witness the latest packaging material and technology used by the
factory.

In Tokyo, we met with distributors, trading companies, importers, executives of J usco,
J apan Fresh Produce Import and Safety Association, Ministry of Agriculture, Forestry
and Fisheries, J apan External Trade Organization, the OTA Fruit Auction Market and
also the fruits parlour.

Research Findings

According to the import agents, most of the fruits import source is from U.S which
constitutes about 30% of the total imports. In 2004, Malaysia falls on 21
st
place in terms
of ranking for importing the fresh fruits into J apan. It was also stated that the
opportunities for exporters to import the fresh fruits into Japan are great if they
could produce good quality fruits. It was revealed that most of the foreign fruits are
imported by traders. Starting from May 2006, the Japanese government has
imposed stringent regulations to the suppliers of imported fresh fruits into Japan.
The chemical content of the fruits has to be reported in order to check against the
Japanese positive chemical listing. Due to this stringent traceability protocol recently
J apan managed to detect traces of prohibited pesticides in the fresh fruits, particularly
mangos from India.

According to the importers, it is particularly very difficult to import fresh fruits to
J apan. There are only a few suppliers or traders who are able to import the fresh fruits.
The critical issue of importing fresh fruits has been quality and also the present of
fruit fly. The importing agents experience with Thailand with these two issues on the
imports of mangosteen has made them changed their importing strategy. They import
another fruit instead, which is mango originated from India. As such, this will create stiff
competition among fresh mango which already available in the J apanese market. It was
observed that only those traders who follow strictly the rules and regulation of importing
foreign fruits would be able to supply the fresh fruits to J apan. Nevertheless, mangosteen
is identified as a fruit with potentials. The external and internal appearance, size
and sweetness of mangosteen are among the criteria of the fruit choice of the
Japanese. However, the importers must ensure that the shell of the fruit must be in
good condition as any scratch on the skin is regarded as damaged.

It is also stated that it is not a J apanese culture to eat freeze-dry fruits, but fruits are
generally used as toppings. For the traders, price is a factor that determines if the traders
are willing to import the frozen fruits. For the processed fruits like juice, the challenge
lies in the life span of the juice itself which generally is only about two weeks in the
convenient stores. As to date, J apan is working with traders in Thailand and Philippines
for juices. Other processed fruits-based food which is gaining its popularity among the
J apanese is mango pudding which mainly imported from Singapore. Apart from the life
span, the lead time is also another issue that must be addressed if traders plan to export
the processed fruits into J apan.

From the interview with two leading supermarkets (AEON and HANAMASA), it was
unveiled that they imported quite a number of frozen fruits. For example, rambutan,
mangosteen, dragon fruit and durian in frozen form were imported from Thailand. Other
frozen fruits like pineapple were imported from Taiwan and grapes were from Chile.
There is a high demand for frozen mango and pineapple fruits but there is a low
acceptance for dragon fruits. The main reason for its unpopularity is because the fruit is
considered new and most consumers do not know how to eat it. Again, the issue of
quality and lead time can impede the opportunities for imports by the traders.

With another interview with the supermarket, it is found that customers
generally enjoy eating fresh fruits, but they are lazy to peel off the skin. These
customers prefer processed fruits such as pudding and juices. This has resulted in a
reduced demand for fresh fruits that the supermarket has reduced in its imports for fresh
fruits. Furthermore, the supermarkets were facing problems on their imported fruits
as black spots were found on most of the fruits. Apart from that, they also had
delivery period issue where most traders could not comply with the earlier agreement on
delivery date. It is important that the fruits must be delivered timely in order to
maintain its sweetness. Other processed fruits which have gained popularity are the
mango jelly and also the mango pudding. Besides the normal consumption by the
consumers, they are used by the restaurants. Among the fresh fruits imported by this
supermarket are the papaya, mangosteen, durian and mango which are regarded as the
next popular fruits sold by this supermarket. In order to maintain its freshness and
sweetness, the fruits have been kept in the cold room in the region where the outlets are
located. Any damaged fruits will be covered by the insurance. The sales volume for the
tropical fruits has been about 2 million yen per year (J apan Trade Directory, 2005)

Looking into the possibilities of importing the fresh fruits into J apan, one importer
mentioned about the import quarantine procedure (see Appendix A). In such a case,
the exporters have to establish a protection method where the fruits have to be
frozen at -17.8C or have to go for vapour heating treatment (fumigation method) in
order to eliminate fruit flies. So far, such prohibition has been lifted on Philippines
mango and other fruits as they have set up the vapour heating treatment facility. The
importers used to import green bananas from Malaysia as this fruit is not in their
prohibition list. It is found that durian is also not in their prohibition list, however,
the smell that the Japanese consumers do not like refrain such fruits from coming
into Japan.

The Association of the importers highlighted on the importance and requirement of
the import quarantine procedures by J apan. In such a case, any countries who would
like to import their fruits into Japan, they have to develop a quarantine method to
protect the fruits. So far, among the Asian countries, Thailand was among a successful
one after they developed the quarantine method and technology that is required by J apan.
The diagram of import quarantine procedures is depicted in (see Appendix A).

Another importer also mentioned about the requirement for the vapour heating
treatment. Different fruits would require different temperature for the heating treatment.
It is advisable for the exporters to focus on one fruit only if they would like to bring
into Japan. This is because it is more cost effective. In addition, the exporters are also
advised to be careful with fruits for import into J apan in order to ensure marketability.
Some of the interesting fruits that are likely to have good demand by the Japanese
consumers are mango, papaya, lychees, and mangosteen. Currently, Japan is
importing about 12,000 tons of mangoes from many different countries. However, it
was emphasized that fruit like yellow pittaya has been banned from coming into J apan
except for frozen ones.

From our meeting with the fruit wholesalers, it was reported that they mostly handle
the local fruits. Imported fruits such as banana and pineapples from Philippines,
grapefruits from U.S and South Africa, oranges from U.S, kiwi from New Zealand and
avocado from Mexico are also imported and distributed by the wholesalers. It was
mentioned that banana is the J apans flagship fresh fruit import, which account majority
of total fruit import. The Japanese believe that bananas are good for the brain
development besides other nutrients which are good for health. For the past three
years, importing of mango has increased in volume, this suggest that demand for it
continue to grow steadily. However, it was emphasised that if Malaysia is to import
their fresh fruits into Japan, they have to abide with the positive list to trace the
chemical residue of the fruits.

Fruits are used as a gift by the Japanese consumers besides consumed as dessert.
In Tokyo, they also have an opportunity to eat the fresh fruits in a more luxurious
way such as the fruit parlour. The fruit parlour (Sembikiya Millionaires Club in
Ginza area) serves among the best quality fruits. Interestingly, the fruits are
displayed in very attractive packaging. They are either consumed in the parlour
itself or take away as a gift.

According to the J apan External Trade Organization, Japan has imported fruits like
avocado and papaya because these two fruits are not produced in Japan. Other
fruits which have high potential among the Japanese consumers are mango and
rambutan. Again, it requires the vapour heating treatment; otherwise Malaysia has
to consider exporting the frozen fruits instead. J apan is also considering importing
bananas from the Asian countries since bananas do not require for the vapour heating
treatment.

Conclusions

Challenges

J apan has very stringent procedures for fresh fruits to be imported, such as Plant
Protection Law and the Food Sanitation Law. The J apanese quarantine system for
imported plants consists of prohibition of import, designation of port of import,
phytosanitary certificates issued by the exporting countries and import inspection. Under
the Plant Protection Law, any importer of fresh fruits shall submit an Application for
Inspection of Plants and Import Prohibited Articles to designated port of entry. In
addition, Phytosanitary Certificate must be issued by reliable and competent
government agency of the exporting country and attached to all quarantine-
designated plants. Imports of host fresh fruits are prohibited from countries or
areas where certain destructive insects and diseases include fruit flies. Because of
such stringent compliance to the plant protection procedures, only a few suppliers or
exporters are able to import their fresh fruits into J apan. In most case, more than 90
percent of any fresh fruit comes from a single country or region (J apan Trade Directory,
2005). In fact, via Government to Government Trade Agreement, Malaysia has applied
for the lifting of ban of its special mango variety. The procedure for lifting the ban
comprises of 13 steps (see Appendix B).

Starting from May 2006, the J apanese government has imposed new regulations to
the exporters. There are many fresh fruits which are prohibited to be imported under the
Plant Protection Law. This law requires the fruits to be frozen at -17.8C or these
fruits have to go through the vapour heat treatment (VHT). The reason for the
treatment is to eliminate fruit flies which could damage the quality of the fruits. Different
fruits would require different temperature for the vapour heating treatment. It is advisable
for the exporters to apply for lifting of ban for one fruit initially as a gateway to other
fruits into J apan (see Appendix B). This is because it is more cost effective in order to
deal with the stringent importation protocol.

Another challenge facing the exporters is in terms of the price. Since there are so
many exporters from many different countries competing to penetrate into the J apanese
market, price becomes a critical issue. It is pertinent for fruit exporters to carefully
and clearly position their fruits in terms of uniqueness and nutritious value in order
to compete and established its position against others tropical fruits from other
countries.

J apanese consumers emphasis on the quality can be seen even in their selection of
the skin of the fruits. The fruits skin must be free from any scratch as any scratch on
the skin is regarded as damaged and low quality. The fruits should also be free from
any black spots.

Furthermore, J apanese are very particular about fruit presentation, therefore in order
to be successful in this market; fruits must be packaged in an attractive packaging. On top

of being attractively packaged and displayed, effective packaging technology should
be innovated to assure fruit quality can be maintained.

More importantly, the J apanese importers are very concerned of the exporters
ability in supplying the fruits in a consistent and reliable manner to fulfill the
market demand.

With regard to processed fruits which are gaining in popularity in J apan, the exporters
are subjected to provision of Food Sanitation Law, meeting quality standards and
labelling requirement. Besides these procedures, importers must handle the issue of
shelf life span and also the lead time to ensure product quality. In addition, fruit
processors should attempt to maintain the processed fruits appearance and taste as
close as the fresh one.

Potentials

J apans population of 124 million is considered wealthier and larger than those of
other countries. In fact, Japan is the worlds second largest market economy after
USA. Furthermore, J apan represents one of the most important markets for many fruit
exporters around the world (Shim, Gehrt & Lotz, 2001).

Over 95 percent of total import volume of fresh fruit to J apan comprises of five fruit
pineapples, bananas, lemons, oranges and grapefruit (J apan Trade Directory, 2005). It
was reported that the volume of these fruits is declining. However, the variety of
imported fruits and consumption of new and foreign tropical fruit is increasing
(Miyauchi & Perry, 1999). This reflects that the Japanese consumers desire for new
variety or higher quality fruits in the fresh fruits category, while some are looking
for unique tropical and exotic foreign fruit such as mangoes. Previous research
revealed that the deterrent factors of buying mangoes in J apan are due to unavailability
and lack of knowledge (Miyauchi & Perry, 1999). However, during our visit in J apan
(J une 2007), it was observed that mangoes become one of the most popular fruit in J apan
currently.

Fresh fruits are not only an important part of the J apanese diet, but more importantly,
fruit consumption is associated to its social and cultural practices. For instance, fruit is
considered a luxury item and play an important and elaborate ritual part in Japans
extensive gift-giving practices (Shim, Gehrt & Lotz, 2001). Indeed, fruit competes not
with vegetables but with high-price gift items or sweets and snacks (Gehrt & Shim,
1998). With a strong economic background of their households, the demand for other
fresh fruits keeps on increasing.

The Japanese consumers are generally not price sensitive in their consumption
for fresh fruits and apparently willing to pay a premium price for fruit (Shim, Gehrt
& Lotz, 2001), making it attractive to Malaysian exporters. This will be realized as long
as potential exporters understand the J apanese consumers unique orientation, such as

concerned for product safety and aesthetics. It should be noted that J apanese consumers
are conscious about brands and thus brands play an important role in their shopping
orientation. Strong brand recognition of local produce is likely to be a significant key
to global market. In this respect, Ministry of Agriculture and Agro-based Industry has
introduced the Malaysia Best logo. Notably, Dole has successfully captured and
established its brand in J apan.

It should be highlighted that, if the fruits experience difficulty to be imported fresh,
another option is to be imported as processed fruits, such as juice, jam, dried fruit or
frozen fruit. Besides the fresh fruits, the processed fresh-fruit based is also gaining in
popularity. Among the popular ones are the mango pudding and also fruit juice.
However, it must be noted that the taste of frozen fruits are significantly different from
fresh one. The fresh fruits are apparently more juicy and sweeter.

Currently, there are a few supermarkets in J apan that have imported the tropical fruits
such as durian, mangosteen, dragon fruit and also rambutan, which are predominantly
from Thailand. The fruits that have good potentials in the Japanese market would be
mangosteen, because of its interesting exterior and interior appearance, size, and
also unarguably its sweetness. Currently, mangoesteen has been imported primarily
from Thailand. However, the importers must ensure that the fruits must look fresh as any
scratch found on the skin of the fruits will be considered as damaged. Other fruits which
have high potentials are the bananas and also durian because these two fruits are not in
their prohibition list. It was recognised that the Japanese consumers dislike the strong
smell of the durian and if Malaysia plans to export its durian, obviously it has to be
of the odourless variety. In addition, the potential of mango must not be overlooked.
From our field observation and consumer acceptance survey, it was unveiled that
J apanese have very favorable attitude towards mango and most likely to purchase it
whenever available in the market. Furthermore, it was also rated as respondents
favourite tropical fruit when assessed against mangosteen, rambutan, durian, star fruit and
jack fruit. Perhaps mango comprises of the fruit attributes that match the Japanese
taste preference which are sweet and juicy. In conclusion, we envisage that mango is
the most promising fruit to be marketed into the Japanese market, which is in line
with the consumer preference and the market demand.

References

Gehrt, K. C., & Shim, S. (1998). The role of fruit in the J apanese gift market:
Situationally defined market. Agribusiness, 14(5), 389-402.

J apan Trade Directory (2005). Bibliography on Rules and Regulations.

J apanese External Trade Organization (1998), Marketing Guidebook for Major Imported
Products.

Miyauchi, Y., & Perry, C. (1999). Marketing fresh fruit to J apanese consumers: exploring
issues for Australian exporters. European Journal of Marketing, 33(1/2), 196.

Shim, S., Gehrt, K., & Lotz, S. (2001). Export implications for the J apanese fruit market:
fruit-specific lifestyle segments. International Journal of Retail & Distribution
Management, 29(6), 300-316.

International Plant Protection Convention (New Revised Text) November, 1977.

Matsuda, T. (2006). Consumer demand for fresh fruits in J apan: Tottori University.

AgExporter. (March, 1995). Quality is key to J apan's fruit, vegetable market.

Available: http://www.famaexchange.org (Accessed 10 J uly 2006)

Appendix A: Diagram of import quarantine
procedure

Free from quarantine pests
Inspection passed
Entry refused
Reshipment Destruction Disinfestations
Issue of plant quarantine certificate
Quarantine pests detected
Import inspection
Application for import plant inspection

Appendix B: Procedures For Lifting The Ban of Importation

1) Request for lifting the ban of importation from
2) Submission a plan of experiment of research by
3) Examination of the plan by J apanese experts
4) Development of disinfestations method or research
for pest free area
5) Submission the data of experiment or research by
6) Examination the data by Japanese experts
7) Submission the plan of verification testing or
research by exporting country

8) Examination the plan by Japanese experts
9) Conducting the verification testing by J apanese
10) Submission the data of verification testing by
exportingcountry

(Explanation meetings for domestic producer if necessary)
12) Gathering the public comments and conducting
the public hearing
Insufficient
Insufficient
Insufficient
Insufficient
11) Examination the data by J apanese experts

13) Amendment the regulation (Lifting the ban of
importation)

APPENDIX 1: LEVEL OF ACCEPTANCE ON MALAYSIAN FRUITS BY JAPANESE

( (

( (

1 1. .7 76 6
2 2
2 2. .1 17 7
2 2. .2 24 4
2 2. .2 29 9
2 2. .3 3
2 2. .4 44 4
2 2. .5 5
2 2. .5 54 4
2 2. .7 7
3 3. .2 22 2
M Ma an ng go o ( (/ / ) )
M Ma an ng go os st te ee en n
P Pa am me el lo o
D Dr ra ag go on n f fr ru ui it t
P Pi in ne ea ap pp pl le e
L La an ng gs sa at t
S St ta ar r f fr ru ui it t
P Pa ap pa ay ya a
R Ra am mb bu ut ta an n
D Du ur ri ia an n x x) )
J J a ac ck k f fr ru ui it t x x) )
M Me ea an n ( ( 1 1 = = h hi ig gh h l le ev ve el l a ac cc ce ep pt ta an nc ce e
5 5 = = l lo ow w l le ev ve el l a ac cc ce ep pt ta an nc ce e) )
L Le ev ve el l o of f a ac cc ce ep pt ta an nc ce e i in n t te er rm ms s o of f F FR RU UI I T T S SI I Z ZE E

1 1. .4 47 7
1 1. .5 54 4
1 1. .5 58 8
1 1. .6 65 5
1 1. .9 9
2 2. .1 1
2 2. .2 2
2 2. .3 32 2
2 2. .4 41 1
2 2. .5 53 3
3 3. .0 04 4
M Ma an ng go o ( (/ / ) )
P Pi in ne ea ap pp pl le e
S St ta ar rf fr ru ui it t
P Pa am me el lo o
L La an ng gs sa at t
P Pa ap pa ay ya a
J J a ac ck kf fr ru ui it t
D Du ur ri ia an n ( (x x) )
D Dr ra ag go on n f fr ru ui it t ( (x x) )
M Me ea an n ( (1 1 = = h hi ig gh h l le ev ve el l a ac cc ce ep pt ta an nc ce e; ; 5 5 = = l lo ow w) ) L Le ev ve el l o of f a ac cc ce ep pt ta an nc ce e i in n t te er rm ms s o of f I I N NT TE ER RN NA AL L F FR RU UI I T T C CO OL LO OR R

L LE EV VE EL L O OF F A AT TT TI I T TU UD DE E O ON N M MA AL LA AY YS SI I A AN N F FR RU UI I T TS S B BY Y J J A AP PA AN NE ES SE E
1 1. .4 4* *
1 1. .6 68 8
1 1. .8 87 7
2 2. .6 62 2
2 2. .8 82 2
2 2. .9 96 6
M Ma an ng go o* * ( (/ / ) )
J J a ac ck k F Fr ru ui it t
D Du ur ri ia an n
S St ta ar r f fr ru ui it t ( (x x) )
M Me ea an n ( (1 1 = = F FA AV VO OR RA AB BL LE E
5 5 = = U UN NF FA AV VO OR RA AB BL LE E) )
F Fa av vo or ra ab bl le e: :
1 1. .4 46 6* *
1 1. .5 59 9
1 1. .8 8
2 2. .8 85 5
2 2. .9 91 1
3 3. .1 1

M Ma an ng go o* * ( (/ / ) )
J J a ac ck k f fr ru ui it t
D Du ur ri ia an n
S St ta ar r f fr ru ui it t ( (x x) )

M Me ea an n ( (1 1 = = L LI I K KE E ; ; 5 5 = = D DI I S SL LI I K KE E) ) L Li ik ke e i it t v ve er ry y m mu uc ch h: :

LEVEL OF LEVEL OF PREFERENCE PREFERENCE

OF MALAYSI AN OF MALAYSI AN
FRUI TS FRUI TS
48.4* 48.4*
21.5 21.5
9.7 9.7
8.6 8.6
7.5 7.5
4.3 4.3
Mango* (/ ) Mango* (/ )
Mangosteen Mangosteen
Rambutan Rambutan
Durian Durian
Starfruit Starfruit
J ackfruit (x) J ackfruit (x)
Percentage Percentage Favorite Favorite fruit: fruit:
48.4* 48.4*
21.5 21.5
9.7 9.7
8.6 8.6
7.5 7.5
4.3 4.3
Mango* (/ ) Mango* (/ )
Mangosteen Mangosteen
Rambutan Rambutan
Durian Durian
Starfruit Starfruit
J ackfruit (x) J ackfruit (x)
Percentage Percentage Favorite Favorite fruit: fruit:
44* 44*
31 31
2 2
1 1
Sweet* (/ ) Sweet* (/ )
J uicy (/ ) J uicy (/ )
Crunchy Crunchy
Convenient to prepare Convenient to prepare
Percentage Percentage Reason: Reason:
44* 44*
31 31
2 2
1 1
Sweet* (/ ) Sweet* (/ )
J uicy (/ ) J uicy (/ )
Crunchy Crunchy
Convenient to prepare Convenient to prepare
Percentage Percentage Reason: Reason:

P PU UR RC CH HA AS SE E B BE EH HA AV VI I O OR R B BY Y J J A AP PA AN NE ES SE E M MA AR RK KE ET T
3 33 3. .3 3* *
3 31 1* *
2 26 6
7 7. .1 1
T Tw wi ic ce e a a w we ee ek k* * ( (/ / ) )
3 3 t ti im me es s a a w we ee ek k* * ( (/ / ) )
O On nc ce e a a w we ee ek k
4 4 t ti im me es s a a w we ee ek k
P Pe er rc ce en nt ta ag ge e F Fr re eq qu ue en nc cy y o of f p pu ur rc ch ha as si in ng g f fr ru ui it ts s i in n a a w we ee ek k
1 1. .0 01 1* *
2 2. .2 27 7
2 2. .3 35 5
3 3. .3 30 0
3 3. .4 44 4
3 3. .4 48 8
M Ma an ng go o* * ( (/ / ) )
J J a ac ck kf fr ru ui it t
D Du ur ri ia an n
S St ta ar rf fr ru ui it t ( (x x) )
P Pe er rc ce en nt ta ag ge e F Fr ru ui it ts s l li ik ke el ly y t to o b be e p pu ur rc ch ha as se ed d

APPENDIX 2
APPENDIX 2
G Gu ui id de el li in ne es s f fo or r t th he e D De ev ve el lo op pm me en nt t o of f H He ea at t D Di is si in nf fe es st ta at ti io on n T Tr re ea at tm me en nt ts s o of f F Fr ru ui it t
F Fl ly y H Ho os st t C Co om mm mo od di it ti ie es s ( (A As si ia a a an nd d P Pa ac ci if fi ic c P Pl la an nt t P Pr ro ot te ec ct ti io on n C Co om mm mi is ss si io on n
R Re eg gi io on na al l S St ta an nd da ar rd d f fo or r P Ph hy yt to os sa an ni it ta ar ry y M Me ea as su ur re es s) )

T Th he e A AP PP PP PC C R Re eg gi io on na al l S St ta an nd da ar rd d f fo or r P Ph hy yt to os sa an ni it ta ar ry y M Me ea as su ur re es s w wa as s e en nd do or rs se ed d
b by y t th he e 2 23 3r rd d S Se es ss si io on n o of f t th he e A AP PP PP PC C h he el ld d o on n 4 4- -8 8 A Au ug gu us st t 2 20 00 03 3 i in n K Ku ua al la a
L Lu um mp pu ur r. .

P Ph hy yt to os sa an ni it ta ar ry y m me ea as su ur re es s a ar re e o of ft te en n r re eq qu ui ir re ed d f fo or r i im mp po or rt te ed d c co om mm mo od di it ti ie es s t to o
p pr re ev ve en nt t t th he e i in nt tr ro od du uc ct ti io on n o of f q qu ua ar ra an nt ti in ne e p pe es st ts s. .

P Ph hy yt to os sa an ni it ta ar ry y m me ea as su ur re es s a ar re e n no or rm ma al ll ly y d de ev ve el lo op pe ed d o on n a a c co ou un nt tr ry y/ /
c co om mm mo od di it ty y/ /p pe es st t s sp pe ec ci if fi ic c b ba as si is s t th hr ro ou ug gh h a a p pr ro oc ce es ss s o of f b bi il la at te er ra al l n ne eg go ot ti ia at ti io on n
b be et tw we ee en n t th he e N Na at ti io on na al l P Pl la an nt t P Pr ro ot te ec ct ti io on n O Or rg ga an ni iz za at ti io on ns s ( (N NP PP PO Os s) ) o of f t th he e
i im mp po or rt ti in ng g a an nd d e ex xp po or rt ti in ng g c co ou un nt tr ri ie es s. .

T Th he e p pu ur rp po os se e o of f t th he e s st ta an nd da ar rd d i is s t to o p pr ro ov vi id de e a a s so ou un nd d b ba as si is s f fo or r A AP PP PP PC C
m me em mb be er r c co ou un nt tr ri ie es s w wh he en n d de ev ve el lo op pi in ng g h he ea at t d di is si in nf fe es st ta at ti io on ns s t tr re ea at tm me en nt t
a ag ga ai in ns st t q qu ua ar ra an nt ti in ne e f fr ru ui it t f fl li ie es s i in n h ho os st t c co om mm mo od di it ti ie es s. .

T Th he e d de ev ve el lo op pm me en nt t o of f a a h he ea at t d di is si in nf fe es st ta at ti io on ns s t tr re ea at tm me en nt t i in nv vo ol lv ve es s a a n nu um mb be er r
o of f s st te ep ps s. .

C Co on nf fi ir rm ma at to or ry y t tr ri ia al ls s t to o d de em mo on ns st tr ra at te e t th he e e ef ff fi ic ca ac cy y o of f t th he e t tr re ea at tm me en nt t t to o t th he e
l le ev ve el l r re eq qu ui ir re ed d b by y t th he e i im mp po or rt ti in ng g c co ou un nt tr ry y

T Th he e c co on ns si id de er ra at ti io on n o of f o ot th he er r f fa ac ct to or rs s t th ha at t r re ed du uc ce e t th he e r ri is sk k o of f e en nt tr ry y a an nd d
e es st ta ab bl li is sh hm me en nt t m ma ay y a al ll lo ow w t th he e h he ea at t d di is si in nf fe es st ta at ti io on ns s t tr re ea at tm me en nt t t to o b be e u us se ed d a as s
a a c co om mp po on ne en nt t o of f a a s sy ys st te em ms s a ap pp pr ro oa ac ch h. .

APPENDIX 3
U Us si in ng g 4 4 A AC CT TI I O ON N P PL LA AN NS S : :- -

1 1. . A Ac ct ti io on n p pl la an n 1 1 - - P Pr ro od du uc ct ti io on n
P P e e & & P Po os s H Ha ar rv ve es s M Ma an na ag ge em me en nt t
2 2. . A Ac ct ti io on n p pl la an n 2 2 - - L Lo og gi is st ti ic c / / s su up pp pl ly y c ch ha ai in n
S Sh ho ow wa a B Bo oe ek ki i C Co o. .
3 3. . A Ac ct ti io on n p pl la an n 3 3 - - R Re eg gu ul la at ti io on ns s (7 13 steps)
4 4. . A Ac ct ti io on n p pl la an n 4 4 P Pr ro od du uc ct t ( (Positionin

S ST TR RA AT TE EG GI I E ES S T TO O P PE EN NE ET TT TR RA AT TE E
J J A AP PA AN NE ES SE E M MA AR RK KE ET T

t t t t

r r
g, Packaging,
Promotion, Branding, Price, Timing)

1. ACTION PLAN 1 - PRODUCTION

P
P
R
R
O
O
D
D
U
U
C
C
T
T
I
I
O
O
N
N
T
T
A
A
R
R
G
G
E
E
T
T

2 20 00 0 1 15 50 0 1 10 00 0 - -
E EX XP PO OR RT T M MA AR RK KE ET T ( (m me et t. . t to on ns s ) )
4 40 00 0 4 40 00 0 3 38 80 0 4 41 16 6 L LO OC CA AL L M MA AR RK KE ET T ( ( m me et t. . t to on ns s ) )
6 60 00 0 5 55 50 0 4 48 80 0 4 41 16 6 P PR RO OD DU UC CT TI I O ON N ( ( m me et t. . t to on ns s ) )
2 20 01 10 0 2 20 00 09 9
2 20 00 08 8
2 20 00 07 7 Y YE EA AR R

2 2. . A AC CT TI I O ON N P PL LA AN N 2 2 L LO OG GI I S ST TI I C CS S/ / S SU UP PP PL LY Y C CH HA AI I N N
W Wo or rk k w wi it th h i im mp po or rt te er rs s t th ha at t p pr ro ov vi id de e i in nt te eg gr ra at te ed d
a ac ct ti iv vi it ti ie es s s su uc ch h a as s t th he e u up ps st tr re ea am m a ac ct ti iv vi it ti ie es s ( (p pr ro od du uc ct ti io on n
i in n o or rd de er r t to o o ob bt ta ai in n a ac cc ce ep pt ta ab bl le e q qu ua al li it ty y g go oo od d t ta as st te e, ,
f fr re es sh hn ne es ss s, , w we el ll l c co on nt tr ro ol ll le ed d m ma at tu ur ri it ty y- - f fo or r J J a ap pa an ne es se e
m ma ar rk ke et t) ) a an nd d d do ow wn ns st tr re ea am m a ac ct ti iv vi it ti ie es s ( (p pa ac ck ka ag gi in ng g, , l la ab be el li in ng g, ,
i in n- -s st to or re e p pr ro om mo ot ti io on n) )

C Co om mp pa an ny y: : S Sh ho ow wa a B Bo oe ek ki i C Co o. .

3 3. . A AC CT TI I O ON N P PL LA AN N 3 3 R RE EG GU UL LA AT TI I O ON NS S

R Re es sp po on ns si ib bl le e a au ut th ho or ri it ty y: : D De ep pa ar rt tm me en nt t o of f a ag gr ri ic cu ul lt tu ur re e t to o
p pu ur rc ch ha as se e V VH HT T m ma ac ch hi in ne e ( (R RE EF FE ER R A AP PP PE EN ND DI I X X 2 2) )

M MA AR RD DI I t to o r ro oc ce ee ed d w wi it th h t th he e t te es st ti in ng g t to o c co om mp pl le et te e t th he e 1 13 3
s st te ep ps s f fo or r l li if ft ti in ng g t th he e b ba an n o of f m ma an ng go o. .

p p

S St ta at tu us s: : F Fo or r e ex xp po or rt t o of f h ha ar ru um mm ma an ni is s, , M Ma al la ay ys si ia a
h ha ad d u un nd de er rt ta ak ke en n 6 6 o ou ut t o of f 1 13 3 s st te ep ps s u un nd de er r t th he e
J J a ap pa an ne es se e p pr ro oc ce ed du ur re es s f fo or r l li if ft ti in ng g t th he e b ba an n. . W We e
h ha av ve e t tr ri ie ed d n ne eg go ot ti ia at ti in ng g t to o c ch ha an ng ge e t th he e v va ar ri ie et ty y t to o
c ch ho ok ka an na an n b bu ut t w wa as s r re ej je ec ct te ed d. . T Th hu us s, , w we e a ar re e
r re eq qu ui ir re ed d t to o f fi in ni is sh h w wi it th h a al ll l t th he e s st te ep ps s f fo or r
a ap pp pr ro ov va al l b be ef fo or re e o ot th he er r t th he e b ba an ns s o of f o ot th he er r
f fr ru ui it ts s c ca an n b be e l li if ft te ed d. .

4 4. . A 4 4. . A AC CT TI I O ON N P PL LA AN N 4 4 P PR RO OD DU U T C C

T

a a) ) P Po os si it ti io on ni in ng g
- - W We e a ar re e w wi it th hi in n a a q qu ua ad dr ra an nt t o of f d de el li ic ci io ou us s
a an nd d e ex xp pe en ns si iv ve e. .

Malaysia?

) ) P P c ck ka ag gi in ng g
d d q qu ua al li it ty y p pa ac ck ka ag gi in ng g t to o e en ns su ur re e

b b a a
- - A At tt tr ra ac ct ti iv ve e a an n
f fr re es sh hn ne es ss s o of f t th he e f fr ru ui it ts s. .

M MI I Y YA AZ ZA AK KI I S S M MA AN NG GO O
1 16 68 80 00 0 Y Ye en n = = R RM M 5 51 10 0/ / b bo ox x
O Or r R RM M1 17 70 0/ / f fr ru ui it t
J J u un ne e 2 20 00 07 7
c c) ) P Pr ri ic ce e
s se ed d o on n p po os si it ti io on ni in ng g. .
- - T T d di is sc cu us ss s w wi it th h S Sh ho ow wa a B Bo oe ek ki i C Co o. . L Lt td d. .

- - B B

a a
o o

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An Assessment of Market Potential

of Selected Tropical Fruits in The Netherlands

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