Benchmarking Australian Vegetable Industry Points of Difference Ben Dunsheath Euromonitor International Ltd Project Number: VG13085 VG13085 This report is published by Horticulture Australia Ltd to pass on information concerning horticultural research and development undertaken for the vegetables industry. The research contained in this report was funded by Horticulture Australia Ltd with the financial support of the vegetables industry. All expressions of opinion are not to be regarded as expressing the opinion of Horticulture Australia Ltd or any authority of the Australian Government. The Company and the Australian Government accept no responsibility for any of the opinions or the accuracy of the information contained in this report and readers should rely upon their own enquiries in making decisions concerning their own interests. ISBN 0 7341 3421 5 Published and distributed by: Horticulture Australia Ltd Level 7 179 Elizabeth Street Sydney NSW 2000 Telephone: (02) 8295 2300 Fax: (02) 8295 2399 © Copyright 2014 Benchmarking Australian Vegetable Industry Points of Difference Horticulture Australia Project Number: 4.23 MVCD (6 August, 2014) Umesh Madhavan, Ryan Tay et al, Euromonitor International Report TITLE Project Number 4.23 MVCD Project Leader Umesh Madhavan [email protected] +65 6429 0590 ext. 6694 Project Co-Leader Ryan Tay [email protected] +65 6429 0590 ext. 6700 Key Admin Contact Ben Dunsheath [email protected] +61 2 9581 9225 Purpose of Report: The purpose of this final report is to communicate the successful delivery of project 4.23 MVCD. Date of Revised Report: 26/09/2014 Any recommendations contained in this publication do not necessarily represent current Horticulture Australia (HAL) policy. No person should act on the basis of the contents of this publication – whether regarding matters of fact, opinion or other content – without first obtaining specific, independent and professional advice on the matters set forth in this publication. © Euromonitor International Ltd 2014. Applicable terms and conditions of use and the disclaimer at the front of this document apply. Page ii List of Contents 1. MEDIA SUMMARY........................................................................................................................... 2 2. INTRODUCTION, INCLUDING REVIEW OF LITERATURE ........................................................... 3 2.1 Background ......................................................................................................................................................... 3 2.2 Objectives ............................................................................................................................................................ 3 2.3 Key study areas ................................................................................................................................................... 3 2.4 Review of literature and other related research ............................................................................................... 3 2.5 Implications for the industry and likely impact of the results ......................................................................... 4 3. MATERIALS AND METHODS ......................................................................................................... 5 3.1 Desk research ...................................................................................................................................................... 5 3.2 Store checks ......................................................................................................................................................... 5 3.3 Consumer surveys ............................................................................................................................................... 5 3.4 Trade interviews ................................................................................................................................................. 6 3.5 Analysis ................................................................................................................................................................ 6 4. RESULTS ......................................................................................................................................... 7 4.1 Distinguishing between countries with high and low levels of presence ......................................................... 7 4.2 Identifying attributes for which Australian vegetables are known ................................................................. 8 4.3 Identifying attributes that matter to consumers ............................................................................................... 9 4.4 Strategic focus for marketing efforts ................................................................................................................10 4.5 Potential competition to Australian vegetable exports ...................................................................................11 5. DISCUSSIONS ............................................................................................................................... 14 5.1 Australian Vegetables in China ........................................................................................................................14 5.2 SWOT Analysis ..................................................................................................................................................32 5.3 Australian Vegetables in Malaysia ...................................................................................................................34 5.4 SWOT Analysis ..................................................................................................................................................52 5.5 Australian Vegetables in Saudi Arabia ............................................................................................................53 5.6 SWOT Analysis ..................................................................................................................................................74 5.7 Australian Vegetables in Singapore .................................................................................................................75 5.8 SWOT Analysis ..................................................................................................................................................93 5.9 Australian Vegetables in the United Arab Emirates .......................................................................................94 6. RECOMMENDATIONS ................................................................................................................ 114 6.1 Targeting the regions .......................................................................................................................................115 7. BIBLIOGRAPHY OF LITERATURE CITED ................................................................................ 119 7.1 China .................................................................................................................................................................119 7.2 Malaysia ............................................................................................................................................................119 7.3 Singapore ..........................................................................................................................................................120 7.4 Saudi Arabia .....................................................................................................................................................120 7.5 UAE ...................................................................................................................................................................121 Benchmarking Australian Vegetable Industry Points of Difference 1. MEDIA SUMMARY The Australian vegetable industry demonstrates an interest in exporting greater quantities of vegetables especially to Asian and Middle Eastern markets. To do this, the industry needs to have a better understanding of what attributes are required to succeed and place Australian produce at an advantage in these export markets. A benchmarking study was carried out by the independent company Euromonitor International over the course of 16 weeks, from 28 March, 2014 to 21 July, 2014. Throughout the course of the research, a comprehensive inquiry was conducted across five representative markets – China, Malaysia, Saudi Arabia, Singapore and the United Arab Emirates (UAE) – into local consumer behaviour and preferences via extensive consumer surveys and in-store interview exercises. These were followed by trade interviews with major local industry stakeholders to study an optimal route-to- market distribution strategy as well as import criteria of local importers and distributors. Product placement and promotional activities were also studied through store audits conducted in pertinent retail channels. Through a top-line review of the regions’ self-sufficiency towards locally produced vegetables, imports are still demanded due to limited or inadequate local supplies in most markets, with the exception of China. When it comes to the retailing of vegetables, modern trade dominates due to convenience in the more developed countries, while traditional wet/ open markets still appeal to those living in developing markets. A deeper dive