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In Singapore FRESH FRUIT & VEGETABLES IN SINGAPORE FLANDERS INVESTMENT & TRADE MARKET SURVEY FRESH FRUITS & VEGETABLES IN SINGAPORE FLANDERS INVESTMENT & TRADE ROYAL EMBASSY OF BELGIUM 8 Shenton Way #14-01 AXA Tower Singapore 068811 Tel: (65) 6227 3997 Fax: (65) 6227 7349 [email protected] www.flandersinvestmentandtrade.com INDUSTRY OVERVIEW ON FRESH FRUITS AND VEGETABLES IN SINGAPORE Singapore is not an agricultural country. Approximately 95% of Singapore fresh fruits and vegetables are imported from all over the world such as Australia, Malaysia, China, New Zealand, Thailand, United States and Indonesia. In 2012, Singapore imported over S$10 billion worth of food and live animals and S$3 billion worth of beverages in 2012 (Source: International Enterprise Singapore). The agricultural product market in Singapore is categorized into six segments: cereals (barley, wheat, maize, rice and etc); fruit, vegetables, roots and tubers (apples, cabbages, potatoes, etc); oilcrops & pulses (lentils, soybeans, linseed, etc); sugarcrops and sweeteners (represented here by raw and refined sugar expressed as raw sugar equivalent); spices and stimulants (coffee, ginger, etc); and nuts (walnuts, almonds, etc). The Singaporean agricultural products market grew by 3% in 2013 to reach a volume of 3.7 million tonnes. Fruit, vegetables, roots & tubers is the largest segment of the agricultural products market in Singapore. The total market value for this segment is 59.7% with total revenue of $1.4billion. Singapore accounts for 0.2% of the Asia-Pacific agricultural products market value (Source: MarketLine). Fresh tropical fruits are the most consumed fresh fruits than fresh temperate fruits with an exception for apples, pears and oranges. Consumption of green vegetables has greatly increased in recent years due to the demand of healthier food among Singaporeans. Fresh temperate fruits that are imported into Singapore are apples, pears, oranges, stone fruits (avocados, apricots and peaches), cherries, strawberries, raspberries and blueberries. Fresh vegetables imported into Singapore include asparagus, Brussels sprouts, beans, broccoli, cauliflowers, leguminous vegetables, lettuce, peas, spinach, witloof chicory and other green leafy vegetables. Singapore is known for its wet markets selling fresh fruits, vegetables, meats and fish. Wet markets used to dominate the retailing of fresh fruits and vegetables. However, this has significantly changed over the years. More consumers prefer to shop for fresh food in supermarkets than wet markets due to the longer operating hours and wider product range in supermarkets. The foodservice industry is another important market segment for fresh food exporters as Singapore is considered as a transportation and tourist hub. The foodservice industry includes airline caterers, cafes, clubs, hospitals, hotels, restaurants and ship chandlers. A small proportion of imported fresh fruits and vegetables are used for domestic food manufacturing. The re-export trade for fresh fruits and vegetables imports is relatively lesser than in the past. In the past, fresh fruits and vegetables are re-exported to neighboring countries such as Malaysia, Indonesia and Thailand. DISTRIBUTION CHANNEL FOR AGRI-FOOD PRODUCTS IN SINGAPORE The below chart illustrates an overview of agri-food distribution channel in Singapore. There are two main wholesale centre in Singapore located at Pasir Panjang and Pandan Loop. The wholesale centre houses dried goods, fresh fruits and vegetables, cold rooms and offices. Fresh fruit and vegetables are imported by importers or distributors who distribute to wholesalers, retailers and the food service sector such as hotels, restaurants and ship chandlers. Margins are made by respective parties along the distribution channel which inevitably adds on to the retail price of fruits and vegetables. Fresh Fruits & Vegetables in Singapore 2016 3 Large grocery retailers are the major buyers of fruit and vegetables.In recent years, there has been an increasing trend of direct importing by major supermarket chains from foreign exporters and consolidators. Large supermarket retailers such as NTUC FairPrice and Cold Storage turn to contract manufacturers for repackaging of fresh produce into their house brand products. Two major supermarket chains dominate the Singapore retail supermarket industry, Cold Storage owned by Dairy Farm and NTUC Fairprice supermarket chains. Cold Storage targets the middle and higher income groups while NTUC Fairprice caters to the mass-market group. Cold Storage dominates the market share with 113 supermarket stores, comprising of 53 Cold Storage supermarket retail stores which includes 6 premium Market Place supermarkets and one upscale supermarket, ThreeSixty. In addition, the group operates 68 Giant supermarkets and hypermarket in Singapore. AGRI-FOOD DISTRIBUTION CHANNEL IN SINGAPORE Foreign Exporter Traders Wholesale Market Wholesalers Manufacturers Agents Importers Importers Food Service Retail Wholesalers Restaurants Wet Markets Caterers Supermarkets Convenience Institutional Store Retail Food Service Buyers Wet Markets Restaurants Supermarkets Caterers Convenience Store Institutional Buyers Export & Re-export 4 OPPORTUNITIES FOR AGRI-FOOD PRODUCTS IN SINGAPORE The latest consumption trend in Singapore is organic food including fresh fruits and vegetables. The largest distributor of organic fruits and vegetables in Singapore is Zenxin Agri- Organic Food Pte Ltd from Malaysia. Their production chain is certified by NASAA Australia. Their fresh produce is distributed to supermarkets and hypermarkets in Singapore. The key to success entry into the Singapore market for Belgian exporters is to find the right partner to distribute or represent your product and advertising & promotion. Exporters should: Understand the market and pricing better before exporting your products Appoint a committed and established importer or distributor, and build a long-term relationship Seek for a qualified export consolidator to export if your volumes are not in huge quantity to sell directly to an overseas importer Seek partnership with industry association for collective export marketing and logistics Ensure quality, appearance and freshness of product Fresh Fruits & Vegetables in Singapore 2016 5 IMPORT REGULATIONS & TARIFFS FOR AGRI-FOOD PRODUCTS INTO SINGAPORE Singapore is a free port. Hence, fresh fruits and vegetables imports into Singapore are considered duty free except for a 7% Goods and Services Tax (GST) which is levied on all imported goods. AUTHORITY: AGRI-FOOD & VETERINARY AUTHORITY (AVA) Website: www.ava.gov.sg The Agri-Food Veterinary Authority of Singapore (AVA) is responsible for ensuring food safety from production to just before retail for both primary and processed food. All products are subject to inspection and sampling by this agency to ensure that the supply of meat, fish, fruits and vegetables is safe for human consumption. Currently, AVA has no restrictions to the import of fresh fruits and vegetables from all countries into Singapore. The import of fresh fruits and vegetables is regulated under the Control of Plants Act. TRADE ASSOCIATIONS TO FOOD & BEVERAGE IN SINGAPORE SINGAPORE FRUITS AND VEGETABLES IMPORTERS & EXPORTERS ASSOCIATION Website: www.singaporefva.com Singapore Fruits & Vegetable Importers & Exporters Association promotes and expands the development of fruits and vegetables trade in Singapore. List of members can be found on the website. SINGAPORE FOOD MANUFACTURER ASSOCIATION (SFMA) Website: www.sfma.org.sg The Singapore Food Manufacturers' Association is a professional and active trade association formed in 1967 by a small group of like-minded local food manufacturers with the purpose of developing and promoting the local food manufacturing industry. Members comprise small family concerns, small-and-medium enterprises, public listed companies, traders and various supplier companies related to food industry. TRADE EVENTS RELATING TO FOOD & BEVERAGE IN SINGAPORE FOOD AND HOTEL ASIA Date : 12 – 15 April 2016 Venue : Singapore Expo Website: www.foodnhotelasia.com A biennial exhibition for the food & beverage industry and hotel and hospitality industry, featuring seven specialized events – FoodAsia, Wine&SpiritsAsia, HotelAsia, BakeryAsia, ServiceTechAsia, HospitalityStyleAsia and FHA Culinary Challenge. Organiser: Singapore Exhibition Services Pte Ltd 1 Jalan Kilang Timor, #09-02 Pacific Tech Centre Singapore 159303 Tel: 65-6-233.6638 Fax: 65-6-233.6633 Website: www.sesallworld.com Email: [email protected] Contact: Ms. Tng Siew Mui Gezondheid en farma in Zuid-Korea | winter 2016 7 .
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