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TRANSCRIPT
Pacific PARDI Project;
Whole of Chain Research on the Fiji Food Industry
Craig Johns
Global Food Studies
University of Adelaide
Pacific Value Chain Conference
Nadi, Fiji
18th April 2013
Presentation Plan
1. Background
2. Fiji Retail Transformation Project
3. Early Insights
4. Next Steps
Background
Global Retail Transformation What is happening globally?
Consumers are changing their shopping behaviour
Spending more at modern outlets
Why? What are the drivers?
Supply; Private sector investment in food chains, increased number of modern outlets,
modern store environment and greater product range
Demand; Rising urban population, increased demand for modern store environment and
product range => increased spending at modern outlets
Potential Impacts and Implications
Small local suppliers can not always respond to the retailer requirements of quality,
consistency, volume and new transaction methods
Policy makers and other industry stakeholders are faced with tough decisions on food
security, import substitution and what is best for the local agricultural sector and local
consumers
Therefore it is quite important to understand what is happening in the Fiji
food industry
Some Import Figures
Raw Data provided by Fiji Bureau of Stats
Trade Figures
Increased prices can be explained by tariff increases and the
20% depreciation of the $FJD in 2009
Hotels still require these key ingredients and over the same
period tourist figures are up, so why has volume of some
imported produce almost halved?
Has increased import prices encouraged hotels (and supermarkets) to
source more locally?
Have local farmers and traders been able to supply more produce?
Is the Fiji food industry transforming? At what rate? What effect is
it having along the whole chain?
These are the questions that prompted further research
Pacific PARDI Project
PARDI stands for ‘Pacific Agribusiness Research for
Development Initiative’
Funding is through the Australian Centre for
International Agricultural Research (ACIAR)
University of Adelaide’s role in PARDI is to;
Identify market and chains capable of increasing livelihood benefits
Identify researchable constraints in these chains
Develop research based interventions with our collaborative
partners
Fiji Retail Transformation
Project
Fiji Retail Transformation Project partners include USP, SPC, FBOS and the Fiji Ministry of
Agriculture, Fisheries and Forests
Progress in 2012
Completed 1000 urban household surveys on consumer preferences and
shopping patterns
Interviewed all major supermarket chains, a selection of hotels & resorts and all
major Fiji food processors across Viti Levu
Plans for 2013
Survey Fiji Producers mid year to find out their perspective
Survey Fiji Traders later in 2013 to understand how they link producers to the
markets
Early Insights
Larger Tourist Destination Resorts Warwick, Naviti, Outrigger, Shangri-La & Intercontinental
Smaller Transit and Conference Hotels
Novotel Nadi & Lami, Mercure, Tanoa Nadi and Suva, Holiday Inn
Vegetable Chain Map into Fiji Hotel & Resorts
Early Insights from Hotels and Resorts
Better understanding of;
The Hotel and Resort sector in Fiji
Differences between transit hotels and larger destination resorts
Hotel requirements and constraints
Price and freshness incentives to buy local
Capability of middleman to service large resorts is limited
Resorts need consistency, reliability and volume
Detailed insights were shared at the PGS workshop on the 14th and
15th Nov. PGS is now attempting to link specific farmers to specific
resorts for selected ‘best bet’ vegetables and will link to other
relevant projects (RTP, protected cropping project, MDF and IKSA)
for wider benefit
Retail Outlets
Supermarkets
Speciality Stores, Corner shops
Retail Outlets
Municipal Markets
Roadside Stalls / Fast food
Fiji Retail and Food Service Fruit and Veg Map
Early Insights from Supermarkets
Supermarkets use centralised buying for imported fruits and
vegetables but rely on individual store managers to source local
produce
Local supply to individual supermarkets is made up mainly of
farmer/middlemen who collect produce from the local region
Supermarkets aim to be a ‘one stop’ shop for consumers but
price and space pressure is seeing some reduction in the range
of produce offered
Supermarkets in close proximity to municipal markets focus more
on imported fruits and vegetables rather than compete on local
produce
Source: Richard Beyer’s report ‘The supply of local fresh fruits and vegetables to supermarkets’
1000 Urban HH Surveys across Suva and Nadi
15 pages long, 2 hours to conduct
79 different food categories
Fiji Householder Consumer Survey
Fiji Householder Consumer Survey Not only asking questions about ‘What’ and ‘How Much’ but also
‘From Where’, ‘Why’ and ‘How has purchasing behaviour
changed’
Covers 8 different types of food outlet
Supermarket
Roadside Stall / Hawker
Corner shop / Butcher and Bakery
Fish Market
Main market in town / city
Restaurant
Fast Food
Service Station
Results are still being analysed but I have some really early
insights I can share
Food Shopping patterns
Share of food spending by type of food outlet (percent of food expenditure)
Food shopping patterns Some food products where more than 70% of spending is at Supermarkets
Wheat and Flour 99.2
Breakfast Cereal 99.2
Chocolate and sweets 99.1
Rice 98.9
Processed Seafood 94.1
Soda, Fruit juice & soft drinks 89.8
Processed or frozen
vegetables 89.3
Processed Meat 80.4
Fresh Onion 78.5
Fresh Garlic 78.1
Fresh Potato 77.8
Fresh Milk 77.4
Processed or frozen fruits 71.7
Some food products where less than 3% of spending is at Supermarkets
Fresh seafood (other) 2.9
Fresh Breadfruit 2.7
Fresh Beans 2.4
Fresh Mango 2.3
Fresh Banana 1.9
Fresh Cabbage 1.9
Fresh Eggplant 1.7
Leafy vegetables 1.7
Fresh Pineapple 1.2
Fresh Cassava 1.2
Fresh Taro 0.4
22
Frequency of shopping at each food outlet (%)
Super-
market
Rd side/
Hawker
Cnr shop
/butcher
Fish
market
Main
market Restaurant
Fast
food
Service
station Total
Everyday 1.3 0.8 9.9 0.5 0.4 0.4 0.2 0.3 1.7
2-6 times
per wk 8.9 23.6 45.5 1.8 9.4 2.9 1.2 3.6 12.1
Once a
wk 54.6 22.4 17.7 29.8 53.3 4.2 3.0 5.0 23.8
2-3 times
per
month
27.5 15.4 12.1 26.2 23.4 8.9 4.2 7.4 15.6
Once a
month 7.5 7.7 4.8 21.2 7.8 12.8 7.1 5.4 9.3
Only a
few times
a yr
0.2 11.3 3.7 10.1 3.1 34.3 26.7 14.5 13.0
Never 0.0 18.8 6.3 10.4 2.6 36.5 57.6 63.8 24.5
Total 100 100 100 100 100 100 100 100 100
Mode of Transport (%)
Super-
market
Rd side/
Hawker
Cnr shop
/butcher
Fish
market
Main
market Restaurant
Fast
food
Service
station Total
On
foot 21.4 66.4 78.8 14.9 10 14.9 8.8 24.5 32.1
Bicycle 0.2 0.3 0.2 0.1 0.2 0.3 0.2 0.0 0.2
Car 20.7 14.7 12.0 22.0 20.5 25.4 30.9 33.4 20.7
Public
transp 48.9 14.2 6.7 54.8 64.5 51.6 50.8 35.4 40.8
Taxi 8.7 4.3 2.2 8.1 4.8 7.5 8.6 6.4 6.1
Other 0.1 0.1 0.1 0.1 0.0 0.3 0.7 0.3 0.1
Total 100 100 100 100 100 100 100 100 100
Important characteristics for ‘where’ to shop Somewhat
important Moderately important Important Extremely important
Store is close to
toilets Air-conditioning Store is easy to get to Food is safe to eat (90.7%)
Ability to purchase on
credit
Store provides discount
(sale)
Food products are fresh
(89.5%)
Fixed price Availability of frozen and
processed food
High quality food products
(80.8%)
Product is unpackaged Low Prices (79.7%)
Fast service Food product information
Availability of produce year
round Cleanliness
Store sells imported
produce Wide variety
Delivery Service Easy to find (display)
Flexible prices Friendly staff
Can purchase small
amounts Store sells local produce
Store is close to other non-
food shops Better opening hours
Main reason for using each food outlet Major Reasons Minor Reasons
Supermarket Low prices
Store is easy to get to
Sells imported products
Store is close to toilets*
Rd side Low prices
Store is easy to get to
Frozen/ processed foods
Product information*
Corner shop Low prices
Store is easy to get to
Air conditioning
Delivery service*
Fish market Food products fresh
Low Prices
Store provides discount
Sells imported products*
Main market Food products fresh
Low prices
Fixed price
Friendly staff*
Restaurant Low prices
Store is easy to get to
Ability to purchase on credit
Sells imported products*
Fast food Low prices
Fast service
Year round availability
Sells local product*
Service station Opening hours
Low prices
Store is close to toilets
Store provides discount*
*- other equal value minor reasons
Individual product insight
Where bought
most Why
Tomatoes Main market in
town
Food products are
fresh
Cabbage Main market in
town
Food products are
fresh
Fresh meat and poultry Butcher Low prices
Processed food items Supermarket Low prices
Buy Smaller
Quantities
%
About the
same
%
Larger
quantities
%
Tomatoes 19.9 54.7 25.4
Cabbage 13.1 48.2 38.7
Fresh meat&
poultry 21.3 51.8 26.9
Processed food
items 13.9 53.1 33
Individual product consumption change in last 5 years
Biggest food concern
I am concerned about; Strongly Agree (%) Strongly Disagree
(%)
The quality of my food 89 1
The safety of my food 88 <1
The price of food 82 6
Having enough food available 77 1
The nutritional content of my food 77 2
Whether the food was stored properly (refrigerated) 69 1
Local growers being able to sell their products 65 <1
The accuracy of information on food labels and food displays 62 4
Availability of certain foods all year round 52 2
Bacterial contamination of my food 38 34
Food imported from outside Fiji 37 7
The accuracy of information regarding halal certification 31 12
The use of pesticides to produce my food 29 21
The use of additives, preservatives and artificial colours 21 24
Next Steps
Next Steps
Further Analysis of HH Consumer Survey
By food outlet
By individual product and food groups
By different consumer groups
Income, education, location
Changes over last 5 years
To determine
Patterns of shopping behaviour
Future food purchasing trends
Implications for Fiji Agriculture
Next Steps
Future Activities in 2013.
Producer and Trader Surveys in 2013 to understand their role in the chain
Share research insights and collaborate with partners to
address constraints and opportunities
Government Agencies
Private Sector
Industry Associations / NGO’s
Other Research Partners
Opportunity to replicate this type of study in other
Pacific Countries
Any Questions?
Vinaka vaka levu
Presenter:
Craig Johns
University of Adelaide
Global Food Studies
Contact Details: Room 5.03, 10 Pulteney St,
Adelaide SA, 5005
Phone (08) 8313 6765
Mobile 0407 013 332
Fiji Mob 9265766
Email [email protected]