Transforming Multiple Varieties of Pineapple to MD2 for High Value Market
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1 Transforming Multiple Varieties of Pineapple to MD2 for High Value Market Dr. Jamaliah Laham DPIM (ITM),BBA(UiTM),MBA(UiTM),PhD (Queensland) Department of Extension and Planting Development, Malaysian Pineapple Industry Board, Johor 1
2 Presentation Outline Introduction Global pineapple industry scenario Malaysia pineapple industry scenario The way forward 2
3 Introduction Pineapple (Ananas comosus): is a tropical plant. a robust plant, an herbaceous, perennial, self-sterile, monocotyledonous plant and belongs to the Bromeliacea family. can be cultivated on a extensive variety of soils such as peat soil (Malaysia), volcanic ash soils (Hawaii, Caribbean islands and the Philippines) and sandy soils (Southern Queensland and Northern south Africa) originated from East Region of South America. Ref: Claude et al. (1987); Hepton (2003) 3
4 .Introduction Benefits of pineapple An exotic fruit Good source of Vitamin C Good for the digestive system. Enzyme - Bromelian Heavily promoted by big companies Advertising campaign & branding Changing consumers' preference Health conscious Ref: Heinicke & Gorther (1957); Fileti et al (2009); Larocc et al (2010) Fulfil market demand sweetness, aroma, taste, longer shelf life 4
5 Benefits of Pineapple An exotic fruit. A good source of vitamin C (because pineapple contains about 29 mg of vitamin C per 100 g) Good for the digestive system. A multipurpose fruit - raw fruit to health products, and as medicine and tenderizing meat. (enzyme bromelin) useful for reducing muscle and tissue inflammation and as a digestive aid. 5
6 ..Introduction Changing Consumers Preferences Health conscious from processed/canned pineapple to fresh pineapple Fulfill the market s demand - sweetness, aroma, colour, taste, longer shelf-life Heavily promoted by Dole and Del Monte as well as others big companies thru adverting campaign, branding Ref: Heinicke & Gorther (1957); Fileti et al (2009); Larocc et al (2010) 6
7 Global Pineapple Industry Scenario The world's demand for pineapple is increasing at a rate of approximately 5% every year. 50 % - Fresh pineapple 30 % - Canned pineapple 20 % - Juices 2012 USD billion Ref: FAO 2008, 2009, FAOSTAT (2015) 7
8 Global Pineapple Industry Scenario 8
9 Global Pineapple Industry Scenario Costa Rica - a dominant global supplier of fresh pineapple nd largest producer 2006, 6 th largest pineapple producer 1996, MD2 was introduced in Costa Rica Ref: Pay (2009), FAO (2014) 9
10 .. Global Pineapple Industry Scenario Brazil mostly sold as fresh fruit to domestic market - high population (>170 million people) The cultivars grown are Perola (80%), Smooth Cayenne and MD2. significant in fresh pineapple exports due to the investment, by the Del Monte Company to cultivate MD2. Ref: de Matos & Reinhardt (2007) 10
11 Global Pineapple Industry Scenario Philippines exported huge quantities of fresh pineapples to Japan during the 1970s. One of the major exporters of fresh pineapple in the world. multinational corporations (e.g. Dole and Del Monte, play an important role in managing the industry and they use a large plantation production system. Ref: de Matos & Reinhardt (2007) 11
12 Global Pineapple Industry Scenario Thailand 95% of the pineapples are from the small growers (1-5 hectares of land). contract farming Prevents factories - facing a shortage of raw material Protects growers - price fluctuations. Ref: de Matos & Reinhardt (2007) Claude et al
13 Malaysia Pineapple Industry Scenario TOTAL AREA PLANTED AND PRODUCTION OF PINEAPPLE LOCATION Planted Area (Ha) Production (MT) Planted Area (Ha) Production (MT) Planted Area (Ha) Production (MT) Peninsular Of Malaysia 6, ,161 6, ,546 7, ,804 Sarawak 1,933 36,114 1,708 26,213 1,805 53,484 Sabah 1,315 22,363 1,102 16, ,952 MALAYSIA 9, ,638 9, ,725 10, ,240 Data Source : Malaysian Pineapple Industry Board / Department Of Agriculture Malaysia 13
14 Johor (56%) Sarawak (19%) Sabah (14%) Selangor (2%) Kedah (1%) Pulau Pinang (1%) Perak (1%) Neg. Sembilan (1%) Pahang (1%) Terangganu (1%) Kelantan (1%) Melaka Perlis <1% 14
15 Malaysia Pineapple Industry Scenario - Pineapple Consumption Mainly used as a fresh fruit, dishes and canned pineapple s: 1.7 kg/person/year 2013: 11.8 kg/ 2009: person/year 7.8kg/person/year This is in line with the previous studies: - The demand pattern of the Malaysian fruit consumption I, income - In developing countries, 40% of each additional dollar is used to buy food. 15
16 Consumer Buying Behaviour Pattern Supermarkets hypermarkets 26% Night markets/ farmers markets 29% Kioks 45% Consumers Buying Pattern Behaviour Ref: QI Consultant (2009 ) 16
17 Multiple Varieties of Pineapple in Malaysia Josapine Titi (N.SEMBILAN) N36 MD2 Mauritius (KEDAH) Sarawak (KELANTAN) Yankee (SELANGOR ) 17
18 Varieties Acreage (Ha) Production (MT) Average Production (MT/ha) N36 2, , Josapine 1,417 49, Moris 1,284 43, MD , Sarawak 179 5, Yankee 107 3, Gandul Lain-lain 21 1, JUMLAH 6, ,
19 Domestic Eksport Varieties Ex-farm (RM/Kg) Wholesale (RM/Kg) Retail (RM/Kg) Nilai F.O.B (RM Per MT) MD , N ,47.70 Josapine Sarawak Moris Ref: LPNM/FAMA 19
20 LPNM Strategies Adaptability Switch over to high value variety (MD2) Maintain the existing varieties that have dual value segments Diversification Innovation New approach 20
21 LPNM Strategies - what have been done? Programs for RMK11 Allocation Applied (millions) Allocation Approved (millions) MD2 RM 60 RM 40 Other varieties RM 40 RM 30 21
22 ...LPNM Strategies 10 acres (min) Promotional activities /Campaign Nurseries (for seedlings) LPNM Strategies for MD2 variety Smallhold ers form of cooperatives, cluster High density: (min: 20K/ suckers/ acres) Involvement of big companies 22
23 Thank You 23
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