a vision for the southern hemisphere fruit sector marta bentancur president of shaffe

A VISION FOR THE SOUTHERN HEMISPHERE FRUIT SECTOR

Marta BentancurPresident of SHAFFE

ABOUT THE ASSOCIATION AND SHAFFE’S MEMBERS

• Southern Hemisphere Association of Fresh Fruit Exporters• With over 15 years of operation SHAFFE is today representing

8 leader countries of the Southern Hemisphere – Argentina– Australia– Brazil– Chile– New Zealand– Peru– South Africa– Uruguay

MISSION• To encourage, promote lobbies and represent the

interests of fresh fruit produced in the Southern Hemisphere for the Northern Hemisphere

• Monitor legislative changes and developments affecting the markets of interest for producers in the Southern Hemisphere

• Provide a forum for the discussion of issues of common interest for the fruit industry in the SH, such as logistics, packing, phytosanitary issues and information on specific markets

• To encourage, promote lobbies and represent the interests of fresh fruit produced in the Southern Hemisphere for the Northern Hemisphere

• Monitor legislative changes and developments affecting the markets of interest for producers in the Southern Hemisphere

• Provide a forum for the discussion of issues of common interest for the fruit industry in the SH, such as logistics, packing, phytosanitary issues and information on specific markets

MISSION

• To monitor trade access to markets and any unfair trade practice, in both the SH and the NH

• Provide information about issues regarding the World Trade Organization that could affect producers and / or distributors of fresh fruits in the countries of the SH

• Provide support to members in their relations with other members and with third parties

• To monitor trade access to markets and any unfair trade practice, in both the SH and the NH

• Provide information about issues regarding the World Trade Organization that could affect producers and / or distributors of fresh fruits in the countries of the SH

• Provide support to members in their relations with other members and with third parties

The fruit sector of the Southern Hemisphere:

Production: 67 million tonsExport: 11%

Production: 67 million tonsExport: 11%

THE REPRESENTATIVENESS OF SHAFFE IN CONTEXT

Production of the Southern Hemisphere Major fruit categories in tons

Source: FAO 2007

% of Exports

Argentina 15Australia 7Brazil 2Chile 25N. Zealand 46Peru 4South Africa 38Uruguay 24Average 11

Argentina Australia Brazil Chile New Zealand

Peru South Africa Uruguay Total

Citrus 2.722.000 740.500 20.682.309

317.000 20.000 737.650 2.185.000 281.500 27.685.959Apples and Pears 1.847.000 371.000 1.112.97

31.610.00

0416.000 157.950 975.125 89.992 6.580.040

Guavas, Mangoes, Papayas

4.500 59.300 3.444.000

8.000 420.000 112.500 4.048.300Bananas and Plantains

182.000 280.000 6.972.408

1.837.384

345.000 9.616.792Grapes 2.900.000 1.530.43

91.341.80

62.350.00

0190.000 200.00

01.600.000 130.000 10.242.24

5Avocados 3.600 36.000 165.000 167.000 17.000 120.000 65.000 573.600Peaches, Nectarines, Plums 400.000 148.000 238.500 600.000 10.700 43.500 218.000 22.028 1.680.728Ananas 3.300 110.000 2.666.35

8225.000 166.000 3.170.658

Watermelons 126.000 115.000 1.947.000

87.000 2.700 67.500 65.000 12.000 2.422.200Kiwifruit 5.000 170.000 315.000 490.000Melons 85.000 78.000 196.000 72.000 1.100 13.000 23.000 4.500 472.600Blueberries

5.400 68 21.375 18 1.575 28.436Total Production 8.278.800 3.473.23

938.766.42

25.402.37

5972.500 3.822.00

25.754.625 541.595 67.011.55

8

FRUIT PRODUCTION IN THE SOUTHERN HEMISPHERE in thousand tons

For example…

• Brazil exports for $700 million with a wide variety of fruit including citrus, bananas, grapes, apples and tropical fruits

• Peru exceeds $300 million with grapes, avocados, mangoes, citrus and organic bananas

• Chile exports for about $2.500 million dollars

• Brazil exports for $700 million with a wide variety of fruit including citrus, bananas, grapes, apples and tropical fruits

• Peru exceeds $300 million with grapes, avocados, mangoes, citrus and organic bananas

• Chile exports for about $2.500 million dollars

• The fruit production sector is a significant generator of employment and investment in the entire

Southern Hemisphere• To research, provide solutions and create a process

of continuous improvement is a big challenge for the sector development

• The fruit production sector is a significant generator of employment and investment in the entire

Southern Hemisphere• To research, provide solutions and create a process

of continuous improvement is a big challenge for the sector development

To update production and trade trends is essential for identifying main threats and opportunities that will serve as the basis for defining sectorial policies

and strategies for competitiveness

To update production and trade trends is essential for identifying main threats and opportunities that will serve as the basis for defining sectorial policies

and strategies for competitiveness

WHAT IS THE STRATEGY OF OUR SECTORS?

• GROWTH?

• KEEP MARKETS?

• ACCESS TO NEW MARKETS?

• GROWTH?

• KEEP MARKETS?

• ACCESS TO NEW MARKETS?

Demands of a global market

• To have new capabilities for obtaining competitive success

• To go beyond the regulatory • To secure customers loyalty• To maintain leadership • To exploit new requirements (increasingly

demanding) to improve competitiveness

• To have new capabilities for obtaining competitive success

• To go beyond the regulatory • To secure customers loyalty• To maintain leadership • To exploit new requirements (increasingly

demanding) to improve competitiveness

The information age...

• Relations with customers that preserve "loyalty" and not just "fidelity“

• Relations with other stakeholders of the fruit value chain

• Relations with customers that preserve "loyalty" and not just "fidelity“

• Relations with other stakeholders of the fruit value chain

Demands of global competition

• To develop new strategies for developing OPPORTUNITIES and to address THREATS

• To consolidate the business through a solid market knowledge

• To coordinate actions among different actors in the chain: producers, exporters, logistics and clients…

• To develop new strategies for developing OPPORTUNITIES and to address THREATS

• To consolidate the business through a solid market knowledge

• To coordinate actions among different actors in the chain: producers, exporters, logistics and clients…

MARKET TRENDS IN TIMES OF CRISIS

• Consumption stagnating or even decreasing

• Despite lower volumes, the price also tends to decrease because of the competition pressure between retailers / discounters

Low Volume + Low Price = Less Income

• Consumption stagnating or even decreasing

• Despite lower volumes, the price also tends to decrease because of the competition pressure between retailers / discounters

Low Volume + Low Price = Less Income


• Lower price while costs are rising (logistics, manpower, quality ...) => return for producers is below the costs of production

• Tendency to changing attitudes of consumers: search for low price, value

pack ...

• Likely impact on the demand of some products such as organic

• Lower price while costs are rising (logistics, manpower, quality ...) => return for producers is below the costs of production

• Tendency to changing attitudes of consumers: search for low price, value

pack ...

• Likely impact on the demand of some products such as organic

• The crisis mainly affects the food service sector (catering, transportation ...) while fruit and vegetables still maintain traditional levels

• Increased consumption is estimated through eating “at home” and spending more time to “prepare meals at home”: an opportunity to develop the consumption of fresh produce?

• The crisis mainly affects the food service sector (catering, transportation ...) while fruit and vegetables still maintain traditional levels

• Increased consumption is estimated through eating “at home” and spending more time to “prepare meals at home”: an opportunity to develop the consumption of fresh produce?


• Fresh produce should be innovative to position itself in such a competitive scenario

• The current situation is creating a threat towards greater protectionism: creating pressure to buy “local” products ... at least in the European Union

• Fresh produce should be innovative to position itself in such a competitive scenario

• The current situation is creating a threat towards greater protectionism: creating pressure to buy “local” products ... at least in the European Union


Main common concerns of our members

• Increasing production costs and especially of human capital • Increasing social conflicts • Exchange rates Dollar / Euro ... • Climatic disturbances and their effect on production and quality of fruit• Pressure from retailers• Growing concerns about the impact of the crisis and the lack of funding• Maximum Residue Levels legislation in the European Union• Concern about tightening access conditions to, for example, Asian markets

• Increasing production costs and especially of human capital • Increasing social conflicts • Exchange rates Dollar / Euro ... • Climatic disturbances and their effect on production and quality of fruit• Pressure from retailers• Growing concerns about the impact of the crisis and the lack of funding• Maximum Residue Levels legislation in the European Union• Concern about tightening access conditions to, for example, Asian markets

Calentamiento Global: Bonos de Carbono, ¿qué son y para qué sirven?

Fuentes: - ProChile - CONAMA - World Bank Carbon Finance

Calentamiento Global:

Bonos de Carbono, ¿qué son y para sirven ?

El mercado de carbono se viene desar

La armonización de LMRs de plaguicidas en frutas y hortalizas

está provocando en Holanda el efecto contrario

A partir del próximo del 1 de septiembre de 2008 entrará en vigor la

armonización en la UE de los Límites Máximos de Residuos (LMRs) de

fitosanitarios en diferentes productos, entre ellos Frutas y Hortalizas. En

Holanda, esta armonización está generando exactamente el efecto

contrario. Algunas cadenas de distribución están imponiendo a sus

proveedores unas exigencias superiores a las establecidas en la

legislación vigente, según publica el Boletín Exterior del MAPA.

Toda la polémica se inició cuando varias organizaciones de defensa

medioambiental publicaron en sus páginas web los resultados anuales de

los controles de residuos en frutas y hortalizas, así como las infracciones

aplicadas por la Autoridad holandesa de Seguridad de los Alimentos

(VWA) en 2007. Dichas organizaciones realizaron unas clasificaciones

por productos, supermercados y países de procedencia según

especificaciones de LMRs, para información de los consumidores.

Fuente: http://www.agrodigital.com

What are the issues of common interest?

• Market Transparency

• Quality and Safety Requirements

• Corporate Social Responsibility

• New requirements: Carbon Footprint Labelling

SHAFFE – TRANSPARENCY

SHAFFE provides greater transparency to the sector:

– Annual report of the latest developments in each country

– Consolidation of information on production: apples and pears (together with WAPA) and citrus (together with Freshfel Europe)

– Weekly monitoring of weekly shipments to different international markets

• Apples• Pears• All citrus (oranges, mandarins, lemons and grapefruits)• Others in development: blueberries and table grapes (Brazil's participation is a

must!)• Bi-weekly abstracts are published in the SHAFFE Newsletter

SHAFFE provides greater transparency to the sector:

– Annual report of the latest developments in each country

– Consolidation of information on production: apples and pears (together with WAPA) and citrus (together with Freshfel Europe)

– Weekly monitoring of weekly shipments to different international markets

• Apples• Pears• All citrus (oranges, mandarins, lemons and grapefruits)• Others in development: blueberries and table grapes (Brazil's participation is a

must!)• Bi-weekly abstracts are published in the SHAFFE Newsletter

SHAFFE – GlobalGAP Representation of SHAFFE in GlobalGAP

Representation in:– CPWG (L. Benic and Philippe Binard)– Fruit and Vegetables Committee– Key issues under discussion:

• Tools to avoid MRL’s exceedance • Flow of information and notification in case of exceeding the limits or

unauthorised use of products and its relationship with the GlobalGAP certification

SHAFFE – PRIVATE STANDARDS HARMONISATION

Food safety can not be a tool for competition. On the contrary, they must strictly adhere to the legislation and create trust through it

– Proliferation of safety requirements: it is costly and confusing. GlobalGAP, CIES / GFSI

– Position papers for a realistic harmonisation– Follow-up of WTO discussions

Food safety can not be a tool for competition. On the contrary, they must strictly adhere to the legislation and create trust through it

– Proliferation of safety requirements: it is costly and confusing. GlobalGAP, CIES / GFSI

– Position papers for a realistic harmonisation– Follow-up of WTO discussions

SHAFFE – ANALYSIS OF CUSTOMER RELATIONS

SHAFFE analyses the relationship of its members with customers and a common approach is challenging:

• Research office on ethical trade in the UK and the European Union

• Ethical Trading Initiative of the Commonwealth. Support to create a buyer-seller forum on international trade

• Study on the growth of sales of SH products through retailers

• Discussion GFSI / CIES denouncing the proliferation of private standards and the pressure from non-governmental organisations (NGOs)


• Research office on ethical trade in the UK and the European Union

• Ethical Trading Initiative of the Commonwealth. Support to create a buyer-seller forum on international trade

• Study on the growth of sales of SH products through retailers

• Discussion GFSI / CIES denouncing the proliferation of private standards and the pressure from non-governmental organisations (NGOs)

SHAFFE – ANALYSIS OF CUSTOMER RELATIONS



• The case of MRLs of chemical products and retailers - Germany

• The case of MRLs of chemical products and retailers - Germany

SHAFFE – FOOD SAFETY

SHAFFE members monitor the actions of NGOs in the fruit chain:

– Safety

SHAFFE members monitor the actions of NGOs in the fruit chain:

– Safety

SHAFFE – FOOD SAFETY

– Sustainable production• Water (important issue for the

future - water footprint)

• Carbon footprint – food miles (climate change) • Social and ethical aspects

• Maintaining the balance between the 3 pillars of sustainable development:

– Sustainable production• Water (important issue for the

future - water footprint)

• Carbon footprint – food miles (climate change) • Social and ethical aspects

• Maintaining the balance between the 3 pillars of sustainable development:

SHAFFE – SUSTAINABLE DEVELOPMENT

SHAFFE: An important topic for the near future:– Aspects of definition (food miles /

carbon footprint). Emphasis on the carbon footprint more relevant to the Southern Hemisphere

– Defining and testing the methodology of calculation (several projects under way in New Zealand, South Africa, Chile and Europe)

– Its revision could mean the search for greater energy efficiency and costs reduction

– Aspects of labelling

Importance of harmonisation to prevent proliferation of methods

SHAFFE: An important topic for the near future:– Aspects of definition (food miles /

carbon footprint). Emphasis on the carbon footprint more relevant to the Southern Hemisphere

– Defining and testing the methodology of calculation (several projects under way in New Zealand, South Africa, Chile and Europe)

– Its revision could mean the search for greater energy efficiency and costs reduction

– Aspects of labelling

Importance of harmonisation to prevent proliferation of methods

• Two initiatives for food labeling:

• “Food miles”: Distance from production to final consumption and disposal of generated waste and garbage.

• “Carbon Emissions”: Emissions released during the entire production chain. Amount of carbon emitted along the agribusiness chain.

Food miles

• Promotes the consumption of local produce and tries to include energy costs and negative environmental externalities related to transport.

Carbon emissions

Example in grams per ton / kilometer

• Transport: • Land 207 • Maritime 30 • Air 1.206

• Ton production: Apples

• NZ: 185• UK: 271,8

CARBON CALCULATOR - Get ahead of

the game, measure your carbon

emissions

ENVIRONMENTAL LABELING

• Concerns:

• Dilute the attention only on carbon emissions

• Does not include water usage or amount of residues...

• Lack of data for measuring• How to measure?• Cost and time• Another barrier?

• Concerns:

• Dilute the attention only on carbon emissions

• Does not include water usage or amount of residues...

• Lack of data for measuring• How to measure?• Cost and time• Another barrier?

Ongoing projects

• Wines from New Zealand

• Tesco has for British suppliers the logo of Assured Food Standard, Red Tractor

• Tesco Products tagged with Carbon footprint label

• Wal-Mart (USA): Partnership with Carbon Disclosure Project

• Casino labelling of climate impact

• Dole Costa Rica Carbon neutral (more efficient transportation, reforestation programmes, etc.)

• Wines from New Zealand

• Tesco has for British suppliers the logo of Assured Food Standard, Red Tractor

• Tesco Products tagged with Carbon footprint label

• Wal-Mart (USA): Partnership with Carbon Disclosure Project

• Casino labelling of climate impact

• Dole Costa Rica Carbon neutral (more efficient transportation, reforestation programmes, etc.)

Specification PAS 2050 (Publicly Available Specification) for determining the lifecycle greenhouse gas emissions of products and servicesSpecification PAS 2050 (Publicly Available Specification) for determining the lifecycle greenhouse gas emissions of products and services

SHAFFE – SOCIAL RESPONSIBILITY

• Concept: “a business vision that integrates

to the administration of the company the respect for: values and ethical principles, workers, the community and the environment” (DERES)

• Concept: “a business vision that integrates

to the administration of the company the respect for: values and ethical principles, workers, the community and the environment” (DERES)

Clientes

ONGs

Otras empresas

La comunidad

Medioabmiente

Estado

Accionistas

Colaboradores

RSE

SHAFFE – PROMOTION AND MARKETING

SHAFFE Activities on promotion and marketing:– Participation in the exchange forum: – Global citrus network - Southern Hemisphere-

Northern Hemisphere Teleconferences (with Freshfel)

Participants

• WHAT FOR?

• To provide a reliable information system in the global market and improve transparency

• To discuss matters of common interest

• To provide a platform for the international citrus community to promote cooperation

SHAFFE – PROMOTION AND MARKETING

SHAFFE Activities on promotion and marketing:

– Evaluation of actions to be undertaken for the promotion of demand in the US market:

• Order for blueberries• Order for «summer citrus»

SHAFFE – TRADE

SHAFFE - International Trade - WTO

Monitoring and exchange of views / information:• Multilateral negotiations - DOHA Round (Currently with few and low expectations)• Bilateral (where applicable)• Others, for example applicable to the SPS /

Plant Health when it affects market access

SHAFFE - International Trade - WTO

Monitoring and exchange of views / information:• Multilateral negotiations - DOHA Round (Currently with few and low expectations)• Bilateral (where applicable)• Others, for example applicable to the SPS /

Plant Health when it affects market access

SHAFFE – TRADE

MARKET OF THE EUROPEAN UNION:• Differentiated tariff regimes by seasonality• Mandarins: about 12% of tariff ad valorem for

Argentina, Brazil, Uruguay

• Peru, Chile, South Africa0% Tariff

• Peru, Chile, South Africa0% Tariff

SHAFFE – COMMUNICATION

SHAFFE and informationBi-weekly Newsletter

Weekly Shipments of citrus and apples and Shipments of blueberries and table

grapes just starting2 times a year Country reports at each meeting

SHAFFE website (www.shaffe.net)

Current revision of communication strategy

SHAFFE – ANNUAL MEETINGS

• SHAFFE AGM:

– At the same time as PMA’s Annual Conference– 2009 AGM in Anaheim 1st October => Brazil's participation is

essential!

• SHAFFE Interim Meetings:

– During the Fruit Logistica Fair (Berlin)– Teleconferences (citrus)

• SHAFFE AGM:

– At the same time as PMA’s Annual Conference– 2009 AGM in Anaheim 1st October => Brazil's participation is

essential!

• SHAFFE Interim Meetings:

– During the Fruit Logistica Fair (Berlin)– Teleconferences (citrus)

SHAFFE – BENEFITS FOR MEMBERS

– Visibility as a collective entity of the Southern Hemisphere– Promoting cooperation and better understanding of the business

development in the Southern Hemisphere– Coordinating policies and positions on issues of common concern– Facilitating the exchange of information – Forum for addressing complex challenges in food security (safety, social

responsibility, sustainable development, etc)

WITH THE VISION OF GROWING TOGETHER AND MAKING THE FRUIT EXPORT BUSINESS MORE EFFICIENT AND COST EFFECTIVE FOR ALL ITS MEMBERS

– Visibility as a collective entity of the Southern Hemisphere– Promoting cooperation and better understanding of the business

development in the Southern Hemisphere– Coordinating policies and positions on issues of common concern– Facilitating the exchange of information – Forum for addressing complex challenges in food security (safety, social

responsibility, sustainable development, etc)

WITH THE VISION OF GROWING TOGETHER AND MAKING THE FRUIT EXPORT BUSINESS MORE EFFICIENT AND COST EFFECTIVE FOR ALL ITS MEMBERS

ABOUT THE ASSOCIATION AND ITS ORGANISATION

• It comprises 8 major countries of the Southern Hemisphere– Argentina– Australia– Brazil– Chile– New Zealand– Peru– South Africa– Uruguay • Presidency: Rotating• Currently held by Uruguay • Argentina has the Vice-Chair

• Secretariat– In Brussels, in the EU, one of the main markets – Neutrality between all 8 countries

I want to thank the cooperation and support of the SHAFFE Secretariat, through Mr. Philippe Binard, for this presentation

I want to thank the cooperation and support of the SHAFFE Secretariat, through Mr. Philippe Binard, for this presentation

THANK YOU !www.shaffe.net

www

a vision for the southern hemisphere fruit sector marta bentancur president of shaffe

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