Development of Agribusiness Enterprises - Asian Productivity ...

intensified in the EU. The impacts that need to be anticipated are controls on the usage of
preservatives, hormones, antibiotics and pesticides. Market opportunities for organic foods
will rise in accordance with increasing demand for natural foods.
What about the United States? Fish imports by the United States are projected to
increase during the next three years. In terms of value, US shrimp imports increased by 4.38
percent during the past five years. The main supplier was Thailand with a 34-percent share,
while Indonesia’s share was only 5 percent. In 1998, the US shrimp import bill was US$3.1
billion. The United States is the second largest importer of tuna after Japan, with annual
imports ranging between 240,000 mt and 250,000 mt. The leading supplier was Thailand,
followed by the Philippines.
Recently, the United States was importing more tropical products because of the strong
US dollar relative to Asian currencies. Indonesia, for example, is the second largest exporter
to the United States after the Ivory Coast. The problem with the US market is that it tends
to impose requirements that are stricter than international standards such as the Codex
Alimentarius of the World Health Organization (WHO) that was legalized by the World
Trade Organization (WTO). Many Asian export products are still subject to detention in the
United States (e.g., shrimp, tuna, fish fillets, cocoa beans, mushrooms and canned pineapple).
To avail this opportunity, a strong and effective food processing sector and other agrobased
industries are considered as important to:
(a) the diversification and commercialization of agriculture;
(b) the improvement of rural income and employment;
(c) value addition and the generation of surpluses for export;
(d) the reduction of wastage of perishable products; and
(e) fostering rural industrialization.
Governments should provide massive support by acting as a catalyst for attracting
investments in agribusiness, including the food processing sector, encouraging exports and
creating a healthy atmosphere for the growth of the food processing and agro-based
industries. The private sector should also be continuously encouraged to undertake initiatives
while governments act as a facilitator, motivator and regulator of investment and growth.
Challenges
Although the global market offers business opportunities, various foreign trade
regulations are still imposed by importing countries. In addition to the international treaties
and agreements governing international trade, e.g., WTO, general regulations are applied
with regard to customs, tariffs, banking or foreign trade control, unjustified competition, and
anti-dumping and anti-trust issues. In the case of agricultural products, additional regulations
are usually applied such as laws on food control and sanitation, and sanitary-phytosanitary
controls. Some countries also apply the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES), also known as the Washington Agreement.
Fisheries products imported by the United States have to comply with the Marine Mammals
Protection Act, Dolphin Safe Treatments, and the Environmental Protection Law.
A guarantee of product quality is not only based on the final product but also on the
whole process of production. ISO standards, the FAO/WHO Codex Alimentarius standards,
and Hazard Analysis Critical Control Point (HACCP) implementation are common
requirements in current global trade, signaling the era of quality revolution.
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