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Current Position:Home » News » Processed Foods » Topic

Processed fruits represent a great business opportunity

Zoom in font  Zoom out font Published: 2019-02-27
Core Tip: : agronegocios.co
Colombia is the ninth biggest supplier of exotic fruits worldwide. Thanks to its geographical location and its mountain climate, Colombia's fruit production has consolidated in the country, and the sector has managed to make its way abroad.

However, the international markets demand more than fresh fruit. Exports of processed fruit from Colombia reached US $ 92.75 million in 2018, i.e. 12% more than in the previous year. These products include compotes, preserves, dehydrated fruits, pulps, concentrates, frozen fruit, jams, and sauces.

"They are two different markets," said Luz Dary Naranjo, the head of International Business at Nutrium SAS, a fruit processing company located in the Valle del Cauca. Naranjo said that the fresh fruit market was specifically allocated to the large chains and that its packaging, health, presentation, and cultivation conditions were very different than the ones used by the agricultural industry, whose main purpose was to process the products to convert them into raw material that are useful in the food processing process.

"Basically, what we do in this process is transform the fruit into pulp for the food industry so it can be used to make different preparations, such as fruit drinks, ice cream, yoghurts, mixtures, liquor bases, jams and compotes, among others," Naranjo said.

This company works with a portfolio of ten fruits that includes Colombia's common mango, which accounts for nearly 65% of its export sales of frozen pulp, banana, guava, blackberry, lulo, strawberry, cape gooseberry, papaya, and tree tomato. This pulp is sold in two presentations, in aseptic packaging, which is an automatic process where the pulp is packed and the final product does not require to be refrigerated or frozen to be transported or stored.

All the production is packaged in 65 gallon drums, which are shipped inside dry containers. Nutrium exports 300 containers a year, which is equivalent to 6,000 tons of fruit pulp. "Although Colombia is a great exporter of fresh fruit, processed fruits represent a great business opportunity where we can obtain relevant competitive advantages," said Luis Fernando Marin, the general manager of Nutrium.

According to ProColombia, the US is the main destination of Colombian processed fruit exports, with 56% of the market. In 2018, national sales to this country, which accounted for 45% of Nutrium shipments, grew by 19% over 2017 and invoiced US $ 52.14 million.

Fresh & Natural, a company dedicated to the research and development of semi-processed products, or products that undergo a primary process which tries to preserve the specific characteristics of the product, also exports its products to the US, specifically to California, Texas, Florida, and New York. Despite working with Tahiti lime, coconut, tamarind, and other tropical fruits, their star product is the soursop.

"Colombia is the main producer of soursop and it could plant 200 times the area it has, but unfortunately managing that fresh fruit is a challenge and it is almost impossible," said Carlos Quintero, the Business Manager of the company.

The product is matured in a technical way preserving its sugar levels, then it is disinfected, peeled and flaked by hand, antioxidants and natural preservatives are added to preserve its whiteness, and it is packed in soursop-shaped bottles and bags. "It is not pulp, it is the whole flakes of the fruit made 100% by hand and handcrafted under technical supervision," Quintero stated.

Even though Fresh & Natural's main market is Chile, the company also sends its products to the Dominican Republic, Panama, Canada, Puerto Rico, Curacao, Holland, Spain, Thailand, Sri Lanka, and Taiwan.

The processed fruit market is not only growing at the national level. According to Euromonitor, in 2017, world imports of processed fruits and vegetables reached US $ 50.898 billion and increased by 6.3%. By 2022, world consumption of processed fruits and vegetables is expected to reach US $ 62.258 billion.

Supermarkets are the distribution axis
Even though there are multiple sales and distribution channels, supermarkets continue to lead the way as the most important channel worldwide for the trade of processed fruits and vegetables, with 37.2% of global sales in 2017, equivalent to US $ 19.265 billion. According to Euromonitor, the most common channels for processed foods are supermarkets, followed by hypermarkets, small independent grocery stores, discount stores, mixed retailers, and Internet retail.

 
 
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