At the 2024 Annual Conference of the Korean Agricultural Economics Association (KAEA), Tridge highlighted its innovative approach to market entry through a data-driven marketplace solution, focusing on the Korean fresh avocado market. This presentation was part of a session on 'AI Advanced Agri-Food Industry and Global Market,' sponsored by the Ministry of Agriculture, Food and Rural Affairs.
The session featured a range of insightful presentations, starting with Professor Kwan-Soo Kim from Seoul National University, who discussed strategies for establishing an AI Advanced Agri-Food Industry Cluster. Following this, Tridge's Lead of Business Development Team, Geulah Bang, delivered a compelling presentation titled 'Pioneering New Markets Using Data-Driven Marketplace Solution: An Implementation Case of the Korean Avocado Market.' The session continued with Kwang-Wook Lee, Head of Business Development at Daedong, who spoke about the future of precision agriculture using AI. The presentations concluded with discussions from representatives of the Ministry of Agriculture, Food and Rural Affairs, Jeollanam-do, Mokpo University, National Food Cluster, and Jinong.
Case Study: Korean Fresh Avocado Market
Tridge's presentation featured a detailed case study on its data-driven trading business in Korea's fresh avocado market. The company predicted a significant increase in the market share for Philippine avocados while exploring the potential for Indonesian avocados to enter the Korean market. Tridge also discussed its collaboration with BRIN, Indonesia's National Research Institute, to support this market entry.
Challenges with Traditional Data Sources
The presentation highlighted the limitations of traditional data sources like UN Comtrade, which often have over a year lag and provide high-level trade flow data that is not practical for real-time decision-making. In contrast, Tridge offers daily company-level transaction data, providing actionable insights and enabling immediate decision-making.
Market Insights and Opportunities
Tridge's data revealed significant shifts in Korea's fresh avocado market over the past three years. Peruvian avocados, which dominated the market with 77% share in 2022, dropped to 57% in 2023 and about 47% in 2024. Colombian avocados disappeared entirely from the market this year, indicating supply chain disruptions. Conversely, Philippine avocados entered the market for the first time in 2023, creating a new supply chain. The market shares of Peruvian, Colombian, and New Zealand avocados have been taken over by Mexico, Chile, and the United States. This dynamic supply chain presents profit opportunities for market participants who can navigate the information gap.
Philippine and Indonesian Avocados
Philippine avocados gained a 1% market share in Korea in the first half of 2024, thanks to the gradual market opening following the Korea-Philippines FTA signed in 2021. These avocados have a transit time one-third that of Central and South American avocados and are price-competitive, suggesting their market share will continue to grow. Tridge is also working with BRIN to analyze and develop the supply chain for Indonesian avocados, preparing for future trade flow changes following the Korea-Indonesia FTA signed in 2023.
Farm to Export: Practical Applications
Tridge demonstrated how its data-driven marketplace solution supports the 'farm to export' model, showcasing practical applications and examples. The trading team successfully imported Cambodian bananas during a period of fruit-flation and introduced Greek kiwis during the New Zealand kiwi off-season for the first time.
Future Opportunities
Tridge foresees expanding opportunities driven by global economic fragmentation, resource and food protectionism, the complexity of multinational production value chains, climate change, and increasing demand in emerging markets. For instance, Tridge's data indicates substantial increases in China's meat imports, Mexico's fruit juice imports, and Vietnam's sauce imports over the past three years.
Commitment to Supply Chain Management
Tridge is committed to enhancing its role as a key partner in supply chain management through its three business pillars: Data Intelligence, Platform, and Physical Trading. Over 600,000 corporate clients in the agri-food sector use Tridge's platform, which holds transaction data worth 13 billion to date and has extensive sourcing and export experience in about 70 countries.
Collaboration with Korean Agri-Industry Cluster
Following Tridge's presentation, representatives from the Ministry of Agriculture, Food and Rural Affairs, Jinong, and Mokpo University requested the application of Tridge's data-driven marketplace to the Korean agri-industry cluster to support the export of products produced within the cluster.
