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Background Company / industry - food and beverage

Malaysian food and beverage industry is rich as its tropical and agricultural resources reflecting diverse cultures in society malaysian food industry is enriched with Malay, Chinese and Indian food combination which gives an asian touch. Increasing consumer awareness in nutrition value and food fortification for healthcare has created the demand for functional/healthy minimally processed fresh food, organic food and natural food flavors from plants and seafood. The Malaysian food and beverage market is becoming increasingly sophisticated and is supplied by both local and imported products. The strong economic growth in the late 80's and early 90's contributed to major changes in consumer purchases and consumption patterns. Malaysians living in urban areas are relatively brand conscious, and they prefer to shop in stores, which offer them convenience and good product selections 15 . Lifestyle changes have led to an increase in the demand for convenience food and health food. The food processing industry is predominantly Malaysian-owned 16 . In Malaysia, the food industry is dominated by small and medium scale companies. The major sub-sectors are the fish and fish products, livestock and livestock products, fruits, vegetables and cocoa. In line with the governments emphasis on the agriculture sector, the processed food and beverages industry had become an important component of the agro-based industry. In 2010,

Opportunities
The Malaysian food and beverage retail market is expected to grow by around 10 percent per annum.

Malaysian households spend around 24 percent of their household income on the purchase of food and beverage on average.

The Malaysian Government plans to develop its food processing industry with a particular emphasis on halal food products, which have the potential to expand into international markets.

This also provides an opportunity for New Zealand exporters to cooperate with the Malaysian food processing industry and participate in its plan for global expansion

Malaysia's own food and beverage industry is miniscule (on average 2.75% of the GDP for the last eight years), which is why Malaysia is highly dependent on imported food ingredients and consumer products, despite of its potentials. In 2008, the production for canned pineapple was 14,713 tonnes, a decrease of 15% from 2007. Productions for rice, wheat flour and sweetened condensed milk gained momentum, registering 7.63%, 3.03% and 1.41% y/y respectively, their fifth consecutive year of production growth since 2004. Other food productions items have not fared much better. Canned pineapple posted a 14.68% y/y plunge in production figures in 2008. Production for frozen shrimps, crude coconut oil, margarine, blended cooking oil and biscuits retreated after the cost of production drastically shot up in 2008.The outlook for the food and beverage sector remains cloudy. Sales of food stables remained compressed due to consumer thrift. They are spending roughly 20% of their disposable income on food. According to BMI's forecast, Malaysia's food consumption is expected to grow 9.4% in 2012 in local currency terms and 12% in per capita terms driven by Malaysia's vision to be a high income society and the country' s continued economic development. Going forward, it is expected that the growth in consumer spending on food and beverages will rebound together with the synchronized global economy's recovery in 2010.

Evolution Problem/issue/opportunity: Conceptual definitions Contextual explanations Practical illustrations

All the above must be supported by facts and figures and include the necessary citations of sources