THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
Singapore
Singapore is a food and agricultural product trading center for Southeast Asia. As such, a number of our competitors have regional offices located there. The FAS office in Singapore estimates that a dozen countries spent over $4.5 million on market promotion in Southeast Asia during 1997. Half of this was spent by Australia, while Canada and New Zealand also spent significant sums. The key commodities which were promoted were wheat and meat, with lesser amounts spent on fresh fruit and processed foods.
Representation:
Australias export promotion agency, AUSTRADE, has representation in Singapore, Brunei, Indonesia, Malaysia, the Philippines and Thailand. Its Singapore office provides assistance to local companies wishing to source products in Australia and has a library containing Australian business directories and reference documents. Its food and consumer marketing team conducts promotions with leading supermarket chains and the food service sector.
New Zealands food promotional agency, TRADENZ, has stationed its Southeast Asia Regional Promotional Manager in Singapore. TRADENZ has country representatives outside of its diplomatic missions in Singapore, Indonesia and the Philippines. Representatives housed within New Zealand diplomatic missions are located in Malaysia, Thailand and Vietnam.
Frances export promotion agency, SOPEXA, has been increasing its activities in this region in recent years. It maintains a Southeast Asia Regional Office in Singapore and country offices in Brunei, Cambodia, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.
The Irish Trade Board maintains its Asia Regional Office in Singapore. Its only other Southeast Asia office is in Malaysia. The Board is promoting a quality Irish image for finished food products and a high technological image for food ingredients.
Chiles Prochile, has representation in Indonesia, Malaysia, the Philippines, Singapore and Thailand. Malaysias MALTRADE has offices in Singapore and Vietnam. ASEAN is planning a promotional program for its members food products to be used within the region as well as in Europe and the United States. Part of this program will include development of a new ASEAN brand.
Activities by Commodity:
Wheat: The Australian and Canadian wheat boards each spend around $1 million on market promotion activity in the Southeast Asia region. They both run technical assistance programs for millers and manufacturers and use sales missions and sponsor trade visits to their countries. In addition, Canada negotiates long term supply agreements. Argentina also promotes its wheat in the region, although no expenditure information is available. Its key activity is to bring sales missions to the various countries from Argentina. There are no formal promotion activities for feedgrains, although the Australian Wheat Board is beginning to do more promotion. The main competitors for corn are Argentina and South Africa, while Australia and Canada supply barley, sorghum and feed wheat.
Meat: Australia spends over $700,000 in the region annually on promotion for meat, especially beef. New Zealand spends $250,000 on beef and lamb, while Canada and Denmark each spend under $200,000 on beef and pork and Argentina spends about $80,000 a year on beef promotion. Australia and New Zealand are active in the big four countries of Indonesia, the Philippines, Malaysia and Thailand, as well as in Singapore, Brunei and Vietnam. Canada is only active in the big four countries, while Denmark operates exclusively in the Philippines. Argentina is active in Malaysia, Thailand and Indonesia.
The Australian Meat and Livestock Commission and the New Zealand Meat Producers Board carry out a broad range of activities including; trade shows, seminars, supermarket and restaurant promotions, trade visits to their countries and training visits by butchery technical consultants. Australia employs consultants in Singapore to carry out some of its regional activities while New Zealand relies more on its embassy staff.
Canadian promotion activity is conducted mainly by the Province of Alberta and includes trade shows, seminars, receptions and restaurant promotions. Canadian pork is promoted only in the Philippines and beef is the focus of activities in other countries. Denmark promotes pork only in the Philippines through the Danish Trade Commission. It participates in trade shows and receptions and sponsors trade visits to Denmark. Argentina promotes its beef exports to the region through trade shows, restaurant promotions and trade receptions.
Fresh Fruit: New Zealand, Australia and France have the biggest competitor promotion programs for fresh fruits in Southeast Asia. Thailand and Japan also promote their fresh fruits, but at a lower expenditure level. In 1997 New Zealand spent about $250,000 to promote its apples, $100,000 for kiwifruit and $50,000 for persimmons. Australia spent $250,000 to promote its apples, pears and citrus and France spent $150,000 to promote its apples and pears. Japan promotes apples and melons, while Thailand promotes durians and mangoes. Typical promotion activities include supermarket promotions, trade receptions and advertising. Australia and New Zealand operate promotional lotteries and pay premiums to retailers. In addition, Australia uses the Australia Fresh brand program which licenses exporters to utilize the brand in their promotions.
Processed Foods: Australia is the main competitor promoting processed foods. It spent about $135,000 on promotional activities such as in-store promotions, trade shows, advertising and trade teams. Australia is planning a new "Delicatessen-to-Asia" campaign which will focus on increasing sales through retail outlets in Asia. Other countries promoting processed foods include France, which spent about $35,000 on in-store promotions and trade shows for its processed foods and Canada, which spent about $30,000 to send regional buyers to Canada.
Dairy Products: Australia, New Zealand, the Netherlands, Switzerland and Israel are competitors in these markets for dairy products. In many cases firms from these countries will form joint ventures with Southeast Asian companies that will purchase exclusively from the investing country. The main promotional activity is advertising. No expenditure information is available.
Wine: Australia, France and Japan conduct promotional activities in the region. Wine tastings, trade shows and supermarket and restaurant promotions are typical activities. The French also offer premiums to retailers. No expenditure information is available.
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