Jack Fruit now has an export market – What next?

So now the secret is out, that there is a phenomenal demand in the UK and other Countries for Jack Fruit, what are we going to do about it?

https://www.dailymail.co.uk/news/article-6300921/Soaring-demand-jackfruit-driven-UKs-3-5million-vegans.html

Let’s face it, there is a surplus of Jack Fruit in Sri Lanka, and unless someone cleans it and prepares them for consumption or cooking, these fruits are left to rot. They have a nutritional value and the secret is in the way it is cooked, to get the meat like taste, that vegans appear to love so much in the west these days.

Before you think you can procure all the Jack Fruit in the market and become a millionaire, I hope you know what is in demand, how can it be supplied to the customer, and in what form and the maximum price that it can be sold for?

Don’t forget that in an export market you are competing with other countries that are also exporting, sometimes to the same markets that you intend to supply. In that sense there is a price, which is transparent and there is an acceptable quality and the modus in which it is supplied that you have to know first before attempting to get orders. Some countries may have a bigger supply.

Having said all that, normally the exporter, or budding exporter, gets an agent or agents to source the Fruit from the marketplace. Very rarely do they go themselves scouring the country for the raw material. Then the quality is shown as to what type of fruit, of what age and maturity that is required and the job of looking out for the product starts. There is a price point that is set, so that the agent knows at what price he can sell. He then has to source it at a price where he can make it worth his while to getting involved in, to make his profit share.

The million dollar question that arises at this stage is whether, the required daily or weekly quantity, can actually be procured at the price point.

We are assuming that there is plentiful supply, so that the initial price will not be a problem. Multiply this a few times as there are others who will want to get in on the act with the same game plan to buy cheap and sell at the buying price.

Despite many people telling me there are dime a dozen places you can buy or be allowed to pluck Jack Fruit, it is not as simple as that. As in the case of King Coconuts, the people who undertook the export had wanted minimum quantities in order to fill containers and ship this overseas. The agents are then frantically searching for the product, and when the same people are asked by more than one person for this they suddenly realize it is a marketable commodity that needs to be re-evaluated as to the price they are willing to part with, no matter if the agent has agreed on the selling price which is not negotiable.

This is how, something that is plentiful or so it seems can be impossible to find overnight! Sri Lanka being a small country, means that even to supply a monthly demand for one customer of 5,000 tons may become difficult, as the supposedly plentiful Jack suddenly disappears from sight!

There is also the Sri Lankan habit of suddenly realizing when others do, that we too must buy and eat Jack, as in if it is good enough for export, it is good enough for me! This only adds to the demand, and when it is discussed in the media as a great source of protein, the demand will automatically rise.

Following on this argument, you end up with Jack Fruit costing Rs50/kg, and at this price point your dreams of becoming an instant millionaire are shattered. Moreover the biggest problem is that the so called agents who would save you the time and trouble of procuring your needed product suddenly disappear, like the wind, as it is no longer worth their while to get involved.

Those who eventually succeed are the established companies who will add this to their existing range, as they already have the infrastructure, testing facilities and export knowledge to add this to their range, and who are not seeking financial windfalls overnight. They in the end will make sure that this is just another of the range of products they purchase at the equilibrium asking price, so long as they can make a reasonable return.

The moral of the story is that, if something is too good to be true it probably is. It is the people who have a food chain and existing value chain, in value addition and export of fruit or vegetables who are ideally situated to profit from this venture.

In the meantime whether there is an export market or not, people should be encouraged to grow more Jack Trees, as they have many uses and we just discussed one of them here. Like a coconut tree, their uses don’t diminish and indeed just multiply. With the diet turning into discussion on nutritional values, the place for Jack in Food Security is assured, and we can take pride in having as many Jack Trees as we can accommodate.

All we now do is merely watch and see where this settles in Sri Lanka. Those who are enthusiasts would already have made their international connections know of their ability to supply this product today, and are seeking clarification on pricing and packaging for export, along with all the bureaucratic niceties like greasing the palms of the state sector officials who don’t want to be left out of the gravy train, doing their best to scupper the whole project with greed in mind. Those first on the starting block, will fall first, leaving a clear run for the not too ambitious tortoise, who bides his time waiting for the kill.

Within 48 hours of this news item being posted, probably 50 interested parties have tried to contact the non-traditional food export sector in the Government who surprise surprise, don’t have any idea on answering any of the questions put to them, when their whole function is assisting these very exporters with getting their ideas off the ground with technical help.

That is where they are slow to act. When they finally wake up, they look for all the ways and means to regulate this new export product. Yes REGULATE. Why? When there is a certificate needed, like a quality certificate or one of authenticity, that it is in fact Jack Fruit, they can put their hand out for their share of the gravy train.

This barrier needs to be factored in, and the inertia of the Public Sector overcome. I thought we had people who wanted us to export, but it does not seem like that in reality, no matter what the leaders seem to imply.

I am sure that some people are already exporting to Sri Lankan stores in foreign countries, and they probably know the ins and outs of the law here and the way the product has to be packed for export, but the market they are presently catering to is the expatriate market. However with the increase in local consumption due to changing dietary habits, perhaps other shops are sourcing this as well and they may be presented in a different format for cooking.

What will all of this do to the local price of Jack Fruit? Will locals be priced out of it? Of course this question is usually asked by the Island Mentality personnel. The “DUPATH MANASIKATHWAYA” types, who are aghast that people will no longer be able to enjoy their KOS!

I have no obvious answer. Some have said that we have so much, that 90% of the fruit presently rots on trees and now at least they will be plucked and sold, and more trees will be grown. So by this logic there will be no price escalation. However you put it, if one looks at the economy, we have a means of value addition, as well as export income. This cannot be a bad thing, despite a few people finding it an issue. We cannot let a potential source of income stop, just because a few people will lose out, as more people will benefit than luck out.

What we have definitely learned is that we suddenly have an interest because a fruit we have taken for granted and sort of not valued, is now desired by people in foreign parts, so we must do our utmost to send it in value added form, to be able to get the best price and compete in the world market with other countries.

Who said Ceylon Cinnamon (only grown in Sri Lanka) is needed in SL and so we cannot export because the locals will be priced out of it? QED!