Special Edition, October 2010 Special Edition, October 2010

Papers Presented at the Agribusiness Marketing Conference 2010
  1. Potential of Selected Malaysian Tropical Fruits In Europe: Strategic Framework to Penetrate EU Market

    Author(s) : Mohd Fauzi Mohd Jani, and Siohong Tih
    Keywords : Tropical fruits, market structure, fruit positioning, European

    Abstract: The purpose of this study is to examine the potential of selected Malaysian tropical fruits in Europe and to suggest a strategic framework to penetrate European markets. An industry survey which included one hundred respondents was used to explore the market structure and tropical fruits positioning. This includes integrating previous research findings related to fruits studies in European market to develop a strategic framework to serve as a guideline for marketing of tropical fruits in European markets. Data analysis consisted of descriptive analyses. It was indicated that world import of tropical fruit was projected to reach 4,300,000 tons in 2010 and this mainly comes from developed countries, and European Union is one of the top importing nations. In terms of tropical fruit export, Malaysia has been the major exporter of fresh star fruit and dragon fruit category. In European market structure, the key channel members active in distributing tropical fruits are large scale importers/wholesalers, importers and large scale retailers. These channel members might deal directly or indirectly with Malaysian tropical fruits exporters. From consumer market segmentation, there are three key segments: supermarket or supermarket chain, European local retailers and open market. This paper covers a previously rather unexplored fresh tropical fruits potential in European markets. It also provides a tropical fruit positioning map. This information can serve as useful guidelines for tropical fruits producers and exporters to support their decision making.
  1. New Agri-food Marketing System for Fresh Fruits and Vegetables in Malaysia: Some Structural Perspectives

    Author(s): Fatimah Mohamed Arshad
    Keywords: Agri-food marketing, fresh fruit and vegetables, structural perspective

    Abstract: This paper examines the development of the new supply chain in Malaysia and its structural implications to the local fresh produce (fruits and vegetables) industry, particularly the small producers. It traces the growth of the new retail formats such as hypermarkets, departmental stores and supermarkets. The growth of these new retailers intensified in the late 1990s, as globalisation brought in capital-rich multi-national retailers into the local marketing scene. The structural differences between the new supply chain and conventional marketing are compared. Within less than a decade, the new super retailers were able to capture a significant market share of the local fruits and vegetables at the expense of the small time local retailers. Their procurement system which emphasises on consistent supply and rigid quality standards indirectly cuts off the small farmers from the supply chain. New type of intermediaries, packing houses have emerged replacing the traditional middlemen role usually performed by small time wholesalers or traders at the farm level. To integrate the small farmers into the new supply chain entails are formation programme that enhances productivity, product quality and institutional restructuring towards cooperative movement.
  1. Food Consumption Trend: Transforming Issues into Opportunities

    Author(s): Mad Nasir Shamsudin, Jinap Selamat, Alias Radam, Abdul Ghariff Ramin, Tey Yeong-Sheng, and Ahmad Hanis Izani Abdul Hadi
    Keywords: Food consumption, supply chain, value creation

    Abstract: Economic development has driven the Malaysian food consumption trend to move from basic staple to non-traditional staples – wheat-based, meat, fruit and vegetable items. More affluent Malaysians are also prompted to dine away from home. This paper attempts to acknowledge and grasp the changes in the Malaysian food consumption trend with deliberation for turning relevant issues into opportunities. Income, own price, relative prices, and demographic factors are the driving forces behind the changes in the Malaysian food consumption trend. Of the widening role of income growth, food demand has shifted toward high quality-differentiated characteristics – freshness, safety, texture, and appearance, and consumers are willing to pay for these quality characteristics. The essence of transforming these issues into opportunities is by responding to consumer expectations. An aligned market-led supply chain is proclaimed to offer differentiated and complex food products, which explicitly specifies the value creating activities via information sharing. The Malaysian agri-food supply chain players must also adopt value creation and delivery approach to produce food products that have sufficient value for customers who are willing to pay.
  1. Quality Assessment towards VHT Harumanis Mango for Commercial Trial to Japan

    Author(s):Faridah Hassan, Rosidah Musa, and Jamaliah Mohd Yusof
    Keywords: Quality, VHT, Harumanis, Mango, Japan

    Abstract: The availability of imported tropical mangoes in Japan renders the need to look into the potential of marketing fresh mango. In 2007, from a survey conducted and also from previous observations, it was unveiled that japanese have very favorable attitude towards mango and most likely make purchase with its availability. However, the quality of harumanis mangoes from Malaysia has not been able to achieve the japanese fruit import quality. As agreed through government to government trade agreements in previous years, Malaysia has to adhere to the japanese procedures to lift the ban of importation. Thus, advance research is now needed to gauge japanese perception on the effect of Vapour Heat Treatment (VHT) with regards to the quality of harumanis upon arrival in Japan. Malaysia has already undertaken 6 out of the 13 steps involved.  It Is envisaged that mango is the most promising fruit currently to be marketed matching that of India and Australia that were recently approved the export of mangoes to Japan. Based on the research conducted in 2007 on consumer preferences, harumanis mango has been stipulated as the premium fresh fruit that would satisfy the focused market demand and is presently gaining popularity among the japanese.
  1. Recommendations to Strengthen Halal Food Supply Chain for Food Industry in Malaysia

    Author(s): Suhaiza Hanim Mohamad Zailani, Zainal Ariffin Ahmad, Nabsiah Abd Wahid, Rosly Othman, and Yudi Fernando
    Keywords: Halal product, food industry, supply chain management, syariah

    Abstract: With the goal of modernising marketing infrastructure and operating systems of food commodity in Malaysia, FAMA can position itself in the development and building of halal food supply chain for poultry, meat and fishery in Malaysia. Since FAMA is one of the government agencies that is directly linked and is always dealing with players of food commodities, it is about time that it became the champion for this study. Industry players such as the feed millers, growers, slaughter houses, storages, transporters, producers, wholesalers and retailers will also benefit from the study by being able to participate in the development process. This study provides all of them with a channel to convey their views on the features of the halal practices and to train them with an appropriate training or motivation programme on halal issues. The industry members, therefore, can become more innovative in improving their operations and more competitive in the world food trade. This may enable Malaysia to penetrate and capture the vast local and international markets for halal food.
  1. Export Competitiveness of the Malaysian Processed Food in the Middle East Market

    Author (s): Jinap Selamat, Siti Fatimah Misran, Mad Nasir Shamsudin, Jamil Bojei, and Rosli Salleh
    Keywords: Processed food, competitiveness, constant market share, general electric model

    Abstract: This study intends to determine the competitiveness of the Malaysian processed food in the Middle East market using Constant Market Share (CMS) and Business Portfolio Analysis. The results from the CMS analysis revealed that the gain in export for beverages, cookies and bakeries, and sauces and seasonings have been due to the competitive effect. For chocolates, the gain in exports was due to the market size effects. From the business portfolio analysis using the General Electric (GE) Model, chocolates, beverages, and cookies and bakeries should protect the position and concentrate on maintaining the strength of the products. In terms of marketing strategy, the producers should consider marketing approach of choosing, providing, and communicating the value in order to improve the competitiveness of the processed food products.
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