Aricle 1 of the serie: "PMA more than just a week in October:
PMA International Council Notes Opportunities in, for India

The PMA is much more than a just convention at a certain time and a certain place. This convention in October is ' only' the top of the organizations iceberg. In order to inform our readers about PMA's network and activities Freshplaza is publishing a series of articles about PMA's activities.
Today the nr. 1 article of 11 about PMA's world wide activities.


Produce Marketing Association (PMA) is well known for its international convention and exposition, Fresh Summit, held each fall. Yet PMA is much more than just a week in October at a convention – PMA offers year-round value that connects, informs and delivers business solutions to enhance members’ prosperity. To inform our readers about PMA's many and varied activities designed specifically for its worldwide members, Fresh Plaza is publishing a series of articles about PMA's activities. This is the first of a series of monthly articles about PMA's worldwide activities that will run in 2009.



Members of PMA’s International Council travelled to Mumbai, India, in March 2008 to tour various sectors of the city’s produce and food distribution system and have in-depth discussions with fresh fruit and vegetable industry leaders who came from throughout India. The purpose of the trip was to combine the International Council’s duties of guiding the strategic global growth of the association with an opportunity to bring value to PMA members by helping them gain a broader understanding of the Indian industry and identify prospects for the produce industry there and abroad.

Looking at India from the perspective of traders, council members found great opportunity for exports from the country, which has vast arable land and diverse climatic zones. In addition, the Indian government is pro-export and provides export incentives. For a number of crops and production areas, it would be a short step to gain “organic” classification due to the basic production methods now in use.  Financing is available to develop exports, and the international business language – English – is widely spoken in India.



A handful of Indian produce items are pioneering the way for exports. After an 18-year ban, mango imports to the United States s from India totaled $1 million in 2007, and were estimated thento grow to more than $7 million within a year.  The group also learned that grapes from Chile are starting to lose market share in Europe to Indian grapes.  Indian grape exports to United Kingdom supermarkets are the result of big investments with an eye on modern technology, which includes food safety operations. The fruit crops gaining most in Indian acreage are mangoes, bananas, lemons and limes, mosambi  (a sweet orange), sapota (mamey sapote) and oranges.

Examining import potential, the council also found promising signs for growth opportunities in India’s evolving consumer base and start-up supermarket industry. Over the next two decades, the country’s middle class is expected to grow from about 5 percent of the population to more than 40 percent, creating the world’s fifth-largest consumer market. There is a growing supermarket retail sector that didn’t even exist five years ago. Typically, emerging economies with a more Western-style food distribution network have greater demand for high-quality fresh fruits and vegetables, and increasing imports.

Council members noted that to further advance India’s successful retail segment, it will be essential to understand India’s different consumer groups. Demographically, the country is not a homogeneous population, instead consisting of many groups separated by language, class and income.  Indians are gaining purchasing power, and a larger portion of the population is increasingly sophisticated.  The general expectation of low food prices and poor quality will eventually give way to higher consumer expectations and related demand.

To meet that growing consumer demand, the council noted that produce imports can fill consumer supply gaps for contra-seasonal fruit. There appear to be special opportunities for importing citrus (navels), strawberries (and their plants), apples, berries, mangoes, grapes, kiwi and stone fruit. Some products have immediate opportunities, while others must be further developed.  Growing demand for higher-value food crops will drive both imports and exports.  However, there are numerous challenges to imports, including insufficient infrastructure, phytosanitary matters and high import duties. Further developing Indian imports will require changing the traditional Indian mindset, and promoting new items. Developing exports to India is a long-term endeavor that will require patience in market development long before the first shipment.

The council also found growing Indian supermarkets must better train employees and improve supplier-retailer communication, as well as overcome farmer apprehension to this dramatic food marketing change. There currently is no existing organization to link India’s industry, as PMA does in some other countries. In-country relationships are key to developing exports to India, and PMA looks forward to helping our members in-country and around the globe to grow business there.

The full report on the PMA International Council’s trip to India can be viewed at www.pma.com/ic/india2008.

by Nancy Tucker

Publication date: 1/23/2009
Author: Wim Geurts
Copyright: www.freshplaza.com

respond to this article  email this article    print

Receive the daily newsletter in your email for free | Click here

 

<< back | www.freshplaza.com