Development of the Indian supply chain, be it through cold chain management or grower consolidation, could lead to great leaps in the country’s production yields and efficiency. And retailers and foreign investors who understand these challenges and are prepared to address them could find big opportunities in India.
These were some of the key messages to come out of last week’s Fresh Produce India conference in Mumbai, which brought together industry leaders and experts from across the globe to discuss India’s horticultural potential.
Fresh Produce India 2009 was held at the Hyatt Regency Mumbai on 2-3 April, and was the second bi-annual conference in the country organised by Asiafruit Magazine in association with the SCS Group.
The event, India’s only international fresh produce conference, attracted 240 delegates from 20 different countries, and drew praise for its timely discussion of the hurdles and opportunities facing the country in the changing economic climate.
A range of high-profile speakers from different industry sectors presented at the conference, and discussion by expert panels in each session gave an opportunity for delegates to ask questions and contribute, leading to some dynamic exploration of different development strategies and market concerns.
The event was moderated by Chris White of Market Intelligence, the publisher of Asiafruit, Eurofruit and Americafruit Magazines.
Several of the major points to come out of the event emphasised that the challenges present in India’s supply system, both for the export and domestic markets, can be overcome by information and technology transfer along the logistics and production chain.
Indian agriculture is beginning a state of flux, according to Dr Ashok Gulati of the International Food Policy Research Institute, who provided an overview of the major issues in India’s fruit and vegetable industry in an opening session also addressed by Arvind Singhal of Technopak Advisors.
“Consumption patterns are changing, and farmers are now responding to that change,” stated Mr Gulati. “The agri-system in India is transforming, but will this transformation help?”
The rise of corporate involvement in Indian horticulture also came under the spotlight, and a presentation by S Venkatraman of Rabobank highlighted the opportunities for back-end supply chain investment.
“Who is going to invest in back-end? There are opportunities for a back-end player for either local or multinational logistics companies,” he said. “India needs some low-cost solutions, because fancy equipment will not work.”
That perspective was further explored by some big names in a panel discussion with Chaitanya Rajwade of Mahindra Agribusiness, Mohammed Abbas of Del Monte Foods UAE, David Maddox of Capespan, Jai Oberoi of Bharti Wal-Mart and Hitin Suri of Suri Agro Fresh.
Sudhir Dhanani of Clear Consultant Management and Hans van Es of the Dutch Produce Association discussed the challenges to Indian exports to the UK and European markets respectively in the face of the declining global economy in session three. The discussion panel included Mayank Tandon of Freshtrop Fruits and Kaushal Khakhar of Kay Bee Exports.
“It’s important for food providers to the European market to know how to fulfil demands and meet certifications and standards,” Mr van Es explained. “We have seen a lot of changes,” he said of the economy, “and we will see many more.”
Potential solutions to some of India’s oldest supply chain problems were the focus of the conference’s fourth session. Aggregation of supply chains and post-harvest management, transport-hardy varietal development, information systems, edible produce coatings and reefer use were proposed in five presentations from Gokul Patnaik of Global Agrisystems, Shyam Vembar of Seminis, Krishna Kumar of IGP India, Joe Ruiz of JBT Foodtech and Prahlad Tanwar of Maersk.
“In India, you can’t wait for the government to build infrastructure. A lot of the advances in agriculture have come from private enterprise,” stated Mr Vembar.
One aspect of private enterprise getting a lot of attention in India is modern retail. While the sector has taken a beating over the last few months, strategic evolution in the industry means it still has fight left in it, according to Vipin Arora of Images Retail Intelligence Service (IRIS), who led the fifth session. He was joined for a panel discussion by Maneesh Dumbre of HyperCity Retail and Praveen Dwivedi of Namdhari Fresh.
The final session featured a presentation by Sumit Saran of event co-organisers SCS Group on the growth of India’s consumer market. Joining him on the panel discussion were Tarun Arora of IG International, Steven Leung of Alfa Fruit Packers, Craig Stauffer of Vanguard International and Sanjay Aggarwal of Dev Bhumi Cold Chain.
Mr Saran put figures to the growth of both the middle-class and disposable income levels available to India’s young population. He also remarked that product marketing drives should be based on sweetness and the colour red.
Fresh Produce India also provided excellent opportunities for delegates to network with movers and shakers in the industry during hour-long networking breaks hosted by Unifrutti India and Kay Bee Exports, and to explore booths set up in a dedicated exhibition area by a variety of companies.
Delegates were also able to participate in tours of the busy APMC Fruit & Vegetable Wholesale market in Vashi, and a retail tour of Reliance Fresh, Spencer’s and HyperCity outlets. The two tours allowed a valuable opportunity for delegates to see their own product being sold at the end of the supply chain.
Fresh Produce India attracted several high-profile industry partners, including the Agricultural and Processed Food Products Export Development Authority (APEDA), Euro Fruits, FRUIT LOGISTICA, IG International, Unifrutti India, Pear Bureau Northwest, the Washington Apple Commission, Sensitech, Suri Agro Fresh, Kay Bee Exports and MeadWestvaco Corporation (MWV).
Fresh Produce India will continue as a bi-annual event in the future, interspersed by other regional conferences. The next Indian conference will take place in 2011, and is expected to build on the success of this year’s event.
A full report on Fresh Produce India will appear in the May/June edition of Asiafruit Magazine. To order your copy, email to subscriptions@fruitnet.com.
