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EMP Market Assessment Trip Report Page 1

Trip Report

EMP Market Assessment for U.S. Pulses and Pulse Ingredients in Southeast Asia

Project Codes:

E13MXSAE10 In-Country Technical Workshops on Baking with Pea Flour in Southeast AsiaE14MXEM102 Increasing the Demand for U.S. Pulse Ingredients in Southeast Asia E14MXASEA4 Providing Southeast Asian Buyers with Greater Technical Knowledge of the

U.S. Dry Bean Industry Trip Start Date: February 27, 2015 Trip End Date: March 12, 2015 Trip Locations: Jakarta, Indonesia

Kuala Lumpur, Malaysia Manila, Philippines Ho Chi Minh City, Vietnam Bangkok, Thailand Travelers:

Eric Rosenberg, Vice President, Bryant Christie Inc. Tim Mitchell, Project Manager for Research and Evaluation, Bryant Christie Inc. Kate Lydin, Project Manager for Research and Evaluation, Bryant Christie Inc. Dee Richmond, Senior Project Manager, USDPLC and USDBC ASEAN Representative Pornnicha Sathujarun, Project Manager, USDPLC and USDBC ASEAN Representative Surisa Techawiratchon, Project Assistant, USDPLC and USDBC ASEAN Representative Trip Itineraries: Eric Rosenberg & Kate Lydin

Friday, 27th February: Seattle - Tokyo, NH 177, depart 12:00 am, arrive 15:40 pm (28 Feb) Saturday, 28th February: Tokyo – Manila, NH 949, depart 17:30 pm, arrive 21:30 pm Thursday, 5th March: Manila – Ho Chi Minh City, PR 591, depart 6:50 am, arrive 8:30 am Saturday, 7th March: Ho Chi Minh City – Bangkok, VN 603, depart 17:00 pm, arrive 18:30 pm Thursday, 12th March: Bangkok – Tokyo, NH 806, depart 7:05 am, arrive 15:00 pm Thursday, 12th March: Tokyo – Seattle, NH 178, depart 17:55 pm, arrive 11:00 am Tim Mitchell

Friday, 27th February: Seattle - Tokyo, DL 167, depart 11:57 am, arrive 15:30 pm (28 Feb) Saturday, 28th February: Tokyo - Bangkok, DL 584, depart 17:45 pm, arrive 23:10 pm Sunday, 1st March: Bangkok - Jakarta, TG 433, depart 8:20 am, arrive 11:55 am Thursday, 5th March: Jakarta – Kuala Lumpur, GA 818, depart 17:00 pm, arrive 20:10 pm Tuesday, 10th March: Kuala Lumpur – Bangkok, AK 892, depart 17:20 pm, arrive 18:25 pm Thursday, 12th March: Bangkok – Tokyo, DL 585, depart 7:00 am, arrive 14:55 pm Thursday, 12th March: Tokyo – Seattle, DL 166, depart 16:45 pm, arrive 9:41 am Dee Richmond

Sunday, 1st March: Bangkok – Manila, PR 731, depart 13:50 pm, arrive 18:20 pm Thursday, 5th March: Manila – Bangkok, TG 621, depart 13:10 pm, arrive 15:25 pm Pornnicha Sathujarun

Sunday, 1st March: Bangkok - Jakarta, TG 433, depart 8:20 am, arrive 11:55 am Thursday, 5th March: Jakarta – Kuala Lumpur, GA 818, depart 17:00 pm, arrive 20:10 pm Tuesday, 10th March: Kuala Lumpur – Bangkok, AK 892, depart 17:20 pm, arrive 18:25 pm


Surisa Techawiratchon Wednesday, 4th March: Bangkok - Ho Chi Minh City, VN 600, depart 11:20 am, arrive 12:50 pm Saturday, 7th March: Ho Chi Minh City – Bangkok, VN 603, depart 17:00 pm, arrive 18:30 pm

Trip Purposes:

To conduct a technical assessment for the EMP projects:

- E13MXSAE10: In-Country Technical Workshops on Baking with Pea Flour in Southeast Asia (USADPLC)

- E14MXEM102: Increasing the Demand for U.S. Pulse Ingredients in Southeast Asia (USADPLC)

- E14MXASEA4: Providing Southeast Asian Buyers with Greater Technical Knowledge of the U.S. Dry Bean Industry (USDBC)

Schedule:

Technical Assessment Team 1

Travelers: 1. Mr. Tim Mitchell, Project Manager for Research and Evaluation, Bryant Christie Inc. 2. Ms. Pornnicha Sathujarun, Project Manager, USDPLC & USDBC ASEAN Representative. Date Time Schedule USA Fri, 27 Feb 2015 11:57 am Tim departs Seattle, Washington for Bangkok, Thailand Thailand Sat, 28 Feb 2015 23:10 pm Tim arrives Bangkok,

checks-in at Suvarnabhumi Airport Hotel Sun, 1 Mar 2015 8:20 am Tim and Pornnicha depart Bangkok for Jakarta Indonesia 11:55 am Both travelers arrive Jakarta, Check-in at Grand Hyatt Hotel 19:00 pm Dinner meeting Mon, 2 Mar 2015 10:00-11:30 am Meeting with PT. Jakarta Sereal 13:30 - 14:30 pm Meeting with PT. Heinz ABC 16:00 - 17:30 pm Meeting with Mr. Gordon Bradley 18:30 - 20:00 pm Meeting with Chef Haryanto Makmoer Tue, 3 Mar 2015 9:00 – 10:00 am Meeting with FAS Jakarta 11:00 – 12:00 am Meeting with PT. Magnolium Mandiri Indonesia 14:00 – 15:30 pm Meeting with Ms. Alfi Puruhita 18:00 – 20:00 pm Supermarket Survey Wed, 4 Mar 2015 11:00 – 12:00 am Meeting with PT. Nutrifood 15:00 – 16:30 pm Meeting with Kalbe Nutritionals Thur, 5 Mar 2015 10:00 – 11:30 am Meeting with PT. Foodindo Dwivestama 17:00 pm Depart Jakarta for Kuala Lumpur, Malaysia Malaysia 20:10 pm Arrive Kuala Lumpur, Check-in at JW Marriott Hotel Fri, 6 Mar 14:00 pm Meeting with FAS Kuala Lumpur 16:00 pm Meeting with InterFlour R&D and Commercialization Center Sat, 7 Mar 14:00 - 17:00 pm Supermarket Survey Sun, 8 Mar Refreshment Mon, 9 Mar 11:00 am Conference Call with PT. Ekacitta Dian Persada (EDP) 14:00 pm Meeting with Malaysian Institute of Baking (MIB) 16:00 pm Meeting with FAS Bangkok 17:00 pm Meeting with Mr. Nick Loh 19:00 pm Attend a reception for the USDA Under Secretary and

a trade delegation at Grand Hyatt Hotel


Tue, 10 Mar 2015 12:30 pm Meeting with Spectrum Ingredients 17:20 pm Depart Kuala Lumpur for Bangkok Thailand 18:25 pm Arrive Bangkok, Tim checks-in at InterContinental Hotel Wed, 11 Mar 2015 9:00 am Conference call with Denis Asia Pacific Pte. Ltd. 10:30 am Meeting with Hanami Foods Co., Ltd. 13:00 pm Group meeting Thu, 12 Mar 2015 7:00 am Tim departs Bangkok for USA

Technical Assessment Team 2

Travelers: 1. Mr. Eric Rosenberg, Vice President, Bryant Christie Inc. 2. Ms. Kate Lydin, Project Manager for Research and Evaluation, Bryant Christie Inc. 3. Ms. Dee Richmond, Senior Project Manager, USDPLC & USDBC ASEAN Representative 4. Ms. Surisa Techawiratchon, Project Assistant, USDPLC & USDBC ASEAN Representative Date Time Schedule USA Fri, 27 Feb 2015 5:20 am Eric and Kate depart Seattle, Washington for the Philippines Philippines Sat, 28 Feb 2015 21:30 pm Eric and Kate arrive Manila,

Check-in at Raffles and Fairmont Makati Hotel Sun, 1 Mar 2015 Refreshment 13:50 pm Dee departs Bangkok for Manila 18:20 pm Dee arrives Manila,

Checks-in at Raffles and Fairmont Makati Hotel 20:00 pm Dinner meeting Mon, 2 Mar 2015 7:30 am Meeting with Commodity Quest Inc. 10:00 am Meeting with Liwayway Marketing Corporation 16:00 pm Meeting with Century Pacific Group Tue, 3 Mar 2015 9:30 am Meeting with JBC Food Corporation 12:00 am

15:00 pm Meeting with Bakerite Visit to a Hopia producer and retailer

Wed, 4 Mar 2015 7:30 am Meeting with Ideal Macaroni & Spaghetti 10:00 am Meeting with RAM Foods Inc. 13:00 pm Meeting with FAS Manila 16:00 pm Meeting with Universal Robina Corporation (URC) Thur, 5 Mar 2015 6:50 am Eric and Kate depart Manila for Ho Chi Minh City, Vietnam 13:10 pm Dee departs Manila for Bangkok Vietnam Wed, 4 Mar 2015 11:20 am Surisa departs Bangkok for Ho Chi Minh City 12:50 pm Surisa arrives HCMC,

Checks-in at Intercontinental Asiana Saigon Hotel Thur, 5 Mar 2015 8:30 am Eric and Kate arrive HCMC,

Check-in at Intercontinental Asiana Saigon Hotel 11:00 pm Group meeting 14:00 pm Meeting with FAS HCMC Office 16:00 pm Meeting with TMT Co., Ltd. Fri, 6 Mar 2015 9:00 am Meeting with Chef Norbert Ehrbar 10:30 am Meeting with Cong Ty Co Phan Sx – TM Tai Tai 14:00 pm Meeting with Acecook Vietnam Joint Stock Company 16:00 pm Supermarket survey Sat, 7 Mar 2015 9:00 am Meeting with Nguyen Thao Co., Ltd. 10:00 am Meeting with Cong Ty Tnhn Mtv Tm Nong San Huu Tri 13:00 pm Supermarket survey 17:00 pm Eric, Kate, and Surisa depart HCMC for BKK


Thailand 18:30 pm Eric, Kate, and Surisa arrive Bangkok

Eric and Kate check-in at InterContinental Hotel Sun, 8 Mar 2015 Refreshment Mon, 9 Mar 2015 8:30 am Meeting with UFM Food Centre Co., Ltd. 10:30 am Meeting with Daika (Thai) Inc. 13:30 pm Meeting with Wang Chemical Co., Ltd., Tue, 10 Mar 2015 10:00 am Meeting with JR F&B Company Limited 13:00 pm

14:30 pm 16:00 pm

Supermarket Survey Conference call with Ferna Corporation Conference call with Jill Sandique

Wed, 11 Mar 2015 9:00 am Conference call with Denis Asia Pacific Pte. Ltd. 10:30 am Meeting with Hanami Foods Co., Ltd. 13:00 pm Group meeting Thu, 12 Mar 2015 7:05 am Eric and Kate depart Bangkok for USA

Trip Results: Bryant Christie Inc. (BCI), an international affairs management consulting firm based in Seattle, was selected to conduct the Technical Assessment for the proposed EMP projects: E13MXSAE10: In-Country Technical Workshops on Baking with Pea Flour in Southeast Asia, E14MXEM102: Increasing the Demand for U.S. Pulse Ingredients in Southeast Asia, and E14MXASEA4: Providing Southeast Asian Buyers with Greater Technical Knowledge of the U.S. Dry Bean Industry. In November 2014, The USDPLC and USDBC Regional representative began working with BCI on the plan to travel to Southeast Asia to meet with our trade contacts to evaluate the feasibility of the EMP projects of interest as well as to make recommendations for implementation of these projects and other future programs. In January 2015, we liaised with BCI team and our local contacts on the arrangements for the trip, including scheduling of meetings and making travel arrangements. Travel notices were sent out to FAS Jakarta, Kuala Lumpur, Manila, Vietnam, and Bangkok on February 18. Two technical assessment teams traveled within Southeast Asia during February 27 – March 12 to conduct 41 interviews with snack processors, bakery resources, importers, meat processors and canners. The countries visited were Indonesia, Malaysia, the Philippines, Vietnam, and Thailand. The team visited the FAS Offices in Jakarta, Kuala Lumpur, Manila, Ho Chi Minh City, and Bangkok. Of the interviews conducted, 5 were FAS offices, 12 were importers, 8 were bakery producers or resources, 6 were food manufacturers, 5 were snack food manufacturers, and 5 were canners. Supermarkets and relevant retailers in each market were also visited. A list of these meetings and brief summary of each market are provided below.

Indonesia A List of Meetings

Mr. Vijay Singh, Manager - Imports, PT. Jakarta Sereal (Importer) Mr. Harianto, R&D Director, PT. Heinz ABC (Food Manufacturer) Mr. Gordon Bradley, Advisory to Bakery Industry Chef Haryanto Makmoer, USDA Council of Chefs Mr. Ali Abdi, Agricultural Counselor, FAS Jakarta Mr. Mario Tjahjadi, Director, PT. Magnolium Mandiri Indonesia (Importer) Ms. Ms. Alfi Puruhita, FreSoia Food (Tempe Maker) Ms. Irene Hadiprodjo, R&D Manager, PT. Nutrifood Indonesia (Food Manufacturer) Ms. Yunawati Gandasasmita, Head of Innovation Development Center, Kalbe Nutritionals Ms. Tjia Liang, President Director, PT. Foodindo Dwivestama Ms. Jami Rahardjo, National Sales Manager Food & Drink Division, PT. Ekacitta Dian Persada


Brief Summary of Market

General sense is that there is a lot of potential for growth in Indonesia. Indonesian market is mostly a snack market, so that’s where most of the pea/bean imports

end up going. Primary imported products: yellow peas, green peas, red beans, black beans, broad beans,

garbanzo beans, marrowfat peas (for specific markets during Ramadan). Canada is the main U.S. competitor in terms of quality, but customers prefer the USDA logo.

Availability also appears to be better from the U.S.; Chinese are perceived as delivering an inferior product.

Compared to wheat flour, pea flour is more expensive. Soy flour is also cheaper because it’s already produced by many companies.

Indonesia is still a developing country, and as a result, is a very price-conscious market. Constraints

Price is the primary constraint faced in the market. Several R&D teams are experimenting with peas and beans, but can’t get past the

marketing teams to commercialize a pea/bean product. Peas are an unknown product in Indonesia; aroma and taste of peas are undesirable traits. Lack of knowledge of the nutritional benefits of using pulses or pulse ingredients or the

competitive advantage of using peas/beans compared to alternatives. Consumers don’t have a good reason to switch from soy (tempeh applications). U.S. suppliers aren’t always willing to sell dry peas/beans in small enough quantities to get

the momentum going in Indonesia; many suppliers are slow to respond to questions/requests from importers.

Few pea flour companies, but plenty of large wheat flour companies with better credit and distribution.

Storage of pea flour can be a problem given the humid climate in Southeast Asia (spoils quickly). Wheat flour doesn’t have this problem because it is such a fast moving item.

Tempeh producers complain about the round shape of dry peas, because their machinery is made to handle soy, which is oval shaped. This results in a lot of breakage.

- Pea flour also requires more water, which raises marginal costs. - Pea flour absorbs more oil during the frying process, so gets soggier faster.

Opportunities

Indonesian consumers are always looking for something new; for that reason, some importers believe the market for bakery products has a lot of potential.

Snacks are a big opportunity in Indonesia - most snack manufacturers have the capacity to expand (and possibly export their products), they just aren’t being pushed to do so.

Meat processors are asking about pea products as a possible meat substitute, but they want to know more about the protein content.

One importer is starting to import pea protein concentrate (80% pea protein, 20% filler) which could be used in nutritional bars. The idea is to fortify products with higher protein content.

Beverages for red/black beans is a potential opportunity, but the taste appears to be too strong with peas.

Gluten-free trend is slowing becoming a bigger deal in Indonesia. Recommendations

General USDPLC and USDBC need an importer who will champion dry pea/bean products. Mario

Magroho Tjahjadi is a good possibility. Need to develop a marketing message that highlights the nutritional/functional benefits of

pea/bean products in different applications. Consumers have to have a reason to buy it. What is the U.S. pulse advantage?


In-house marketing training could be very helpful for companies that have already experimented with peas/beans in R&D.

Snacks and baking should be the primary focus. Importers For pea/bean flour applications: technical process support (e.g., when customers do trials

and have a problem, importers need advice on the technical side). For snacks: primary focus should be on the business/trade side. Other processed application ideas for beans would be helpful (besides paste) and any

recent studies on health/nutritional benefits. Food Companies Communicate the message that using pea flour can increase the end product’s yield.

USDPLC needs to figure out whether the increase in yield is enough to offset any price differential with pea/bean alternatives (e.g., wheat, soy).

Ensure that bakery seminar participants get samples soon after they participate. Get the product made first, then go to the bakeries with the products and work with them to

get some more products produced. Try to build momentum this way.

Malaysia List of meetings

Mr. Chris Rittgers, Agricultural Attaché, FAS Kuala Lumpur Dr. Voon Yit Yang, General Manager, InterFlour R&D and Commercialization Center (Resource) Mr. Don Yong, Chairman & Bakery Instructor, Malaysian Institute of Baking (Bakery Resource) Mr. Nick Loh (Importer) Dr. Ken Davis, Managing Director, Spectrum Ingredients (Importer) Mr. Jean-Philippe Lamy, Purchasing and Supply Chain Management Director, Denis Group (Canner). Brief Summary of Market

Two main importers: Spectrum Ingredients and Nick Loh. Halal certified products are everywhere and a lot of customers will want to see it on

pea/bean products. Peas, beans, lentils very popular with the Indian population in Malaysia (roughly 8% of the

population). Pea snacks and canned beans are the main pea/bean products in Malaysia. Gluten free trend is slowly starting to become a bigger deal. Canned beans: are mostly being sourced from Argentina and India, not the U.S.

- One exception is Great Northern Beans from the U.S. Most yellow split peas are being sourced from Canada—the price is better and there isn’t a

lot of yellow pea production in the U.S. - U.S. is the most competitive in terms of green peas.

Red lentils being purchased from Canada. Constraints

Halal certification is a must – does any U.S. supplier have it? - Catch-22: Need a U.S. supplier to get a halal cert from Jabatan Kemajuan Islam

Malaysia (JAKIM), but suppliers won’t pay for the halal cert unless they think there’s enough demand.

Quality from the U.S. is typically good, but small pea size recently has been a problem for snack makers.

Marketing teams at most food manufacturing companies are very young, and there’s a lot of turnover. This makes activities targeting them less effective.


Lack of awareness regarding pea/bean products (how to use them, where to buy them, etc.)

Opportunities

Dry peas and beans will sell if price and competition isn’t an issue (FAS). Extruded pea snacks are a big opportunity because they’re cheaper to produce than fried

snacks. Red bean drink is already popular in Malaysia, as is red bean ice cream; could try and

leverage this knowledge and apply to other bean products. Bakery products are an opportunity if the nutritional advantage can be effectively

communicated and if it makes economic sense for the bakeries to shift from wheat. But that messaging needs to be unified.

Recommendations

Stick with technical and educational seminars because people still aren’t very familiar with pea products (less true for beans).

- If targeting bakeries, probably need to target the bigger ones; it’s hard to get the small bakery shop/outlets to participate because they’re family size businesses and can’t take much time off

Reverse trade missions are very effective and should continue. Selling point is health (for bakery products)—fiber, protein, etc. Start with the

manufacturers first, then slowly penetrate the consumer market. Western recipes should be emphasized over local (Malaysian Institute of Baking).

- If you could get a famous bakery chef from the U.S. to do a demonstration here, a lot of people would show up just because it’s a famous chef from the U.S.

Consider utilizing the QSP program (i.e., use USDA funds to bring in a whole container of pea flour, then distribute it). Lots of companies are open to free samples if you just ask them; just have to ensure they know what they’re doing with it.

Provide Malaysian Institute of Baking with pea flour samples, brochures, leaflets, ideas on application, etc. for them to use in their bakery courses.

Consider approaching the flour millers in Malaysia (e.g., Bogasari is the biggest flour miller in the world) to gauge their interest in dry pea/bean imports.

Be more selective regarding the people who are invited to the activities; make sure they are willing to learn and will apply it.

(Importer): Customers are looking for more marketing support, but USDA won’t provide it unless the end-products are made with 50% U.S. ingredients. Could get around this if companies can say they use U.S. wheat. However, the trouble may be that these companies are purchasing wheat from several sources, so might not be able to say what percentage is from the U.S.

Philippines List of Meetings

Mr. Marty Panganiban, Sales and Marketing Manager, Commodity Quest Inc. (Importer) Mr. Philip Lee, VP – Purchasing, Liwayway Marketing Corporation (Snack maker) Ms. Daisy Engle, AVP Corporate Research and Development, Century Pacific Group (Canner) Mr. Benson Ng, Vice President, JBC Food Corporation (Snacks) Mr. Wilburt Wong, Production Manager, Bakerite (Bakery Resource) Mr. Henry Lim, Vice President, Ideal Macaroni & Spaghetti (Importer) Mr. Venu Kotamraju, Chief Operating Officer, RAM Foods Inc. (Canner) Mr. Ralph Bean, Agricultural Counselor, FAS Manila Ms. Judy Ly, Strategic Sourcing Manager, Universal Robina Corporation (URC) (Snacks) Mr. Peter Co, Ferna Corporation (importer) Chef Jill Sandique, USDA Council of Chefs (Bakery Resource)


Brief Summary of Market

US products held in high regard. Strong loyalty to US peas and beans. Snacking culture with pea snack very well developed. This can help when introducing peas

to other good applications. - In terms of the general snack market, there is greater interest in premium snacks, but

70% of the market remains very cost-conscious. If snacks are positioned at the high-end, then success would likely be more limited in terms of volume sold because fewer people in the country could purchase the product.

Not a big baking market. Low cost ingredients desired. Use of flexible packaging is growing in the Philippines, but there are a number of challenges

to increasing the use of this type of packaging. Cans are still the primary product container for these types of products.

Not significant consumer concern/interest in non-GMO, allergen issues. These are not selling points for US dry beans, peas and lentils.

For products to be of interest, they need to be cost effective. Functional uses are helpful but only if cost effective.

- One company, JBC is looking to move away from the piso (one peso) market and is open to using/experimenting with higher cost raw materials. That said, use of the product must be viable (e.g. accepted by consumers, tasty, and cost-effective).

Product testing for some products can be tested by school children pending approval by the Food Nutrition and Research Institute (FNRI) and the Department of Education.

Marrowfat pea is bigger with less pea taste. Desired by some companies. US does not really offer.

Freshly ground flour is a necessity for some R&D managers. Freshly ground flour has a different color and texture than flour that has been ground and shipped from US.

Upcoming success stories include. - Black-eyed peas launching in 2015 (Ideal) - JBC launching yellow pea snack in 2015 (JBC)

ASEAN integration could be seen as an opportunity or as a challenge for those in the region. It may come down to where the lowest cost of production and ingredients are located.

Constraints

There are cheaper alternatives for same functional benefits – bakery sector comment (modified starch is more common and cheaper – one interviewee suggested it may be as much as half the price of pea flour).

Taste and smell are issues with pea products as replacements (meat replacement – texturized vegetable protein and in bakery sector).

- Product performance not great so far on these uses. Consistent supply of pea flour and products from US has been an issue. Difficult to promote health benefits of these products because peas are not associated with

healthy products (e.g. fried snacks). Philippine companies are interested in selling into Middle East to take advantage of large

Philippine population there. But can’t do so because food colorings (red) are alcohol based and not allowed. This was specific to the corned beef product.

Filipinos less familiar with beans. Need to better understand taste and color differences. Chickpeas and lentils are not common products to Philippine consumers. Dried beans and lentils take too long to soak and cook. Options to reduce prep time? Cakes made from pea flour were generally softer, but the cakes were smaller too. This does

not leave consumers with a good impression. US suppliers are not aggressive about selling product in the Philippines; US suppliers are

less responsive in terms of communication. Argentina, China, UK, and Canada are all competitors for US pulse products in the market.


Opportunities

Replacement for defatted soy flour? (soy flour supply not good). Whole pia is a possible market (mung bean filling replacement or in dough). There is initial

interest in the product, but marketing has not been widely conducted because the necessary supply of flour is not readily available. Two interviewees believe this could be a substantial opportunity. Follow-up could be completed with Chef Wilbert who may have a contact with Mr. Ube.

Seminars and cooking demos for foodservice. - One segment that has not really been targeted yet are the caterers – maybe reach

out to them. - Make sure that the demos and seminars are reaching the decision makers. Though

educating nutritionists could be valuable, they may not have the influence to determine which products should be sourced.

New pulse ingredients could be of interest. Pea flour can make for crispier product for snacks, provide volume extension and good structure for bakery.

Help RAM sell into other ASEAN countries (were looking for distributor in Vietnam). RAM looking to do pea starch vermicelli. Interest in TVP and pea beverages Century Pacific looking for toll manufacturer of pork and beans Tempea from Indonesia may be a good fit for school children in the Philippines. This would

provide them with added nutrition during lunch. Maybe consider a pilot study (FAS). Recommendations

USDPLC needs to better define functionality and cost proposal against competing products including modified starch and tapioca, potato and wheat flours.

Contact Henk Hoogenkamp about serving as consultant in SE Asia for TVP. Contact Foodflow about TVP. Provide more personalized in-house training (RAM for vermicelli, Century Pacific for TVP). Potential interest from RAM regarding hummus. Will send garlic hummus recipe to Venu. RAM is interested in learning more about technologies on canning (e.g. 2 seam vs. 3 seam).

Maybe provide a training on packaging methodologies. Looking for formulas to copy. The sample box provided during the extruded snack course at

NCI was particularly helpful for JBC. Opportunity for RAM to sell back to the US using US ingredients. Large Asian population

and they know how to reach it. Also looking for help selling into other SE Asian markets. Would benefit from DPLC contact list in other markets.

Can DPLC provide technical assistance on pea starch for vermicelli? Is there a US supplier (even if from China but using US ingredients)?

Seminars and cooking demos for foodservice. Check to see if URC flour division will sell flour to other companies. General technical training workshops (caterers, foodservice, snacks, bakery etc.) based

around new assortment of products would be well received. Consider bringing pulse flour in as a starch rather than a flour. This could lower the duty

required. When bringing technical expertise, the expert should be aware of the formulations specific to

the Philippines. The market is quite advanced in processed meats and bakery, so an expert should be sought that has knowledge beyond what the market is already aware of (e.g. manufacturers in the Philippines have already been able to replace 85% of hot dogs with meat substitutes, so an expert who seeks to provide information on how to include 50% meat substitute would not be valuable for the market).

Provide a complete list of pulse products offered by US suppliers. The list should include product specifications, possible applications for the product, and price information.

Be clear about deliverables for those who attend seminars/trainings. Maybe have them do demonstrations or “train the trainer” sessions upon return (FAS).


Vietnam List of meetings

Mr. Dwight Wilder, Senior Agricultural Attaché, FAS HCMC Ms. Dang Uyen Linh, Managing Director, TMT Co., Ltd. (Importer) Chef Norbert Ehrbar, Executive Chef, Nhat Nam Fine Foods Cong Ty Co Phan Sx – TM Tai Tai Acecook Vietnam Joint Stock Company Nguyen Thao Co., Ltd. Cong Ty Tnhn Mtv Tm Nong San Huu Tri Brief Summary of Market

TMT significant asset in market – interested in new products, aggressive marketer and promoter; but hoards customers and discourages new entrants.

Yellow peas have not been successful. However, the cost of yellow split peas and green peas is not an issue.

Market tried pea flour but structure was not good. Flavor/taste issues as well. TMT has lost one customer because US could not supply marrowfat. Vietnamese consumers not concerned with allergen issues or healthy attributes. GMO

matters because Vietnamese companies export. Non-GMO is helpful. Snack market is driver for pea sales. Per capital consumption of snacks is increasing.

(FAS). Canned peas and beans, frozen and dried also found. TVP used extensively in Vietnam; meat replacement in sausages and for veggie dishes;

Jollibee uses TVP in burgers. Vietnamese like smaller beans. Market for US products is primarily in Southern part of the country. Northern part is closest

to China and gets Chinese product. Consumers choose products based upon quality and price of products. The young

population of Vietnam is growing and seeking new products. There is also higher disposable income now.

There are many applications for pulse products in Vietnam (e.g. ragu, soup, salad, fried rice).

Consumers favor canned products labeled with quality seal from Vietnam. Consumers do not favor the flexible packaging – prefer cans or glass. Consumers do not choose product based on origin. Chef Norbert says that celiac disease/gluten intolerance is rising – this could be a niche

market. Pea flour could potentially be included in this. Hotels are looking into baked products without gluten.

Constraints

Quality concerns raised. - Peas are sometimes too hard, consumer want softer end product.

Bakeries and food manufacturers often get it wrong when trying pea/bean samples (flours) without ongoing technical assistance available. They then write off the product.

Do not have proper knowledge for noodle manufacture with pea flour. Needs to better understand differences in pre-cooked and uncooked flours and availability

of value added products from US. Need more information on health and nutrition attributes of peas and lentils – is there a

“certification” of healthy attributes from DPLC? For frozen product, they purchase dried and rehydrate and freeze. Product is harder than

IQF from India. According to Nguyen Thao Food, Canadian product is better than that of the US. He favors

the color of Canadian peas, Canada has a lower stone count, Canada has softer peas.


Hotels and bakeries generally use scratch ingredients, not premixes Chefs from international hotels often drive purchasing decisions. However, in local hotels it

is often the purchasing manager telling the chefs which products may be used. Extrusion equipment not present in Vietnam. Opportunities

TMT Very interested in hummus (Agrisource will provide with recipe book when return to Vietnam next).

Vietnam has big vegetarian culture (Buddhists). Noodle opportunity with Ace Cook. Need consultation on vermicelli manufacture. Interested in beverages. TMT looking at new beans – good fit for dry bean trade mission. Pea flour retains moisture and so there are opportunities in bakery applications. (TUV

Rheinland lab in Ho Chi Minh has done lab work on pea flour). Tataco (brand: Tai Tai) opening new factory in 2016 and will have more production capacity

to try new products. - Plans to try yellow peas for snack. - Chickpea milk. - Interested in roasted or baked snacks as heathier alternative. - Uses marrowfat from UK for wasabi peas (exports some to Korea). Could replace with

US product if marrowfat available. The size of peas that they are seeking for this product are 400 peas/100 grams.

- Interested in learning more about new products/applications and techniques for pea, lentil, pea flour, pea starch.

- Wants to know how to make product softer. - His production of wasabi green peas increases from October-January in preparation for

Lunar New Year. - Interested in learning about extrusion, but it does not seem they have extruding

equipment. Nguyen Thao Food looking to replace local white beans with US navy bean for canned

product. - Just started selling chickpeas in December (success story?) - Needs education on bean varieties from US and differences (e.g. navy vs great northern) - Interested in learning US applications for bakery sector. - Perhaps interested in including the USDPLC seal on chicken can – should follow up with

Linh on this. RAM foods from Philippines was looking to distribute in Vietnam through TMT but turned

down by Ms. Linh. Perhaps opportunity to help them find other distributor. Potential for inclusion in food for infant growth or formulas for women, babies, toddlers.

(FAS). Recommendations

Contact Abbot Laboratories (makes Ensure and other protein beverages. Good distribution in SE Asia). See if they have done work or have product with peas/beans.

Contact Aunt Michelle brand bean supplier from California and determine/contact importer in Vietnam.

Eric Roosli is retired baking chef based in Thailand that could be good consultant to DPLC for baking applications.

Consider one-on-one training for large targets. Is there a test for hard seeds prior to frying or rehydrating and freezing? Provide technical assistance to Ace Cook for vermicelli production. Connect with supplier

from China that uses US peas. - Issue: when they try the finished product using pea flour, the noodle is dry and cracks

easily. It is not elastic, which is what consumers want. - Want to know if US has modified pea starch, pea starch, flour


- Focused primarily on instant noodle production because of convenience in preparation for consumers

- They want samples of the vermicelli from China to study

Ace Cook suggested 2-3 day technical courses with one day of general info (which could include new products/ingredients/applications/health and nutrition information) and then small group breakouts depending on product of interest to end user (noodle, bakery, snack, etc.)

Contact Vietsoya about potential interest in pea/bean milk products (lead came from Cong Ty TNHH).

General workshops on available assortment of products would be helpful in addition to personalized training for more developed opportunities. General workshops/seminars would create initial interest, but Chef Norbert believes that follow-up with individual companies may be needed to show how the products can be best used in products.

Maybe consider partnership with Cantho University (food technologist program) to see if can get them to teach students about these products.

Providing samples of finished products from other countries that are created using pulse ingredients could provide ideas to companies regarding new possible applications.

Thailand

List of Meetings

Mr. Bobby Richey, Agricultural Counselor, FAS Bangkok Ms. Jiraporn Boonyapachote, Manager, UFM Food Centre Co., Ltd. Mr. Vicharn Aramvareekul, Chairman Advising Board, Daika (Thai) Inc. (Importer) Ms. Supanee Prasittisomporn, Managing Director, Wang Chemical Co., Ltd. (Importer) Mr. Pheerasak O.Suwan, Product Manager, JR F&B Company Limited (Importer) Mr. Athikom Trakulchaovalit, Research & Development Manager, Hanami Foods Co., Ltd. Brief Summary of Market

Thai market has perhaps seen more experimentation and implementation for pulse products than any other market (pea flour, meat replacement, pet food, snacks, canned, dry pack, etc). - Some products have failed (pea flour) due to taste and cost. Pea flour no longer available

from local supplier. Wheat flour is preferred. Health food market is booming; western food market is also growing.

- Chickpeas are benefitting from interest in health as, anecdotally, some doctors are telling patients that if they have stomach issues, they should eat garbanzos prior to meals.

- Baked beans are often eaten by women from breakfast as a way to maintain/lose weight. Thailand has a large western presence in certain areas (Phuket, Chiang Mai, Pattaya) where

pulses sell particularly well. Could be opportunities in the cosmetic and skin care area if research suggests any benefits. Australia is a competitive supplier of beans and peas due to their FTA; Canada is also

supplying the market and is favored by at least one large food company. Canadian price is better than US price for dried yellow peas.

Presence of strong supporter for pulse ingredients is a plus for this market (Wang Chemical) and to a lesser extent (Daika).

Thai cuisine not very pea or bean focused. India’s products are typically found in the wholesale market due to their cheaper price. Constraints

Partnering with UFM is a challenge because UFM is major wheat flour supplier and does not want to encourage a competing product (pea flour). There are few other alternatives for technical facilities for bakery training.


There are no local facilities for technical training related to use as meat replacement, in beverages, snacks, or noodles.

US food safety took a hit in Thailand as a result of a death related to imported US apples. Pea flour did not work out from a cost perspective. For fried chicken coating, pea flour came

to 55 Baht (per kg?) while wheat flour is 20 Baht. Slow response from AGT to technical questions. Taste is a constraint. Taste panel picked up pea taste when used at over 3% in chicken ball

application. Cross contamination between green and red lentils required hand sorting in Thailand in order

to sell green product. Tariffs are an issue (40% on pea flours) but starch tariffs are lower (10%). Functional and health benefits are difficult to sell because amount used in product

formulations is not large (3-8%). Snack maker had difficulty replicating lab results at NCI training on commercial products in

home market. US West Coast port issue played a role in limiting availability of US beans for an importer.

Importer’s clients complain about lack of product. It may be difficult to change the dietary habits of the older generation unless nutritional benefits of using a different product are touted. The younger generation is more open to the westernization of food.

Opportunities

Pulse ingredients in pet food is in advanced stage of testing. Results should be available within weeks.

Pulse flour shows good potential in meat replacement (chicken balls, fish tofu, sausages) – good binding agent.

Gluten free market is small but growing. Could be opportunity for cost reduction for meat processors. Less meat and more TVP. Also opportunities being explored for pea flour as coating for chicken nuggets, and in

bakery/pizza dough applications, and in noodles. For chicken nuggets, it has been observed that the use of pea flour as a coating helps color the product more quickly and absorbs less oil. These are desirable attributes.

Possibility to replace potato starch in noodles (not focus on replacing wheat flour, but instead on replacing potato starch.

Medical tourism to Thailand is big industry and particularly from the Middle East where pulses are more widely used. Could be opportunity to develop sales through institutional end users. Sodexo is large medical distributor.

Calbee developing new extruded pea-based snack for Thai market. Could be large opportunity for pulse-based beverage products. White bean extract is already

used in Nestle Slim-up product. US is known for offering better technical support. Canada, Australia do not offer any. Importer (JR F&B) interested in private label canning because notice a gap in supply from

others providing product to the canning market (S & W). He is interested in importing canned private label product (chickpeas, dark red kidneys, black beans; all in brine) from the US. This would be packed for the retail sector.

Recommendations

Obtain results from Wang Chemical of pet food testing and of fava bean and lentil testing in chicken sausage.

WANG has end-users that need technical support for: - Benefits of pea flour compared to modified starch. - Solutions for how to keep coated products crispy when microwaved. - Information on pre-cooked vs uncooked pea flour and their cost difference and uses. - Instant noodle manufacturing (in-house training from Mama).


In-house workshop for milling would be useful for some companies. Chickpea flour could have good potential for extruded snacks or as coating but presents a challenge to mill locally because of uneven shape.

Try to promote applications that would be in concert with wheat flour and that might replace other products like potato starch.

Research existing pulse uses in beverages in order to present examples of finished products in the marketplace.

Research cosmetic applications for pulses and consider EMP project to do some product testing, analysis.

Concern that if US does not continue marketing/promotional efforts, then China and/or India may take market share from the US despite the US conducting technical/promotional work previously.

Some pictures taken during the trip are provided below.

Meeting with Kalbe Nutritionals, Indonesia Meeting with Ms. Alfi Puruhita, Indonesia

Dinner Meeting with Chef Haryanto Makmoer, In Jakarta, Indonesia

Red Bean Flavored (Ice Confection with Red Beans) in Indonesian Market


U.S. pea-based fried snack in Indonesia Meeting with Malaysian Institute of Baking, Malaysia

Attend U.S. – Southeast Asia Agribusiness Trade Mission in Kuala Lumpur, Malaysia

Supermarket survey in Kuala Lumpur, Malaysia

Meeting with TMT Co., Ltd., Vietnam Meeting with Nguyen Thao Co., Ltd., Vietnam

Meeting with Cong Ty Co Phan Sx – TM Tai Tai, Vietnam

Meeting with Hanami Foods Co., Ltd., Thailand


Industry Contacts:

Indonesia


Malaysia


Philippines

USDA Foreign Agricultural Service Manila Ralph Bean (Counselor), Bill Verzani (Attaché), Ramona (Ag Marketing Specialist), Joy Claridades (Ag Marketing Specialist) Office of Agricultural Affairs, American Embassy, Roxas Boulevard, Manila, Philippines Tel: 632-301-4900 Email: [email protected]; [email protected]; [email protected]; [email protected] Ram Food Products, Inc. Venu Kotamraju (Chief Operating Officer) 151 Paseo de Roxas, Makati City, Philippines Tel: 632 816 2101 – 04 E: [email protected] Commodity Quest, Inc. Marty Panganiban (Sales & Marketing Manager) Unit 2406 Union Bank Plaza Meralco Avenue corner Onyx Road Ortigas Center, Pasig City 1605 Tel: 632 7069966 Email: [email protected] Ideal Macaroni & Spaghetti Factory, Inc. Henry Lim (Vice President), Baby Dela Fuente (Marketing Manager) 33 Luna 2nd St., San Agustin Malabon City 1470 Philippines Tel: 63 2 283 6666 Email: [email protected]; [email protected] Liwayway Marketing Corporation Philip Lee, VP – Purchasing Main Office: 2225 Tolentino St., Pasay City, M.M., Phils, 1300 Tel: 63-2-844-8441 to 52 Email: [email protected] Bakerite Inc. Wilburt Wong (Production Manager) 921 R. Hidalgo Street, Quiapo, 1001, Manila City, Philippines E: [email protected] M: +639228186105 Universal Robina Corporation (URC) Judy Ly, Strategic Sourcing Manager, Corporate Procurement CFC Administration Building #13 E. Rodriguez Jr. Avenue Bagong Ilog, Pasig City, Philippines 16000 Email: [email protected] Century Pacific Group Daisy G. Engle, AVP Corporate Research & Development 32 Arthuro Drive Bagumbayan, Taguig City, Metro Manila, Philippines Email: [email protected] Ferna Corporation Peter C. Co, General Manager 16 Bernardo St., San Rafael Village, Navotas City 1485, Philippines Email: [email protected] Tel: (632) 253-6131 & 251-5534 Jill Sandique 33 Sunrise drive, Cubao, Quezon City, Philippines 1109 Tel: 632 497 8811 Fax: 632 721 7022 Mobile: 63 922 8262673


Vietnam



Thailand

Documents

EMP Market Assessment Trip Report 2015 - …files.ctctcdn.com/781eeece401/6770c0e2-2bfe-44dc-bbc8-c63c71ef57… · EMP Market Assessment Trip Report Page ... 16:30 pm Meeting with