Research Reports
Research on Fresh-cut Fruits and Vegetables
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AuthorKim, Sanghyo
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Publication Date2020.02.18
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Original
Research on Fresh-cut Fruits and Vegetables
Abbreviations
B2C : Business-to-Consumer
B2B : Business-to-Business
FFV : Fresh-cut fruits and vegetables
FGI : Focus group interviews
DEA : data envelopment analysis
IPA : Importance-performance analysis
CE : choice experiment
WTP : Willingness to pay
KRW : Korean won
OPM : Operating profit margin
HMR : Home meal replacement
Research Background
The demand for Business-to-Consumer (B2C) on fruit and vegetable products that are easy to cook and eat has increased in a variety of dietary areas such as home meals, eating out, and school meals. This trend has resulted from the expansion of single-person households, double-income households, food consumption trends that emphasize convenience, and the growth of the convenience food market. Besides, the steep rise in the minimum wage is a driving factor to boost the Business-to-Business (B2B) demand for fresh-cut fruits and vegetables (FFV) among companies, which deem a financial burden to hire cooking staff under the circumstance of the steady growth in restaurant and school meal businesses.
The FFV are processed products, which have been cleaned, sliced, or prepared. Unlike other processed foods that are not identifiable in their original shapes, FFV are distinguishable. The growth of the FFV market helps to increase agricultural production and contributes to a healthy diet for consumers by allowing consumers’ easy access to fruits and vegetables.
Market research and data collection on the FFV industry should be preceded for policymakers to promote and regulate the food industry, considering the agriculture as an upstream industry and the food processing sectors as a downstream industry in the face of rapid changes and growth in the market. However, social studies have not been performed since Lee Yong sun et al. (2009).
The study explores ways to improve consumer satisfaction and to derive policy and industrial tasks for stable market growth in response to the growth of the FFV market.
Research Methodology
First of all, we reviewed the previous literature to discover research topics, then, collected policy data. Also, we held advisory meetings with policymakers and experts to identify policy changes and challenges in the market.
Various surveys and analyses were carried out for identifying the current state and problems in the FFV market. Notably, our priority was on surveying FFV manufacturing companies. Our research team decided to interview in person, rather than entrusting an external research company for better survey results.
In order to understand the characteristics of FFV demand, we employed surveys and focus group interviews (FGI). Consumer surveys were conducted concerning B2C demand, while regarding B2B demand, survey targets were categorized into three groups for examination, which include catering companies, restaurants, and food manufacturers.
Analysis models used for this study are as follows:
The t-test was used for testing the price differences between fresh products and FFV products. Linear regression analysis and data envelopment analysis (DEA) were applied for identifying the management status of FFV the manufacturers. Importance-performance analysis (IPA) and Best-Worst Choice Experiment (CE) were used for the evaluation of FFV product attributes by consumers. CE and mixed logit analysis were applied for the estimation of Willingness to Pay (WTP) for FFV attributes.
Commissioned studies were conducted by several professors for the examination of the FFV market status and policies of major overseas countries. Dr. Shin Dong-cheol, a professor at the University of Hokkaido, and Dr. Sang-Hyeon Lee, a professor at Kangwon National University, previously participated in the case of Japan and the US/Europe, respectively.
Dr. Kim Ji-kang, who works in the postharvest research division of the National Institute of Horticultural and Herbal Science, also participated and derived implications in understanding the current state of processing technology and food safety management for production.
Findings
(The rest is omitted. See the attached file for details.)
Researchers: Kim Sanghyo, Lee Kyei-im, Heo Seongyoon, Lee Wookjik
Research period: 2019. 1. ~ 2019. 10.
E-mail address: skim@krei.re.kr
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