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Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • Thai producers plan to recover shrimp output in H2, as prices rise

    Thai producers plan to recover shrimp output in H2, as prices rise

    Thai producers plan to increase their shrimp output in the second half of this year, after output from farms dropped year-on-year in the first two quarters of 2017, industry sources told us.

    Heavy rain, which has caused floods in several provinces, as well as ongoing disease issues, limited the growth of Thai shrimp production in the first half of this year, Thai Union Group’s shrimp unit managing director, Preerasak Boonmechote, told us during a recent visit to the firm’s processing plant near Bangkok, before the Thaifex trade show in Bangkok.

    Thai shrimp production is expected to grow 5% overall this year, lower than earlier expectations of 10-15% output growth, Boonmechote said, pointing to the fact that heavy rain had limited the country’s production growth plan.

    In 2016, Thailand’s production increased around 50,000 metric tons to 300,000t, Robins McIntosh, senior vice president of Thai agribusiness and food processing giant Charoen Pokphand Foods, said in January, at the Global Seafood Market Conference in San Francisco, California. According to Thai Union’s estimates, Thai production in 2016 totaled slightly less, about 250,000t.

    Meanwhile, Thai shrimp prices, which are on the rise again, are expected to either remain stable or grow 5% y-o-y in 2017, according to Boonmechote.

    Output growth

    Thai Union plans to increase its shrimp production 5% this year, up from 65,000t in 2016, Boonmechote said.

    Thai Union owns three shrimp processing plants in Thailand, which currently operate at 60-70% of their capacity, said Boonmechote. The firm, which is Thailand’s largest shrimp producer, plans to expand sales to the retail sector, particularly in Thailand and Korea, as well as in Australia, China and Middle East.

    Another large Thai shrimp producer, Marine Gold Products, plans to increase its shrimp production to 25,000t in 2017, up from 20,000t in 2016.

    Marine Gold has also introduced some new value-added products (see the photo of the firm’s new Thai green curry ready-to-eat product), mainly for the local market, as well as for China, Taiwan, Korea and Japan.Heavy rain in Thailand has caused a decrease of production compared with 2016, but the firm aims to recover its output in the second half of the year, Panuwat Wat Tanakijrungrueang, a marketing executive with the firm, told us during the Thaifex trade show.

    Several other large Thai shrimp processors told us they are looking to up production, as well as diversify to other products, during Thaifex.

    An executive with May Ao Group said the firm plans to increase its output around 5-10% y-o-y in 2017, from 12,000t in 2016.

    Thai Royal Frozen Food, which produced about 20,000t of shrimp last year, also plan to increase its production, with a 10-20% rise planned for 2017, an executive with the company told us, during Thaifex.

    Another processor, Lee Heng Seafood, also aims to increase its shrimp output in 2017 from almost 3,600t last year, having built a second processing plant in the Phang-Nga province, Thailand, the company said, during the show.

    Other processors are looking at more diversification.

    Thai frozen food manufacturer Surapon Foods is currently building a new frozen sushi and chicken processing plant, as it plans to focus more on value-added seafood and chicken products, Auhtaphon Ratana Arporn, assistant managing director at the firm’s trading arm Surapon Finest.

    The firm is investing THB 200 million ($5.8m) in 2017 to build the new plant and renovating its other plants.

    The firm has recently reorganized its structure and introduced a new value-added product line. It also launched a new logistic firm, named Mobile Logistics, which distributes frozen products across the Thai market, Ratana said.

    Meanwhile, PTN Group has started the sale of live Osaki oysters on the Thai market.

    The firm was promoting the new Japanese farmed product at the Thaifex trade show, targeting both retail and Horeca sector. It also sells breaded oysters and salmon nuggets.

  • Bibica power balance coming to an end?

    Bibica power balance coming to an end?

    In June, Bibica announced that it has received PAN Food’s offer to purchase 7.27 per cent of its outstanding shares in the market, an equivalent of 1,121,670 shares, at the price of VND112,800 ($5) apiece.

    It means that PAN Food will have to spend about VND127 billion ($5.6 million) on the deal. If the transaction succeeds, PAN Foods’ stake in Bibica will rise to 51 per cent, turning Bibica into a subsidiary.

    However, currently, Lotte has two representatives in Bibica’s board of directors, while PAN Food has only one, Nguyen Khac Hai.

    Even if PAN Food can successfully hold 51 per cent stake in Bibica, it cannot add another representative to the board of directors immediately, as they will have to wait until a Lotte representative or an independent member end their term. Otherwise, in accordance with the Law on Enterprises, PAN Food should hold 65 per cent of Bibica’s stakes to call a shareholders’ meeting and call for the election of a new member.

    Previously, Truong Phu Chien, vice chairman cum general director of Bibica, registered to sell his 0.72 per cent stake in the company on May 19, 2017.

    Bibica’s leader, who has devoted 30 years of his life to Bibica, said that he wanted to transfer his entire shareholding due to personal financial reasons.

    However, investors do not completely give credence to this reason, as Chien used to say that stake sale was the best way to eliminate conflicts between the two biggest shareholders.

    At the same time as Chien, Vo Ngoc Thanh, another shareholder, also registered to sell a part of his stake in Bibica. From May 23 to June 11, 2017, 2.66 per cent of Bibica’s stakes have been offered for sale.

    From 2013, there have been conflicts between Bibica’s two biggest shareholders, PAN Food and Lotte, which was exacerbated by their similarly large holdings that prevented either of them from making the final decisions in the company.

    Purchasing this 7.27 per cent would give PAN Food an advantage over the other majority shareholder. Also, Chien’s wish for Bibica to have one biggest shareholder will come true.

    A shareholder in Bibica since 2007 by acquiring a 38 per cent stake, now Lotte holds 44.03 per cent as the biggest shareholder.

    Lotte is one of the most famous confectionery manufacturers, offering vital support to Bibica’s research and development department. Moreover, thanks to Lotte, Bibica’s products are now exported to five countries, all part of Lotte’s system of 16 foreign markets.

    Meanwhile, Saigon Securities Inc. (ticker SSI on HOSE) has been holding a 9 per cent stake in Bibica since the middle of 2009.

    As Nguyen Duy Hung fills the position of chairman at SSI and The PAN Group, this acquisition raised PAN Food’s stake in Bibica to 43.73 per cent.

    PAN Food offers Bibica both financial support (on account of SSI) and support in the agriculture and food sectors.

    Bibica scheduled electing additional member to its board of directors at its May 26, 2017 annual shareholders’ meeting, but the plan fell through and the board remained unchanged.

    Nevertheless, the two board members’ decision to sell is expected to alter the balance between the two biggest shareholders.

    Hung is expected to play a major role in this. In the past, when asked whether he wanted to increase ownership in Bibica and gain control, Hung said that even if he wanted to, not enough shares are available on the market.

    “When mentioning me or SSI, people may think that my investment in Bibica is a financial investment instead of a strategic one. If Kinh Do Vietnam Joint Stock Company (now Mondelez Kinh Do Joint Stock Company) had not sold 80 per cent of its stake in the confectionery sector to Mondelez International (an American multinational confectionery, food, and beverage company), we would not have invested in Bibica. We finally decided to invest in this company because in the next five years, we do not want to see our ancestors’ altars covered by foreign confectionery,” Hung told VIR at a recent meeting in Ho Chi Minh City.

    Ambition of becoming a leading confectionery company

    Chien agreed with Hung about Bibica’s development target, saying that the 2.66 per cent stake will be transferred to a new owner based on Bibica’ benefits, such as its brand and product development, instead of personal benefits.

    This is an important thing as Bibica is deploying its key products.

    One of its main products is chocolate pie. Upon mention of this type of confectionery, Vietnamese people may think of ChocoPie, a product of Orion Group, which generated $174.5 million of revenue in 2016 in Vietnam, or Lotte Pie.

    However, in April 2017, Bibica introduced Mini Pie Orienko, which was adjusted to better suit the Vietnamese taste, so that this product can compete with other foreign brands.

    Talking with VIR, Phan Van Thien, deputy general director of Bibica, said that this will be one of Bibica’s main products.

    The company targets to win 20 per cent of market share away from its competitors with this product.

    Previously, Bibica already introduced this product, geared towards the high-income segment, but failed.

    Thus, Orienko is now repositioned as a product for the middle-income segment at the price of VND30,000 ($1.32) per 264 gram box.

    “We employ high-technology for product preservation without using preservatives. The product’s quality is as good as foreign pies, while its price is 30-40 per cent lower. I believe that in the short term we will gain market share, and in the long term our products will replace foreign brands,” Thien said.

    With the capacity of 20 tonnes per day, this chocolate pie product is expected to induce VND200 billion ($8.8 million) of revenue, which will account for 13-14 per cent of Bibica’s total revenue in 2017.

    Currently, Bibica holds 30 per cent of the candy sector and 25 per cent of the pie/cake/cookies sectors.

    At present, Bibica is taking advantage of agricultural products, such as coffee and coconut, or manufacturing products with functions similar to supplementary food, such as candies for sore throat.

    Bibica develops its products based on the advantages of domestic agricultural products.

    Other candy brands for the high-income segment will be produced in June 2017 to reach the target of 50 per cent annual growth rate.

    Chien said that Bibica will develop its products in the domestic market and considers this its main market.

    Bibica’s products were exported to 15 countries, but they contributed only 7 per cent to the company’s total consolidated revenue.

    It is forecasted that the confectionery market in Vietnam will have a growth rate of 8.5-9 per cent per year, with more competition coming, as duties and tariffs in the ASEAN will be eliminated gradually.

    Regarding technology, most companies in the industry across the ASEAN stand on the same technological level (except for Korea and Japan). This requires every manufacturer to focus on quality to win market share.

    Bibica targets to become a leading confectionery company in Vietnam by 2021, with a revenue of VND2.618 trillion ($115.2 million), an equivalent of 20 per cent annual growth rate. This is a challenge to Bibica’s board of directors and supervisors.

    Bibica has announced expanding its manufacturing at Eastern Bibica Co., Ltd. and Northern Bibica Co., Ltd. In particular, in 2017, Bibica expects to spend about VND217 billion ($9.5 million) on investment (in 2016 the amount was $800,800).

    Targets include Bibica Bien Hoa factory (about $2.8 million), the biscuit production line in the Eastern factory ($5.6 million), upgrading the bread production line in the Hanoi factory ($316,800), upgrading the cookie production line ($264,000), and upgrading the fire protection system of Bibica Bien Hoa factory ($132,000).

    Additionally, Bibica is developing an online store with the aim of developing its distribution channels in Ho Chi Minh City and Hanoi, so that the two cities will contribute 30 per cent of Bibica’s total sales.

    At present, Bibica has more than 2000 products in over 500 big and small supermarkets, with 120 exclusive distributors and retail outlets in Vietnam.

    To reach these targets, it is vital for Bibica that its big shareholders get on with each other and put a stop to conflicts.

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  • China Fruit Logistica to launch in 2018

    China Fruit Logistica to launch in 2018

    Global Produce Events has announced the launch of CHINA FRUIT LOGISTICA, the new annual trade show for China’s fresh fruit and vegetable business, which opens its doors next May in Shanghai. 

    “FRUIT LOGISTICA is a trusted brand family, and we now have a third platform that enables us to service the fresh produce trade in mainland China,” said Will Wollbold, commercial director of Global Produce Events. 

    “FRUIT LOGISTICA in Berlin is the leading global fresh fruit and vegetable event. ASIA FRUIT LOGISTICA in Hong Kong is the leading continental event for Asia’s buyers. CHINA FRUIT LOGISTICA in Shanghai launches as the leading national event for China’s fresh produce trade.” 

    CHINA FRUIT LOGISTICA takes place on 14-16 May 2018 at Shanghai Convention & Exhibition Center of International Sourcing in the commercial capital’s Putuo District. 

    “The time is right for the launch of CHINA FRUIT LOGISTICA,” said Wollbold. “There are many events for the fruit business here in China, but the Chinese trade needs a truly national and trusted platform for the trade in fresh fruit and vegetables, with effective international connections to the wide world of fresh produce. CHINA FRUIT LOGISTICA provides just that.

    “This is a powerful proposition,” Wollbold continued. “China is home to hundreds of millions of consumers demanding freshness, taste and quality in every region of the country. CHINA FRUIT LOGISTICA establishes the premier trade platform on a national scale for the Chinese fresh fruit and vegetable business, both online and through conventional channels.” 

    China’s fresh produce hub 

    CHINA FRUIT LOGISTICA offers a range of services to visitors and exhibitors to boost their business, said Wollbold. 

    “It’s the meeting place for top buyers and decision-makers, and the central trading platform where retailers and produce buyers from across the nation look for the widest range of top-quality fresh produce on the best business terms,” he explained. “Reliable supply partners present new business concepts, from new products to modern distribution solutions. And everyone gains fresh inspiration and new business contacts from both inside and outside China to develop and expand their business.” 

    CHINA FRUIT LOGISTICA covers every sector in the fresh produce category, including fruit, vegetables, mushrooms, herbs, dried fruit and nuts as well as many new products. The trade show spans the complete supply chain, featuring cool chain logistics, packaging and technology solutions, and the full range of service providers to the fresh fruit and vegetable business. 

    The majority of trade visitors and buyers are set to come from China, including retailers, wholesale buyers, online traders, importers and exporters as well as other stakeholders along the country’s fresh produce supply chain.

    Fresh know-how 

    FRESH PRODUCE FORUM CHINA, which has established its position as the number one conference and networking event for decision-makers in China’s fresh fruit and vegetable business, forms an essential part of CHINA FRUIT LOGISTICA. 

    “A trade show is all about exchanging ideas, learning about the latest developments in the business and sharing information,” said Wollbold. “FRESH PRODUCE FORUM CHINA takes place alongside CHINA FRUIT LOGISTICA, providing delegates with first-rate information and insights on the latest market trends and opportunities, not to mention high-quality networking.” 

    Powerful support: in person & online

    Exhibitors and visitors to CHINA FRUIT LOGISTICA can rely on a strong support network – in person and online. CHINA FRUIT LOGISTICA is run by a world-class organisation team based in Shanghai, Bangkok and Berlin, and is supported by an international network of representatives in over 100 countries. 

    “CHINA FRUIT LOGISTICA exhibitors and visitors can be assured of a FRUIT LOGISTICA-class service,” said Wollbold. “We have set up a Chinese subsidiary, Global Produce Events (Shanghai), and we’re operating our own office in Shanghai.

    “We look forward to welcoming fresh produce professionals from all over China, and from throughout the international trade, to Shanghai next May.” 

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  • Au Bon Pain bakery bound for Cambodia

    Au Bon Pain bakery bound for Cambodia

    The Au Bon Pain bakery chain is to expand into Cambodia, Laos, Myanmar and Vietnam by the end of the year, to serve growing middle classes in the region.

    The expansion was announced by Mudman Plc, the authorised Thai franchisee of the Au Bon Pain bakery chain, and international retail food brands including Baskin Robbins and Dunkin’ Donuts. The firm said the development is intended to capitalise on increasing consumer purchasing power and the strong economies in the Cambodia, Laos, Myanmar and Vietnam (CLMV) market.

    Nadim Xavier Salhani, chief executive of Mudman, was quoted in the Bangkok Post as saying the company recently won rights from ABP Corporation, the owner of Au Bon Pain in the US, to open branches of the bakery in the CLMV market.

    “The company is considering forming a joint venture with local partners or investing on its own in CLMV. The investment model will be finalised by year-end, while the expansion of Au Bon Pain bakery chain into the CLMV market reflects the market’s potential.” said Salhani. “Mudman expects to open the first Au Bon Pain branch in Cambodia or Vietnam by the end of this year or next.”

    Express Food Group general manager Virak Tep told Khmer Times there is plenty of room for coffee and bakery chains to expand into the Cambodian market. He added that many international brands are entering into Cambodia, with the notable exception of McDonald’s. “I think Au Bon Pain is a good brand and with strong potential for a franchiser who wishes to bring it to Cambodia,” said Virak.

    Salhani said purchasing power is increasing due to economic stability and growth in the CLMV, while international brands are popular among younger people.

    Sales volumes in the food and beverage sector in Cambodia is rising at about 10 percent year-on-year, attracting many international franchises, according to Virak.

    “Cambodian consumer trends show increasing preference for international brands from Thailand, Korea, Vietnam, Singapore, Malaysia and the US. As long as the taste of the food or drink meets their expectations, they will go for those brands,” said Virak. He added his company will open another outlet of the chain restaurant Bar B Q Plaza in Cambodia by the end of this year.

    Hem Samnang, area manager of BreadTalk Cambodia, a franchise brand from Singapore, agreed that coffee and bakery chains have room to grow in Cambodia. He said consumer awareness of international brands has been getting better over the past decade, as peoples’ incomes have gone up.

    “Purchasing power in cafes and bakeries is rising day by day, both among youths, middle-aged people and families,” said Samnang said. “Cambodia still has more opportunities for international brands to enter the market as the country’s GDP is rising. I cannot say Au Bon Pain will be my competitor until I see their products.”

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  • Entrepreneur is trying to cure Hong Kong’s meat addiction

    Entrepreneur is trying to cure Hong Kong’s meat addiction

    David Yeung believes that meat is the new tobacco. But the long-time vegetarian and practicing Buddhist won’t try to get you to stop eating meat. He just wants you to consider eating less.

    That’s what he’s trying to do with the citizens of Hong Kong, who collectively have the highest per-capita meat and seafood consumption in the world, according to a 2015 study by Euromonitor. His life’s mission is to get the citizens of our planet — particularly his home city — to cut out eating animals at least one day a week. And it’s working: Menus inspired by his “Green Monday” philosophy appear in hundreds of restaurants across Hong Kong, and at schools and universities around the world.

    Though Mr Yeung grew up in Hong Kong, he spent over a decade living in New York. When he was 16, his family moved to nearby New Jersey to be closer to the fashion industry. His father was one of the four founders of the global clothing company Tommy Bahama. Mr Yeung graduated from Columbia University in 1998 with a degree in engineering, spent a few years consulting for PwC and then launched a software startup (now defunct). He grew up eating meat, but in 2001 he dove into Buddhist philosophy, a core tenet of which is the truth of suffering. It wasn’t a big leap for Mr Yeung to go from looking inward to looking outward, and he quickly concluded that by changing his diet he could stop the suffering of animals.

    Shortly before moving back to Hong Kong, he read about Meatless Monday, a campaign that urged Americans to take one day each week off from eating meat. “I thought the word meatless was not the best choice. People aren’t going to say, ‘Oh, today let’s go meatless,’” he said. He also figured that regardless of language, ethnicity, geography and gender, “green” was a universally known word. “Monday”, too. “These have to be two of the top 50 words that people around the world learn,” said Mr Yeung. So he made it positive and actionable: “Green Monday.”

    Today, you can find Green Monday vegetarian menus offered at hundreds of restaurants around Hong Kong. It’s incorporated into the food service at over 600 universities in 31 countries, 84 of them in the US, including Mr Yeung’s alma mater. You’ll find Green Monday menus at several hotel chains and even at Bon Appétit Management Co ., which is best known for managing Google’s dining empire. The one thing he insists on when he signs up new partners is that they don’t remove meat entirely from the menu. This may seem counterintuitive, but it’s a mind shift. “If you completely remove choices for people, that’s when you get a backlash,” he said.

    These small but important partnerships provide the foundational arm of Mr Yeung’s Green Monday empire with helpful branding to grow its name recognition; to date, it works with more than 2,000 schools. As a mission-based entrepreneur, he makes it an integral part of his social-impact goals, which Mr Yeung defines as bringing a triple-bottom-line to his organization: His work is good for the business, the community and the environment.

    After several successful years promoting Green Monday, Mr Yeung opened the world’s first plant-based retail store in 2015. Think 7-11 (grab-n-go food) meets Muji (clean, functional design) meets Hello Kitty café (fun). He named it Green Common . It was a place for people to eat delicious vegetarian food that riffs on Chinese classics — such as Hainan Chicken, minus the bird — and then take home the newest plant-based groceries. There are non-edible items too, including reusable water bottles, green cleaning products, skincare, cookbooks and vegetable growing kits. In addition to investing in plant-based products, Mr Yeung has become the distributor of choice for American brands that want to break into the Asian market, such as Follow Your Heart, Daiya, Califia Farms, Gardein, and Miyoko’s Creamery. Today, there are four locations, all in iconic Hong Kong retail spots including Harbour City Mall and Landmark Alexandra House.

    What Mr Yeung is most excited about is the April launch of the Beyond Meat burger — a pea-protein, plant-based burger that looks like meat (the pink hue on the inside comes from beets) and tastes like meat. (Really.) Sales are already more than double the projections, a great sign for its broader acceptance. As an investor in the US startup, Mr Yeung has become one of its biggest advocates. “He has been enormously supportive of our brand,” said Ethan Brown, chief executive officer of Beyond Meat and a fellow plant champion. Brown had wanted to expand into the international market, but he needed the right partner. “It was an easy decision to make,” said Brown. “He handles all the marketing and distribution, and he’s positioned the burger in the only way that someone that lives [in Hong Kong] could do.” The one tricky piece was naming the dish. Because there is no word for ‘beyond’ in Cantonese, Mr Yeung calls it the “future burger”. For the entrepreneur, the burger was from the future and for the future.

    Mr Yeung’s journey towards social entrepreneurship wouldn’t have gone anywhere without two key figures. One of them is Green Monday co-founder Francis Ngai, a local investor who previously founded Social Ventures Hong Kong, a philanthropic venture fund that invests in social mission-based startups that work to address urban challenges such as wealth discrepancy, handicap accessibility and elderly issues in Hong Kong. The two shared a diet and a cause. “We would have lunch for hours and talk about ideas to change the world,” said Mr Yeung. At one of those lunches, Mr Ngai said, “David, is there anything we can do with food that is social?” Mr Yeung put down his chopsticks and said, “Duh”.

    At the time, all that the two vegetarians could order were beef noodles — and then ask the server to hold the beef. “But they charge you the same, and they give you that look,” recalled Mr Yeung. The look that says you are giving them trouble.

    The other influence was Mr Yeung’s father, who oversaw the manufacturing side of Tommy Bahama before it sold for $325 million in 2003. In living the Buddhist philosophy — an awareness of those less fortunate — Mr Yeung’s father gave a good deal of his income to charity. These two men inspired Mr Yeung to create his for-profit business, along with his charitable foundation. The third piece of his plant-forward company is a venture fund that focuses on impact investments. Green Monday Ventures pilot fund invested in Beyond Meat, and its second fund invested in Perfect Day, a cellular agriculture company making dairy from cell culture;  Lighter, which provides meal-planning technology and services; and other food-tech startups.

    It may be hard to keep track of all of Mr Yeung’s efforts, but it’s clear that his outreach has, in some way, nudged his fellow Hong Kongers toward a more sustainable lifestyle. PizzaExpress, a UK-based chain with over 20 stores in Hong Kong, has experienced double-digit growth in its vegetarian menu sales on Mondays, and it sees a halo effect on other days. Said Liam Collette, the general manager of PizzaExpress for Hong Kong, United Arab Emirates and Singapore, “We have more than doubled the people eating vegetarian [menu items] on Monday, but we have also had a sustained uplift of overall customers on Mondays. I see this a success for us and for customers.” A third-party study of over 1,000 people, sponsored by Green Monday, found that before the launch, only 5% of the autonomous territory’s more than 7 million inhabitants had a goal of adjusting their consumption. Today, 22% of Hong Kong’s inhabitants report practicing some form of plant-based diet. Other signs? In 2013, Hong Kong had only 130 vegetarian restaurants, and today there are close to 250. Financially, Mr Yeung is on track, too. Revenue for the entire organization, including retail and wholesale, should fall somewhere in the $10 million to $12 million range.

    Mr Yeung’s next target, after Hong Kong? Mainland China. “The food industry is going through a lot of change,” he said, undaunted by the scope of this challenge. “We are exactly at a point where disruption is due.”

  • Government to realize self-sufficiency in garlic in 2019

    Government to realize self-sufficiency in garlic in 2019

    The Agriculture Ministry has targeted to achieve self sufficiency in garlic in 2019, sooner than its previously set target of 2033, Agriculture Minister Amran Sulaiman stated here, Monday.

    Sulaiman noted after the delivery of the Supreme Audit Agency Report that the decision to advance the target was made following recent fluctuations in the prices of the commodity.

    “We are learning from the recent fluctuations in the prices of garlic. Earlier, we had planned to become self-sufficient in garlic in 2033. However, we would advance the target; god willing, it would be in 2019 or 2020. We are aiming to advance the target by 13 years,” he remarked.

    According to the minister, a total of 60 thousand hectares of land will be needed to realize the target.

    Currently, some 90 percent of the countries garlic demand is met through imports annually reaching some 500 thousand tons worth Rp20 trillion.

    “If we can have 60 thousand hectares of (garlic plantations), then we can save Rp20 trillion in foreign exchange while boosting the farmers income,” he added.

    Sulaiman noted that the ministry will maximize the existing land potential, including four million hectares of rain-fed land and 21 million hectares of former swamp areas.

    “We can cultivate (garlic) in these four million hectares of land, with three harvests a year. Farmers could earn Rp150 trillion-Rp200 trillion from this. Secondly, we have 21 million hectares of swap areas that we can use for farming along with building a sugar factory. If we can achieve this, then we can become the worlds largest food producers,” Sulaiman remarked.

    Data from the Central Bureau of Statistics showed that 22,630 tons of garlic was imported from China as of April, while 1,971 tons of the commodity was imported from India during the same period.

    Indonesia has recorded self-sufficiency in garlic production in the period between 1990 and 1998.

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  • Vietnam’s exporters hunt for robusta coffee as supplies dwindle

    Vietnam’s exporters hunt for robusta coffee as supplies dwindle

    International trade is holding bulk of Vietnamese robusta stocks. Vietnamese coffee exporters, faced with dwindling robusta supplies in the world’s top producer, are paying up to buy beans from international trade houses who scooped up much of the crop early in the season.

    Local exporters in Vietnam are struggling to find coffee to fulfill their contracts, trade sources said, after farmers sold forward much of the harvest early on in the season when global prices hit their highest in more than five years.

    The squeeze comes at a time of tight supplies in the country, after a smaller crop this season and heavy rains during harvesting that wreaked havoc on crop quality.

    Vietnam is the world’s top grower of robusta coffee, which is mainly used to produce instant or soluble coffee.

    The coffee is priced against ICE robusta futures and international trade houses were able buy at a discount of $50 to $70 a tonne when farmers were selling heavily.

    “The international trade has been stockpiling basically,” said one European trader. “They decided to get long early on.”

    Local exporters, now unable to get supplies from farmers, have been forced to buy from the international trade houses at premiums of $20 to $30 a ton, industry sources in Europe and Vietnam estimate.

    They pegged profits for the international trade houses, who have stored the coffee in their warehouses in Vietnamese ports, at $70 to $100 a ton.

    “They used financial leverage to buy at discounts at the beginning of the harvest season,” said Phan Hung Anh, deputy director of Anh Minh Co, a coffee-trading firm in Daklak, Vietnam’s largest coffee-growing province. “And now they sell back to companies at premiums.”

    “Vietnamese firms can’t do the same because their financial capability and storage don’t match those of international trading houses.”

    Vietnam is expected to produce 26.3 million bags of coffee in the 2016/17 season, down from 28.4 million in the prior season, Rabobank figures show.

    International traders were holding roughly 6.5 million 60-kg bags (390,000 tons) at the end of May, out of about 9 million in stocks in the country, sources estimated. They have sold about 30,000 to 40,000 tons to local exporters, Vietnamese traders said.

    These trades have been painful for local Vietnamese exporters, some of whom sell beans to coffee giants such as Nestle and Jacobs Douwe Egberts.

    Traders said many had sold coffee far in advance to roasters at much lower prices and are now feeling the pinch of strengthening differentials as they inch towards delivery.

    The exporters have been left with little choice, however, as farmers sit on their remaining good quality coffee in the hope that prices will climb.

    Farmers are holding less than 15 percent of the crop at this point in the season, compared to about 35 percent in a typical year, traders estimated.

    Local exporters could find themselves squeezed further in coming months as supplies continue to dwindle and differentials strengthen before the start of the next harvest in October.

    There is also a risk international trade houses may stop selling coffee to Vietnamese exporters, as they shift attention to delivering on their own contracts with roasters later in the year.

    “That tightness is starting to materialize,” said another trader. “And if they turn off the tap, the prices and the differentials will go even higher.”

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  • Indonesia`s fresh pineapples enter Italian market

    Indonesia`s fresh pineapples enter Italian market

    Indonesian fresh pineapples can now be consumed by Italian consumers after a container holding 18 tons of the commodity arrived in Italys city port of Venezia over the weekend.

    The 18 tons of fresh pineapples were exported in a maiden shipment by PT Great Giant Food in cooperation with Italian importer SAMA SpA.

    SAMA is planning to import up to 20 containers of the commodity until the end of the year, Counselor Charles F. Hutapea of the Indonesian Embassy in Rome, told us in Jakarta on Saturday.

    Previously, the Italian consumers could only enjoy Indonesian pineapples in the form of canned product. The unloading of the maiden export of fresh pineapple was witnessed by Indonesian Ambassador to Italy Esti Andayani together with general manager of SAMA, Giorgio Masiero.

    Ambassador Andayani expressed happiness over the fact that Italian consumers are increasingly fond of Indonesian fresh pineapples which could compete with fruit from other countries.

    “So far, many kinds of Indonesian fruits are imported by countries in Europe and now Indonesian pineapples could also penetrate the Italian market,” she said.

    The Italian company previously imported pineapples from Caribbean and African countries with a length of delivery time of about three weeks.

    The length of time for the importation of pineapples from Indonesia is about four weeks.

    However, the longer period does not affect the quality of and shape of Indonesian pineapples. According to the agriculture attache, Yusral Tahir, in Rome, pineapple is one of the Indonesian mainstay types of fruit.

    Pineapple production is ranked third in the volume of Indonesias fruit outputs after bananas and mango. Almost all regions in Indonesia produce pineapples.

    Pineapple production centers in Indonesia included the provinces of Lampung, West Java, North Sumatra, East Java and Jambi.

    Indonesias pineapples production reaches 1.84 million tons with productivity of 117.5 tons per hectare.

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  • Vietnamese firm to ship first batch of chicken products to Japan in August

    Vietnamese firm to ship first batch of chicken products to Japan in August

    It has taken the company two years to meet Japan’s strict quality control processes. A Vietnamese firm has completed the necessary procedures to start shipping processed chicken products to Japan.

    Koyu&Unitek Co. Ltd is the first poultry firm in the country to gain access to the Japanese market, and plans to export around 300-400 tons in August this year.

    Nguyen Van Quyen, head of the company’s export division, told that the Japanese market is very demanding and has strict control processes, so it had taken nearly two years to complete the necessary procedures.

    The most difficult phase was building the company’s own management oversight program following criteria laid out by the World Organization for Animal Health and Japan.

    Japanese importers pay special attention to antibiotic residue in products, banned microorganisms and bird flu, among others, said Quyen.

    In additon to Japan, his company is also seeking export opportunities in Europe, Australia and Canada. Each market requires its own strategy to meet the respective criteria of each country, said the official.

    According to Pham Van Dong, director of the Ministry of Agriculture and Rural Development’s Department of Animal Health, Vietnamese chickens are usually consumed in the domestic market and are not bred for export.

    Only two local companies have registered to export processed chicken to Japan: Koyu&Unitek in July 2016 and CP Vietnam Co. Ltd in late May 2017.

    Since the beginning of this year, Vietnam has exported $13.7 billion worth of farm produce, forestry products and seafood to the world market, up 9.5 percent against the same period last year, according to the ministry.

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  • Vietnamese fruits conquer Japanese market

    Vietnamese fruits conquer Japanese market

    Before bananas, white-flesh dragon fruits and mangos were constantly shipped to the Japanese market. Meanwhile, red-flesh dragon fruits reached Japanese consumers in March shortly after they were licensed for export to the East Asian country.

    Hidekatsu Ishikawa, President of Vient Co. Ltd, a Japanese importer, said Vietnamese bananas suit Japanese people’s taste and they are sold at competitive prices.

    To date, besides such key exports as garments, footwear and aquatic products, Vietnamese dragon fruits, mangos, frozen litchis and bananas have been present in Japan. Fresh litchis and star apples also see great potential in this fastidious market.

    According to Tran Thanh Hai, Deputy Director of the​ Agency for Foreign Trade under the Ministry of Industry and Trade, the Vietnam-Japan Economic Partnership Agreement (VJEPA) is entering a new phase, opening opportunities for Vietnamese exports.

    Vietnamese products, especially farm produce and aquatic products, will enjoy preferential tax rates in the Japanese market. Regarding aquaculture, tax will be cut down to 1.31 percent in 2019 from 5.4 percent in 2008. Thus, domestic enterprises should take full advantage to gain benefits, Hai stressed.

    He also recommended that exporters must ensure utmost quality for their products as Japan has put in place numerous technical barriers on agricultural imports.

    Meanwhile, a representative from the Japan External Trade Organisation (JETRO) also noted that packing and transportation should be paid special attention, ensuring that origin of agricultural products can be traced easily.

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  • Chanel’s pop-up Coco Café is finally in Hong Kong

    Chanel’s pop-up Coco Café is finally in Hong Kong

    Coco Café is finally landing in Hong Kong this week. After its eye-poppingly Instagrammable stops in Tokyo, Seoul, Singapore and Shanghai, Chanel’s pop-up café will be taking over the Causeway Bay (G/F 38 Yiu Wah Street, Causeway Bay) branch of Coffee Academics from June 10 to 25.

    The beauty brand has created its own chic little universe, where you can sit back with a neon pink cup of coffee and peruse a special edition of The Coco Daily (don’t forget to bring your shades to complete the Parisian café look).

    Of course, it is Chanel, so they’re not just going to serve lattes and cakes—you can also expect to see ‘beauty bubble tea’ and perfume-inspired juices on the menu, if they follow their recipes from Singapore.

    After that, head over to the beauty counters for a free mini makeover, and then get a quick change of your nail shades at the nail bar. Spruce up your look with some tattoo stickers, and spritz on some Chance fragrance for the final touch.

    Don’t forget to commemorate the occasion with a few snaps in the photo booth, which will have Chanel-themed digital stickers. We have our heads in a fluffy pink cloud just dreaming about it.

    As if that’s not enough, visitors will also be treated to a sneak preview of Chanel’s new lip product, Le Rouge Crayon de Couleur. The intense crayon lipstick, which comes in 11 shades, will be shown in Asia for the first time.

    Gorgeous makeup and delectable treats—what more could a girl ask for? Register online for a complimentary drink, door gift and priority entry. Time slots are filling up fast, so we suggest you get on it quickly.

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  • Hanoi beer loses in home market despite brief fame from Obama dinner

    Hanoi beer loses in home market despite brief fame from Obama dinner

    Hanoians favor Hanoi beer, Sai Gon beer and Heineken. There are no official statistics about the consumption of beer products, but analysts are sure the three brands dominate the Hanoi market.

    Hanoi Beer Alcohol and Beverage Corp (Habeco) has the Hanoi Beer brand and is located in Hanoi.

    Analysts said that the images of Obama drinking Hanoi beer, which appeared in all local newspapers and international mass media, would help Habeco prosper.

    But Hanoi Beer has lost a large part of the market to its rivals.

    After Obama had dinner at Huong Lien bun cha Shop and drank Bia Ha Noi on May 23, the first day of his visit to Vietnam, both brands appeared many times on mass media. Bia Ha Noi was even mentioned in Obama’s speech the next morning.

    However, while Huong Lien bun cha Shop’s business has been thriving since then, Bia Ha Noi is less lucky.

    Many grocery stores and street shops in Hanoi say that youth now prefer Saigon Special of Sabeco, a brewery headquartered in HCMC. The main customers of Hanoi Beer are aged 50 and more.

    “Hanoi beer now is just for older people,” said Do Hoang Yen, the owner of a grocery store on Khuong Trung street.

    The owner of H.B Shop on Truong Dinh street said five to six years ago, Hanoi beer once dominated the Hanoi market and there was no rival in the bottled beer market.

    “The sales of Sabeco’s products are far higher than Habeco’s,” he said. “We can sell only one Habeco product for every two Sabeco products sold.”

    At large supermarkets, people have begun buying beer in large quantities as the summer has come in Hanoi. And Sabeco’s products are favored.

    Xuan Truong, from Bac Tu Liem district, said he prefers Saigon Beer because it is tastier with a strong flavor, while Hanoi Beer tastes flat.

    However, a branding expert said that tastes are always different. He believes that the problem lies in the marketing strategy.

    While Sabeco offers a wide range of products with different price levels, targeting different groups of customers, Hanoi Beer has stayed the same for many years and cannot attract young people.

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  • Vietnam rice export back on track

    Vietnam rice export back on track

    Vietnam exported 2.3 million tons of rice worth US$1 billion in the first five months of the year, up 1.6% in volume and 1.2% in value year-on-year.

    China remained Vietnam’s largest rice importer, accounting for 47.5% of the nation’s total rice exports. More than 815,000 tons of rice costing over US$376 million went to the northern neighbor in January-April, up 16.1% and 16.2% against the same period last year respectively.

    Vietnam shipped 4.89 million tons of rice valued at US$2.1 billion in all of 2016, a respective decrease of 25.54%  and 20.57% against 2015.

    China was still Vietnam’s biggest importer of the food staple last year despite a 19.79% decline. It purchased more than 1.8 million tons of rice from Vietnam last year, 36.97% of Vietnam’s total rice shipments.

    The domestic rice price has improved by VND200-300 a kilo, supported by the recent signing of a memorandum of understanding to export one million of rice a year to Bangladesh until 2022. The South Asian country will import 300,000 tons at first.

    In addition, the National Food Authority (NFA) of the Philippines has announced to buy 250,000 tons of rice from Vietnam in June.

    Nguyen Thanh Tho, a rice trader at Ba Dac wholesale market in Tien Giang Province, told the Daily that IR 50404 rice is sold at VND4,350-4,400 a kilo, an increase of VND200-300, helped by the Bangladesh rice deal.

    Besides, IR 50404 material rice is purchased at VND6,350-6,450 a kilo in the Mekong Delta, up VND200.

    Major importing markets, especially Bangladesh and the Philippines, have helped buoy the price. The Free On Board (FOB) price of 5%-broken white rice from Vietnam is US$370-380 a ton, up US$5-10 compared to a week ago.

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  • Sap-Sap products and dinners highlight Lao cuisine

    Sap-Sap products and dinners highlight Lao cuisine

    It’s a rarity in Milwaukee, where Laotian fare like larb, green papaya salad sai oua (Lao sausage) often take a backseat to popular Thai dishes at area restaurants. But, that’s something Alex Hanesakda is trying to change.A first generation Lao American, Hanesakda was just three years old when he arrived in the U.S. It was 1982, and his family had spent the last two years years in a refugee camp in Thailand before making their journey to America as part of the first wave of Laotian refugees.
    Sponsored by a Milwaukee family, they lived in the area for about a year before moving to Burlington, Wisconsin to be closer to the rest of their family.”I grew up cooking with my family,” Hanesakda says. “And growing up in a refugee household, the whole family chips in. And there were things that set us apart. Instead of buying them from the grocery store, we our own chickens. It definitely made an impression on me. And one of the strongest ties to Lao culture that I developed was centered on food.”He says it inspired him to find a way to get word out about Lao cuisine.

    Delicious delicious

    In 2010, he debuted his mother’s recipe for egg rolls at the first annual egg roll competition at Milwaukee’s Asian Fest. The recipe got first place, spawning a catering and vending business called Mamma’s Eggrolls.In 2016, after Hanesakda took a job working with Chef and owner John Hudoc at Hometown Sausage Kitchen in East Troy, he took things a step further.

    He introduced Sap-Sap (meaning “delicious-delicious”), a retail food company specializing in Lao and Southeastern Asian inspired products. Their first product was smoked beef snack sticks incorporating Laotian ingredients including garlic, chives, bhut jalokia peppers and native Lao kaffir lime leaves.”It’s not traditional,” notes Hanesakda. “But, everyone likes snack sticks. And no one had ever really come out with one that showcased Lao flavorings.
    “The snack sticks are currently available at retail establishments including Hometown Sausage, Hyvee stores in Madison and select stores in Burlington and Racine. Restaurants, including Sujeo in Madison, have also picked them up. In fact, Hanesakda says that Chef Tory Miller currently uses the sticks as a component in an eggroll on his menu.They’ve also debuted sai oua (fresh Lao sausages), which are currently being offered as a wholesale product.
    Hanesakda says he’s currently working on additional products to add to his retail line, including two sauces: a sweet and sour sauce and a Lao marinade for barbeque.As he’s worked to launch the Sap-Sap brand, Hanesakda has also begun hosting a variety of events showcasing the flavors of Southeast Asian cuisine.
    Among the first was Pho on the Farm, an event at Yuppie Hill Farm featuring pho (noodle soup), eggrolls, fried rice and other dishes. The response, Hanesakda says, has been overwhelming.”It really took me by surprise how excited people were,” says Hanesakda. “Pho is one of those dishes that didn’t originate in Laos; but, it is eaten in a variety of countries. And it’s been exciting to share my take. These events have drawn such a diverse crowd. And people are booking events months ahead.”Pho on the Farm, now hosted the last Saturday of each month at the Yuppie Hill Farm, is currently sold out through September. However, beginning this summer, Hanesakda also launched a series of special Lao inspired barbecue dinners at Hometown Sausage Kitchen in East Troy, Wisconsin.
    Lao barbeque, Hanesakda notes, is distinguished by two factors. One is the presence of khao niaw (sticky rice). The other is the flavor profile, which is a combination of sweet, citrusy and spicy flavors from ingredients like kaffir lime, lemongrass, shallots and garlic.The dinners feature traditional southeast Asian dishes including papaya salad, eggrolls, barbecued skirt steak, ribs and chicken along with accompaniments like sticky rice and roasted tomato jeow.Both the events and the dishes served, Hanesakda says, are born from love, not only for his family’s recipes, but also for nourishing and connecting friends and neighbors. And the sense of community it builds – nourished by cultural sharing and communal eating – is a more-than-pleasant side effect.If you’re interested in attending the next Lao Barbeque at Hometown Sausage Kitchen on Aug. 12 at 4 p.m., reservations can be made by messaging Sap-Sap on Facebook. Include your name as well as the number of guests in your party. The dinner is $40 plus gratuity, which can be paid on site at the event.For additional information, including updates on future pho and barbecue events, follow Sap-Sap on Facebook.
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  • Levarht launches China-produced tomatoes in retailers across the country

    Levarht launches China-produced tomatoes in retailers across the country

    Levarht is a prominent Dutch grower and exporter established back in 1933, with a worldwide scope. The company’s head office, distribution centre and packing facility are located in the Netherlands. On top of that, Levarht grows peppers in local glasshouses in Mexico and New Zeeland, as well as melons in Costa Rica. And as of 2019 Levarht will start the export of Hass avocado from their farm Harbour Edge in New Zealand.

    Last year, together with their Chinese partner Beijing HongFu Agriculture, Levarht achieved their first major successful project in China by opening a Dutch style tomato glasshouse in the outskirts of Beijing. In 2016 the first plants arrived, and now the facility supports up to 180.000 tomato plants of the company’s Dutch cherry, beef and intermediate tomato varieties. Since a couple of weeks the first tomatoes have been available in supermarkets across the country.

    Being able to closely cooperate with local producers is one of the company’s major aims globally. “Local partnerships are the pillar of our company’s culture. We aim for horizontal and vertical integration, with the  final aspiration to bring the consumer closer to the farm,” according to Claas van Os, Commercial Director of Levarht. “This model is very relevant to roll out in China, where people look for quality, freshness, guaranteed food safety and increased transparency in the food chain.’

    In China, Levarht and HongFu want to ‘set new standards in the market’. “Chinese production is catching up with international standards quickly, driven by a strong demand for safe, healthy and tasty fruit and vegetables.”

    Levarht has invested in the establishment of partnerships with prominent retailers across China, which is part of the company’s long term strategy.  “We cooperate with our partners in the retail, online and processing industries to understand the local consumer and to meet their demand. Food safety and traceability are key elements that consumers look for in premium food brands. This is the image retailers want to convey to their customers, and this is also how we distinguish ourselves as a supplier.”

    “The branding and marketing of our new China-produced cherry tomato line highlight these characteristics in our products. The packaging we have designed has a distinct international feel to it, but does show clearly that the product is made in China. It gives explanations about the characteristics and health benefits of our tomato varieties, as well as about the greenhouse facilities in which the tomatoes are grown. The Chinese name of our tomato brand, 乐鲜客, Le Xian Ke, reflects the key aspects that we promote: ‘Nature’s Joy, in every bite.”

    “In addition, we advocate Dutch quality standards, traceability and direct delivery, access to the source of production. Customers can scan individual QR codes that are printed on all the carton punnets. By scanning this code, consumers can trace their tomatoes all the way back to the greenhouse where the crop has been grown. We want to be completely transparent about our production methods, in order to gain trust and appreciation of the audience.”

    In the coming weeks, Levarht is organising a number of product launches and tastings together with retailers in China’s major cities.