COVID 19 Impacts on ASEAN Countries

Article by: Hari Yellina (Orchard Tech)

Background of ASEAN Countries

The ASEAN (Association of Southeast Asian Nations) organisation consists of a group of nations that collates countries hailing from completely different backgrounds to focus on security, economic and political issues. However, the total influence of the group is severely limited. The countries in this group include Brunei, Indonesia, Laos, Myanmar, the Phillipines, Cambodia, Malaysia, Vietnam, Thailand and Singapore. The greatest struggles of these nations were witnessed during the Covid 19 outbreak.

COVID 19 Impacts

1. Price sensitivity is severely increased during the pandemic.
2. There are numerous shipping delays. Hence, it is crucial to establish diplomatic relationships during the Covid 19 testing times.
3. Importers may request flexibility with pricing and terms.
4. Nevertheless, there is a growing interest in imported fruit due to social media trends.

Points of Awareness

1. Cheaper competitors in the market: in some markets there is overlap between northern hemisphere and Australian seasons.
2. Importers + consumers continue to be price sensitive during the times of Covid 19 –they may choose ‘cheaper’ over ‘higher quality’
3. Particularly in markets with domestic self-sufficiency goals, non-tariff barriers can arise and disruption can occur. Have an established relationship with the importer to navigate during these times.

Opportunities for ASEAN Countries during COVID 19

Indonesia:

•Consumers demand for Australian citrus remain strong during the Covid 19 outbreak. Consumers are specifically requesting Australian citrus to be available at retail markets
•Currently there are no more seasonal window restrictions applied by Indonesian Government (unlike in previous years)
•Under IA-CEPA, tariffs on citrus were eliminated subject tocertain yearly progressions/quotas
•Popular varieties: Honey Murcot, Valencia, Navels, Afrourer, Daisy, etc
•Indonesia is also a market for class 1 and composite citrus.

Phillipines:

•Australia remains the top citrus supplieramong exporters from the southern hemisphere with 0% tariff under AANZFTA.
•Citrus is popular for snacks, offerings, corporate giveaways and celebratory gifts, especially during Covid 19.
•Increasing fresh produce availability through e-commerce and social commerce channels
•Popular varieties (sweet & easy peel): Navels, Valencias, Lemons, Cara Cara, Daisy, Royal Honey Murcott, Afourer; Others: Ponkan(China), Keeno (Pakistan)
•Philippines takes in a range of Class 1, Class 2, composite and juicing fruits depending on importers’ customers.