Friday, May 25, 2012 by Lee Mannering
USDA report details Indonesian market opportunities
According to a new U.S. Department of Agriculture Foreign Agricultural Service report, Indonesia was the eighth largest export market for U.S. agricultural, fish and forest products, reaching $2.9 billion last year. In the consumer-oriented product category, fresh fruit, processed fruit & vegetables, red meat, pet foods and fresh vegetable reached record levels. In looking through the report, I noted the following items of interest to PMA members:
- For U.S. products currently available in the Indonesian market, fresh fruit continues to have the best sales prospects. Australia still holds the largest market share of dairy products, meat, cheese, fresh fruits and vegetables, wine and processed products. South Africa has gained stronger market share in fresh fruits, juices, and wine. China is another U.S. competitor in fresh fruits sector, especially for apples and oranges.
- Indonesia’s population of 237 million in 2010 is relatively young with almost 18 percent of the population between 15-24 years old, and another 17 percent is between 25-34 years old. Nearly 58 percent of the population lives on Java, which also has the best infrastructure although urban areas in Sumatera, Bali, and Sulawesi are developing. There were 118 million people living in urban areas in 2010.
- According to AC Nielsen, in 2010, Indonesian shoppers went to traditional markets mostly to buy fresh vegetables (53 percent), fresh meat (70 percent), and fresh fish (67 percent).
- Regarding retail formats, mini-markets, convenience stores, and other shops carry a wide range of convenience foods, including fresh fruit.
- Imported table grapes must be produced in a pest-free area. In the United States, only the state of California has been declared by the government of Indonesia as an area determined to be free from Ceratitis capitata (the Mediterranean fruit fly).
- Fresh fruit and vegetables, except table grapes originating in California, must be treated prior to shipment or subjected to in-transit cold treatment. In addition, the U.S. Fresh Fruit of Plant Origin (FFPO) safety control system of country of origin has been recognized by Indonesia’s government. All imported products with the U.S. FFPO do not need Certificate of Analysis (COA) of Pesticide Residue.
To learn more about Indonesia, visit the FAS website. To learn more about PMA’s global resources (including several international Fresh Connections seminars), visit the PMA website or join the Global Trade Community on PMA Xchange.
Tags: Global Trade