By: David Rincon, Managing Director Daabon Japan
DAABON Organic Japan (DOJ)
has been exporting organic
bananas to Japan since 2001, and today we have the privilege of being
one of
the leading companies in the organic bananas business in Japan.
Our retail partners work
passionately to position our
produce in the high end of the segment through quality and fair-trade
commerce.
This success is thanks to the hard work and commitment of all
participants in
the supply chain, our trusted partners and customers.
Over the past ten years
Japan has worked towards
establishing free trade agreements with several South American nations.
We look
forward to the successful outcome of the negotiations between Japan and
Colombia on an Economic Partnership Agreement (EPA) in 2021. The EPA
will be
critical and could boost our competitive position.
Looking across the region,
South Korea represents a
different set of challenges. Since 2016, South Korea and Colombia signed
and
executed a Free Trade Agreement (FTA). The FTA provides a competitive
edge for
our business by reducing import tax to zero. Therefore, by 2019 DOJ had
reintroduced organic bananas in collaboration with a major local fresh
food
retailer. DOJ is one of the six Colombian exporters to South Korea and
the only
one supplying organic bananas in this market. However, the last 12
months have
been challenging as longer transit times, increasing quality
requirements and
the uncertainties in maritime logistics throughout 2020, have tested the
resilience of the business.
In addition to
consolidating its position in the organic
banana business in Japan and South Korea, DOJ is trying to introduce its
fresh
fruit business to a third country in the region; China. Considering that
China
already allows Colombian banana imports, but that no Colombian company
has
managed to establish successful recurrent volumes, there is a gap in the
market
that DOJ is attempting to fill. The task will not be an easy one, as
Asian
retailers demand fresh fruits with perfect cosmetic conditions. If,
however,
the demands are successfully met, millions of Asian consumers are
willing to
pay premium prices for beautiful organic fresh fruits.
Organic Mountain’s
“wild” Hass Avocado project
One of the most ambitious
projects in the fresh produce
space for DAABON Organic Japan (DOJ) over the next two years will be to
deploy
a perfectly structured, export oriented and highly differentiated
organic Hass
avocado production. “Tolima” farm, in the foothills of the grand Sierra
Nevada
of Santa Marta, hosts 23 hectares of this rare product, well over 1,000
metres
above sea level. There is enough capacity to more than triple the
acreage
planted, so this is just the beginning.
Investments took place in
2020 intended to provide
irrigation to the orchards as well as the construction of a modern
classification and packing facility, intended to comply with the strict
phytosanitary protocols agreed between Colombia, Korea, the EU and other
regions. The classification and packing facility can also provide its
capacity
to external avocado parties, as well as processing other types of fresh
fruits,
such as Persian lime.
By integrating all the
blocks in the chain: agriculture,
modern classification and packing, multi-modal logistics, aggressive
marketing
and sales efforts leveraged by DAABON’s global network, we should be in
a
position to become a world class player in the organic avocado industry.
2021 will be the year to
introduce our organic Hass avocado
to Japan and, hopefully, South Korea (if the corresponding phytosanitary
protocol is agreed with the latter). Colombia also has an agreement in
place
with China, but it requires specific adjustments to make it practical.
In
Japan, after several failed attempts and lots of raised expectations,
there is
no excuse not to offer the differentiated taste of Colombian Hass
avocado in
this sophisticated and highly competitive market.