South Korea is known to the world as a tech giant, with companies like Hyundai and Samsung. Not many people know that S.Korea is also a regional player in the fruit industry in Asia.
Jeff Jun, CEO of Top Fruit Co. in South Korea says, “We produce a variety of fruits, namely; strawberries, peaches, Shingo pears, Fuji apples and persimmon. In Korea exporters like us are only able to trade and do the marketing of fruits. Exporters and trading companies are not allowed to grow the fruits and vice-versa, therefore; we need to purchase fruits at a high price from farmers.”
Given the fact the Asia has a lot of Agricultural giants, countries such as Korea must choose its crops and markets strategically. “Our main markets are in Taiwan, Singapore, Hong Kong and the USA. Taiwan is a very strong market for us, since we grow some fruits that are available in China, and since Taiwan has political problems with China, it purchases fruits such as Fuji apples and Shingo pears from Korea."
Jun added that they are also a cheaper alternative for similar produce coming from Japan or the US. Top Fruit has strong partners in Taiwan such as supermarkets, importers and wholesalers. 2,400 out of 4,000 Shingo pears are exported to Taiwan. This has spelled year on year growth for us,” says Jun.
Similar to the political case of Taiwan and China, policies have also helped producers sell their products in the domestic market. “For fruits that are produced in Korea it is normal to not find any competition from overseas. So for produce such as apples, pears and strawberries - only the local varieties are available. Since these fruits have relatively long shelf lives, they are normally stored for long periods of time, but of course they would only last a couple of months. During off-seasons it is normal to not have the said fruits available in supermarkets.”
Korean exporters are intelligent in terms of their marketing strategy. They are going to markets where they will face less competition, because of that market’s policies.
