Download Avocado Export Development Plan 2014

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Author
AdrianoBrescia,TradeandInvestmentOfficer,FoodandAgribusiness,TradeandInvestmentQueensland,
QueenslandTreasuryandTrade
ProjectLeader
JodieCampbell,PostharvestHorticulturist,HorticultureandForestryScience,AgriScienceQueensland,
DepartmentofAgriculture,ForestryandFisheries(DAFF)
Disclaimer
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TheStateofQueenslandmakesnostatements,representationsorwarrantiesabouttheaccuracyor
completenessof,andyouandallotherpersonsshouldnotrelyon,anyinformationcontainedinthis
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TheStateofQueenslanddisclaimsallresponsibilityandallliability(includingwithoutlimitation,liabilityin
negligence)forallexpenses,losses,damagesandcostsyoumightincurasaresultoftheinformationbeing
inaccurateorincompleteinanyway,andforanyreason.
©TheStateofQueensland,QueenslandTreasuryandTrade,2012.
Copyrightprotectsthismaterial.Enquiriesshouldbeaddressedtotradeinfo@qld.gov.au(telephone
+61732244035)
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Contents
Figures
5
Figures
5
Acknowledgements
6
QueenslandGovernment
Austrade
Industrypartners
6
6
6
ExecutiveSummary
7
1.0 Introduction
9
1.1 Projectbackgroundandobjectives
1.2 Marketresearchobjectives
1.3 Methodology
1.4 Limitations
9
9
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10
2.0 Singapore–Marketvisitfindings
11
2.1 Supplychainfindings–Importerdistributors
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2.1.1Procurementanddistribution
2.1.2Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
2.1.3Logistics–storagecapacity,producthandling,ripeningandtransportation
2.1.4Consumptiontrends
2.1.5 Marketing–brandingandpromotion
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12
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2.2 Supplychainfindings–Retailandfoodservicebusinesses
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2.2.1Procurement
2.2.2Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
2.2.3Logistics–storagecapacity,producthandling,ripeningandtransportation
2.2.4Consumptiontrends
2.2.5 Marketing–brandingandpromotion
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2.3 Avocadosupplychainmap
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2.3.1AtypicalavocadoexportsupplychainfortheSingaporeavocadomarket 19
3.0 Malaysia–Marketvisitfindings 20
3.1 Supplychainfindings–Importerdistributors 20
3.1.1
3.1.2
3.1.3
3.1.4
Procurementanddistribution
Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
Logistics–storagecapacity,producthandling,ripeningandtransportation
Marketing–brandingandpromotion
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22
24
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3.2 Avocadosupplychainmap26
3
4.0 Marketobservations
27
4.1 KeyfindingsfromretailandfoodserviceobservationsinSingaporeandMalaysia
27
4.1.1 Singapore–Marketobservations
4.1.2 Malaysia–Marketobservations
28
31
5.0 Conclusion
41
6.0 Recommendations
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Appendix1–Avocadomarketresearchquestionnaires
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Appendix2–Australianavocadoindustrymarketingmaterial
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Appendix3–PotentialrecipesforavocadouseinSingaporeandMalaysia
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4
Figures
Figures
Figure1–AtypicalavocadoexportsupplychainfortheSingaporemarket
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Figure2–AtypicalavocadoexportsupplychainfortheMalaysiamarket
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5
Acknowledgements
ThisreportprovidesananalysisofthemarketforavocadosinSingaporeandMalaysia.Itwaslargelymade
possibleduetothegeneroussupportoftheGlobalMarketsInitiative(GMI),theQueenslandGovernment
projectteam,AustradeofficesinSingaporeandMalaysiaandcommercialbusinessesoperatingwithinthe
wholesale,retailandfoodservicesectorsinthesemarkets.
Importers,distributors,retailersandfoodserviceprovidersallowedourteamtoaskthemmany
confidentialquestionsabouttheirbusinessesandaspirationsforthefuture.Wethankthemsincerelyfor
theirtimeandappreciatetheirparticipationininterviewsaboutnotonlytheirbusinesses,butaboutthe
freshproduceindustryasawhole.
Keyacknowledgements
QueenslandGovernment
NickMacleod,Director,GlobalMarketsInitiative,DepartmentofAgriculture,FisheriesandForestry
DevinkaWanigesekera,Director,FoodandAgribusiness,TradeandInvestmentQueensland
TonyOnley,PrincipalTradeandInvestmentOfficer,FoodandAgribusiness,TradeandInvestment
Queensland
PeterSmith,PrincipalTradeandInvestmentOfficer,FoodandAgribusiness,TradeandInvestment
Queensland
JodieCampbell,PostharvestHorticulturist,AgriScienceQueensland
Austrade
RekkhaIsaac,BusinessDevelopmentOfficer,FoodandBeverage,AustradeSingapore
PatriciaLee,SeniorBusinessDevelopmentManager,FoodandBeverage,AustradeMalaysia
Industrypartners
LouisGrey,GeneralManager,AvocadoExportCompany(AEC)
AntonyAllen,ChiefExecutiveOfficer,AvocadosAustraliaLimited(AAL)
WayneProwse,PortfolioManager–ExportProjects,HorticultureAustraliaLimited(HAL)
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ExecutiveSummary
ThisreportpresentsthefindingsofmarketresearchundertakeninMay2010toassesstheopportunities
forfreshavocadosinSingaporeandMalaysia.ThepurposeofthismarketresearchistoassistAustralian
exporterstobetterunderstandmarketplayersandtheirrequirementsandissuesimpactingontheexport
andmarketingofAustralianavocadosinthesemarkets.Weexpecttheavocadoindustrytousethefindings
ofthisresearchtobetterunderstandthecurrentopportunitiesandchallengesinexportingavocadosto
SingaporeandMalaysia.
Researchfindingsarebaseduponinterviewsconductedwithsupplychainpartnersincludingimporters,
distributorsandretailersinSingaporeandMalaysiaandfromintelligencegatheredfromgeneralmarket
observations.Tenfacetofaceinterviewswereconductedwithrepresentativesfromimportandretail
companiesacrossSingaporeandMalaysia.Visitstosupermarketandhypermarketoutlets,wetanddry
retailmarketsandfreshproducewholesalemarketswerealsocarriedoutinSingaporeandMalaysia.
Accordingly,theoverallobjectivesofthemarketresearchwereto:
x
securemarketintelligenceondistributionsystems,wholesale,retailandfoodservicesegments,and
marketcompetitorsincludingquality,pricingandpackagingdetails.
x
mapcurrentsupplychainsincludingproductandinformationflowsandrelationships
x
establishnewrelationshipsandconsolidateexistingrelationshipswithkeyplayerswithinfresh
producesupplychainsinSingaporeandMalaysia.
InSingapore,sixmajorfoodimporterdistributerscurrentlydominateavocadoimportationand
distribution.Itisestimatedthattheseimportersholdbetween5080%ofthetotalavocadoimportmarket
shareinSingapore.Theseimporterstradepredominatelyinsmallersized,unripenedHassavocados
mainlyfromAustralia,NewZealandandMexico.Smallervolumesofavocadosarealsosourcedfromthe
USA,Israel,IndonesiaandSouthAfrica,generallywhensupplyavailabilityfromAustralia,MexicoandNew
Zealandislimited.
InMalaysia,twomajorfoodimporterdistributorstradeinavocados.Itisestimatedthatthesetwo
importersholdover70%oftotalavocadoimportmarketshareinMalaysia.Thesecompaniesimport
avocadospredominatelyfromAustralia,MexicoandSouthAfrica.
AustralianavocadoscurrentlyholdasignificantshareofthemarketinSingaporeandMalaysia.Fourof
theeightmajorimportersinterviewedtradeexclusivelywithAustraliansuppliersandtheremainingfour
importersalsotradeAustralianavocados,albeitlessfrequently.Coliman࿗avocadossuppliedfrom
MexicoandBavaria࿗avocadossuppliedfromSouthAfricanwerethemajorcompetingbrandsbeing
importedintoSingaporeandMalaysia.
TheabilityofAustraliansupplierstodeliverhighquality,fresh(airfreighted)producespeedilyto
SingaporeandMalaysiaisthekeypointofdifferencewhencomparedtocompetingsuppliersfrom
MexicoandSouthAfrica,whichgenerallydeliveraninferiorproducttothemarketviaalengthysea
freightjourneyforacheaperprice.ThequalityofNewZealandproductwasgenerallyconsideredtobe
equaltothatofAustralianproduct.
Hard,greenandunblemishedfruitisthegeneralpreferenceinthemarketplaceinSingaporeand
Malaysia,asitallowsimporterstoeitheronsellavocadoseasilyattheunripenedstageortomanage
ripeningaccordingtotheirindividualcustomerrequirements.Importershaveapreferenceforsmaller
sizedfruit(count28–32).Appearanceisconsideredveryimportanttoretailconsumerswhogenerally
associategreenandcleanlookingproductwithfreshness,whileforfoodservicecustomers,semitofully
ripenedfruitispreferredandskinblemishesareacceptable.
Pointofsaleeducationalandpromotionalmaterialsuchasrecipebooklets,postersandbrochuresdetailing
healthinformationwereseenaseffectivetoolsforraisingawarenesstoendconsumersinthemarket.
Merchandisingtrainingwasconsideredavaluableexercisetobuildknowledgeandmarketingexpertisefor
avocadosinSingaporeandMalaysia.Exploringopportunitiesforattractingmediacoverageisoneactivity
thatmostimportersbelievedcouldboostsalessignificantlyinthefuture.
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TheresearchconcludesthateventhoughavocadosarenotpartofthetypicalAsiandiet,consumptionis
slowlygainingmomentuminSingaporeandMalaysia.Australiaiswellpositionedtotapintothisshiftin
consumptionandgaingreatermarketshareinthesetwomarkets.ItproducestheHassvarietypreferred
by all in the value chain, Australia’s product is considered good quality and as a supplier it is
geographicallyclosertothemarket.StrongsupportersofAustralianfreshproduceexistinbothSingapore
andMalaysia.
However,significantchallengesstillexist.CountrieslikeMexicoandSouthAfricahavelowerproduction
coststhanAustraliaandareabletomarketaggressivelytogainandmaintainmarketshare.Thehigh
Australiadollarisalsoimpactingonlandedprices.Furthermore,relationshipsalongthesupplychainare
stillintheirearlystagesandloyaltiescanbeeasilyshiftedthereforeitisparamountthatexistingbusiness
relationshipsbestrengthened.
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1.0 Introduction
1.1 Projectbackgroundandobjectives
InApril2010,theGlobalMarketsInitiativecommencedanewavocadoexportdevelopmentprojectin
collaborationwithacommercialavocadoexportcompanyandtheAustralianavocadoindustry.
ThepurposeoftheAvocadoExportDevelopmentProjectistoimprovethecapacityandcompetitiveness
ofAustralianavocadoexportchainsthroughimprovingknowledgeandskillsofchainmembersfrom
growertoretailerinmanagingavocadoquality.
Theprimaryobjectiveswereto:
x
developinformationresourcesformanagingfruitqualitythroughtheexportchainfromorchardto
retailshelfandprovideeasyaccessthroughlinkingwiththeinformationsystemdevelopedbyAALfor
domesticmarketing
x
developasystemformonitoringfruitqualitythroughanavocadoexportchainthatimprovestwoway
informationflowandunderpinscontinuousimprovementinproductquality
x
buildtheexportcapacityofAustralianexportersandtheirsupplychainpartnersthroughtailoringof
informationresources,monitoringsystemsanddeliveryoftraining
x
undertakemarketresearchtoidentifyopportunitiesandmarketrequirementsforAustralian
avocadosinSingapore,Malaysia,HongKongandoneMiddleEasternmarket
x
undertakemarketdevelopmentandsupplychainfacilitationactivitiestobuildandexpand
competitivenessandexportopportunitiesforAustralianavocadosinSingapore,Malaysia,HongKong
andoneMiddleEasternmarket.
1.2 Marketresearchobjectives
Thismarketresearchwasdesignedto:
x
securemarketintelligenceondistributionsystems,retail,wholesaleandfoodservicesegments,and
marketcompetitorsincludingquality,pricingandpackaging
x
mapcurrentsupplychainsincludingproductandinformationflowsandrelationships
x
establishnewrelationshipsandconsolidateexistingrelationshipswithkeyplayerswithinfresh
producesupplychainsinSingaporeandMalaysia.
ThepurposeoftheinterviewswastogathermarketintelligencethattheAustralianavocadoindustry
couldusetoincreaseavocadoexportstoSingaporeandMalaysia.Theinterviewsaimedtogainabetter
understandingofthecurrentavocadomarketinbothSingaporeandMalaysiaandtobetterunderstand
theattitudesofbuyerstowardsAustralianavocados.Questionnairesweredevelopedtoassistwiththis
process.(SeeAppendix1)
Marketintelligencewasgatheredbyconductingfacetofaceinterviewswithimporters,wholesalers,
retailersandfoodservicebusinessesandthroughgeneralobservationsofthemarketandobservationsof
consumerpurchases.Someconsumerswerealsoengagedatthepointofpurchaseduringretailvisits.
1.3 Methodology
Informationforthisreportwascollectedfromprimarysources.FieldworkwasundertakenduringMay
2010toresearchthemarketforavocadosinSingaporeandMalaysia.Thisresearchidentifiedkeyfresh
produceimportersandretailersinSingaporeandMalaysiaandtrendsinavocadoimportand
consumption.ThisinformationwaslaterverifiedandexpandedthroughconsultationwithAustrade
officesinSingaporeandMalaysiaandprojectteammemberswhohadpreviouslytravelledtothese
markets.
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Informationwasalsogatheredfrommarketobservationsatretailandwholesaleoutlets,whichincluded
interceptionwithconsumersonanadhocbasis.Informationwascollectedtounderstandtheperception
ofAustralianavocadosinthesemarkets;productdemand;productspecificationpreferences;and
businesslogisticsincludingtransportation,storageandripeningcapabilities.
Duringthemarketvisit,projectteammembersconducted10interviewswithsupplychainpartners
includingimporters,distributorsandretailersinSingaporeandMalaysia.Basedonconsultationswith
AustradeSingaporeandMalaysia,andprojectpartners,thesecompanieswereidentifiedassomeofthe
majorimporters,marketersandconsumersofavocadosinSingaporeandMalaysiaandwereseenas
businesseswiththegreatestpotentialtobuildrelationshipswithAustralianavocadoexporters. Akeyprojectactivityofthemarketvisitswastoconducttrainingonavocadohandlingand
merchandisingforimporters,wholesalers,retailersandfoodservicebusinesses,whichprovidedagreat
opportunitytoconductbriefdiscussionswithanumberofthesebusinesses.Thesediscussionsoffered
insightintoavocadoconsumptiontrendsinbothmarkets.
1.4 Limitations
Theinformationanddatapresentedinthisreportshouldbeusedasaguideonly.Theinformation
providedisbasedupontheaccuracyofdatasuppliedfromintervieweesandsomeoftheresponsesmaybe
biased.Furthermore,informationprovidedbyintervieweesonlyrepresentsaportionofthewholesale,
retailandfoodservicesectorswithinSingaporeandMalaysia,asonlyselectedinterviewswere
conducted.Themarketresearchactivitieswereconductedacrossashorttimeframeandtimelimitations
alsorestrictedthedepthofinformationobtainedinsomeinterviews.Finally,duringthefacetoface
interviews,somerespondentswereunabletoanswerallquestions,sotherearevariableresponseratesto
thesurveyquestions.
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2.0 Singapore–Marketvisitfindings
2.1 Supplychainfindings–Importerdistributors
SiximporterdistributorswereinterviewedinSingapore.Representativesfromeachofthese
businessesprovidedinsightintotheirbusinessoperations,capabilitiesandbuyingrequirements
forfreshavocados.Asummaryoftheirfeedbackisreportedbelow.
2.1.1 Procurementanddistribution
ThesixmajorimporterstradedinavocadosmainlyfromAustralia,NewZealandandMexico.The
percentagesourcedfromeachcountryislargelydependentonseasonality,supplyavailabilityandpriceand
isnotconsistentthroughouttheseason.Despitethis,supplyiscurrentlybeingsourcedpredominatelyfrom
AustraliawiththreeimporterssourcingtheiravocadosupplysolelyfromAustralianexportersduringthe
Australiansupplyseason.Occasionally,somesupplyisalsosourcedfromexportersbasedatthe
SydneyandMelbourneMetropolitanWholesaleMarkets.Coliman࿗wereidentifiedasoneofthekey
suppliersfromMexicowithColimanbrandedproductobservedduringvisitstothedistributionfacilitiesof
importersandmajorsupermarketchains.
MexicanHassvariety(Coliman)importedbySingaporeandistributors
ImportersindicatedthatAustralia’sabilitytosupplyhighquality,freshproduce(airfreighted)isseenasa
keyadvantageoverMexicanproduct,whichisfreightedbyseaandtakesaround30daystoarrive.
Mexicanproductqualityisoftenpooronoutturnasthefruitisolderwhenitarrives.Itoftenhasinternal
qualityproblemssuchasvascularbrowninganddiscolourationoftheflesh. Theuseofwaxingon
Mexicanavocadosappearstoimpactontheflavouroftheavocadosastheyareunabletorespire
(breath).
Colimanavocados(seafreightedfromMexico)showingvascularbrowning
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DuringperiodswhensupplyfromAustraliaislimited,importersgenerallysourcedavocadosfromNew
Zealand,MexicoandtoalesserextentUnitedStates,Israel,IndonesiaandSouthAfrica.Oneimporter
confirmedthat“Australiahasakeycompetitiveadvantageoverothersupplierstothemarketwiththe
abilitytoprovidestrongtechnicalexpertiseandresearchanddevelopmentsupportservices.”
ThisimporterwashighlyscepticalaboutthequalityofseafreightedproductfrommajorSouthAmerican
supplierssuchasMexicoandChileandwasreluctanttopurchasetheirproductbecauseofthequality
defectscommonlycausedbythelengthytransitperiodviaseafreight. Thespeedyandrelativelylowcost
ofairfreighttoSingaporeandAustralia’slongsupplyseason(almost52weeksoftheyear)wereseenas
otheradvantagesofsourcingproductfromAustraliansupplierswhencomparedtocompetingcountries
ofsupply.
HassandShepardavocadosarethetwovarietiescommonlyimportedintothemarket.Hassispreferredby
allimportersinterviewed,asitisbetterknown.Someimportersindicatedthatfeedbackfromtheirmajor
retailcustomerssuggestsHassavocadosarepreferredbyconsumersinthemarket,asthisvarietyis
consideredmoreflavoursome,withahigheroilcontentandcreamiertexturewhencomparedtogreenskin
varieties.
ShepardavocadosaremorecommonlyimportedduringthemonthsofDecemberandJanuarywhensupply
ofHassfromcountriesotherthanAustraliaislimited.SupplyofavocadosfromAustraliaispredominately
theHassvarietyfromAprilthroughtoFebruary.AustralianShepardavocadosfillthegapinsupplyof
AustralianHassduringthemonthsofFebruaryandMarch.
AllsiximporterssupplyavocadostoSingapore’smajorretailersandfoodserviceoutlets,althoughtwo
importershaveastrongerfocustowardssupplyingwholesalers,smallerretailers(wetmarkets)andre
exportingtoneighbouringmarketssuchasMalaysia.
Mostimportersgenerallypurchaseacombinationof5kgsinglelayertraysand10kgbulkcartonsineach
consignment(withthemajorityofconsignmentsmadeupofsinglelayertrays). Itisestimatedthatthese
importershandlebetween5080%oftotalavocadoimportsintoSingapore(between450and780
tonnes).
MexicoandSouthAfricaaregenerallyabletosupplyavocadosatamuchcheaperpricecomparedto
Australia(approximately$16/5kgcarton)andthispriceisgenerallyconsistentthroughouttheseason.In
contrast,thepriceofAustralianavocadosfluctuatesconsiderablythroughouttheseason.Importers
interviewedindicatedthattheyarehighlyfrustratedbyregularchangesinpricingbyAustraliansuppliers,
particularlywhensourcingproductfrommetropolitanwholesalemarkets.
2.1.2 Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
Allimportershaveapreferenceforsmallersizedfruit,count28–32/5kg(netweight)cartonorcount55
/10kg(bulk)carton.Avocadoconsignmentspurchasedbyimportersweregenerallymixedconsignments
ofsinglelayertrays(5kg)andbulkcartons(10kg).Smallerfruitiswellacceptedbyretailersandconsumers
inSingapore,asitischeaperthanlargesizedfruitandthereforesellswellinthispricesensitivemarket.
Mostcompaniespreferavocadostoarrivefromtheexporterinstageoneortwoofripeness(hardgreen
orforestgreenandrubbery).Hard,greenfruithasbeenthepreference,asitallowsimporterstosell
avocadosatthisstageormanageripening(bytemperaturewithorwithoutethylene)accordingtotheir
individualcustomerrequirements.Importersinterviewedindicatedthatmostretailersprefertheir
avocadostoarrivehardgreen(ripenessstageonehard)inordertoprolongproductshelflifeand
minimisewastage.
Mostimportersstatedthattheywerestrictregardingqualityissuessuchasskinblemishes,rotsor
bruises.Importersindicatedthatexternalappearanceisveryimportanttotheconsumerandthenatural
preferenceisfor‘goodlookingfruit’.Qualityspecificationsaredictatedmoresobytherequirementsof
retailcustomersthanbyfoodservicecustomers.Despitethis,importerswerewillingtoacceptminimal
blemishes.
Skindefectscausedbyfruitruborsundamagearenotconsideredamajorqualitydefect.Similarly,fruit
shapewasnotconsideredacriticalissue.Thenaturalpreferenceisfor‘pearshapedfruit’however
roundedfruitisalsoacceptable.Consistencyinshapeandsizepertrayistheimportantfactor.
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Mostimporterspreferproductpackagedlooseincartonsandperformtheirownprepackingattheir
distributionfacility.Severalimporterspreferredproductprepackedinpunnetsorbagsoffourpieces,
especiallyduringpromotionalperiodswhereproductordersaresignificantlyhigherthanusual.
2.1.3 Logistics–storagecapacity,producthandling,ripeningandtransportation
Allimportersinterviewedhadstoragefacilitiesof
varyingqualityandcapacity. Oneimporterhasan
excellentstoragefacilitybutnoripeningfacilities,while
anotherimporterhasdevelopedamobileforcedair
coolingunitandanethylenegeneratortousefor
ripening. Mostimportersperformtheirownpre
packing.
Onlyoneimporterdidnothaveastoragefacility.For
thisimporter,productisgenerallytransporteddirect
fromtheairportorshippingporttotheircustomerwith
aqualityinspectiontakingplaceattheport.This
importerreliesheavilyontrustintheirsuppliersthat
productprocuredwillmeetthespecificationrequested.
RipeningofavocadosbySingapore’smajorimporters
haspredominatelybeenmanagedusingtemperature,
usuallyatambienttemperature(3032oC)andfruitcanContainersbeingunloadedatanimporter’sDC
takeupto10daystobegintocolour/soften.Bythisstage
fruitmaystarttorotfromthehighripeningtemperatures.Someimportersarestartingtoripenavocados
underthecorrectripeningtemperatureof1620oCasaresultofGMIfundedavocadotrainingactivities.
Noimporterscurrentlyhavetheirownripeningfacility,butsomehaveaccesstofacilitiesifrequired.As
previouslymentioned,oneimporterisnowusinganethylenegeneratorandforcedaircoolertomanage
temperatureduringripening. Twootherimportersalso
expressedinterestinsettinguparipeningroomattheir
distributioncentres.
Oneimporteraside,allmajorimportersstoreavocados
for1–14daysbeforedispatchtotheircustomers
(storageperiodsdependondemandfromcustomers).
Storagepracticesvariedamongstimporters,butall
importerscoldstoredavocadoconsignmentsat15oC
uponreceivingconsignments(priortoripening).
Whilestoragepracticesupheldbyimportersaregenerally
satisfactory,inconsistencieswereidentifiedin
temperaturemanagementpracticesamongstimporters
withsomecompaniesholdingavocadosattemperatures
eitheraboveorbelowrecommendedlevelsandother
companiesmismanagingavocadoripening.
AvocadosfromAustraliabeingheldatambient
temperatureuponarrivalatanimporter’sDC
Itwascommonpracticeforimporterstoholdavocadosincoldroomswithotherfruitandvegetable
productsthatrequiremuchcoolertemperaturestopreventrapiddeterioration.Thisisbecausetheydid
nothavesufficientstoragecapacitytostoretheiravocadosseparately.Theseimporterswereadvisedof
thepotentialriskofdevelopingchillinginjuryifthispracticeiscontinued.
2.1.4 Consumptiontrends
ImportersindicatedthatavocadoconsumptionisslowlygrowinginSingaporewithmarginalincreasesin
volumespurchasedbycustomersinbothretailandfoodservicesectorsinrecentyears.Oneimporter
affirmedthegrowthinconsumptionofavocadosinSingaporebystatingthat“thereisagreater
awarenessofavocadosinthemarketandmoreconsumersarelearningabouthowtouseavocadosina
varietyofways.”
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ThisgrowthtrendissupportedbyimportstatisticsprovidedbyAustradeSingapore,whichillustratea
steadyincreaseinavocadoimportsinrecentyears.In2009,Singaporeimportedover900tonnesof
avocado,anincreaseofover300tonnessince2007.Accordingtoanotherimporter,recentgrowthin
avocadoimportsintoSingaporehasbeendrivenbytrendsinhealthyeating,whichhasseenhealth
consciousconsumerspurchasemorefruitandvegetables.
Someimportersattributedgrowthinavocadoconsumptiontoagrowingexpatriatepopulationin
Singapore,whichhasseenastrongshifttowardswesterncuisineinrecentyears.Westerndishesthat
utiliseavocadosincludingguacamole,salads,dipsandspreadsandbabyfoodarenowrecognisedin
Singaporeaspopularwaysofconsumingthisfruit.
Furthermore,importerswithastrongfocusonthefoodservicesectorstatedthatanincreaseinthe
numberofJapaneserestaurantsinSingaporehasalsohadanimpactonavocadoconsumption,with
avocadobeingakeyingredientinmanysushidishes.Similarly,Singapore’slargeChinesepopulationare
alsogainingwiderexposuretoavocadoswithmanyChineserestaurantscommonlyusingavocadosin
desertssuchaspuddings.
ImportersalsoagreedthatconsumptiontrendsareheavilyinfluencedbytheSingaporeanpalate.One
importerindicatedthat“consumersinSingaporeprefersweetflavoursandliketouseadditivessuchas
creamandsugarwithavocado.”TheimporterexplainedthattheaverageSingaporeanconsumer
perceivesavocadoashavingnodistincttaste,butitdoeshaveacreamytexture,whichiswhyavocado
milkshakesareapopularwayofconsumingavocado.Avocadomilkshakesnowfeaturecommonlyonthe
menuatmostjuicebarsinSingapore.
Despitethis,mostimportersagreedthatalackofknowledgestillexistsamongstalargenumberoflocals
whoarenotawareofhowtouseavocadosandthemanyalternativemealoptionsforthisproduct.Many
Singaporeanconsumersalsocarrymisconceptionsabouttheproduct,particularlyregardingitsnutritional
value.Oneimporterstatedthatmisleadinginformationpublishedinthemedia(labellingavocadosas
‘butterfruit’highinfatandcholesterol)wasamajorcauseofconsumermisconceptionsinthemarket.
Theybelievethatfurthergrowthinthemarketmaybestimulatedbyeducatingtheseconsumersabout
thehealthbenefitsofavocadosandthrough
promotionalcampaigns.
Importersindicatedthatfurthergrowthinthe
consumptionofAustralianavocadoswillbeheavily
influencedbypriceasSingaporeisapricesensitive
market.Oneimporterconfirmedthisstating“Ifthe
priceofAustralianavocadosisequaltoorslightly
higherthancompetingcountriesofsupplythen
Australiansupplierswillmostlikelyhavecomplete
dominanceoverthemarket.However,iftheprice
differentialisgreaterthan10%,cheapersuppliers
(predominatelyfromSouthAfricaandMexico)will
continuetomaintainahealthyshareofthemarket.”
2.1.5 Marketing–Brandingandpromotion
Promotionalstaffrehearsingatypicaldayatthe
officeduringDEEDI’smerchandisingtraining
Allimportersexpressedinterestinreceivingmarketingsupporttobetterassisttheirretailcustomersin
boostingsales.Pointofsaleeducationalandpromotionalmaterialsuchasrecipebooklets,postersand
brochuresdetailinghealthinformationwererequestedtoassistwithinstorepromotionalactivitiesat
retailoutlets.
Twoimporterscurrentlycontractpromotionscompaniestoassisttheirretailcustomerswithinstore
promotionalactivities.Thepromotionsstaffspecialiseinconductinginstoredemonstrations,specifically
illustratinghowtoprepareandusefoodproductsandprovidesamplestocustomers.
Importersindicatedthatpromotingbrandawarenessinthemarketwasnecessaryinordertodrivethe
messagetoretailerstosupportAustralianavocados.TheideaofproducingpostersusingtheAvocados
AustraliaLimitedconceptofamorphedavocadodesign,butintheshapeofAustraliawassuggestedby
oneimporter.
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Importersappearedveryenthusiastictopromotetheawarenessofavocadosinthemarket.Thiswas
particularlyobviousduringthemarketvisitwhereimportershadpreparedavocadorecipesfor
participantstosamplethroughouttrainingsessionswiththeirretailcustomersandcontractpromotions
staff.Avocadodrinksandguacamoleweretworecipespreparedbyimporter’smarketingstaffthroughout
avocadotrainingsessions.
Promotingavocadodrinkssuchasavocadomilkshakeswassuggestedbysomeimportersasaneffective
methodofappealingtothesweetpalateofSingaporeanconsumers.Theyindicatedthatusinghoney
ensuredthehealthaspectofthekeyingredientismaintainedandthatthesedrinkscouldbepreparedfor
samplingduringinstorepromotions.Accordingtosomeimporters,Singaporeanconsumersgenerally
consideravocadostohaveaneutralflavour.Theimagesbelowillustratethevarioususesofavocadosin
mealsandbeveragesinSingapore.
Recipe – Singapore’s avocado milkshake
Addalltheingredientsbelowandmixinablender
ƒ 2Avocados
ƒ 500mloffreshmilk
ƒ 4teaspoonsofhoney
ƒ ¼banana
ƒ Squeezejuiceof¼lemon
Avocadomilkshakeandguacamoledippreparedbyimporters’marketingstafftoillustratedifferentusesofavocado
AvocadofeaturedineverycourseofthemenuataGMIavocadohandlingandmerchandisingtrainingsessionand
luncheonheldwithaleadingimporterinSingaporeandtheirmajorretailandfoodservicecustomers
15
2.2 Supplychainfindings–Retailandfoodservicebusinesses
FourretailersandtwofoodcatererswereinterviewedinSingaporeandprovidedinsightintotheir
businessoperations,capabilitiesandbuyingrequirementsforfreshavocados.Asummaryoftheir
feedbackisreportedbelow.
2.2.1 Procurement
ThemajorretailersandfoodserviceoperatorsinSingaporesourceavocadosthroughthesixmajorfresh
produceimportersmentionedpreviously.Therearenoretailerscurrentlybuyingdirectfromavocado
growers/packersorAustralianavocadoexporters.Asthemarketisrelativelysmall(withonlyfourmajor
supermarketchainsandseveralmajorfoodcaterersoperatinginthemarket),mostimporterssupplythe
sameretailersandfoodcaterersasthatoftheircompetitors.
Retailersindicatedthattheywillgenerallysourceavocadosthroughaprimarysupplier,andwillonly
sourceavocadoselsewhereifproductisunavailablefromtheirpreferredsupplier.Allmajorsupermarket
chainsfocusonstockingtheHassvariety.SmallervolumesofShepardorFuertearegenerallysourced
whenHassisunavailable.Themajorsupermarketretailersinterviewedindicatedthatavocadosalesare
notconsistentthroughouttheyear,butfluctuatefromweektoweek.
Inconsistenciesinavocadosalestrendsmaybeattributedtothefactthatavocadosarenotastaplefood
itemformostSingaporeanconsumersandthereforeconsumersgenerallypurchasesmallvolumes,less
frequentlyorimpulsively.Thecategorybuyeratonemajorretailersaidthat“avocadosarenotconsidered
asavolumedriverformostmajorretailersbutratherserveasaprofitgenerator,althoughpromotional
periodsaregenerallyeffectiveindrivingavocadosales.”
Onaverage,retailersmarketHassandShepardvarietiesforSGD$1.40$1.80/piecethroughoutthe
year,butpricescandropaslowasSGD$0.99orspikeashighasSGD$2.50/piece.Majorretailchains
purchasepredominatelyAustralianorMexicanHassavocados.Theseretailersindicatedapreferencefor
Australianproductasitisconsideredsuperiorquality.Theywillgenerallyonlypurchaseavocados
importedfromMexico,SouthAfrica,IsraelorIndonesiaifAustralianproductisnotavailable.
MajorhotelchainsoperatinginSingaporearealsoregularusersofavocadosandarekeycustomersfor
Singapore’smajorimporter/distributors.Consumptionofavocadosinthehotelsectorisvariable
throughouttheyearandvolumespurchasedwillgenerallyfluctuatefromweektoweekbasedonmenu
planningcarriedoutbythehotel’sExecutive/SousChefs.Hotelfunctionsandeventssuchasweddings
andbusinessseminarscanalsoinfluencethevolumeofavocadospurchased.
2.2.2 Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
AllretailershaveapreferenceforsmallersizedHass(count2832)packedlooseintraysorprepackedin
punnetsorbagsofthreeorfourpieces.Interviewsidentifiedthatdemandforlargerfruitwilldepend
largelyonprice.Retailerspreferredhardtorubberyfruit(stageonetotwocolourrating)withuniform
shapeandminimalblemishing.Productthatistooforwardorwithrotsorconsiderableblemishingis
generallyrejected.
BothHassandShepardvarietiesareconsideredsuitablefortheSingaporemarket.However,Hassisthe
preferredvarietyforitstasteanddurability.Itsthickskinmeansthatithasalongershelflifethanother
varietiesandislesssusceptibletodamageintransitandhandling.Hassisknowntohaveahighoil
contentandmeatyflesh,whichoffersgreaterflavourthanothervarieties.
Accordingtoonemajorretailer,thepreferenceforhardgreenfruitatretailisofteninfluencedby
consumerpurchasingbehaviourwheretraditionallythemajorityofSingaporeanconsumerspreferto
purchasegreen/unripenedfruitbecausetheyconsiderittobefresherthancoloured/ripenedfruit.
Anothermajorretailerstatedthatmorerecently,someretailershavetrialledmixpacksofunripenedand
semi/fullyripenedfruitwithpositiveresults.Theretailerstatedthatalthoughthegeneralpreferencefor
hardgreenfruitremains,thecultureamongstconsumersappearstobeslowlychangingwithmore
consumersunderstandingthebenefitsofpurchasingpreripenedfruit.
16
Retailbuyersengagedindicatedthatmostfoodserviceoperatorspreferpurchasingavocadoseithersemi
ripenedorfullyripened(ripenessstagesfour,fiveorsix–firmripetosoftripe),astheyaregenerally
requiredforimmediateornextdayuse.Thelevelofripenessrequiredwilldependlargelyonmenu
planningandthewayinwhichtheavocadosarebeingprepared.Forexample,hotelsandrestaurants
generallyrequirefullyripefruitforjuicingandformealssuchassoupsanddips.
2.2.3 Logistics–storagecapacity,producthandling,ripeningandtransportation
Retailersconductaqualityassessmentofproductonarrivalattheirdistributioncentre.Ordersaremost
commonlyrejectedbyretailersforbeingtooripe.Thisisgenerallyduetomiscommunicationbetweenthe
receivingofficeratthedistributioncentreandthefruitpurchasingofficer(ifconditionedfruitisrequested).
Forlargerretailsupermarketchainsproductissentdirecttotheirrespectivedistributioncentreswhereit
ischeckedandstoredbeforebeingdistributedtotheirstoresinrefrigeratedtrucks.Forsmallerretail
supermarketchainsproductissentdirecttotheirretailstores.NTUCandColdStoragereceiveavocado
ordersonadailybasis(sometimestwicedaily),astheirdistributioncentresarenotlarge.Carrefour
generallyreceivesorderslessfrequently(eitheronceortwiceaweek)
2.2.4 Consumptiontrends
NTUCandColdStoragehavestoresthattargetdifferentmarketsegments.Thehighendmarketsegment
istargetedbyNTUCFairpriceFinestoutletsandColdStorageMarketplaceoutlets,whicharelocatedin
theCBDorareassurroundingtheCBD.Thissegmentofthemarketconsistslargelyofexpatriateand
wealthySingaporeanconsumerswithhighdisposableincomeswhoarewillingtopaymoreforpremium
qualityproducts.ThemainconsumersofAustralianavocadosarehighincomeconsumersseekingto
purchase‘quality’over‘price’.
ThemediumtolowendsegmentofthemarketistargetedbyNTUCFairpricesupermarketsand
hypermarkets,ColdStoragesupermarketsandhypermarkets,Carrefourhypermarkets,Giant
hypermarketsandShengSiongSupermarkets,whicharelocatedinneighbourhoodareasawayfromthe
centralcitydistrictandofferlowerqualityproducts.
Thissegmentofthemarketconsistslargelyoflocal
consumerswithrelativelylowdisposableincomes
seekinglowerpricedproducts. Theyarethemain
consumersofavocadosimportedfromMexico,South
African,IsraelandIndonesia.
2.2.5 Marketing–Brandingandpromotion
Thefourretailersinterviewedarecommittedto
runningmarketingcampaignsincludinginstore
sampletastingactivities,advertisinginnewspapers
andprovidingrecipeideasforconsumers.Some
retailersundertakeinstorepromotionalactivities
usingtheirownretailstaff,whileotherretailersrely
onpromotionalsupportfromimporterswhocontract
promotionalteams.
Instorepromotersoperatingataleadingretailer
50
2.3 Avocadosupplychainmap
AvocadosareimportedbySingapore’smajorfreshproduceimportersanddistributedinto
wholesale,retailandfoodservicesectorsinSingapore.Figure2illustratesatypicalavocado
exportsupplychainfortheSingaporeavocadomarket.Themostcommondistributionchannels
arehighlightedusingthethick,fullline,whilelesscommonchannelsarehighlightedusing
brokenlines.
Figure2–AtypicalavocadoexportsupplychainfortheSingaporeavocadomarket
18
3.0 Malaysia–Marketvisitfindings
ThefollowingsectionpresentsthefindingsofinmarketinvestigationsincludingsurveysundertakeninMalaysia
withimportersandbriefdiscussionsheldwithretailersandfoodservicebusinesses.
3.1 Supplychainfindings–Importerdistributors
TwoimporterswereinterviewedinMalaysiaandprovidedinputintothefollowingcategories:
3.1.1 Procurementanddistribution
ThetwomajoravocadoimportersbasedinKualaLumpur
tradeinavocadospredominatelyfromAustralia,Mexico
andSouthAfrica.Theyhavealsoimportedavocadosfrom
PeruandSpaininthepast. AswiththeSingaporemarket,
thepercentagesourcedfromeachcountryisnot
consistentthroughouttheseasonanddependsonprice
andsupplyavailability.
Oneimporteristhedominanttraderofavocadosin
Malaysiaandwasthefirstimportertobringavocadosto
Malaysia.ItisalsoastrongsupporterofAustralian
avocadosandhasbeenimportingAustralianproductfor
18years.Itisestimatedthatthesetwoimportershold
over70%ofthetotalmarketshareinMalaysiafor
importedavocados(over80tonnes).
AustralianHassAvocadosheldincoldstorageat
approximately10oC
(Left)MexicanHassavocados(Colimanbrand)prepackedinnettedbagsoffourpieceswitharecipeattachedformaking
Guacamole(Right)MexicanColimanavocadosreturnedbyacustomerastheyweretooripe
Coliman࿗avocadosfromMexicoandBavaria࿗avocadosfromSouthAfricanaretwoofthemajorcompeting
brandsbeingsuppliedtothemarket.ImportershadastrongpreferenceforAustralianproduct(namelytheHass
variety),asAustraliaisseenasaconsistentsupplieroffresh,qualityHassavocadostothemarket.
Despitethis,importersindicatedthatpriceisstillacriticalfactorinfluencingthepurchasingdecisionsoftheir
customers,particularlyretailersandconsumersinthemarket,andimportersexpressedfrustrationabout
fluctuationsinthepriceofAustralianproductthroughouttheseason.AsisthecaseinSingapore,smallerfruitis
50
preferredbyretailersandconsumersinMalaysia,asitischeaperthanlargefruitandthereforesellswellina
pricesensitivemarketsuchasMalaysia.
GivenMalaysia’scloseproximitytothePacificregion,Australianproductiscommonlydeliveredquicklyandcost
effectivelyviaairfreight(AVpallets).Incontrast,productfromSouthAfricaandMexicoisdeliveredbyseain
bulkcarriercontainers(either20footor40footers).
Class1SouthAfricanBavariaavocados(count20)–Labellingoncartonrecommendsripeningat18oC
Oneimporterstatedthat“fortheaveragelocalMalaysianconsumer,avocadosaretoocreamyandtoo
expensive(MYR56onaverageeach).Pricealsofluctuatesoftenbutmoresoaroundyearendduringthechange
ofsupplyfromHasstoShepard.”TheabilityofcompetitorssuchasSouthAfricatosupplysuitablequality
productconsistentlyatalowerpricealsoposesasignificantthreattoAustralianexporters.
Accordingtothisimporter,SouthAfricahasroughlythesamesupplywindowasAustralia.TheycansupplyHass
avocadosbetweenAprilandFebruaryeachproductionseasonandoftenfillthegapinsupplyduringMarchwith
theFuertevariety.TheimporterindicatedthatSouthAfricanexporterssupplysignificantvolumestosomeofthe
majorretailersinthemarketandthereforetheyfinditveryhardtocompetewithavocadosimportedfrom
SouthAfrica.
OnemajorretailchainisalsoseenasamajorcompetitortoleadingimporterstradingavocadosinMalaysia,with
theretailerimportinga20footseacontainerdirectfromgrowersinSouthAfricaonaweeklybasis.Theysell
theseavocadosforaslowasRM1.99(approximatelyAUD$0.65).Thisretailersourcesavocadospredominately
fromSouthAfricaduringtheirpeaksupplyseason(April–September).Theypurchaseverysmallvolumesof
Australianavocados,butstillbuysomeAustralianproductthroughouttheseasonwhenSouthAfricanproductis
notavailable.Giantgenerallylooktopurchasecheaperpricedproducts,butpurchasesignificantvolumes.Giant
arealsoveryactiveinproductpromotions.
Bothimportersgenerallypurchaseacombinationof5kgsinglelayertraysand10kgbulkcartonsinatypical
consignment.TheleadingImporteriscurrentlyimportingamixedAVconsignmentweekly(approximately
250275cartonsor1–2tonne/weektotallingover70tonneannually).Theothermajorplayerimportssmaller
volumeslessfrequently.Consignmentsorderedusuallyrangebetweenoneandtwopalletsof5kgtrays
(approximately200x5kgcartonsonceeverytwoweeksoraround23tonnesannually).
20
DuringtheChristmasperiod,bothimporterswillgenerallydoubletheweeklyvolumeoftheirorders.
MixedconsignmentofAustralianHassavocados(singlelayertrayandbulkcartons)atanimporter’sDC
Bothimporterssupplytheretailandfoodservicesectorsofthemarketalthoughtheyeachservicedifferent
segmentswithinthesesectors(seefigure3,pp26).Theleadingimporterfocusestheiravocadodistribution
towardMalaysia’smajorsupermarkets,whichaccountsforaround60%oftheiravocadosales(around150–
180cartonsperweek).Theyarenotcurrentlysupplyingavocadostowholesalers.Theyapplya15%markupon
allproducetoretailersand810%markuptowholesalers.
Thevolumeofavocadoordersdespatchedtoretailcustomersvaryandaregenerallybasedontheretailer’s
weeklysalesperformanceandtheirexistingstocklevels.Mostretailerspurchasesmallerordersdailyorseveral
timesthroughouttheweek,asopposedtoonelargeweeklyorder.Forlargerretailchains,ordersarealways
sentdirectlytotheirdistributioncentreswhileforsmallerchainsproductissentdirecttotheirindividualretail
outlets.
Thefoodservicesectoralsoaccountsforasignificantportionofthisimporter’savocadosales.Theirmajor
customersinthefoodservicesectorincludehotelchainsbasedinKualaLumpursuchasShangrilaand
Renaissance,JapaneserestaurantslikeSushiKingandairlinecatererssuchasSATSCatering.Combined,they
accountfortheremaining40%ofavocadosales(100–120cartons/week).Hotelandrestaurantcustomers
oftenpurchase10kgbulkcartonsforgreatervalue.Theirordersaregenerallymadeonceortwiceaweek.
Around60%ofimportedavocadosaredistributedthroughoutKualaLumpur.Theremaining40%isdistributed
toNorthernandSouthernprovincesoutsideofKualaLumpur.Productistransportedviarefrigeratedtrucksfour
daysaweek.Thedominantimporterhasafleetofover20truckswithaloadcapacityrangingfrom410
tonnes,whichcarrymixedordersofproduce,heldat5–8oC.Thisimporteralsosendsproductviaairtoeast
MalaysiaKotaKinabaluandKuchingcitiestwiceweekly.
Incomparison,theotherimporter’sbusinessisspecificallytargetedatconsumersthatareinterestedin
sourcinguniquepremiumqualityproductsandarepreparedtopayapremiumpriceforsuperiorquality.A
largepercentageofthisimporter’savocadosalesaredistributedtosmallretailerssuchassuburbangrocers
andmarkettraders,hawkervendorsandindividualconsumers.
3.1.2 Productrequirementsandpreferences–variety,ripeness,size,qualityandpackaging
Bothimportershaveapreferenceforsmallsizedfruit,count28–32ina5kgsinglelayertrayorcount55ina10
kgbulkcarton.Smallersizedfruitispreferredbymostcustomersashigherpricepointsaregenerallydemanded
forlargerfruit.Largerfruitisrarelypurchasedbyimportersandisgenerallyonlysuppliedtopremiumretailersin
locationswheretherearehighnumbersofexpatriatesthatarewillingtopayapremiumprice.
21
Avocadoconsignmentspurchasedbyimportersoftenrangefromentireconsignmentsof5kgtraystomixed
palletsof5kgtraysand10kgbulkcartons,howeverconsignmentspredominatelyconsistof5kgsinglelayer
trays.5kgtraysaregenerallydistributedtoretailcustomers,while10kgbulkcartonsarepreferredbyfood
servicecustomers.
Bothimporterspreferavocadostoarrivefromtheexporteratstageoneortwooftheripeningprocess.Hard
andgreenfruitispreferred,asitallowsimporterstomanageripeningaccordingtotheirindividualcustomer
requirements.Bothimportersindicatedthatmostoftheirretailcustomerspreferhardandgreenfruit.They
stressedtheneedtochangethementalitywithintheretailsectorandtoeducateretailbuyerstoproduct
managesothattheirmajorretailcustomerscaneffectivelyhandleripenedfruit.
Currently,itiscommonforretailerstorejectordersbecauseproductistooripe.Accordingtooneleading
importer,“themajorchallengewithsupermarketcustomersisthatwhilecategorymangersmayordersome
preconditionedfruitinaparticularorder,theindividualsupermarketstorescontinuetorejectcolouredfruitat
arrivaltotheirstoretheissueliesmoresowiththereceivingofficeratthestockarrivalpointandnotthe
purchasingofficer.”
Foodservicecustomersgenerallypreferavocadossoftandcoloured(ripeningstagesfourorfive).Thelevelof
ripenessrequiredoftenvariesaccordingtoindividualcustomersandtheirmenuplanning.Importersindicated
thatsomefoodserviceoperatorsprefertopurchaseavocadossemiripenedandmanagetheripeningprocess
themselvesaccordingtotheirindividualneeds.
PremiumAustralianHassavocados(count28)suppliedtoanimporterinMalaysia
Thetwoimportersinterviewedarereasonablylenientregardingqualityissuesthataffecttheappearanceofthe
fruit.Bothmentionedthatblemishedfruitwasmorelikelytoberejectedbyretailcustomerswhotendtobe
concernedmoresowithproductappearance,asopposedtofoodservicecustomers.Solidblemishesfromwind
rub,sunburn,insectdamageorhaildamagearenotconsideredsignificantissuesfortheseimportersaslongas
defectsarewithin15cm.
Bothimportersindicatedthattheywouldrejectproductiftherewas:
x anunevenbalanceofmisshapenfruitinatray
x largepatchesofskinblemish(greaterthan5cm)
x anumberofinsectstingsperpieceoffruitineachtray.
Vascularbrowningandfleshdiscolourationaremoreofanissueforfoodservicecustomers.Rejectiondueto
vascularbrowningandfleshdiscolourationdependslargelyonthechef(orbuyerwithinthefoodservice
business)andhowthatbusinesspresentsavocadosintheirmeals.Irregularcolouring(patchesofdarkerand
lightergreencolouronskin),redskins,chimera,skinspottingandshrivel(dehydration)isnotanissuesolongas
itisnotexcessive.
22
Bothimporterspreferproducttoarrivelooseincartons.Oneleadingavocadoimporterperformsprepackingat
theirdistributioncentre,whiletheotherdoesnotprepack.Foroneimporter,theirproductrangeisfocused
awayfromstaplegoodswhereinhouseprepackingisrequired.Inturn,theirrangeisfocusedonpremium
productwhichgenerallyarrivesprepackedinattractivegiftpacks.
3.1.3 Logistics–storagecapacity,producthandling,ripeningandtransportation
Thetwoimportershaveexcellentstoragecapabilitywithlarge,moderndistributioncentres.Theirfacilitieshave
significantstoragecapacitywithlargecoldroomsusedforimportedfruitandvegetables(eachwithastorage
capacityinexcessoften40footcontainers)andsmallersizedcoldroomsusedtostocklocalproduce,sourced
predominatelyfromtheMalaysianhighlands.
Storageandpackingfacilitiesataleadingimporter’sDistributionCentreinKualaLumpur
Animporter’swholesalesectionatPasarBorongequippedwithcoldroomfacilities
23
Consignmentsbeingunloadedintostorageatanimporter’sdistributioncentrenearPasarBorongWholesaleMarkets
Asneitherimporterhasaccesstoaripeningroom,ripeningiscurrentlybeingmanagedbytemperaturewhere
avocadosareheldat16–20oCforanumberofdays.Beforedispatchingavocadoorderstotheircustomers,
bothimportersstoreavocadosincoldstorage.Storagepracticesvariedslightlybetweenthetwoimporters.In
somecasesavocadoswereheldatsuboptimumtemperaturesofbetween05oCforanumberofdays.
Duringaninspectionofimporter’sdistributionfacilities,akeyissuewasidentifiedwithvariationsinthestorage
temperatureofavocadosbeingheldinthesamecoldroom.Inparticular,avocadosstoredonthetopshelfofthe
coldroom’spalletrackrecordedaslightlyhighertemperaturereadingthanproductstoredonthebottomshelf.
Malaysia’sdominantavocadotraderdistributesfreshproduceincludingavocadostocustomersinKualaLumpur
andotherdistrictsinNorthernandSouthernMalaysia.Productispredominatelydistributedviarefrigerated
trucks,whichtravelapproximatelysixhoursviaroadtoPenangandothernorthernregionsandapproximately
fivehourstosoutherndistricts.AirfreightisalsousedtodelivertocustomerslocatedonMalaysianIslands.Both
businessesowntheirownrefrigeratedtruckfleet,whichareusedforfreightingproduce.
3.1.4 Marketing–Brandingandpromotion
Malaysia’sleadingavocadotraderishighlyactiveinthe
promotionofproductlineswhichtheysupplytotheirretail
customers.Thisimporterhasitsowninhousepromotionsteam
conductinginstorepromotionalcampaignswiththeir
supermarketcustomers.
Theimporterappearedveryenthusiasticaboutpromoting
awarenessofavocadosinthemarketandstatedthat“support
fromexportersthroughthesupplyofpointofsaleeducational
andpromotionalmaterialsinadditiontopromotionalactivities
suchas‘instoresampling’and‘promotionalsales’willencourage
consumptionandhelptobuildawarenesswithlocalconsumers.”
Animporterinspectsacontainerloaduponarrival
athisstoragefacility
Theimporterhasnotconductedanypromotionsforavocados
withtheircustomerstodate,howevertheyhaveheldpromotionsforothercommoditiessuchasstrawberries,
mangoesandpotatoes.Accordingtotheimporter,promotionsheldinthepasthavebeenveryeffectivein
boostingsalesfortheirbusiness.Theyindicatedthereisaneedtoworkcloselywiththoseretailcustomersthat
arehighlyactivewithproductpromotions.
Theyalsostressedtheneedtoemphasise‘methodofdelivery’tothemarketasapointofdifferencein
promotionalactivities,withregularshipmentsofAustralianproductdeliveredfreshbyair.Theimporterfeelsthat
thiswillhelptobuildconfidencewithretailers,thatalthoughfruitmaybedeliveredwithsomecolour,itisstill
fresherthangreenfruitfromcompetitorssuchasMexicoandSouthAfrica,deliveredbyseafreight.
24
3.2 Avocadosupplychainmap
AvocadosareimportedbyMalaysia’smajorfreshproduceimportersanddistributedintowholesale,
retailandfoodservicesectorsinMalaysia.Figure3illustratesatypicalavocadoexportsupplychainfor
theMalaysiaavocadomarket.Themostcommondistributionchannelsarehighlightedusingthethick,
fullline,whilelesscommonchannelsarehighlightedusingbrokenlines.
Figure3–AtypicalavocadoexportsupplychainfortheMalaysiaavocadomarket
25
4.0 Marketobservations
Duringthevisit,marketintelligencewasgatheredthroughgeneralobservationsoftheretailandfoodservice
marketandconsumerpurchases.Visitswereundertakentoleadingsupermarketanddepartmentstorechainsto
obtaininformationontheavailabilityofavocadosaswellasinformationpertainingtopricing,qualityand
packagingofavocados. Formoreinformationrefertoimagesbelow–pp2739.
4.1 KeyfindingsfromretailandfoodserviceobservationsinSingaporeandMalaysia
KeysimilaritiesbetweenSingaporeandMalaysiamarkets:
x
Hasswasthedominantvarietyinthemarketandpreferredbycustomers.Itisconsideredmore
flavoursome,withahigheroilcontentandcreamiertexturewhencomparedtogreenskinvarieties(Shepard
andFuerte).Hassisalsopreferredascustomersfounditeasiertodeterminelevelofripenessthroughskin
colourchange.
x
Themajorityofavocadosdisplayedatretailoutletswerehardandgreen,withverylittleconditionedfruit
available.
x
Avocadosweremostlydisplayedlooseinbasketsorislanddisplayslocatedinsupermarketisles,butsome
storeskeptavocadosinrefrigeratedcabinetseitherlooseorprebagged(whilestillhardandgreen)to
prolongshelflife.
x
TheavocadomarketsinSingaporeandMalaysiaweredominatedbyAustralianHassavocadosduringthe
May/Juneperiod.OthermajoravocadosupplierstothemarketincludeSouthAfrica(Bavariabrand),Mexico
(Colimanbrand),Israel,IndonesiaandNewZealand.
x
Australianavocadosarepreferredasqualityisconsideredsuperior.However,buyerpurchasingdecisionsare
heavilyinfluencedbyprice.
x
Thereislittleornocountryoforiginlabellinginmostsupermarketstores.Thiscreatesconfusioninthe
marketasconsumersarenotabletodifferentiateproduct.Someretailershavecountryoforiginlabellingin
theirstores.
x
SingaporeanandMalaysianconsumersinthelowtomiddleendsegmentofthemarketarehighlyprice
consciousandfortheaverageconsumeravocadosaretooexpensive.
x
InbothSingaporeandMalaysia,productdisplayedinsupermarketandhypermarketstorestargetingthelow
endsegmentofthemarketwaslargelyunpackagedanddisplayedonshelfloose.Inoutletstargetingthe
middleandhighendsegmentsofthemarket,productwaslargelyprepackedwithgenerallyonlysomestaple
fooditemsdisplayedonshelfloose.
x
AvocadomilkshakesareapopularwayofconsumingavocadosinSingaporeandMalaysiaandareseenasa
refreshingbeveragetocombatthehotandhumidweather.Theyareparticularlypopularamongstyounger
consumers.Avocadomilkshakesfeaturecommonlyonmenusinjuicebarsinbothmarkets.Withthe
openingoftheBoostJuiceFranchiseinMalaysiarecently,thistrendislikelytobuild.
KeydifferencesbetweentheSingaporeandMalaysianmarkets:
x
CountryoforiginlabellingwasmoreprominentinretailoutletsinSingapore.
x
ConsumersinSingaporearenotashighlypriceconsciousasconsumersinMalaysia.Basedonobservations
athighendsupermarketsinSingaporesuchasNTUCFairPriceFinestandColdStorageMarketplace,the
retailpriceofavocadosrangedfromSGD1.003.00perpieceandavocadossoldrelativelywellatthese
pricepoints.BasedonobservationsatretailoutletsacrossallsegmentsofthemarketinMalaysia,retail
pricesrangedfromMYR2.49–6.59perpiece(approximatelyAUD$1.00$2.20),howeveravocados
retailingaboveMYR4.00onlysoldwellinlocationsfrequentedbyhighincomeearnersorexpatriate
consumers.
26
4.1.1Singapore–Productavailability,pricingandpackaging
NTUCFairpriceFinest
SmalldisplayofhardgreenAustralianHassavocados–retailingat3forSGD3.20toencouragehighvolumepurchases
SemicolouredorganicHassavocadosinnettedbagsofthreepiecesdisplayedinthechiller
Note:AvocadosweremarketedasorganicChileanatSGD8.20perbag(approximatelySGD2.70perpiece)butsomebags
hadamixofChileanorganicandAustralianorganicproduct
27
ColdStorageMarketplace
AustralianShepardavocadosdisplayedinacentreisland,marketedatSGD2.30perpiece.
28
JuiceCorner
AjuicebarinSingaporewithavocadoonthemenuillustratesthepopularuseofavocadosinmilkdrinks
29
4.1.2 Malaysia–Productavailability,pricingandpackaging
Carrefour–retailingavocadosfromAustralia
AustralianHassavocados(withsomeskinblemishing)onsaleforMYR6.59perpiece(approximatelyAUD$2.20)
Note:countryoforiginlabellingwasnotdisplayedatpointofsalebutavocadoswerelabelledwiththe‘Australianheart
foundationtick’sticker.
30
Jusco–RetailingavocadosfromAustralia
HardandgreenAustralianHassavocadosdisplayedinthechillerpricedatMYR4.99perpiece(approximatelyAUD$1.65
each)
Mexican‘Coliman’HassavocadospackagedinnettedbagsanddisplayedinthechillerretailingatMYR11.90for4pieces
(approximatelyAUD$4.00perbag)
31
MarketplaceColdStorage–retailingavocadosfromSouthAfrica
SouthAfricanHassavocadosonsaleatMYR2.49perpiece(approximatelyAUD$0.80)
Note:Aleadingimporter’sindicatedthatColdStorageusuallyretailavocadosatRM3.49(SouthAfrican)andRM2.99
(Mexican).Onthisoccasion,MarketplacewashavingaspecialwithalargedisplayofSouthAfricanavocadospositionedat
theshopfront,retailingatRM2.49.Thiswasthelowestretailpriceofavocadosobservedduringretailstorevisitsin
Malaysia
32
MBG–retailingavocadosfromMexico
RipeHassavocadosprepackedinpacksoftwoandmarketedatMYR8.90(approximatelyAUD$3.00perpack)
InstoresignageatMBGinformingcustomersofthehealthbenefitsofavocado
33
MBG’sinstorejuicebarhasadiversedrinkmenufeaturingavocadoanditskeyhealthbenefits
34
Mercato–retailingavocadosfromAustralia
GreenAustralianHassavocadosdisplayedinthechillerat0oC,retailingatMYR5.90perpiece(approximatelyAUD$2.00)
35
UOSuperstore–retailingavocadosfromUnitedStates
USHassavocados(grownandpackedinCalifornia)showingsomecolourpricedatMYR5.90perpiece(approximately
AUD$2.00)
36
Isetan–retailingavocadosfromAustralia
HardgreenHassavocados,heavilymarked(fruitrubmarkings)
LargedisplayofAustralianHassavocados,sellingatMYR4.50perpiece(approximatelyAUD$1.50)
Note:AleadingimporterindicatedthatIsetanusuallyretailavocadosatMYR6.00butonthisoccasionweremarketedasa
ValuebuyatMYR4.50.TheygenerallystockbothHassandShepardvarieties.
37
VillageGrocer–retailingavocadosfromAustralia
OverripeWesternAustralianHassavocadosondisplay,retailingatMYR5.99perpiece(approximatelyAUD$2.00each)
Note:Villagegrocerhasclearsignageindicatingcountryoforigin(Aust)andmethodofdelivery(airflown).Thestorehad
baggedsomeavocadosanddiscountedtoclearstock.Producthadnotbeenlabelledasripeandreadytoeat.
38
Giant–retailingavocadosfromSouthAfrica
SouthAfricangreenskinavocados,sellingatMYR2.99perpiece(approximatelyAUD$0.99)
Tesco
Note:Noavocadosweredisplayedonthisoccasionastheyhadsoldout.Signageindicatedthattheywereretailingat
MYR2.99perpiece(approximatelyAUD$0.99)
39
5.0 Conclusion
TherehasbeenasteadyincreaseinavocadoimportsandconsumptioninSingaporeandMalaysiainrecentyears.
Retailandfoodservicesectorsarethekeysectorsdrivinggrowthinthesemarketswithagrowingnumberof
healthconsciousconsumersbecomingawareofwaystoconsumeavocados.Furthergrowthinavocado
consumptionisforecastinthesemarketsasgrowthinwesterneatingtrendscontinuestopromoteconsumer
awarenessandasAsianconsumerslearnaboutnewwaysofusingavocados.
AustraliacurrentlyholdsahealthyshareoftheavocadomarketsinSingaporeandMalaysiaandiswellpositioned
toincreasesupplytothesemarketsandcapitaliseonnewopportunitiesastheycontinuetogrow.Australiahasa
goodreputationforproducinghighquality,safeandenvironmentallyfriendlyfoodproductsandconsumersin
SingaporeandMalaysiaperceiveAustralianavocadostobeofsuperioreatingqualitytothatofmostcompetitors
inthesemarkets.
AsSingaporeandMalaysia’savocadoconsumptioncontinuestoincrease,thereareopportunitiesforexporting
processedavocadoproducts.Avocadodipsanddrinksarepopularwaysofconsumingavocadosinbothmarkets
andsupplyingconvenientlypackagedprocessedavocadoproductsforbothretailandfoodservicesectorscould
beanoptiontoexploreasthesemarketscontinuetogrow.
Organicandnaturalproductscontinuetogrowinpopularitywithinthemiddletohighincomesegmentofboth
markets.Anumberofpremiumretailersnowhavesectionsdevotedtofreshorganicproduce.Similarly,anumber
ofspecialtyretailchainsdedicatedtosupplyingsolelyorganicproducehaveopenedandareexpanding.
ThereispotentialforAustralianorganicavocadosinSingaporeandMalaysiawithinthehighendmarketsegment
asbothofthesemarketshavelargenumbersofexpatriatesandtouriststhatarewillingtopaypremiumpricesfor
organicproductsinsteadofconventionalproducts.Theonlyorganicavocadossightedduringretailobservations
werefromPeru.
AustraliaislocatedclosertoSingaporeandMalaysiathanitskeycompetitors.Thiscreatescompetitiveadvantages
intransittimeandfreightcosts.AirfreightfromBrisbaneandPerthisverycompetitivecomparedtoseafreightdue
tohighcompetitionfromairlinesservicingBrisbaneandPerthtoSingapore/KualaLumpur,meaningconsignments
canbedeliveredspeedilyandcosteffectively.
SomesouthernhemispherecompetitorssuchasSouthAfricaandMexicooverlapwiththeAustralianavocado
supplyseason.BothMexicoandSouthAfricaarepotentialthreatsastheirlabourcostsareextremelylow
comparedtoAustraliaandasaresulttheyareabletosupplyproducttothemarketatalowerprice. Landarea
plantedofavocadoshasincreasedinMexicoandSouthAfricainrecentyearsandbothofthesecountriesare
amongtheleadingglobalproducersandexportersofavocadosandcouldlooktoexpandtheirexportfocusin
growingAsianmarketssuchasSingaporeandMalaysiainthenearfuture.
TheAustraliandollarisstrongagainsttheSingaporedollarandtheMalaysianRinggit.IftheAustraliandollar
continuestorise,thiswilldriveupthelandedpriceofavocadosinbothmarketstoapeakpricethatsome
importersarenotwillingtopay.Similarly,constantpricefluctuationsandinconsistenciesinpricingmaycause
someimporterstosourceavocadosthroughsuppliersthatoffergreaterpricestabilityorfixedpricesyearround.
TheAustralianavocadoindustryhasproducersspreadacrossseveralmajorgrowingregionsinAustralia,allowing
exporterstosupplyproductconsistentlyallyearround(withpeakproductionspanningfromMarchthroughto
September).MostcompetingnationssupplyingSingaporeandMalaysiasupplyavocadosduringAustralia’soff
peakseason.
Thediversityofgrowingregionslessensthethreatsupplyissuescausedbyunfavourableweatherconditions
includingdrought,ortoomuchrainatfloweringtimewhichcanhaveastrongimpactonAustralianproduction
yields.
ThepreferredavocadosizeinSingaporeandMalaysiaiscount28to32persinglelayercarton.Thissizeis
relativelysmallcomparedtoAustralia’sdomesticmarketrequirements.ItisidealforAustralianexportersto
supplythesesizesintoSingaporeandMalaysiaastheyarenotpreferredinthedomesticmarketandexportersare
stillabletoachieverelativelyhighreturnsforthisfruit.
InSingaporeandMalaysia,bothimportersandretailersindicatedthatconsumersprefertheHassvariety.
AustraliaproduceslargequantitiesofHasssuitableforthesemarkets,withtheHassvarietymakingupover70%
oftreesplantedinAustralia.
50
Asianconsumersgenerallypurchasehardgreenavocadosbecauseoftheirperceptionthatthisrepresents
freshnesswhereasproductthatissoftorsofteningandcolouredisconsideredold.Becauseofthis,retailersare
lesswillingtoacceptconditionedproduct.
ImportersinSingaporeandMalaysiahavelargeandmoderncolddistributioncentres,enablingfruitqualitytobe
maintainedappropriatelythroughthesupplychain.However,inconsistenciesinstorageandhandlingpractices
wereidentifiedinbothmarketsandwillhaveanimpactontheoutturnoffruitquality.Badlybruisedfruitisalso
commoninmanyofthemajorsupermarketsduetopoorhandlingduringdisplayandconsumerdamage.
LeadingavocadoimportersinSingaporeandMalaysiasupplyavocadospredominatelytosupermarketretailers.
Manyoftheseretailerstargetmediumtohighincomeearners.ThismeansthatAustralianavocadoshave
establishedbrandawarenessinkeymarketsegmentsinbothmarkets,particularlyinthemediumtohighend
stores.
Visitstoretailstoresrevealedalackofsignageandincorrectproductinformationinsomeoutlets,particularlyin
Malaysia.Manymajorretailchainsdidnotdisplaycountryoforiginlabellingordetailmethodofdeliverytothe
market,makingitdifficultforconsumerstodifferentiateAustralianairflownavocadosfromlowerqualityMexican
orSouthAfricanproductfreightedbysea.IncorrectsignagewasalsospottedinsomestoreswithHassavocados
labelledasShepardavocados,creatingconfusionormisleadingconsumers.
ThereisapotentialmarketaccessthreatinMalaysiaduetoalackofregisteredchemicalsapprovedforuseon
avocadosunderCODEX,whichcouldpotentiallyleadtotheclosureofthismarketfortheAustralianavocado
industry.AsMalaysiadoesnothavemaximumresiduelevelsinplaceforimportedavocados,theInternational
CODEXstandardisapplied(priortoJune2010theacceptableMRLwas1milligramperkilogrambutrecent
negotiationswithMalaysianhealthauthoritieshaveincreasedthisto2milligramsperkilogram).Smalltracesof
restrictedchemicalscanresultinproductbeingheldunderalertindefinitelyuntilclearedbyMalaysiancustoms
andhealthauthoritiesoralternativelyplacetheexporteratriskofhavingexportconsignmentsdestroyedand
subjecttofines.
41
6.0 Recommendations
Anumberofimpedimentstomarketgrowthwereidentifiedduringthemarketvisit.Thefollowing
recommendationsareprovidedtoaddressthesechallengesandcontinueexpandingAustralianavocadoexports
intoSingaporeandMalaysia:
x
Increaseawarenessmongstconsumers(particularlyChineseconsumers)aboutavocados
AlthoughtherehasbeenagrowingawarenessofavocadosinSingaporeandMalaysiainrecentyears,there
isstillaneedtofurtherpromoteavocadosamongstlocalconsumersandtoeducateconsumersabouthow
tohandle,chooseanduseavocados(particularlyatpointofsale).
o
Linkingintofreshproduceseminarsbeingfacilitatedbypartneragencies(suchasAustradeandUniversitiesin
SingaporeandMalaysia)andattractingcelebritychefsandlocalmediatosucheventsarepotentialoptionsfor
promotingawarenessamongstlocalconsumers.
x
Reeducateconsumerstoenhanceproductknowledgeandunderstandingofavocadohandling,maturityand
alternativeuses
ManyAsianconsumershavetheperceptionthatavocadosareunhealthyorfattening.Thereisaneedfor
moreeducationalinformationatpointofsaletoeducateconsumersofthenutritionalvalueandhealth
benefitsofavocados,especiallyforinfants.
Asianconsumersgenerallypurchasehardgreenavocadosbecauseoftheirperceptionthatthisrepresents
freshnesswhereasproductthatissoftorsofteningandcolouredisconsideredold.Becauseofthis,retailers
arelesswillingtoacceptconditionedproduct.
o
Thereisaneedtoeducateconsumersthatripenedavocadosarealsofreshandmoreimportantlyareready
toeat.Furthermore,thereistheneedtoinformconsumersthatripeAustralianavocadosaremorelikelyto
befresherthangreenavocadossuppliedfromMexicoorSouthAfricaastheyaregenerallyairfreightedas
opposedtobeingseafreighted.Australia’scloseproximitytoSouthEastAsiaalsomeansthatproductcanbe
freightedviaseamorespeedilythancompetingmarketsofsupply.
x
Productbranding
ThereisalackofbrandingofAustralianavocadosinoverseasmarkets.ProductsuppliedtoSingaporeand
MalaysiabytheAECwaslabelledwith‘Australianheartfoundation’stickersbutnocompanybranding.Most
ofAEC’scompetitorsinSingaporeandMalaysiahadproductlabelledwithstickersillustratingtheircompany
brand.
o
Thereisaneedforastrongerfocusonbranding(stickersonfruit)andotherpointofsalematerialtopromote
theAustralianbrandandbuildconsumerawarenessofAustralianavocadosinthesemarkets.
x
Bettermarketingandproductinformationdisplayedatpointofsale
Visitstoretailstoresrevealedalackofsignageandincorrectproductinformationinsomeoutlets,particularly
inMalaysia.Manymajorretailchainsdidnotdisplaycountryoforiginlabellingormethodofdeliverytothe
market,makingitdifficultforconsumerstodifferentiateAustralianairflownavocadosfromlowerquality
MexicanorSouthAfricanproductfreightedbysea.
InthesetwomarketswhereAustralia’scompetitorsareabletosupplycheaperavocados,signageatpointof
saleiscriticalinjustifyingthehigherpricepointsforAustralianavocadoscomparedtoproductssuppliedby
competingmarkets.IncorrectsignagewasalsospottedinsomestoreswithHassavocadoslabelledasShepard
avocados,misleadingconsumers.
o
InthesetwomarketswhereAustralia’scompetitorsareabletosupplycheaperavocados,signageatpointof
saleiscriticalinjustifyingthehigherpricepointsforAustralianavocadoscomparedtoproductssuppliedby
othermarkets.
42
Appendix1–Avocadomarketresearchquestionnaire(importersandwholesalers)
Nameofperson&businessinterviewed:
Businesstype:
Importer
Wholesale
Other specify
Section1–AvocadoGeneral
1. DoyoutradethefullrangeoffruitsandVegetablesorisitaspecialistoperation?Ifspecialist,whatisyour
productfocus?
2. Whoareyourmaincustomersbuyingproduce?Whatpercentageofyoursalesgoestoeachcustomer?
(promptforretailers,who?nicheretailer,foodservice)
3. Doyoucurrentlytradeanyavocados?Yes
No
4. Fromwhichcountriesareyouimportingavocados?Whatvarietiesareyouimportingfromthosecountries?
Whatmonths?Approximatelywhatpercentageofyouravocadobusinesscomesfromeachcountry?
Country
Variety/s
Month/s
%
5.Whatvarietydoyourcustomersprefer?
6.Whatquantityofavocadosdoyoutradeweekly?
7. WhatistheapproximatewholesalepricethatyourcustomerspayperkgofavocadosduringtheAustralian
season?
Section2–AustralianAvocados
8. AreyouawareofvarietiesgrowninAustralia?Yes
No
a)Ifyesspecify:
Hass
Sheppard Reed
Fuerte Other
b)specifyothervarieties
Doyouhaveanypreferences?Why?
9.HaveyousourcedanyoftheAustralianavocadovarietiesbefore? Yes
No
a)Ifyes,wheredoyousourceinAustralia?Whichexportersandwhichports?
43
10.Whencomparedtootherimportedavocados(e.g.NewZealand,SouthAfrica,Mexico)howdoyouthink
Australianavocadoscompare?(Promptforprice,quality,consumeracceptance,availability,service)
Section3–Productspecifications
11. a)Whatareyourcurrentpreferencesforavocadoquality?
Fruitsize
Firmness(levelofripeness)–firm,sprung,soft
Colourstage
Shape–elongated,round,misshapen,etc
Skinblemish–sunburn,brownmarks,howmuchallowed?
Doyourejectavocadoswithrotsorbruises?Doesthismeanyou
don’tpayforthem?
Productpackaging(fruitstickers,trays,bulkpacks(size),giftpacks)
b) Whatdoyoulookforfromafreshproducesupplier?(e.g.Quality,competitivepricing,supplyconsistency,
specificvariety)
12. Howdoyoumanagecomplaints/returnsfromyourcustomers?(e.g.Negotiatelowerpricepertrayforthe
totalorder,receivestockcredit)
Section4–Businesslogistics
13. Whathappensatdelivery?(e.g.inspection,temperaturecheck,howlongbeforeproductgoesintostorage)
14.Howoftendoyoureceiveavocadosfromyoursuppliers?
15.Whattypeoffacilitiesdoyoustoreavocadosin?
16.Doyouripenyouravocados?Ifyeshow?(e.g.temperature,ethyleneconcentration)
17.Whattemperaturesdoyoustoreyouravocadosat?
18.Howlongdoyoustoreavocadosbeforedespatchtoyourcustomers?
19.Howmuchshelflifedoyourcustomersrequireforavocados?
44
Section5–Avocadoconsumer
20. WhatisthegenerallevelofconsumerdemandforavocadosduringFebruarytoSeptember?(e.g.dopeople
buyallyearroundorforspecialpurposes)
21. Whydoestheaverageconsumerpurchaseavocados(promptforflavour,healthattributes,salads,cooked
dishes)?
Section6–Generalmarketingandbusinessstrategies
22. Whattypeofmarketing/promotionalsupportwouldyouliketoreceivetoassistingrowingthemarketfor
Australianavocados?
23.Wouldyoubeinterestedinreceivingavocadohandlingtraining?
24.Whatisyourkeysuccessindoingbusinesswithyourcurrentcustomers?
25.Whatkindofchallengesandissueshaveyoufacedwithyourcurrentsuppliers?
26. ArethereanyotherfreshfruitandvegetablesthatyouwouldbeinterestedinsourcingfromAustralia?
(e.g.stonefruit–peachesandnectarines)
27.Doyouseeopportunityforfurthergrowthintheavocadomarket?
28.Whatstrategies/activitiesdoyouthinkwouldhelpingrowingthemarketforavocados?
(e.g.promotionalactivitiesfacilitatedbytheexporter)
45
Avocadomarketresearchquestionnaire(retailersandfoodservice)
Nameofperson&businessinterviewed:
Businesstype:
Retailchain Retail(specialty) Foodservice
Other specify
Section1–AvocadoGeneral
2. Doyousellalltypesoffruitsandvegetablesinyourbusiness?
3. Doyoucurrentlyretailavocados? Yes
4.
No
Fromwhichcountriesareyoucurrentlyreceivingavocados?Whatvarietiesareyoucurrentlyreceivingfrom
thosecountries?Whatmonths?Approximatelywhatpercentageofyouravocadobusinesscomesfromeach
country?
Country
Variety/s
Month/s
%
5. Whatvariety/sdoyourcustomersprefer?
6. Whatquantityofavocadosdoyousellweekly?
7. WhatistheapproximateretailpricepaidperkgorperpieceofavocadoduringFebruarytoSeptember
(Australianseason)?
8. Whatistheoptimumpriceyoucansellavocadosat?
Section2–AustralianAvocados
9. AreyouawareofvarietiesgrowninAustralia?Yes
No
a) Ifyesspecify:
Hass
Shepard Reed
Fuerte Other
b)Specifyothervarieties
Doyouhaveanypreferences?Why?
10. HaveyousourcedanyoftheAustralianavocadovarietiesbefore? Yes
No
11. Whencomparedtootherimportedavocados(e.g.NewZealand,SouthAfrica,Mexico) howdoyouthink
Australianavocadoscompare?(Promptforprice,qualityandconsistency,consumeracceptance,supply
availability)
46
Section3–Productspecifications
12. Whatareyourcurrentpreferencesforavocadoquality?
Fruitsize
Firmness(levelofripeness)–firm,sprung,soft
Colourstage
Shape–elongated,round,misshapen,etc
Skinblemish–sunburn,brownmarks,howmuchallowed?
Doyourejectavocadoswithrotsorbruises?
Productpackaging(fruitstickers,trays,bulkpacks(size),giftpacks)
12.Whatdoyoulookforfromafreshproducesupplier?(e.g.Quality,competitivepricing, supplyconsistency,
rangeofvariety)
13.Howdoyoumanagecomplaints/returnsfromyourcustomers?
Section4–Businesslogistics
14.Whoareyourcurrentpreferredsuppliersofavocados?Why?_
15.Whathappensatdelivery(e.g.inspection,temperaturecheck)?
16.Howoftendoyoureceiveavocadosfromyoursuppliers(daily,twicedaily,daily,everysecondday?)
17.Whattypeoffacilitiesdoyoustoreavocadosin?
18.Whattemperaturesdoyoustoreyouravocadosat?
19.Howlongdoyouholdavocadosatyourretailstores?
20.Howmuchshelflifedoyourequireforavocados?
Section5–Avocadoconsumer
21. Whatareyourcustomerdemographics?(e.ghousewives,olderpeople,officeworkers, expatsIn
percentages)
47
22. WhatisthegenerallevelofconsumerdemandforavocadosduringFebruarytoSeptember?(e.g.dopeople
buyallyearroundorforspecialpurposes)
23.Whydoestheaverageconsumerpurchaseavocadosandforwhatpurpose?(e.g.promptforflavour,health
attributes,salads,cookeddishes)
Section6–Generalmarketingandbusinessstrategies
24.Whattypeofmarketing/promotionalsupportwouldyouliketoreceivetoassistingrowingtheAustralian
avocadomarket?
25.Wouldyoubeinterestedinreceivingavocadohandlingtraining/information?
26.Whatisyourkeysuccessindoingbusinesswithselected/preferredsuppliersandcategorypartners?
27.Whatkindofchallengesandissueshaveyoufacedwithyourcurrentsuppliers?
28.ArethereanyotherfreshfruitandvegetablesthatyouwouldbeinterestedinsourcingfromAustralia?(e.g.
stonefruit–peaches&nectarines)
29.Doyouseeopportunityforfurthergrowthintheavocadomarket?
30.Whatstrategies/activitiesdoyouthinkwouldhelpingrowingthemarketforavocadosfurther?
(e.g.Promotionalactivitiescarriedoutbytheexporter)
48
Appendix2–AustralianAvocadoIndustrymarketingmaterial
Avocadohandling/ripenesschartsandrecipeguide
Ripeningchart:
Retailhandlingguide:
Wholesalehandlingguide:
Note:ThesematerialsweredistributedtoparticipantsoftheGMIavocadohandlingandmerchandisingtrainingsessions
50
Recipeguide:
50
Note:ThepracticalityoftheserecipeswasdemonstratedthroughoutDEEDItrainingsessionsundertakeninSingaporeand
Malaysia.
51
Appendix3–PotentialrecipesforavocadouseinSingaporeandMalaysia
52
53
54