According to the UN estimates, 80 million new residents appear in Asia annually, approximately, like the whole new “Germany”. These are all our potential customers who need to be fed. But, of course, they are poorer than German customers.
In fact, by 2025, almost the entire demographic increase in the world population of 738 million people will provide three regions: Sub-Saharan Africa, South-Central and South-East Asia.
Sub-Saharan Africa is the fastest to grow. Asian regions, in contrast to African, are more populated. But the growth rate there is still very high.
The more people appear, the less space there is left to grow. That is, the production of local products there will not grow, but the population increases, so they have an increasing need for imports.
The income level in Africa and Asia is incommensurable
In India in 10 years, another “Russia” seems to appear by the number of people. In Nigeria, the population will grow by 50 million. China and Pakistan will add 38 million each, Congo, Indonesia and Ethiopia will have 26 million people more each.
Despite the fact that the number of Africans is growing fastest, economically, it is necessary to pay attention to Asia. That is where it will be possible to earn money. The income level of the population in Africa and Asia is incommensurable.
Speaking of Asia, we take the southeastern part of it. Central Asia is not considered. In fact, for us, it will be one of the most serious competitors in the segment of fruit and vegetable products.
The average annual growth in imports of fruits and vegetables to the markets of the Asian region is the largest in the world, 11.4%, which in monetary terms is $ 3.79 billion. Imports to Africa on average grow by 8% annually, America – by 6.6%, Oceania – by 4.5%, Europe – the least, by 2.9%.
The biggest problem in Asia is where to find product suppliers
Just in comparison, Ukraine exports fruit and vegetable products slightly more than $ 100 million a year, and in Asia, only an annual increase amounts $ 3.79 billion. Will we have a little place there? The question is rhetorical.
The biggest problem now in Asia is where to find product suppliers. And we have a question of where to find the markets.
Here are a few interesting facts about Asia:
- One large Indonesian importer buys more apples within a week than Ukraine exports in a year.
- Retail prices for traditional fruits and berries are on average 5 times higher than in the European Union. And 20-30 times higher than in Ukraine. Of course, it does not mean that you get a retail price immediately. For example, in Singapore, it is considered quite normal when the manufacturer receives 10% of the retail price.
- Each country has its own characteristics, but they understand and appreciate the product’s premium.
- The biggest problem for us when exporting to Asia is logistics.
- We will not be able to deliver products to Asia permanently and steadily if we are not physically present in this market.
- One manufacturing company, even the biggest one, will not manage the systematic exports to Asia alone. So, the cooperation is necessary.
Why Asia? Чим цікава Азія для експортерів української продукції?
Gepostet von Українська Плодоовочева Асоціація – УПОА am Mittwoch, 26. September 2018
Andriy Yarmak, the economist of the investment department of FAO