Development of Agribusiness Enterprises - Asian Productivity ...

Table 1. World Markets for Agricultural Commodities
Commodity
Traditional
Market Description Growth Rate (percent per annum)
Tropical products* Negligible growth +1.7
Rubber Negligible growth +0.4
Cereals Negative growth -0.5
Sugar Negative growth -1.5
Vegetable oils*
Non-traditional
Moderate growth +4.8
Fruit and vegetables* Rapid growth +10.1
Meats Moderate growth +6.6
Fish products*
Beverages, tobacco and
Rapid growth +10.8
processed foods* Rapid growth +11.5
Source: Stephen L. Magiera, 1995.
Note: * Growth rates are compounded over the period from 1983 to 1991; other growth
rates are compounded over the period from 1983 to 1993.
Although processed products will dominate future international markets, demand for
fresh food products remains high, especially in Japan. Given that situation, it is crucial that
a system of packaging is developed that retains the quality of products in order to meet the
required taste and high standards. Japan, for example, applies three domestic laws regarding
imported foods. The Food Safety Law basically covers the maximum content of edible
chemicals allowed, such as additives or sweeteners, and the maximum permitted content of
pesticide residues. The Plant Protection Law applies sanitary and phytosanitary
requirements, while the Food Control Law requires that all imported foods must have a label
that provides information about the nutritional content as well as the complete addresses of
the manufacturer(s)/producer(s) and the local importer.
In Japan, demand for frozen vegetables and processed fish is tending to increase.
Demand for frozen vegetables increased from 430,000 mt in 1993 to 700,000 mt in 1998.
Most vegetables demanded by the Japanese market can be grown in Asia (e.g., eggplant,
Chinese cabbage, okra, melons, cucumbers and paprika), thus presenting an opportunity to
increase export earnings. Similarly, imports for fresh and frozen fruit have increased sharply
in Japan. Fruit imports are mostly in frozen form due to strict quarantine requirements and
the Food Safety Law.
In 1992, Indonesia was the leading shrimp exporter to Japan with a market share of 21
percent. However, demand for frozen shrimp is projected to decrease during the next three
years. According to a Sanwa Research Institute report in 2000, the frozen shrimp market is
saturated, and demand for processed products such as hot and spicy fish is showing an
increasing trend, especially among the younger generation. Again, market opportunities are
wide, but in a much different form to what they were 10 years ago.
The European Union (EU) is currently applying stricter regulations on quality
standards as well as sanitary and veterinary controls for importing fishery products. The EU,
which recently ratified its agricultural reform (Common Agriculture Policy), is to open its
markets to organic and pesticide-free products. Meanwhile, organic farming will be
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