GLOBAL PRODUCTION AND MARKET TREND OF TROPICAL FRUITS Dr. Izham Ahmad Chief Executive Officer International Tropical Fruits Network (TFNet) Walk-In Seminar Malaysian Agricultural, Horticultural and Agrotourism (MAHA 2008) 19 August 2008 MAEPS, MALAYSIA

DISCUSSION TOPICS 22 GLOBAL PRODUCTION 11 INTRODUCTION INTRODUCTION ISSUES AND CHALLENGES ISSUES AND CHALLENGES 5 5 CONCLUSION CONCLUSION INTERNATIONAL TRADE INTERNATIONAL TRADE

11 INTRODUCTION INTRODUCTION  Tropical Fruit Industry is an important economic sector in many countries  Potential of the sector in:  Generating income  Improving livelihoods of small farmers  Employment opportunities  Foreign exchange  Source dietary requirements for healthy population

PRODUCTION  The tropical fruit industry has shown rapid growth during the last 10 years (1996 – 2005)  World production registered an annual growth of 4.1 %  Production of all fruits has increased by 51.5% INTERNATIONAL TRADE  World tropical fruit market remains dynamic with significant growth in trade volumes and values  Export value for fresh tropical fruits was estimated at USD 11.2 billion in 2005

22 GLOBAL TROPICAL FRUIT PRODUCTION GLOBAL TROPICAL FRUIT PRODUCTION  World production of tropical fruits was estimated at million mt in 2005  Annual production growth rate:  1999 – 2005 = 4.1 %  Total Production increased by 51.5 %  from million mt in 1996 to million mt in 2005

(Source: FAOSTAT) GLOBAL PRODUCTION TREND

GLOBAL TROPICAL FRUIT PRODUCTION : FRUIT TYPES WATERMELONS : continues to be the dominant tropical fruit type produced Followed by: BANANAS MANGOES OTHER MELON PINEAPPLES LEMONS & LIMES OTHER CITRUS FRUITS PAPAYAS

DISTRIBUTION OF MAJOR FRUIT PRODUCTION

(Source: FAOSTAT) GLOBAL PRODUCTION TREND BY FRUIT TYPES (1996 – 2005) Fruits Annual Production (million tonnes) % of 2005 Annual Growth Rate (%) % increase Watermelons Bananas Mangoes Other melons Pineapples Lemons & Limes Other Citrus Fruits Papayas Grapefruit & Pomelos Avocados TOTAL

FRUIT TYPES BY MAJOR PRODUCING COUNTRIES Fruits Major Producer Production (1000 tonnes) % Production Share World Ranking Watermelons China69, Bananas India11, Mangoes India11, Other melons China15, Pineapples Brazil2, Lemons & Limes Mexico1, Papayas Brazil1, Other Citrus Fruits Nigeria3, Grapefruit USA1, Avocados Mexico 1,

(Source: FAOSTAT) MAJOR PRODUCING COUNTRIES CHINA continues to be the leading tropical fruit producer  Production increased by 171% with 9.2% annual growth rate  From 36.3 million tonnes in 1996 to 98.4 million tonnes in 2005  In 2005, China’s share of global production = 35.5% INDIA is the second leading tropical fruit producer  Production increased by 9.7% with 0.9% annual growth rate  From 25.2 million tonnes in 1996 to 27.7 million tonnes in 2005  In 2005, India’s share of global production = 10%

(Source: FAOSTAT) GLOBAL TROPICAL FRUIT PRODUCTION Other Major producing countries in 2005:  Brazil : 5.4% share of global production  Mexico : 3.6% share of global production  Philippines : 3.5% share of global production

(Source: FAOSTAT) PRODUCTION TREND BY MAJOR COUNTRIES (1996 – 2005) Fruits Annual Production (million tonnes) % of World Total (2005) Annual Growth Rate (%) % increase China India Brazil Mexico Philippines Indonesia Turkey Thailand Ecuador Nigeria Others WORLD TOTAL

(Source: FAOSTAT) MAJOR FRUIT PRODUCTION BY MAJOR COUNTRIES CountriesMajor Fruits Production (1000 tonnes) Share of Global Production (%) World Ranking China Watermelons69, Other Melons15, Bananas6, India Bananas11, Mangoes11, Lemons & Limes1, Brazil Bananas6, Pineapples2, Papayas1, Mexico Bananas2, Lemon & Limes1, Mangoes1, Philippines Bananas6, Pineapples1, Mangoes1,

MINOR FRUIT PRODUCTION Minor or exotic tropical fruits also contribute significantly towards the income of small farmers in Asia. The important minor fruits include:  durian, rambutan, longan and mangosteen Information on production of these fruits, however, are scarcely available Trade statistics show that there is a growing interest in these fruits in both traditional and new markets

MINOR FRUITS PRODUCTION Country Durian (mt) Rambutan (mt) Longan (mt) Mangosteen (mt) Thailand640,000519,000706,000207,000 Indonesia566,205675,000na64,711 Malaysia450,000130,000na Vietnam146,000379,600628,800na na = not available

33 INTERNATIONAL TRADE EXPORT OF FRESH TROPICAL FRUITS  The volume of exports of fresh tropical fruits only amounted to about 10% of total production.  However, the export of tropical fruits is a significant income generating activity for developing countries  During 1996 – 2005, volume of exports has increased by 34%, from 20.9 million tonnes to 28.1 million tonnes  In 2005, the total global exports of fresh tropical fruits was estimated at USD 11.2 billion

EXPORT OF FRESH TROPICAL FRUITS Source : FAO Statistical Database, FAOSTAT

EXPORT OF FRESH TROPICAL FRUITS 1996 – 2005: Export Quantity increased by= 34.0 % Export Quantity growth rate = 2.9 % Export Value increased by= 47.8 % Export Value growth rate= 3.9 % 2005 World Export Quantity= 28.1 million tonnes Value= US$11.2 billion

Source : FAO Statistical Database, FAOSTAT EXPORT TREND OF FRESH TROPICAL FRUITS

Source : FAO Statistical Database, FAOSTAT BANANAS : continues to be the dominate the tropical fruit export market In 2005, exports of bananas accounted for 57.7% share of total global tropical fruit export quantity and 43.5% of global export value Followed by: PINEAPPLES, WATERMELONS, LEMONS & LIMES, OTHER MELONS, GRAPEFRUITS & POMELOS, AND MANGOES. EXPORT TREND OF FRESH TROPICAL FRUITS

Source : FAO Statistical Database, FAOSTAT EXPORT OF FRESH TROPICAL FRUITS EXPORT QUANTITY (million tonnes) EXPORT VALUE (USD million)

Source : FAO Statistical Database, FAOSTAT EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT QUANTITY (million tonnes) – by Fruit Types EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT QUANTITY (million tonnes) – by Fruit Types Fruits Annual Import Quantity (million tonnes) % of 2005 Annual Growth Rate (%) % increase Bananas Lemons & Limes Watermelons Pineapples Other melons Grapefruit & Pomelos Mangoes Avocados Papayas Other Citrus Fruits TOTAL

Source : FAO Statistical Database, FAOSTAT EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT VALUE (USD million) – by Fruit Types EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT VALUE (USD million) – by Fruit Types Fruits Annual Export Value (USD million) % of 2005 Annual Growth Rate (%) % increase Bananas4,4904,8804,8004,6454,9584,8695,2574,5904,6214, Lemons & Limes ,1021, Other melons , Pineapples , Avocados Watermelons Grapefruit & Pomelos Mangoes Papayas Other Citrus Fruits TOTAL7,5638,1388,1948,2278,3968,5689,1519,55110,18011,

FRUIT TYPES BY MAJOR EXPORTING COUNTRIES FruitsMajor Exporter Exports Quantity (1,000 tonnes) Value (USD million) Bananas Ecuador4,764.21,068.9 Pineapples Costa Rica Watermelons Mexico Lemons & Limes Mexico Other melons Spain Grapefruit & Pomelos South Africa Mangoes India AvocadosMexico Papayas Mexico Other Citrus Fruits China Source : FAO Statistical Database, FAOSTAT

MAJOR EXPORTING COUNTRIES ECUADOR is the major exporter of fresh tropical fruits  Volume exported has increased from 3.9 million tonnes in 1996 to 4.9 million tonnes in 2005 (an increase of 26.2%)  Export Value has increased from USD977 million in 1996 to USD1.12 billion in 2005  In 2005, Ecuador’s share of world export value = 10% Costa Rica is the second major exporter  Volume exported has increased from 2.4 million tonnes in 1996 to 3.0 million tonnes in 2005 (an increase of 23.7%)  Export Value has increased from USD760 million in 1996 to USD902 million in 2005  In 2005, Costa Rica’s share of world export value = 8.1%

MAJOR EXPORTING COUNTRIES The other major exporting countries in 2005 are: CountriesExport (mil. tonnes) % share of global export Philippines Mexico USA Spain South Africa

Source : FAO Statistical Database, FAOSTAT EXPORT OF FRESH TROPICAL FRUITS – 2005 By Major Countries EXPORT OF FRESH TROPICAL FRUITS – 2005 By Major Countries EXPORT QUANTITY (million tonnes) EXPORT VALUE (USD million)

EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT QUANTITY (million tonnes) – by Major Countries EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT QUANTITY (million tonnes) – by Major Countries Source : FAO Statistical Database, FAOSTAT Countries Annual Export Quantity (million tonnes) % of 2005 Annual Growth Rate (%) % increase Ecuador Costa Rica Philippines Mexico USA Spain South Africa Netherlands Turkey Others TOTAL

EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT VALUE (USD million) – by Major Countries EXPORT TREND OF FRESH TROPICAL FRUITS 1996 – 2005 EXPORT VALUE (USD million) – by Major Countries Source : FAO Statistical Database, FAOSTAT Countries Annual Export Value (USD million) % of 2005 Annual Growth Rate (%) % increase Ecuador9771,3171, ,1241,0701, Mexico Costa Rica Spain USA Netherlands Turkey South Africa Argentina Others3,5883,6253,8674,0544,6194,7075,1264,5624,8695, TOTAL7,5638,1388,1948,2278,3968,5689,1519,55110,18011,

(Source: FAOSTAT) FRUITS EXPORTED BY MAJOR COUNTRIES Countries Major Fruits Exported Export Quantity (1000 tonnes) Share of Global Export (%) World Ranking Ecuador Bananas Pineapple Mangoes Costa Rica Bananas Pineapple Other Melons Philippines Bananas Pineapple Mangoes Mexico Watermelons Lemons & Limes Avocados USA Bananas Grapefruits Watermelons

IMPORT OF FRESH TROPICAL FRUITS  From 1996 to 2005, imports of fresh tropical fruits has expanded by 28.8% from 20.0 million tonnes to 25.8 million tonnes  The value of imports has increased by 46.5%, from USD10.6 billion in 1996 to USD15.5 billion in 2005  Bananas accounted for 59% of total world imports of fresh tropical fruits in 2005  USA is the world’s largest importer; accounting for 24.5% of global import volume in 2005

Source : FAO Statistical Database, FAOSTAT IMPORT TREND OF FRESH TROPICAL FRUITS

Source : FAO Statistical Database, FAOSTAT IMPORT TREND OF FRESH TROPICAL FRUITS  Fresh tropical fruit import market is dominated by bananas, which accounts for 59% of total world import quantity in 2005  Other major imported tropical fruits include; lemons & limes; watermelons and pineapples  Imports of pineapples has shown very significant increase of 152.6% during 1996 – 2005

Source : FAO Statistical Database, FAOSTAT IMPORT OF FRESH TROPICAL FRUITS 2005 Import Quantity (1,000 tonnes) Import Value (USD million)

Source : FAO Statistical Database, FAOSTAT IMPORT QUANTITY OF FRESH TROPICAL FRUITS – by Fruit Types (million tonnes) IMPORT QUANTITY OF FRESH TROPICAL FRUITS – by Fruit Types (million tonnes) Fruits Annual Import Quantity (million tonnes) % of 2005 Annual Growth Rate (%) % increase Bananas Lemons & Limes Watermelons Pineapples Other melons Grapefruit & Pomelos Mangoes Avocados Papayas Other Citrus Fruits TOTAL

Source : FAO Statistical Database, FAOSTAT IMPORT VALUE OF FRESH TROPICAL FRUITS – by Fruit Types (USD million) IMPORT VALUE OF FRESH TROPICAL FRUITS – by Fruit Types (USD million) Fruits Annual Import Value (USD million) % of 2005 Annual Growth Rate (%) % increase Bananas6,6335,9676,2586,3575,8535,7915,8737,0567,8028, Pineapples ,1691,3631, Lemons & Limes ,0581,1891, Other melons ,0491,0841, Avocados Grapefruit & Pomelos Mangoes Watermelons Papayas Other Citrus Fruits TOTAL10,6009,90110,42210,73910,18010,40810,69813,23614,37515,

FRUIT TYPES BY MAJOR IMPORTING COUNTRIES FruitsMajor Importer Imports Quantity (1,000 tonnes) Value (USD million) Bananas USA3,824.41,036.8 Lemons & Limes USA Watermelons USA Pineapples USA Other melons USA Grapefruit & Pomelos JAPAN Mangoes USA AvocadosUSA Papayas USA Other Citrus Fruits SAUDI ARABIA Source : FAO Statistical Database, FAOSTAT

MAJOR IMPORTING COUNTRIES Beside USA, the major importing countries for tropical fruits are from the European Region USA is the world’s largest importer of fresh tropical fruits  Volume imported increased by 26.3% from 5.0 million tonnes in 1996 to 6.3 million tonnes in 2005  Imports by USA in 2005 accounted for 24.5% of total world imports  Value of imports increased by 22.5% from USD1.9 billion in 1996 to USD2.4 billion in 2005  Imports of pineapples has shown very significant increase of 152.6% during 1996 – 2005 Germany is the second largest importer of fresh tropical fruits Followed by Japan, United Kingdom, France and Canada

Source : FAO Statistical Database, FAOSTAT IMPORT OF FRESH TROPICAL FRUITS – 2005 By Major Countries IMPORT OF FRESH TROPICAL FRUITS – 2005 By Major Countries IMPORT QUANTITY (mil. tonnes) IMPORT VALUE (USD mil.)

Source : FAO Statistical Database, FAOSTAT IMPORT QUANTITY OF FRESH TROPICAL FRUITS by Major Countries (million tonnes) IMPORT QUANTITY OF FRESH TROPICAL FRUITS by Major Countries (million tonnes) Countries Annual Import Quantity (million tonnes) % of 2005 Annual Growth Rate (%) % increase USA Germany Japan United Kingdom Russian Federation France Canada Others TOTAL

Source : FAO Statistical Database, FAOSTAT IMPORT VALUE OF FRESH TROPICAL FRUITS by Major Countries (USD million) IMPORT VALUE OF FRESH TROPICAL FRUITS by Major Countries (USD million) Fruits Annual Import Value (USD million) % of 2005 Annual Growth Rate (%) % increase USA1,9142,0272,1152,2602,2252,3231,9442,4842,4802, Germany1,2881,0911,0401, ,0841,3301,3911, Japan ,0591, ,0351,0691,1921, United Kingdom ,0031, France , Canada Russian Federation Others4,3923,9374,1374,2953,9644,1244,4995,7246,3857, TOTAL10,6009,90110,42210,73910,18010,40810,69813,23614,37515,

(Source: FAOSTAT) FRUITS IMPORTED BY MAJOR COUNTRIES CountriesMajor Fruits Imported Import Quantity (1000 tonnes) Share of Global Import (%) World Ranking USA Bananas3, Other Melons Pineapples GERMANY Bananas1, Watermelons Lemons & Limes JAPAN Bananas1, Grapefruits & Pomelos Pineapples UNITED KINGDOM Bananas Other Melons Lemons & Limes FRANCE Bananas Other melons Pineapples

4 4 ISSUES AND CHALLENGES ISSUES AND CHALLENGES  Production and productivity issues  Compliance to international regulations & requirements  Lack of post harvest handling technologies  Lacking in market information  Product development and diversification

PRODUCTION AND PRODUCTIVITY The Tropical Fruit smallholding sector:  characterised by small and scattered fruit gardens  poor farm management practices  low yields and quality  production not market-driven  lack of knowledge of domestic and global demands

PRODUCTION AND PRODUCTIVITY  ACTION PLANS  organise smallholder sector into commercial, viable and sustainable entities  extension workers provide production technologies to the producers  organize producers into cooperatives  enhance productivity  gain better bargaining power in market place

COOPERATIVES  Members’ active participation in production, post harvest and marketing activities as a collective entity: Better information on production technologies, market requirements, prices and the market distribution network  Inter-country or inter-regional cooperation between cooperatives: exchange of market information such as supply and demand, prices and trade requirements exchange of production technologies PRODUCTION AND PRODUCTIVITY

INTERNATIONAL REGULATIONS AND REQUIREMENTS  Non-tariff measures: SPS, GAP, GMP, HACCP and Codex standards  Becoming more stringent and demanding

INTERNATIONAL REGULATIONS AND REQUIREMENTS ACTION PLAN: Harmonization of Regulations and Requirements  Need for harmonization to enable a wider access to international markets  Develop certain generic quarantine protocols, universally acceptable by all importing countries  A generic approach would contribute towards speedier liberalization of tropical fruit trade

INTERNATIONAL REGULATIONS AND REQUIREMENTS ACTION PLAN: Implementation of Farm Certification Programme  Develop Food Safety and Quality Assurance Standards  Adoption of GAP (e.g. Malaysian SALM / Thai GAP etc)

POST HARVEST HANDLING TECHNOLOGIES  there is inadequate postharvest handling activities - leading to high post harvest loss  postharvest handling can be an activity to generate additional income for the producers  an important activity to ensure that quality and safe products reach the consumers ACTION PLAN:  more transfer of technology, training and resources to enable the producers carry out their own post harvest activities  development and exchange of post harvest information and technologies

Producers and exporters generally lack timely and accurate information on: Prices Quality & packaging requirements Market outlets Seasonality of demand Production and market trend ACTION PLAN : Exchange of information on :  production, processing, prices, market requirements, consumption and trade LACKING IN MARKET INFORMATION

PRODUCT DEVELOPMENT and DIVERSIFICATION  Large percentage of tropical fruits is marketed in their fresh form  Tropical fruits are highly perishable To enhance the development of the industry & To increase the return to producers processing into new and value added products INNOVATION FOR NEW AND PROCESSED PRODUCTS

PRIVATE SECTOR PARTICIPATION  Private sector exporters has experience and knowledge on market requirements and demands -- information on seasonal demands -- import regulations and requirements -- consumers’ tastes and preference  Private sector exports to assist smallholders in improving production and post harvest handling  Organise “contract farming” with exporters

ROLE OF TFNET  Membership network of 98 members in 24 countries  International Conferences/Seminars/Workshops  gathering of experts for exchange & sharing of information and experiences  Dissemination of Information through Website, Newsletters and publications

ROLE OF TFNET  Specialized training  tissue culture  post harvest handling and processing  PVP  GAP  Joint Projects  germplasm exchange  market studies

5 5 CONCLUSION CONCLUSION The tropical and subtropical fruit sector could be a new source of growth for providing income, employment and foreign exchange. In addition tropical fruit provides the necessary nutrition to create healthy and productive population. Many challenges need to be addressed before this sector could play an important role as engine of economic growth including increasing efficiency and productivity of activities from farm to table as well as improving postharvest losses, enhancing extension delivery system, and the application of ICT in agriculture.

T H A N K Y O U for your kind attention ….5 servings tropical fruits a day, keep the medicine man away! Your Global Partner in Tropical Fruits Development Linking People, Technology & Market