UAE Carrots & Sweet Corn: Introduction and Overview. Michael Clarke, AgEconPlus
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1 UAE Carrots & Sweet Corn: Introduction and Overview Michael Clarke, AgEconPlus
2 2 Overview Background Task and team Carrot market Investment plan Sweet corn market Investment plan Successful exporting
3 3 Background Recommendations from (VG12042): 1. Carrots $50M in exports Market growth Market defence 2. Sweet Corn Value-added potential in Middle East
4 4 Our task Market research 1. Grower partners 2. In-country research 3. Investment options Investment plan 1. ROI analysis 2. Investment plan prep 3. Communication
5 5 Team - AgEconPlus Mike Titley - veg production for export John Baker supply chains UAE Michael Clarke - lamb export, ROI Jane Shanthi commercial contacts
6 6 Team growers & supply chain On the spot commercial reality test Carrots Peter Ivankovich grower, WA 17 Aust grower / packers 27 UAE supply chain partners Sweet corn Fabian Carniel grower, Qld Jim Trandos grower, WA
7 7 Fresh veg market - UAE 40% re-export to other countries 35% modern retail (no traditional) 25% food service (rapid growth)
8 8 Carrot market - UAE Limited domestic production Imports 60,000 tonnes / $A36 million China 66%, $A0.51/kg, Nantes Australia 29%, $A0.80/kg, Nantes USA 1%, $A1.59/kg, Imperator Oman 4%, $A0.58/kg, Nantes
9 9 Carrot market - UAE Undersupplied with Aust carrots Invest to increase Aust production 10kg cartons, small to medium No to value added forms Yes to bulk composite class for juice
10 10 Carrot market - UAE Competitive on: Taste and colour Year round reliable supply Price as $A depreciates Threat: Improving Chinese quality Vietnam new areas (food safety less critical)
11 11 Successful carrot exporting Focus on quality eliminate damage Market seek value adding services Crop forecasting/updates Education and training Category management Strategies mindful growing total market Not new Aust exporters replacing existing MLA model well regarded Market development possible without promo levy
12 12 Carrot investment plan (Double sales to 35kt while maintaining price) 1. Positioning Maintain/grow share with importer/distributor Actively engage with modern retail 2. Preferred supplier status Cement current position Seek ongoing improvement in quality (colour, taste) Work on cool chain management UAE
13 13 Carrot investment plan 3. Product High quality, small to medium carrots 10kg cartons Source additional supply - Aust wide 4. Service Regular + relevant trade communications Category management support Training retail and food service
14 14 Carrot investment plan 5. R&D focus Audit grower practices (pack-out, out-turn) WA sustainable production systems WA new production areas Other states to complement WA seasons Quality enhancement Juice bulk packing and shipping composite class Juice extending shelf life Varieties dual purpose fresh/juice; sweeter carrots
15 15 Sweet corn market - UAE Niche commodity Good quality local - Nov to March Long life products poor quality Aust purchased on wholesale markets Airfreighted in mixed consignments Seafreight technology? Varieties with longer shelf life? Aust undersupplies airfreight market Market owned by South Africa South African is of lower quality
16 16 Sweet corn market - UAE Market is High end supermarkets Importers who supply food service Market requires 500 gram pre-packs Market is willing to trial Australian product
17 17 Sweet corn investment plan (Displace South Africa, grow market to 200 t pa) 1. Positioning Pre-packs Food service suppliers and supermarkets 2. Preferred supplier status Secure through quality Secure through service
18 18 Sweet corn investment plan 3. R&D focus New varieties New forms of packaging for longer shelf life 4. Airfreight planning Build capacity by airfreighting mixed vegetable and fruit consignments (market also wants broccoli, grapes and melons)
19 19 Sweet corn investment plan 5. Increase grower participation Prepare packages of production and postharvest technologies 6. Encourage exporter collaboration Develop relationships between exporters that encourage sustainable market growth
20 Questions 20
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