1. Trends that Impact on Horticultural Chains in GMS Countries Rosa S. Rolle, Ph.D Senior Agro-Industries and Post-harvest Officer FAO Regional Office for Asia and the Pacific Bangkok Thailand Rosa.Rolle@fao.org

2. Learning Objectives Develop an appreciation of the factors that currently impact on horticultural chains in GMS countries; Identify actions required in order to reduce losses, maintain quality and assure safety within the horticultural post-harvest sector

3. PRODUCER CONSUMER THE HORTICULTURAL SUPPLY CHAIN Horticultural supply chains are largely driven by consumer and market demand

4. Trends that Impact Consumer Behavior in the Region Demographic shifts – Increasing income per capita – Aging population – Smaller household size Increasing entry of women into the work force Plurality of household and family structures – More single headed households – Decreasing birth rates Source: McKinsey & Company, 2010

5. Urbanization Trends in Asia Source: UNESCAP, 2011 The Region is Rapidly Urbanising

6. Impacts of Urbanization Food must travel over longer distances to reach the consumer.

7. Vegetable Production has Increased in most Countries

8. Vegetable Consumption Has Increased in Some Countries

9. Fruit Production Trends in GMS

10. Fruit Consumption Has Increased in Some Countries

11. Innovation HEALTH NUTRITION SAFETY, QUALITY CONVENIENCE VARIETY PRICE FRESHNESS MAINSTREAM HORTICULTURAL PRODUCE EXOTIC and SPECIALTY PRODUCE WET MARKET SUPERMARKETS UP-MARKET BASIC Changing Shopping Habits

12. Growing Awareness of Food Safety Development of public and private standards Requirement for certification Requirement for traceability

13. National GAP Programs in Asian Countries

14. Labeling – Certification – Method of Production – Location of Production – Nutrition information – Storage information – Usage tips Grading Branding Growing Consumer Demand for Quality

15. Packaging Ready-to-eat produce Higher Income Consumers Increasingly Demand Convenience

16. Packaging Innovations

17. Growing Consumer Demand for Variety Improved planting materials – New shapes – New sizes – New colors – Improved taste

18. Consumer Interest in Wellness through Diet Alternative production Techniques

19. - Modern supply chains or value chains developed to meet the needs of changing consumer and market demand. - Traditional supply chains continue to operate in parallel with modern supply chains IMPACT OF TRENDS

20. Modern Value Chain Development Make use of Integrated Systems and Post-harvest Technology

21. Modern Value Chains – Are demand driven Comply with safety and quality standards Value is added along the chain Produce differentiated products – shape, size, color…. Link small farmers to markets

22. Traditional Supply Chains Feed Mass Markets and Predominate

23. Production oriented Fragmented production units Undifferentiated products Minimal value added Smallholders are price takers Traditional Supply Chains

24. Characteristics of Traditional Supply Chains

25. Traditional Supply Chains are Characterized by Multi-Layered Channels

26. High Levels of Post-harvest Losses in Traditional Supply Chains Post-harvest losses in horticultural crop average around 35 – 40 % across the region Compression Damage Trimming losses in cabbage due to insect/physical damage

27. Implications of Trends Need to be better organised with more integrated activities Need to be better informed of market and consumer needs – Information flow is important -What is needed - When it is needed - How much Stakeholders:

28. Implications for Stakeholders Need to: – Upgrade operations in order to comply with safety and quality standards of target markets; – assure the safety of produce for the local market; – develop strategies to improve efficiency, and reduce costs; – make use of post-harvest technologies to create value (through packaging) reduce losses – Upgrade knowledge and technical skills

29. THANK YOU Rosa.Rolle@fao.org