Malaysian Companies Making Inroads into the South America’s Food Market
THURSDAY, 25 SEPTEMBER 2014: The Malaysia External Trade Development Corporation (MATRADE) embarked on a promotion drive in Latin America to generate demand for Malaysian food products. Malaysian companies participated in a Specialised Marketing Mission (SMM) to Peru held in conjunction with ExpoAlimentaria 2014, one of the largest food trade fairs in South America. The event showcased the first Malaysia Pavilion at the exhibition and among the products which were well received during the event included Nata de Coco jelly pudding and beverage as well as cereal bars and marshmallows.
One of the participants, Blossom View Sdn Bhd, said, this event has opened up opportunities for the company in promoting their bird’s nest products to enter the Latin American market, using Peru as the first base. As for Central Vista (M) Sdn Bhd, the mission provided exposure to the company on new markets opportunities and identified new customers for their corn snacks products.
According to MATRADE Trade Commissioner in Chile, Noor Ezzwanee Ahmad, “Malaysian products have potential demand in the Peruvian market due to the unavailability of some of the products which are new to the market. Based on our interactions with visitors and importers of food products, many of them are seeking new products from other countries to be introduced to the region and were asking for more products to be brought in. Among products with potential are confectioneries such as pudding, cakes, biscuits and wafers.â€
Looking at the response received from importers from Peru, Chile, Brazil, Mexico, Argentina, Ecuador and Colombia as well as other international buyers from USA, Canada and the Caribbean countries, ExpoAlimentaria serves as a good platform for Malaysian exporters of food and beverage to venture into Latin American market.
South America imported RM105.6 million of processed food from Malaysia in 2013. Cocoa and cocoa preparation was the largest imports with 32.4% share, followed by margarine and shortening (31.9%) and prepared/ preserved vegetable and fruits (19.5%). At present, most of the supermarkets and grocery chains in South America import 60% of their products. Sales through mass grocery retail outlets are increasing as a result of rising disposable incomes, increasing urbanisation and growing numbers of middle-class working women. The increased import of foreign-made products reflect South American consumers' readiness to experience imported brands. The grocery retail market in Peru is expected to reach RM64.52 billion by 2018.