BBK Processed Food and Food Processing Machinery Equipment Sectors ASEAN 06 12

Processed Food and Food Processing
Machinery and Equipment Sectors in

ASEAN.
June 2012.
osec.ch

Machinery and Equipment Sectors.
Title.

Machinery & Equipment Sectors
Language.
English
Number of pages.
171 pages
Content.
This report provides basic information on

the processed food and associated food
manufacturing sectors in 6 ASEAN countries, namely Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam
via secondary research.
Author.
Converging Knowledge Pte. Ltd.
Contents.
CONTENTS. ............................................................................................................................................................................ 3
1.
EXECUTIVE SUMMARY ............................................................................................................................................ 10
2.
INDONESIA ................................................................................................................................................................ 16
2.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN INDONESIA ........ 16
2.1.1
2.2
Brief Overview of Indonesias Economy and Key Statistics .......................................................................................... 16
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN INDONESIA .................................. 17
2.2.1
Characteristics of the Sectors ..................................................................................................................................................... 17
2.2.2
Trade Statistics Volume and Value ....................................................................................................................................... 18
2.2.3
Market Trends and Issues ............................................................................................................................................................. 19
2.3
COMPETITIVE LANDSCAPE ............................................................................................................................................................................ 20
2.3.1
Estimated Number of Players in the Sectors ...................................................................................................................... 20
2.3.2
Segmentation of the Sectors ...................................................................................................................................................... 21
2.3.3
Sources of Imports to Indonesia .............................................................................................................................................. 21
2.3.4
Comparison of Food Processing Products Imported from Switzerland vis--vis other Foreign Countries
22
2.3.5
Sources of Food Processing Machinery and Equipment Imports to Indonesia ................................................. 23
2.3.6
Comparison of Food Processing Machinery and Equipment Imported from Switzerland vis--vis other
Foreign Countries ............................................................................................................................................................................................ 25

2.3.7
2.4
Major Players in the Industry ..................................................................................................................................................... 26
MARKET ENTRY STRATEGIES ........................................................................................................................................................................ 32
2.4.1
Opportunities in Overall Market in Indonesia .................................................................................................................... 32
2.4.2
Opportunities for Cheese ............................................................................................................................................................. 34
2.4.3
Opportunities for Coffee .............................................................................................................................................................. 34
2.4.4
Opportunities for Confectionery (Candy and Chocolate) ............................................................................................. 35
2.4.5
Opportunities for Processed Meat Products ....................................................................................................................... 36
2.4.6
Opportunities for Machines for Making Confectionery ................................................................................................ 37
2.4.7
Opportunities for Coffee Pulpers and Other Beverages Machinery ........................................................................ 37
2.4.8
Opportunities for Machines for Molding Articles ............................................................................................................ 38
2.5
ENTRY STRATEGIES......................................................................................................................................................................................... 38
2.5.1
Agents/ Distributors ........................................................................................................................................................................ 38
2.5.2
Establishing a Local Office ........................................................................................................................................................... 39
2.5.3
Licensing............................................................................................................................................................................................... 39
2.5.4
Joint Ventures .................................................................................................................................................................................... 39
2.6
REGULATORS SPECIFIC TO THE FOOD INDUSTRY ...................................................................................................................................... 39
2.6.1
Import Requirements in Indonesia .......................................................................................................................................... 39
2.6.2
Other Food Imports ........................................................................................................................................................................ 40
2.6.3
Halal Certification ............................................................................................................................................................................ 40
2.6.4
Labelling Guidelines ........................................................................................................................................................................ 40
2.6.5
Import of Food Processing Machinery and Equipment ................................................................................................ 40
3.
MALAYSIA .................................................................................................................................................................. 41
3.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTOR IN MALAYSIA ............ 41
3.1.1
3.2
Brief Overview of Malaysias Economy and Key Statistics ............................................................................................ 41
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN MALAYSIA.................................... 42
3.2.1
3.2.2
3.2.3
3.3
COMPETITIVE L ANDSCAPE ............................................................................................................................................................................ 46
3.3.1
3.3.2
3.3.3
Sources of Imports to Malaysia ................................................................................................................................................ 47
3.3.4
48
3.3.5
Sources of Food Processing Machinery and Equipment Imports to Malaysia ................................................... 49
3.3.6

3.3.7
3.4
Major Players in the Sectors ....................................................................................................................................................... 52
3.4.1
Opportunities for Overall Market in Malaysia .................................................................................................................... 57
3.4.2
3.4.3
3.4.4
3.4.5
Opportunities for Processed Meat .......................................................................................................................................... 61
3.4.6
Opportunities for Cooking Ranges.......................................................................................................................................... 61
3.4.7
Opportunities for Other Packing or Wrapping Machines ............................................................................................ 62
3.4.8
Opportunities for Bakery Machines ........................................................................................................................................ 63
3.4.9
Opportunities for Coffee Pulpers and Other Beverages Machinery ........................................................................ 63
3.5
4
3.5.1
Agents/ Distributors ........................................................................................................................................................................ 64
3.5.2
Direct Entry ......................................................................................................................................................................................... 64
3.5.3
Joint Ventures .................................................................................................................................................................................... 64
3.5.4
Local Distribution Channels ........................................................................................................................................................ 65
3.6
3.6.1
Import Requirements in Malaysia ............................................................................................................................................ 65
3.6.2
Import of Meat and Poultry Products .................................................................................................................................... 66
3.6.3
Incentives for Food Production ................................................................................................................................................. 66
3.6.4
3.6.5
4.
PHILIPPINES............................................................................................................................................................... 68
4.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN THE PHILIPPINES68
4.1.1
4.2
Brief Overview of the Philippines s Economy and Key Statistics ............................................................................... 68
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN THE PHILIPPINES ......................... 69
4.2.1
4.2.2
4.2.3
4.3
4.3.1
4.3.2
4.3.3
Sources of Imports to the Philippines ................................................................................................................................... 73
4.3.4
Source: International Trade CentreComparison of Food Processing Products Imported from
Switzerland vis--vis other Foreign Countries ................................................................................................................................... 74

4.3.5
Sources of Food Processing Machinery and Equipment Imports to the Philippines ...................................... 75
4.3.6

4.3.7
4.4
Major Players in the industry ..................................................................................................................................................... 79
4.4.1
Opportunities in Overall Market in the Philippines ......................................................................................................... 84
4.4.2
4.4.3
4.4.4
4.4.5
Opportunities for Processed Meat .......................................................................................................................................... 87
4.4.6
Opportunities for Machines for Filling, Closing, and etc Machines ......................................................................... 88
4.4.7
Opportunities for Machines for Other Packing or Wrapping Machines ............................................................... 89
4.4.8
Opportunities for Machines for Bakery Machines ........................................................................................................... 89
4.4.9
Opportunities for Machines for Coffee Pulpers and Other Beverages Machinery ........................................... 90
4.5
4.5.1
Use of Agents/ Distributors ........................................................................................................................................................ 91
4.5.2
Establishing a Local Presence ..................................................................................................................................................... 91
4.5.3
Joint Ventures .................................................................................................................................................................................... 91
4.5.4
Franchising/ Licensing ................................................................................................................................................................... 91
4.5.5
Distribution Channels ..................................................................................................................................................................... 92
4.6
4.6.1
Import Requirements in the Philippines ............................................................................................................................... 92
4.6.2
Import Requirements for Meat and Fish Products .......................................................................................................... 92
4.6.3
Import of Specific Food Products ............................................................................................................................................ 92
4.6.4
4.6.5
Other Information ............................................................................................................................................................................ 93
4.6.6
5.
SINGAPORE................................................................................................................................................................ 94
5.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTOR IN SINGAPORE ......... 94
5.1.1
5.2
Brief Overview of Singapores Economy and Key Statistics ......................................................................................... 94
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN SINGAPORE ................................. 95
5.2.1
5.2.2
5.2.3
5.3
5.3.1
5.3.2
5.3.3
Sources of Processed Food Imports to Singapore ....................................................................................................... 100
5.3.4
Comparison of Processed Food Products Imported from Switzerland vis--vis other Foreign Countries
101
5.3.5
Sources of Food Processing Machinery and Equipment Imports to Singapore ............................................. 102
5.3.6
Foreign Countries ......................................................................................................................................................................................... 103

5.3.7
5.4
Major Players in the industry .................................................................................................................................................. 105
MARKET ENTRY STRATEGIES ..................................................................................................................................................................... 111
5.4.1
Opportunities for Overall Market in Singapore .............................................................................................................. 111

6
5.4.2
Opportunities for Cheese .......................................................................................................................................................... 112
5.4.3
Opportunities for Coffee ........................................................................................................................................................... 113
5.4.4
Opportunities for Confectionery (Candy and Chocolate) .......................................................................................... 113
5.4.5
Opportunities for Processed Meat ....................................................................................................................................... 114
5.4.6
Opportunities for Beverages Packaging Machinery and Equipment ................................................................... 115
5.4.7
Opportunities for Machines for Sugar Making ............................................................................................................... 116
5.4.8
Opportunities for Bakery Machines ..................................................................................................................................... 116
5.5
ENTRY STRATEGIES...................................................................................................................................................................................... 117
5.5.1
Use of Agents/ Distributors ..................................................................................................................................................... 117
5.5.2
Establishing a Local Presence .................................................................................................................................................. 117
5.5.3
Joint Ventures/ Co-branding ................................................................................................................................................... 117
5.5.4
Franchising ....................................................................................................................................................................................... 118
5.5.5
Direct Sales Channels .................................................................................................................................................................. 118
5.6
REGULATORS SPECIFIC TO THE FOOD INDUSTRY ................................................................................................................................... 118
5.6.1
Import Requirements in Singapore ...................................................................................................................................... 118
5.6.2
Import of Meat and Fish Products ....................................................................................................................................... 119
5.6.3
Import of Specific Food Products ......................................................................................................................................... 119
5.6.4
Labelling Guidelines ..................................................................................................................................................................... 119
5.6.5
Import of Food Processing Machinery and Equipment ............................................................................................. 119
6.
THAILAND ................................................................................................................................................................120
6.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN THAILAND....... 120
6.1.1
6.2
Brief Overview of Thailands Economy and Key Statistics ......................................................................................... 120
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTOR IN THAILAND .................................. 121
6.2.1
Characteristics of the Sector .................................................................................................................................................... 121
6.2.2
Trade Statistics Volume and Value .................................................................................................................................... 122
6.2.3
Market Trends and Issues .......................................................................................................................................................... 123
6.3
COMPETITIVE L ANDSCAPE ......................................................................................................................................................................... 124
6.3.1
Estimated Number of Players in the Sectors ................................................................................................................... 124
6.3.2
Segmentation of the Sectors ................................................................................................................................................... 124
6.3.3
Sources of Imports to Thailand .............................................................................................................................................. 125
6.3.4
Comparison of Processed Food Products Imported from Switzerland vis--vis other Foreign Countries
126
6.3.5
Sources of Food Processing Machinery and Equipment Imports to Thailand ................................................ 127
6.3.6
6.3.7
6.4
Major Players in the Industry .................................................................................................................................................. 130
6.4.1
Opportunities in Overall Market in Thailand ................................................................................................................... 136
6.4.2
6.4.3
6.4.4
6.4.5
Opportunities for Processed Meat ....................................................................................................................................... 140
6.4.6
Opportunities for Coffee Pulpers and Other Beverages Machinery ..................................................................... 141
6.4.7
Opportunities for Paper, Cartons, and etc Machines ................................................................................................... 142
6.5
6.5.1
Sales Channels ................................................................................................................................................................................ 143
6.5.2
Agents/ Distributors ..................................................................................................................................................................... 143
6.5.3
Indirect Entry ................................................................................................................................................................................... 143
6.5.4
Joint Ventures ................................................................................................................................................................................. 143
6.5.5
Licensing............................................................................................................................................................................................ 143
6.6
6.6.1
Import Requirements in Thailand .......................................................................................................................................... 144
6.6.2
Import of Animal and Animal Products ............................................................................................................................. 145
6.6.3
Import of Specific Products ..................................................................................................................................................... 145
6.6.4
6.6.5
7.
VIETNAM ..................................................................................................................................................................146
7.1
OVERVIEW OF THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN VIETNAM ........ 146
7.1.1
7.2
Brief Overview of Vietnam s Economy and Key Statistics .......................................................................................... 146
THE PROCESSED FOOD AND FOOD PROCESSING MACHINERY AND EQUIPMENT SECTORS IN VIETNAM .................................. 147
7.2.1
Characteristics of the Sectors .................................................................................................................................................. 147
7.2.2
Trade Statistics Volume and Value .................................................................................................................................... 148
7.2.3
Market Trends and Issues .......................................................................................................................................................... 149
7.3
COMPETITIVE L ANDSCAPE ......................................................................................................................................................................... 150
7.3.1
Estimated Number of Players in the Sectors ................................................................................................................... 150
7.3.2
Segmentation of the Sectors ................................................................................................................................................... 150
7.3.3
Sources of Imports to Vietnam .............................................................................................................................................. 151
7.3.4
152
8
7.3.5
Sources of Food Processing Machinery and Equipment Imports to Vietnam ................................................. 153
7.3.6

7.3.7
7.4
Major Players in the Sectors .................................................................................................................................................... 156
7.4.1
Opportunities in Overall Market in Vietnam .................................................................................................................... 162
7.4.2
7.4.3
7.4.4
7.4.5
Opportunities for Processed Meat Products .................................................................................................................... 166
7.4.6
Opportunities for Cooking Ranges....................................................................................................................................... 166
7.4.7
Opportunities for Machines for Filling, Closing, Sealing, Capsuling and Labelling....................................... 167
7.4.8
Opportunities for Other Packing or Wrapping Machines ......................................................................................... 168
7.5
7.5.1
Agents/ Distributors ..................................................................................................................................................................... 168
7.5.2
Establishing a Local Office ........................................................................................................................................................ 169
7.5.3
Joint Ventures ................................................................................................................................................................................. 169
7.6
7.6.1
Import Requirements in Vietnam .......................................................................................................................................... 169
7.6.2
Import of Fresh Food and Raw Materials.......................................................................................................................... 169
7.6.3
7.6.4
Other Specific Imports ............................................................................................................................................................... 170
7.6.5
1. Executive Summary
This study covers Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, which are members of the Association of
Southeast Nations (ASEAN). The processed food and food processing machinery and equipment sectors in these countries are growing
fast, making them attractive destinations for multinational companies and prospective investors. Investments in these sectors particularly
are encouraged by the governments, so as to feed the growing population and achieve self-sufficiency. Food exports are also encouraged, as they assist in boosting economies, which is another reason for the growing importance of the processed food sector. Unlike
Singapore, the remaining countries processed food sector is driven largely by strong agricultural production.
Indonesia
The processed food industry is an important sector in Indonesia, contributing approximately 22.3% of the total manufacturing production
in Java. The country has a large agricultural base, which also serves as a major contributor to its economy. Agricultural production is a
major source of food for the local population, providing access and foods at lower costs. The agricultural sector supports the processed
food sector by allowing access to a steady input of required raw food products. Food processing machinery and equipment within Indonesia are mostly imported and distributed by players in the food industry. Several local players that manufacture these machinery and
equipment also exist. However, most of these manufacturers are companies that engage in industrial machinery and equipment, and
serve not only the food industry alone.
Indonesia has an active processed food industry that provides foreign companies with room for growth and areas of opportunities. Some
of the key impetus promoting growth in the processed food and food processing machinery and equipment sectors are as follows:
1.
In its Master Plan for Acceleration and Expansion of Economic Development (2011 2025), Indonesia aims to become one of
the worlds main food suppliers and processing centre for agricultural, fishery, and natural resources by 2025 or earlier.
2.
The population spends more than half of their monthly expenditure on food products, and monthly expenditure has been increasing.
3.
Indonesia has one of the biggest Muslim populations, and there is, thus, massive demand for Halal food products in the market.
4.
The adoption of the Western culture by affluent Indonesians will accelerate acceptance for Swiss products.
5.
Indonesia has a rapidly growing middle class income group, which will increase demand for better quality food products.
6.
The growing youth population in Indonesia implies a growing segment of consumers that are more receptive to new products,
and has a higher level of acceptance for foreign products. The culture of snacking in the population also presents opportunities
for the snack foods sector.
7.
The abolishment of import duties for raw materials and processing equipment in 2011 will lead to increase in demand and utilisation of food processing machinery and equipment in Indonesia.
8.
Functional food products are gaining in popularity globally, and several local food manufacturers have been incorporating such
ingredients into food products.
10
Malaysia
Malaysias processed food sector is a vibrant industry, and the country is a major exporter of processed foods such as cocoa and fisheries products. However, Malaysia remains a net importer of processed food products, which provides opportunities for foreign companies.
Food manufacturers in Malaysia carry out mostly small-scale food production operations, many of which and are family-based businesses.
There are also large production plants, which include local players and branches of regional companies and multinational companies.
Some companies from Singapore have chosen to set up their manufacturing facilities in Malaysia, as it offers them lower overhead costs
and economies of scale.
Some of the key impetus promoting growth in the processed food and food processing machinery and equipment sectors are as follows:
1.
Malaysia is looking to develop itself into a leading supplier of Halal products. The government has also introduced schemes for
the development and production of Halal products, which include grants and tax incentives.
2.
The Halal food industry is identified as a priority sector. The country presents a new avenue of Halal expertise and manufacturing facilities, which Swiss companies can tap into.
3.
The governments plans and measures to promote the tourism industry under the 2012 Budget will encourage expenditure in
other industries, such as the food sector.
4.
Malaysia is looking to strengthen its agricultural production, with emphasis placed on food production and trading.
5.
Malaysia does not produce certain food products and only produces some other foods in insignificant amounts, such as beef
and butter.
6.
The Malaysian government has plans, under the Third Industrial Master Plan (2006-2020), to encourage investments in the processed food sector, and to encourage the establishments of regional production and distribution facilities within the country.
7.
Malaysia has seen a consistent increase of 1.3% of its population annually. Besides, Malaysia is also one of the more popular
destinations for expatriates. The increase in population serves as a wide consumer base for the food sector..
8.
With an increasing proportion of educated population, Malaysians now have higher purchasing power and are willing to spend
on quality products. With income growth, the food consumption pattern of the population is shifting away from staples, such as
rice products, towards meat, dairy and seafood products.
9.
Rapid urbanisation, changing demographics and lifestyles have brought changes to the populations eating habits. Demand for
convenience foods is on the rise. Younger consumers are also more willing to pay for convenience food and quality food products. The population is also becoming more familiar with western food options.
10. Functional food products are becoming more popular globally, and Malaysia is expected to follow this trend. Several companies
such as Yakult (M) Sdn Bhd and Synerchem Sdn Bhd are also incorporating functional ingredients into their processed food
products.
Philippines
The processed food sector is one of the dominant primary industries in the Philippines manufacturing sector. In 4Q 2011, the sector contributed PHP308,926 million (49.3%) to the gross value of the entire manufacturing industry . As an emerging country, the Philippines
relies on a large amount of food imports. With one of the largest populations in the ASEAN region, the countrys demand for food imports
will also continue to see an increasing trend. In addition, the governments priority on the processed food industry will be an encourage11
Processed Food and Food Processing Machinery & Equipment Sectors in ASEAN
ment for companies looking to enter the market. Other reasons for the potential of the Philippines processed food and food processing
machinery and equipment sectors are as follows:
1.
Under the Philippines Investment Priorities Plan 2011, the countrys agriculture commercial processing and production is listed
as one of the priority economic activities.
2.
Despite its agricultural production, the country is still a net importer of processed food products such as dairy products and sugar confectionery.
3.
The Philfoodex (www.philfoodex.org.ph) is dedicated to serve and support the countrys food processing sector by providing
services such as training, research and technical assistance. The organisation comprises over 200 food manufacturers and exporters, and works closely with the government and sector to ensure the global competiveness of the Philippines food processing segment.
4.
A healthy population growth in the country will drive the demand for food consumption and food products. Aside from this, the
tourism sector also plays a role in the food processing industry.
5.
Although the country has a wide selection of local food products, the population tends to have better perception of foreign
brands and products;
6.
Consumers in the Philippines are exposed to the western culture and this opens up opportunities for foreign products into the
country. Changing taste trends will enable consumers to demand for unique characteristics and sophisticated flavours in food
products. Imported food products will, thus, stand a greater chance.
7.
The growing younger population, the increase in affluent consumers, and increasing health awareness has led to the demand
for organic and functional foods within the country. Busier lifestyles has driven the need for convenience and processed food
products that are easy to prepare and consume.
Singapore
Singapore is heavily dependent on imports for food products, due to the countrys limited natural resources, livestock, and agricultural
production. Hence, the processed food sector in Singapore is small, relative to other ASEAN countries. Food manufacturers in Singapore
carry out mostly small-scale food production operations. This is partly due to land scarcity in the country, which impedes food processors
wishing to expand their operations domestically. Despite so, the country remains a preferred location for global companies that set up
their regional headquarters here, while carrying out their production operations in neighbouring countries. In addition, most of the global
companies carry out their procurement activities in their regional headquarters here. Due to the nature of the processed food sector, the
country also has limited numbers of manufacturers for food processing machinery and equipment, many of which also cater to the requirements of neighbouring countries.
1.
Pro-business policies such as the Global Investor Programme and a wide range of tax incentives make it easier for foreigners to
set up and operate businesses in the country.
2.
Singaporeans are willing to spend on higher quality products and premium foods, following their rising disposable income.
12
3.
Consumers are more likely to opt for convenience foods and ready-to-eat products, due to busier lifestyles. Another area of opportunity is the emerging trend of health foods that are low in fats and calories, as Singaporeans are becoming more health
conscious.
4.
Singapores vibrant tourism industry helps to boost the local industries as well as the food processing sectors, as demand for
food products continue to rise.
5.
More food processing machinery and equipment is required as Singapore continues to increase productivity within the processed food sector.
6.
Functional food products are gaining in popularity due to the nutrients available in these products. Companies such as F&N
Foods Pte Ltd and Nestl (Singapore) Pte Ltd have incorporated functional ingredients into their products.
7.
The Singapore government has identified the abundant opportunities in the global Halal food sector, and is looking at ways to
increase innovation and production for this sector. Along with a substantial population of Malays in the country, the Halal food
market presents opportunities for companies, and is one of the emerging markets that companies should target.
Thailand
Among the six countries covered in this study, Thailand has among the biggest and most active processed food industry. The country is a
large food exporter, although it still depends on food imports for specific products that are not available in the country. In 2011, the countrys food industry suffered massive loss due to one of the worst floods within the country. Many of the food processing facilities were
forced to stop production due to damages and lack of raw materials. However, in first quarter of 2012, Thailand saw its food exports increase by an estimated 5.3% on a year-on-year growth, signifying potential opportunities. The government has pledged to stimulate confidence among investors in 2012 by looking into further economic stimulus policies and by having various promotional activities targeted
towards foreign investors. Infrastructure projects will also be implemented to restore the confidence of business operators and foreign
investors in the country.
13
1.
The Ministry of Industry is boosting the countrys food industry under the Master Plan for the Food Industry (2010-2014). The
government is looking to increase the value of Thailands food exports by 10.0% annually.
2.
Thailand aims to become one of the worlds top five food exporters by the year 2020. The Food Processing Industry Club plans
to do so by first enabling the country to become the export centre of Southeast Asias food processing sector.
3.
Thailand has a rich abundance of natural food supplies. Its supply of food resources will also benefit the food processing industry, as foreign companies will have no problem accessing raw materials required.
4.
With over 10,000 food processing companies, there is a healthy demand for food processing machinery and equipment in Thailand. Local food manufacturers are familiar with technology-driven equipment, and are willing to make improvements to their
processing equipment, so as to maintain competiveness within the industry. The high demand for domestic and global food
products will continue to drive opportunities for the food processing machinery and equipment sector within the processed food
industry.
5.
Most of the equipment used within the local food industry is imported from other countries, presenting opportunities for foreign
companies.
6.
Tourism is a major driver of Thailands economy. From January to November 2011, Thailand saw a total number of 17.1 million
tourist arrivals, an increase of 21.1% from the same period in 2010. Larger tourist arrivals lead to greater demand for processed
food products.
7.
The affluent population in urban areas is more brand and quality conscious. As such, they are more likely to shop in modern retail formats such as supermarkets, and are more likely to indulge in gourmet food products.
8.
The government is placing greater emphasis on health foods. Demand for health food will be increasing over the next few years
along with rising health awareness. More research work on food nutritional value will be undertaken, and campaigns will be
launched to promote Thai food as healthy food. The health food market is expected to grow by at least 6.0% for packaged food
products by 2014.
9.
According to the Board of Investment of Thailand, the country is ranked first for Halal food exports in the ASEAN region. The
country also has a considerable number of people who consume Halal food products. In addition, Thailand has signed a memorandum of understanding on trade and investment cooperation in Halal products with both Bahrain and Qatar in May 2012.
Hence, the country will be able to continue and expand its processed Halal food products into potential markets such as Singapore, Indonesia, and the Middle East.
10. Functional food products are becoming more popular, especially with consumers who are health conscious. Companies such as
Inthaco Co Ltd and Specialty Natural Product Co Ltd focus on the benefits of functional ingredients.
Vietnam
Vietnams growing economy and urbanisation has encouraged the development in the processed food sector. The processed food sector
in Vietnam is fairly fragmented, as it is dominated by a large number of small and medium domestic companies in a few sectors such as
dairy, confectionery, and fishery products. However, awareness of Vietnamese brands is growing, because of the increase in dominant
players. Supply of food processing machinery and equipment is a growing sector in Vietnam due to the expansion and importance of the
processed food sector in the country. Many foreign suppliers/ manufacturers have been monitoring this market, and have made their foray
into the country. Likewise, the number of local suppliers catering to the local needs has increased. However, supply of higher technology
machinery and equipment is still dominated by foreign suppliers. While this is changing, local players tend to focus more on simpler agriculture processing equipment.
1.
The Vietnam government is actively encouraging foreign investments into the agricultural and food processing sector.
2.
Vietnams popularity as a tourist destination will not only drive the countrys development, but also expand the food service industry and increase the demand of high quality food products.
3.
Rising affluence among the population will drive demand for food of high quality.
4.
Consumers are beginning to opt for processed food products over fresh food products, due to hygiene and price concerns.
5.
The Ministry of Agriculture and Rural Development has approved Vietnams master plan for developing the seafood industry,
with plans to increase the countrys seafood exports to USD10 billion by year 2020. Under the plan, investment for the development of the seafood processing sector is encouraged. There are also plans for building new facilities and a research centre.
14
15
6.
The expansion of Vietnams food retail industry not only allows higher levels of product exposure, it will also drive up food consumption levels within the country. Modern retail formats are able to offer consumers products at lower prices, hence, attracting
more consumers.
7.
The palates of consumers are growing in sophistication, with increased exposure to different food products. Thus, acceptance of
foreign products is rising,
8.
Although still a relatively young market in this area, the Vietnamese are seeking ways to improve the nutritional value of their
food products.
2. Indonesia
2.1 Overview of the Processed Food and Food Processing Machinery and
Equipment Sectors in Indonesia
2.1.1 Brief Overview of Indonesias Economy and Key Statistics
Figure 1: Indonesias Economy and Statistics
Population
234.2 million (as at 2010)
Capital
Jakarta
Area
1.91 million sq km (as at 2010)

USD710.4 billion1 (as at 2010)
GDP
USD815.0 billion2 (as at 2011)

USD3,010.1 (as at 2010)
GDP per capita
USD3,542.9 (as at 2011)

6.1% (2010)
6.5% (2011)
GDP growth rate
6.3%-6.7% (2012 est)
Exchange Rates (as at 30 December 2010)
Sources
IDR9,036 = USD1.00
http://www.bi.go.id

IDR9,113 = USD1.00
http://www.bi.go.id
IDR10,002 = CHF1.00
http://www.bi.go.id
USD1.00 = CHF0.9316
http://www.snb.ch/ext/stats/akziwe/pdf/defren/Devisenkurse.pdf
Source: Badan Pusat Statistik (BPS-Statistics Indonesia), Bank Indonesia, and Coordinating Ministry for Economic Affairs
Indonesia is the worlds largest archipelago and Islamic country. The country comprises over 17,500 islands, of which approximately
6,000 are inhabited. In 2011, the countrys GDP was recorded at approximately USD815.0 billion, reflecting a 6.5% increase from 2010.
According to the Statistics Department of Indonesia, the country also posted a per capita GDP of USD3,542.9 in 2011. 1 Indonesias GDP
growth rate is forecasted at 6.3% to 6.7% for 2012.
Indonesia saw population growth of 1.2% from 2009 to 2010. The country is one of the most populous countries in the world. The multiethnic country consists of more than 300 ethnicities, of which majority of the population are of Malay extraction. The major ethnic groups
include Javanese (45.0%), Sundanese (14.0%), Madurese (7.5%), Coastal Malays (7.5%), and others (26.0%). Other ethnic groups such
as Chinese, Indians, and Arabs can also be found throughout the country.
Statistics Indonesia, http://dds.bps.go.id/eng/brs_file/eng-pdb-23feb12.pdf
16
Indonesias economy is dependent on the mining, utilities, and industrial sectors. With its large population, Indonesia offers huge potential
within the local food industry. Indonesia is also one of the largest palm oil producers and the country is a major producer of cocoa, rubber,
and coal. More information on Indonesias statistics can be found on http://www.bps.go.id/.
2.2 The Processed Food and Food Processing Machinery and Equipment
Sectors in Indonesia
2.2.1 Characteristics of the Sectors
The countrys food processing activities are concentrated around Java, the most populous island in Indonesia. The processed food industry contributed approximately 22.3% of the total manufacturing production in Java 2, thus, showing the importance of the sector in the
country. The processed food sector in Indonesia is focused on domestic production and supply. Suppliers of food processing machinery
and equipment within the country also operate on a small-scale basis, and the machinery and equipment are usually imported from countries such as Germany and the PRC. Further to this, the sector remains underdeveloped and there are opportunities for the sector to
grow, alongside with foreign investments and technology developments.
Food Manufacturers
Food manufacturers in the country are mostly small-scale enterprises, and majority of them are family-owned businesses. While the
country is generally self-sufficient in food, Indonesia also relies on food imports for certain food products and ingredients such as dairy
products.
The country also has a large agricultural base, producing and exporting products such as rice, cocoa, coffee, palm oil, shrimps and meat.
Indonesias domestic agriculture production is a major contributor to the countrys economy. With a large availability of land for agricultural
production, the country is less dependent on imports for products such as palm oil and cocoa. The domestic agricultural production is a
major source of food for the local population, providing access and foods at lower costs. In addition, the agricultural sector supports the
processed food sector by allowing access to a steady input of required raw food products. However, expertise and technology facilities
within the agricultural sector can be further improved.
Food Processing Machinery and Equipment Suppliers

Food processing machinery and equipment within the country are mostly imported and distributed by players in the food industry. Several
local players that manufacture these machinery and equipment also exist. However, most of these manufacturers are companies that
engage in industrial machinery and equipment, and serve not only the food industry alone. These companies usually offer customised
services for food processing companies. In 2011, the Indonesian government scrapped import duties for raw material and processing
Coordinating Ministry for Economic Affairs, http://www.ekon.go.id/media/filemanager/2011/05/27/p/d/pdf_mp3ei.pdf
17
equipment, which also included food processing machinery and equipment. This will continue to open up opportunities within the food
industry.
Food Importers and Distributors

Food importers and distributors in the sector are also dominated by larger food retail players. Such importers and distributors are crucial
in the distribution of food products to traditional markets, grocery stores, convenience stores, supermarkets, and hypermarkets. Modern
outlets such as supermarkets are gradually replacing the traditional markets and grocery stores within the country. The expanding number of supermarkets and hypermarkets also offer more opportunities for foreign food products.
2.2.2 Trade Statistics Volume and Value

In 2011, Indonesia imported approximately USD4.3 billion worth of processed food products. In the same year, the country exported an
approximate USD5.2 billion worth of processed food products. From the statistics, we can see that the largest value of processed food
product imported by Indonesia in 2011 was sugar and sugar preparations. However, as a cocoa producer, cocoa and cocoa preparations
was the largest processed food product exported by the country, in terms of value, in the same year.
Figure 2: Imports and Exports of Processed Food Products in 2011 (USD Thousand)
HS Code
Food and Beverages Classification
0210
Processed meat and edible offal
889
754
0305
Processed fish
10,480
92,157
0401-0406
Dairy Produce
1,148,956
83,600
0901-0903
Coffee, tea & mate
76,437
1,203,473
1601-1605
Preparations of meat, fish and seafood
17,518
745,016
1701-1704
Sugar & sugar preparations
1,900,287
192,355
1801-1806
Cocoa & cocoa preparations
175,507
1,345,278
1901-1905
Preparation of cereal products
185,394
556,121
2001-2009
Preparation of vegetables, fruits and nuts
102,973
252,503
2101-2106
Miscellaneous edible preparations
643,067
535,333
2201-2209
Beverages, spirits and vinegar
67,974
155,264
4,329,482
5,161,854
Total
Imports
Exports
Source: International Trade Centre
In terms of volume, Indonesia imported 3.6 million tons and exported 2.5 million tons of processed food products in 2011. The volume
statistics have also shown that the largest volume of processed food products imported by Indonesia remains sugar and sugar preparations, in line with the import value statistics. Exports of this processed food was significantly lower, at USD570 thousand. This suggests a
large market for sugar-related products in the country.
18
Figure 3: Imports and Exports of Processed Food Products in 2011 (Tons)

HS Code
0210
0305
Imports
Exports
129
422
Processed fish
9,911
17,095
0401-0406
Dairy Produce
335,182
43,490
0901-0903
Coffee, tea & mate
37,920
421,984
1601-1605
5,509
142,421
1701-1704
2,727,266
590,012
1801-1806
43,662
410,210
1901-1905
70,718
290,263
2001-2009
73,973
220,873
2101-2106
196,267
168,270
2201-2209
69,625
207,866
3,570,162
2,512,906
Total
2.2.3 Market Trends and Issues

1.
Indonesias Master Plan for the Acceleration and Expansion of Economic Development Under the governments Master Plan
for the Acceleration and Expansion of Economic Development (2011- 2025), Indonesia is working towards developing its domestic agricultural and processed food sectors. New investment plans for the development of the food industry will be implemented, as the government is looking to develop Indonesia into a base for global food security and a centre for processing agriculture, plantation and fishery products. Besides this, the development of food reserves and storage, and farmers building capacity will be improved in order to sustain food production within the country. Aspects such as infrastructure, human resources,
and technology will also be improved. Lastly, the government is also currently encouraging foreign investments into the pr ocessed food sector.
2.
Changing Consumers Consumption Patterns Changing consumer trends and consumption patterns have also influenced the
processed food industry. Consumers in Indonesia are gaining exposure to different varieties of food products. This has led to the
need for food manufacturers to constantly innovate and produce new flavours. There has also been an increasing sophistication
in consumer tastes, due to increasing income and cultural influences from the Western and European countries. Consumers
consumption patterns are shifting towards prepared food products and away from dietary rice products. There is also growing
heath awareness amongst the population, leading to the increased preference for healthy food.
3.
Demand for Convenience Foods Convenience food products have been gaining popularity in Indonesia due to lifestyle changes. In urban areas, more women are entering the workforce and, thus, convenience food products are growing in demand. In
addition, convenience foods are popular due to the large variety and lower prices.
19
4.
Cheaper Food Products from the PRC Since the implementation of the ASEAN-China Free Trade Agreement in 2010, there
have been an increasing number of imported food products from the PRC into Indonesia. These cheaper alternatives have
caused the local manufacturers and multinational companies to suffer, as it is difficult to compete with the PRCs cheaper imported food products.
5.
Security and Risk Issues Political instability as well as social unrest issues within the country remains as obstacles for Indonesia, as foreign companies tends to countries with low risks factors for investments.
6.
Infrastructure Issues in the Sector The Indonesian processed food sector has been growing in recent years; however, challenges within the sector still exist, and intervention will be required for the further development of this sector. The processed
food sector is facing infrastructure challenges, as infrastructure networks across the country are not well-developed. Lack of facilities and cold room storage impose obstacles for local and foreign companies within the industry, as distribution of processed
food such as frozen products are restricted. In addition, high transportation costs have also impeded the growth of the sector.
7.
Lack of Resources in the Sector - The processed food sector is also currently facing shortage of skilled human resources. A
skilled workforce is needed to support the development of the sector. Technology facilities within the sector also have to be improved, especially within smaller-scale enterprises, where food processing activities are carried out manually and with basic facilities.
8.
Lack of Regulations in the Sector Regulations and policies pertaining to the processed food industry has to be improved in order for the sector to progress. One of the issues faced in the sector is the lack of tariffs imposed for food end-products made
from rice flour, potato, milk and chocolate. Import duty tariffs for these raw materials should be made lower than the tariffs for
their end products.3
9.
Price Consciousness Indonesian consumers pay great attention to the price factors of food products and have low switching
costs. This poses a risk for imported Swiss products, as consumers are more than willing to switch to lower priced products from
countries such as the PRC.
2.3 Competitive landscape

2.3.1 Estimated Number of Players in the Sectors
There are currently more than 5,000 industry players in the processed food and food processing machinery and equipment sectors. Major
food importers include companies such as Carrefour and PT Hero Supermarket Tbk. There are also more than 10,000 food retail outlets
(supermarkets, hypermarkets, and convenience stores) across Indonesia. Traditional markets, grocery stores, and street food vendors
are also expected to make up a large number of units within the industry. There is no clear estimation on the number of suppliers for food
processing machinery and equipment in the country, although they are expected to be mostly small-scale players.
Coordinating Ministry of Economic Affairs, http://www.ekon.go.id/media/filemanager/2011/05/27/p/d/pdf_mp3ei.pdf
20
2.3.2 Segmentation of the Sectors

The segmentation of the processed food and food processing machinery and equipment sectors are discussed below.
Food Manufacturers
Most of the local small-scale food manufacturers are involved in the processing of rice, soybean, and fishery products. Bigger companies
such as Kraft and Campbell's also have ongoing operations in Indonesia. With more than 5,000 food manufacturers in the country, food
manufacturing activities are concentrated around products such as snack foods, fishery, and cocoa products.
For more information on local food manufacturers, interested parties can contact the Food and Beverage Association of Indonesia
(www.gapmmi.or.id).
Suppliers of Food Processing Machinery and Equipment

Manufacturers of food processing machinery and equipment in the country operate on a small-scale basis. Major players that distribute
food processing machinery and equipment include PT Sure Systems and PT Tio Niaga Jaya Lestari. Local manufacturers include companies such as PT Sunpack and PT Hadinovasi Wiramandiri. The country also imports most of its food processing machinery and equipment, which are of higher technologies. Most of the food processing machinery and equipment are also catered towards the confectionery/ bakery sector.

Food importers and distributors play an important role in the local food industry. In addition to the import of cheaper products from other
countries, food importers are gateways for international products in the domestic market. Major importers such as Carrefour are also food
retailers in the country. Modern retail outlets are taking over traditional markets and they provide considerable opportunities with higher
quality of cold chain management and distribution channels. Companies looking to place their products in local retail formats are subjected to costs such as item listing fees and promotion costs. Information on the range of listing fees with major retailers in the country is not
publicly available. Companies are advised to consult the respective retailers for further information.
The National Agency of Drug and Food Control is responsible for the food recall procedures within the country. While detailed information
is not available in English, companies are advised to refer to Indonesias Government Regulation on Food Safety, Quality and Nutrition,
located at http://www.pom.go.id/public/hukum_perundangan/pdf/PP28-_in%20English_a.pdf.
2.3.3 Sources of Imports to Indonesia

The top exporting countries of processed food products for Indonesia include Australia, Malaysia and the PRC. Top exporting countries for
specific food products into the country also include Cote dIvoire (cocoa and cocoa preparations), France (beverages), and Br azil. The
figure below shows the top five importing countries for each product category. Note that the list below is not exhaustive.
21
Figure 4: Top Exporting Countries of Processed Foods to Indonesia

HS Code
Top Five Countries
0210
Australia, Brazil, France,

Singapore, United States
0305
Processed fish
Argentina, Myanmar, Spain, Thailand, Vietnam
0401-0406
Dairy Produce
Australia, France, Netherlands, New Zealand,

United States
0901-0903
Coffee, tea & mate
Brazil, Kenya, India, United States, Vietnam
1601-1605
Australia, Malaysia, New Zealand, the PRC, Singapore
1701-1704
Australia, Brazil, India, the PRC,

Thailand
1801-1806
Cote dIvoire, Ghana, Malaysia,

Papua New Guinea, Singapore
1901-1905
Malaysia, the Philippines, the PRC,

Singapore, Thailand
2001-2009
Brazil, Malaysia, the PRC, Thailand, United States
2101-2106
Malaysia, the PRC,
2201-2209
France, Malaysia, Singapore, Thailand, the United
Republic of Korea, Singapore, United States
Kingdom
2.3.4 Comparison of Food Processing Products Imported from Switzerland vis--vis other
Foreign Countries
According to Figure 4, it is evident that Switzerland is not a major exporter of processed food products into Indonesia. The figure below
shows a breakdown of the value of processed food products exported by Switzerland. In the same figure, the value of respective products
by the largest exporting country is also presented for comparison purposes. In 2011, Switzerland exported a total of USD11.4 million
worth of processed food products into Indonesia, the largest of which are dairy produce. However, Swiss exports of dairy products to
Indonesia are significantly lower than New Zealand.
22
Figure 5: Comparison of Switzerland Export Value of Food Products to Indonesia (US Dollar Thousand)
Food and Beverages
HS Code
Value
Classification
Largest
Value (by Largest
Exporting Country
Exporting Country)
0210
France
0305
Processed fish
Thailand
0401-0406
Dairy Produce
6,331
0901-0903
Coffee, tea & mate

Preparations of meat, fish
1601-1605
and seafood
1701-1704

Cocoa & cocoa
1801-1806
preparations
Preparation of cereal
1901-1905
products
Preparation of vegetables,
2001-2009
fruits and nuts

Miscellaneous edible
2101-2106
preparations
Beverages, spirits and
2201-2209
vinegar
Total
703
5,368
New Zealand
348,365
Vietnam
31,992
Malaysia
3,797
2,240
Thailand
824,369
1,493
Malaysia
75,393
344
Malaysia
85,938
92
United States
29,044
899
PRC
178,501
25
Malaysia
33,557
11,430
The figure above shows that Switzerland is a minor exporter of processed food products into Indonesia. Although this presents opportunities for Swiss companies to enter the Indonesian market, it is vital for companies to conduct sufficient research on the demand of the
respective food products before entry.
2.3.5 Sources of Food Processing Machinery and Equipment Imports to Indonesia

In terms of food processing machinery and equipment, the top countries exporting to Indonesia include Malaysia, Germany, and the PRC.
The figure below shows the top five importing countries for each product category. Note that the list below is not exhaustive.
Figure 6: Top Exporting Countries of Food Processing Machinery & Equipment to Indonesia
HS Code
841981
842220
842230
23
Machinery & Equipment Classification
Top Five Countries
Cooking ranges for making hot
Malaysia, Norway, the PRC, Switzerland, United
drinks, or cooking or heating food
States
Machinery for cleaning drying
Germany, the PRC, Singapore, Switzerland,
bottles & the like
Taiwan
Machines for filling closing sealing
Germany, Italy, the PRC, Republic of Korea, Taiwan
HS Code
Top Five Countries
capsuling labeling bottles cans

boxes bags etc beverages aerators
842240
Other packing or wrapping
Germany, Italy, Japan, the PRC, Singapore
machines
843420
Dairy machinery
Denmark, Germany, Japan, the PRC, Sweden
843490
Parts of milking & dairy machinery
Germany, Japan, Singapore, Sweden, Thailand
843510
Presses crushers etc electrically operated for making
Germany, Malaysia, the PRC, Singapore, Taiwan
wine cider fruit

juices or similar beverages
843590
Parts of presses crushers etc
Australia, India, Malaysia, the PRC, Thailand
electrically-operated for making

wine cider fruit juices & similar
beverages
843810
Bakery machines
Denmark, Italy, Japan, the PRC, Taiwan
843820
Machines for making confectionery
Germany, Italy, Netherlands, the PRC, Republic of

Korea
843830
Machines for sugar making
France, India, the PRC, Thailand, United Kingdom
843840
Brewery machines
Germany, Italy, the PRC, United Kingdom, United

States
843850
843860
843880
Machines for preparation of meat/
Germany, Japan, Netherlands, the PRC, United
poultry
States
Machines electrically-operated for
Germany, Malaysia, Netherlands, the PRC, United
preparing fruits nuts or vegetables
States
Coffee pulpers and other machinery
Denmark, Germany, Italy, the PRC, Singapore
for preparation of beverages

843890
Parts for machinery for the
Germany, Italy, Malaysia, Netherlands, the PRC
industrial preparations/
manufacture of food & drinks
844110
Paper or paperboard or other
Germany, Italy, Japan, the PRC, Taiwan
cutting machines
844120
844130
Machines for making paper bags
Germany, Japan, the PRC, Republic of Korea,
sacks or envelopes
Taiwan
Machines for making paper cartons
Malaysia, the PRC, Republic of Korea, Switzerland,
boxes cases tubes drums etc excl
Taiwan
molding machines
844140
Machines for molding articles in
Italy, Japan, the PRC, Spain, Taiwan
paper pulp, paper or paperboard
24
2.3.6 Comparison of Food Processing Machinery and Equipment Imported from Switzerland vis--vis other Foreign Countries
According to Figure 6 above, Switzerland is one of the top five exporting countries for the following food processing machinery and
equipment to Indonesia:
Machinery for cooking ranges for making hot drinks, or cooking or heating food;
Machinery for cleaning drying bottles & the like; and
Machines for making paper cartons, boxes, cases, tubes, drums, etc excl molding machines.
The figure below shows a breakdown of the value of food processing machinery and equipment exported by Switzerland to Indonesia. In
the same figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported an
approximate USD6.8 million worth of food processing machinery and equipment into Indonesia.
Figure 7: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to Indonesia (US Dollar Thousand)
HS Code
841981
Machinery & Equipment Classi-
Value of Imports
Largest Exporting
Value (by Largest Export-
fication
from Switzerland
Country to Indonesia
ing Country)
466
United States
2,398
253
The PRC
1,169
1,082
Germany
26,028
343
Germany
54,126
drinks cooking or heating food

842220

bottles & the like
842230

capsuling labelling bottles cans
842240

machines
843420
Dairy machinery
Germany
2,131
843490
Thailand
3,671
843510
Presses crushers etc electrically
Malaysia
5,462
Malaysia
945
operated for making wine cider

fruit
843590

beverages
25
HS Code
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Indonesia
ing Country)
843810
Bakery machines
797
The PRC
25,930
843820
Machines for making confection-
261
Germany
19,982
ery
843830
Thailand
9,755
843840
Brewery machines
The PRC
96
843850
The PRC
5,792
The PRC
1,475
2,224
Germany
19,730
599
Germany
6,358
Taiwan
10,030
Japan
4,438
746
Taiwan
5,828
Japan
12,841
poultry
843860

843880

843890

844110

cutting machines
844120

sacks or envelopes
844130
Machines for making paper cartons boxes cases tubes drums etc
excl molding machines
844140

Total
6,771
Overall, Switzerland is not among the top exporters for food processing machinery and equipment to Indonesia. Statistics show that Germany is a major source of such imports, Within Asia, Indonesia obtained machinery and equipment from countries such as Malaysia and
Japan.
2.3.7 Major Players in the Industry

Some of the major players in the processed food and food processing machinery and equipment sectors are presented as below. Note
that the list is not exhaustive.
26
Major Manufacturers of Processed Food

In this section, we profile some of the major manufacturers in Indonesia.
GarudaFood Group
Address
: Wisma Garudafood, Jalan Bintaro Raya 10A, Jakarta 12240
Tel
: (62-21) 729 0110
Fax
: (62-21) 729 0112
Website
: www.garudafood.com
GarudaFood Group operates as a food and beverage manufacturer in the Indonesia. The company produces a wide variety of food and
beverage products including confectionery, snacks, milk, and juices. The companys brand names include Garuda, Leo, and Okky.
GarudaFood Groups food and beverage products can be found in over 20 countries, including Cambodia, South Korea, and New Ze aland.
PT Indofood Sukses Makmur Tbk
Address
: Sudirman Plaza Indofood Tower, 27th Floor, Jl. Jend. Sudirman Kav. 76-78, Jakarta 12910
Tel
: (62-15) 795 8822
Fax
: (62-15) 793 5960
Email
: international@indofood.co.id
Website
: www.indofood.com
PT Indofood Sukses Makmur Tbk (PT Indofood) is one of Indonesias leading food manufacturers. The company produces a wide range
of products including dairy products, snack foods, and pasta. The company carries many well-known brands such as Indomie, Indomilk,
and Indofood. PT Indofood exports its products into countries such as Australia, United States, and New Zealand.
PT Mayora Indah Tbk
Address
: Jl. Tomang Raya 21 23, Jakarta 11440
Tel
: (62-21) 565 5315
Fax
: (62-21) 568 6570
Email
: consumer@mayora.co.id
Website
: www.mayora.com
PT Mayora Indah Tbk is one of the largest food manufacturers in Indonesia. The companys products include confectionery, health food,
and coffee products. Its brand names include Marie Roma, Kopika, and Plonk. Besides establishing six manufacturing facilities in the
region, the company also exports its products to countries in Europe, Asia and the United States.
27
PT Siantar Top Tbk
Address
: Jl. Tambak Sawah 21-23, Waru Sidoarjo 61258
Tel
: (62-31) 866 7382
Fax
: (62-31)866 7380
Email
: customerservice@siantartop.co.id
Website
: www.siantartop.co.id
PT Siantar Top Tbk is a leading player in the Indonesian food and beverage industry. The company manufactures a wide range of products including candy, snack foods, and confectionery. Brand names under the company also include Mister and Go!. The company currently exports to Africa, Middle East, United States and Europe.
PT Yupi Indo JellyGum Tbk
Address
: Jl. Pancasila IV, Cicadas - Gunung Putri, Bogor 16964
Tel
: (62-21) 867 2450
Fax
: (62-21) 867 2455
Email
: sales@yupindo.com
Website
: www.yupindo.com
PT Yupi Indo JellyGum Tbk is one of the leading candy producers in the world. The company manufactures a wide range of gummy candy
products, which are popular and well-known. Its products are marketed under its Yupi brand. The companys products are available in
countries such as Australia, Europe, and the Middle East.
PT Charoen Pokphand Indonesia Tbk
Address
: Ancol VIII Street No. 1, Jakarta, 14430
Tel
: (62-21) 681 2501
Fax
: (62-21) 690 7324
Website
: www.cp.co.id
PT Charoen Pokphand Indonesia Tbk (PT Charoen Pokphand) is a leading producer of processed chicken foodstuffs in Indonesia. The
range of products that PT Charoen Pokphand manufactures includes sausages, nuggets, and chicken wings. The companys brands
include Golden Fiesta, Okey, and Champ.
Major Importers and Distributors of Processed Food

The major importers of processed food in Indonesia include Carrefour Indonesia and PT Hero Supermarket Tbk. The profiles of major
food distributors in the country are also presented below.
28
PT Carrefour Indonesia
Address
: Jl. Lebak Bulus Raya No. 8, Jakarta, 12310
Tel
: (62-21) 758 5800
Fax
: (62-21) 758 5899
Website
: www.carrefour.co.id
PT Carrefour Indonesia operates the largest hypermarket retail outlets in Indonesia. Carrefour Indonesia adopts a multi-retail format,
offering consumers food products in its hypermarkets and supermarkets outlets, which cater to the mass consumers. Currently, there are
over 80 Carrefour outlets located across Indonesia.
PT Hero Supermarket Tbk
Address
: Jendral Gatot Subroto Road, No. 177 Lot 64, South Jakarta, 12870
Tel
: (62-21) 829 8760
Fax
: (62-21) 831 7764
Website
: www.hero.co.id
PT Hero Supermarket Tbk operates a number of hypermarkets, supermarkets and convenience store formats in Indonesia. The company
adopts a small and large format retailing, catering to different groups of consumers in the country. Large formats include Giant supermarket and hypermarket outlets, and Hero supermarket outlets. Small formats include Starmart convenience stores, and Guardian health and
beauty stores. In all, the company operates about 450 retail outlets throughout Indonesia.
CV Libra Food Service
Address
: Jl. Bandengan Utara No 21 Jakarta 11240
Tel
: (62-21) 691 9192
Fax
: (62-21) 691 9292
Email
: wenny@libra-food.com
Website
: www.libra-food.com
CV Libra Food Service is an importer and distributor of food products in Indonesia. The company is a sole distributor for several brands,
including Lotte from the Republic of Korea and Pepperidge Farm from the United States. The company also serves major retailers such
as Sogo, Lotte Mart, and Hero supermarkets.
PT Sukanda Djaya
Address
: MM 2100 Industrial Town Jl. Irian Blok FF-2 Cibitung-Bekasi 17520
Tel
: (62-21) 898 1246
Fax
: (62-21) 898 2010
Website
: www.sukandadjaya.com
29
PT Sukanda Djaya is one of the major food distribution companies in the country. The company imports and distributes major well-known
food brands such as Bavari, Dodo, Farm Union and Heinz, among others.
PT Bahana Gourmet Indonesia
Address
: Jl. Kebon Jeruk Barat RT 08 RW 01 Kelurahan: Cipinang Besar Utara

Kecamatan: Jatinegara Jakarta Timur
Tel
: (62-21) 819 4983
Fax
: (62-21) 851 7134
Email
: sri.haryanthis@bahanagi.co.id
Website
: www.bahanagi.co.id
PT Bahana Gourmet Indonesia is a distributor of gourmet products in the country. The company carries products such as processed
meat, cheese, olive oil and sauces, among others. The sister company of PT Bahana Gourmet Indonesia, PT Bahana Genta Viktory, is
also the sole distributor for brands such as IIIy Coffee and San Pellegrino in Indonesia.
PT DKSH Indonesia
Address
: Menara Jamsostek 10th floor Jl. Jend Gatot Subroto No 38 Jakarta 12710
Tel
: (62-21) 5297 1570
Fax
: (62-21) 5297 1571
Website
: www.dksh.com
PT DKSH Indonesia provides companies with a wide range of services, including sourcing of manufacturers, developing of new products,
marketing and sales, as well as distribution and logistics procedures.
Suppliers of Food Processing Machinery and Equipment

Profiles of some of the major suppliers for food processing machinery and equipment are listed below.
PT Sure Systems
Address
: Jl. Bulevar Eropa No. 33 Lippo Karawaci Tangerang 15115 Banten
Tel
: (62-21) 558 2819
Fax
: (62-21) 558 2682
Email
: smci@suresystemsintl.com
Website
: www.suresystemsintl.com
PT Sure Systems is the authorised distributor of several food processing machinery and Equipment from Australia, Japan, Europe, and
other countries. The company supplies a range of food processing and packaging machinery and equipment. Some brands that the company distributes include Alco, Tipper Tie, and Sepamatic.
30
PT Sanco Indonesia
Address
: Taman Meruya Blok M No. 11 Meruya Utara Kembangan

11620 Jakarta Barat
Tel
: (62-21) 589 5070
Fax
: (62-21) 589 5071
Email
: info@sanco-indonesia.com
Website
: www.sanco-indonesia.com
PT Sanco Indonesia is a manufacturer and distributor of food processing and packaging machinery in Indonesia. In addition to owning the
rights for several foreign food processing machinery and equipment, the company also exports its local range of products to over 20
countries in the world.
PT Tio Niaga Jaya Lestari
Address
: Bukit Golf Mediterania Pantai Indah Kapuk Jl. Marina Raya Rukan Cordoba Blok H No. 16 14470 Jakarta
Tel
: (62-21) 5698 3880
Fax
: (62-21) 5698 3881
Email
: info@tioniaga.com
Website
: www.tioniaga.com
PT Tio Niaga Jaya Lestari is a distributor for confectionery food processing machinery and equipment in the country. The company also
offers services such as product innovations, equipment, and installations. The company also serves major clients including Kraft Group,
Mayora Group, and Nestl in Indonesia.
PT Sunpack
Address
: Jl. Raya Industri Betro No. 19 Betro Sedati Sidoarjo 61253
Tel
: (62-31) 801 0967
Fax
: (62-31) 801 5305
Email
: info@sunpack.co.id
Website
: www.sunpack.co.id
PT Sunpack is a manufacturer of food processing and packaging machinery in Indonesia. The company specialises in the food, chemical,
and pharmaceutical industries, and aims to use the latest technology to ease the production processes within these industries.
PT Hadinovasi Wiramandiri
Address
: Jl. Pluit Putra Raya No. 1 Jakarta 14450
Tel
: (62-21) 666 96 333
Fax
: (62-21) 661 8653
31
Email
: info@hadinovasi.com
Website
: www.hadinovasi.com
PT Hadinovasi Wiramandiri is an engineering consultant for the processed food industry. They offer installation, servicing, and maintenance of food processing machinery and equipment. The company manufactures a range of industrial food processing machinery, customised products and also supplies food service equipment.
2.4 Market Entry Strategies

2.4.1 Opportunities in Overall Market in Indonesia
Indonesia has an active processed food industry that provides foreign companies with room for growth and areas of opportunities. Even
though the country is self-sufficient in certain agricultural commodities, Indonesia is still a net importer for food products such as rice and
sugar, which is required to cope with the increasing population and consumption rates. As an emerging market, Indonesia presents immense opportunities for companies, and room for investment in the local processed food sector. However, doing business in the country
can be difficult, as consumers shopping habits differ across the country. Presented below are the key opportunities identified in Indonesia.
1.
Master Plan for the Acceleration and Expansion of Economic Development (2011-2025) - As part of the Plan, the government
aims to transform the country into a developed one by year 2025, through attaining a 7.0% to 9.0% annual economic growth. A
series of initiatives that will be undertaken will allow a large percentage of the population to have access to better employment,
standard of living, and food security. In addition, Indonesias connectivity with countries around the world will also be strengthened. Ample opportunities to fill the gaps for the Plans outcome also indicate that foreign investors would have lots of areas for
growth within Indonesia.
2.
Worlds main food supplier - As part of the Master Plans platform, Indonesia aims to become one of the worlds main food suppliers and processing centre for agricultural, fishery, and natural resources by 2025 or earlier. This goal will be supportive in expanding the countrys food processing sector, and create opportunities for domestic and foreign companies. Information regarding the Plan can be accessed through http://www.ekon.go.id/media/filemanager/2011/05/27/p/d/pdf_mp3ei.pdf.
3.
Demand for food imports As consumers consumption patterns continue to evolve, the demand for diversified food imports will
also increase. In addition, imports for food products and ingredients are expected to increase as local manufacturers continue to
develop new products in order to attract the younger consumers.
4.
Increasing food expenditure The populations monthly average expenditure on food products has increased from USD26.3 in
2010 to USD32.8 in 2011, reflecting an increase of approximately 2.0% 4. The population spends more than half of their monthly
expenditure on food products. This huge consumption pattern presents opportunities, as there is a constant demand for food
http://dds.bps.go.id/eng/download_file/booklet_leaflet/Booklet_August_2011.pdf
32
within the country. In addition, the large population base also offers significant potential opportunities for the processed food industry.
5.
Opportunities for Halal products Indonesia has one of the largest Muslim populations, and there is massive demand for Halal
food products in the market. Untapped Halal markets such as the Middle East also present opportunities for food manufacturing
companies and exporters with Halal-related expertise. Companies looking into entering Indonesian food industry should place a
greater emphasis on Halal food products.
6.
Adoption of Western culture The adoption of the Western culture by affluent Indonesians will also be a contributing factor towards the higher acceptance level for Swiss products. In addition, the number of affluent Indonesians is growing in the country.
7.
Opportunities for niche products Companies looking to enter Indonesias food processing industry may be facing tight competition from the local manufacturers, as well as imports from cheaper sources such as the PRC and Malaysia. However, companies should look into providing niche food products and leveraging on Switzerlands expertise in food products. Targeting a different segment of the population in urban areas is also more likely to be successful.
8.
Opportunities targeted at the population Indonesia has a rapid growing middle class income group. This segment of the population is expected to purchase better quality foods products. Companies looking to enter the market can tap on this population
segment, and offer quality products. In addition, the immense size of Indonesian population makes the sector attractive to foreign companies and investors.
9.
Growing youth population There is a growing youth population from the ages of 15 to 24 in Indonesia. This segment of the
population is generally more receptive to new products, and has a higher level of acceptance for foreign products. The culture of
snacking in the population also presents opportunities for the snack foods sector.
10. Adequate facilities in urban areas The presence of adequate facilities such as cold storage and modern retail outlets provide
good prospects for companies intending to enter Indonesia. With the increasing number of modern retail outlets, consumers will
be more exposed to international products, and companies can take advantage of this trend by entering the local market.
11. Food Processing Machinery and Equipment Indonesia has recently abolished its policy of import duties for raw materials and
processing equipment in 2011. With a vibrant processed food industry, demand for food processing machinery and equipment
will continue to increase. In addition, the government has also identified the importance of food processing machines and technologies in the country5. This offers opportunities for Swiss companies that supply such machinery and equipment.
12. Food and Hotel Indonesia 2013 The event, to be held from 10 to 13 April 2013, provides opportunities for Swiss companies to
showcase their food processing machinery and equipment. The event may also potentially create business opportunities within
the domestic market.
Indonesia Investment Coordinating Board, http://www3.bkpm.go.id/contents/general/20/food-agriculture
33
13. Functional Foods Functional food products are gaining in popularity globally, and several local food manufacturers such as PT
Heavenly Nutrition Indonesia and PT Demka Sakti have been incorporating such ingredients into food products. Swiss companies may look to introduce and sell other functional ingredients into the local market.
2.4.2 Opportunities for Cheese

In 2011, Indonesia imported a total of 17,717 tons of cheese products, worth approximately USD84.4 million. In the same year, the country exported only 685 tons of cheese products, with an approximate value of USD2.4 million. The figures reflect that the country is a large
importer of cheese products. Statistics below have reflected a drop in number of imports in 2009, following the 2008 global financial crisis.
However, values and volume of cheese products rebounded in 2010, suggesting the continued demand for cheese products.
Figure 8: Trade Statistics (2007- 2011) for Cheese Products in Indonesia

Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
46,065
13,960
1,281
428
2008
54,609
10,557
2,397
541
2009
49,299
13,971
2,005
618
2010
69,388
15,683
2,589
765
2011
84,356
17,717
2,408
685
The top exporting countries of cheese products for Indonesia include Germany and the Netherlands. Major brand names within the country include international players like Kraft and Fonterra. Demand for cheese products are expected to increase in the country, as consumers continue to be influenced by the western food culture. As the Dutch colonially ruled Indonesia, Dutch food culture, such as pasta, is
also predominant within the local population. Increase in affluence within the middle and high-income groups in the population will also
drive the demand for cheese products. Companies looking to enter the cheese market can look into offering a range of cheaper cheese
products by importing in bulk and repackaging for the local market. Companies may also seek and collaborate with local milk producers
as an alternative mode of entry.
2.4.3 Opportunities for Coffee

As one of the largest coffee producers in the world, Indonesia exported 423,411 tons of coffee products in 2011. The total export value
amounted to USD1.3 billion. In the same year, the country imported 29,240 tons of coffee products, worth approximately USD122.0 million. Indonesia has a strong coffee drinking culture, and the country has high levels of coffee consumption. Increasing standards of living
and lifestyle changes have also driven the demand for coffee products within the country.
34
Figure 9: Trade Statistics (2007- 2011) for Coffee Products in Indonesia

Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
122,710
53,737
686,908
334,590
2008
92,879
14,421
1,077,664
491,330
2009
48,619
17,491
916,138
537,776
2010
57,720
23,550
981,568
484,849
2011
122,080
29,240
1,303,497
423,411
The top exporting countries for coffee products into Indonesia include Brazil and Vietnam. Major coffee brand names within th e country
also include Santos Jaya Abadi and Mayora Indah. Instant coffee and sophisticated coffee products are gaining popularity within the
younger generation in the country. Companies looking to enter Indonesias coffee sector may face tight competition, as the country is selfsufficient in coffee production. However, opportunities for niche coffee and quality coffee products exist within the younger generation and
the growing income groups.
2.4.4 Opportunities for Confectionery (Candy and Chocolate)

In 2011, Indonesia imported 19,138 tons of candy and chocolate products that were worth approximately USD69.7 million. In the same
year, the country exported 62,279 tons of candy and chocolate products, worth approximately USD165.2 million. In terms of volume,
imports have declined since 2008, while exports have reflected an increasing trend from the same year. This suggests that the country is
a major processer of candy and chocolate products.
Figure 10: Trade Statistics (2007- 2011) for Confectionery Products in Indonesia
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
46,203
26,537
87,568
48,825
2008
62,308
28,960
93,037
45,196
2009
36,961
12,543
109,059
48,147
2010
52,972
14,694
139,013
55,401
2011
69,718
19,138
165,205
62,279
35
Chocolate confectionery is popular in the country, and is also often used as gifts during festivals and birthdays. The top exporting countries for chocolate products include Malaysia and Singapore. Brands that are popular with consumers include Ceres and Cadbury. As
consumers become more health conscious, chocolate confectionery is expected to face competition from other snack foods such as
healthy snack bars. Companies looking to enter the market should tap on niche opportunities, catering to the premium end of the market,
riding on the health trend adopted by consumers. Dark chocolate products can be expected to grow in demand, as they are lower in fat
and sugar contents.
The larger exporters for candy products into Indonesia include Thailand and the PRC. Popular brands include Mentos, Fruit -Tella, and
Chupa Chups. Children are the main consumers of candy products in the country, and the rising awareness of health and wellness may
encourage consumers to choose alternatives such as sugar-free products. The massive youth population in the country is also a large
market for confectionery products in Indonesia.
2.4.5 Opportunities for Processed Meat Products

Rising income has led to increased demand for meat products within the population. Most of the local meat processing enterprises operate on a small-scale basis, and the majority of the processed meat is consumed domestically. In 2011, Indonesia imported 1,904 tons of
processed meat products, worth approximately USD7.4 million in value. In the same year, the country exported only 505 tons of processed meat products, worth approximately USD0.9 million.
Figure 11: Trade Statistics (2007- 2011) for Processed Meat Products in Indonesia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
10,810
8,070
605
381
2008
6,260
2,990
465
465
2009
4,601
2,055
464
249
2010
4,909
1,536
699
355
2011
7,366
1,904
917
505
The larger exporters for processed meat products into Indonesia include Australia and New Zealand. There are opportunities for processed meat products in Indonesia, as demand for meat products continue to grow within the population. Also, Indonesias welldeveloped hotel and tourism industry has driven demand for high quality meat products. Companies looking to enter the market should
look for opportunities to provide new products, and may look to collaborate with existing meat producers in the local processed food sector.
36
2.4.6 Opportunities for Machines for Making Confectionery

In 2011, Indonesia imported 1,860 tons of machines for making confectionery, worth an estimated USD52.0 million in value. In the same
year, the country exported only 51 tons of machines for making confectionery, worth approximately USD0.4 million.
Figure 12: Trade Statistics (2007-2011) for Machines for Making Confectionery in Indonesia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
11,923
767
1,104
181
2008
10,148
668
599
185
2009
14,052
822
403
64
2010
28,613
1,358
1,444
108
2011
51,952
1,860
365
51
The larger exporters for machines for making confectionery into Indonesia include Germany, Italy, and Netherlands. The statis tics show
an increasing trend in the number of machines for making confectionery in Indonesia. In 2011, Switzerland only accounted for 0.5% of the
import value of such machinery and equipment into Indonesia. The largest exporter to the country is Germany. Hence, Swiss companies
should explore opportunities within this sector.
2.4.7 Opportunities for Coffee Pulpers and Other Beverages Machinery

In 2011, Indonesia imported 3,226 tons of coffee pulpers and other machinery for preparation of beverages, worth approximately
USD69.1 million in value. In the same year, the country exported only 253 tons of such machinery and equipment, worth approximatelyUSD3.6 million.
Figure 13: Trade Statistics (2007-2011) for Coffee Pulpers and Other Beverages Machinery in Indonesia
Import Value
Year
Export Value
Import Volume
(US Dollar
Thousand)
Export Volume
(US Dollar
(Tons)
(Tons)
Thousand)
2007
20,863
1,861
5,245
260
2008
17,517
1,211
5,381
257
2009
20,296
1,342
3,021
248
2010
54,038
2,399
4,741
313
2011
69,075
3,226
3,640
253
37
The larger exporters for machines for coffee pulpers and other machinery for preparation of beverages into Indonesia include Germany,
Italy, and Denmark. The import statistics revealed that there is a large domestic demand for such machinery and equipment. Swiss companies can explore in increasing such exports into Indonesia.
2.4.8 Opportunities for Machines for Molding Articles

In 2011, Indonesia imported 1,533 tons of machines for molding articles in paper pulp, paper, or paperboard, worth approximately
USD26.4 million. In the same year, the country exported only nine tons of such machinery and equipment, worth USD0.1 million. This
indicates that much of the imports are for domestic usage.
Figure 14: Trade Statistics (2007-2011) for Machines for Molding Articles in Indonesia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
4,690
397
67
2008
21,511
6,915
178
23
2009
8,299
736
120
22
2010
14,225
896
117
20
2011
26,352
1,533
148
The larger exporters for machines for molding articles in paper pulp, paper, or paperboard into Indonesia include Italy, Japan, and the
PRC. Switzerland did not export any of these machinery and equipment into Indonesia in 2011. As indicated previously, much of the imports of such machinery are for domestic use, thus, indicating that there may be room for Swiss companies to explore.
2.5 Entry Strategies

Doing business in Indonesia is often made possible by establishing good, personal relationships with the local business partners. Companies should take note of the following forms of business entities that are available in the country. Further information is listed under the
Appendix section of the report. In addition, foreign companies may choose the following market entry strategies that are applicable for
the food industry.
2.5.1 Agents/ Distributors

The use of agents and distributors for direct entry is the easiest mode. Foreign companies are required to appoint an Indonesian agent of
distributor for the sale of their products in the country. Companies are able to lower potential risks and obtain faster access from the assistance of the appointed agents and distributors. Appointment of an appropriate agent or distributor is essential, as the right person chosen
38
will be the companys stepping stone into Indonesias market. The right agent or distributor should also have sufficient knowledge of the
local market and consumer trends.
2.5.2 Establishing a Local Office

Companies can opt to open a foreign representative office in Indonesia. In order to do so, the company must appoint an Indonesian national, or an expatriate representative in the country. The Indonesian Investment Coordinating Board (BKPM) has implemented a one-stop
shop for investors, assisting investors in applying for necessary permits by reducing the paperwork process.
2.5.3 Licensing
Companies can also choose to provide licensing opportunities for the local food manufacturers. This mode of entry also allows companies
to achieve economies of scale, and potential risks, as well as involved costing for this business model, are low.
2.5.4 Joint Ventures

Joint ventures allow foreign companies to join hands with a local partner in the country. Often, this mode of entry is essential, as the local
partner would be able to provide many insights and local contacts, which are useful for successful business operations in Indonesia.
2.6 Regulators Specific to the Food Industry

The Republic of Indonesia Act No. 7 of 1996 is the principal food law governing the industry in the country. Several government agencies
such as the Ministry of Health (www.depkes.go.id/en), Ministry of Agriculture (www.deptan.go.id), and The National Agency of Drug and
Food Control (www.pom.go.id), are responsible for regulating the food industry in Indonesia.
2.6.1 Import Requirements in Indonesia

Companies looking to import food products into Indonesia are required to obtain a Health/ Safety Certificate, which is issued by the responsible authority in the exporting country. In addition, all imported food products must be registered with the National Agency of Drug
and Food Control (BPOM), the government body that is also responsible for issuing a registration number for imported fo od products.
Food product registration may require a long process and companies should consider appointing a local agent or importer to be in charge
of the registration process.
Restrictions on food imports into the country are usually agricultural products such as rice and salt. Companies are advised to consult the
Ministry of Trade (www.kemendag.go.id) for further information.
39
2.6.2 Other Food Imports

The control of imported meat, fruits and vegetables is regulated by the Ministry of Agriculture (www.deptan.go.id). In addition, the import
of marine products is regulated by the Ministry of Maritime and Fisheries (www.kkp.go.id). Apart from the mentioned food products, companies should also note that certain food products such as the alcohol beverage industry in the country is closed to domestic and foreign
investment.
More information can be obtained from http://www.bkpm.go.id/file_uploaded/PPres-36-2010.pdf.
2.6.3 Halal Certification

The Indonesian Council of Ulama (MUI) is responsible for the regulation of Halal food in the country. Although Halal Certification is not
required for all imported food products, it is useful to note that the majority of the population is Muslim, and Halal food products remain a
priority within the country. More information on Halal Certification can be obtained through www.mui.or.id.
2.6.4 Labelling Guidelines

BPOM is also responsible for regulating the food labelling requirements in Indonesia. It is compulsory for processed food pac kages to be
labelled in the Bahasa Indonesia language. The general labelling requirements for imported food products include:
1.
Name of product;
2.
List of ingredients;
3.
Net weight or net contents;
4.
Name and address of any party who produces or imports the food into Indonesian territory; and
5.
Date, month, and year of minimum durability.
In addition to the general labelling requirements, product-specific requirements such as Halal food and products derived from swine (pork)
must be labelled in accordance to regulations. There are also specific regulations pertaining to nutritional labelling, genet ically modified
foods,
and
other
food
products.
Detailed
information
on
labeling
requirements
can
be
obtained
through
http://www.pom.go.id/public/hukum_perundangan/pdf/FoodLabelling1.pdf.
2.6.5 Import of Food Processing Machinery and Equipment

There are no strict regulations on the import of food processing machinery and equipment into Indonesia. However, import duties for
these machinery and equipment apply. Companies are advised to contact the Ministry of Trade (www.kemandag.go.id) for further information.
40
3. Malaysia
Equipment Sector in Malaysia
3.1.1 Brief Overview of Malaysias Economy and Key Statistics

Figure 15: Malaysias Economy and Statistics
Population
Capital
Kuala Lumpur
Area
330,803 sq km (as at 2009)

USD257.8 billion (as at 2010)
GDP
USD277.3 billion (2011 preliminary)
GDP per capita
USD8,792 (as at 2010)

7.2% (2010)
5.1% 2011)
GDP growth rate
4.0% - 5.0% (2012 est.)
Sources
MYR3.0835 = USD1.00
http://www.bnm.gov.my/

MYR3.1770 = USD1.00
MYR3.3755 = CHF1.00
USD1.00 = CHF0.9316
Source: Department of Statistics Malaysia, and Malaysian Institute of Economic Research
Malaysia is a federation of 13 states and a federal territory that comprises three areas Kuala Lumpur, Putrajaya and Labuan. The country is divided into two regions Peninsular Malaysia, and the states of Sabah and Sarawak in Borneo. Malaysia is also located close to its
neighbouring countries, with Thailand at the north of Peninsular Malaysia, and Singapore, at the southern tip of Malaysia.
In 2011, the countrys GDP is estimated to be USD277.3 billion 6. Malaysia saw a population growth from 27.9 million in 2009 to 28.3
million in 2010. The country also recorded a GDP per capita of USD8,792. Bumiputeras (ethnic Malays), accounting for approximately
62.0% of the population, is the predominant ethnic group in the country. This is followed by the Chinese, with 22.6%, Indians at 6.7%, and
lastly, other ethnicities, which make up the remaining 0.7%. With a large population of Muslims in the country, Halal food products continue to gain significant importance with the local consumers.
Department of Statistics, http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/gdp/Current_Q411.pdf
41
Malaysia, being one of the most developed countries in ASEAN, is also one of the worlds largest producers of palm oil, rubber and timber. The countrys agricultural production also contributes raw materials for its processed food sector. The processed food sector in Malaysia is a vibrant industry, and this growing sector contributes approximately 10.0% to the countrys total manufacturing output 7. Further
information on Malaysias statistics can be found on the official website of the Department of Statistics Malaysia, located at
http://www.statistics.gov.my.
Sectors in Malaysia
Malaysia has its own vast production of agricultural products, such as palm oil, cocoa, tea, rice, and poultry, which supports the processed food sector. However, the country remains a net importer of other processed food products, including cereals and dairy products.
Food Manufacturers
Food manufacturers in Malaysia carry out mostly small-scale food production operations/ SMEs, many of which are family-based businesses. There are also large production plants, which include local players and branches of regional companies. They include Ayamas
Food Corporation Berhad, Danone Malaysia Sdn Bhd, Nestl (Malaysia) Berhad (Nestl Malaysia), Hiestand Malaysia Sdn Bhd and
Haco Asia Pacific Sdn Bhd, among others. Some companies from Singapore have chosen to set up their manufacturing facilities in Malaysia as it offers them lower overhead costs and economies of scale. Food manufacturers in the country are also divided into Halal and
non-Halal manufacturers. Halal-certified food manufacturers have to be registered with the Malaysia Department of Islamic Development
(Jakim). Nestl Malaysia is one of the many companies that have leveraged on their deep understanding of the Malaysian and Muslim
cultures, catering their products for the Islamic market. The company is recognised in the Nestl world as the centre of excellence for
Halal issues.8
As Malaysia has a significant amount of land space for agricultural production, the country has also attracted many global companies to
operate in this sector. As such, the country also exports considerable amount of food products, reaching RM86.9 billion of agriculture
export value in 20099. The expanding agricultural sector in the country also has a positive impact on the processed food industry, as it
ensures a steady supply of agricultural produce for processing activities, which include palm oil, chicken-related products, biscuits and
confectionary, among others.

The manufacturers and suppliers of food processing machinery and equipment in Malaysia play an important role in providing equipment
to the countrys vibrant processed food sector. Aside from local manufacturers, there are also distributors who import machinery and
equipment globally. Food processing machinery and equipment include basic grinding machines, and packaging to full production lines,
Propak, http://propak.com.my/
http://www.adoimagazine.com/index.php/news/163-breaking-news-2011/7129-halal-hub-malaysia
Office of the Prime Minister of Malaysia, http://www.pmo.gov.my/dokumenattached/RMK/RMK10_Eds.pdf
8
9
42
where full production lines are more commonly used among bigger companies such as Prima Agri-Products Sdn Bhd. In addition, food
processing machinery and equipment in Malaysia are often imported from countries such as Japan, Europe, and the PRC.

Food importers in Malaysia also play an important role in the distribution of food products. Major food retailers such as the Dairy Farm
Group, Carrefour, and Jusco obtain a major part of their supplies from food importers and distributors. The major food importers are usually larger establishments, and are able to offer consumers with a wider variety of lower priced food products. There are also food importers operating on a smaller scale basis, and offers products to local traditional shops and street food vendors. These food importers
usually import food products from neighbouring countries. Food distributors in the country are also responsible for distribut ing processed
food products to local supermarkets, provision shops, and other retailers. While food importers and distributors bring in a wide range of
products to the country, a key concern among them is to include Halal-certified products in their assortment, especially in this Muslimdominant market.

In 2011, Malaysia imported approximately USD5.8 billion worth of processed food products. In the same year, the country exported an
approximate USD4.9 billion worth of processed food products. Trade statistics show that Malaysia imported the highest value of cocoa &
cocoa preparations in 2011. The highest value for export product also fell in the same category.
HS Code
Imports
Exports
0210
1,285
2,590
0305
Processed fish
32,874
14,397
0401-0406
Dairy Produce
803,883
243,562
0901-0903
Coffee, tea & mate
214,877
14,728
1601-1605
98,455
174,734
1701-1704
1,097,158
297,832
1801-1806
1,301,791
1,381,177
1901-1905
612,638
998,394
2001-2009
269,024
160,963
2101-2106
733,008
935,713
2201-2209
585,729
684,062
5,750,722
4,908,152
Total
According to official statistics, Malaysia imported and exported 3.4 million tons and 2.3 million tons of processed food products respectively. This shows that Malaysia imports more processed food products than it exports. In terms of highest volume of products imported,
Malaysia imported the most sugar and sugar preparations in 2011. The highest export volume for the country in 2011 was beverages,
spirits and vinegar products.
43
HS Code
0210
0305
0401-0406
Imports
Exports
343
395
Processed fish
28,765
9,922
Dairy Produce
209,448
103,527
0901-0903
Coffee, tea & mate
88,811
5,526
1601-1605
44,420
43,351
1701-1704
1,888,950
334,030
1801-1806
396,900
373,973
1901-1905
251,330
438,025
2001-2009
212,874
84,621
2101-2106
191,075
311,769
2201-2209

Total
49,157
549,069
3,362,073
2,254,208

1.
Tenth Malaysia Plan for Agricultural Sector Under the Tenth Malaysia Plan (10MP 2011-2015), the Malaysia government is
looking to enhance the countrys agricultural sector. It has plans for the countrys agricultural sector to become efficient in technology-driven food production, commercial scale farming, farming of new crops, livestock and downstream agriculture activities.
The government is also looking to promote the country as a global hub for palm oil. 10 These initiatives will, thus, propel the processed food sector in Malaysia, and also help create jobs in the sector. The government is also looking into addressing the food
security conditions in the country to ensure the availability, accessibility and affordability of food to the whole population.
2.
Malaysia Plan for Processed Food Sector The Malaysia government has plans to expand and diversify the country into a regional food production and distribution hub. To be implemented throughout the Third Industrial Master Plan (2006-2020), the
Malaysia government will be taking on greater initiatives in order to strengthen the competitiveness of the locally processed
food. Growth in enhancing research and development, adopting of quality standards, and undertaking of the production and export of high value-added and niche products are some of the key factors of the plan.
Food processing enterprises within the country will be encouraged to expand their product range in identified growth areas such
as convenience foods and functional foods. In addition, the government will be placing a greater emphasis on Halal foods, as it
continues to gain importance and popularity across the world. More information on the Third Industrial Master Plan can be obtained from http://www.miti.gov.my12.
10
Office of the Prime Minister of Malaysia, http://www.pmo.gov.my/dokumenattached/RMK/RMK10_Eds.pdf

Ministry of International Trade and Industry, http://www.miti.gov.my/cms/documentstorage/com.tms.cms.document.Document_7674150a-c0a815732d952d95-c9439446/Chap%2019.pdf
11
44
3.
Halal Food is gaining Exceptional Importance in Malaysia The Halal food market has potential opportunities globally, as there
is an increasing Muslim population and the acceptability of Halal foods among non-Muslims worldwide. With the governments
initiatives to develop the country into a Halal food hub, the numbers of Halal food manufacturers in the industry are also expected to increase. The Halal Industry Development Corporation (HDC) has introduced Halal food training programmes for local
industry players, and will continue to further promote the Halal industry.
Furthermore, the local Halal food industry is largely left untapped, with only a small
percentage of the countrys companies
having registered with Jakim as certified Halal manufacturers. Prospects of the industry continue to be optimistic, as Malaysia
would be able to export its recognised Halal certified products to other countries with Halal
food demand, such as the Middle
East region.
4.
Shift towards Healthy and Functional Food - There has been a shift towards preferences for healthy food in the country, as the
population continues to be more educated and possess higher incomes. Minimal-processed foods and organic foods are gaining in popularity within the country. In addition, the governments participation in encouraging wellness and healthy living through
health campaigns has also created awareness within the local population.
5.
Convenience Food Becoming Popular - Lifestyle changes within the population have also led to an increasing demand for convenience foods. There have been an increasing number of women entering the workforce, and reduced time for cooking has
driven up the need for these foods. Prepared and processed foods are seen to be more popular, as people have lesser time to
prepare meals in the traditional way.
6.
Lack of Expertise and Technology - The current processed food sector in Malaysia is made up largely of small and medium enterprises. These companies, in general, lack workers with the expertise and are short of technology equipment for food pr ocessing. Although the government is looking into driving the growth of this sector, the process might take a longer time, given
the large amount of companies involved in this sector.
7.
Different States of Malaysia Developing at Different Rates - The development and growing pace of the states in Malaysia are often not in sync. More developed states such as Kuala Lumpur and Johor will be able to progress at a faster rate than other
states such as Ipoh and Kuching. In addition, infrastructure network and distribution facilities are more advanced in more developed states. Companies wishing to expand across Malaysia can capitalise on the expertise and wide distribution network of established logistic companies to assist in expanding their outreach.
8.
Government Control on Food Prices Companies wishing to enter the Malaysian market have to be aware that there is government control on domestic prices for certain food products. These include products such as sugar, chicken, eggs, red peppers
and meat, among others13..
12

13
OSEC
45
9.
Competitive Market - Most of the domestic food manufacturers are involved in the processing of similar food products, including
sauces, snacks, food, and beverages. This creates a competitive market within the food processing sector, and low prices are
often the key to attracting consumers. This issue can be overcome by the continuous innovation of new products.
3.3 Competitive Landscape

There are currently more than 3,500 industry players in Malaysias processed food and food processing machinery and equipment sectors. The food retailing sector is dominated by larger players such as the Dairy Farm Group and Carrefour. Together with supermarkets,
convenience stores, traditional stores, and wet markets, there are more than 25,000 retail outlets in Malaysia. The suppliers for food
processing machinery and equipment include local manufacturers specialising in various types of machinery, as well as distributors and
trading companies that import machinery from other countries. There is no clear estimation on the number of suppliers for food processing machinery and equipment in the country.

Food Manufacturers
The food manufacturing sector is divided into industry players in several sub-sectors, such as fisheries products, livestock products, fruits
and vegetables, cocoa products, as well as beverages. Most of the food manufacturers in the country operate on a small-scale basis and
these are generally family businesses. Multi-national manufacturers that operate in the country include companies such as Cerebos,
Nestl and Kraft.

Major food importers in the country are dominated by the food retail sector, with hypermarkets as leading importers. The major industry
players include Giant (Dairy Farm Group) and Jusco. Most of the modern supermarkets are located in Malaysias capital city, Kuala Lumpur as well as Klang Valley and major cities and towns of certain population size. For areas outside the countrys capital, traditional stores
dominate the food retail sector. Hence, smaller-scale importers can be found in these areas. As the countrys economy continues to grow,
and, spurred by government economic plans, more supermarket outlets can be expected to increase in rural areas. In addition, companies looking to list their food products with supermarkets are subjected to product listing fees as well as space and shelving fees14. There
is no range of listing fees available publicly. Companies are advised to contact the respective retailers for more information and negotiations.
14
Economic Transformation Programme, http://etp.pemandu.gov.my/News-@-Competition_and_the_retail_industry.aspx
46
Food recall procedures in the country are regulated by the Ministry of Health. It is also the responsibility of a manufacturer, importer, or
retailer to recall, remove, or withdraw any food products that are unsafe for consumption. More information on the regulations pertaining
to recall of food products can be obtained at http://www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf.
Suppliers of Processed Food Machinery and Equipment

There are numerous companies that engage in the manufacturing of food processing machinery and equipment in Malaysia. Most of the
local manufacturers supply the machinery and equipment to local food processors. Other local companies also offer customised solutions
and machinery for the food industry. Additionally, there are companies that import food processing machinery and equipment that are of
higher technologies, to distribute them locally. Larger manufacturing players include Clarity Excel Sdn Bhd and Hup Sheng Machinery &
Industry Sdn Bhd. There are also companies that distribute machinery and equipment for the processed food sector, which include KBP
Multiprocess Sdn Bhd and Duro Pack (M) Sdn Bhd.
Under Malaysias Third Industrial Master Plan (2006 2020), the government will be enhancing the linkages between the food and related industries. These include encouraging food processing manufacturers to keep track with new technologies and also to collaborate with
food manufacturers to customise food processing machinery and equipment. 15 . In addition, the government is also looking to intensify
development and promotion activities for the growth of food processing machinery 16. It is, hence, expected that the demand for advanced
technology food processing machinery and equipment will increase within Malaysia.
3.3.3 Sources of Imports to Malaysia

Malaysia obtains most of its food products from countries such as Australia, New Zealand, and Singapore. Top exporting countries of
processed food products into Malaysia for specific products also include Brazil (coffee, tea & mate), Indonesia (cocoa & cocoa preparations) and Hong Kong (processed fish). The figure below shows the top five importing countries for each product category. Note that the
list below is not exhaustive.
Figure 18: Top Exporting Countries of Processed Food Products into Malaysia
HS Code
Top Five Countries
0210
Australia, Denmark, the PRC, Spain, United States
0305
Processed fish
Hong Kong, Indonesia, Myanmar,

Thailand, Vietnam
0401-0406
Dairy Produce
France, Ireland, the Netherlands, New Zealand,

United States
0901-0903
Coffee, tea & mate
Brazil, Indonesia, the PRC, Sri Lanka, Vietnam,
1601-1605
Chile, Indonesia, the PRC, Thailand, Vietnam
1701-1704
Australia, Brazil, PRC, Thailand, United States
1801-1806
Cote dIvoire, Germany, Ghana, Indonesia, Papua

New Guinea
15

16
Ministry of International Trade and Industry, http://www.miti.gov.my/cms/documentstorage/com.tms.cms.document.Document_7671cf21-c0a815732d952d95-d44318f8/Chap%2011.pdf
47
HS Code
Top Five Countries
1901-1905
Australia, Indonesia, Philippines, Singapore, Thailand
2001-2009
Belgium, the Netherlands, the PRC, Thailand,

United States
2101-2106
Indonesia, the Netherlands,

Singapore, Thailand,
United States
2201-2209
Australia, France, the Netherlands, Singapore,

United Kingdom
Foreign Countries
According to Figure 18 above, Switzerland is not a major exporter of processed foods to Malaysia. The figure below shows a breakdown
of the value of processed food products exported by Switzerland. In the same figure, the value of the respective products by the largest
exporting country is also presented. In 2011, Switzerland exported a total of USD50.4 million worth of processed food products into Malaysia.
Figure 19: Comparison of Switzerland Export Value of Food Products to Malaysia (US Dollar Thousand)
HS Code
Largest
Food and Beverages
Value of Imports
Classification
from Switzerland
Exporting Country to
Malaysia
Value (by Largest

Exporting Country)
0210
16
United States
0305
Processed fish
Thailand
26,674
0401-0406
Dairy Produce
2,038
New Zealand
425,124
0901-0903
Coffee, tea & mate
711
Vietnam
78,347
The PRC
35,631
Brazil
648,137
9,304
Indonesia
526,862
9,646
Thailand
108,445
810
The PRC
78,013
12,810
Singapore
179,461
1601-1605
1701-1704
1801-1806
1901-1905
2001-2009
2101-2106

and seafood
Cocoa & cocoa
preparations
products
fruits and nuts
preparations
753
351
48
HS Code
Food and Beverages
Value of Imports
Classification
from Switzerland
2201-2209
vinegar
Total
Largest
Malaysia
14,347
United Kingdom
50,442
Value (by Largest

Exporting Country)
129,387
-
The figure above reflects that Switzerlands imports of processed food products into Malaysia were significantly lower than the largest
exporting country of the respective food products.
3.3.5 Sources of Food Processing Machinery and Equipment Imports to Malaysia

Countries including Germany, Italy, the PRC, and the United States are among the top exporters of food processing machinery and
equipment into Malaysia. The figure below shows the top five importing countries for each product category. Note that the list below is not
exhaustive.
Figure 20: Top Exporting Countries of Food Processing Machinery & Equipment to Malaysia
HS Code
Top Five Countries
841981
Germany, Italy, the PRC, Taiwan, United States
Drinks, or cooking or heating food

842220
842230
bottles & the like


842240
Germany, Italy, the PRC, Singapore, Taiwan
machines
843420
Dairy machinery
Indonesia, Italy, New Zealand, the PRC, Thailand
843490
Indonesia, the PRC, Singapore, Thailand, United
843510
Japan, Netherlands, the PRC, Taiwan, United
wine cider fruit
States
States

843590
India, the PRC, Sri Lanka, Thailand, United States

beverages
49
HS Code
Top Five Countries
843810
Bakery machines
Germany, Netherlands, the PRC, Taiwan, United

States
843820
Belgium, Germany, Italy, Netherlands, the PRC
843830
Australia, Germany, the PRC, United Kingdom,
843840
Brewery machines
France, Germany, Italy, United Kingdom, United
United States
States
843850

poultry
States
843860
France, Netherlands, the PRC, Taiwan, United
States
Germany, Japan, the PRC, Switzerland, Taiwan
843880
Denmark, Japan, Netherlands, the PRC, United

843890
Denmark, Germany, Netherlands, the PRC, United
States

844110
cutting machines
844120
France, Japan, Oman, the PRC, Taiwan
sacks or envelopes
844130
Hong Kong, Japan, the PRC, Republic of Korea,
Taiwan
molding machines
844140
Italy, the PRC, Singapore, Taiwan, United States
According to Figure 20above, Switzerland is among the top five exporting countries for coffee pulpers and other machinery for preparation
of beverages and paper or paperboard or other cutting machines into Malaysia.
The figure below shows a further breakdown of the value of food processing machinery and equipment exported by Switzerland to Malaysia. In the same figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported
an approximate USD7.5 million worth of food processing machinery and equipment into Malaysia.
50
Figure 21: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to Malaysia (US Dollar Thousand)
HS Code
841981
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Malaysia
ing Country)
197
The PRC
9,451
242
The PRC
1,024
544
The PRC
12,731
455
The PRC
23,207
1,111

842220

bottles & the like
842230

842240

machines
843420
Dairy machinery
10
Thailand
843490
10
Singapore
843510
Japan
The PRC
626
1,171

fruit
843590
390

beverages
843810
Bakery machines
569
Netherlands
9,829
843820
14
Germany
4,598
1,336
ery
843830
Germany
843840
Brewery machines
Italy
843850
26
The PRC
1,659
The PRC
1,577
4,348
The PRC
10,835
237
The PRC
2,958
14
poultry
843860

843880

843890

51
HS Code
844110
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Malaysia
ing Country)
828
Germany
6,408
The PRC
1,816
Taiwan
5,041
PRC
5,209
cutting machines
844120

sacks or envelopes
844130

molding machines
844140

Total
7,484
Overall, the figure above shows that Switzerlands exports of food processing machinery and equipment into Malaysia is significantly
lower than the largest exporting country of the respective machinery and equipment. Most of the countrys food processing machinery and
equipment are obtained from the PRC. Swiss companies may focus on its competitive edge by offering higher technology and specialised
machinery and equipment to the larger food processing companies in the country.
3.3.7 Major Players in the Sectors

The profiles of major players within the processed food and food processing machinery and equipment sectors are presented as below.

Prima Agri-Products Sdn Bhd
Address : 16 & 18, Jalan P10/13, Bandar Baru Bangi, Selangor, 43650
Tel
: (603) 8925 3788
Fax
: (603) 8925 9784
Email
: 2consult@malaysiaexports.com
Website
: www.primahalal.com
Prima Agri-Products Sdn Bhd manufactures and distributes Halal meat based products. The company carries a wide range of products
under brand names such as Prima, Baguz and Le Sate Mas. Besides food retail products, the company also contracts food manufacturing and food catering services. The companys food products can be found throughout countries across Southeast Asia and Europe.
Thye Huat Chan Sdn Bhd

52
Address
: 368-3-12A & 368-4-12A, Bellisa Row, Jalan Burmah, Penang, 10350
Tel
: (604) 228 8123
Fax
: (604) 228 8180
Email
: info@thc.com.my
Website
: www.thc.com.my
Thye Huat Chan Sdn Bhd is one of the largest providers of food ingredients and processed food products in Malaysia. The company
supplies its products to the local food manufacturers, supermarkets, and traditional stores. The company carries brand names that include
Star Brand, Five Stars Brand, Kapal ABC Brand, and Kawi Brand. Besides food processing services, the company also performs warehousing and house brand packing services.
Ayamas Food Corporation Sdn Bhd
Address
: Lot PT 20153, Jalan Pelabuhan Utara, Pelabuh 42000
Tel
: (603) 3167 0836
Fax
: (603) 3167 0242
Email
: webmaster@ayamas.com.my
Website
: www.ayamas.com.my
Ayamas Food Corporation Sdn Bhd is one of the largest integrated poultry operators in Malaysia. The company engages in processing
and retailing of chicken. It carries a wide range of products from fresh chicken, frozen chicken products, and canned chicken products.
Tradisi Emas Sdn Bhd
Address
: No.23 & 25, Jalan Perdagangan 16, Taman Universiti Industrial Park, 81300 Skudai, Johor
Tel
: (607) 520 6779
Fax
: (607) 520 6780
Email
: sales@figofoods.com.my
Website
: www.figofoods.com.my
Tradisi Emas Sdn Bhd is one of the major companies in Malaysias Halal food industry. The company carries a wide range of frozen products under its brand name, Figo. The company has overseas presences in Singapore, Indonesia and Brunei.
Apollo Food Holdings Berhad
Address
: No. 70, Jalan Langkasuka, Larkin Industrial Area, 80350 Johor Bahru
Tel
: (607) 236 5096
Fax
: (607) 237 4748
Email
: apollof@apollofood.com.my
Website
: www.apollofood.com.my
53
Apollo Food Holdings Berhad is a leading manufacturer of chocolate confectionery products in Malaysia. The companys products include
wafer, swiss rolls, and layer cakes products, and are marketed under the Apollo brand. The companys products are also exported to
other ASEAN countries, and countries such as Mauritius and the Middle East.
Major Importers and Distributors of Processed Food Products

The major importers of processed food in Malaysia include retail players such as Giant (Dairy Farm Group), and Jusco. The profiles of the
three larger food distributors in Malaysia are also presented as follows.
GCH Retail (M) Sdn Bhd (Giant Malaysia)
Address
: Mezzanine Floor, Giant Hypermarket Shah Alam Stadium, Lot 2, Persiaran Sukan, Seksyen 13, 40100 Shah Alam,
Selangor Darul Ehsan
Tel
: (603) 5544 8888
Fax
: (603) 5511 0164
Website
: http://www.giant.com.my
Under the Dairy Farm Group of companies, Giant is the leading supermarket retailer in Malaysia. There are currently more than 120 Giant
hypermarkets and supermarkets across the country. Giant offers consumers everyday low prices, a wide variety of products, and are
popular with the local population. The Dairy Farm Group of companies also adopts a multi-retail format in Malaysia. It has 17 Cold Storage outlets, 2 Mercato outlets, and over 390 Guardian outlets across the country catering to different segments of the consumers.
Aeon Co (M) Bhd (Jusco Malaysia)
Address
: 3rd Floor, Jusco Taman Maluri Shopping Centre, Jalan Jejaka, Taman Maluri, Cheras, 55100 Kuala Lumpur,
Tel
: (603) 9207 2006
Fax
: (603) 9207 2006
Email
: feedback@jusco.com.my
Website
: www.jusco.com.my
Under Aeon Co (M) Bhd, Jusco is one of the leading supermarket retailers in Malaysia. Jusco outlets are mostly situated in suburban
areas, and they cater to the vast middle income group in Malaysia. Aeon Co (M) Bhd also adopts a multi-retail format. It has pharmacy
outlets offering health food, and convenience stores in the country, There are currently over 27 Jusco outlets located across Malaysia.
Chop Nam Shin Chan Sdn Bhd
Address
: No 12 Jalan Abadi 1, Taman Malim Jaya, 75250 Melaka
Tel
: (603) 6334 5629
Fax
: (603) 6334 5628
Website
: www.cnscsb.com
54
Chop Nam Shin Chan Sdn Bhd is a distributor for brands including Yeos, Danone Dumex, and F&N Dairies in Malaysia. The company
distributes these processed food products to hypermarkets, supermarkets, provision shops, and other retail formats in the country.
Network Foods (M) Sdn Bhd
Address
: No 6 Jalan U1/14 Section U1 Hicom Glenmarie Industrial Park 40150 Shah Alam, Selangor
Tel
: (603) 5569 1848
Fax
: (603) 5569 1879
Email
: tbthoo@networkfoods.com.my
Website
: www.networkfoods.com.my
Network Foods (M) Sdn Bhd is a food distribution company that distributes its proprietary brand of confectionary, as well as other agency
brands such as Capri-Soone and Toblerone, in Malaysia.
Teik Senn (M) Sdn Bhd
Address
: 727 MK 13 Jalan Perindustrian Bukit Minyak 14100 Bukit Minyak Suberang Perai Tengah, Pulau Pinang
Tel
: (604) 5012 525
Fax
: (604) 5012 535
Website
: www.teiksenn.com
Teik Senn (M) Sdn Bhd is a major distributor of processed food products in Malaysia. The company distributes well-known brands such as
Sunsweet, Arrighi, and Jowico. The company also serves clients just as Tesco, Carrefour, Cold Storage, and other major retail stores in
the country.
DKSH Malaysia Sdn Bhd
Address
: 74 Jalan University 46700 Petaling Jaya
Tel
: (603) 7966 0288
Fax
: (603) 7954 6228
Website
: www.dksh.com.my
DKSH Malaysia Sdn Bhd is an outsource partner that foreign companies can look to collaborate with when entering Malaysias market.
The company offers sourcing, research, marketing, distribution, and logistics services for the processed food industry. The company also
serves major retailers including supermarkets and kiosks across the country.
Major Manufacturers and Suppliers of Food Processing Machinery and Equipment

Manufacturers and suppliers of food processing machinery and equipment include industry players that import these machinery and
equipment from other countries. Profiles of some of the major players are listed below.
55
KBP Multiprocess Machinery Sdn Bhd
Address
: No 67 Jalan P10/21 Seksyen 10 Bandar Baru Bangi 43650 Selangor
Tel
: (603) 8922 3222
Fax
: (603) 8925 1800
Email
: info@kbpmach.com
Website
: www.kpbpmach.com
KBP Multiprocess Sdn Bhd is one of the major suppliers for bakery food processing machinery in Malaysia. The company is the sole
agent for 20 top international food processing machinery manufacturers including, W&P, Pavailler, and Gorreri. The company also manufactures its own range of food processing machinery and equipment.
Duro Pack (M) Sdn Bhd
Address
: No 18 Jalan Utama 2/27 Taman Perindustrian Puchong Utama 47100 Selangor
Tel
: (603) 8051 4379
Fax
: (603) 9235 1062
Email
: duropac@gmail.com
Website
: www.duropack.com.my
Duro Pack (M) Sdn Bhd is another major supplier of food processing machinery and equipment in Malaysia. The company carries a range
of machinery and equipment for the food, snack food, confectionery and frozen food products.
Safe World Enterprise (M) Sdn Bhd
Address
: No 2670 & 2672 Persiaran Tengku Ampuan Rahimah 41200 Klang, Selangor
Tel
: (603) 3371 9120
Fax
: (603) 3371 6981
Email
: safeworld.com@gmail.com
Website
: www.safeworld.com.my
Safe World Enterprise (M) Sdn Bhd specialises in the designing, manufacturing, as well as exporting and importing of food processing
machinery and equipment. The company provides a wide range of machinery for products such as processed meat and confectionery.
Clarity Excel Sdn Bhd
Address
: No 46 Jalan BP 5/6 Bandar Bukit Puchong 47120 Puchong, Selangor
Tel
: (603) 8060 8633
Fax
: (603) 8060 2833
Email
: clarity@fullwell.com.my
Website
: www.fullwell.com.my
56
Clarity Excel Sdn Bhd is one of the larger suppliers for machinery and equipment within the processed food sector in Malaysia. The company specialises in industry packaging machinery, food packaging machinery, and food processing machinery. The company also provides modification services for certain specifications according to customers needs.
Hup Sheng Machinery & Industry Sdn Bhd
Address
: Lot 2-37 Jalan TTC 8 Kawasan Perindustrian Cheng 75250 Melaka
Tel
: (606) 334 2719
Fax
: (606) 334 0692
Email
: hpsheng@streamyx.com
Website
: www.hupsheng.com
Hup Sheng Machinery & Industry Sdn Bhd specialises in snack food processing and packaging machinery in Malaysia. The company also
carries other food processing machinery and a wide range of form, fill and seal packaging machinery.

3.4.1 Opportunities for Overall Market in Malaysia
Malaysia offers a low cost business environment. The Malaysian government is constantly attracting foreign investment into the country.
By restructuring its economy through the 10MP, and introducing financial incentives, the number of foreign investments streaming into the
country is expected to see an increase within the next few years. More information is available on the governments websites, such as
the Malaysian Industry Development Authority (http://www.mida.gov.my) and the Ministry of International Trade and Industry
(http://www.miti.gov.my).
1.
Strengthening of Domestic Economy In Malaysias 2012 Budget, the government has allocated a total of RM232.8 billion for
the countrys development plans to spur the countrys economic growth. A string of incentives will also be implemented in ord er
to attract foreign investments into the country. Strengthening of the domestic economy denotes plenty of opportunities within the
country
for
local
and
foreign
companies.
More
information
on
the
2012
budget
can
be
obtained
from
http://www.treasury.gov.my/pdf/budget/bs12.pdf.
2.
Leading Supplier of Halal Products Malaysia is looking to develop itself into a leading supplier of Halal products. The government has also introduced schemes for the development and production of Halal products, which include grants and tax incentives. For a list of incentives, please refer to http://www.iskandarmalaysia.com.my/foreign-investment-overview.
3.
Halal Food Industry Identified as a priority sector, the Halal food industry will be able to open up opportunities for domestic and
foreign food enterprises. The country presents a new avenue of Halal expertise and manufacturing facilities, which Swiss companies can tap into. Swiss companies may consider partnering with domestic enterprises to produce innovative Halal food products. Most importantly, Swiss companies can draw on Malaysias processed food industry as a springboard towards the global
Halal food industry.
57
4.
Promotion of Tourism Industry The governments plans and measures to promote the tourism industry under the 2012 Budget
will encourage expenditure in the other industries, such as the food sector.
5.
Agricultural and Food Processing Opportunities Malaysia is looking to strengthen its agricultural production, and with emphasis placed on food production and trading, the processed food sector presents many opportunities that Swiss companies can tap
into.
6.
Dependent on Food Imports Malaysia does not produce certain food products and only produces some other foods in insignificant amounts, such as beef and butter. Swiss companies can take advantage of Malaysias scarcity of certain food products,
which creates opportunities for foreign firms to enter the market.
7.
Promotion of the Processed Food Sector The Malaysian government has plans, under the Third Industrial Master Plan (20062020), to encourage investments in the processed food sector, and to encourage the establishments of regional production and
distribution facilities within the country. As the government continues to develop the sector, initiatives such as enhancing the
sectors linkages with other related industries and strengthening the institutional support for the industry will be beneficial in expanding the sector. These initiatives will also provide ample opportunities for foreign companies that enter the local processed
food industry.
8.
Population Growth - Malaysia has seen a consistent increase of 1.3% of its population annually. Besides, Malaysia is also one
of the more popular destinations for expatriates. The increase in population serves as a wide consumer base for the food sector.
9.
Higher Consumer Spending - With an increasing proportion of educated population, Malaysians now have higher purchasing
power and are willing to spend on quality products. Besides, with income growth, the food consumption pattern of the population
is shifting away from staples, such as rice products, towards meat, dairy and seafood products. The changing food consumption
patterns will allow more companies to explore opportunities within the food sector.
10. Well-developed Infrastructure Malaysia has a well-developed infrastructure that may seem attractive to Swiss companies. The
country has accessible infrastructure that provides ease of transportation within the country. The government is also constantly
looking to improve the countrys infrastructure network. Adequate cold storage facilities also provide opportunities for food manufacturers to market and distribute their processed food products.
11. Opportunities for Food Products Rapid urbanisation, changing demographics and lifestyles have brought changes to the populations eating habits. Demand for convenience foods is on the rise, as working women have no time to prepare meals for the
family. The younger consumers are also more willing to pay for convenience food and quality food products. The need for convenience foods will open up opportunities for Swiss companies, as Malaysias domestic food supplies are concentrated within
the agricultural sector. In addition, the population is becoming more familiar with western food options from their trips abroad.
This creates awareness and demand for western food options in the country.
12. Food Machinery and Equipment Malaysia is becoming more proactive in upgrading its processed food machinery and equipment. Annual events, such as the Malaysia International Food Processing & Packaging Exhibition and Propak Malaysia, aim to
encourage local manufacturers and trades to discover the newest technology and machinery in the food processing and packaging industry. This event provides a gateway for Swiss companies looking to enter the food processing machinery and equip58
ment sector. In addition, the country will also play host to the Food and Hotel Malaysia event, which will be held from 17 to 20
September 2013. The event provides opportunities for the introduction of the latest food processing technologies and machinery.
13. Functional food products Functional food products are becoming more popular globally, and Malaysia is expected to follow this
trend; hence, creating opportunities for Swiss companies. Several companies such as Yakult (M) Sdn Bhd and Synerchem Sdn
Bhd are also incorporating functional ingredients into their processed food products.

In 2011, Malaysia imported a total of 11,109 tons of cheese products, worth approximately USD66.6 million. In the same year, the country
exported only 244 tons of cheese, worth an approximate value of USD1.4 million. Cheese products imported into Malaysia has been
showing an increasing trend from 2007 to 2011, in terms of import value. With the low export volume of cheese products, this suggests
that the population is a large consumer of cheese products.
Figure 22: Trade Statistics (2007-2011) for Cheese Products in Malaysia

Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
32,914
8,617
922
235
2008
47,240
9,310
389
77
2009
40,117
9,595
817
131
2010
61,646
13,632
1,321
299
2011
66,589
11,109
1,419
244
The top exporting countries for Malaysia include New Zealand, Australia, and the United States. Major brand names within the country
include Kraft and Fonterra. Cheese products are usually found only in supermarkets such as Cold Storage. However, cheese products are
usually sold at premium prices. The Malaysians changing food consumption towards dairy products, and exposure to western food products have resulted in increasing cheese imports into the country. With rising disposable income, growths in the consumption of cheese
products can be expected .Gourmet cheeses are also becoming more popular, and the increase in number of expatriates within the country will drive the demand for gourmet cheese products. Companies looking to enter the cheese products market in Malaysia can explore
opportunities in providing affordable cheese products.

In 2011, Malaysia imported a total of 89,053 tons of coffee products, valued at approximately USD251.0 million. In the same year, the
country exported 61,469 tons of coffee products, with an approximate value of USD314.5 million.
59
Figure 23: Trade Statistics (2007- 2011) for Coffee Products in Malaysia
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
(US Dollar
Export Volume
(Tons)
Thousand)
2007
114,864
53,209
108,574
28,226
2008
139,214
56,047
142,886
36,119
2009
113,940
51,618
168,593
49,273
2010
157,823
73,638
244,499
69,721
2011
250,967
89,053
314,489
61,469
As a small producer of coffee beans, Malaysia exports more coffee products than it imports. The top exporting countries for Malaysia
include Vietnam and Indonesia. Major brand names within the country include Nescaf and Power Root. Coffee products can be found in
most retail shops, including traditional stores, across Malaysia. The increasing number of people joining the workforce in Malaysia has
also contributed to an increase of coffee consumption within the country. Coffee consumption in the country can be expected to increase
gradually, as consumers are more open to trying gourmet coffee products. Increase in food spending in cafs such as Starbucks and Old
Town will also drive demand for coffee products.

Malaysia is one of the top countries in the world for the production of cocoa. The country also has high consumption levels of candy and
chocolate confectionery. In 2011, Malaysia imported 42,325 tons, worth approximately USD176.7 million, of candy and chocolate products. The country exported approximately 65,647 tons of candy and chocolate products worth about USD205.3 million. The statistics
show that Malaysia exported a higher volume of candy and chocolate products in 2011, suggesting that the country produces and processes higher amounts of these products.
Figure 24: Trade Statistics (2007- 2011) for Confectionery Products in Malaysia
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
(US Dollar
Export Volume
(Tons)
Thousand)
2007
97,557
28,706
105,345
48,421
2008
119,216
33,118
134,496
59,966
2009
120,489
30,416
123,021
55,145
2010
139,977
33,241
165,859
59,999
2011
176,732
42,325
205,343
65,647
60
The top exporting countries of these products to Malaysia include Singapore and Thailand. Major brand names within the country include
Nestl and Cloud 9. Premium brands also include Royce Chocolate and Godiva. Candy and chocolate products can be found easily
across Malaysia, and are one of the basic snack foods for the population. A variety of products are available, and it is necessary for companies to innovate their products to attract consumers. In terms of premium brands, they are more appealing to the affluent consumers in
urban areas.
3.4.5 Opportunities for Processed Meat

Malaysia has an increasing consumption of meat products, as the food consumption patterns of the population are shifting away from
staples, such as rice products. The country depends much on beef food imports. In 2011, Malaysia imported 6,157 tons of processed
meat products, worth approximately USD9.2 million. In the same year, the country exported 14,742 tons of processed meat products,
worth at USD56.1 million.
Figure 25: Trade Statistics (2007- 2011) for Processed Meat Products in Malaysia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
6,576
8,605
18,618
6,517
2008
9,790
8,834
39,251
11,928
2009
11,675
9,755
43,262
14,676
2010
12,282
9,839
50,857
15,201
2011
9,249
6,157
56,074
14,742
The largest exporter for processed meat products into Malaysia is the PRC. Meat products are getting increasingly popular within the
country, and consumption levels are expected to increase. Statistics show that Malaysias export value is higher than the import value,
indicating that the country is a net producer of meat products. Swiss companies importing meat products should focus on the lack of types
of meat products in Malaysia, such as quality gourmet and beef products.
3.4.6 Opportunities for Cooking Ranges

In 2011, Malaysia imported 227,144 units of cooking ranges for making hot drinks, cooking, or heating food, worth approximately
USD35.3 million. In the same year, the country exported 9,633 units of these cooking ranges, worth at USD4.1 million.
61
Figure 26: Trade Statistics (2007-2011) for Cooking Ranges in Malaysia

Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
13,992
589
(tons)
1,330
50
(tons)
2008
22,344
847
(tons)
9,842
335
(tons)
2009
19,633
687
(tons)
3,009
94
(tons)
2010
27,226
979
(tons)
3,417
119
(tons)
2011
35,258
227,144 (units)
4,107
9,633 (units)
The largest exporters for cooking ranges into Malaysia include the PRC, Germany and Italy. Statistics show that Malaysias import value
and volume of these machinery and equipment is much higher than the export values, suggesting high demand of such machinery and
equipment within the country. In 2011, the value of Switzerland exports for cooking ranges into Malaysia comprised only 2.1% of the
highest exporter, the PRC. Swiss companies may explore further opportunities in exporting these machinery and equipment.
3.4.7 Opportunities for Other Packing or Wrapping Machines

In 2011, Malaysia imported 107,785 units of cooking other packing or wrapping machines, worth approximately USD82.1 million. In the
same year, the country exported 2,842 units of other packing or wrapping machines, worth at USD19.4 million.
Figure 27: Trade Statistics (2007-2011) for Other Packing or Wrapping Machines in Malaysia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
60,671
1,804
(tons)
9,879
179
(tons)
2008
56,073
1,518
(tons)
25,005
708
(tons)
2009
51,584
1,301
(tons)
9,230
213
(tons)
2010
66,783
1,708
(tons)
10,460
271
(tons)
2011
82,147
107,785 (units)
19,371
2,842 (units)
The largest exporters for other packing and wrapping machines into Malaysia include the PRC, Germany and Italy. Statistics reflect that
Malaysias import value and volume of these machinery and equipment is much higher than the export values, suggesting high demand
of such machinery and equipment within the country. While Swiss companies do already export such machinery and equipment into Malaysia, opportunities still exist within the food sector.
62
3.4.8 Opportunities for Bakery Machines

In 2011, Malaysia imported 12,568 units of bakery machines that were worth approximately USD30.9 million. In the same year, the country exported 1,728 units of bakery machines, worth at USD5.0 million.
Figure 28: Trade Statistics (2007-2011) for Bakery Machines in Malaysia

Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
17,628
865
(tons)
2,527
103
(tons)
2008
15,637
662
(tons)
3,894
148
(tons)
2009
26,343
978
(tons)
2,210
81
(tons)
2010
21,298
872
(tons)
4,435
76
(tons)
2011
30,896
12,568 (units)
5,024
1,728 (units)
The largest exporters for bakery machines into Malaysia include the Netherlands, Germany and the PRC. The figure above shows that
Malaysias import value of bakery machines in 2011 is significantly higher than its export value of such machinery and equipment. This
suggests that there is a high demand and usage of bakery machines within Malaysia. While Swiss companies do already export such
machinery and equipment into Malaysia, opportunities for expansion still exist. The largest exporter of bakery machines in 2011 was the
Netherlands.

In 2011, Malaysia imported 55,461 units of coffee pulpers and other machinery for preparation of beverages, which were worth approximately USD53.8 million. In the same year, the country exported 1,116 units of these machinery and equipment, worth around USD7.0
million.
Figure 29: Trade Statistics (2007-2011) for Coffee Pulpers and Other Beverages Machinery in Malaysia
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
24,812
869
(tons)
6,093
193
(tons)
2008
36,836
1,053
(tons)
8,199
241
(tons)
2009
27,629
766
(tons)
8,106
209
(tons)
2010
39,505
1,130
(tons)
6,004
170
(tons)
2011
53,770
55,461 (units)
6,953
1,116 (units)
63
The largest exporters for coffee pulpers and other machinery for preparation of beverages into Malaysia include the PRC, Germany, and
Switzerland. While Switzerland is one of the top five exporters of these machinery and equipment into Malaysia, the statistics above
suggest that demand for such machinery and equipment is high within the country. Hence, this may be an area of opportunity for Swiss
companies looking to export more of such machinery and equipment into the country.

Companies looking to enter the processed food and food processing machinery and equipment sectors in Malaysia should take note of
the countrys culture and traditions of doing business. In addition, it is mandatory for a foreign company to register its business with the
Companies Commission of Malaysia (CCM) in order to carry out business operations within the country. There are three forms of business structures in Malaysia: Sole Proprietorship, Partnership, and Limited Company. More information on Malaysias business entities
can be found at the Appendix section of the report.
There are various modes of entry into Malaysia, as the country is open to foreign investments.

Using agents and distributors are the easiest mode of entry into Malaysia, as these local agents and distributors are respons ible for handling the necessary paper work. Most of them also have local contacts, which is advantageous when dealing in a large country such as
Malaysia.
3.5.2 Direct Entry

Malaysia provides opportunities with its abundance of land supply and preferred economies of scale. Direct entry into the country may
seem more attractive to companies looking to gain control of their own assets in Malaysia. Swiss companies can enter Malaysia by incorporating a company or a local branch in the country. Setting up a Limited Company is permitted in Malaysia.

Joint ventures with trustable local establishments often ease the entrance into the Malaysia market. Companies from Switzerland can
contemplate joint ventures with the local food manufacturers in Malaysia to produce Halal products.
64
3.5.4 Local Distribution Channels

Exports to Malaysia are available in various forms of distribution channels. Companies from Switzerland can enter the market by local
distribution channels, for example, supermarkets, hotels and well-established retailers. The use of a local agent or distributor may be
useful through this form of market entry.

In Malaysia, The Food Safety and Quality Division of the Ministry of Health is responsible for the implementation of food laws. The Food
Act 1983 and the Food Regulations 1985 governs the various aspects of food safety and food-related regulations. Specific details of Food
Regulations 1985 can be accessed through http://fsis2.moh.gov.my/fosimv2/HOM/frmHOMFARSec.aspx?id=21.
The Food Safety and Quality Division is also responsible for food safety certification schemes such as the Health Certificate. An import
license is required for importing alcoholic beverages, animal and animal products, certain health and medicinal food products, meat and
meat products, plant and plant products, poultry and poultry products into Malaysia. The Import license can only be applied by a Malaysian registered company.
For more information, companies are advised to visit the following websites at www.moh.gov.my and
www.mida.gov.my.
3.6.1 Import Requirements in Malaysia

Aside from the regulatory terms that companies are supposed to adhere to, the import process also involves the Malaysia Royal Customs
and Excise Department, an agency of the Ministry of Finance Malaysia. The Royal Customs and Excise Department is responsible for
the efficient collection of indirect taxes such as customs duty for import and export, sales tax, and the controls of carriers, persons, and
articles that are entering or departing Malaysia.
In addition, the Department of Veterinary Services is responsible for the random checking and sampling for imported food products into
Malaysia. More information can be found at http://agrolink.moa.my/jph.
While there is limited information on the quota on food imports into Malaysia, there are certain food products that fall under the controlled
commercial products category. These products include wheat flour, milk and other sugars (other than refined sugar). For further information,
please
refer
to
the
Ministry
of
Trade
and
Industry
website,
located
at
http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.article.Article_12ad3c4f-ac1c231a-1ca18370-40d3fe63. Companies may also

wish to refer to the list of food products specified under the Customs (Prohibition of Import) Order 1998 from the official website of the
Royal Malaysian Customs Department, located at www.customs.gov.my.
65
3.6.2 Import of Meat and Poultry Products

The Department of Veterinary Services is also responsible for ensuring the safety of meat and poultry products. All meat and livestock
products that are imported into the country must be certified Halal, and the products must be from slaughterhouses that are approved by
the Malaysian veterinary and religious authorities. Halal Certification within the country is regulated by the Malaysia Depar tment of Islamic
Development (Jakim). More information can be found through http://www.islam.gov.my/.
Imports of meat products must always be accompanied by an import license, Veterinary Health Certificate (signed by a competent veterinary officer of the Government Veterinary Authority of the country of export), and a Halal Certificate (issued by approved Islamic authorities).
3.6.3 Incentives for Food Production

Specific incentives have been introduced to attract investment in food projects, at farm level and production/ processing level. Tax incentives given are as follows:
1.
A company which invests in its subsidiary that is engaged in food production may be considered for tax deduction equivalent to
the amount of investment made in that subsidiary.
2.
The subsidiary undertaking food production may be considered for a full tax exemption on its statutory income for 10 years of
assessment for new project, or five years of assessment for expansion project.
Such incentives may be granted based on the following conditions:
1.
2.
3.
The investing company of the subsidiary that undertakes food production has 70% equity in the said subsidiary.;
The food production activities are approved by the Minister of Finance.
The food production project is to commence within one year from the date of the approval of the incentive.
Please refer to http://www.mida.gov.my/env3/index.php?page=agricultural-sector for more information. The Malaysian government has
also
released
information
on
the
promoted
activities
and
products.
Please
refer
to
http://www.mida.gov.my/env3/uploads/images/invest/invest-pdf/APP5_02032012(2).pdf
and
http://www.mida.gov.my/env3/uploads/images/invest/invest-pdf/APP4_02032012(2).pdf.

As majority of the Malaysian population is made up of Bumiputras, labelling for food produced, prepared, or packaged in Malaysia has to
be in Bahasa Malaysia. The general information required for labelling includes:
1.
Name of food.
2.
Minimum net content of food in metric system/minimum drained weight for food packed in liquid.
3.
Date, month and year of manufacture.

66
4.
Date, month and year of expiry.
5.
Product registration number/label approval number (depending on category of food).
6.
Name and address of manufacturer and the re-packer, together with country where product is imported/ re-packed.
7.
Essential ingredients list in descending order with proportion by weight.
8.
Statement of contains permitted (type of relevant food additives).
Details
of
the
labelling
requirements
can
be
accessed
through
the
Food
Regulations
1985
Act
http://fsis2.moh.gov.my/fosimv2/HOM/frmHOMFARSec.aspx?id=21.
Other References
In addition to the general labelling requirements, other labelling requirements are also compulsory, depending on the food pr oduct. For
example, nutrition labelling is compulsory for food products such as milk and prepared cereal foods. Reference to Nutrition Labelling and
Claims can be found at
http://fsq.moh.gov.my/uploads/Guide%20to%20Nutrition%20Labelling%20and%20Claims.pdf
Companies are advised to visit the Food Safety and Quality Website (http://fsq.moh.gov.my) and the Food Safety Information System
website (http://fsis.moh.gov.my) for more comprehensive information on other food import regulations and labelling requirements.

Food machinery and equipment imports may also be considered for import duty and/ or sales tax exemption.17 While the Customs (Prohibition of Import) Order 1998 specifies the list of prohibited imports into Malaysia, food processing machinery and equipment imports are
not listed in the document. Companies may wish to contact the Royal Malaysian Customs Department (www.customs.gov.my) for further
information on the import requirements and restrictions for certain food processing machinery and equipment.
17
Malaysian Industrial Development Authority, http://www.mida.gov.my/env3/uploads/images/eServices_Portal/Forms_and_Guidelines/Services/DUTY%20EXEMPTION/PCservices%20120911.pdf
67
4. Philippines
Equipment Sectors in the Philippines
4.1.1 Brief Overview of the Philippiness Economy and Key Statistics
Figure 30: The Philippines Economy and Statistics
Population
92.34 million (as at May 2010)
Capital
Manila
Area
300,000 sq km (as at 2010)
GDP
USD223.02 billion (2011)
GDP per capita
USD2,415.301 (2011)
1.1% (2009)
GDP growth rate
7.6% (2010)
3.7% (2011)
Sources
PHP1 = USD0.0228
http://www.bsp.gov.ph/statistics/spei_new/tab37.htm
PHP1= CHF 1.07325
http://www.bsp.gov.ph/statistics/spei_new/tab37.htm
USD1 = CHF0.9316
Notes:
1
Latest census is May 2010 (http://www.census.gov.ph/data/pressrelease/2012/pr1227tx.html)
Derived by dividing USD converted GDP by Population of 92,337,852 in 2010.
Source: National Statistics Office and National Economic and Development Authority Republic of the Philippines
The Philippines consists of over 7,100 islands lying between the South China Sea and the Pacific Ocean, and has one of the largest
populations in ASEAN. In 2010, the country reported GDP of USD223.0billion, reflecting a 7.6% increase from 2009. In the same year,
the country also posted a capita GDP of USD2,415.30. It was also reported that the Philippines GDP has slowed down in the fourth
quarter 2011, reflecting a growth of 3.7%, as compared to 7.6% year-on-year18.
The population in the Philippines grew over 6.0% from 2007 to reach 94.01 million in 2010. Majority of the population is made up of Tagalog, while other ethnicities in the country include Cebuano, Ilocano, Bisaya/ Binisaya, Hiligaynon Ilonggo, Bikol, Waray, and other minorities19.
18
19
National Statistical Coordination Board, http://www.nscb.gov.ph/sna/2011/4th2011/2011hi4.asp

National Statistics Office, Philippines, http://www.census.gov.ph/data/publications/2011PIF_final.pdf
68
Major industries in the Philippines include agriculture, food processing, textiles and garments, and the service sector. Further information
on the Philippines statistics can be found on the official website of the National Statistics Office, located at www.census.gov.ph.
Sectors in the Philippines
The processed food sector is one of the dominant primary industries in the Philippines manufacturing sector. In 4Q 2011, the sector contributed PHP308,926 million (49.3%) to the gross value of the entire manufacturing industry 20. The sector comprises major food products
such as fruits and vegetables, meat products, beverage, confectionery, and fisheries products. Besides foods produced for domestic
consumption, the country is a large exporter of sugar, tropical fruits, and poultry products. The food processing machinery and equipment
sector also plays an important role within the food industry. Suppliers of these machinery and equipment ensure that the food processing
companies have access to machinery and equipment, including those that are imported and of higher technologies.
Food Manufacturers
Majority of the companies in the local processed food sector are small-scale enterprises and cottage industries. However, a few larger
companies, such as San Miguel Corporation and Universal Robina Corporation, dominate the countrys food industry. This is in addition to
a few other leading global food companies, such as Nestl and PepsiCo, in the country. A large portion of the countrys food manufacturing operations are focused on products such as snack foods, coconut products, rice, and coffee products. Located between the South
China Sea and Pacific Ocean, the country has a regular supply of seafood for the food processing sector as well.
The Philippines has a large land mass attributed to agricultural purposes, and the agricultural sector contributed approximat ely 13.9% of
the countrys GDP in 201021. The agricultural sector plays an important role in providing raw materials, allowing the country to be selfsufficient despite its growing population.

The food processing and machinery equipment segment in the Philippines appears to be segmented, with majority of the industry players
offering food service equipment. These food service equipment comprise mostly kitchen appliances or equipment used in food k iosks,
restaurants and other small businesses engaged in food retail.
20
21
Philippine National Statistical Coordination Board, http://www.nscb.gov.ph/sna/2011/4th2011/2011mfg4.asp

National Statistics Office, http://www.census.gov.ph/data/publications/2011PIF_final.pdf
69

Food importers in the Philippines play a large role in the distribution of food products to the huge population in the countr y. In addition,
due to the number of modernised food retail outlets, including traditional stores, there are also other smaller importers that import cheaper
food products from neighbouring countries.
Food imports in the Philippines are reportedly worth USD4.7 billion, of which 60.0% of food imports are ingredients for processing22.
Philippine consumers also have an affinity for sweet products and a fondness for cheese. In the country, food products sold on the retail
tend to sell better in smaller consumer packs for affordability.

In 2011, the Philippines imported approximately USD2.6 billion worth of processed food products. In the same year, the country exported
approximately USD1.7 billion of processed food products. The largest value of imported processed food products was dairy products.
Sugar products are the countrys largest export among the processed food products for 2011.
HS Code
Imports
Exports
0210
1,675
123
0305
Processed fish
402
14,688
0401-0406
Dairy Produce
863,440
171,161
0901-0903
Coffee, tea & mate
60,548
1,483
1601-1605
9,228
295,330
1701-1704
240,176
448,207
1801-1806
106,295
7,048
1901-1905
282,202
135,850
2001-2009
116,010
428,704
2101-2106
635,923
104,057
2201-2209
259,119
72,074
2,575,018
1,678,725
Total
In terms of volume, the Philippines imported 1.6 million tons of processed food products in 2011. The country exported 1.8 million tons of
processed food products in the same year. iImports and exports of sugar products are the largest among the processed products for this
country for 2011.
22
http://fiphilippines.ingredientsnetwork.com/
70
HS Code
Imports
Exports
0210
903
47
0305
Processed fish
294
3,725
0401-0406
Dairy Produce
322,019
46,208
0901-0903
Coffee, tea & mate
25,792
383
1601-1605
28,414
102,319
1701-1704
370,599
909,671
1801-1806
34,003
2,944
1901-1905
162,812
71,036
2001-2009
160,337
525,928
2101-2106
280,757
73,878
2201-2209
242,034
85,293
1,627,964
1,821,432
Total

1.
Development of the Processed Food Industry According to the SME Development Plan (2004-2010), the Philippine government has placed emphasis on developing the local food processing industry over the past six years. Improvements under the
plan included the improvements to the food regulations, logistics, processing facilities and equipment, and conducting of consumer research.23
In addition, the Department of Science and Technology has announced in early 2012 the implementation of its Five-Point DOST
Development Program to build and enhance the countrys advanced food production technology.24
2.
Emerging Food Trends in the Sector Halal and Kosher food products are becoming more popular in the country. Large food
manufacturers are also striving to meet the demand for these quality food products. In addition, the Department of Trade and
Industry has launched an advocacy programme since 2008, which aims to educate local food manufacturers about the significance of Halal products25. The Kosher Certification Program was also set up to assist local food manufacturers in obtaining the
Kosher Certification, and to assist in penetrating the global kosher market 26.
23
Department of Trade and Industry, http://www.dti.gov.ph/uploads/file/SMED%20plan%202004-2010.pdf

Department of Science and Technology,
http://www.dost.gov.ph/index.php?option=com_content&view=article&id=1089:sec-mario-g-montejos-2011-yearend-message&catid=1:latest&Itemid=150
25
Center for International Trade Expositions and Missions,
http://www.citem.gov.ph/main/news.htm?title=Philippines%20an%20emerging%20destination%20for%20Halal-certified%20products&newsid=343
26
Center for International Trade Expositions and Missions, http://www.citem.gov.ph/kosher/index.php?page=article1
24
71
3.
Growing Middle Income Group The expanding middle-income group in the Philippines is creating a demand for ready-to-eat
foods and imported food products. This group of consumers is also more likely to make purchases in modernised food retail outlets such as supermarkets and convenience stores, which opens up opportunities for imported food products.
4.
Health Trend in the Sector An increasing awareness of healthy lifestyles has created the demand for healthy foods. The population is starting to look for alternative healthy food products with no preservatives, colourings and other additives. As such, food
companies are also constantly developing new products to meet the demand of this growing segment.
5.
Inadequacy in Logistics and Facilities Food distribution within the country is lacking in standards due to the inadequacy in logistics and cold chain infrastructure. Often, suppliers find it hard to penetrate markets outside the countrys capital and urban areas due to the lack of supply chain.
6.
The Sector is Highly Fragmented With a large number of unregistered food manufacturers and small-scale enterprises within
the Philippines, the processed food sector is highly fragmented. In addition, lack in skilled workforce and food technology within
smaller enterprises remain obstacles for the sector.
7.
Potential Business Risks Factors such as corruption and government issues continue to pose potential business risks for foreign companies27.
8.
Slow in Adoption of Technology A large majority of the food processing companies are family-owned and/ or small-scale enterprises. These companies are often unable to keep up with food processing technology due to the high costs and low availability,
in cases of rural areas.

There are currently more than 11,600 food manufacturing companies in the local food processing sector. While approximately 95.0% of
them are small and medium enterprises28, there are several larger domestic players that dominate the industry. There is no clear estimation on the number of food importers, distributors, as well as suppliers of food processing machinery and equipment in the country.
27
World Bank Group,

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/0,,contentMDK:22427109~pagePK:146736~piPK:146830~theSitePK:
226301~isCURL:Y,00.html
28
Center for International Trade Expositions and Missions ,
http://www.citem.gov.ph/main/news.htm?title=Major%20food%20brands%20play%20big%20brother%20to%20SME%20exporters&newsid=298
72

The segmentation of the processed food and food processing machinery and equipment sectors include three main categories of industry
players, which are discussed below.
Food Manufacturers
The sector consists of more than 11,600 food processing enterprises, many of which are small and medium enterprises 29. Manufacturers
of food and beverage products in the local food processing industry are divided into eight sub-sectors, including: cereal preparations;
meat preparations; fish and marine preparations; dairy products and eggs; processed fruits and vegetables; beverages; coffee, cocoa,
tea; and other food commodities (including seasonings and sugar products).
Some of the countrys food manufacturers are members of the Philippine Chamber of Food Manufacturers, Inc (www.foodchamber.org).

Imports of food products are dominated by major food retailers such as SM Investments Corporation and Rustan Supercentres Inc, which
operates SM Supermarkets and Rustans Supermarkets respectively. There are also other foods trading companies that import and
export food products into and out of the Philippines. Food distributors also import and distribute food products to retail outlets within the
country. While companies have to pay a certain listing fee for shelf spaces in retail formats, there is no publicly available information on
the range of costs for listing fees in retail outlets within the country. Companies are advised to contact the respective retailers for more
information.

There are a few publicly recognised manufacturers of food processing machinery and equipment in the Philippines. A majority of the
manufacturers offer food service equipment used in restaurants and small food businesses. Some of these players are Merit Stainless
Inc. and HKR Equipment Corporation.
4.3.3 Sources of Imports to the Philippines

The top exporting countries of processed food to the Philippines include Malaysia and Thailand. Top importing countries for specific food
products also include the PRC (sugar and sugar preparations) and Singapore (beverages, spirits and vinegar), among others.
29
Center for International Trade Expositions and Missions ,

http://www.citem.gov.ph/main/news.htm?title=Major%20food%20brands%20play%20big%20brother%20to%20SME%20exporters&newsid=298
73
Figure 33: Top Exporting Countries of Processed Foods to the Philippines

HS Code
Top Five Countries
0210
Australia, Canada, the PRC, Spain, United States
0305
Processed fish
Norway, the PRC, Singapore, Taiwan, United

States
0401-0406
Dairy Produce
Australia, France, Ireland, New Zealand, United

States
0901-0903
Coffee, tea & mate
India, Indonesia, the PRC, Singapore, Vietnam
1601-1605
Indonesia, Malaysia, the PRC, Thailand, United

States
1701-1704
France, the PRC, Republic of Korea, Thailand,

United States
1801-1806
Indonesia, Malaysia, the PRC,

Singapore, United States
1901-1905
Indonesia, Malaysia, New

Zealand, Singapore, Thailand
2001-2009
Belgium, Canada, the PRC, Thailand, United

States
2101-2106
Malaysia, the PRC, Singapore, Thailand, United

States
2201-2209
Republic of Korea, Singapore, Thailand, United

States, Vietnam
4.3.4 Source: International Trade CentreComparison of Food Processing Products Imported from Switzerland vis--vis other Foreign Countries
According to Figure 33 above, Switzerland is not a major exporter of processed food products into the Philippines.
The figure below shows a breakdown of the value of processed food products exported by Switzerland. In the same figure, the value of
the respective products by the largest exporting country is also presented for comparison purposes. In 2011, Switzerland exported an
approximate amount of USD15.1 million worth of food products into the Philippines.
74
Figure 34: Comparison of Switzerland Export Value of Food Products to the Philippines (US Dollar Thousand)
HS Code
Largest
Food and Beverages
Value of Imports
Classification
from Switzerland
the Philippines
Value (by Largest

Exporting Country)
0210
PRC
0305
Processed fish
Singapore
0401-0406
Dairy Produce
814
New Zealand
391,196
Coffee, tea & mate
20
Vietnam
50,626
20
The PRC
3,069
United States
74,348
0901-0903
1601-1605
and seafood
1,293
104
1701-1704
117
1801-1806
1,408
Indonesia
39,519
1901-1905
59
Indonesia
87,422
188
United States
35,721
Thailand
182,810
Singapore
43,558
2001-2009
fruits and nuts
2101-2106
2201-2209
12,104
preparations
326
Total
15,059
The figure above shows that Switzerlands largest export of processed food products to the Philippines fell, under the miscellaneous
edible preparations category. This was followed by cocoa products and dairy produce.
4.3.5 Sources of Food Processing Machinery and Equipment Imports to the Philippines
In terms of food processing machinery and equipment, the top countries exporting to the Philippines include Italy, the PRC, Switzerland
and the United States. The figure below shows the top five importing countries for each product category. Note that the list below is not
exhaustive.
Figure 35: Top Exporting Countries of Food Processing Machinery & Equipment to the Philippines
HS Code
841981
842220
842230
75
Top Five Countries
Germany, Italy, the PRC, Switzerland, United
States

bottles & the like
Argentina, Germany, Italy, the PRC, Taiwan

HS Code
Top Five Countries

842240
machines
843420
Dairy machinery
843490
Germany, Italy, Japan, the PRC, Spain

Italy, Singapore, Slovenia, Sweden, Thailand
Denmark, Singapore, Sweden, Thailand, United
States

843510
wine cider fruit
France, India, the PRC, Switzerland, United States

843590

Australia, France, Japan, the PRC, Switzerland
beverages
843810
Bakery machines
Australia, Japan, the PRC, Switzerland, United

States
Germany, Indonesia, Netherlands, United Kingdom,
843820
843830
India, the PRC, South Africa, Turkey, United States
843840
Brewery machines
Australia, Belgium, Germany, Malaysia, the PRC
843850
843860
843880

poultry
United States
Denmark, Germany, the PRC, Spain, United States
Germany, Italy, the PRC, Thailand, United States
Denmark, Germany, Portugal, the PRC, United
Kingdom

843890
Germany, India, Italy, the PRC, United States

844110
844120
Czech Republic, Germany, Japan, the PRC, Tai-
cutting machines
wan
Hong Kong, Netherlands, the PRC, United States,
sacks or envelopes
Taiwan

844130
Canada, Hong Kong, Japan, the PRC, Taiwan
molding machines
844140
Germany, Japan, the PRC, Republic of Korea,
Taiwan
76
According to Figure 35 above, Switzerland is one of the top five exporting countries for the following food processing machinery and
equipment to the Philippines:
Machinery for cooking ranges for making hot drinks, or cooking or heating food.
Presses crushers etc electrically operated for making wine cider fruit.
Parts of presses crushers etc electrically-operated for making wine cider fruit juices & similar beverages.
Bakery machines.
The figure below shows a breakdown of the value of food processing machinery and equipment exported by Switzerland. In the same
figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported approximately
USD16.1 million worth of food processing machinery and equipment into the Philippines.
Figure 36: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to the
Philippines (US Dollar Thousand)
HS Code
841981
Value of Imports
Largest Exporting Coun-
Value (by Largest Ex-
fication
from Switzerland
try to the Philippines
porting Country)
534
United States
5,547

842220
Germany
674
bottles & the like

842230
548
PRC
5,735
1,246
Italy
9,770

842240

machines
843420
Dairy machinery
Sweden
1,176
843490
61
Denmark
1,016
843510
343
Switzerland
160
Switzerland

fruit
843590

77
HS Code
Value of Imports
Largest Exporting Coun-
Value (by Largest Ex-
fication
from Switzerland
try to the Philippines
porting Country)

beverages
843810
Bakery machines
843820
11,847
Switzerland
Germany
319
ery
843830
India
353
843840
Brewery machines
Germany
299
843850
25
Germany
1,104
PRC
56
Denmark
1,249
United States
3,663
poultry
843860
181

843880

843890
1,256
844110
56
PRC
878
PRC
505
Taiwan
950
PRC
450
cutting machines
844120

sacks or envelopes
844130

molding machines
844140

Total
16,132
As reflected in the figure above, Switzerland is the top exporter of bakery machinery, presses crushers, and parts of presses crushers into
the Philippines.
78
4.3.7 Major Players in the industry

Some of the major players in the processed food and food processing machinery and equipment sectors are presented below. Note that
the list is not exhaustive.

In this section, we profile some of the major food manufacturers in the Philippines.
San Miguel Pure Foods Company Inc
Address
: JMT Corporate Condominium, ADB Avenue, Ortigas Center, Pasig City
Tel
: (63) 2 7025000
Fax
: (63) 2 6352229
Website
: www.sanmiguelpurefoods.com
San Miguel Pure Foods Company Inc is one of the largest and leading food manufacturers in the Philippines. The Philippines-based
company engages in the processing of meat products, such as beef, chicken, and lamb. It offers consumers ready-to-cook meat products,
frozen meat, as well as fresh meat products. Through its subsidiary companies, San Miguel Pure Foods Company Inc has also diversified
into food products such as dairy foods, coffee products, and ready-to-eat foods. The company carries major well-known brands, including
Magnolia, Purefoods, and Monterey.
On March 2012, its subsidiary, Purefoods-Hormel Co. Inc. is one of the companies that were granted licenses to import frozen pork to the
country30.
RFM Corporation
Address
: Rfm Corporate Center, Pioneer Street, Mandaluyong City, 1550 Metro Manila
Tel
: (63) 2 6318101
Fax
: (63) 2 6318128
Email
: consumerservices@rfm.com.ph
Website
: www.rfmfoods.com
RFM Corporation is one of the leading food and beverage companies in the Philippines. The company manufactures a wide range of
products including processed meat products, dairy products, and beverages. RFM Corporation also cooperates with global companies
such as Unilever Philippines Inc and the Sunkist Growers of USA, Inc. The company carries well-known brand such as Swift, Sunkist, and
Selecta.
30
http://www.bworldonline.com/content.php?section=Economy&title=Poultry-import-quota-filled-up;-pork-still-to-be-completed-&id=47674
79
CDO Foodsphere Inc
Address
: #560 West Service Road, Paso de Blas, Valenzuela City
Tel
: (63) 2 2941111
Fax
: (63) 2 2925303
Email
: hrd@cdo.com.ph
Website
: www.cdo.com.ph
CDO Foodsphere Inc is one of the major food manufacturers in the Philippines. The company produces food products such as patties,
canned fish, processed cheese, and condiments. The companys brands also include CDO Karne Norte, CDO Bibbo! Hotdog, and CDO
Holiday Ham.
On March 2012, CDO Foodsphere Inc. is one of the companies that were granted licenses to import frozen pork to the country31.
Mekeni Food Corporation
Address
: Balubad, Porac, Pampanga 2008
Tel
: (63) 45 4580000
Email
: info@mekeni.com
Website
: www.mekeni.com
Mekeni Food Corporation is a leading manufacturer of meat products in the Philippines. The companys products include hotdogs, ham,
tapas, and langoniza. Mekeni Food Corporations facilities are also accredited by the National Meat Inspection Service in the country.
On March 2012, Mekeni Food Corporation is one of the companies that were granted licenses to import frozen pork to the country 32.
Universal Robina Corporation
Address
: 110 E. Rodriguez Avenue, Bagumbayan, Quezon City 1110
Tel
: (63) 2 6712935
Fax
: (63) 2 6345317
Website
: www2.urc.com.ph
Universal Robina Corporation is a leading convenience food and beverages manufacturer in the Philippines. The company produces a
wide range of products, including snack foods, instant noodles, and non-carbonated beverages. Familiar brands from the company, such
as Jack n Jill, Nissin, and C2, are well-known in the country. The company also exports to countries such as Singapore, Hong Kong, and
Thailand.
31
32
80
Century Pacific Group
Address
: 7F, 8F, & 19F Centerpoint Building Julia Vargas corner Garnet Street, Ortigas Business Center, Pasig City Metro
Manila, Philippines 1605
Tel
: (63) 2 6338555
Fax
: (63) 2 6338555
Website
: www.centurypacific.com.ph
Century Pacific Group is one of the largest food manufacturers in the Philippines. Century Pacific Group also owns several subsidiary
companies that are involved in food manufacturing operations. These subsidiary companies include Century Canning Cooperation, which
processes tuna products; Pacific Meat Company Inc, which processes meat products; and Snow Mountain Dairy Cooperation, which
processes dairy products. Brand names under Century Pacific Group include 555, Fresca, and HomePride. Products under Century Pacific Group can be also found in the United States and Asia.

The major importers and distributors of processed food products in the Philippines are the large supermarkets chains. Some profiles of
the industry players are presented as below.
Puregold Price Club Inc.
Address
: GF Tabacalera Bldg., 900 Romualdez Street, Ermita, Manila, Philippines
Tel
: (63) 2 524 4451 or 523 3055
Fax
: Not available
Website
: http://puregold.com.ph
Puregold Price Club, Inc is one of the leading hypermarket retail chain in the Philippines. Considered as second-biggest supermarket
chain in the country33, the company has recently listed in the Philippine Stock Exchange in October 2011 34. Puregold Price Club Inc is
one of the companies licensed to import frozen pork in the Philippines 35.
Robinsons Supermarket Corporation
Address
: Robinson's Galleria, EDSA cnr Ortigas Ave, Quezon City, 1100
Tel
: (63) 2 6350751
Fax
: (63) 2 3950112
Website
: www.robinsons-supermarket.com.ph
33
http://businessmirror.com.ph/home/companies/26299-puregold-says-sar-purchase-to-boost-earnings-this-year
http://business.inquirer.net/51443/puregold-buying-sr-for-p16-5b
35
34
81
Robinsons Supermarket Corporation is one of the largest supermarket chains in the Philippines and is owned by the Robinsons Retail
Group that operates the Robinsons Department Stores. Robinsons Supermarket in the country aims to educate and offer consumers
healthy living and food products. Robinsons Supermarket currently has more than 40 outlets across the Philippines.
Rustan Supercenters Inc
Address
: 4/F-6/F Morning Star Center Sen, Gil Puyat Avenue, Makati
Tel
: (63) 2 8991055
Fax
: (63) 2 8963326
Website
: www.rustansupercenters.com
Another leading supermarket in the Philippines is Rustans Supermarket, which is operated by Rustan Supercenters Inc. Rustan Supercenters Inc also adopts a multi-retail format, with Rustans Expresslanes and Shopwise Hypermarkets catering to different segments of
the population. The company currently operates more than 30 retail outlets in the Philippines.
SM Investments Corporation
Address
: ONE E-Com Center, 10th Floor, Harbor Drive, Mall of Asia Complex,, Pasay City 1300,
Tel
: (63) 2 8311000
Fax
: (63) 2 8338991
Email
: ir@sminvestments.com
Website
: http://www.sminvestments.com
SM Investments Corporation owns and operates one of the largest food retailers, SM Supermarket, in the Philippines. The retail arm of
SM Investments Corporation also includes multi-retail formats such as SaveMore branches, SM Hypermarket and Makro, offering consumers different food selections and products, targeted at different segments of the population. For instance, SaveMore supermarkets
branches are located within neighborhoods and offers lower priced products. SM Investments Corporation currently has more than 100
food retail outlets across the country.

There are a limited number of food processing machinery and equipment distributors and suppliers in the Philippines. Profiles of some of
these industry players are listed below.
Merit Stainless Inc.
Address
: S. Dela Cuesta Street, Muzon, Taytay, Rizal, Philippines (Warehouse and Plant)
Tel
: (63) 2 651 1472
Fax
: (63) 2 651 1828
Website
: www.meritstainless.com; http://foodserviceequipments.webs.com/aboutus.htm
82
Merit Stainless Steel Inc. is a retailer for food service equipment in the Philippines. Established in Guadalupe, Makati in 1983, the company caters to the needs of restaurants, hotels and buildings. The companys foodservice division designed and manufactured equipments based on the needs of the growing food service industry in the country.
HKR Equipment Corporation
Address
: HKR Building, 9705 Kamagong Street, San Antonio Village, Makati City, Philippines
Tel
: (63) 2 897 1569
Fax
: (63) 2 897 4912
Website
: www.hkr.com.ph
HKR Equipment Corporation is a distributor of international equipment brands for foodservice, supermarkets and industrial food facilities
in the Philippines. Established in 1 July 1993, the company supplies to the food service businesses, including quick service, restaurants,
hotels, resorts, schools, hospitals, commissaries, food and beverage manufacturing companies, supermarkets and small to medium scale
businesses.
Hillsdale Marketing Inc.
Address
: No. 3 2nd Street, Barangay Kapitolyo, Pasig City, Philippines 1603
Tel
: (63) 2 631 3944
Fax
: (63) 2 634 7386
Website
: www.hdmi-ph.com
Hillsdale Marketing Inc. is a subsidiary of M3 Ventures Inc., an equipment supplier in the Philippines. Hillsdale Marketing Inc. was the
food and supermarket division of MC Ventures Inc., until it was spun-off in 2001. The company specialises in food processing equipment,
food service equipment, packaging, bakery, hotel and restaurant equipment, slaughter equipment, amongst others.
JC Domingo Enterprises Corporation
Address
: #15 Scout Bayoran St., South Triangle, Quezon City, Philippines
Tel
: (63) 2 374 7754 to 58
Fax
: (63) 2 372 4286
Website
: www.hdmi-ph.com
JC Domingo Enterprises Corporation was incorporated on January 1958. The company supplies food processing and food packaging
equipment. These are sourced from the United States, Europe, Southeast Asia and Australia.
83

4.4.1 Opportunities in Overall Market in the Philippines
As an emerging country, the Philippines relies on a large amount of food imports, which presents opportunities for Swiss companies. With
one of the largest populations in the ASEAN region, the countrys demand for food imports will also continue to see an increasing trend. In
addition, the governments priority on the processed food industry will be an encouragement for companies looking to enter the market.
Other reasons for the potential of the Philippines processed food and food processing machinery and equipment sectors are as follows:
1.
The Philippines Investment Priorities Plan 2011 The country offers plenty of investment opportunities to foreign companies.
Under the Philippines Investment Priorities Plan, the countrys agriculture commercial processing and production is listed as one
of the priority economic activities. More information can be found from the Board of Investments (www.boi.gov.ph).
2.
Net Importer of Processed Food Products Despite its agricultural production, the country is still a net importer for processed
food products such as dairy products and sugar confectionery. These gaps present opportunities for Swiss companies looking to
enter the market.
3.
Fast Growing Food Retail Sector The food retail sector in the Philippines is expanding and modernising rapidly. Modern retail
outlets offering large selections of products at lower prices are gaining popularity with the local population. The emergence of
these modern retail outlets permits foreign companies products to enter the country easily, and have a higher level of exposure
to the local consumers. The growth in the modernised food retail sector also presents opportunities, as these modern chains offer improved cold chain logistics and distribution systems.
4.
Emerging Halal Sector As the global Halal market offers plenty of opportunities for food manufacturers, the number of local
companies producing Halal products have been growing. Apart from targeting the local Muslim population, food manufacturers
are able to export to emerging markets such as Indonesia and the Middle East.
5.
Dedicated Organisations and Food Events The Philfoodex (www.philfoodex.org.ph) is dedicated to serve and support the
countrys food processing sector by providing services such as training, research and technical assistance. The organisation
comprises over 200 food manufacturers and exporters, and works closely with the government and sector to ensure the global
competiveness of the Philippines food processing sector.
6.
Population Growth and Tourism A healthy population growth in the country will drive the demand for food consumption and
food products. Aside from this, the tourism sector also plays a role in the food processing industry. The country has welcomed
3.52 million visitors from January to November 2011. This reflects a growth of approximately 12.7% on a year-on-year basis in
201036.
36
Department of Tourism, http://www.tourism.gov.ph/Pages/IndustryPerformance.aspx
84
7.
Better Perception of Foreign Products Although the country has a wide selection of local food products, the population tends to
have better perception of foreign brands and products. This factor is beneficial to Swiss companies looking to enter the countrys
food market.
8.
Evolving Consumer Tastes Trends in consumers preference for food products open up opportunities for foreign products into
the country. Changing taste trends will enable consumers to demand for unique characteristics and sophisticated flavors in food
products. Imported food products will, thus, stand a greater chance.
9.
Demand for Other Specific Foods The growing younger population, the increase in affluent consumers, and increasing health
awareness has led to the demand for organic and functional foods within the country. Busier lifestyles within the population has
driven the need for convenience and processed food products that are easy to prepare and consume.
10. Food Processing Machinery and Equipment Most of the industry players offer food service equipment such as kitchenware
and food processing machinery and equipment. The country imports most of its food processing machinery and equipment from
countries such as Germany and the PRC. Opportunities for Swiss companies to enter the market still exist, even though Switzerland is among the top exporters for certain machinery and equipment.
11. Events on Food Processing Machinery and Equipment Several events such as the Cebu Food Expo and AFEX Asia Food
Expo will be held in the second half of 2012. These events provide opportunities for Swiss companies to showcase food processing and packaging technologies and machineries.

In 2011, the country imported 17,363 tons of cheese products, worth approximately USD69.5 million. In the same year, Philippines exported only 1,037 tons of cheese products, worth an approximate value of USD3.2 million. Trade statistics below show that the country
remains a net importer of cheese products for the five year period from 2007 to 2011.
Figure 37: Trade Statistics (2007- 2011) for Cheese Products in the Philippines
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
33,099
12,306
1,854
630
2008
51,728
14,473
3,022
887
2009
43,930
15,773
3,730
1,278
2010
51,058
15,083
3,938
1,171
2011
69,458
17,363
3,153
1,037
85
The Philippines imports cheese products from major cheese producers such as New Zealand and Australia. Major players for cheese
products include Kraft Foods (Philippines) and San Miguel Pure Foods Co Inc. Major brands include Kraft and Magnolia. Demand for
cheese products is expected to rise in the country, with increasing numbers of higher income consumers and awareness of cheese products. Besides, cheese products are very common, as part of the populations diet is found mostly in foods such as pizza, pasta, and
sandwiches. The snacking pastime of the population also remains an opportunity for cheese products. Companies may tap into the Philippines expanding dairy industry to develop cheese products for the local market 37. Companies may also explore the niche gourmet
cheese market targeted towards the higher income consumers in the Philippines, and introduce Swiss cheese products.

The Philippines is one of the coffee producer countries that produce four varieties of commercial coffee 38. Aside from freshly instant coffee
products that are popular with the mass population, roasted coffee is gaining popularity with the working population in the country. In
2011, the Philippines imported 54,682 tons of coffee products, worth approximately USD120.2 million. In the same year, the country exported only 461 tons of coffee products, worth an estimated USD1.7 million. Trade statistics reflect the country as a net importer of coffee
products.
Figure 38: Trade Statistics (2007- 2011) for Coffee Products in the Philippines
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
69,464
31,985
6,032
1,619
2008
91,072
38,275
1,901
1,431
2009
89,292
55,216
1,864
317
2010
117,860
77,954
1,525
637
2011
120,169
54,682
1,654
461
The Philippines imports most of its coffee products from Vietnam and Indonesia. Major players in the sector include Nestl Philippines
and Universal Robina Corp, with popular brands such as Nestl and Great Taste respectively. According to the Philippine Coffee Board,
coffee harvests in late 2011 have been unpredictable, resulting in the best time to invest in coffee growing in the country 39. In addition,
the Department of Agriculture-Philippine Center for Postharvest Development and Mechanization is looking to expand the coffee industry
by establishing over 21 coffee processing centres by 2016 40. Companies looking to enter the coffee industry can look into collaborating
with a local partner. Import of unique flavoured coffee products targeted at the growing income group is another opportunity.
37
Invest Philippines, http://www.investphilippines.gov.ph/downloads/sector/Dairy.pdf

Philippine Coffee Board, http://www.coffeeboard.com.ph/philcoffee.htm
39
Department of Agriculture, http://www.da.gov.ph/n_sub.php?pass=dailynews/2011/aug/August%2023,%202011.html
40
Official Gazette of the Republic of the Philippines, http://www.gov.ph/2011/03/29/da-philmech-throws-support-for-coffee-industry/
38
86
More information on the countrys coffee industry can be found at The Philippine Coffee Boards website (www.coffeeboard.com.ph), and
the Department of Agriculture (www.da.gov.ph).

Confectionery consumption in the Philippines has increased due to better economic conditions and rising disposable income among the
population. Filipinos have a sweet tooth and a wide variety of candy and chocolate products are popular among all income groups in the
country. In 2011, the Philippines imported 37,883 tons of confectionery products, worth approximately USD62.0 million. In the same year,
the country exported 24,003 tons of confectionery products, valued at USD60.0 million.
Figure 39: Trade Statistics (2007- 2011) for Confectionery Products in the Philippines
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
42,559
29,288
45,444
16,493
2008
52,817
31,604
48,040
18,267
2009
48,651
30,566
50,194
17,979
2010
57,002
36,104
54,625
21,943
2011
61,945
37,883
59,619
24,003
The Philippines imports most of their chocolate confectionery from the PRC and the United States. Major players and brands include Kraft
Foods (Philippines), Nestl Philippines as well as KitKat and Ferrero Rocher. With most of the companies catering to the mass population
in the country, Swiss companies may look at targeting the niche segment of the growing income group in city areas by offering gourmet
chocolate products.
In addition, the Philippines imports most of its candy products from Thailand and Vietnam. Major players in the country include Universal
Robina Corp and Perfetti Van Melle Philippines Inc. Popular brands also include Jack n Jill, Maxx, and Mentos. The growing health
awareness trend may bring about the demand for sugar-free products, which Swiss companies can provide. Besides, as the populations
tastes are inclined towards sweet foods, demand for confectionery is expected to increase over the next few years.

The Philippines is a major meat and poultry producing country. Meat products comprise a large portion of the populations everyday
meals. In 2011, the country imported 22,183 tons of processed meat products, with a value of USD6.0 million. In the same year, the country exported only 6,604 tons of processed meat products, with a value of USD16.7 million. The values reflect Philippines as a major consumer of processed meat products.
87
Figure 40: Trade Statistics (2007- 2011) for Processed Meat Products in the Philippines
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
4,292
13,120
8,248
3,623
2008
9,067
11,785
9,658
3,984
2009
16,382
19,667
10,261
4,234
2010
17,827
27,949
14,297
6,167
2011
5,931
22,183
16,713
6,604
The PRC is a main supplier to the Philippines for processed meat products. Major meat processing companies in the country inc lude
RFM Foods Corporation and CDO Foodsphere Inc. The demand for processed meat products is expected to increase due to population
growth and need for processed foods,
4.4.6 Opportunities for Machines for Filling, Closing, and etc Machines
In 2011, the Philippines imported 1,399 tons of machines for filling, closing, sealing, capsuling, labelling bottles, cans, boxes, bags, etc
beverages aerators, worth approximately USD31.5 million. In the same year, the country exported only 6 tons of these machinery and
equipment, with a value of USD0.2 million. The values reflect the Philippines as a major net importer of these machinery and equipment.
Figure 41: Trade Statistics (2007-2011) for Machines for Filling, Closing, and etc Machines in the Philippines
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
9,988
729
373
96
2008
17,477
1,169
3,323
94
2009
18,369
849
763
40
2010
31,482
1,815
188
2011
22,383
1,399
171
32
The larger exporters of such machinery and equipment into the Philippines include countries such as Germany, Italy, and the PRC. In
2011, Switzerlands exports of such machinery equipment comprised approximately 1.7% of the total imports into the country. The largest
exporter to the Philippines in 2011 is the PRC. Swiss companies are advised to focus on technology-based machinery and equipment that
are not in direct competition with the PRC, which offers economic models of these machinery and equipment.
88
4.4.7 Opportunities for Machines for Other Packing or Wrapping Machines

In 2011, the Philippines imported 1,968 tons of other packing or wrapping machines, worth an approximate USD27.5 million. In the same
year, the country exported 101 tons of these machinery and equipment, with a value of USD0.3 million.
Figure 42: Trade Statistics (2007- 2011) for Other Packing or Wrapping Machines in the Philippines
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
8,630
775
392
41
2008
12,569
1,159
385
56
2009
9,893
801
1,005
72
2010
14,930
1,300
435
17
2011
27,515
1,968
262
101
The values suggest that there is a large demand for such machinery and equipment within the Philippines. The larger exporters of these
machinery and equipment into the Philippines include countries such as Germany, Italy, and the PRC. With increasing imports each year,
Swiss companies can explore this area of opportunity within the food processing machinery and equipment sector.
4.4.8 Opportunities for Machines for Bakery Machines

In 2011, the Philippines imported 1,528 tons of bakery machines that were worth an approximately USD30.1 million. In the same year, the
country exported only 18 tons of bakery machines, with a value of USD0.06 million.
Figure 43: Trade Statistics (2007-2011) for Bakery Machines in the Philippines
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
6,551
594
23
2008
3,275
306
274
2009
3,585
401
89
2010
6,822
533
50
10
2011
30,118
1,528
61
18
89
The larger exporters of these machinery and equipment into the Philippines include Switzerland, Australia, and Japan. In 2011, Switzerland was the largest exporter of bakery machines into the Philippines. Switzerland exported 39,3% of the total export value o f bakery
machines into the country. The statistics revealed a large increase in the domestic demand for bakery machines from 2010 to 2011.
Demand for bakery machines is expected to grow, as local consumption patterns are shifting away from staples such as rice towards
bakery products. Swiss companies are, thus, well-positioned to increase presence in this sector.
4.4.9 Opportunities for Machines for Coffee Pulpers and Other Beverages Machinery
In 2011, the Philippines imported 308 tons of coffee pulpers and other machinery for preparation of beverages, which were worth approximately USD4.5 million. In the same year, the country exported only 24 tons of coffee pulpers and other machinery for preparation of
beverages, worth a value of USD0.2 million.
Figure 44: Trade Statistics (2007-2011) for Coffee Pulpers and Other Beverages Machinery in the Philippines
Import Value
Year
Export Value
Import Volume
(US Dollar
Thousand)
Export Volume
(US Dollar
(Tons)
(Tons)
Thousand)
2007
3,351
216
1,838
230
2008
2,158
299
1,169
226
2009
3,109
259
1,681
198
2010
5,352
335
472
34
2011
4,535
308
189
24
The larger exporters of these machinery and equipment into the Philippines include Denmark, the PRC, and Germany. In 2011, Switzerland only contributed 1.2% to the total import value of such machinery and equipment, while the largest importer for the Philippines is
Denmark,

Entry into the Philippines can be made easier with knowledge of the countrys culture and business traditions. Swiss companies are encouraged to visit the Philippines and conduct market research on the food sector of interest. It is also important to establish good business relationships, which can be done through frequent visits. In addition, foreign investors should be familiarised with the types of business enterprises that are available and present in the country. More information can be found at the Appendix section of the report. Below are the recommended forms of market entry strategies into the Philippines.
90
4.5.1 Use of Agents/ Distributors

The use of an agent or distributor is the easiest mode of entry into the Philippines. Companies should ensure that the appointed importer
in the Philippines is accredited with the Bureau of Customs (www.customs.gov.ph). Appointment of a local agent or distributor can also
allow faster penetration into the market, as the local agent or distributor will often be well-versed with the demands and regulations of the
industry. As there are no current laws that impede the termination of an agents or distributors contract, it is advisable for foreign companies to formulate a detailed agreement.
4.5.2 Establishing a Local Presence

Swiss companies that would like to establish a representative office in the Philippines. A Representative Office is a foreign corporation
organised and existing under foreign laws and does not derive income from the host country (Philippines). It shall be fully subsidised by
its head office. It deals directly with clients of the parent company as it undertakes such activities as information dissemination, acts as a
communication centre and promote company products, as well as quality control of products for export. It is required to have a minimum
inward remittance in the amount of USD30,000, to cover its operating expenses and must be registered with the Philippines Securities
and Exchange Commission (SEC).41
The Philippines Business Registry (PBR) is a Government-initiated project that will facilitate business registration-related transactions by
integrating all agencies involved in business registration, such as the Department of Trade and Industry (DTI) and the SEC, amongst
others. The web-based system shall serve as a one-stop shop for entrepreneurs who need to transact with several agencies to be able
to start operating a business. For more information, please refer to: http://www.business.gov.ph

Companies wanting to export to the Philippines must register with the relevant agencies and this process can only be done by a Filipino
entity, thus advisable to form a joint venture. The main agencies are the Philippines Department of Agriculture and Bureau of Agriculture
and Fisheries (animal and horticultural products) and the Department of Health, Food and Drug Administration (processed foods). They
are tasked with regulating and enforcing food safety standards for imported foods in the country. Registration in the country typically takes
three months42.
4.5.4 Franchising/ Licensing

These two forms of entry strategies offer low risks to foreign investors, as almost no physical presence is required in the country. Foreign
companies may opt to issue a franchise permit to the local enterprises, to allow the use of a trade name, trademark, or concept of the
franchise. Foreign companies may also choose to license a local food processing company to manufacturer the foreign firms food products. Careful selection of a franchisee and licensee is important, as the foreign firms reputation is at stake.
41
42
http://boi.gov.ph/pdf/primer.pdf
http://www.dpi.vic.gov.au/agriculture/investment-trade/market-access-and competitiveness/markets/philippines/analysis-of-the-food-sector-in-philippines
91
4.5.5 Distribution Channels

With increasing numbers of modernised retail outlets in the urban areas of Philippines, foreign companies have more choices on choosing
the suitable distribution channels for their products. In addition, successful entry to the Philippines market is achievable through fostering
good business relationships with the major retailers, and leveraging on their distribution channels to reach out to the mass consumers.

The regulatory authorities for the food processing industry in Philippines include the Food and Drug Administration (www.fda.gov.ph) and
the Department of Agriculture (www.bafps.da.gov.ph). Requirements pertaining to the food industry will be discussed in this section.
4.6.1 Import Requirements in the Philippines

There are several requirements for companies to import food products into the Philippines. Companies are required to obtain a License to
Operate and a Certificate of Product Registration from the Food and Drug Administration in order to import food products. In addition, a
phyto-sanitary/ Health Certificate must also be obtained from the regulatory body in the country of origin.
Imported foods into the country are divided into two separate categories, and specific requirements depend on the category of the food
product. For more information, companies are advised to visit http://www.fda.gov.ph/BC/bo%20163%20s%201997.pdf. There is no publicly available information that discusses about the import quota in the Philippines.
4.6.2 Import Requirements for Meat and Fish Products

Several government agencies under the Department of Agriculture are responsible for the imports of fisheries and meat products. The
National Meat Inspection Service (www.nmis.gov.ph) is responsible for implementing and regulating meat and poultry imports into the
country. The Bureau of Fisheries and Aquatic Resources (www.bfar.da.gov.ph), on the other hand, is responsible for the import requirements of fisheries and aquatic products. Certain requirements are necessary for these products and companies are advised to contact
the relevant authorities for more clarification, if required.
4.6.3 Import of Specific Food Products

The Philippines is a signatory to the World Trade Organization and has lifted quantitative restrictions (QRs) on imports of food products
except for rice. Minimum Access Volumes (MAV) or trade quotas are also established for certain commodities such as frozen pork,
92
frozen poultry, corn and coffee43. The Bureau of Import Services (BIS) under the Bureau of Customs facilitates imports, administers
import regulation on selected items, and monitors the importation of liberalised and sensitive items.
Meanwhile, importers may also need to refer to the Food and Drug Administrations website: http://www.fda.gov.ph/laws_food.html, which
highlights the laws and regulations on food imports as well as specific regulations on processed food imports to the Philippines.

The following are the general guidelines to the labelling of imported food products into the Philippines:
Name of food.
List of ingredients used, including additives, flavourings and preservatives.
Net contents and drained weight.
Name and address of manufacturer/packer/distributor.
Name and address of Philippine importer/distributor.
Country of origin.
Lot identification.
Further specific information on labelling can be obtained from the Food and Drug Administration (www.fda.gov.ph).
4.6.5 Other Information

In addition, regulations pertaining to other information such as nutritional and health claims, food additives, and food fortification can be
obtained from the Food and Drug Administration website (www.fda.gov.ph).

The import of food processing machinery and equipment into the Philippines are subjected to several conditions such as the sufficiency of
such machinery and equipment manufactured domestically. Companies looking to export food processing machinery and equipment into
the
country
are
advised
to
read
the
following
http://www.boi.gov.ph/pdf/laws/eo/IRR_EO313.pdf.
document
published
by
the
Board
of
Investment,
located
at
Companies are also advised to consult the Department of Trade and Industry
(www.dti.gov.ph) for further information.
43
http://www.da.gov.ph/n_sub.php?pass=MAV/mav.html; http://www.tariffcommission.gov.ph/ra8800.html
93
5. Singapore
Equipment Sector in Singapore
5.1.1 Brief Overview of Singapores Economy and Key Statistics
Figure 45: Singapores Economy and Statistics
Population
Capital
Singapore
Area
712.4 sq km (as at 2010)

GDP

USD44,790 (as at 2010)
GDP per capita
USD50, 123 (as at 2011)

14.7% (2010)
4.9% (2011)
GDP growth rate
1.0% - 3.0% (2012 est.)
Sources
SGD1 = USD1.3007
https://secure.mas.gov.sg/msb/ExchangeRates.aspx
SGD1= CHF 0.7910
USD1 = CHF0.9316
Source: Department of Statistics Singapore
Singapore is the smallest nation in the ASEAN region, in terms of land area and population. Despite its compact size, Singapore saw its
population grow from 5.0 million in 2009 to 5.2 million in 2011, resulting in a high population density of 7,126 per square kilometre. In the
multi-ethnic country, the Chinese formed approximately 74.1% of the population in 2010. This was followed by the Malays at 13.4%, and
Indians at 9.2%. Other ethnicities made up approximately 3.3% of Singapores population in 2010. With an increasing population, the
demand for processed food products in the country is expected to continue its upward trend.
In 2011, Singapore recorded GDP of USD259.8 billion. According to the Department of Statistics Singapore, the countrys GDP for 2011
was a 4.9% increase as compared to 2010. Singapore also posted a per capita GDP of USD50,123 for the whole of 2011. Due to ongoing uncertain economic conditions, the Ministry of Trade and Industry forecasts the countrys economy growth for 2012 to be approximately 1.0% to 3.0%.
Singapore is an export-dependent country, particularly in industries such as electronics, information technology, pharmaceuticals, and the
financial services sector. The processed food sector is a small industry within the country. In 2009, the sector contributed only 0.7% to94
wards Singapores economy44. As the country depends largely on food imports, Singapore presents abundant opportunities for companies wishing to export processed food products to the country. Further information on Singapores statistics can be found on the official
website of the Department of Statistics Singapore, located at http://www.singstat.gov.sg.
Sectors in Singapore
Singapore is heavily dependent on imports for food products, due to the countrys limited natural resources, livestock, and agricultural
production. Hence, the processed food sector in Singapore is small, relative to other ASEAN countries.
Food Manufacturers
Food manufacturers in Singapore carry out mostly small-scale food production operations. This is partly due to land scarcity in the country, which impedes food processors wishing to expand their operations domestically. Despite so, the country remains a preferred location
for global companies that set up their regional headquarters here while carrying out their production operations in neighbour ing countries.
Companies such as Yeo Hiap Seng (Singapore) Pte Ltd and Super Group Ltd have food processing facilities located in countries such as
the PRC and Malaysia. In addition, most of the global companies carry out their procurement activities in their regional head quarters
here. A large portion of the countrys food manufacturing operations are focused on products such as beverages, snack foods, and meat
products.
As Singapore engages in very minimal agricultural production, raw materials for food processing are largely imported. The limited local
food manufacturing operations is also insufficient to meet the demands of the large population within the country; hence, Singapore imports large amounts of processed food products. Singapores great emphasis on food safety and food hygiene conditions has enabled the
country to be one of the preferred importers for processed food products.

Due to the nature of the processed food sector, the country also has limited numbers of manufacturers for food processing mac hinery
and equipment. Most of the local food processing companies purchase machinery and equipment from nearby countries such as Malaysia and the PRC, where production and material costs are much lower, thus, saving on machinery and equipment expenses. While some
local companies do manufacture and provide OEM services for food packaging materials, food packaging materials are mostly obtained
from neighbouring countries. Apart from these, there are local companies that focus on the quality and technologies for food processing.
These companies import machinery and equipment from countries such as Europe and the United States. With the need to constantly
upgrade the quality of local processed food products, opportunities for food processing machinery and equipment continue to exist.
44
95
Standards, Productivity And Innovation Board, http://www.spring.gov.sg/enterpriseindustry/fm/pages/industry-background-statistics.aspx

Food importers in Singapore play an important role in the distribution of food products to the local population. There are a considerable
number of food importers in Singapore. Most of these establishments import food products from nearby countries and distribute them to
local minimarts, supermarkets, and shops. Some of the food importers hold exclusive distributorships for certain food products from other
countries. Most of the food importers, such as Dairy Farm International Holdings Limited (Dairy Farm Group) and NTUC Fairprice Cooperative Ltd (NTUC Fairprice), are also major food retailers in the country. They import food products in bulk, and have introduced their
competitively priced house brands for certain food products. Food retailers such as 7-eleven have also commissioned l food manufacturers to produce some of their in-house brands, for example, sandwiches and ready-to-eat meals.

In 2011, Singapore imported approximately USD6.3 billion worth of processed food products. In the same year, the country exported an
approximate amount of USD6.0billion of processed food products.
HS Code
0210
13,539
416
0305
Processed fish
52,521
21,933
0401-0406
Dairy Produce
991,152
315,139
0901-0903
Coffee, tea & mate
96,379
70,780
1601-1605
462,407
84,318
1701-1704
431,575
240,092
1801-1806
584,491
752,670
1901-1905
417,680
1,208,389
2001-2009
287,782
180,636
2101-2106
2201-2209

Total
Imports
Exports
299,225
819,301
2,396,436
2,362,500
6,333,187
6,056,174
In terms of volume, Singapore imported and exported 1.9 million tons and 2.5 million tons of processed food products respectively.
HS Code
Imports
Exports
0210
1,877
67
0305
Processed fish
4,182
704
0401-0406
Dairy Produce
307,933
93,738
96
HS Code
0901-0903
Coffee, tea & mate
17,257
12,453
1601-1605
90,060
16,662
1701-1704
465,558
162,590
1801-1806
1901-1905
141,607
350,943
2001-2009
137,946
1,492,402
2101-2106
192.160
88,831
2201-2209
424,113
127,488
1,920,679
2,531,773
Total
Imports
Exports
137,986
182,895

1.
Government Assistance in the Sector The food manufacturing industry in Singapore is set to grow as the Standards, Productivity and Innovation Board (SPRING Singapore) plans to invest SGD45 million to boost the productivity of the sector for the
next five years, beginning 2011. This Food Manufacturing Plan initiated by SPRING Singapore aims to overcome the challenges
faced by local food manufacturers; including lack of economies of scale, low levels of innovation, lack of skilled manpower, as
well as the slow adoption of automation and productivity improvement tools.45.
2.
Demand for Ready-to-eat Meals and Processed Food Products Singaporeans lead fast-paced lifestyles. Therefore, ready-toeat meals are becoming more popular and are expected to grow substantially as more people increasingly dine outside of their
homes. As more consumers are turning to packaged goods, new expectations are also driving the convenience trend into new
areas, such as freshness and nutrition.. Hence, processed food items, such as frozen food products, remain a preferred choice.
3.
Demand for Healthy and Nutritional Food Aside from the demand of hassle-free meals, Singaporeans are moving towards the
notion of healthy living, with the government constantly encouraging healthy lifestyles and a balanced diet. More emphasis has
been placed on nutritional foods and this has driven the population to be more conscious of the food products that they consume. Healthy and nutritional food, such as yoghurt and products free of preservatives, are becoming increasingly popular.
4.
Consumers are Receptive to New Food Products As Singaporeans are influenced by the Western culture, they are generally
more adventurous in trying out new kinds of food products. Besides, the diversity of the local population has exposed Singaporeans to different types of palates.. The influx of expatriates has also influenced the Singaporean food culture. Hence, consumers in Singapore have high acceptance levels, making it easier for foreign brands and products to enter the country.
5.
Manpower Issues The sector faces manpower issues as Singaporeans are unwilling to work in food processing establishments, which involves long hours of work and less competitive pay conditions as compared to other industries. Food manufac-
45
Standards, Productivity and Innovation Board, http://www.spring.gov.sg/NewsEvents/PR/Pages/SPRING-Invests-45Million-in-Food-ManufacturingIndustry-to-Improve-Productivity-by-20percent-20111117.aspx
97
turers within the country are constantly innovating food products in order to attract consumers. Tight competition within the industry has also made it necessary for manufacturers to compete in factors such as food pricing. Consumers preferences for
cheaper food sources also encourage an increase in the amount of food imported from neighbouring countries.
6.
High Manufacturing and Labour Costs In Singapore, manufacturing and labour costs are higher compared to Malaysia, Thailand and the Peoples Republic of China (PRC). Hence, local food processing companies may be looking at alternatives to relocate their facilities to neighbouring countries. This might restrict the growth of the local processed food sector.
7.
Increasing Food Costs Many countries throughout the region are facing the issue of increasing food costs. Prices of raw materials have been increasing and this denotes higher cost prices in all segments of the food value chain. Food manufacturers may
find their operating expenses increasing, and consumers may switch to cheaper alternatives.
8.
Food and Hotel Asia - The biennial event, Food and Hotel Asia, was held in Singapore during April 2012. This event featured
2,800 exhibitors, and most of the products on display are designed to help industry players raise productivity and cut their dependence on manpower. This event also provided local companies with information on the latest products, equipment, and
technologies used in the food industry.46 The next Food and Hotel Asia event in Singapore will be held from 8 to 11 April, 2014.
This growing emphasis of food processing machinery and equipment can be expected to continue due to the growing importance of the technologies within the sector.
9.
Demand for Halal Food Products With a significant Muslim population and the growing affluence of the Muslim community
within the ASEAN region, Halal food products have also been gaining in popularity within the country. It is expected that the
number of Halal certified premises in Singapore will rise to 5,000 by 2015 47. The increasing number of Middle Easterners visiting
the country is also another factor leading to the growing Halal sector within Singapore.

There are currently more than 1,000 industry players in the local processed food sector. This includes industry players in the food manufacturing sector. There are also more than 100 food importers within the industry, which are dominated by bigger players such as the
Dairy Farm Group and NTUC Fairprice. This adds up to more than 23,000 food retail outlets in Singapore, which includes supermarkets,
minimarts, convenience stores, provision shops and wet markets. There are also suppliers of food processing machinery and equipment
that either distributes or manufactures these machinery and equipment within the country. Statistics on the size of such machinery and
equipment providers are not available.
46
Standards, Productivity and Innovation Board, http://www.spring.gov.sg/NewsEvents/ITN/Pages/Food-and-hotel-show-at-record-size-20120418.aspx

International Enterprise Singapore, http://www.iesingapore.gov.sg/wps/wcm/connect/ac00040048a2901e92a6d3985e585aa6/20111008-STHT-HomeB07-33x11.pdf?MOD=AJPERES
47
98

The segmentation of the processed food and food processing machinery and equipment sectors are divided into tthe following:
Food Manufacturers
Manufacturers of food and beverage products in the local food processed industry are divided into 17 sub-sectors, which include noodles,
beverages, processed meat, sauces, rice & noodles, and others. Most of the food manufacturers in Singapore operate on a small-scale
basis in factories located within industrial areas. There are also bigger players that are involved in the manufacturing of various brands,
and exporting of food products. The larger players in the industry are usually multi-national companies such as Cadbury and Nestl. In
addition, there are some companies that provide food preparation services, such as processing of meat and vegetables, to local restaurants and cafs.
Most of the food manufacturers in Singapore are members of the Singapore Food Manufacturers Association. For members listings,
please refer to the official website: http://www.sfma.org.sg. To view the Singapore Food Manufacturing Industrys directory, please refer to
SPRING
Singapores
website
at
http://www.spring.gov.sg/EnterpriseIndustry/FM/Documents/Directory_of_food_manufacturing_Industries.pdf

Food importers comprise another large bulk of the local processed food sector, as Singapore depends largely on imported food products.
Large industry players, which are also food retailers, include well-known names such as NTUC Fairprice and the Dairy Farm Group.
There are also smaller establishments within the country that import food products directly from neighbouring countries such as Malaysia
and Thailand. Companies looking to list their products in supermarkets shelf spaces are subjected to listing prices. There is no information available on the estimated costs through the public domain. Companies are advised to contact the respective retailers for more
information.
In addition to importing food products, distributors also distribute these food products to retailers locally. They are often also responsible
for the logistics involved in importing and distributing the food products, which some retailers may not have capabilities in.
The recall of food products in the country is regulated by the Health Sciences Authority (HSA") and can be initiated by food manufacturers, distributors, end-users, as well as HSA themselves. In the event of a recall, the sales of defective products must cease immediately.
All defective products must be quarantined, and appropriate communication must be made to all affected wholesalers, distributors, and
retailers.48 More guidelines on the recall of food products can be found on the official website of HSA, located at www.hsa.gov.sg.

There are numerous local companies that engage in the manufacturing, distribution, and supply of processed food machinery and equipment. Larger manufacturing players include Tetra Pak Asia Pte Ltd and Yutaka Pte Ltd. There are also companies that distribute food
48
Health Sciences Authority, http://www.hsa.gov.sg/publish/hsaportal/en/health_products_regulation/safety_information/report_product_defects.html
99
processing machinery and equipment, which include Prima Modern Machinery Pte Ltd and Tantraco Enterprise Pte Ltd. Some suppliers
of processed food machinery and equipment also engage in the modification of machinery to suit clients requirements. Fabristeel Pte Ltd
is an example of a company that provides equipment specifications, in-house fabrications and installation.
In addition, the Food Innovation and Resource Centre (FIRC) allows companies to rent food processing machinery and equipment for
trials before these companies invest in the machinery and equipment. FIRC is a joint initiative between SPRING Singapore and Singapore Polytechnic. For further information on FIRC, please visit www.firc.com.sg.
Some of the manufacturers and suppliers of food machinery and equipment in Singapore are members with the Singapore Association of
Food Equipment Manufacturers and Suppliers (SAFEMS). For further information on this association, please refer to the official website
of SAFEMS, located at www.foodequipment.org.sg.
5.3.3 Sources of Processed Food Imports to Singapore

Given its proximity to neighbouring food producing countries, the top exporting countries of processed foods to Singapore include other
countries such as Malaysia, Thailand, and Indonesia. Top exporting countries of Singapore for specific food products also include Australia (sugar and sugar confectionary), the United States (processed cereal products) and the United Kingdom (beverages, spirits, and
vinegar). The figure below shows the top five importing countries for each product category. Note that the list below is not exhaustive.
Figure 48: Top Exporting Countries of Processed Foods to Singapore

HS Code
0210
0305
Processed fish
0401-0406
Dairy Produce
0901-0903
Coffee, tea & mate
1601-1605
1701-1704
1801-1806
1901-1905
2001-2009
Top Five Countries

Canada, Denmark, Italy,
Netherlands, United States
Hong Kong, Indonesia, Japan, Malaysia
Taiwan
Australia, Indonesia, Malaysia, New Zealand,
Thailand
Indonesia, Japan, PRC,
Switzerland, United States
Australia, Malaysia, PRC,
Thailand, Vietnam
Australia, Malaysia, PRC,
Thailand, United Kingdom
Ghana, Indonesia, Malaysia, Nigeria, Papua New
Guinea
Japan, Malaysia, PRC, Thailand,
United States
Indonesia, Malaysia, PRC,
Thailand, United States
100
HS Code
Top Five Countries
2101-2106
Indonesia, Japan, Malaysia, PRC, United States
2201-2209
Australia, France, Malaysia,

United Kingdom, United States
5.3.4 Comparison of Processed Food Products Imported from Switzerland vis--vis other
Foreign Countries
According to Figure 48 above, Switzerland is among the top five exporting countries of coffee, tea & mate products to Singapore.
The figure below shows a breakdown of the value of processed food products exported by Switzerland. In the same figure, the value of
respective products by the largest exporting country is also presented. In 2011, Switzerland exported an approximate amount of
USD54.8million worth of processed food products into Singapore.
Figure 49: Comparison of Switzerland Export Value of Food Products to Singapore (US Dollar Thousand)
HS Code
Food and Beverages
Value of Imports
Classification
from Switzerland
Largest
Singapore
Value (by Largest

Exporting Country)
0210
15
United States
13,539
0305
Processed fish
13
Hong Kong
9,450
0401-0406
Dairy Produce
5,690
New Zealand
304,242
0901-0903
Coffee, tea & mate
8,455
United States
20,203
49
Thailand
98,753
2,174
Australia
112,010
18,507
Indonesia
122,590
6,305
Malaysia
156,362
1,174
PRC
57,510
5,915
Malaysia
156,851
6,485
France
54,782
1601-1605
1701-1704
1801-1806
1901-1905
2001-2009
2101-2106
2201-2209

and seafood
Cocoa & cocoa
preparations
products
fruits and nuts
preparations
vinegar
Total
1,021,952
-
101
The figure above shows that Switzerlands exports of processed food products into Singapore is significantly lower than the largest exporting country of the respective food products.
Products such as processed meat, fish and seafood for Singapore are mostly obtained from nearby countries, as these products require
cold chain logistics. The proximity of the top importing countries for Singapore also allow for lower logistics and transportation costs.
5.3.5 Sources of Food Processing Machinery and Equipment Imports to Singapore

In terms of food processing machinery and equipment, the top countries exporting to Singapore include France, Germany, Japan, Netherlands and the United States. The figure below shows the top five importing countries for each product category. Note that the list below is
not exhaustive.
Figure 50: Top Exporting Countries of Food Processing Machinery & Equipment to Singapore
HS Code
841981
842220

bottles & the like
842230

Top Five Countries

Germany, Italy, Japan, Switzerland, United States
Germany, Malaysia, the PRC, Sweden, Taiwan
Canada, Denmark, Germany, the PRC, United

States
Germany, Japan, the PRC, United Kingdom, United
machines
States
843420
Dairy machinery
Italy, Malaysia, Netherlands, the PRC, Sweden
843490
Australia, Denmark, India, New Zealand, Sweden
842240

843510
wine cider fruit

Germany, Japan, Netherlands, Republic of Korea,

United States

843590

France, Malaysia, the PRC, Spain, United States
beverages
843810
Bakery machines
France, Japan, Netherlands, the PRC, Taiwan
843820
Germany, Italy, Japan, Netherlands, United States
843830
843840
Brewery machines
843850
843860

poultry
Australia, Germany, Malaysia, the PRC,

United States
Germany, Italy, Japan, Switzerland, United States
Germany, India, Japan, Malaysia, United States
France, Japan, Taiwan, Thailand, United States
102
HS Code
Top Five Countries
preparing fruits, nuts or vegetables

843880
Italy, Japan, Malaysia, the PRC, United States

843890
France, Germany, Italy, Netherlands, United States

844110
844120

cutting machines
Germany, Japan, Malaysia, the PRC, Switzerland
Belgium, Malaysia, the PRC, Republic of Korea,
sacks or envelopes
Taiwan

844130
France, Norway, the PRC, Taiwan, United States
molding machines
844140

Japan, the PRC, Sweden, Taiwan, Vietnam
According to Figure 50above, Switzerland is among the top five exporting countries for the following food processing machinery and
equipment to Singapore:
Machinery for cooking ranges for making hot drinks, or cooking or heating food.
Brewery machines.
Paper or paperboard or other cutting machines.
The figure below shows a breakdown of the value of food processing machinery and equipment exported by Switzerland. In the same
figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported an approximate
USD6.0 million worth of food processing machinery and equipment into Singapore.
103
Figure 51: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to Singapore (US Dollar Thousand)
HS Code
841981
Machinery & Equipment
Value of Imports
Largest Exporting
Classification
from Switzerland
Country to Singapore
ing Country)
3,358
United States
5,226
Germany
1,009
130
Germany
16,783
530
Germany
20,969

842220

bottles & the like
842230

842240

machines
843420
Dairy machinery
PRC
337
843490
New Zealand
207
843510
Netherlands
596
France
94

fruit
843590

beverages
843810
Bakery machines
26
Japan
2,396
843820
115
Netherlands
9,880
843830
United States
753
843840
Brewery machines
69
Japan
568
843850
13
Germany
103
United States
135
Malaysia
2,265
689
Germany
2,676
787
Germany
1,482
ery
3,313
poultry
843860
450

843880

843890

844110

cutting machines
104
HS Code
844120
Machinery & Equipment
Value of Imports
Largest Exporting
Classification
from Switzerland
Country to Singapore
ing Country)
Belgium
233
France
538
Sweden
595
sacks or envelopes
844130

molding machines
844140

Total
5,960
Overall, the figure above shows that Switzerlands exports of food processing machinery and equipment into Singapore is significantly
lower than the largest exporting country of the respective machinery and equipment.
5.3.7 Major Players in the industry

Some of the major players in the processed food industry are presented as below. Note that the list is not exhaustive.

There are several well-known major food manufacturers in Singapore. In this section, we profile some of the major producers.
F&N Foods Pte Ltd
Address
: 214 Pandan Loop, Singapore 128405
Tel
: (65) 6210 8108
Fax
: (65) 6210 8118
Email
: customerfeedback@fnnfoods.com
Website
: www.fnnfoods.com
F&N Foods Pte Ltd is a leading beverage manufacturer in Singapore. The company produces a wide range of beverages from soft drinks
to dairy milk products. Besides having a portfolio of trusted household brands such as Magnolia, NutriSoy, and Fruit Tree Fresh, the company also distributes well-known brands like Sunkist Juices and Snow margarine. The company has overseas presences in countries
such as Africa and Australia.
105
Tee Yih Jia Food Manufacturing Pte Ltd
Address
: 1 Senoko Road, Tee Yih Jia Building, Singapore 758134
Tel
: (65) 6880 9888
Fax
: (65) 6286 2222
Email
: tyj@tyjfood.com
Website
: www.teeyihjia.com
Tee Yih Jia Food Manufacturing Pte Ltd is a leading Asian processed food manufacturer. It specialises in a wide range of frozen foods
under its flagship Spring Home brand. One of the larger food manufacturers in Singapore, Tee Yih Jia Food Manufacturing Pte Ltd operates from fully automated manufacturing facilities. The companys products are also being exported to Africa, the Middle East, Oceania,
and Europe.
Singapore Food Industries Pte Ltd
Address
: 234 Pandan Loop, Singapore 128422
Tel
: (65) 6870 0260
Fax
: (65) 6778 4238
Email
: catering@sfi.com.sg
Website
: www.sfi.com.sg
Singapore Food Industries Ltd is the only fully integrated food logistics and catering supplier in Singapore. The company carries out a
wide range of services including food manufacturing, food processing, food distribution, and food catering. The company also specialises
in meat products and frozen food products.
Yeo Hiap Seng (Singapore) Pte Ltd
Address
: 3 Senoko Way, Singapore 758057
Tel
: (65) 6752 2122
Fax
: (65) 6756 5625
Email
: enquiries@yeos.com
Website
: www.yeos.com.sg
Yeo Hiap Seng (Singapore) Pte Ltd is one of the leading manufacturers of beverage products in Singapore. The company manufactures a
wide assortment of Asian beverages and food products. The brands that it carries include Yeos, Pink Dolphin and Justea, among others.
The company is also a distributor for other established beverage brands such as Evian, Red Bull, Pepsi, and Gatorade. The company has
presences worldwide, including the United States, the United Kingdom, and Asia.
Khong Guan Biscuit Factory (S) Pte Ltd
Address
: 338 Jalan Boon Lay Singapore 619526
Tel
: (65) 6261 6888

106
Fax
: (65) 6265 2319
Email
: biscuit@khongguan.com.sg
Website
: www.khongguan.com.sg
Khong Guan Biscuit Factory (S) Pte Ltd is one of the leading local biscuit brands in Singapore. The company manufactures a wide assortment of biscuits under the Khong Guan brand name. The company also has presences in many other countries such as the United
States, the PRC, Australia, and Europe.

The major importers of processed food products in Singapore are dominated by two players: NTUC Fairprice, and Cold Storage, and
includes other smaller players such as Carrefour. The profiles of the three larger food distributors in Singapore are as follows:
NTUC Fairprice Co-operative Ltd
Address : 680 Upper Thomson Road, Singapore 787103

Tel
: (65) 6456 0233
Fax
: (65) 6458 8975
Email
: ecom@fairprice.com.sg
Website
: www.fairprice.com.sg
NTUC Fairprice is recognised as the market leader in operating supermarket chains. Throughout the years, NTUC Fairprice has evolved
into a multi-format retailer to serve the varied needs and interests of customers from all walks of life. For example, Fairprice Finest services consumers belonging to higher income brackets. It offers a wide product assortment aimed at bringing the fine life closer to shoppers. Fairprice Finest offers a wide selection of wines and specialty foods such as organic food, as well as a gourmet butchery operated
by Culina. NTUC Fairprice also operates hypermarkets, convenience stores and stores in petrol kiosks, and currently has more than 230
outlets located across Singapore.
Cold Storage Singapore (1983) Pte Ltd
Address
: 21 Tampines North Drive 2 #03-01, Singapore 528765
Tel
: (65) 6891 8000
Fax
: (65) 6344 1522
Website
: www.coldstorage.com.sg
Cold Storage falls under the Dairy Farm Group of companies. Cold Storage is the second largest food retailer in Singapore. Like NTUC
Fairprice, Cold Storage caters to consumers belonging to various income groups, generally focusing on those in the mid-upper income
categories.
107
Cold Storage also adopts a multi-retail format, and has the following supermarket brands under its group of companies: Shop & Save
stores, Cold Storage supermarkets, Jasons Place and Marketplace, as well as Giant hypermarket stores. The Dairy Farm Group has
more than 100 supermarket outlets and 500 7-Eleven convenience stores across the country.
Carrefour Singapore Pte Ltd
Address
: Suntec Tower 3, 8 Temasek Boulevard #04-01/02/03, Singapore 038988
Tel
: (65) 6211 3102
Fax
: (65) 6333 6178
Email
: sgonline_ops@carrefour.com
Website
: www.carrefour.com.sg
Carrefour is Singapores first hypermarket. It offers a much wider range of products than typical supermarkets, and more foreign products. Carrefour caters to consumers of mid-upper incomes, the office crowd, as well as the expatriates. It has two outlets in Singapore,
both of which are located in prime locations closer to its targeted consumer groups.
Others
There are also other smaller retailers and traders in the country that import processed food products. These include iEcon mini-marts,
Prime Supermarket, and Sheng Shiong. These independently managed supermarkets are usually located within neighborhood areas,
targeting consumers of low to middle income levels.
Walson Food Distributor Pte Ltd
Address
: Block 3016 #05-04 Bedok North Avenue 4 Eastech Singapore 489947
Tel
: (65) 6244 7980
Fax
: (65) 6244 0313
Email
: walson@singnet.com.sg
Website
: www.walson.com.sg
Walson Food Distributor Pte Ltd is one of the major distributors of confectionery and other food products in Singapore. The company
distributes products from brands such as M&Ms, Ferrero Rocher and Hersheys for its confectionery products. It also carries other products, ranging from cereals to spices and beverages.
Rev Distribution Network Pte Ltd
Address
: 31 Bali Lane Singapore 189867
Tel
: (65) 6488 0378
Fax
: (65) 6488 0377
Email
: sales@rev-distrinet.com
Website
: www.rev-distrinet.com
108
Rev Distribution Network Pte Ltd is a distributor of food and wine products in Singapore. The company distributes ready-to-eat food products to retailers such as Cold Storage, NTUC Fairprice, and other supermarkets.
QAF Limited
Address
: 150 South Bridge Road #09-04 Fook Hai Building Singapore 058727
Tel
: (65) 6538 2866
Fax
: (65) 6538 6866
Email
: info@gaf.com.sg
Website
: www.qaf.com.sg
Besides being a major producer of bakery products, QAF Limited also imports and distributes a wide range of liquor and food products in
the country. Brands that the company distributes locally include Cowhead, Farmland, and Spices of the Orient.
DKSH Singapore Pte Ltd
Address
: 24 Penjuru Road #03-02 Singapore 609128
Tel
: (65) 6471 1466
Fax
: (65) 6479 9104
Website
: www.dksh.com.sg
With extensive distribution networks, DKSH Singapore Pte Ltd specialises in Full Agency and Third Party Logistics services that include
importation, warehousing, marketing, and logistics procedures for food products. The company is a distributor for many large retailers in
the country.

Companies within the processed food sector also manufacture and distribute food processing machinery and equipment. Profiles of
some of these industry players are listed below.
Prima Modern Machinery Pte Ltd
Address
: 201 Keppel Road Level 3 Annexe Block Singapore 099419
Tel
: (65) 6276 8676
Fax
: (65) 6276 8689
Email
: sales.pmm@prima.com.sg
Website
: www.pmm.com.sg
Prima Modern Machinery Pte Ltd is a distributor of various European, American, and Japanese brands for food processing machinery and
equipment. Brands that the company carries include Sinmag, Novacel, and Foinox, among others.
109
Fabristeel Pte Ltd
Address
: 9 Tuas Avenue 10 Singapore 639133
Tel
: (65) 6862 3830
Fax
: (65) 6861 5988
Email
: corp@fabristeel.com.sg
Website
: www.fabristeel.com.sg
Fabristeel Pte Ltd is a company that offers turnkey services, facility design, equipment specifications, and in-house fabrications and installation works to the food service industry. The company serves restaurants and fast food chains such as KFC and Fish & Co.
Tetra Pak Asia Pte Ltd
Address
: 19 Gul Lane Singapore 629414
Tel
: (65) 6890 2000
Fax
: (65) 6890 2236
Website
: www.tetrapak.com/sg/
Tetra Pak Asia Pte Ltd provides complete solutions of food processing machinery for dairy, ice cream, beverages, and processed food
products. The company also supplies a range of flexible filling machines and distribution equipment. Tetra Pak Asia Pte Ltd is part of the
Swiss Tetra Laval Group.
Yutaka Pte Ltd
Address
: 10 Kaki Bukit Place Singapore 416188
Tel
: (65) 6747 0333
Fax
: (65) 6747 3765
Email
: info@yutaka-sg.com
Website
: www.packaging.com.sg
Established since 1974, Yutaka Pte Ltd is a supplier of food processing and packaging machinery within Singapore and South East Asia.
The company also offers clients with turn-key solutions for its products range.
Tantraco Enterprise Pte Ltd.
Address
: 32 Ang Mo Kio Industrial Park 2 #04-17 SING Industrial Complex,

Singapore 569510
Tel
: (65) 6482 3575
Fax
: (65) 6482 4398
Email
: info@tantraco.com.sg
Website
: www.tantraco.com.sg
110
Tantraco Enterprise Pte Ltd distributes food processing equipment as well as packaging and related equipment in Singapore. The company also partners with Australias Autopack in producing a range of packaging equipment. The company carries food processing equipment such as industrial microwave systems, nuts processing machinery, and combi ovens.

5.4.1 Opportunities for Overall Market in Singapore
Singapore is reliant on food imports, and this presents immense opportunities for Swiss companies wishing to enter into the market. In
addition, as one of the wealthiest countries within ASEAN, demand and consumption of food products are expected to continue t o increase. Quality food products will also be more sought after, and Swiss companies can tap on this advantage to enter the market. Entry
for Swiss companies will also be made easier as the local population has positive perception of the high quality products produced by
Switzerland. Companies entering the market should have a product that is unique, and good branding strategies. In addition, product
packaging plays an important role with retailers and consumers. Other reasons for the potential of Singapores processed food sector are
outlined as follows:
1.
Availability of government incentives and policies Pro-business policies such as the Global Investor Programme, and a wide
range of tax incentives make it easier for foreigners to set up and operate businesses in the country. More information can be
found in websites of government agencies such as the Economic Development Board (http://www.edb.gov.sg), SPRING Singapore (http://www.spring.gov.sg), and International Enterprise Singapore (http://www.iesingapore.gov.sg).
2.
Necessary for Singapore to diversify sources of food Diversification of food supply will ensure that Singapore will not be overly
dependent on certain countries for any types of food products. This opens up opportunities for companies in Switzerland to enter the processed food sector in Singapore.
3.
High spending power Singaporeans are willing to spend on higher quality products and premium foods, following their rising
disposable income. Swiss companies should take advantage of their quality capabilities and create awareness of their products
in Singapore.
4.
Demand for convenience and health food products Consumers are more likely to opt for convenience foods and ready-to-eat
products, due to busier lifestyles. Another area of opportunity is the emerging trend of health foods that are low in fats and calories, as Singaporeans are becoming more health conscious. Swiss companies are advised to note the consumer trends for food
products, and introduce acceptable products into the market.
5.
Tourism industry One of the major drivers for Singapores economy, the tourism industry helps to boost the local industries as
well as the food processing sectors, as demand for food products continue to rise.
111
6.
Food processing machinery and equipment As Singapore continues to increase productivity within the processed food sector;
Swiss companies can promote their food machinery and equipment that will assist in more efficient production within the local
market. Swiss companies can also provide customised food processing machinery and equipment to food manufacturing companies in Singapore.
7.
Functional food ingredients Functional food products are gaining in popularity due to the nutrients available in these products.
Companies such as F&N Foods Pte Ltd and Nestl (Singapore) Pte Ltd have incorporated functional ingredients into products
such as hi-calcium milk and soya milk, so as to provide more nutrients to consumers. Hence, Swiss companies may also sell
such functional ingredients to local processors.
8.
The Growing Halal Sector The Singapore government has identified the abundant opportunities in the global Halal food sector,
and is looking at ways to increase innovation and production for this sector. Along with a substantial population of Malays in the
country, the Halal food market presents opportunities for companies, and is one of the emerging markets that companies should
target.

In 2011, Singapore imported a total of 11,117 tons of cheese products, worth approximately USD78.1 million. In the same year, the country exported only 1,215 tons of cheese products, valued at approximately USD9.4 million.
Figure 52: Trade Statistics (2007-2011) for Cheese Products in Singapore

Import Value
Year
Export Value
Import Volume
(US Dollar
Thousand)
Export Volume
(US Dollar
(Tons)
(Tons)
Thousand)
2007
46,464
8,239
5,689
1,189
2008
63,319
9,455
7,263
1,120
2009
53,854
9,200
8,469
1,339
2010
63,899
10,239
9,578
1,404
2011
78,080
11,117
9,407
1,215
The top exporting countries of cheese to Singapore include Australia, France, and New Zealand. From the figures, it is evident that there
is potential growth in the import of cheese products in Singapore. The import values have also shown an increasing trend of processed
cheese products entering the country.
Gourmet cheeses are also becoming more popular and accessible through restaurants and supermarkets. With the recovery of the economy in 2010/ 2011, consumers are more likely to be willing to spend on quality food such as cheese products. The local market for
cheese might be difficult to penetrate as established brands such as Kraft and Fonterra maintain the leaders for cheese products within
112
the country. However, Swiss cheese products have opportunities to enter the Singapore market, as the population is becoming more
aware of the different types of cheeses, and are willing to try out new flavours.

In 2011, Singapore saw total import of coffee products reach 28,978 tons, and valued at USD165.3 million. Total export of coffee products
from the country amounted to 48,119 tons, and valued at USD213.9 million.
Figure 53: Trade Statistics (2007-2011) for Coffee Products in Singapore

Import Value
Year
(US Dollar
Import Volume
(Tons)
Thousand)
Export Value
(US Dollar
Export Volume
(Tons)
Thousand)
2007
146,175
37,401
167,271
53,627
2008
144,294
33,293
196,832
56,093
2009
122,354
27,365
151,608
36,846
2010
134,935
28,613
174,660
43,263
2011
165,271
28,978
213,894
48,119
The top exporters of coffee products into Singapore include countries such as Malaysia and Indonesia. Coffee products are popular in
Singapore, and they are consumed in coffee shops, cafs, and coffee places. Local established brands for coffee retail products include
Nescaf and Super. The increase in number of coffee places such as Starbucks has shown an increase in local consumption of coffee
products and reflects a coffee drinking culture. Aside from that, retail supermarkets often carry a wide range of ready-to-drink coffee products, and these are competitively priced. In addition, the introduction of single-use instant coffee machines has boosted the coffee sector
within the food industry in 2011, where consumers are willing to pay higher prices to enjoy gourmet coffee. Opportunities for coffee products may be limited, as consumers tend to stick to familiar local brands for mass coffee products. Further opportunities can be seen within
the gourmet coffee sector, where consumers are willing to pay higher prices for quality coffee from around the world.

In 2011, Singapore exported higher values and volume of candy and chocolate products. The country exported a total value of USD408.2
million, and 119,042 tons of candy and chocolate products. In the same year, the country recorded a smaller import value of USD261.1
million and 39,368 tons of candy and chocolate products.
113
Figure 54: Trade Statistics (2007-2011) for Candy and Chocolates in Singapore
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
164,257
32,323
250,911
116,886
2008
185,128
33,926
307,942
115,175
2009
179,472
30,705
298,021
116,972
2010
212,223
35,328
363,091
115,159
2011
261,122
39,368
408,174
119,042
Following the economys recovery in the past year, consumers are opting for gourmet chocolate products instead of off-the shelfchocolate products. Boxed assortments of chocolate products are also popular choices as gifts. With consumers becoming more health
and calorie conscious, many are also opting for plain dark chocolates instead of milk chocolate products.
Popular chocolate brands in the nation include Ferrero Rocher, Hersheys and Royce Chocolate. Premium chocolate boutiques can be
seen as an increasing trend to cater to consumers preference for exotic and exclusive chocolate products. As chocolates are popular
snack foods to the local population, demand for chocolate products is expected to increase in the next few years.
In addition, sugar confectionery, such as mints, are increasing in local popularity, as consumers take them frequently to freshen their
breaths. There is a wide range of sweet confectionery available in Singapore. Popular sweet brands include Ricola and Fishermans
Friend. While consumers are willing to try out new brands and flavours, it is important to note that local consumers tend to compare product prices first. Packaging of sweets is also important, in order to be distinct from the other brands on the shelves. Similar to chocolate
confectionery, demand for sweet confectionery is likely to show a moderate increase over the next few years.

Singapores total import value for processed meat products in 2011 was recorded at USD157.8 million. The total import volume was
37,784 tons. In the same year, the country posted significantly lower values for the export of processed meat products. Export value was
recorded at USD10.6 million, and volume was recorded at 3,026 tons.
Figure 55: Trade Statistics (2007-2011) for Processed Meat Products in Singapore
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
79,124
26,182
6,007
1,792
2008
108,995
29,452
4,872
1,263
2009
109,902
86,292
5,143
1,265
114
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2010
128,546
33,702
6,020
1,669
2011
157,778
37,784
10,637
3,026
Singapore imports more processed meat products than it exports. The local food manufacturing sector comprises several companies that
specialises in the manufacturing and processing of meat products. Meat products such as sausages and ham are popular with the local
population. Processed meat products are usually imported from other countries such as Germany and the United Kingdom. The local
population is open to trying new quality gourmet meat products, which can be found in local restaurants and supermarkets. The high
consumption level of meat products in Singapore opens opportunities for Switzerlands meat products. However, regulations for imported
meat products are very strict, and companies that are interested are advised to contact the Singapore Agri-Food & Veterinary Authority
(www.ava.gov.sg), for more information.
5.4.6 Opportunities for Beverages Packaging Machinery and Equipment

Singapores total import value for machines for filling, closing, sealing, capsuling, labelling bottle cans, boxes, bags, etc beverages aerators in 2011 was recorded at USD44.6 million. The total import volume was 41,480 units. In the same year, the country posted lower
values for the export of these machinery and equipment. Export value was recorded at USD35.7 million, and the volume was recorded at
25,164 units.
Figure 56: Trade Statistics (2007-2011) for Beverages Packaging Machinery and Equipment in Singapore
Import Value
Year
Export Value
Import Volume
(US Dollar
Export Volume
(US Dollar
Thousand)
Thousand)
2007
20,502
485
(tons)
13,989
301
(tons)
2008
15,533
321
(tons)
18,531
393
(tons)
2009
13,202
250
(tons)
14,321
259
(tons)
2010
42,200
856
(tons)
20,453
426
(tons)
2011
44,563
41,480 (units)
35,741
25,164 (units)
Singapore imports more machines for filling, closing, sealing, capsuling, labelling bottle cans, boxes, bags, etc beverages aerators than it
exports. As reflected in the figure above, the country has imported 39.3% more units of the said machinery in 2011. The mentioned range
of machinery and equipment are usually imported from Germany and the United States.
115
5.4.7 Opportunities for Machines for Sugar Making

Singapores total import value for machines for sugar making in 2011 was recorded at USD0.9 million. The total import volume was 3,644
units. In the same year, the country posted lower values for the export of these machinery and equipment. Export value was recorded at
USD0.3 million, and volume was recorded at nine units, suggesting that there is domestic demand for machinery used for sugar making.
Figure 57: Trade Statistics (2007-2011) for Machines for Sugar Making in Singapore
Import Value
Year
Export Value
Import Volume
(US Dollar
Export Volume
(US Dollar
Thousand)
Thousand)
2007
217
(tons)
130
(tons)
2008
24
(tons)
430
12
(tons)
2009
1,270
1,019 (tons)
107
23
(tons)
2010
670
92
(tons)
1,827
16
(tons)
2011
927
3,644 (units)
286
(units)
As reflected in the figure above, the country has imported a significant number of machinery used for sugar making, much more than it
exported in 2011. Such machinery and equipment are usually imported from the United States, Germany and Australia. In 2011, Switzerland recorded zero exports of machinery for sugar making into Singapore. Swiss companies may consider exporting this range of machinery in the future.
5.4.8 Opportunities for Bakery Machines

Singapores total import value for bakery machines in 2011 recorded at USD9.4 million. The total import volume was 7,768 units. In the
same year, the country posted lower values for the export of these machinery and equipment. Export value was recorded at USD2.3
million, with volume standing at 3,314 units.
Figure 58: Trade Statistics (2007-2011) for Bakery Machines in Singapore

Import Value
Year
Export Value
Import Volume
(US Dollar
Export Volume
(US Dollar
Thousand)
Thousand)
2007
6,162
302
(tons)
5,779
236
(tons)
2008
4,369
185
(tons)
4,406
167
(tons)
2009
3,706
138
(tons)
1,118
41
(tons)
2010
7,066
289
(tons)
1,392
55
(tons)
2011
9,400
7,768 (units)
2,348
3,314 (units)
116
As reflected in the figure above, the country has imported a significant number of bakery machinery, more than it had exported in 2011,
Bakery machines in Singapore are usually imported from Japan, the Netherlands, and the PRC, and are used in a wide range of applications due to the large number of bakeries in the country.

Singapore has a wide range of agents, distributors, and potential partners with the expertise and contacts for the local and regional markets. As Singapore is a relatively easy country to enter, different forms of entry strategies will depend on the companys target market. In
addition, Singapores retail market is being dominated by a few major players, which have strong bargaining powers over food suppliers.
It is mandatory for a foreign company to register its business with the Accounting and Corporate Regulatory Authority Singapore (ACRA)
in order to carry out business operations within Singapore. More information on the types of business enterprises that available and
present in the county can be found at the Appendix section of the report.
Companies in Switzerland should also make use of the existing Singapore-European FTA consisting of a free trade area between Singapore and Switzerland, Liechtenstein, Norway and Iceland (http://www.fta.gov.sg/fta_esfta.asp?hl=11). The forms of entry strategies into
Singapores processed food sector are discussed below.
5.5.1 Use of Agents/ Distributors

The use of agents or distributors is a common market entry strategy by overseas companies. This form of market entry reduces the potential market risks faced by companies, as Singapore operates in a high-cost environment. Companies trying to reach local retailers such
as supermarkets are also advised to engage local agents, as they are usually preferred over cold-calling methods.
5.5.2 Establishing a Local Presence

Companies looking to distribute their products in Singapore may also consider setting up an office in the country. By establishing a local
presence, companies may find themselves obtaining easier access into the distribution channels, and also gain awareness of the upcoming food trends.
5.5.3 Joint Ventures/ Co-branding

Companies wanting to enter the Singapore market can do so by establishing a joint venture partnership with locally recognised firms.
Singaporeans tend to link their impressions of brands and are more likely to purchase products from a familiar brand.
117
5.5.4 Franchising
Franchising is also a popular mode of market entry strategy adopted by international companies. With an educated and open -minded
population, the population is constantly looking forward to new brands. In addition, with a large number of entrepreneurs seeking new
business concepts, potential franchises are very much welcomed in Singapore.
5.5.5 Direct Sales Channels

Singapores sales channels are simple and direct, as the supermarkets are controlled by leading companies in the industry. One of the
easiest modes of entry is through the major food retailers, where consumers are exposed to food products in supermarkets.

Guidelines for processed food imports are regulated by several government bodies in Singapore. These include SPRING Singapore, AVA,
and HSA. It is mandatory for all processed food imports to adhere to the regulations laid down under the Sale of Food Act and the Food
Regulations in Singapore. It is also a pre-requisite for the importer to be a Singapore-registered company or business. In addition, imported food products into Singapore must also fulfil other requirements, such as product labelling and packaging regulations.
The Islamic Religious Council of Singapore (MUIS) is the statutory body of Halal certification in Singapore. MUIS is responsible for issuing Halal certificates based on a set of systems-focused Halal certification requirements known as the Singapore Muis Halal Quality Management System (HalMQ). Muis offers seven Halal certification schemes. More information on Muis can be found on
http://www.muis.gov.sg.
5.6.1 Import Requirements in Singapore

Companies looking to import food products into the country have to go through the import process as required by AVA. This includes the
submission of various types of documentation, such as registration application, import permit application, and required supporting documents.
The various product testing and inspection steps adopted by AVA ensure that food products are safe for consumption. However, it is the
importers responsibility to ensure that imported food products comply with the Sale of Food Act and the Food Regulations. All imported
food products are subjected to inspection by AVA. It is essential for importers to submit certified-true-copy documents from the food safety
authority of the country of origin, stating that the imported food products are produced by licensed or regulated premises.
118
Processed food products may be imported from any country into Singapore. There are also no import quota restrictions for food products
into the country. However, companies should take note of the requirements for the import of various food products and food processing
machinery and equipment, which are discussed below.
5.6.2 Import of Meat and Fish Products

The Wholesome Meat and Fish Act regulates the import, processing, distribution, and sale of meat and fish products. The Wholesome
Meat and Fish Act is accessible from www.ava.gov.sg. Regulations for the import of meat products are very strict in Singapore, as meat
products can only be imported by approved sources and countries. More information and requirements can be obtained from
http://www.customs.gov.sg.
5.6.3 Import of Specific Food Products

Due to health risks and other considerations, the import of various specific food products, such as dairy products, are subject to further
import requirements. More information in regard to the import of specific food products can be accessed through www.ava.gov.sg.

The Singapore Food Regulations guidelines require all packaged food products to be labelled according to the requirements specified.
General labelling rules are necessary and include:
1.
Name of food.
2.
Statement of ingredients.
3.
Declaration of foods and ingredients known to cause hypersensitivity.
4.
Declaration of net content in package.
5.
Name and address of local manufacturer or importer.
6.
Country of origin of food.
In addition to these general requirements, the Sale of Food Act stipulates additional labelling requirements for other statements, such as
Nutrition Claim and special purpose foods. Detailed information can be found on www.ava.gov.sg.

There is no publicly available information on the restrictions of food processing machinery and equipment imports in Singapore. However,
the Singapore Customs (www.customs.gov.sg) lists the requirements for the import of specific food processing machinery and equipment
according
to
their
HS
Codes.
For
further
information,
please
refer
to
the
link,
located
at
http://www.customs.gov.sg/bilateral/ceca_annex3a%20PSR.pdf.
119
6. Thailand
Equipment Sectors in Thailand
6.1.1 Brief Overview of Thailands Economy and Key Statistics
Figure 59: Thailands Economy and Statistics
Population
Capital
Bangkok
Area
513,115 sq km (as at 2010)

GDP
USD355.4 billion (2011 est.)
GNP per capita
USD5,257.9 (2011 est)

7.8% (2010)
1.5% (2011)
GDP growth rate
4.5 to 5.5% (est 2012)
Sources
THB30.2963 = USD1.00
http://www.bot.ot.th

THB31.8319 = USD1.00
THB33.9806 = CHF1.00
USD1.00 = CHF0.9316
Source: Thailand Bureau of Trade and Economic Indices, Bank of Thailand
Located in the heart of Southeast Asia, Thailand is one of the worlds largest agricultural producers, and its economy is rel iant on its export activities. In 2010, the countrys GDP was recorded at USD317.7 billion. The preliminary GDP estimate for the countrys GDP in 2011
is USD355.4 billion. Thailand also posted a per capita GNP of USD5,257.9.
Thailands population was recorded at 67.4 million in 2010, and the country has an average annual population growth of 1.3%. Majority of
the population are Chinese, with other minority groups including Malays, Khmer, Mon, Lao, and various hill tribes.
The major industries of the country include tourism, agricultural processing, tobacco, and the manufacturing of automobiles and automotives. The processed food sector in Thailand is an integral part of the countrys economy. Being a popular tourist destination, the processed food sector in the country is also boosted by the large volume of tourists that visit Thailand annually. The vibrancy of the processed food sector in Thailand is an impetus to the food and processing equipment sector in the country.
120
Further
information
on
Thailands
statistics
can
be
found
at
the
following
websites:
http://web.nso.go.th/
and
http://www.bot.or.th/Thai/Statistics/Indicators/Docs/indicators.pdf.
Sector in Thailand
6.2.1 Characteristics of the Sector
Thailands processed food industry is expanding rapidly, with government policies actively supporting the growth of this industry. The
country, being the largest food exporter in Southeast Asia, has an active processed food industry.
Food Manufacturers
Food manufacturers in Thailand carry out mostly small-scale food production operations, with several larger players such as Charoen
Pokphand Group and Thai President Foods Public Company Limited.
As Thailand engages in agricultural production, the processed food sector is not heavily dependent on imported processed food products.
However, the country still remains an importer for certain food ingredients and products such as soybean and dairy products.
By supplying a large volume of processed food products to countries across the globe, Thailands food manufacturers are constantly
progressing alongside the industry. The country provides a skilled workforce and is technology-driven in the processed food industry.

The countrys vibrant processed food industry has created an operating platform for the manufacturing and distribution of food processing
machinery and equipment. Such machinery and equipment are also necessary for processing large amounts of domestic agricultural
production. Production machinery utilised by larger companies in Thailand are often more advanced machinery that meet international
quality standards as companies of larger-scale have the financial abilities and are willing to invest in these technologies. Local manufacturers usually operate on a smaller scale and produce economic models of machinery and equipment. There are also an increasing number of local distributors that imports machinery and equipment from other countries. In addition, some of the local companies provide
OEM services and customised solutions for both food processing and packaging machinery. Thailand imports food processing machinery
and equipment mainly from countries such as Italy and the PRC.
121

Due to the countrys large area and population, food importers and retailers play important roles as food suppliers for the c onsumers.
There are many food importers within the country, as demand for food is always increasing. Food imports from all over the world can be
found in the country, as Thailand is influenced by western and eastern cultures. Food retailers are important avenues for consumers in
the country, and most of these retailers are major importers, who are able to offer consumers low product prices. Food retail formats have
grown significantly in Thailand, and retail formats within the country include wet markets, supermarkets, convenience stores and hypermarkets. Major food importers and retailers in Thailand include companies such as BigC, Central Food Retail, and Tesco Lotus. Food
distributors are also often responsible for introducing foreign brands into the main retail formats in the country.

Thailand is a major exporter of processed food products. In 2011, Thailand imported approximately USD2.9 billion worth of processed
food products. In the same year, the country exported an approximate USD17.0 billion worth of processed food products, which was
nearly six times that of food imports.
HS Code
0210
5,892
10,718
0305
Processed fish
5,445
95,199
0401-0406
Dairy Produce
607,224
176,145
0901-0903
Coffee, tea & mate
101,420
9,730
1601-1605
147,751
7,201,814
1701-1704
147,904
3,870,915
1801-1806
198,947
85,427
1901-1905
505,050
928,607
2001-2009
236,682
2,102,048
2101-2106
574,213
1,655,774
2201-2209
325,325
877,235
2,855,853
17,013,612
Total
Imports
Exports
From the figure above, Thailand exported the highest value of meat, fish and seafood preparations, followed by sugar and sugar preparations.
In terms of volume, Thailand imported and exported an approximate amount of 1.0 million tons and 13.5 million tons of processed food
products respectively. The country exported the largest amount of sugar and sugar preparations in 2011, based on volume.
122
HS Code
Imports
Exports
0210
3,563
2,115
0305
Processed fish
3,503
72,671
0401-0406
Dairy Produce
197,604
104,533
0901-0903
Coffee, tea & mate
37,908
2,104
1601-1605
45,840
1,469,928
1701-1704
177,129
7,002,551
1801-1806
61,524
19,355
1901-1905
146,143
336,382
2001-2009
156,956
1,617,779
2101-2106
95,717
793,387
2201-2209

Total
91,672
2,066,595
1,017,559
13,487,400

1.
11th National Economic and Social Development Plan (2012-2016) As part of the governments 11th National Economic and
Social Development Plan49, Thailand is focusing on developing the countrys food sector with initiatives such as developing natural resources to strengthen its agricultural base. The country will also be reinforcing natural resources as the foundation for agricultural production base. Lands suitable for agriculture purposes will be conserved, and the land management system will be
improved.
In addition, the government aims to increase value of the agricultural commodities,
along with the countrys food supply chain.
This includes encouraging food research and development, improving logistics management, as well as increasing the quality
and standards of food products to that of international standards. 50
2.
Demand for convenience and functional foods - With a growing middle income population, demand for convenience and functional foods is increasing, especially in urban areas where a larger working population can be found. The increasing number of
young adults and women in the workforce is also expected to trigger demand for ready-to-eat food products. In addition, with the
growth of health-conscious consumers, functional foods such as organic products are gaining in popularity.
49
Office of the National Economic and Social Development Board, www.nesdb.go.th

Office of the National Economic and Social Development Board,
http://www.nesdb.go.th/Portals/0/news/academic/Executive%20Summary%20of%2011th%20Plan.pdf
50
123
3.
Green Productivity in the processed food sector The government is encouraging Thailands food industry to adopt green production in order to reduce unnecessary resources and costs, as environmental issues are gaining awareness around the world
today. Through the green productivity management system, the government aims to develop the domestic food industry to becoming superior in food production and environmental conservation. Industry players such as food manufacturers are also encouraged to enhance their production capabilities and raise the countrys food industry standard, while reducing unnecessary
resources.
4.
Processed food sector requires consolidation Thailands processed food sector is currently highly fragmented, with a large
number of small, medium companies and cottage industries in the sector. Consolidation within the sector is necessary to reduce
inefficiency and over usage of resources.
5.
Thailands Flood Issues in 2011 In 2011, Thailand faced one of its worst floods, and many of the countrys agricultural fields
were destroyed, leading to a shortage of rice supply. In addition, the tourism and retail sectors were also negatively affected by
Thailands floods. Industry players within the food value chain were also badly hit. Retailers and suppliers are facing difficulties
and challenges with distribution across the country. One of the consequences after the flood is lower consumer sentiments and
lower consumer spending.

There are currently more than 10,000 industry players in the local processed food sector. There are also large importers in the industry
such as BigC, Central Food Retail, and Foodland Supermarket. The number of supermarkets, hypermarkets, and convenience stores
within the country adds up to more than 8,000 outlets. There are also a considerable number of wet markets, provision shops and cottage
industries within the food processing industry.

This section provides further insights to the processed food and food processing machinery and equipment sectors in Thailand. The processed food sector is divided into two sub-sectors food manufacturers as well as food importers and distributors.
Food Manufacturers
Manufacturers within the processed food industry are divided into the following 12 sub-sectors - milk and dairy products, fishery products,
fresh and processed vegetables and fruit, spice and seasoning, tea, coffee, and cocoa, sugar and desserts, oil and edible fats, meat and
poultry, flour and flour products, feed; beverages and other specialty foods.
124
Most of the food manufacturers operations are small-scale. The industry also comprises larger international players such as Nestl Thailand, Unilever Thailand, and Coca-Cola Thailand. Some of the food manufacturers are members of the Thai Food Processors Association. For members listings, please refer to the official site at www.thaifood.org. The countrys Food Processing Industry Club can also be
accessed through http://ftiweb.off.fti.or.th/industrialgroup/food/index.asp/.

Major food importers in the country play an important role in the distribution of processed food products through modern retail outlets such
as supermarkets. The supermarket sector in Thailand is dominated by a few major players, which include BigC, Central Food Retail, and
Tesco Lotus. Convenience stores are driven by 7-Eleven outlets. With an increasing number of retail outlets across the country, food
products will be more accessible and new and existing products will be able to reach a larger consumer base. Aside from the major players, there are also local food importers and distributors that obtain food products from the neighboring countries. There is no publicly
available information on the estimated costs of listing prices with retailers in Thailand. Companies are advised to contact the respective
retailers for more information.
The recall of food products in Thailand is regulated by the Food and Drug Administration (FDA) of the Ministry of Public Health. The
recall process is usually initiated by the Import & Export Inspection Division under the FDA. While comprehensive information on the
recall procedure is not available in English, products should hold appropriate information such as lot identification, which are essential
during product recall. Recalled products should also be held under supervision until the authorities have announced appropriate action to
be taken. The need for public warnings should also be considered. 51

There are various companies that engage in the manufacturing and distribution of processed food machinery and equipment in Thailand.
These include food packaging machinery and equipment. Larger manufacturing players include Food Machinery Co Ltd and Emura (Thailand) Co Ltd.
There are also distributors that import food processing machinery and equipment from countries such as Italy and Japan. These companies include Food Equipment Co Ltd and CN Technology Co Ltd. Apart from these industry players, some suppliers of processed food
machinery and equipment also engage in the modification and customisation of machinery to suit clients requirements.
6.3.3 Sources of Imports to Thailand

As one of the major exporters of processed food products, Thailand also imports food products and food ingredients that are not available
within the country. The top importing countries for Thailand include countries such as the PRC, Australia, and Malaysia. Top importing
countries into Thailand for specific food products also include Indonesia (cocoa and cocoa preparations), the United Kingdom (beverages,
spirits and vinegar), and the United States (miscellaneous edible preparations). The figure below shows the top five importing countries
for each product category. Note that the list is not exhaustive.
51
National Bureau of Agricultural Commodity and Food Standards, http://www.acfs.go.th/standard/download/eng/GMP.pdf
125
Figure 62: Top Importing Countries for Thailand for 2011

HS Code
Top Five Countries
0210
India, Italy, Pakistan, the PRC, Turkey
0305
Processed fish
Cambodia, Hong Kong, Indonesia, the PRC, United Kingdom
0401-0406
Dairy Produce
Australia, Ireland, Netherlands,

New Zealand, United States
0901-0903
Coffee, tea & mate
Indonesia, Italy,
United Arab Emirates, United States, Vietnam
1601-1605
Indonesia, Malaysia, the PRC,

Thailand, Vietnam
1701-1704
Indonesia, the Philippines, the PRC, United States,

Vietnam
1801-1806
Ghana, Indonesia, Italy,

Malaysia, Papua New Guinea
1901-1905
Australia, Indonesia, Malaysia,

Philippines, Singapore
2001-2009
Greece, Israel, Malaysia, PRC,

United States
2101-2106
Japan, Netherlands, Malaysia,

PRC, United States
2201-2209
Australia, France, Philippines,

United Kingdom, Vietnam
6.3.4 Comparison of Processed Food Products Imported from Switzerland vis--vis other
Foreign Countries
According to the top importing countries for Thailand, above, it is evident that Switzerland is not a major exporter for Thailand. The figure
below shows a breakdown of the value of processed food products exported by Switzerland. In the same figure, the value of the respective products by the largest exporting country is also presented. In 2011, Switzerland exported an approximate USD22.3 million worth of
processed food products to Thailand.
126
Figure 63: Comparison of Switzerland Export Value of Food Products to Thailand (US Dollar Thousand)
Value of
HS Code
Largest
Food and Beverages
Imports
Classification
from Switzerland
Thailand
Value (by Largest

Exporting Country)
0210
India
2,828
0305
Processed fish
Indonesia
1,305
0401-0406
Dairy Produce
2,183
0901-0903
Coffee, tea & mate

1601-1605
and seafood
1701-1704

Cocoa & cocoa
1801-1806
preparations
1901-1905
products
2001-2009
fruits and nuts

2101-2106
preparations
2201-2209
-
vinegar
Total
New Zealand
326,793
34
Vietnam
76,386
29
PRC
65,378
2,793
PRC
37,379
7,286
Indonesia
42,828
1,573
Singapore
87,031
1,254
PRC
75,495
7,079
United States
133,789
United Kingdom
168,705
29
22,260
The figure above shows that Switzerland imports very little amounts of processed food products into Thailand. The highest value of processed food products that Switzerland exports to Thailand is cocoa and cocoa food preparations.
6.3.5 Sources of Food Processing Machinery and Equipment Imports to Thailand

Top exporters of food processing machinery and equipment into Thailand include countries such as Germany, Italy, the PRC, and Taiwan.
127
Figure 64: Top Exporting Countries of Food Processing Machinery & Equipment to Thailand
HS Code
Top Five Countries
841981
Germany, Italy, Japan, the PRC, United States

842220
Germany, Italy, Japan, Sweden, Switzerland
bottles & the like

842230
Machines for filling closing sealing capsuling
labeling bottles cans boxes bags etc beverages aerators

842240
843420
Dairy machinery
Denmark, Italy, the PRC, Sweden, United Kingdom
843490
Germany, Italy, the PRC, Sweden, Taiwan
843510
France, Italy, the PRC, Taiwan, United States
machines
wine cider fruit juices or similar beverages

843590
France, Italy, the PRC, Taiwan, United States
electrically-operated for making wine cider

fruit juices & similar beverages
843810
Bakery machines
Italy, Japan, Netherlands, the PRC, United States
843820
Egypt, Germany, Italy, Netherlands, United Kingdom
843830
Japan, the PRC, South Africa, Taiwan, United

States
843840
Brewery machines
Germany, Italy, Japan, the PRC, United Kingdom
843850
Denmark, Germany, Japan, Netherlands, United
poultry
States
Germany, Italy, Japan, Netherlands, United States
843860

843880
Australia, Japan, the PRC, Taiwan, United States

843890
Parts for machinery for the industrial preparations/

844110
cutting machines
844120
Germany, Italy, Japan, the PRC, Republic of Korea
sacks or envelopes
844130
Machines for making paper cartons boxes
Japan, the PRC, Republic of Korea, Switzerland,
cases tubes drums etc excl molding machines
Taiwan
Japan, the PRC, Republic of Korea, Switzerland,
United States
844140
128
According to Figure 64 above, Switzerland is among the top five exporting countries for machinery for cleaning drying bottles & the like,
paper or paperboard or other cutting machines, machines for making paper cartons boxes cases tubes drums etc excl molding machines, and machines for molding articles in paper pulp, paper or paperboard.
The figure below shows a further breakdown of the value of food processing machinery and equipment exported by Switzerland to Thailand. In the same figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported
an approximate USD16.0 million worth of food processing machinery and equipment to Thailand.
Figure 65: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to Thailand (US Dollar Thousand)
HS Code
841981
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Thailand
ing Country)
1,020
Italy
6,180
2,158
Italy
2,888
301
Italy
51,456
875
Japan
36,942
Drinks, cooking or heating food

842220

bottles & the like
842230

842240

machines
843420
Dairy machinery
Sweden
1,586
843490
Taiwan
419
843510
Taiwan
186
PRC
289
287
Japan
9,676
Germany
1,018
PRC
1,424

fruit
843590

beverages
843810
Bakery machines
843820
843830
129
HS Code
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Thailand
ing Country)
843840
Brewery machines
843850
Germany
582
904
Netherlands
13,613
19
Italy
1,349
373
Japan
28,036
165
PRC
4,138
5,245
PRC
6,080
Germany
1,539
4,585
PRC
6,199
97
PRC
2,622
poultry
843860

843880

843890

844110

cutting machines
844120
17
sacks or envelopes
844130

molding machines
844140

Total
16,046
The figure above shows that Switzerlands exports of food processing machinery and equipment into Thailand is significant for certain
products. Additionally, there are specific machinery and equipment that Switzerland does not import into Thailand. These include machinery for making confectionery, bakery machines, and dairy machines. Companies looking to enter the country may explore these sectors.
6.3.7 Major Players in the Industry

The top players in the processed food and food processing machinery and equipment industry are presented below. The list is not exhaustive
130

There are several well-known major food manufacturers in Thailand. In this section, we profile some of these major players.
Charoen Pokphand Group
Address
: C.P. Tower 12/F, 313 Silom Road, Bangrak, Bangkok 10500
Tel
: (662) 625 8000
Fax
: (662) 638 2741
Email
: cpg@cpthailand.com
Website
: www.cpthailand.com
The Charoen Pokphand Group is one of the leading food manufacturers in Thailand. The company carries brands such as CP, AQ Fresh
and Kitchen Joy. The company produces an assortment of fresh food products, processed food products and ready-to-eat meals. Processed food products from the Charoen Pokphand Group can be found in countries such as Australia, France, Singapore, and the United
States.
Thai President Foods Public Company Limited
Address
: 304 TF Bldg., Srinakarin Rd., Huamark, Bangkapi, Bangkok 10240
Tel
: (662) 374 4730
Fax
: (662) 374 7743
Email
: tf@mama.co.th
Website
: http://www.mama.co.th
Thai President Foods Public Company Limited is the leading noodle manufacturer in Thailand. The company manufactures and produces
a wide range of noodle products under brand names such as Mama, Mendake, and Ruski. The company also manufactures confectionery
products such as wafers and cookies. The companys products can be found throughout Europe, Africa, the United States, and Asia.
Dole Thailand Ltd
Address
: Panjathani Tower 10th Floor. 127/10-11 Nonsee Rd, Chongnonsee, Yannawa, Bangkok 10120
Tel
: (662) 686 7676
Fax
: (662) 686 7622
Website
: www.dole.co.th
Dole Thailand Ltd is a leading company for the production and exporting of canned pineapples. Established since 1972, the company
manufactures a wide range of products, including canned pineapple, mango, pouched products, and tropical fruit purees. The company
has presences in countries such as the United States, Europe and Japan.
131
Thai Beverage Public Company Limited
Address
: 14 SangSom Building, Vibhavadee Rangsit Road, Chomphon, Chatuchak, Bangkok 10900
Tel
: (662) 785 5555
Fax
: (662) 272 2328
Website
: www.thaibev.com
Thai Beverage Public Company Limited is Thailands leading beverage manufacturer. The company manufactures beverages such as
spirits, beer, and non-alcoholic drinks. The companys brand names include Chang Beer, Sangsom, and Oishi.
Asian Seafoods Coldstorage Public Company Limited
Address
: 1742 Soi Kueynam-Tai, Arjnarong Road, Klongtoey, Bangkok 10110
Tel
: (662) 249 7113
Fax
: (662) 249 5256
Email
: asian1@asianseafoods.co.th
Website
: www.asianseafoods.net
Asian Seafoods Coldstorage Public Company Limited is a major manufacturer for frozen seafood products in Thailand. The compan ys
products include processed fish, shrimp, and squid. The company markets its products under brand names such as TCC, Sakura, Asian
Seafoods, and Sea Wave.

The major importers of processed food in Thailand include companies such as BigC, Tesco Lotus, and Central Food Retail. Profiles of the
major food distributors in Thailand are also presented in this section.
Big C Supercenter Public Company Limited
Address
: 6th Floor, 97/11 Rajdamri Road, Lumpini, Pathumwan, Bangkok 10330
Tel
: (662) 655 0666
Website
: www.bigc.co.th
Big C Supercenter Pubic Company Limited is a leading supermarket retailer under the brand name Big C in Thailand. The group of supermarkets is managed under the umbrella of Groupe Casino, a French-based corporation. Big C adopts a multi-retail store format approach. In addition to Big C supercenters, there is also the Big C Town Centre, Mini Big C (convenience stores), and Pure by Big C
(health, beauty and pharmacy stores). Big C offers consumers a wide range of products, with more than 50% of its shelves filled with
food products. There are currently more than 100 Big C outlets across Thailand.
132
Central Food Retail Company Ltd
Address
: 6th-7th Fls. Central Plaza Office Tower, 1693 Phaholyothin Rd. Lardyao, Jatujak Bangkok 10900
Tel
: (662) 937 1700
Fax
: (662) 937 1713
Website
: http://www.tops.co.th
Central Food Retail Company Ltd is one of the largest supermarket chains in Thailand. The company currently operates over 210 outlets
across Thailand. The company also adopts a multi-retail store format, including Central Food Hall, Tops Market (international supermarket), Tops Super (everyday supermarket) and Tops Daily (mini-supermarket). Almost two-thirds of the companys supermarkets are located within Bangkok, catering to the urban consumers.
Ek-Chai Distribution System Co., Ltd
Address
: 629/1 Moo.10 Nawamintr Rd., Klongkoom, Buengkoom Bangkok 10230
Tel
: (662) 797 9000
Fax
: (662) 797 9802
Website
: www.tesco.co.th
Tesco Lotus currently operates over 660 stores under Ek-Chai Distribution System Co., Ltd in Thailand. Tesco Lotus also adopts a multiretail store format, including; Hypermarkets, Tesco Lotus Value (in upcountry areas), Talad Lotus, Tesco Lotus Express (24 hours convenience stores), and Plus shopping malls.
Global Food Products Co Ltd

Address
: 2439 Old Paknam Rail Road Klong-Toey 10110 Bangkok
Tel
: (662) 671 6882
Fax
: (662) 671 6886
Email
: info@globalfoodproduct.com
Website
: www.globalfoodproduct.com
Global Food Products Co Ltd is one of the major food distributors in the country. The company imports products from Australia, New
Zealand, and other countries. It also carries brands such as Unilever Australia, Cerebos, and Goodman Fielder. The company distributes
its products to major retailers such as Big C, Tesco Lotus, and Carrefour.
Horeca Supply (Thailand) Co Ltd

Address
: 40/7 Moo 4 Superhighway Rd T. Tasala A. Muang 50000 Chiang Mai
Tel
: (665) 3262 980
Fax
: (665) 3262 981
Email
: sales@horeca.co.th
Website
: www.horecasupply.com
133
Horeca Supply (Thailand) Co Ltd is a wholesaler and distributor of imported food products, The company carries brands such as Divella,
Acqua Panna, and Magnolia. It also supplies hotels and restaurants in Thailand.
Winner Group Enterprise Ltd

Address
: Thai CC Tower 21 Floor 215-219 Room 889 south Sathorn Road Yannawa Sathorn 10120, Bangkok
Tel
: (662) 2675 6525
Fax
: (662) 2675 6533
Email
: winner@winnergroup.co.th
Website
: www.winnergroup.co.th
Winner Group Enterprise Ltd is an importer and distributor for raw materials, food additives, food ingredients, and processed food products in Thailand. The company is a distributor for various companies such as Australia, United States, and Europe. It carries brands such
as Betty Crocker, Harvey Fresh Juice, and Leggos Pasta Sauce.
DKSH (Thailand) Ltd

Address
: 2535 Sukhumvit Road Bangchak Praskhanong 10260, Bangkok
Tel
: (662) 790 8000
Fax
: (662) 332 6101
Website
: www.dksh.co.th
DKSH (Thailand) Ltd offers companies a range of services that include sourcing, marketing, distribution, sales, logistics, and after-sales
services within the processed food industry. The company also serves multinational and local companies within Thailand.

CN Technology Co Ltd
Address
: 745 Soi Udomsuk Sukhumwit 103 Road Bangchak Prakanong 10260, Bangkok
Tel
: (662) 746 5944
Fax
: (662) 361 3356
Email
: cntech@cntechnology.co.th
Website
: www.cntechnology.co.th
CN Technology Co Ltd is an importer of food processing and packaging machinery and equipment. The company is a distributor for various food processing machinery manufacturers from countries such as Germany, Italy, and Japan. The company also distributes machinery for meat, bakery, and ingredient products, among others.
134
Patkol Public Co Ltd
Address
: 348 Chalerm Prakiat Road Nongbon Pravate 10250, Bangkok
Tel
: (662) 328 1035
Fax
: (662) 328 1245
Email
: sureerats@patkol.com
Website
: www.patkol.com
Patkol Public Co Ltd is a major supplier of food processing machinery and equipment in Thailand. The company provides turnkey solutions and customised equipment for companies within the food industry. The company also produces dairy, beverage, and food packaging
machinery and equipment.
Food Equipment Co Ltd
Address
: 208 Soi Charansanitwong 44 Charansanitwong Rd. Bangyeekun Bangplad Bangkok 10700
Tel
: (662) 433 1440
Fax
: (662) 883 3136
Email
: info@foodequipment.co.th
Website
: www.foodequipment.co.th
Food Equipment Co Ltd is an importer and distributor for food processing machinery and equipment in Thailand. The company carries a
wide range of products including meat processing, seafood processing, and bakery processing machinery and equipment. The company
also serves major retailers such as Big C and Carrefour.
Food Machinery Co Ltd
Address
: 607/50 Karnjanavanich Rd Banpru Hatyai Songkhla 90250
Tel
: (667) 455 3171
Fax
: (667) 455 3170
Email
: foodmachinerys@gmail.com
Website
: www.foodmachinerys.com
Food Machinery Co Ltd is one of the major manufacturers of food processing machinery and equipment in Thailand. The company carries
products such as retort machinery, washer machines, and cooker machines.
Emura (Thailand) Co Ltd
Address
: 845 Moo 15 Thumbon Bangsaothong Amphur Bangsao thong Samutprakarn, 10540
Tel
: (662) 317 6145
Fax
: (662) 317 6148
Email
: office@emura.co.th
Website
: www.emura.co.th
135
Emura (Thailand) Co Ltd is a major manufacturer of food processing machinery and equipment. The companys products include food
slicer and dicer machines, washer machines, and other machinery used within the food industry.

6.4.1 Opportunities in Overall Market in Thailand
Thailand depends on food imports for specific products that are not available in the country. Apart from that, the country is a large food
exporter, signifying the country as a potential destination for food processing activities. In 2011, the countrys food industry suffered massive loss due to one of the worst floods within the country. Many of the food processing facilities were forced to stop production due to
damages and lack of raw materials. However, in first quarter of 2012, Thailand saw its food exports increase by an estimated 5.3% on a
year-on-year growth52, signifying potential opportunities to follow. Presented below are the key opportunities identified for Thailand.
1.
Government Economic Plans Following the flood issues in Thailand, The government intends to stimulate confidence among
investors in 2012 by looking into further economic stimulus policies and by having various promotional activities targeted towards foreign investors being planned 53. Infrastructure projects will also be implemented to restore the confidence of business
operators and foreign investors in the country54.
2.
11th National Economic and Social Development Plan Thailand is looking into strengthening its logistics network and to promote investment opportunities in order to increase Thailands competitiveness level. In addition, these initiatives will attract foreign investors into the country and provide ease of doing businesses for these companies.
3.
Thailands Master Plan for Food Industry The Ministry of Industry is also boosting the countrys food industry under the Master
Plan for the Food Industry (2010-2014). The Master Plan for the Food Industry (2010-2014) focuses on enhancing the competitiveness of Thailands food export products and boosting the quality and safety of Thailands food products. The government is
looking to increase the value of Thailands food exports by 10.0% annually. Detailed information of the Plan can be obtained at
http://www.oie.go.th/policy7/Mplan/food/executive_eng.pdf.
4.
Top Food Exporter Thailand aims to become the worlds top five food exporters by the year 2020. The Food Processing Industry Club aims to do so by first enabling the country to become the export centre of Southeast Asias food processing sector.
More
information
the
Thailands
Food
Processing
Industry
Club
can
be
obtained
from
http://www.fti.or.th/FTI%20Project/GroupCallEng.aspx.
5.
ASEAN FTAs to Boost Processed Food Sector Thailands processed food sector will be boosted by the gradual expansion of
processed food markets and the ASEAN FTAs. This represents boundless opportunities for the food exporting country, as lower
raw material costs prices will drive activity within the processed food sector. More foreign companies are expected to take ad-
52
53
54
National News Bureau of Thailand, http://thainews.prd.go.th/en/news.php?id=255505170005

The Government Public Relations Department, http://thailand.prd.go.th/view_inside.php?id=6071
136
vantage of Thailands advanced food processing sector, for the production of food products for both domestic consumption and
export.
6.
Rich Abundance of Natural Food Supply Thailand has a rich abundance of natural food supplies. Its supply of food resources
will also benefit the food processing industry, as foreign companies will have no problem accessing raw materials required.
7.
Demand for Food Processing Machinery and Equipment With over 10,000 food processing companies, there is a healthy demand for food processing machinery and equipment in Thailand. Local food manufacturers are familiar with technology-driven
equipment, and are willing to make improvements to their processing equipment, so as to maintain competiveness within the industry. The high demand for domestic and global food products will continue to drive opportunities for the food processing machinery and equipment sector within the processed food industry.
8.
Dependent on Imported Food Processing Machinery and Equipment Most of the equipment used within the local food industry
is imported from other countries, presenting opportunities for foreign companies. Thailand still imports large amounts of machines for filling, closing, sealing and labelling bottles, and for preparing and wrapping meat55. In addition, due to the fragmented
processed food industry, turnkey solutions opportunities exist for companies that supply food processing machinery and equipment.
9.
Tourism Industry Tourism is a major driver of Thailands economy. From January to November 2011, Thailand saw a total
number of 17.1 million tourist arrivals, an increase of 21.1% from the same period in 2010 56. In addition, growth in the number of
hospitality facilities such as hotels and resorts will also lead to greater demand for processed food products.
10. Affluent Consumers in Urban Areas - The affluent population in urban areas is more brand and quality conscious. As such, they
are more likely to shop in modern retail formats such as supermarkets, and are more likely to indulge in gourmet food products.
Swiss companies may target this segment of the population by introducing fine quality food products.
11. Changing Lifestyles and Demographics Changing lifestyles such as the increasing number of women in the workforce, growing middle income class, and the growing acceptance of foreign products from the younger consumers will drive the demand for
imported processed food products. Growth potential in food products such as canned foods, convenience foods, and snack
foods can be expected to increase.
12. Demand for Health Food Under the Master Plan for the Food Industry (2010-2014), the government is placing greater emphasis on health foods. In addition to the health-conscious trend, the demand for health food will be increasing over the next few
years. More research work on food nutritional value will be undertaken, and campaigns will be launched to promote Thai food as
healthy food57. The health food market is expected to grow by at least 6.0% for packaged food products by 2014 58.
13. Well-developed Processed Food Sector The well-developed food processing sector in Thailand provides foreign companies
opportunities to set up their facilities within the country. This attribute has also enabled the country to be a major export er of
55
Board of Investment, http://www.boi.go.th/tir/issue/201101_21_1/42.htm

Department of Tourism, http://tourism.go.th/2010/en/statistic/tourism.php
57
58
The Board of Investment of Thailand, http://www.boi.go.th/index.php?page=opp_food
56
137
processed food products. With modern technology and quality standards in food production, Swiss companies can benefit from
leveraging on the countrys food processing sector.
14. Thailand as a Halal Centre According to the Board of Investment of Thailand, the country is ranked first for Halal food exports
in the ASEAN region. The country also has a considerable number of people who consume Halal food products 59. In addition,
Thailand has signed a memorandum of understanding on trade and investment cooperation in Halal products with both Bahrain
and Qatar in May 201260. Hence, the country will be able to continue and expand its processed Halal food products into potential markets such as Singapore, Indonesia, and the Middle East.
15. Events within the Processed Food Industry The country will be hosting Food & Hotel Thailand 2012 from 5 to 8 of September.
This event will feature trade professionals such as suppliers of food processing machinery and equipment. In addition, there are
many other events such as the Thailand Industrial Fair & Food Pack Asia 2013, which Swiss companies may be keen to participate in.
16. Functional Food Products Functional food products are becoming more popular especially with consumers who are health
conscious. Companies such as Inthaco Co Ltd and Specialty Natural Product Co Ltd focus on the benefits of functional ingredients. As such, Swiss companies may wish to sell functional ingredients to food processors in the country.

In 2011, Thailand imported a total of 7,946 tons of cheese products, worth approximately USD42.7 million. In the same year, the country
exported only 154 tons of cheese, with an approximate value of USD0.9 million. From the figures, the import value and volume of cheese
products have shown a general increasing trend from 2007 to 2011.
Figure 66: Trade Statistics (2007- 2011) for Cheese Products in Thailand
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
20,108
4,846
480
142
2008
25,922
4,271
829
123
2009
24,517
5,075
737
103
2010
33,510
6,343
544
76
2011
42,670
7,946
899
154
The top exporting countries for Thailand include Australia and New Zealand. Major brand names within the country include Kraft, Lactalis,
Groupe, and Premier Dairy Foods. Demand for cheese products is expected to increase in the country, as consumers continue to be
59
60
The Halal Standard Institute of Thailand, http://www.halal.or.th/en/main/content.php?page=sub&category=6&id=133

The Government Public Relations Department, http://thailand.prd.go.th/view_news.php?id=6298&a=2
138
influenced by the western food culture such as fast foods products. Cheese products are also becoming increasingly popular with the
growing middle and upper income population in the country. In addition, demand for cheese products also increases with the gr owing
number of tourists and expatriates in the country. Companies looking to enter the cheese market in Thailand can explore the markets
needs, and to promote cheese products as health foods, as Thailands population is becoming increasingly health-conscious. Swissmooh
is one of the recent Swiss entrants to the Thai market.

In 2011, Thailand imported a total of 45,578 tons of coffee products, valued at approximately USD163.8 million. In the same year, the
country exported 42,869 tons of coffee products, worth an approximate value of USD160.0 million.
Figure 67: Trade Statistics (2007- 2011) for Coffee Products in Thailand
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
39,239
11,351
72,291
37,099
2008
71,842
21,920
84,059
29,202
2009
45,103
12,846
114,348
36,672
2010
72,860
22,480
146,968
45,392
2011
163,779
45,578
160,020
42,869
The top exporting countries for coffee products into Thailand include Malaysia and Vietnam. Major brand names within the country also
include Nestl Thailand and Super Coffeemix. Statistics have shown that Thailand imported more coffee products in 2011 as compared to
2010. As imported coffee products are usually found in western cafes, restaurants, and coffee places such as Starbucks, an increase in
the number of tourists and expatriates within the country has also contributed to the higher demand for coffee products. In addition, the
populations income growths within urban areas are likely to create demand for more coffee products. Chicco dOro is one of the recent
Swiss entrants to the Thai market.

In 2011, Thailand imported 27,592 tons of candy and chocolate products that were worth approximately USD145.0 million. The country
exported approximately 56,614 tons of candy and chocolate products worth an estimated USD183.8 million. Import statistics below have
reflected an increasing trend for confectionery products into Thailand, and given the populations large consumption of sweet products,
this trend can be expected to continue for the next few years.
139
Figure 68: Trade Statistics (2007-2011) for Confectionery Products in Thailand

Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
66,291
15,902
89,250
35,169
2008
91,048
19,088
135,689
44,701
2009
95,265
20,259
139,860
42,209
2010
111,291
23,277
164,782
45,460
2011
144,974
27.592
183,836
56,614
The top exporting countries for these products include Malaysia, Vietnam and Indonesia. Popular brands for candy and chocolate products in Thailand include Mentos, Heartbeat, Nestl, and Meiji. International brands of chocolate confectionery continue to be popular
within the population. Affordable prices of these products have also driven the demand for chocolate confectionery products. As the population continues to be more exposed to the Western chocolate culture, a wider variety of products will be necessary in order to attract
consumers as well. Increasing expenditure within urban areas is also more likely to create demand for mid-priced to higher-priced chocolate confectionery such as Royce Chocolate.
In addition, sugar confectionery such as mints and sugar-free products are gaining in popularity, as consumers become more health
conscious. Companies looking to enter the sugar confectionery market should take note of the health and wellness trend within the population.
Overall, Thai consumers have a liking for sweet foods; candy and chocolate products are, therefore, popular with the consumers. In view
of this, the demand for confectionery products can be expected to remain or grow in the next few years.

The population is made up of consumers that are large eaters of meat products such as pork and chicken. However, large amounts of
meat products imported into the country are fresh meat and poultry products. According to trade statistics, Thailand exported significant
amounts of processed meat products. In 2011, Thailand imported only 5,438 tons of processed meat products, worth approximately
USD13.7 million in value. In the same year, the country exported 464,585 tons of processed meat products, worth USD2.2 billion.
Throughout 2007 to 2011, export statistics have reflected a significant higher value as compared to import statistics for processed meat
products.
140
Figure 69: Trade Statistics (2007- 2011) for Processed Meat Products in Thailand
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
3,892
535
1,195,576
338,372
2008
5,842
964
1,806,647
412,136
2009
5,395
1,359
1,671,526
404,166
2010
7,371
3,749
1,866,957
445,627
2011
13,714
5,438
2,183,757
464,585
The larger exporters for processed meat products into Thailand include Italy and India. As meat products are a staple diet of the population, it is expected that demand for these products will reflect a gradual growth over the next few years. Swiss companies may target to
offer Thailand different varieties of processed meat products, including different flavors and packaging sizes.

In 2011, Thailand imported 1,728 units of coffee pulpers and other machinery for preparation of beverages, which were worth approximately USD86.3 million. In the same year, the country exported 418 units of coffee pulpers and other machinery for preparation of beverages, worth an estimated USD14.7 million. Throughout 2007 to 2011, import value statistics have reflected a significant higher value as
compared to the respective export values.
Figure 70: Trade Statistics (2007-2011) for Coffee Pulpers and Other Beverages Machinery in Thailand
Import Value
Year
Export Value
Import Volume
(US Dollar
Thousand)
Export Volume
(US Dollar
(Tons)
(Tons)
Thousand)
2007
40,753
1,731 (tons)
12,974
555 (tons)
2008
30,606
867
(tons)
11,312
338 (tons)
2009
29,563
714
(tons)
7,237
204 (tons)
2010
42,727
1,222 (tons)
8,230
234 (tons)
2011
86,295
1,728 (units)
14,719
418 (units)
The larger exporters for coffee pulpers and other machinery for preparation of beverages into Thailand include Japan, Australia, and the
PRC. In 2011, Switzerland contributed only 0.4% to the import value of these machinery and equipment into Thailand. Hence, Swiss
companies can explore further opportunities within this sector.
141
6.4.7 Opportunities for Paper, Cartons, and etc Machines

In 2011, Thailand imported 18,037 units of machines for making paper, cartons, boxes, cases, tubes, drums, etc (excluding mol ding machines), which were worth approximately USD16.7 million. In the same year, the country exported only eight units of these machinery and
equipment, worth an estimated USD0.1 million. Throughout 2007 to 2011, import value statistics have reflected a significant higher value
as compared to the respective export values.
Figure 71: Trade Statistics (2007-2011) for Paper, Cartons, and etc Machines in Thailand
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
7,011
505
(tons)
3,789
149 (tons)
2008
8,665
534
(tons)
263
(tons)
2009
4,339
174
(tons)
454
22
(tons)
2010
10,838
393
(tons)
20
(tons)
2011
16,723
18,037 (units)
134
(units)
The larger exporters for machines for making paper, cartons, boxes, cases, tubes, drums, etc (excluding molding machines) into Thailand
include the PRC and Switzerland. In 2011, Switzerland contributed an estimated 27.4% of the total import value into Thailand. The statistics revealed that there is a large demand for such machinery and equipment in Thailand, indicating more opportunities for Swiss companies within this sector.

Swiss companies looking to enter Thailands food industry should take note of the countrys culture and buying habits. One of the ways to
enter the market is through the point of differentiation, as Swiss products are innovative and of high quality. Another point to note is that
consumers are very price-conscious, and therefore, products must be competitively priced.
Business activities can be operated under various forms of business entities, such as Partnerships and Limited Companies. It is required
for foreign companies to register their businesses with the Department of Business Development. More information on Thailands business entities can be found at the Appendix section of the report.
142
6.5.1 Sales Channels

The easiest mode of entry into the country is for Swiss companies to sell directly to supermarkets and hypermarkets. These avenues offer
companies higher exposure levels for their products. Companies can also contemplate entering the convenience stores and kiosks retail
segment in the country.

Another easy way of entry for foreign companies into the unfamiliar Thai market is through the use of local agents and distributors. Local
agents and distributors usually hold a good grasp of the local food market, and will be able to provide valuable support for foreign companies. Companies can also appoint agents in Thailand to promote and sell the companys products. Note that building good interpersonal
relationships with agents and distributors is one of the vital factors for business success in Thailand.
6.5.3 Indirect Entry

In view of lowering business risks, companies can opt to sell directly to intermediaries, who would then export and sell the products in
Thailand.

A joint venture is also an alternative form of market entry strategy into Thailand. In addition, local firms are constantly seeking foreign
investments and partners who are able to provide technology improvements and capital into their businesses. It is important to select
joint venture partners carefully, while considering compatibility of corporate vision, financial strength and methods of communication. Joint
venture businesses can be established with the local family-owned enterprises, the Crown Property Bureau, or a local commercial bank.
More information can be found on http://www.mfa.go.th/internet/attachments/103.pdf.
6.5.5 Licensing
Companies can also opt for another low-risk mode of entry by granting a food manufacturing license to Thailands food manufacturers to
produce the Swiss business products in Thailand. Companies will also stand to benefit from royalty fees from the local firm.
143

Regulatory guidelines for Thailands food industry are governed by the Food Act of B.E. 2522 (1979). In addition, the Ministry of Public
Health and the FDA are regulatory bodies for the countrys food industry. While the Ministry of Public Health executes the Food Act of B.E.
2522 (1979), FDAs duties include food control operations and food analysis, licensing of local food manufacturing enterprises, and importation of food products.
The Halal Standard Institute of Thailand is responsible for ensuring the development and certification of Halal food products within the
country. Companies looking to import Halal food products are recommended to visit the official website of The Halal Standard Institute of
Thailand located at www.halal.or.th.
6.6.1 Import Requirements in Thailand

All businesses that are manufacturing or importing food products for sale must be licensed by the FDA. According to the Food Act, food
products are classified into three main categories:
1.
Specifically Controlled Foods Registration is required for foods in this category. Legal provisions are related to food standard
quality, specifications, packaging, labeling requirements, and other aspects of good manufacturing practices. The Food Committee may make recommendations to the Minister of Public Health specifying specially controlled foods.
2.
Standardised Foods Registration is not required, however, quality and labelling requirements are mandatory.
3.
Other Foods - Foods, raw or cooked, preserved or non-preserved, processed or non-processed will be considered as general
foods. Although registrations are not required, general food products are controlled and monitored with regard to hygiene, safety, and labelling and advertisement requirements.
The control measures for food product categories are different. It is necessary for companies to ensure that their food products have met
all the requirements before importation. Product Registration is only required for specifically-controlled food products. The Food and Drug
Administration website provides details of the relevant laws and importation process: www.fda.moph.go.th/eng/index.stm.
The FDA controls the production and importation of food products. Certain tariff quotas for agricultural products such as potatoes, onions,
and milk products have also been implemented within the country. 61 For further information on Thailands tariff quotas, please refer to
http://www.thaifta.com/ThaiFTA/. Additionally, the country also prohibits some food products to be imported or sold in the country. A detailed list of such information can be found at, http://www.fda.moph.go.th/eng/eng_food/notificationmoph.htm.
61
Department of Trade Negotiations, http://www.thaifta.com/english/eng_nz.html
144
6.6.2 Import of Animal and Animal Products

The Department of Livestock Development (http://www.dld.go.th) and the Ministry of Agriculture and Cooperatives (http://eng.moac.go.th/)
directly monitor the imports of meat products. Only accredited establishments by the agencies are permitted to import meat products into
the country. In addition, a Health Certificate is required for the import of all meat products.
6.6.3 Import of Specific Products

Thailands tax system can be quite complex and this has raised concerns among foreign businesses. Some products to Thailand are
subject to high taxes. For example, products such as beer, wine and distilled spirits are subject to high excise taxes. After taking into
account import duties, excises taxes and other surcharges, the tax burden may reach as high as 400.0%, It is, thus, important for Swiss
companies
to
check
with
customs,
among
others,
before
entering
the
Thai
market.
Please
refer
to
http://www.customs.go.th/wps/wcm/connect/custen/home/homewelcome.

The Notifications of the Ministry of Public Health No.194 (B.E.2544) regulates the general food labelling requirements in Thailand. All
labels on food products for sale in the country must be in Thai. The following information on labels is mandatory:
1.
Name of food.
2.
Food Serial/Registration number.
3.
Name and address of manufacturer.
4.
Net content of food (in metric system).
5.
List of main ingredients listed as a percentage of the total, in descending order.
6.
List of additives used (if any).
7.
Date of manufacturing and expiry.
8.
Storage and preparation instructions (if any).
9.
Health and nutritional claims (if any).
In addition, other labelling requirements for infant milk products, nutrition labelling, health claims, and others are necessary for specific
food products. More information can be obtained through http://www.fda.moph.go.th.

Companies looking to import food processing machinery and equipment into Thailand are subjected to customs duties/ tax imports. For
detailed information on the ad valorem rates on food processing machinery and equipment, please refer to the link
http://igtf.customs.go.th/igtf/findTaffDuty.do?param=main&contCode=c84&contGrupCode=MM50%20&lang=e. Companies are also advised to contact the Customs Department (http://www.customs.go.th/wps/wcm/connect/custen/home/homewelcome) for further information on the import of food processing machinery and equipment.
145
7. VIETNAM
7.1 Overview of the Processed Food and Food Processing Machinery
and Equipment Sectors in Vietnam
7.1.1 Brief Overview of Vietnams Economy and Key Statistics
Figure 72: Vietnams Economy and Statistics
Population
Capital
Hanoi
Area
331,051 sq km (as at 2010)
GDP
USD101.6 billion1 (2010 preliminary)
GDP per capita
USD 1,169 (2010 preliminary)
GDP growth rate
6.3% (2012 est)
Exchange Rates (as at 30 December
Sources
2010)
VND19,500 = USD1.00
http://www.vietcombank.com.vn/en/_ScriptLib/ExRate_Brn.asp
Exchange Rate (as at 30 December 2011)

VND21,036 = USD1.00
VND22,780 = CHF1.00
USD1.00 = CHF0.9316
Source: General Statistics Office of Vietnam, Asian Development Bank
Vietnam is bordered by the Gulf of Thailand, Gulf of Tonkin, and the South China Sea, alongside Laos, the PRC, and Cambodia. In 2010,
Vietnam recorded GDP from USD101.6 billion. In 2010, the country also posted a GDP per capita of USD1,169. The countrys GDP forecast for 2012 is predicted at 6.3% by the Asian Development Bank.
The country recorded a population growth of 1.0% in 2011. The population in Vietnam is made up of 54 diverse ethnic groups, with the
Kinh ethnic group comprising more than 85.0% of the population 62.
Vietnam is one of the worlds largest rice and coffee exporters. Major industries within the country include agriculture, textiles, and the oil
& gas industry. The countrys agriculture sector drives the domestic food processing activities by ensuring a steady flow of raw food materials. Most of the countrys food processing operations are also focused on products such as fishery, seafood, and dairy processing.
62
General Statistics Office of Vietnam, http://www.gso.gov.vn/default_en.aspx?tabid=599&ItemID=9788
146
Sectors in Vietnam
The food sector contributes an important role to Vietnams GDP, and has been attracting an increasing number of foreign investments into
the country. A large portion of the countrys food manufacturing operations are focused on products such as dairy products, seafood, beer
processing, and snack foods. Besides being self-sufficient in certain agricultural products, the country also depends on imports for other
food products, including raw materials and food ingredients.
Domestic agricultural production in the country plays an important role to the food processing sector by providing the input materials
required for food processing activities. For instance, the rise in fishery production has driven the fish processing sector, and has allowed
Vietnam to become a major export of processed fish products such as Tuna and Tra Fish. Besides, Vietnam is a key supplier of agricultural products such as rice, pepper, coffee, and other agricultural commodities.
Food Manufacturers
The food processing sector in Vietnam is fairly fragmented, as it is dominated by a large number of small and medium domestic companies in a few sectors such as dairy, confectionery, and fishery products. However, awareness of Vietnamese brands isgrowing due to the
increasing of dominant players. Foreign players are also eying local players. For example, Japans Nichirei Foods, a subsidiary of Nichirei
Group, acquired a 19.0% stake in Cholimex Food JSC, one of Vietnams biggest provider of spices and exporter of frozen food to Europe.63

Supply of food processing machinery and equipment is a growing sector in Vietnam due to the expansion and importance of the processed food sector in the country. Many foreign suppliers/ manufacturers have been eying this market and have made their foray into the
country. Likewise, the number of local suppliers catering to the local needs has increased. However, in terms of higher technology machinery and equipment, supplies are still dominated by foreign suppliers. While the scene is changing, local players tend to focus more on
simpler agriculture processing equipment.

Major food retailers and other food importers are responsible for the import and distribution of food products in Vietnam. Traditional store
formats currently still dominate the food retail sector, especially in less urban areas, resulting in the unavailability of processed food products. Bigger players usually import larger volumes of foreign products from other countries, while smaller importers import cheaper products from the neighbouring countries. Some of the food importers also hold exclusive distributorships for certain brands of food products.
63
15 March, Vietnam News Brief Service, Japans Nichirei Foods Invest $6.25M in Vietnam Food Producer
147

In 2011, Vietnam imported approximately USD2.8 billion worth of processed food products. In the same year, the country exported an
approximate amount of USD4.4 billion of processed food products. The trade statistics show that Vietnam imported the largest amount
of beverages, spirits and vinegar in 2011. The country exported the highest value of coffee, tea and mate, reinforcing the fact that Vietnam
is a major exporter of coffee products.
HS Code
Imports
Exports
0210
4,034
21
0305
Processed fish
10,515
21,531
0401-0406
Dairy Produce
538,474
2940
0901-0903
Coffee, tea & mate
16,177
2,660,870
1601-1605
166,927
1,036,280
1701-1704
411,301
79,868
1801-1806
30,099
8,272
1901-1905
321,678
178,699
2001-2009
69,230
121,812
2101-2106
390,023
120,772
2201-2209
848,472
133,295
2,806,930
4,364,360
Total
Note:
Vietnam trade statistics are mirror data obtained from other countries.
In terms of volume in tons, Vietnam imported 1.2 million tons, and exported 1.7 million tons of processed food products. According to
trade statistics, Vietnam exports more amounts of food products than it imports. The country has one of the more active food processing
industries within the ASEAN region. In terms of volume, Vietnam imported the largest value of sugar & sugar preparations, and exported
the largest amount of coffee, tea & mate products in 2011.
HS Code
Imports
Exports
0210
1,487
0305
Processed fish
6,932
6,487
0401-0406
Dairy Produce
175,188
1,999
0901-0903
Coffee, tea & mate
4,245
1,119,470
1601-1605
24,350
156,511
148
HS Code
Imports
Exports
1701-1704
726,073
1801-1806
7,260
3,208
1901-1905
67,662
84,356
2001-2009
36,902
74,934
2101-2106
74,964
74,050
2201-2209
93,574
114,722
1,218,637
1,695,342
Total
59,604
Note:
Vietnam trade statistics are mirror data obtained from other countries.

1.
Food Processing Sector Continues to Develop As one of the main industries in Vietnam, the food processing sector continues to
develop, as domestic companies begin using imported food technologies and equipment from other countries. For instance, the milk
processing industry has diversified in terms of product offerings, and local companies have leveraged on the technologies and
equipment from counties such as New Zealand and France. In addition, the annual International Food Processing Machinery Exposition held in Vietnam helps the local companies in gaining exposure to the latest food technologies and equipment. The event is also
supported by the Ministry of Industry and Trade. More information on the event can be obtained from www.foodtexvietnam.com.
2.
Sophistication in Consumers Taste Preference Income growth and the emergence of the middle class group in Vietnam have
driven the demand for food products in Vietnam. Consumers consumption patterns are also shifting away from staple diets towards
meat, vegetable, and dairy products. In addition, increasing exposure to Western cultures has resulted in the sophistication of consumers taste preferences.
3.
Demand for Convenience Foods - Lifestyle and demographic changes have brought about the demand for convenience foods.
Ready-to-eat products are becoming more popular, as the number of young adults and women joining the workforce increases. Besides, pre-packaged food and canned food offer consumers cheaper alternatives to fresh foods.
4.
Growing Preference for Processed Food Consumers in Vietnam are experiencing growing awareness of hygiene and food safety
concerns. As such, processed food products are often preferred over fresh food products. In addition, processed food products are
also cheaper alternatives for the mass population.
5.
Promotion of Vietnamese Food Products The local government has been promoting the awareness of Vietnamese food products
across rural areas since 2009. The rural population makes up a significant percentage of the countrys population, which signifies a
149
huge market potential. The need for creating consumer awareness of local products is useful in helping Vietnamese food products
increase its international competitiveness in the ASEAN region.
6.
Poor Infrastructure and Logistics Network Doing business in Vietnam can be difficult, due to the countrys poor infrastructure network. Although this is not a major issue in urban cities, majority of the rural areas are lacking in infrastructure networks. In addition,
the food processing industry has not been able to expand as rapidly due to the lack of refrigeration and cold chain logistics . This has
prevented food manufacturers from developing new products.
7.
Lack of Capital and Quality Raw Materials The food processing sector is also in need of capital financing, for companies to expand
production facilities and to modernise food equipment and technologies. Besides, there is also a lack of quality raw materials for food
processing. Strengthening the countrys food technologies and know-how is necessary for the sector to grow.
8.
Rising Food Input Costs The rising food input costs in recent years have also led to the decrease in number of food processing
companies. Most of the smaller processing companies are unable to deal with the rising costs of raw materials; hence, they are
forced to close down their operations.

There are currently more than 5,900 industry players in the local processed food sector. Within the food retailing scene, there are also
more than 9,000 traditional and modern food retail outlets across Vietnam The suppliers for food processing machinery and equipment
include local manufacturers specialising in various types of machinery, as well as distributors and trading companies that import machinery from other countries. Statistics indicating the number of suppliers providing the food processing machinery and equipment are not
publicly available.

Food Manufacturers
There are more than 5,900 food processing companies in Vietnam 64, most of which are made up of small and medium enterprises and
cottage industries. Large global companies, such as Nestl and The Coca-Cola Company, also have presence in the country. Although
the food processing sector comprises a wide range of food processing activities, the sector is divided into two main sub sectors: seafood
64
Dong Nai Industry and Trade,

http://www.doit-dongnai.gov.vn/Home/tabid/36/isd_news_news/9194/language/en-US/Default.aspx
150
processing, and beer brewing65. Most of the industry players are smaller domestic companies, with the inclusion of larger global companies that are usually involve in export activities. Some of the food manufacturers in Vietnam are members of the Vietnam Food Association. For members listing, please refer to the website www.vietfood.org.vn.

Local importers still continue to play a major role in the introduction, distribution, and promotion of imported food products in Vietnam.
Large industry players, who are also food retailers, include well-known names such as Saigon Union of Trading Co-operatives (Co.op
Mart) and Big C Vietnam. These food retailers operate a large number of supermarkets and other modern retail outlets in the country. In
addition, major food importers such as Nam Phuong Co Ltd and Huong Thuy Manufacture Service Trading Corporation import large
amounts of processed food products from other countries.
Product listing fees vary from VND2 million to VND3 million per product at supermarkets chains. This cost normally includes assigning of
a new supplier code and the replacement of old products with newer variants upon launch. Most supermarkets sign one year supply
contracts, with a few exceptions. Termination usually requires a months written notice. Several supermarkets demand distributors to
provide additional discount budgets on top of the standard margins. For example, Big C deducts an additional 4% as a discount budget
every quarter.66

Suppliers of processed food machinery and equipment have grown in importance in Vietnam, in tandem with the development of the
countrys processed food sector. This sector is still dominated by foreign players which supply machinery and equipment of higher technology. While suppliers from Europe and the United States are still well-regarded for the quality of their equipment, cheaper alternatives
from countries such as the PRC and Taiwan are gaining foothold in Vietnam. The number of local players is also increasing.
7.3.3 Sources of Imports to Vietnam

The top exporting countries of processed food products to Vietnam include countries such as Malaysia, the PRC, and the United States.
Top exporting countries for specific food products also include Thailand (sugar and sugar preparations), France (beverages), and New
Zealand (dairy produce). The figure below shows the top five importing countries for each product category. Note that the list below is not
exhaustive.
65
Vietnam Trade Promotion Agency, http://www.vietrade.gov.vn/en/index.php?option=com_content&view=article&id=1055:investmentopportunities-in-foodstuff-and-beverage-industry&catid=272:investment-opportunities&Itemid=250

66
http://www.iesingapore.gov.sg/wps/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDf4PQMFMD_1A3g2BDI0MPVx8DKADKR5rFO7s7epiYgwQt
LN0MPL0dHY39XY2N_F0NidFtYGHk6xvoFjhaBDq4eLnbGoMl8ev288jPzdVvyA3NKLcUVERAEm5Kx4!/dl3/d3/L2dJQSEvUUt3QS9ZQnZ3LzZfMDgyTU1RTlFIQTBVSEROQzJGMTAwMDAwMDA!/?
WCM_GLOBAL_CONTEXT=/wps/wcm/connect/ie/My+Portal/Market+Guide/Market+Information/South+East+Asia/Vietnam/News/Vietnams+FMCG+market
+and+distribution+channels
151
Figure 75: Top Exporting Countries of Processed Foods to Vietnam

HS Code
0210
Top Five Countries

Canada, Italy, Malaysia, United Kingdom, United
States
0305
Processed fish
Denmark, Indonesia, Thailand, Uganda, United

States
0401-0406
Dairy Produce
Australia, Netherlands, New Zealand, Poland, United

States
0901-0903
Coffee, tea & mate
Cote D'Ivoire, Indonesia, PRC, Sri Lanka, Uganda
1601-1605
Japan, PRC, Taiwan, Thailand, United States
1701-1704
Indonesia, Malaysia, Philippines, PRC, Thailand
1801-1806
Malaysia, Netherlands, Singapore, Thailand, United

States
1901-1905
Indonesia, Malaysia, Republic of Korea, Singapore,
2001-2009
Malaysia, PRC, Philippines, Thailand, United States
2101-2106
Indonesia, Netherlands, PRC, Thailand, United
Thailand
States
2201-2209
Malaysia, Netherlands, Singapore, Taiwan, Thailand
Note:
Vietnam trade statistics are as at 2009.
Foreign Countries
According to Figure 75 above, it is evident that Switzerland is not a major exporter of processed food products into Vietnam. The figure
below shows a breakdown of the value of processed food products exported by Switzerland. In the same figure, the value of respective
products by the largest exporting country is also presented for comparison purposes. In 2011, Switzerland exported a total of USD9.1
million worth of processed food products into Vietnam.
152
Figure 76: Comparison of Switzerland Export Value of Food Products to Vietnam (US Dollar Thousand)
Value of
HS Code
Largest
Food and Beverages
Imports
Classification
from Switzerland
Vietnam
Value (by Largest

Exporting Country)
0210
United States
2,790
0305
Processed fish
Uganda
3,045
0401-0406
Dairy Produce
800
0901-0903
Coffee, tea & mate
1601-1605
1701-1704
and seafood
83
Cocoa & cocoa
1801-1806
preparations
701
1901-1905
Products
658
2001-2009
fruits and nuts
72
2101-2106
preparations
6054
2201-2209
vinegar
Total
769
New Zealand
Indonesia
PRC
Thailand
Malaysia
Netherlands
United States
Thailand
France
175,725
5,719
115,744
190,620
7,636
89,349
24,394
76,183
295,021
9,137
The figure above reflects Switzerland as a small exporter of processed food products into Vietnam. Although this presents opportunities
for companies to enter the Vietnam market, it is vital for companies to conduct sufficient research on the demand of the resp ective food
products before entry.
7.3.5 Sources of Food Processing Machinery and Equipment Imports to Vietnam

Countries including Germany, Italy, the PRC, and the United States are among the top exporters of food processing machinery and
equipment into Vietnam. The figure below shows the top five importing countries for each product category. Note that the list below is not
exhaustive.
153
Figure 77: Top Exporting Countries of Food Processing Machinery & Equipment to Vietnam
HS Code
Top Five Countries
841981
Australia. Germany, the PRC, Sweden, United
States
Germany, the PRC, Republic of Korea, Sweden,
bottles & the like
United States
Machines for filling closing sealing capsuling
842220
842230
labeling bottles cans boxes bags etc beverages aerators

842240
Other packing or wrapping machines
843420
Dairy machinery
Denmark, Italy, Netherlands, Portugal, Sweden
843490
Denmark, France, Italy, the PRC, United States
843510
Italy, the PRC, Taiwan, Thailand, United States
wine cider fruit juices or similar beverages

843590
Italy, Japan, the PRC, Taiwan, United States
electrically-operated for making wine cider

fruit juices & similar beverages
843810
Bakery machines
France, Italy, Japan, the PRC, Taiwan
843820
Germany, Republic of Korea, the PRC, Switzer-
843830
Belgium, the PRC, Thailand, Turkey, United King-
land, Thailand
dom
843840
Brewery machines
Austria, Belgium, Germany, the PRC, United Kingdom
843850
Austria, Denmark, Germany, Netherlands, the
poultry
PRC, United States
Malaysia, the PRC, Sri Lanka, Taiwan, United
States
Germany, Netherlands, the PRC, Switzerland,
United States
Parts for machinery for the industrial preparations/
France, Netherlands, Philippines, the PRC, Swit-
zerland
Italy, Japan, the PRC, Republic of Korea, Taiwan
843860
843880
843890
844110
cutting machines
844120
844130
Japan, Malaysia, the PRC, Republic of Korea,
sacks or envelopes
Taiwan
Machines for making paper cartons boxes
Japan, the PRC, Republic of Korea, Sweden, Tai-
cases tubes drums etc excl molding machines
wan
Japan, the PRC, Singapore, Taiwan, Thailand
844140
154
According to Figure 77 above, Switzerland is among the top five exporting countries ofcoffee pulpers and other machinery for preparation
of beverages, machines for making confectionary and parts for machinery for the industrial preparations/ manufacture of food & drinks
into Vietnam.
The figure below shows a further breakdown of the value of food processing machinery and equipment exported by Switzerland to Vietnam. In the same figure, the value of respective products by the largest exporting country is also presented. In 2011, Switzerland exported an approximate USD9.1 million worth of food processing machinery and equipment into Vietnam.
Figure 78: Comparison of Switzerland Export Value of Food Processing Machinery and Equipment to Vietnam (US Dollar Thousand)
HS Code
841981
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Vietnam
ing Country)
60
Sweden
4,099
35
Germany
1,643
1,462
Germany
45,911
126
Germany
9,622

842220

bottles & the like
842230

842240

machines
843420
Dairy machinery
Denmark
569
843490
France
758
843510
Thailand
509
PRC
172
PRC
5,757
Republic of Korea
8,373

fruit
843590

beverages
843810
Bakery machines
843820
1,029
ery
155
HS Code
Value of Imports
Largest Exporting
fication
from Switzerland
Country to Vietnam
ing Country)
843830
PRC
4,655
843840
Brewery machines
Germany
16,733
843850
PRC
2,760
PRC
876
3,915
PRC
8,107
2,370
Netherlands
10,392
90
PRC
9,298
PRC
717
PRC
3,377
PRC
3,941
poultry
843860

843880

843890

844110

cutting machines
844120

sacks or envelopes
844130

molding machines
844140

Total
9,092
Overall, the figure above shows that Switzerlands exports of food processing machinery and equipment into Vietnam is significantly lower
than the largest exporting country of the respective machinery and equipment. Most of the countrys food processing machinery and
equipment are obtained from the PRC. Swiss companies may focus on its competitive edge by offering higher technology and specialised
machinery and equipment to the larger food processing companies in the country.
7.3.7 Major Players in the Sectors

Some of the major players in the processed food and food processing machinery and equipment sectors are presented below. Note that
the list is not exhaustive.
156

In this section, we profile some of the major food processing companies in Vietnam.
Masan Group Corporation
Address
: 8th Floor, Central Plaza, 17 Le Duan, District 1, Ho Chi Minh City
Tel
: (84) 8 6256 3862
Fax
: (84) 8 3827 4115
Website
: www.masangroup.com
Masan Group Corporation is one of the largest food companies in Vietnam. The company carries a portfolio of condiment and convenience food products, including fish sauce, chilli sauce, and instant noodles. The companys brands are well established in Vi etnam and
are targeted at different segments of the consumers. Brand names include Nam Ngu Fish Sauce, Tien Vua, and Rong Viet.
Sao Ta Foods Joint Stock Company
Address
: Km 2132, National Road 1A, Soc Trang city, Soc Trang province
Tel
: (84) 7 9382 2203
Fax
: (84) 7 9382 2122
Email
: fimexvninfo@yahoo.com.vn
Website
: www.fimexvn.com
Sao Ta Foods Joint Stock Company is a leading processor for frozen shrimp products. The company engages in processing and exporting frozen shrimp. Its products include cooked shrimp, breaded shrimp and frozen vegetables and fruits. The company exports to many
other countries, including Japan, Singapore, and Europe.
Bibica Corporation
Address
: 443 Ly Thuong Kiet st., Ward 8, Tan Binh Dist., Ho Chi Minh City
Tel
: (84) 8 3971 7920
Fax
: (84) 8 3971 7922
Email
: banhang@bibica.com.vn
Website
: www.bibica.com.vn
As one of the leading confectionery producers in Vietnam, Bibica Corporation manufactures a wide range of products, including biscuits,
snack foods, candy, and chocolate products. The company carries brands such as Hura, Lotte, and Chocobella. The companys products
can also be found in countries such as Japan, Taiwan, and the United States.
157
Halong Canned Food Joint Stock Company
Address
: 10 Chuong Duong Do Str., Hoan Kiem Dist., Hanoi
Tel
: (84) 4 3932 9316
Fax
: (84) 4 3932 9317
Email
: ngandang@canfoco.com.vn
Website
: www.canfoco.com.vn
Halong Canned Food Joint Stock Company is one of the pioneer and leading food manufacturers in Vietnam. The company owns and
operates eight food manufacturing facilities in the country and produces foodstuffs such as canned meat, canned fruits, canned tuna and
frozen spring rolls. The company currently exports its products such as sausages into Europe, Asia and the Middle East.
Hanoimilk Joint Stock Company
Address
: Km 9 Bac Thang Long Noi Bai Road, Quang Minh Industry Zone.
Vinh Phuc
Tel
: (84) 4 3886 6567
Fax
: (84) 4 3886 6564
Website
: www.hanoimilk.com
Hanoimilk Joint Stock Company manufactures milk and dairy products in Vietnam. In addition to the Hanoimilk brand, the company carries other brands such as Izzi and Yoha. The company has a wide range of flavours for its milk products, catering to the mass consumers
in the country.
Tan Hiep Phat Group
Address
: 219 Highway 13, Vinh Phu, Thuan An district, Binh Duong Province
Tel
: (84) 6 5075 5161
Email
: info@thp.com.vn
Website
: www.thp.com.vn
Tan Hiep Phat Group is one of the leading beverage manufacturers in Vietnam. The company produces a wide range of ready-to-drink
beverages including teas, soya milk and beer. The companys brands include Number 1, Ben Thanh Beer, and Dr.Thanh.
Pham Nguyen Confectionery and Foods Processing Corporation
Address
: D25/4 Phan Anh Street, Ho Chi Minh City VN-65
Tel
: (84) 8 876 3957
Fax
: (84) 8 877 1580
Email
: trading@phaner.vn
Website
: www.phamnguyenfoods.com
158
Pham Nguyen Confectionery and Foods Processing Corporation is one of the leading confectionery manufacturers in Vietnam. The company manufactures products such as soft cakes, cookies, and crackers. The company brand portfolio includes names such as Phaner,
Solo, and Ruby. The companys products are also being exported to the Middle East, United States, and Russia.
Viet Hung Food Industry Company Limited
Address
: Phan Van Doi Road, Tien Lan Hamlet,Ba Diem Ward, Hoc Mon District,
Ho Chi Minh City
Tel
: (84) 8 3712 5697
Fax
: (84) 8 3712 5699
Website
: www.viethungfood.com
Being one of the leading food manufacturers in Vietnam, Viet Hung Food Industry Company Limited offers products such as instant noodles, instant porridges and seasoning products. The company products are marketed under its Gomex brand, and can be found in countries such as Sweden, Finland, and the United States.
Vinamilk Corporation
Address
: 10 Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City
Tel
: (84) 8 5415 5555
Fax
: (84) 8 5416 1226
Email
: vinamilk@vinamilk.com.vn
Website
: www.vinamilk.com.vn
Vinamilk Corporation is a leading manufacturer of dairy products in Vietnam. The company offers wide variety of products from milk,
yoghurt and cheese, to fruit juices and cereal powders. Most of the companys products are marketed under the Vinamilk brand. Currently, the company also exports its products to countries such as Australia, Iraq, and the United States.
Vietnam Foods Corporation
Address
: 7th Floor, Melinh Point, 02 Ngo Duc Ke str. District 1, Ho Chi Minh City
Tel
: (84) 8 3829 2965
Fax
: (84) 8 3910 0625
Email
: webmaster@vfcfood.com
Website
: www.vfcfood.com
Vietnam Foods Corporation operates a group of food manufacturing businesses in Vietnam. Main products of the company include rice,
canned fruit, and frozen vegetables. The company currently exports to Russia, Germany, the Middle East, and many other countries.
159
Major Importers of Processed Food

The major importers of processed food in Vietnam include Saigon Union of Trading Co-operatives (Co.op Mart), and Big C Vietnam.
Saigon Union of Trading Co-operatives (Co.op Mart)
Address
: 199-205 Nguyen Thai Hoc St Pham Ngu Lao Ward, District 1,

Ho Chi Minh City
Tel
: (84) 8 3836 0143
Fax
: (84) 8 3837 0560
Website
: www.saigonco-op.com.vn
The Saigon Union of Trading Co-operatives operates the largest supermarket chain, Saigon Co.op, in the country. Saigon Co.op supermarkets are established in Ho Chi Minh City and in some provinces located in the south of Vietnam. Saigon Co.op has evolved into a
multi-format retailer to serve the different needs of consumers in its markets. Aside from supermarkets, Saigon Co.op Food stores and
Co.op convenience stores are also located across the country. There are currently more than 100 retail outlets offering food products
under the Saigon Union of Trading Co-operatives in Vietnam.
Big C Vietnam
Address
: Big C Vietnam purchase center, 1231 QL1A, KP5, Binh Tri Dong B, Binh Tan, Ho Chi Minh City
Tel
: (84) 8 3756 2300
Email
: newsupplier@bigc-vietnam.com
Website
: www.bigc.vn
Big C hypermarket, owned by French retailer, Groupe Casino, is the only hypermarket store format found in Vietnam. With 17 hypermarkets located mainly in Hanoi and Ho Chi Minh City, Big C caters to mostly urban consumers in the country. In addition to Big C hypermarkets, Big C also operates shopping malls to allow entrepreneurs to rent spaces for businesses. Big C has also launched several house
brands of food products, which can be found in the hypermarkets.
Others
There are also other domestic food importers in the country. Other bigger domestic food importers include Nam Phuong Co Ltd, which
imports food products from Japan, Singapore, and Australia. Huong Thuy Manufacture Service Trading Corporation is also an importer of
several products from the United States and New Zealand.

Manufacturers and suppliers of food processing machinery and equipment include industry players that import these machinery and
equipment from other countries. Due to limited desktop information, a list of some of the domestic providers is provided in this section.
160
Cong ty Tnhh Khoi Nghiep
Address
: 746, Minh Khai, Q. Hai, Ba Trung
Tel
: (84)8 3984 5864
Email
: NA
Website
: NA
The company supplies equipment, machinery and materials for packaging. It also repairs, maintains and provides spare parts, especially
for automatic packaging solutions.
Cong Ty Thnh Tm-Dv Phu Dai Loi
Address
: 114/2 Yen Teh, Phu ong 2, Quan Tan Binh, Ho Chi Minh
Tel
: (84)8 3842 1913 , 3848 9959, 3848 7660
Email
: info.master@phudailoi.com.vn
Website
: http://www.phudailoi.com.vn/
The company specializes in supply food vaccum, sealing and packing machines which are manufactured in Japan.
Phu Loc Technologies Company Ltd
Address
: 4a Dang Van Ngu St., Ward 10. Phu Nhuan District. Ho Chi Minh
Tel
: (84)8 3849 5555
Email
: plcp1@vnn.vn
Website
: NA
The company represents various brands, providing solutions in the production of snacks, seafood, sausages and potato chips. It is an
agent for Belgium Marelecs products in Vietnam and also carries meat processing machinery for Laska from Austria.
QM Pack-Tech Co.
Address
: 28 Phung Khac Khoan St., District 1, Ho Chi Minh
Tel
: (84)8 3823 3861
Email
: info-qm@qm-pack.com.vn
Website
: http://www.qm-pack.com.vn/index/home
The company is a supplier of machines for the pharmaceutical, cosmetics and food industries. Under food, some types of machinery that
it supplies include the powder mixing and transport system, sugar milling system, powder and coffee filling line and milk powder packing
line.
161
Song Song Co. Ltd
Address
: 4/F, 119 Dien Bien Phu Street, Dakao Ward, District 1, Ho Chi Minh
Tel
: (84)8 3911 1877
Email
: info@songsong.com.vn
Website
: http://www.songsong.com.vn
The company is the sales agent and partners for some European machine manufacturers such as KF and Chriwa from Germany.

7.4.1 Opportunities in Overall Market in Vietnam
Vietnam can be said to be self-sufficient in various agricultural food products, while the country requires import of other raw materials and
food ingredients. With rising disposable income and preference for processed food products, there are opportunities for Swiss companies
to enter the country. Some of the opportunities identified in Vietnam are discussed as below.
1.
Increase in Vietnams trade liberalisation - The Vietnam government is actively encouraging foreign investments into the agricultural and food processing sector. As such, demand for food as well as food-related technologies and facilities will continue to
increase and present opportunities for Swiss companies.
2.
Vietnams food processing industry is expanding rapidly - The growing demand for food products has resulted in the rapid expansion of Vietnams food processing industry. The sector is growing at an annual rate of 20.0% to 30.0% 67. This trend will provide more opportunities for foreign companies to enter the market and to expand their existing operations.
3.
Growing tourism industry - Vietnam is becoming increasingly popular as a tourist destination. According to the National Administration of Tourism, the tourism sector has contributed significantly to the countrys economy in 2011. The number of tourists
visiting the country in 2011 was recorded at over 6.0 million tourists, reflecting an increase of 19.1% 68. The growing number of
tourists will not only drive the countrys development, but also expand the food service industry and increase the demand of high
quality food products.
4.
Rising affluence - Consumer spending on food products is growing in the country. Rising affluence among the population will be
able to drive demand for food of high quality. This will also increase the demand for premium and luxury food products. Swiss
companies may contemplate to target this segment of the consumers.
67
Online Trade and Investment Information Portal, http://www.itpc.gov.vn/importers/news/2009/11/2009-11-03.527560/MISNews_view/?set_language=en

Vietnam National Administration of Tourism, http://www.vietnamtourism.gov.vn/english/index.php?cat=012040&itemid=5143
68
162
5.
Preference for processed food products - Consumers are beginning to opt for processed food products over fresh food products
due to hygiene concerns. In addition, processed food products are generally cheaper to obtain than fresh foods. Consumers
preference for processed food products continues to open up opportunities for foreign companies wanting to export into Vietnam, or to set up food manufacturing facilities in the country.
6.
Plans to develop the seafood processing sector - The Ministry of Agriculture and Rural Development has approved the Vietnamese master plan for developing the seafood industry. In view of this plan, the government is looking to increase the Vietnams
seafood exports to USD10 billion by year 2020. Under the plan, the government will also be encouraging investment for the development of seafood processing sector. There are also plans for building new facilities and a research centre under this plan.
Swiss companies may tap into this area to gain entry to the market.
7.
Expansion of the food retail industry - More international operators, such as the Diary Farm Group and Lotte Shopping, have licenses approved to set up retail networks within the country. The expansion of Vietnams food retail industry not only allows
higher levels of product exposure, it will also drive up food consumption levels within the country. In addition, modern retail formats, such as supermarkets, are able to offer consumers products at lower prices, hence, attracting more consumers.
8.
Increased sophistication in consumers tastes - Since joining the World Trade Organization in 2007, Vietnam has opened its
doors to a wide variety of food imports from other countries. This has resulted in an increased sophistication of food products in
the country. While consumers are more exposed to different food products, they are also more likely to adopt food trends, and
have a higher acceptance level for foreign products.
9.
Growing Nutrition Market - Although still a relatively young market in this area, the Vietnamese are seeking ways to improve
the nutrition value of their food products. For example, Vinamilk signed a cooperative deal nutritional research and application
with DSM Group, Lonza Company and Chris Hansen. This indicates that opportunities for Swiss companies specialising in additive manufacturing and microbial science.

Cheese products are not as popular in Vietnam. Main consumers of cheese products are the middle and high income groups. In addition,
cheese is not commonly used and found in Vietnamese dishes. In 2011, Vietnam imported a total of 4,783 tons of cheese products, worth
approximately USD23.3 million. In the same year, the country exported only one ton of cheese products, with an approximate value of
USD6 thousand.
163
Figure 79: Trade Statistics (2007 - 2011) for Cheese Products in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
16,740
3,843
14
2008
24,032
4,753
2009
23,823
3,464
25
2010
21,827
5,557
2011
23,287
4,783
Note:
2010 and 2011 figures are obtained from mirror data.
The top exporting countries for Vietnam include Poland, Australia and New Zealand. Major brand names within the country include international players like Unibel and Fonterra. Despite low levels of consumption within the local population, there is still demand for cheese
products by the middle and high income group population, as well as expatriates in the country. Demand is also expected to gr ow, as
more people are influenced by Western lifestyles, and the increase of fast food outlets. The rapid development of supermarkets and hypermarkets will also present opportunities for dairy consumer goods.

Vietnam has a growing lifestyle trend for coffee drinking and coffee cafs. As one of the largest coffee producers in the world, Vietnam
exported 1.1 million tons of coffee products in 2011. The total export value amounted to USD2.6 billion. In the same year, the country
imported 7,008 tons of coffee products, worth approximately USD35.1 million.
Figure 80: Trade Statistics (2007 - 2011) for Coffee Products in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(US Dollar
(Tons)
Thousand)
Thousand)
Export Volume
(Tons)
2007
14,024
5,505
1,927,294
1,233,321
2008
26,632
5,663
2,132,309
1,062,740
2009
39,241
7,420
1,762,949
1,186,662
2010
32,424
11,402
1,976,645
1,188,251
2011
35,112
7,008
2,620,082
1,070,466
Note: 2010 and 2011 figures are obtained from mirror data.
164
The top exporting countries for coffee products into Vietnam include Indonesia and the PRC. Major coffee brand names within the country
also include Vinacafe, Nescaf, and Trung Nguyen. In addition to the increasing demand for fresh coffee products, instant coffee products
are gaining popularity in the country. Companies looking to enter Vietnams coffee sector may face tight competition, as the country is
self-sufficient in coffee production and products. However, opportunities for distinct coffee products from Western countries still exist with
the wealthy population and expatriates in the country.

In 2011, Vietnam imported 22,820 tons of candy and chocolate products that were worth approximately USD65.3 million. In the same
year, the country exported 18,254 tons of candy and chocolate products worth approximately USD73.4 million.
Figure 81: Trade Statistics (2007 - 2011) for Confectionery Products in Vietnam
Import Value
Year
Import Volume
(US Dollar
(Tons)
Thousand)
Export Value
Export Volume
(US Dollar
(Tons)
Thousand)
2007
42,458
12,039
42,921
17,334
2008
54,401
13,660
65,321
22,027
2009
52,651
11,913
74,342
21,087
2010
58,773
20,521
72,850
20,322
2011
65,252
22,820
73,364
18,254
Note:
Vietnams top exporters for chocolate products include Malaysia, Indonesia and the PRC. Brands that are popular with consumers include
Belcholat, Guylian, and Merci. There is an increasing trend of chocolate confectionery consumed, due to western culture and lifestyle
influences. Consumers in Vietnam prefer small-packed snack foods that are lower in price. Companies looking to enter the sector can
offer a wider range of chocolate confectionery at lower prices, targeted at the mass market. In addition, demand for chocolate confectionery is expected to rise, following the increase in consumption by the growing middle income group and the exposure to Western consumption habits.
The larger exporters for candy products into Vietnam include Thailand, Philippines, and the PRC. Popular brands include Bibica, Hai Ha
and Alpenliebe. Companies looking to enter the sector should provide a wide range of unique flavours, and launch promotional activities
to attract consumers.
165
7.4.5 Opportunities for Processed Meat Products

In 2011, Vietnam imported 7,187 tons of processed meat products, worth around USD12.4 million in value. In the same year, the country
exported only 69 tons of processed meat products, worth less than USD0.2 million. The import value and volume for processed meat
products has increased significantly from 2006 to 2010, but declined 2011. The low export value and volume for Vietnam also suggests
that the country consumes a large amount of processed meat products.
Figure 82: Trade Statistics (2007 - 2011) for Processed Meat Products in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
1,018
226
2,196
403
2008
3,463
748
1,393
393
2009
3,478
740
1,173
208
2010
26,633
15,129
1,073
374
2011
12,448
7,187
142
69
Note:
The larger exporters for processed meat products into Vietnam include the United States and Malaysia. There are significant opportunities
for processed meat products in Vietnam, as an increasing trend towards the western culture and diet can be seen. Meat products are also
growing in demand due to consumers lifestyle changes and the increasing affluence of the population. Companies looking to enter the
market can also offer high-end meat products, and by offering meat products, which Vietnam is lacking in. Companies can also target the
local growing income population and the expatriates.
7.4.6 Opportunities for Cooking Ranges

In 2011, Vietnam imported at least 16,190 units of cooking ranges for making hot drinks, cooking, or heating food, worth around USD14.4
million in value. In the same year, the country exported 1,781 units of these cooking ranges, worth less than USD0.2 million.
Figure 83: Trade Statistics (2007 - 2011) for Cooking Ranges in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
4,965
201
(tons)
83
(tons)
2008
11,189
381
(tons)
66
(tons)
166
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2009
7,307
310
(tons)
100
(tons)
2010
10,607
401
(tons)
195
(tons)
2011
14,442
16,190 (units) and 214 (tons)
187
1,781 (units)
The largest exporters for cooking ranges into Vietnam include the PRC, Germany and Sweden. The statistics show that Vietnams import
value and volume of these machinery and equipment were much higher than the export values, suggesting high demand of such machinery and equipment within the country. In 2011, the value of Switzerland exports for cooking ranges into Vietnam comprised only 1.5% of
the highest exporter, the PRC. Swiss companies may explore further opportunities in exporting these machinery and equipment.
7.4.7 Opportunities for Machines for Filling, Closing, Sealing, Capsuling and Labelling
In 2011, Vietnam imported 18,446 units of machines for filling, closing, sealing, capuling and labelling, worth around USD123.4 million in
value. In the same year, the country exported 1,077 units of such machines worth at USD4.4 million.
Figure 84: Trade Statistics (2007- 2011) for Other Packing or Wrapping Machines in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
51,408
1,659
(tons)
1,838
101
(tons)
2008
104,547
2,435
2009
96,283
2,282
(tons)
2,111
105
(tons)
(tons)
4,842
140 (tons)
2010
82,714
3,852
(tons)
3,439
123 (tons)
2011
123,370
18,446 (units)
4,417
1,077 (units)
The largest exporters for filling, closing, sealing, capsuling and labeling machines into Vietnam include the PRC, Germany an d Italy. The
statistics reflect that Vietnams import value and volume of these machinery and equipment is much higher than the export values, suggesting high demand of such machinery and equipment within the country. Swiss companies currently are exporters of such machines to
Vietnam, but it lags far behind Germany, the largest exporter.
167
7.4.8 Opportunities for Other Packing or Wrapping Machines

In 2011, Vietnam imported 14,652 units of other packing or wrapping machines, worth around USD57.2 million in value. In the same year,
the country exported 98 units of other packing or wrapping machines, worth at USD0.8 million.
Figure 85: Trade Statistics (2007 - 2011) for Other Packing or Wrapping Machines in Vietnam
Import Value
Year
Export Value
Import Volume
(US Dollar
(Tons)
Thousand)
Export Volume
(US Dollar
(Tons)
Thousand)
2007
28,044
1,482
(tons)
943
26
(tons)
2008
32,515
1,219
(tons)
657
23
(tons)
2009
34,985
1,077
(tons)
9,232850
10
(tons)
2010
43,264
1,488
(tons)
1,836
135
(tons)
2011
57,218
14,652 (units)
832
98 (units)
The largest exporters for other packing and wrapping machines into Vietnam include the PRC, Germany and Italy. The statistics reflect
that Vietnams import value and volume of these machinery and equipment were much higher than the export values, suggesting high
demand of such machinery and equipment within the country. Swiss companies do already export such machinery and equipment into
Vietnam, but the value is only 1.3% that of Germany, the largest exporter.

Consumers in Vietnam tend to be price sensitive and have low levels of brand loyalty. On the other hand, there is also an increasing
population of younger generation and rising influence of the Westernised culture in the country. Companies may also wish to tailor their
entry strategies in accordance to different urban and less urban areas.
There are various forms of business structures in Vietnam, which foreign companies/ investors can choose from. It is necessary for businesses in the country to be registered in order to carry out legal business operation. More information on the different business entities
can be found in the Appendix section of the report. Below are recommended market entry strategies to Vietnam

Working with a local agent or distributor is the most common mode of entry into Vietnam. This is recommended as most of the people
converse in Vietnamese, which can be an obstacle for foreign companies. In addition, agents and distributors are able to perform market
intelligence, identify sales leads, and offer after-sales services, on behalf of the foreign company.
168
7.5.2 Establishing a Local Office

Foreign companies may opt to establish a commercial presence in Vietnam. Setting up of representative offices or branch offices are
alternatives to establishing manufacturing facilities in the country. A representative office may conduct a limited range of business operations, but is prohibited from engaging in any revenue-generating activities. A branch office allows a foreign business to operate officially in
the country. The establishment of a local office will enable foreign companies keep track of the upcoming consumer trends and also to
cater to the local population, while holding control of the business operations.

Joint ventures are one of the preferred entry strategies employed by foreign investors in Vietnam. A Vietnamese partner is capable of
contributing significantly to the foreign company. An appropriate partner can offer contacts with local industry players, and has good
knowledge of the local market, which are important and time-saving for the foreign companies. Foreign companies should take note of
potential difficulties such as differences in management styles and cultures.

Guidelines for food imports are regulated by several Vietnamese government bodies. These include the Ministry of Health
(www.moh.gov.vn), Vietnam Food Administration (www.vfa.gov.vn), Ministry of Agriculture and Rural Development (www.mard.gov.vn),
Ministry of Trade and Industry (www.moit.gov.vn) and the Ministry of Science and Technology (www.most.gov.vn).
7.6.1 Import Requirements in Vietnam

All food products that are produced domestically or imported from other countries are required to have obtained a Food Qualit y/ Standards Registration Certificate. Although the Vietnam Food Administration is responsible for issuing the Certificate, the Ministry of Science
and Technology is responsible for setting the national standards for food safety and hygiene. In addition, a Certificate of Analysis (CA) is
required for product registration, and has to be issued by the manufacturer, independent testing agency in the country of origin, or other
authorised testing agencies in Vietnam. Companies should note that the Vietnam Food Administration, which is part of Ministry of Health,
is responsible for all processed food products only.
7.6.2 Import of Fresh Food and Raw Materials

The Ministry of Agriculture and Rural Development is responsible for regulating the imports of fresh food and raw materials, including
meat, fisheries, and agricultural products. More information can be obtained from www.mard.gov.vn.
169

The
labelling
guidelines
for
imported
food
products
into
Vietnam
can
be
found
on
http://www.dncustoms.gov.vn/web_eglish/english/nghi_dinh/89_ND_CP_30_08_2006.htm. In general, the language to be used has to be

Vietnamese, unless there are no corresponding Vietnamese words/ names. The compulsory information for labelling includes:
Name of foodstuff.
Name and address of the food manufacturing establishment.
Quantity of foodstuff.
List of ingredients.
Basic quality criteria of foodstuff.
Date of manufacture, expiry date, and preservation date of the foodstuff;.
Instructions on preservation and instructions on use of the foodstuff.
Origin of foodstuff.
Hygiene and safety information and warnings.
Ethanol content (applicable for alcoholic beverages).
7.6.4 Other Specific Imports

There are also other imports requirements for specific food products. For instance, an import permit for the production or trading of alcoholic beverages is necessary, and can only be obtained by the Ministry of Trade and Industry. In addition, there are mandatory requirements for food precuts that are radiation-treated, genetically modified, and functional foods. More information can be obtained from the
relevant authorities websites as mentioned in the start of this section.

Vietnam is subject to four categories of tariff rates:
1.
Rates that apply to all WTO member countries.
2.
Preferential tariff rates that apply to imports from ASEAN.
3.
Preferential tariff rates under Vietnams FTAs.
4.
General tariff rates that apply to all other countries.
Tariffs on selected equipment for the use in kitchens are generally high. Imports on second-hand consumer goods and refrigerating
equipment using chlorofluorocarbons are prohibited. Foreign-invested companies can import materials and machinery only for establishing production lines and in the production of goods as dictated in their investment licenses. For more information, please refer to
http://www.dncustoms.gov.vn/web_english/e_vbmoi.htm,
170
Osec
Stampfenbachstrasse 85
Postfach 2407
CH-8021 Zrich
Telefon +41 44 365 51 51
Fax +41 44 365 52 21
info.zurich@osec.ch
Osec
Corso Elvezia 16
Casella postale 5399
CH-6901 Lugano
Telefono +41 91 911 51 35
Fax +41 91 911 51 39
info.lugano@osec.ch
Osec
Avenue dOuchy 47
Case postale 315
CH-1001 Lausanne
Tlphone +41 21 613 35 70
Fax +41 21 613 35 02
info.lausanne@osec.ch
Copyright Osec June 2012. Alle Rechte vorbehalten.
Unsere Hotline: 0844 811 812

www.osec.ch

BBK Processed Food and Food Processing Machinery Equipment Sectors ASEAN 06 12

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

BBK Processed Food and Food Processing Machinery Equipment Sectors ASEAN 06 12

Hochgeladen von

Copyright:

Verfügbare Formate

Processed Food and Food Processing

Machinery and Equipment Sectors in

Processed Food and Food Processing

Processed Food and Food Processing

This report provides basic information on

Converging Knowledge Pte. Ltd.

EXECUTIVE SUMMARY ............................................................................................................................................ 10

Brief Overview of Indonesias Economy and Key Statistics .......................................................................................... 16

Characteristics of the Sectors ..................................................................................................................................................... 17

Trade Statistics Volume and Value ....................................................................................................................................... 18

Market Trends and Issues ............................................................................................................................................................. 19

COMPETITIVE LANDSCAPE ............................................................................................................................................................................ 20

Estimated Number of Players in the Sectors ...................................................................................................................... 20

Segmentation of the Sectors ...................................................................................................................................................... 21

Sources of Imports to Indonesia .............................................................................................................................................. 21

Sources of Food Processing Machinery and Equipment Imports to Indonesia ................................................. 23

Foreign Countries ............................................................................................................................................................................................ 25

Major Players in the Industry ..................................................................................................................................................... 26

MARKET ENTRY STRATEGIES ........................................................................................................................................................................ 32

Opportunities in Overall Market in Indonesia .................................................................................................................... 32

Opportunities for Cheese ............................................................................................................................................................. 34

Opportunities for Coffee .............................................................................................................................................................. 34

Opportunities for Confectionery (Candy and Chocolate) ............................................................................................. 35

Opportunities for Processed Meat Products ....................................................................................................................... 36

Opportunities for Machines for Making Confectionery ................................................................................................ 37

Opportunities for Coffee Pulpers and Other Beverages Machinery ........................................................................ 37

Opportunities for Machines for Molding Articles ............................................................................................................ 38

Agents/ Distributors ........................................................................................................................................................................ 38

Establishing a Local Office ........................................................................................................................................................... 39

Joint Ventures .................................................................................................................................................................................... 39

REGULATORS SPECIFIC TO THE FOOD INDUSTRY ...................................................................................................................................... 39

Import Requirements in Indonesia .......................................................................................................................................... 39

Other Food Imports ........................................................................................................................................................................ 40

Halal Certification ............................................................................................................................................................................ 40

Labelling Guidelines ........................................................................................................................................................................ 40

Import of Food Processing Machinery and Equipment ................................................................................................ 40

Brief Overview of Malaysias Economy and Key Statistics ............................................................................................ 41

Characteristics of the Sectors ..................................................................................................................................................... 42

Trade Statistics Volume and Value ....................................................................................................................................... 43

Market Trends and Issues ............................................................................................................................................................. 44

COMPETITIVE L ANDSCAPE ............................................................................................................................................................................ 46

Estimated Number of Players in the Sectors ...................................................................................................................... 46

Segmentation of the Sectors ...................................................................................................................................................... 46

Sources of Imports to Malaysia ................................................................................................................................................ 47

Sources of Food Processing Machinery and Equipment Imports to Malaysia ................................................... 49

Foreign Countries ............................................................................................................................................................................................ 50

Major Players in the Sectors ....................................................................................................................................................... 52

MARKET ENTRY STRATEGIES ........................................................................................................................................................................ 57

Opportunities for Overall Market in Malaysia .................................................................................................................... 57

Opportunities for Cheese ............................................................................................................................................................. 59

Opportunities for Coffee .............................................................................................................................................................. 59

Opportunities for Confectionery (Candy and Chocolate) ............................................................................................. 60

Opportunities for Processed Meat .......................................................................................................................................... 61

Opportunities for Cooking Ranges.......................................................................................................................................... 61

Opportunities for Other Packing or Wrapping Machines ............................................................................................ 62

Opportunities for Bakery Machines ........................................................................................................................................ 63

Opportunities for Coffee Pulpers and Other Beverages Machinery ........................................................................ 63

Agents/ Distributors ........................................................................................................................................................................ 64

Direct Entry ......................................................................................................................................................................................... 64

Joint Ventures .................................................................................................................................................................................... 64

Local Distribution Channels ........................................................................................................................................................ 65

REGULATORS SPECIFIC TO THE FOOD INDUSTRY ...................................................................................................................................... 65

Import Requirements in Malaysia ............................................................................................................................................ 65

Import of Meat and Poultry Products .................................................................................................................................... 66