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.

  • Indonesia floats idea of Oz wine requiring halal certification

    Indonesia floats idea of Oz wine requiring halal certification

    Trade Minister Enggartiasto “Enggar” Lukita has floated the idea of requiring Australian wine sold in Indonesia to pass halal certification and use plain packaging in retaliation for the neighboring country “undermining” the selling of Indonesian tobacco and paper.

    Enggar said he recently that he had voiced his resentment to Australian Minister for Trade, Tourism and Investment Steven Ciobo after Australia mandated in 2012 that cigarettes sold in the country must use plain packaging and levied anti-dumping duties on imported A4 paper from Indonesia in April.

    “We facilitate imports of Australian beef. But I am devastated by the barriers slapped on our tobacco and A4 paper,” said Enggar at a gathering late on Thursday.

    “I told Steve that I would consider requiring Australian wine sold in Indonesia to also have plain packaging and pass halal certification, but I deliver it in a light way though, and it was just an expression of my resentment,” he said.

    Indonesia and other tobacco-producing countries, such as Cuba, the Dominican Republic and Honduras, filed a complaint with the World Trade Organization (WTO) against Australia for what they consider illegal trade barriers by mandating plain packaging.

  • Kiehl’s opens world first coffee house in Taipei

    Kiehl’s opens world first coffee house in Taipei

    New York cosmetic brand Kiehl’s will open the world’s first Kiehl’s Coffee House and shop in Taiwan in June.

    Located in Taipei, the premium skincare brand’s first global coffee shop will be “New York” theme, and will take on a shop-in-shop design. Black and white will feature throughout with wooden tones.

    The café shop will provide customers with coffee and snacks, as well as Kiehl’s products and skincare consulting services.

    The L’Oreal-owned brand hopes the new coffee house will increase consumer and brand interaction. According to local reports, the mainland’s first coffee shop is also in preparation.

    Taiwan boasts seven standalone Kiehl’s stores in Taipei, Hualien City and Taichung City.

    Pharmacist John Keihl founded Kiehl’s in 1851. It started as a single pharmacy in Manhattan at Third Avenue and East 13th Street in 1851.

    Nowadays, the American cosmetics retailer is part of L’Oreal Group’s beauty stable and specialises in premium skin, hair, and body care products.

  • How Pizza Hut and payments are fueling China’s retail revolution

    How Pizza Hut and payments are fueling China’s retail revolution

    Part of the huge shadow Ant Financial casts is its appetite for global investment, but at the same time it’s making moves that are kicking off major changes to how payments are handled in its local market in China.

    While the world waits to see how the company’s attempt to acquire U.S.-based MoneyGram will play out, one of Ant’s existing stakes in Yum China — a 2016 spinoff of Yum Brands, which owns Pizza Hut, Taco Bell and KFC — has drawn the attention of an investor who sees the potential to reshape quick serve restaurants, mobile technology and even the middle class in emerging economies.

  • Vietnam rice exporters face challenges

    Vietnam rice exporters face challenges

    The rice price is forecast to continue soaring in near future, buoyed by the higher demand for rice of some countries, but Vietnam is having difficulty boosting rice shipments, heard a seminar in Hanoi last week.

    A study conducted by the Institute of Policy and Strategy for Agricultural and Rural Development shows there are nine million rice farming households nationwide, but around 300,000 of them account for the bulk of Vietnam’s rice export volume.

    Meanwhile, the nation has over 300,000 rice milling facilities, but a majority of them are small. But in Thailand, there are a mere 1,000 rice milling plants. Besides, Vietnam has around 100 rice exporters, but a mere 22 of them focus on China, one of Vietnam’s largest rice buyers.

    Industry experts said these two hindrances had led to the global market share of Vietnamese rice shrinking. Statistics of the Ministry of Agriculture and Rural Development show the country’s rice shipments last year dropped 27% in volume and 23% in value against 2015.

    Vietnam has seen gradual declines in rice exports to China, European Union, Middle East, and Sub-Saharan Africa.

    Despite the decrease in rice exports, local enterprises have shown little or no interest in the domestic market.

    Vietnamese rice producers have not been able to develop premium rice brands, according to Sergio René Araujo Enciso, an economist from the Trade and Markets Division under the Food and Agriculture Organization of the United Nations.

    Key importers of Vietnamese rice products have adopted food security policies. China, for instance, is buying rice from different countries, said Pham Kim Dung, the study’s lead researcher.

    The World Bank and the International Monetary Fund forecast that rice prices might inch up in the short term as some countries are stocking up on rice, such as Malaysia with 950,000 tons and Bangladesh with 600,000 tons.

  • Vietnam’s May coffee exports extend downtrend to finish at 6-month low

    Vietnam’s May coffee exports extend downtrend to finish at 6-month low

    Coffee exports for the 2016/2017 season have already fallen nearly 7 percent, based on government data. Vietnam, the world’s largest exporter of robusta coffee, will ship an estimated 120,000 tons (2 million bags) of coffee this month, the lowest volume in six months and a drop of around a quarter from a year earlier, the government said on Monday.

    This figure would bring the accumulated volume since October 2016 at the start of the current 2016/2017 crop year to 1.09 million tons, down nearly 7 percent from the previous season, based on data from the General Statistics Office’s monthly report.

    The forecast for May, which is down 25.5 percent from the same month last year, is the lowest since November 2016 when the country exported 114,600 tons.

    Falling shipments from Vietnam, the world’s second largest coffee producer after Brazil, suggest dwindling stocks. Last month’s shipments hit a five-month low of 134,800 tons, based on government data.

    Strong exports in the first months of 2017 have left foreign buyers with adequate stocks and Vietnam with less coffee beans.

    In March, a senior executive from Vietnam’s top coffee export firm Intimex warned the country could fall short of the bitter beans in May or June due to rising shipments and dwindling domestic stocks.

    The country’s stocks at the end of the 2016/2017 crop year are forecast to plunge 64 percent from the previous season to 1.38 million bags, the U.S. Department of Agriculture said in its May report released last week.

    Vietnam’s coffee crop year lasts between October and September.

  • Paper Moon finds new landing in the Philippines

    Paper Moon finds new landing in the Philippines

    Milan’s famous ristorante Paper Moon is now in Manila, palangga. The restaurant opened in a gorgeous roof deck setting at the Knightsbridge Residences in Century City, a few steps from Century City Mall, Kalayaan Avenue, Makati City.

    Paper Moon is Edi Tekeli’s newest passion project and marks his return to Manille after many years of living abroad. He opened the restaurant with longtime friend and Century Properties chair, special envoy to the US José E.B. Antonio and Hilda Reyes Antonio.

    After fashion retail, and knowing that Manila’s restaurant scene has become more vibrant, Tekeli felt he had found a gem in Paper Moon. He wanted to bring this rare culinary experience to the Philippines.

    Paper Moon has also opened in Istanbul and Doha.

    The grand opening in Century City coincided with Tekeli’s birthday party. He said the event was his way of expressing gratitude to friends who’ve been supporting his endeavors, such as when he brought retail brands Guess and Mango to the country.

    Among the guests were ambassadors from Italy, Massimmo Roscigno; Britain, Asif Ahmad; Singapore, Kok Li Peng; Canada, John Holmes.

    Also in attendance were Rep. Tonyboy Floirendo, Ambassador Bienvenido Tantoco Sr. and New York-based physician Norman San Agustin.

    Enrica del Rosso, who cofounded Paper Moon in 1977 with husband Pio Galligani, graced the affair and was happy to see the impeccable style touches in the restaurant.

    Tekeli is said to be opening more Paper Moon outlets in Southeast Asia.

    Rustan’s Portugal fest

    Rustan’s, in partnership with the Consulate of Portugal, recently launched “Portugal Divino!”—a celebration of Portuguese arts and crafts. At the opening, Anton Huang of Stores Specialists Inc. welcomed guests of honor led by honorary consul of Portugal to the Philippines Tony Rufino.

    Huang and Rufino later led the toast, along with Rustan’s VP for home merchandising and buying division Marilen Tantoco, Philippine Ambassador to Portugal Celia Anna Feria, award-winning Portuguese artist Arlinda Frota and Portuguese designer Ricardo Preto.

    On exhibit at Rustan’s Makati were Frota’s ceramic paintings. On May 26 to June 6, they will be on display at Rustan’s Shangri-la Plaza.

    Milestone

    Ricky Delgado Jr. of Isla LPG Inc. (ILC), the company behind LPG brand Solane (www.solane.com.ph), led its recent fifth anniversary celebration.

    “Solane has been here only for five years but we’ve already done so much,” Delgado said. “This company is respected for what it does well, and I think that if you look at how far we have come, it’s really because of the same strategy we have kept from the start—reliability safety, and we take what we say seriously.”

    Also toasting Solane’s milestone were Ruben Domingo, ILC chief executive officer; Shoichi Watanabe, Isla Petroleum and Gas (IPG) CEO; Willie Sarmiento, IPG chief finance officer; Tonito Gonzalez, ILC general manager for sales; and Yuji Fukuda and Keisuke Oba.

    Outstanding employees were handed awards: Team Ace Awards were given to the Bulk and Commercial Team. Account Manager of the Year was Haidee Alverne of the Vismin Team. Eagle Awards were given to Gigi Indangan, Regie Reyes, and Ricky Estolas, Jr. from the ILC operations staff.

  • ‘Durian & Fruit Fest’ scheduled for Bangkok, Chiang Mai, Phuket

    ‘Durian & Fruit Fest’ scheduled for Bangkok, Chiang Mai, Phuket

    By focusing on the “King of Fruits”, the durian, the company says it hopes to encourage fruit consumption on an international level.  Together with the Tourism Authority of Thailand, the Commerce Ministry and Central Pattana, Central Food Retail is organising the “Thailand Amazing Durian & Fruit Fest”. More than 300 Thai fruits and fruit-based processed foods will be served in buffet lines taking place in three popular tourist destinations, Bangkok, Chiang Mai and Phuket.

    Phattaraporn Phenpraphat, executive vice president for marketing and public relations at Central Food Retail, said Thailand’s excellent geographic location and pleasant climate created its potential to cultivate tasty fruits of fine quality, which are much appreciated by both Thais and foreigners.

    Fruit exports generate major income for the country. In March last year, the Office of Agricultural Economics forecasts that production of durian, rambutan, mangosteen, longan, langsat and lychee would total more than 2.3 million tonnes.

    As the operator of a supermarket business, Central Food Retail is an expert in selecting fresh, delicious and quality fruits from all over the country to provide to consumers. Last year, about 7,000 tonnes of 66 domestic fruits from 62 provinces were sold, the top 10 being banana, watermelon, other melons, durian, orange, mango, pineapple, papaya, longan and rambutan.

    This year, the company targets overall sales of 10,000 tonnes in 232 branches (as of May).

    The company hopes durian will be a selling point to promote this year’s Fruit Fest, boost Thai fruit consumption and attract more tourists.

    Last August, a durian buffet was held for the first time in Thailand – that month was in the late season for durian in the Eastern region and the harvest season in the South. Feedback from the event was excellent, the company says.

    Of the participants, 70 per cent were Thais and 30 per cent foreign tourists, mostly Chinese. According to a survey, the tourists were very pleased with the durian buffet. They said the price was reasonable and they wanted to come back if the buffet were to be organised again.

    “The company was really satisfied with the event last year,” Phattaraporn said. “It created a signature and an image of Thailand as the world’s destination for tropical fruit. Therefore, we are making the durian buffet one of our main events this year.

    “With the intention of encouraging fruit consumption and attracting tourists, we are cooperating with the Tourism Authority of Thailand, the Ministry of Commerce and Central Pattana to promote the event and create awareness among target markets, using two main strengths: the 17 types of durians and the locations of the buffets, namely Bangkok, Chiang Mai and Phuket.”

    At the event, there will be two zones, a buffet zone and a farmer’s market. In the buffet zone, there will be various kinds of Thai fruits, led by Monthong durian, the “Queen of Fruits” or mangosteen, rambutan, lychee, watermelon, banana, and papaya, along with more than 11 fruit products such as coconut water, Thai sticky rice with mango, and coconut-milk ice cream.

    In the farmer’s market, the highlights of the event will be gathered, for example, E-nak durian from Rayong province, which is quite rare, Koh Chang Chanee durian, durian Tteokbokki, durian Bingsu, crispy mangosteen, durian macaron, and durian Chinese pastry. Overall, there will be about 300 products in both zones.

    The Thailand Amazing Durian & Fruit Fest will be held in as follows:

    • Bangkok from May 24-31 at the Square A area in front of CentralWorld;

    • Chiang Mai from June 7-13 at the courtyard in front of CentralFestival Chiang Mai

    • Phuket from June 28 to July 4 at the courtyard in front of CentralFestival Phuket.

  • Central Food launches new format in Thailand

    Central Food launches new format in Thailand

    The parent company of Tops Supermarket, Central Food Retail (CFR), will invest Thb1bn (US$29.37m) in a new format Tops Plaza, and 176 new Superkoom supermarkets.

    The leading Thai retailer told that the new format will be community shipping mall, with the first to open in Pichit this year, and another in Payao next year. CFR also plans to open 178 Superkoom supermarkets this year, bringing its total operations of the discount supermarket to 200.

    Phattaraporn Phenpraphat, CFR executive vice-president for marketing and public relations, told that the company had strong sales growth in the first quarter of the year, both from existing stores and from new Superkoom, Tops Daily and Tops Market store openings.

    “Our sales growth of 3.02 per cent in the first quarter exceeded the industry growth rate,” she said.

  • Vietnam’s pepper farmers urged to keep calm and carry on

    Vietnam’s pepper farmers urged to keep calm and carry on

    Industry leaders have called on distraught and anxious pepper farmers to remain calm and refrain from selling their produce at low prices, saying the current price plunge is most likely a fleeting phenomenon.

    Do Ha Nam, Chairman of the Vietnam Pepper Association, said farmers should break their impulse to “mass sell” their produce immediately after harvest.

    “Vietnamese pepper exports now account for nearly 50% of global output, so we are actually in a position to control the market. Farmers should be calm and not sell at lower price, and the market will revert to its equilibrium,” Nam said.

    In the Central Highlands, the price for whole peppercorns on the domestic market has dropped from VND180,000 (US$8.04) since last August to around VND80,000 (US$3.57) per kilogramme as of May 28 to reach the lowest point in seven years, and many pepper farmers are in dire straits, with some pushed to the point of having to sell their land to settle debts.

    Authorities, meanwhile, are struggling to manage what they say is the consequence of unplanned farming and poor quality crops, which is dragging the whole industry down.

    According to the Standing Committee of the Tay Nguyen Steering Board, farmers were “misled” by pepper price surges in recent years to plant the crop on a large scale, ignoring warnings from local authorities. Subsequently, gluts have led to the sharp decline in prices, the committee has said.

    Nguyen Thi Do, a pepper farmer in Dak Nong Province, said her family had taken a bank loan of VND4 billion (US$178,770) to plant pepper on a 10ha plot. At her initial calculation of VND200,000 (US$8.93) per kilogramme of whole pepper, profits were certain, but the drastic drop in prices could force her to sell her land to repay the bank.

    Pepper rush

    Originally, Central Highlands provinces like Dak Lak, Dak Nong and Gia Lai had planned to expand the farming area for pepper to a maximum of 6,000ha by 2020. But all these provinces have surpassed this limit by far. Dak Lak has nearly 28,000ha of pepper farms, Dak Nong, 25,000ha, and Gia Lai, over 15,000ha.

    The national total is about 150,000ha, set to produce about 300,000 tonnes of pepper in the next two to three years, so, going by supply and demand function alone, prices could drop as long as supply exceeds demand, said Hoang Phuoc Binh, Deputy Chairman of the Chu Se District Pepper Growers’ Association in Gia Lai Province.

    To compound matters, even with farming on such a large scale, many farmers have experienced crop failures due to poor preparation and misuse of chemical inputs.

    Huynh Van Lan of Gia Lai Province, along with his peers, is increasingly worried about drops in both production and prices as his crop nears harvesting. Of more than 2,000 vines on his farm, 250 have died while the rest are producing just half their normal yield.

    Bad habits

    Tay Nguyen authorities have recorded a common practice among local pepper farmers of planting a new crop directly on malnourished, acidic and depressed soil without taking any step to replenish the soil with nutrients. This is causing slow growth and increased vulnerability to diseases.

    To make matters worse, a number of farmers have been using seeds of dubious quality, affecting the rest of the harvest. The use of toxic pesticides and growth accelerators has further exacerbated the situation.

    As if all this weren’t enough, the irregular drizzling since February 2017 has continued to dampen the pepper vines’ roots, exposing them to pests and affecting production.

    Experts say that the combination of market glut and poor quality crop threatens sustainable development of the domestic pepper industry, most particularly its export potential.

    High non tariff barriers are another challenge for Vietnamese pepper, which has to contend with markets already familiar with exports from Indonesia, Malaysia and India, they say.

    Sustainable solutions                                

    To prevent “spontaneous” and inefficient farming, the Tay Nguyen Steering Board has asked provincial authorities to adjust and firmly implement their provincial pepper cultivation plans.

    They should also organise comprehensive training programmes for local farmers in order to synchronise production in the region, the board has said.

    It has noted that the need for sustainability stretches across all crops and agricultural products, requiring farmers to work closely with other stakeholders in the supply chain to obtain technical support and suitable farming inputs.

    In Chu Puh District, Gia Lai Province, a key pepper producing area, a farming model that saves water, uses organic fertilisers and pesticides is showing encouraging results.

    More importantly, farmers are being advised to plant exclusively on suitable soils with high drainage to allow maximum growth and minimum soil damage.

    So far, the district has implemented this model on more than 100ha, and aim to expand this to 500ha by 2020.

    The Steering Board also advised local governments to focus on brand building and vertical integration to promote exports.  Clean, ecologically sound cropping is the ideal long term solution to the problems faced by the domestic pepper industry, experts agree.

    The rosier side

    Do Huong Duong, vice chairman of the Phu Nhuan Service Joint Stock, notes that despite the ongoing problems in quality, output and prices, export turnover has continued to rise.

    According to the Ministry of Agricultural and Rural Development, Vietnam exported about 75,000 tonnes of pepper worth US$456 million in the first four months of 2017.

    Vietnamese pepper has been a stable import in the US, United Arab Emirates, Pakistan, Indian and German markets in the first three months. There are signs of improvement in other markets like Thailand, where import of Vietnamese pepper has registered a year-on-year increase of 49.6%.

    These numbers prove that Vietnamese pepper is able to meet quality criteria in the strictest markets in the world, Nam said. Farmers have to be encouraged and helped to focus on improving their produce while the Government keeps an eye on mass production and quality control, he said, adding that that this would ensure market stability as well as sustained profits from this key crop.

  • Indian mangoes hit South Korean shelves

    Indian mangoes hit South Korean shelves

    Teams from the GMR Hyderabad Airports Limited, which operates the airport and HMACPL haveworked with the farmer community at Vizianagaram facility for developing a pack-house, creating markets, commissioning this project with requisite approvals from Government and exporting Suvarnarekha variety of mangoes to South Korea.

    With this, RGIA becomes the first airport in India to facilitate export of mangoes to South Korea directly from a farm-based infrastructure. Mangoes being a seasonal fruit of high demand, export volume to South Korea is expected to grow up to 10 tonnes per day for the rest of the season, it said in a statement..

    The Cargo operator has a coordination committee comprising of APEDA, National Plant Protection Organization (NPPO), Korean Delegation and Plant Quarantine to guide the farmers to compete with international export norms..

    The GHIAL & HMACPL are in the process of identifying and enabling similar infrastructure across the catchment areas in Telangana State, Andhra Pradesh, Northern Karnataka and Eastern Maharashtra among others, that can provide the requisite processing facilities to to boost the prospects of India’s Mango exports to South Korea.

    According to Sudhakar, DGM of APEDA, “Telangana and AP are the largest producers of mangoes in India with 25 per cent share, of this Banganapallii, Suvarnarekha, Neelam, Cherukurasam are the most popular varieties. Exports provide attractive rates giving better returns to producers and farmers”:

    The CEO of GHIAL SGK Kishore says so far Hyderabad has been India’s Pharma capital and the airport had garnered a lion’s share of pharma exports. Our effort to diversify into perishables export base has been realised now with the initiative of Mango exports to South Korea.We will establish a dedicated perishables handling facility at the airport soon.

    RGIA has been collaborating with various exporters and regulatory bodies to make this feat possible. Soon Indian mangoes would compete in Mango Festival happening at Seoul with varieties from Pakistan, Vietnam, Thailand and Philippines.

  • Incurring big losses, fast food giants open fewer shops

    Incurring big losses, fast food giants open fewer shops

    The heyday of fast food chains seems to be over in Vietnam. The number of fast food shops has been decreasing in an era when people are trying to ‘live slowly’.

    Ten years ago, Hanoians and Saigonese could easily find fried chicken shops along main streets. At that time, eating fried chicken at fast food shops was in fashion. More and more fast food shops opened, not only in large cities, but also in small cities and provinces.

    In 2012, Burger King, encouraged by the fast growing market of Vietnam, announced a plan to spend $40 million to develop a chain with shops located in advantageous positions in many cities and provinces throughout Vietnam.

    A representative of Burger King once stated that Vietnam was one of its key markets.

    Nguyen Bao Hoang, who brought McDonald’s to Vietnam, said he would open about 100 shops in Vietnam within one decade, and employ hundreds of workers. Lotteria and KFC are believed to be the brands with the highest number of fast food shops in Vietnam.

    Analysts once believed that the potential of the Vietnamese market was great with the Vietnamese income on a rapid rise. Fast food chains targeted the Vietnamese middle class with average household income of $500-1,000.

    MOIT has granted licenses to 148 foreign brands to enter the Vietnamese market in the last eight years.

    This includes 42 fast food, bakery, coffee, beverage and restaurant brands, accounting for 43.7 percent of the total.

    Some fast food shops have shut down quietly after the boom. The number of shops of each fast food chain is on the decrease.

    In mid-February 2016, a Burger King shop at No 1B-1B1 on Cong Hoa street in HCMC announced its closure. One month before, another shop at the Dien Bien Phu – Cao Thang crossroads in district 3 also shut down.

    In 2015, two Burger King shops at No 26-28 Pham Hong Thai street in HCMC and 125 Lo Duc street in Hanoi stopped operation. In mid-2014, a shop closed in Da Nang.

    McDonald’s, a well known brand from the US, has set up several shops in HCMC but still hasn’t opened a restaurant in Hanoi.

    A branding expert commented that food chains can develop only if their products fit locals’ taste.

    This explains why fast food chain development has slowed down, while banh my (Vietnamese sandwich) chains have been prospering.

  • Vietnam’s appetite for foreign baby formula is making US giant Abbott rich

    Vietnam’s appetite for foreign baby formula is making US giant Abbott rich

    Abbott is widely known as a formula milk supplier, and bagged more than $1 billion in sales from 2014-2016 in Vietnam.

    Abbott, a U.S.-based global healthcare company, said its net sales in Vietnam last year jumped 31 percent from 2015 to $434 million, ranking the country as the fastest growing among the firm’s top 10 markets based on revenue.

    Sales growth in the Southeast Asian nation surpassed major markets such as the U.K., Canada, Colombia and Italy, bringing Abbott’s total revenue last year to $20.85 billion, or 2 percent up from 2015, the firm said in its 2016 annual report.

    In Vietnam, where the firm arrived in 1995, Abbott is widely known as a formula milk supplier, and bagged more than $1 billion in sales from 2014-2016.

    Last year, the firm expanded its commercial presence into Vietnam’s pharmaceutical business by acquiring two manufacturing facilities. This deeper penetration was among the company’s business highlights of 2016, Abbott said in the report.

    Established in 1995, Glomed has two plants in the southern province of Binh Duong and five branches across the country.In August 2016, Abbott acquired Glomed Pharmaceutical Company Inc (Glomed), a leading Vietnamese drug manufacturer.

    A month later, Abbott’s subsidiary CFR International SPA raised its ownership in Vietnamese drug firm Domesco Medical Import Export Joint Stock Corporation (Domesco) to 51.7 percent from 45.9 percent.

    Formed in 1888, Abbot has about 100 manufacturing facilities globally with 94,000 employees.

    The Vietnam Dairy Association (VDA) said foreign firms, led by Abbott, Mead Johnson, Dutch Lady, and Nestlé, dominated the domestic powdered milk market, holding up to a 75 percent of market share as of 2013.

    The developing country with more than 90 million people is now home to 60 dairy firms that produce and trade more than 300 dairy brands.

    Last year, revenue in the dairy sector edged up 3.3 percent from 2015 to more than VND95 trillion ($4.2 billion), 45 percent of which came from Vinamilk, the Industry and Trade Ministry cited VDA data as showing.

    The ministry estimates that Vietnam’s dairy industry grew on average 17 percent annually from 2011-2015, while per capita consumption of milk is forecast to rise 9 percent per year to 27-28 liters by 2020 from around 20 liters now.

  • Vietnam to export pork to China amid supply glut

    Vietnam to export pork to China amid supply glut

    Local farmers have seen prices fallen sharply as a surplus of 200,000 tons of pork is expected this year. Vietnam is working to export some of its pork to China soon, a deal that could help many farmers stricken by an oversupply and massive price drops.

    Necessary procedures are being finalized and China will only import pork, instead of live pigs, said Nguyen Xuan Duong, deputy head of the husbandry department under the agriculture ministry.

    China, the world’s biggest pork consumer, wanted to officially open its market for Vietnamese pork years ago, but in 2012, the foot-and-mouth disease made headlines in Vietnam, prompting the northern neighbor to halt the plan.

    As for now, China has asked Vietnam’s authorities to control diseases in animal farms and monitor the quality of pork.

    Chinese officials will come to Vietnam to check the production process before working on related procedures, Duong.

    He said China has not decided on how much it will import, but it is likely that Chinese consumers will need around one million tons of Vietnamese pork a year.

    Chinese buyers currently pay VND40,000-42,000 ($1.70-1.80) per kilogram of pork. Prices of pork have fallen sharply in Vietnam this year, currently hovering around VND23,000-25,000 per kilo.

    Vietnamese small traders used to be able to sell live pigs across the border, but China has recently ended this practice.

    In May 2016, the agriculture ministry started warning traders of a possible glut.

    Farmers have been expanding their herds hoping to increase exports to China despite warnings from the ministry, and “this has caused the pork supplies to exceed domestic demand,” the ministry said in a statement on April 28.

    Vietnam’s pig herd expanded by nearly 5 percent to more than 29 million heads last year. By the end of March this year the number had edged up by at least 1.5 percent, according to official data.

    The agriculture ministry estimated that Vietnam will face a surplus of 200,000 tons of pork this year. It is trying to also export live pigs and pork to the Philippines and Singapore.

  • Koreans consume 377 cups of coffee on average in 2016

    Koreans consume 377 cups of coffee on average in 2016

    South Koreans drank a total of 377 cups of coffee per person on average last year, mirroring brisk growth of the sprawling market fueled by a flurry of various franchises, a government report showed.

    The average coffee consumption, based on South Koreans aged over 20, has grown at an annual rate of 7 percent since 2012, according to the report by the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corp.

    The size of the domestic coffee market reached 6.4 trillion won (US$5.68 billion) as of end-2016, up 30.6 percent from 4.9 trillion won tallied in 2014.

    Of the figure, coffee franchises accounted for 62.5 percent last year, up from 53.8 percent two years earlier, reflecting that the coffee brands have led the market growth.

    Big coffee chains, such as Starbucks and Paul Bassett Korea that attract customers with high-quality brewed drinks and a wide range of choices, have spurred smaller businesses on to launch their own brands, the report said.

    The outbound shipments of coffee products, which include ready-to-drink coffee that usually come in as powdery or liquid forms in small packs, nearly doubled to US$180.21 million in 2016 from US$91.9 million in 2007. Their imports grew about 3.8 times to US$204 million in the same period.

    Russia was the biggest exporting market for South Korea, accounting for 25.4 percent of the total shipments, due largely to the popularity of Korea-made powdery coffee sticks, followed by China with 17.3 percent and Greece with 11.6 percent.

    The global coffee product market was valued at US$125.6 billion as of end-2015. Japan trumped the market with a 30.9-percent share, trailed by the United States with 17.2 percent. South Korea’s share stood at 1.5 percent.

  • Creme Maison announces strategic partnership and expansion plans

    Creme Maison announces strategic partnership and expansion plans

    Singapore-based bakery Creme Maison announces partnership between two young Gen-Y entrepreneurs, Ms Angeline Ng and Ms Serene Tan. Founded in 2014 by Ms Angeline Ng, Creme Maison has gained a cult following for its signature floral cupcake bouquet, which is crafted entirely out of buttercream. Constantly pushing the boundaries with bold, innovative flavours such as bestsellers Matcha Salted Egg, Raspberry Lychee Rose and Earl Grey Lavendar, the brand places a strong emphasis on using only fresh premium ingredients.

    The synergistic partnership between the two came about when Serene embarked on a blind cake tasting spree to find the best tasting cakes in Singapore. What began as a casual meeting evolved into a partnership with plans to expand and introduce the brand to the Taiwanese market. Coupled with her experience from franchising popular dessert chain Dazzling Café, Serene saw immense potential in the Taiwanese market for a bakery with a unique concept such as Creme Maison’s, and believes that it will be well received in Taiwan.

    Bringing to the table her experience with supply chain management and process implementation, Serene will be responsible for the business side of the partnership and will be establishing a strong local headquarters and developing processes to increase productivity.

    Locally, plans are currently underway for Creme Maison’s central kitchen, which will be ready in the third quarter of 2017. The central kitchen is expected to increase productivity to meet the growing demands locally.

    The brains behind Creme Maison’s creations and bold flavours, Angeline is responsible for spearheading the brand’s R&D efforts. Angeline hopes to excite consumers with new interesting flavours, as well as introduce options for the health-conscious, and consumers with allergies. “Cakes are for joyous occasions, and we want to be able to share the experience with everyone, whether you are gluten intolerant, or have any dietary restrictions, in exchange for big smiles and contented hearts,” said Angeline.

    With plans to expand regionally, Creme Maison not only has its sights set on Taiwan, but has plans to further expand its international presence in other parts of Asia within the next two years. Besides expanding the business through bespoke customised cake and wedding orders, the brand hopes to introduce new to market features such as unique and interactive user experience to consumers, as well as investing in a strong team for R&D and product innovation.