Matrade expects increase in export of processed food this year

KUALA LUMPUR: Malaysia External Trade Development Corporation (Matrade) expects to see an increase in contributions from exports of processed food this year, after managing RM10.5 billion worth of shipments in the first half of the year.
Matrade CEO Dr Mohd Shahreen Zainooreen Madros said last year the segment contributed about RM20 billion.
“We are in a good trajectory, last year’s trade on processed food was about RM20 billion and that was like a 10% growth from the previous year,” Mohd Shahreen told reporters at the rebranding launch of the snack food brand Miaow Miaow.
He said if the trajectory is sustained, the segment exports is expected to rake in RM21-RM22 billion this year.
Mohd Shahreen said branding plays an important role in marketing the products overseas, and homegrown products and Malaysia’s halal certification “does carry weight”.
According to Malaysia Investment Development Authority (Mida), Malaysia’s major processed food exports in 2016 were edible products and preparations (export value of RM6 billion), cocoa and cocoa preparations (RM4.6 billion), prepared cereals and flour preparations (RM3.3 billion), margarine and shortening (RM1.3 billion) and dairy products (RM1.2 billion).
Miaow Miaow Food Products Sdn Bhd today launched a brand new packaging for its four variant of snacks.
Established in 1989, the Batu Pahat-based company already has a footing in 40 countries, and plans to increase its footprint to 20 more overseas markets by 2022.
Currently, about 66% of the snack manufacturer’s revenue contribution comes from exports, with Saudi Arabia being the main contributor at 20% followed by China.
Group managing director Chink Poh Cheng said the group which forayed into the overseas market in 1999, managed to grow externally due to good distributors in those countries.
Miaow Miaow registered revenue of RM53 million in financial year 2017, and aims to achieve annual turnover of RM100 million within five years.
Market research said the global snacks market is expected to reach US$620 billion (RM2.7 trillion) by 2022. The extruded snack market, in which Miaow Miaow operates, was valued at around US$50 billion in 2016.
The group which alluded to diversifying out of the snacks food market, has no definite plans to list on Bursa Malaysia in the near term.