S&F Produce Group is a fresh produce solution provider from Hong Kong. It is a family company, run by the second generation. Founded in 1979 by the Sin family, it has grown into a vertically integrated company that runs more than 300 lines of fresh produce through its import offices to retailers, wholesale companies, and the food service industry.
The company operates seven packhouses in China and Thailand, including both 100% owned and through joint ventures. In addition, it has invested in its own growing and production lines. Currently, J&F owns 400 hectares of grape, apple, and durian farms. With export offices in China, Thailand, and Vietnam, it has developed into a major distributor of Chinese, Thai, and Vietnamese fruits to international markets.
Top right, Sam Sin, Director of Business Development at S&F Product Group
Sam Sin is Business Development Director at S&F Produce Group. He is responsible for new channels and new product development. Sam shares his insights about the developments in Southeast Asia’s fresh produce industry and the direction the company plans to take: "We specialize in fresh produce distribution. We handle over 300 product lines and supply to retail, wholesale, and food service sectors. We have our own in-house marketing team and operation team to provide in-store service and market activation for our clients. Besides exporting our own-grown products from China, we have set up a sourcing team in China to export high-quality sourced Chinese fruits under our DinoFresh and Craftsman Brand. We have also expanded our international footprint by opening offices in Thailand, Vietnam, Hong Kong, the US, and China. We work with various brands across the world. We are currently handling over 30 brands, which include Rockit Apples, Driscolls Berries, and Envy Apples."
Sam sees brand development and product quality as two key strategies to grow the company's future position: "Fruit marketing has been a big topic in the industry and it is developing quickly. The key is for brands to be consistent with quality and stable supply, similar to FMCG branded products."
In-store retail activation
"Companies might need commodities to pay the rent, but to be sustainable in the market, it is healthy to focus on branding and strong cooperation with growers. That is the way to be sustainable in the market. Being a produce trader only will be very difficult to operate in this market in the future, every player needs to add value to the industry".
The company has a strong footprint in Mainland China. Sam explains: "Regarding the Chinese import market, we try to be best at sourcing high-quality fruits. We have strong cooperation with Pagoda, which currently operates over 5600 fruit stores across China. We have strong expertise in handling and exporting fresh produce, which we currently send to Southeast Asia, Chile, and Europe. Most of our trade is done directly to the retail and food service markets. As such, we are able to help the fruit growers in China to connect with high-quality exporters."
Covid has changed S&F Produce Group's international business. It has shifted its focus to nearby Southeast Asia. "Covid has altered our activities in a sense that it has accelerated the development of Chinese products in Southeast Asia. The prolonged logistics challenges with international shipping, which have not been solved and settled yet, have made us realize that we have to conduct business more locally and regionally. China for us is the future. Regarding our production in China, our lead time is less than a week. China can grow many if not most, fruits and vegetables domestically.” We have created a strong basis for our Chinese fruits through our export offices in Vietnam."
The company is shifting its sourcing strategies to more regional markets in Southeast Asia.
"We believe that China will develop in an export market of high-quality, refined, and branded fruits", ponders Sam: "Domestic demand for premium fruits is already strong. In addition, we see larger farms coming into production, investments entering the industry, and other developments in the agriculture industry. It is also becoming easier to acquire bigger plots of land to enable modern farming practices. New, foreign, technologies, are being introduced and orchard management is changing. Of course, there is the challenge that young people are not looking to enter the agriculture business. However, we foresee a bright future."
In addition to Lori Fuji apples and grapes growing in-house, the company sources and exports mandarins, oranges and lemons, blueberries, strawberries, and melons. In the Hong Kong market, it's base, it offers a full range of products. The company also supplies the Indonesian, Thai, and Singaporean markets.
Lori Fuji Apple
"We changed our focus to the Chinese domestic market due to the Covid challenges, and have now started to export more," continues Sam enthusiastically: "One of our key items is the China Lori Fuji apple. Lori Fuji is a new way of planting Fuji. We have produced our own fertilizer and own spraying program. We only harvest when the apple has a higher maturity, which is 2-3 weeks longer than the normal Fuji. We launched our Lori Fuji in the international market last year in 2022. It's eating-quality, flavor, and aroma has impressed end-consumers. We are looking forward to replacing traditional fuji in the long term.
Lori Fuji Apple by S&F Produce Group
"China has developed its own new fruit varieties in recent years, most of which are grown to supply the Southeast Asian markets. We see that retail space has started to accept more high-quality Chinese products in their outlets. We certainly believe there will be strong demand for branded high-quality Chinese apples in the future."
Pagoda acquired S&F Produce Group's apple packhouse in China three years ago, which has positively impacted its export business. Pagoda focuses on quality fruits, which helped the company to leverage its resources and offer high-quality Chinese fruits to its international client base. Currently, its businesses are more linked.
Sam thinks about the near future: "For the next 3 years, S&F Produce group will continue to introduce high-quality international brands into the Southeast Asian market and focus on the development of products from Asia. Thailand and Vietnam will remain key import markets for the company. We also believe these countries have a high growth rate in fruit consumption, and their spending power is improving rapidly. We foresee that their demand for fruits will only continue to grow, and we would like to be the pioneer to service our clients in these markets."
"Our company's direction is focusing on quality products, instead of commodity trading. This will remain our future focus. Thailand has been for many years one of the Top 5 fruit markets in Asia. Yet, its cold-chain infrastructure, the way product is handled and sold, has room for development. Most trade is done via wholesale markets, whereas Hong Kong is dominated by the retail market. We believe the model in Hong Kong can be copied in Thailand. The chain is less developed than for example Hong Kong or Southern China. Hence there is a large opportunity for development."
For more information:
Sam Sin
S&F Produce Group
Email: sam.sin@freco.biz
http://www.freco.biz/
www.shingkeelan.com
www.sklfcproduce.com