Trends in wheat based products in S E Asia products in S.E. Asia

Trends in wheat based products in S E Asiaproducts in S.E. Asia

D R N A S I R A Z U D I NN O R I Z A D A B D R A S H I D

Topics to discuss …..p

H h th h t b d i d t h d th How has the wheat based industry changed over the years in S.E. Asia ??

h hi ff d h k l ?How has this affected the key players ?Consumers > Retailers / Distributors > Food Manufacturers > Flour Millers > Wheat SuppliersFlour Millers > Wheat Suppliers

How does Australian grains fit ????

S.E Asia

Closest source of wheat is of wheat is Australia

Bulk and container deliveries

Population of Southeast Asian NationsEstimate for 2010 and Projection for 2020Estimate for 2010 and Projection for 2020

Country Population 2010 Population 2020

Indonesia 242.97 267.53

l i 28 28 32 6Malaysia 28.28 32.65

Philippines 99.90 119.33

Singapore 4 70 5 02Singapore 4.70 5.02

Thailand 66.34 69.56

Vietnam 89.57 98.72

Cambodia 14.45 16.93

Laos 6.37 7.45

Myanmar (Burma) 53.41 59.13

Total 605 99 676 32Total 605.99 676.32

Source: U.S. Census Bureau

GDP growth of S.E.Asian countriesg

Flour Milling IndustryIndustry

More flour mills in the region with increased capacitincreased capacity

Indonesia flour mills have i d f th increased from the main 4 mills in 2000 to 15 mills in 2012 with 7.7MMT 7 7milling capacity

Indonesia is the largest wheat gimporter in the region – 6.3MMT in 2011-12

Improved milling technology Flour Milling Industry

Improved milling technology = Buhler and China made equipment = improved flour quality and Industry p q yconsistencyWheat gristing and more flour bl di f ili iblending facilitiesFully equipped QC laboratories –more testing and monitoring of more testing and monitoring of wheat and flour to produce consistent productpSales of flour in bags, tankers and retail 1 kg packsMandatory / voluntary fortification of flour

Flour mill getting more g ginvolved in R&D and

dproduct development

flInterflour R&D centre

Trends In Flour Milling Industryg y

i d l i b hBetter trained personnel in both Milling Technical support, Sales and Marketingand Marketing

Flour mills getting more i l d i & involved in R&D and product development

Flour mills producing

i l special ingredients to further improve

fl i l i di l

their products

Interflour special ingredients plant

Flour mills going into production

f d d of end products

Food manufacturers / manufacturers / distributors expanding into

i fl setting up flour mills

Flour mills

d l l ill i i h

Flour mills producing premix

Federal Flour Mill entering into the Baking Industry through their “Italian Baker” MassimoItalian Baker - Massimo

Improved processing

h l d technology and high level of mechanisation –raw material specification to achieve product pconsistency

Fully equipped

d i h d f i

QC lab to monitor raw material quality

Trends in the Food Manufacturing Industry

q y

Trends in the Food Manufacturing Industryg y

G t l ti / I d t t d dGovernment regulations / Industry standardsExport market requirements – certification / food

fsafetyProduct development – new ideasNutrition and HealthMore SMEs – greater demand on raw materialMore SMEs greater demand on raw material

Development in Food Retailin Food Retail

Bigger supermarket supermarket chains –TESCO, ,CARREFOUR with in-store b kbakeries

More distribution

Development in Food

More distribution network – road links / train

in Food Retail More outlets – cities

and suburb

Greater product availability – leads to increase consumptionp

Consumption of wheat based products(per capita / g / day)(per capita / g / day)

Consumption / capita of wheat based productsCo su pt o / cap ta o eat based p oducts

Bread consumptionBread consumption Wheat flour consumptionWheat flour consumption

6

6

5050

3

4

5

1.730

40

18

1

2

3 1.7

10

2018

0Indonesia Malaysia

k / it /

0Indonesia Malaysia

k / it /kg/capita/year kg/capita/year

Flour usage in Vietnamg

40%

10%

50%

Bread / BaguetteInstant noodlesO h50% Other

Sales of Wheat based products in VietnamS o b d p od

600

500

600Forecast sales

400Bread

200

300 CakesPastriesInstant noodles

100

200 Instant noodles

02006 2007 2008 2009 2010 2011 2012 2013 2014 20157 9 3 4 5

Source : Euromonitor International

Wheat Flour Consumption in Indonesiap

Biscuits

Household10% 70% sweet buns, 30% pan bread

Bread20%

Biscuits10%

7 , 3 p

Noodles60%

>70% instant noodles

Bread Talk

Holland Bakery

Speciality products sold in shopping mallsMiddle to high end marketGrowing market

Sari Roti

Bread production for mass market1000 bread peddlers90% of market share for low – medium market25% annual growth for past 5 years

Bread Industryy

This sector has the highest growth potentialChanging diet of the

iddl l middle class to consume more bread productsBread allows for more Bread allows for more creativity for new products –different pfilling and toppingSweet buns are the most

l f f b d popular form of bread product consumed

Bread Industryy

TechnologyTechnologyNo time doughLong fermentationgSponge and dough

IngredientsgFlourEnzymesImproversHealthy ingredients such

bili d bas stabilised bran, germ, multi grain, seeds, fibre

NoodlesInstant noodles = Instant noodles 14.5 billion packs consumed in Indonesia in 2010 ( d Chi @ (second to China @ 42.5 billion).

Consumption of instant noodles is growing @10%

Yellow alkaline noodles

Not much change in processing processing technology

Greater focus on making the product making the product healthier

Consumer trends

Improved economical status better spending power Improved economical status – better spending power, willing to payChanging eating habits. Eating bread is becoming a norm Changing eating habits. Eating bread is becoming a norm instead of luxuryMore Westernised food in the diet including fast foods –gpizza, hamburgers, wraps, pastries, cakes etcMuch travelled consumer – adapt to new food ideas

il M d teasily. More adventurousMore informed – better level of educationH lth Health concernsInternet marketing

Eating out culture in S.E.Asia has

d created numerous shopping malls with food courts

l i d il /Development in Food Retail / Hospitality

Australian Wheat Production (MMT)( )

35

ons

25

30

Mil

lio

15

20

5

10

0

5

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-20127 7 9 9

Source = ABS, ABARES estimates 2011-2012

Australia Wheat Export (MMT)p ( )

25

2.420

25

2.2

1.8

4

15

16.318.610

Container / BagBulk

314

5

02010-2011 2011-2012 (till

June 2012)Projected total

2011-2012)

Source : Wheat Export Australia

How does Australia wheat fits ……..

Australia is the closest producer of wheat to S E Asia Australia is the closest producer of wheat to S.E.Asia. Freight advantage and time of delivery

Australian wheat has developed a good reputation on quality over the years. This reputation has assisted in q y y pmaintaining customer confidence and market share. Deregulated market may jeopardise this with inconsistent and unreliable quality standards inconsistent and unreliable quality standards.

Australian wheat is a good base flour for many Asian Australian wheat is a good base flour for many Asian food products. This need to be further strengthen as competitor wheat begin to produce comparable quality

How does Australia wheat fits ……..

Australian white wheat give bright flour with good Australian white wheat give bright flour with good extraction rates. This has always been the key point in using Australia wheat.g

Low moisture of Australian wheat is good for milling g gyield and storage stability

White flour colour and good starch quality makes Australia wheat the preferred choice for Asian noodles. More research work and technical support need to be More research work and technical support need to be developed to allow end users to fully capitalise on these special attributes

Selecting and blending wheat for different applicationsapplications

P d t A t li C titProduct Australian wheat

Competitorwheat

Bread APH, AH DNS, CWRS,Yellow alkaline APH, AH, APW CWRS noodles

, ,

Instant noodles AH, APW, ASW Russian, OthersInstant noodles AH, APW, ASW Russian, OthersBiscuits ASW, Asoft SWW

The main challenge is to increase the % of Australian wheat in the blends / gristingAustralian wheat in the blends / gristing

Where does the Australia wheat need improving ..Where does the Australia wheat need improving ..

B i i i l i h t i ti / fl bl di i th Basic principle in wheat gristing / flour blending is the raw material cost and product performance.Millers are willing to change blending ratios if they can Millers are willing to change blending ratios if they can achieve target product performance.Australia wheat loses out on baking performance to DNS Australia wheat loses out on baking performance to DNS and CWRS. However, most millers use Australian wheat as their base and add DNS or CWRS.as their base and add DNS or CWRS.If the baking performance of AH can be improved (protein quality, gluten strength, dough tolerance and (protein quality, gluten strength, dough tolerance and bread volume), the % of AH in the blend will be increased.


R h d t b d t d t i th Research need to be conducted to improve the performance of AH under the Asian baking techniques / systemtechniques / systemUse of other ingredients such as selected enzymes th t ld f th h th f f AH that could further enhance the performance of AH need to be explored

f ll h h i hCost of enzymes are normally cheaper that using the more expensive US or Canadian wheat


Improving the protein quality of AH and APW will further Improving the protein quality of AH and APW will further secure Australian wheat share in the noodle market.

Th h h ld b di i d ll These research outcomes should be disseminated to all users of Australian wheat overseas.

More technical forum between Australian wheat suppliers and the market need to be organised.

Closer collaboration between Australian wheat suppliers and customers need to be further nurtured. The new generation of t h i l l i S E A i illi /f d i d t t technical personnel in S.E.Asia milling/food industry are not familiar with Australian wheat and do not have any affiliation / loyalty to Australia wheat.

Market needs to be informed …

Since deregulation the market did not Since deregulation, the market did not have any consolidated technical / quality information on the Australian Wh Wheat crop. There is no “excitement” on the Australia wheat industry – new yexciting varieties, new technology, new joint research ???Market cannot make informed buying Market cannot make informed buying decision without a good timely flow of informationGrainGrowers National Wheat Quality and Variety report is a good initiative.

Key Messages …y g

S E Asia is an important market for Australian Wheat S.E.Asia is an important market for Australian Wheat Industry. Indonesia, Vietnam and Philippines are important Indonesia, Vietnam and Philippines are important growth areasIncreasing per capita consumption of wheat-based g p p pproducts provides a great opportunity for the Australian wheat IndustryM i ti d ll b ti i d d More communication and collaboration is needed between Australian wheat industry players and the customerscustomersAustralian wheat dominance in S.E.Asia can be further secured with improvements in AH and APW.

Thank youThank you

Dr Nasir AzudinNH ConsultMobile [email protected]

Trends in wheat based products in S E Asia products in S.E. Asia

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