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The voice of the European food and drink industry FOOD INDUSTRY COMPETITIVENESS R & D - THE DRIVER Beate Kettlitz CIAA Director Food Policy, Science and R&D

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Slide 1FOOD INDUSTRY COMPETITIVENESS
How industry as a whole views the novel food directives
Improving the current situation
The voice of the European food and drink industry
The F&D Industry in Europe
First EU manufacturing industry
13% of manufacturing jobs
3.8 million employees
Purchases and transforms 70% of agricultural raw material
A fragmented sector: 99% of food companies have less than 250 employees, they contribute 50% of the overall turnover
The voice of the European food and drink industry
Novel Food and Claims, Barcelona 28-28 March
The European food and drink industry is the largest manufacturing sector in Europe, transforming over 70% of the EU’s agricultural raw materials and employing about 4 million people, the majority within the SME sector. A leading global exporter with a positive trade balance 48 billion € in 2006, it affords significant value addition and offers scope for growth within new EU Member States, development of regional economies and exploitation of cultural diversity and tradition.
CIAA represents:
- Including 2 observers from Norway and Turkey
SECTORS
The role and mission of CIAA is to:
Represent the interests of the European food and drink industries
Contributes to the creation of the most favourable economic and legislative environment possible for the development of the food and drink industry
Promote the image of a dynamic and responsible industry
Act as the voice of European food and drink industry
The voice of the European food and drink industry
Labour Productivity in Euro, 2004
(Value Added/Employee)
Source: US Census Bureau, Chinese Yearbooks, National Bureau of Statistics of China, Statistics Bureau japan, Statistics Canada, Australian Department of Agriculture, Fisheries and Forestry, Eurostat. Instituto Brasileiro de Geografia e Estatística
United States
Novel Food and Claims, Barcelona 28-28 March
In real terms labour productivity in the EU is significantly lower than that of all its main developed country competitors. Since 2004, it appears that the growth of labour productivity in EU food and drink industry is starting to take up slightly more than in the US although the gap in labour productivity remains important. As compared to emerging economies, in absolute terms, economies such as Brazil, show a considerable labour productivity growth, which puts more pressure on European competitiveness.
The voice of the European food and drink industry
Novel Food and Claims, Barcelona 28-28 March
A slow growth of the production value
During the last 3 years (2002-2005) total production value of the European Food and Drink Industry increased by approximately 1.8% a year. This growth is slightly inferior to most other developed countries but considerably less than the steep growth of the Brazilian and Chinese food and drink production[1].
 
The EU25 remains by far the largest food and drink producing economy, with a total production value of 815 billion € in 2004 followed by the US (€468 billion) and Japan (€219 billion). China and Brazil reach €126 billion and €48 billion respectively.
Chart1
2000
2000
2000
2000
2000
2000
2000
2001
2001
2001
2001
2001
2001
2001
2002
2002
2002
2002
2002
2002
2002
2003
2003
2003
2003
2003
2003
2003
2004
2004
2004
2004
2004
2004
2004
2005
2005
2005
2005
2005
2005
2005
Australia
Canada
EU25
Japan
Evolution of labour productivity (value added/employee) growth in various food and drink industries (2000=100)
100
100
100
100
100
100
100
89.0135695764
107.5214286591
106.132736593
96.4130662305
107.1500043943
123.6891668284
127.2648510638
102.5875092798
113.4270893101
96.6085912803
115.3272926481
144.5110816926
126.4302384617
105.0064970106
113.6390131252
94.4029886157
117.005286865
164.9731108132
135.9212301473
114.643766984
124.5436869038
96.3343075399
118.4976716302
173.6108551112
142.4751846652
104.4355374609
125.9860366835
121.5470496229
Source
GEORGIA
http://foodpac.gatech.edu/fp_foodind.html
Food processing is one of Georgia's leading industrial sector and one of the largest industrial employers in Georgia. The industry employs more than 58,700 individuals; has more than 875 small, medium, and large companies located across the state; has a
BRAZIL
http://www.abia.org.br/anexos/FichaTecnica.pdf
JAPAN
http://web-japan.org/stat/stats/07IND42.html
Region
1998
Export
16341.33
1999
Export
14817.358
2000
Export
13765.415
2001
Export
13482.121
2002
Export
11870.475
2003
Export
11043.134
2004
Export
11485.495
Sudan
1999
Export
22541.431
Sudan
2000
Export
51660.533
Sudan
2001
Export
44212.612
Sudan
2002
Export
52548.698
Sudan
2003
Export
41513.429
Sudan
2004
Export
34416.466
Sudan
2005
Export
52007.673
Swaziland
2000
Export
286154.783
Swaziland
2001
Export
259670.584
Swaziland
2002
Export
135387.306
Sweden
1996
Export
1698858.639
Sweden
1997
Export
1821953.216
Sweden
1998
Export
1716956.201
Sweden
1999
Export
1505574.775
Sweden
2000
Export
1433110.507
Sweden
2001
Export
1796617.2
Sweden
2002
Export
2151828.7
Sweden
2003
Export
2649208.549
Sweden
2004
Export
3217769.707
Sweden
2005
Export
3466673.007
Switzerland
1996
Export
1932278.997
Switzerland
1997
Export
1798222.73
Switzerland
1998
Export
1830900.384
Switzerland
1999
Export
1861786.18
Switzerland
2000
Export
1697867.879
Switzerland
2001
Export
1746703.527
Switzerland
2002
Export
1866944.908
Switzerland
2003
Export
2247502.069
Switzerland
2004
Export
2688493.327
Switzerland
2005
Export
2969731.42
1998
Import
38189.081
1999
Import
40000.4
2000
Import
36177.628
2001
Import
37680.767
2002
Import
36008.082
2003
Import
36368.712
2004
Import
42072.079
Sudan
1999
Import
86090.435
Sudan
2000
Import
121602.072
Sudan
2001
Import
171752.799
Sudan
2002
Import
175607.354
Sudan
2003
Import
188158.398
Sudan
2004
Import
195768.019
Sudan
2005
Import
313369.108
Swaziland
2000
Import
138941.288
Swaziland
2001
Import
118121.613
Swaziland
2002
Import
111649.442
Sweden
1996
Import
3230675.347
Sweden
1997
Import
3148944.155
Sweden
1998
Import
3246151.523
Sweden
1999
Import
3273139.721
Sweden
2000
Import
2989663.59
Sweden
2001
Import
3261519.25
Sweden
2002
Import
3747130.932
Sweden
2003
Import
4679323.372
Sweden
2004
Import
5510665.925
Sweden
2005
Import
5810775.247
Switzerland
1996
Import
3422487.272
Switzerland
1997
Import
3138456.317
Switzerland
1998
Import
3325867.8
Switzerland
1999
Import
3375151.253
Switzerland
2000
Import
3149443.569
Switzerland
2001
Import
3193389.211
Switzerland
2002
Import
3457507.579
Switzerland
2003
Import
4185086.026
Switzerland
2004
Import
4592270.438
Switzerland
2005
Import
4729423.582
FROM
TO
YEAR
FLOW
VALUE
Austria
Belgium
1999
Export
35492.68
Austria
Belgium
1999
Import
92955.314
Austria
Belgium
2000
Export
34096.732
Austria
Belgium
2000
Import
78166.203
Austria
Belgium
2001
Export
42982.987
Austria
Belgium
2001
Import
88280.184
Austria
Belgium
2002
Export
47812.214
Austria
Belgium
2002
Import
113261.944
Austria
Belgium
2003
Export
62943.802
Austria
Belgium
2003
Import
137026.195
Austria
Belgium
2004
Export
71538.252
Austria
Belgium
2004
Import
161456.402
Austria
Belgium
2005
Export
124380.677
Austria
Belgium
2005
Import
142246.704
Austria
Belgium-Luxembourg
1996
Export
20309.091
Austria
Belgium-Luxembourg
1996
Import
92225.834
Austria
Belgium-Luxembourg
1997
Export
23457.189
Austria
Belgium-Luxembourg
1997
Import
96659.035
Austria
Belgium-Luxembourg
1998
Export
40476.464
Austria
Belgium-Luxembourg
1998
Import
99667.293
Austria
Cyprus
1996
Export
3358.696
Austria
Cyprus
1996
Import
624.542
Austria
Cyprus
1997
Export
4272.628
Austria
Cyprus
1997
Import
144.833
Austria
Cyprus
1998
Export
4579.437
Austria
Cyprus
1998
Import
65.105
Austria
Cyprus
1999
Export
6913.979
Austria
Cyprus
1999
Import
114.038
Austria
Cyprus
2000
Export
7878.383
Austria
Cyprus
2000
Import
103.961
Austria
Cyprus
2001
Export
6529.509
Austria
Cyprus
2001
Import
27.138
Austria
Cyprus
2002
Export
5869.698
Austria
Cyprus
2002
Import
44.512
Austria
Cyprus
2003
Export
8629.169
Austria
Cyprus
2003
Import
86.993
Austria
Cyprus
2004
Export
11897.185
Austria
Cyprus
2004
Import
2460.631
Austria
Cyprus
2005
Export
9862.205
Austria
Cyprus
2005
Import
5174.255
Austria
16341.33
14817.358
13765.415
13482.121
11870.475
11043.134
11485.495
92805.328
Sudan
22541.431
51660.533
44212.612
52548.698
41513.429
34416.466
52007.673
298900.842
Swaziland
286154.783
259670.584
135387.306
681212.673
Sweden
1698858.639
1821953.216
1716956.201
1505574.775
1433110.507
1796617.2
2151828.7
2649208.549
3217769.707
3466673.007
21458550.501
Switzerland
1932278.997
1798222.73
1830900.384
1861786.18
1697867.879
1746703.527
1866944.908
2247502.069
2688493.327
2969731.42
20640431.421
16,341
14,817
13,765
13,482
11,870
11,043
11,485
11,500
92,805
Sudan
22,541
51,661
44,213
52,549
41,513
34,416
52,008
298,901
Swaziland
286,155
259,671
135,387
150,000
200,000
250,000
681,213
Sweden
1,698,859
1,821,953
1,716,956
1,505,575
1,433,111
1,796,617
2,151,829
2,649,209
3,217,770
3,466,673
21,458,551
Switzerland
1,932,279
1,798,223
1,830,900
1,861,786
1,697,868
1,746,704
1,866,945
2,247,502
2,688,493
2,969,731
20,640,431
137771285
178401538
177312632
170293261
177915802
189160828
198801139
228706738
263296530
289382964
!!! PERCENTAGES DO NOT ADD UP TO 100% AS THE EU MEMBER STATE % ARE WRONG - FOR EU SEE AT THE BOTTOM THE EU%
COUNTRY
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Albania
0.01%
0.00%
0.00%
0.01%
0.00%
0.01%
0.00%
0.01%
0.01%
0.01%
Algeria
0.05%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.02%
Andorra
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.00%
Anguila
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.00%
Sudan
0.00%
0.00%
0.00%
0.01%
0.03%
0.02%
0.03%
0.02%
0.01%
0.02%
Swaziland
0.00%
0.00%
0.00%
0.00%
0.15%
0.13%
0.07%
0.06%
0.07%
0.08%
Sweden
1.18%
0.99%
0.93%
0.85%
0.78%
0.91%
1.04%
1.11%
1.16%
1.12%
Switzerland
1.34%
0.97%
0.99%
1.05%
0.92%
0.89%
0.90%
0.94%
0.97%
0.96%
TOP FOOD IMPORTERS 2005
38189.081
40000.4
36177.628
37680.767
36008.082
36368.712
42072.079
266496.749
Sudan
86090.435
121602.072
171752.799
175607.354
188158.398
195768.019
313369.108
1252348.185
Swaziland
138941.288
118121.613
111649.442
368712.343
Sweden
3230675.347
3148944.155
3246151.523
3273139.721
2989663.59
3261519.25
3747130.932
4679323.372
5510665.925
5810775.247
38897989.062
Switzerland
3422487.272
3138456.317
3325867.8
3375151.253
3149443.569
3193389.211
3457507.579
4185086.026
4592270.438
4729423.582
36569083.047
38,189
40,000
36,178
37,681
36,008
36,369
42,072
45,000
266,497
Sudan
86,090
121,602
171,753
175,607
188,158
195,768
313,369
1,252,348
Swaziland
138,941
118,122
111,649
368,712
Sweden
3,230,675
3,148,944
3,246,152
3,273,140
2,989,664
3,261,519
3,747,131
4,679,323
5,510,666
5,810,775
38,897,989
Switzerland
3,422,487
3,138,456
3,325,868
3,375,151
3,149,444
3,193,389
3,457,508
4,185,086
4,592,270
4,729,424
36,569,083
146540862
173258832
172858739
179162576
190367692
199708045
207933843
238173654
270878316
294523805
!!! PERCENTAGES DO NOT ADD UP TO 100% AS THE EU MEMBER STATE % ARE WRONG - FOR EU SEE AT THE BOTTOM THE EU%
COUNTRY
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Albania
0.16%
0.08%
0.11%
0.14%
0.08%
0.08%
0.09%
0.10%
0.09%
0.09%
Algeria
1.15%
0.88%
0.89%
0.68%
0.63%
0.67%
0.67%
0.62%
0.78%
0.75%
Andorra
0.14%
0.11%
0.11%
0.10%
0.08%
0.08%
0.09%
0.09%
0.09%
0.00%
Anguila
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
Sudan
0.00%
0.00%
0.00%
0.05%
0.06%
0.09%
0.08%
0.08%
0.07%
0.11%
Swaziland
0.00%
0.00%
0.00%
0.00%
0.07%
0.06%
0.05%
0.00%
0.00%
0.00%
Sweden
2.20%
1.82%
1.88%
1.83%
1.57%
1.63%
1.80%
1.96%
2.03%
1.97%
Switzerland
2.34%
1.81%
1.92%
1.88%
1.65%
1.60%
1.66%
1.76%
1.70%
1.61%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Argentina
6,984,868,531
7,335,428,023
7,061,461,813
6,598,437,432
6,240,242,607
5,953,898,043
21,500,899,935
26,469,520,542
30,549,422,058
33,677,023,658
Australia
7,058,814,161
7,954,830,589
7,122,908,124
7,621,908,683
9,085,813,098
11,332,170,082
10,679,395,601
8,740,848,571
10,148,368,767
9,849,582,569
Brazil
0
5,821,478,032
6,084,940,821
11,212,457,200
10,202,427,929
19,565,279,522
25,854,059,266
36,282,068,562
45,107,775,977
45,935,247,175
Canada
1,327,479,911
1,616,199,891
1,631,609,876
2,415,501,088
2,904,586,829
3,920,857,758
4,122,963,947
3,635,443,468
5,063,313,884
3,900,224,557
China
24,423,611,811
25,864,245,973
28,837,147,634
29,404,929,196
31,787,390,031
37,009,055,903
35,226,006,704
30,790,407,837
26,741,877,442
45,128,072,225
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
COVERAGE RATIO
EXPORT INTENSITY = % of production that is exported abroad
is
Export/Production
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2001
2002
2003
2004
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2001
2002
2003
2004
CHINA
General Industry Data
Production data in coloured table below is OECD data including Tobacco
DIFFERENT DATA SET
in local currecny
f&d&t
Time period
Brazil
100,200,000
112,000,000
130,600,000
157,800,000
175,900,000
184,600,000
Canada
66,445,461
70,715,802
72,141,825
75,701,788
79,000,000
0
Australia
100
103.1
103.3
103.8
107.9
114.3
123.4
China
550,000,000
754,992,000
874,053,000
1,067,561,000
1,381,305,992
0
Brazil
100
106.835
115.836
132.961
141.732
151.49
158.256
EU25
780,000,000
785,000,000
791,000,000
799,000,000
815,000,000
836,000,000
Canada
100
101
101
99.7
102.8
104.3
2004 data in Million Euro
Production Values (in million euro - 2004) in various food and drink sectors
Australia
41,612
EU25
815,000
in EURO
Production Values (in million euro - 2004) in various food and drink sectors
2004
EU25
815,000
815,000,000
70105076.4861717
CIAA: see Sheet JAPAN
CIAA: Data for F&D&T are 81111 Data for F&D are 75700 This gives a factor of 0,933 This factor is applied on all the data
CIAA: Calculated guess based on http://strategis.ic.gc.ca/canadian_industry_statistics/cis.nsf/IDE/cis311defE.html
CIAA http://www.stats.gov.cn/tjsj/ndsj/2005/html/N1403e.htm
New Zealand
United States
Evolution of production value in various food and drink industry (deflated, 2000 = 100)
Value Added
United States
Evolution of production value in various food and drink industries (2000 = 100)
Number of Employees
13-2 Number of Industrial Staff and Workers by Industrial Sector
(10 000 persons)
121
121
123
94
89
84
75
89.06
TOTAL
443000
438000
4270000
3120000
2887000
2640000
2350000
0
0
3868900
CIAA: CIAA: CIAA: SOURCE: http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/8221.0Main+Features12003-04?OpenDocument Food, beverage and tobacco manufacturing Food, beverage and tobacco manufacturing recorded increases of 2.2% in sales and service income and 2.5% in IVA. Although wages and salaries increased by 2.0%, employment fell by 1.0%. In 2003-04, Food, beverage and tobacco manufacturing was the largest manufacturing industry as measured by its share of sales and service income (21.7%); it ranked second in IVA (19.5%) and wages and salaries (18.4%). This industry also outlayed the largest amount on purchases of goods and materials, $38.3b, or 22.6%, of the Australian manufacturing total. The value of assets acquired by Food, beverage and tobacco manufacturing ($2.8b, or 21.4% of total acquisitions) and net capital expenditure ($2.4b, or 21.9%) also exceeded that of all other manufacturing industry subdivisions. Of the nine manufacturing industry subdivisions, Food, beverage and tobacco manufacturing is the second largest employer, accounting for 17.6% of the estimate for total manufacturing. In percentage terms, the industry is dominated by businesses employing 100 or more persons. These businesses contribute 82.1% of the subdivision's IVA, 80.3% of wages and salaries, 78.3% of sales and service income and 69.9% of employment. Compared to businesses employing 100 or more persons across the other eight industry subdivisions, those in Food, beverage and tobacco manufacturing provided the greatest proportion of total manufacturing employment (26.6%), sales and service income (26.3%), IVA (25.6%) and wages and salaries (24.2%). One half of this industry's IVA is produced by businesses employing 1,000 or more persons
Output per Employee
VALUE ADDED
Number of
Number of
Value of
Value Added
Value Added per Employee
Labour prod. output per employe
YEAR
CURRENCY
VALUE OF OUTPUT
CIAA: http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/8221.0Main+Features12003-04?OpenDocument
CIAA: 1999 data http://www.stats.govt.nz/quick-facts/industries/manufacturing-stats.htm
CIAA: calculated guess
CIAA: Based on 2003 data the ratio V.A. and production is 0,392
CIAA: 2003 data
CIAA: VAT is 17% VAT payable = 386,89 (100 million Yuan)
EU15 Share in imports in variou
Value Added in local currency
2000
2001
2002
2003
2004
2005
Australia
13,916,000,000
14,211,000,000
16,100,000,000
16,195,000,000
16,568,000,000
17,326,218,947
Canada
24,000,000,000
25,300,000,000
25,500,000,000
26,291,415,514
27,107,393,322
27,948,695,739
100
100
100
100
100
100
100
104.9111356718
103.6580053601
101.4369718818
98.8638395084
95.7122392725
105.2817159678
112.2206672638
111.3402207885
107.1208652969
101.9959513513
98.434872468
93.886374974
115.4517964034
128.9883910821
121.1985414453
101.5224089384
110.3844305732
101.218382858
123.3003505759
135.6780220296
110.4670165605
129.9550670956
125.8502202904
2000
2001
2002
2003
2004
2005
Australia
337423
341711
358493
380462
414149
0
Canada
266545
289340
299924
309943
293745
0
EU25
180833
184582
187235
188266
203750
203902
Japan
28060078
27088051
26876907
26707026
27599975
0
Evolution of labour productivity (output/employee) growth in various food and drink industries (2000=100)
VALUE ADDED (in local currency) PER EMPLOYEE
2000
2001
2002
2003
2004
2005
Australia
85374
75995
87583
89648
97876
89161
Evolution of labour productivity (value added/employee) growth in various food and drink industries (2000=100)
IN DOLLAR
LABOUR PRODUCTIVITY
United States
CIAA: calculated guess
CIAA: Based on 2003 data the ratio V.A. and production is 0,392
CIAA: Production FDT = 27547 VA FDT = 6407 Ration 0,23%
CIAA: VAT is 17% VAT payable = 386,89 (100 million Yuan)
2003
2004
2005
Articles
1.5
1.7%
4
3.8%
5.2
6.9%
32.5
35.8%
19
18.3%
9.7
12.9%
6.4
7.0%
7
6.7%
9.4
12.5%
Cigarettes
33.3
36.6%
42
40.4%
32.7
43.5%
TOTAL
90.9
104
75.2
European imports as a percentage of total food and drink imports for various countries
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Australia
26.38%
28.15%
31.34%
30.73%
27.03%
27.85%
30.22%
30.50%
31.71%
30.62%
Argentina
23.69%
21.57%
22.37%
22.67%
18.96%
14.49%
12.82%
10.92%
12.66%
13.90%
Brazil
17.06%
16.81%
19.36%
20.35%
24.47%
22.04%
21.84%
22.86%
25.86%
China
5.70%
7.12%
7.42%
9.16%
11.04%
9.50%
7.63%
7.45%
7.64%
9.61%
India
5.44%
5.97%
9.10%
6.91%
4.49%
4.67%
3.18%
3.23%
3.32%
4.47%
US
27.65%
26.60%
26.62%
26.57%
26.04%
25.23%
26.11%
26.38%
25.83%
25.85%
Japan
12.04%
12.99%
13.90%
13.38%
13.37%
13.16%
14.08%
14.95%
15.61%
14.02%
2000
2000
2000
2000
2000
2000
2000
2001
2001
2001
2001
2001
2001
2001
2002
2002
2002
2002
2002
2002
2002
2003
2003
2003
2003
2003
2003
2003
2004
2004
2004
2004
2004
2004
2004
Australia
Argentina
Brazil
China
India
US
Japan
0.2703208326
0.1896221258
0.2035437225
0.1104165553
0.0448911322
0.2603661591
0.133742298
0.2784864379
0.1449409835
0.2446935204
0.0949783926
0.0466635109
0.2522520322
0.1316294293
0.3021840596
0.1282304444
0.2204285418
0.0763001422
0.0318396019
0.2611008815
0.1407944078
0.3049853176
0.1092069974
0.218385545
0.0745173701
0.0322635949
0.2638406222
0.1494804118
0.3171298884
0.1265866409
0.2286130805
0.0763793655
0.0332021746
0.2582911065
0.1561031076
Australia
Australia
Australia
Australia
Australia
0.3062449809
Argentina
Argentina
Argentina
Argentina
Argentina
0.1390042834
Brazil
Brazil
Brazil
Brazil
Brazil
0.2585742451
China
China
China
China
China
0.0961470855
India
India
India
India
India
0.0447434277
US
US
US
US
US
0.2584543807
Japan
Japan
Japan
Japan
Japan
0.1401951485
2000
2001
2002
2003
2004
2005
* EU 15
Share of EU* products in total f&d products of various countries
0.2703208326
0.2784864379
0.3021840596
0.3049853176
0.3171298884
0.1896221258
0.1449409835
0.1282304444
0.1092069974
0.1265866409
0.2035437225
0.2446935204
0.2204285418
0.218385545
0.2286130805
0.1104165553
0.0949783926
0.0763001422
0.0745173701
0.0763793655
0.0448911322
0.0466635109
0.0318396019
0.0322635949
0.0332021746
0.2603661591
0.2522520322
0.2611008815
0.2638406222
0.2582911065
0.133742298
0.1316294293
0.1407944078
0.1494804118
0.1561031076
Research and Innovation in the F&D Industry
Novel Food and Claims, Barcelona 28-28 March
 
Investment in R&D reaches only 0.24% of EU food and drink industry output and is constantly below the R&D spending of the food and drink industry in other developed countries. Even large EU companies spend, per employee, 45 % of what non-EU companies invest in R&D. In addition, most innovation indicators of the food and drink sector are below the manufacturing industry average.
Chart1
Japan
Norway
Australia
Korea
European Union (EU15)
2004
Business Expenditure on R&D as a percentage of total output (2004)
0.0120756184
0.0066829353
0.0041266706
0.0036568959
0.0035004448
0.0029167684
0.0024309418
000 of national currency
....Food products and beverages
Measure
Industry
....Food products and beverages
....Food products and beverages
R&D as a perc of OUTPUT F&D&T
R&D in '000 of current PPP dollars
R&D in '000 local currecny
Industry
Industry
Time period
Variable
Production
Industry
Time period
0.29%
0.27%
0.29%
0.30%
0.31%
0.29%
0.31%
0.31%
0.29%
583,161
600,445
608,086
602,013
629,559
678,894
682,812
686,432
725,964
Business expenditure on R&D in the EU15 has been decreasing during recent years. Especially the 16% to 18% reduction of R&D expenditure by the British, the Dutch and the Danish food and drink sector in 2004, result in an overal reduction of the R&D budget
2004
Japan
1.21%
Norway
0.67%
Australia
0.41%
Korea
0.37%
0.29%
CIAA: http://statbank.ssb.no/statistikkbanken/default_fr.asp?PLanguage=1 no data 2004 yet
CIAA: See Sheet on production data
R&D as a perc of OUTPUT F&D&T
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Australia
Canada
Korea
Production data
0
0
0
0
0
0
0
CIAA: The major difficulty in the construction of the European Union (EU) total is that official BERD data for all EU countries are available for only a small number of industries and years. The procedure followed to construct the EU total estimates was to use the available ANBERD estimates for Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and the United Kingdom, as well as the official BERD data for Greece and Portugal. These thirteen countries represent more than 95 per cent of total BERD performed by all 15 EU countries. New EU member countries are not included (Czech Republic, Poland). From 1991, the EU includes former East Germany as part of the unified Germany.
CIAA: IDEM as 2003, no 2004 data yet
Japan
Norway
Australia
Korea
European Union (EU15)
Business Expenditure on R&D as a percentage of Output (2004)
0
0
0
0
0
0
0
2004
Business Expenditure on R&D as a percentage of total output (2004)
Exchange Rates
European Union (as in 2006 report)
<>
127,210
131,140
128,960
129,050
134,530
143,903
144,701
147,824
161,884
R &D and Innovation
World-wide trends
R&D in the EU: 0.24%; in the US 0.35%; in Australia 0.4%; in Japan 1.21%
Novel Food and Claims, Barcelona 28-28 March
The voice of the European food and drink industry
Medium-sized companies: a promising group for food & drink innovations
Novel Food and Claims, Barcelona 28-28 March
Recent research demonstrates that size remains a major factor in determining whether or not companies invest in innovation activities and the type of activities they invest in. Big companies tend to be proactive in all directions; small companies must choose, medium-sized companies are in a sense the most balanced and emerge as the prototype of innovators in the food industry. Medium-sized companies must therefore be treated as a group with its own logic and specific characteristics. . This part of the industry has a history of continuous innovation and a great attention to product development. It is often the place where important and radical innovations are made. Medium-size firms are typically the most promising group of innovation based food companies.
Chart 5
Mayor Innovations Product
Mayor Innovations Process
Mayor Innovations Other
0.09
0.08
0.09
0.04
0.23
0.47
0.11
0.06
0.11
0.03
0.54
0.15
0.12
0.12
0.18
0
0.46
0.12
0.21
0.1
0.28
0.03
0.31
0.07
Sheet1
Mayor Innovations Product
Mayor Innovations Process
Mayor Innovations Other
Sheet2
Sheet3
Core R & D Challenges for the Food and Drink Industry
to boost Competitiviness
An efficiennt Managing of the Food Chain
Facilitating:
The delivery a (more) healthy diet
Commitment to:
Achieving a sustainable food production
Training & Technology Transfer to smaler and medium sized enterprises
Novel Food and Claims, Barcelona 28-28 March
Instead of discussing 7 challenges separately, I explain only a few
The voice of the European food and drink industry
Regulatory constraints
Unjustifiable lengthy and complicated approval procedures; therefore especially preventing innovation in SME sector
excessively long time span for a return on investment act as disincentives to R&D investment and to innovation
Novel Food and Claims, Barcelona 28-28 March
A survey among CIAA member companies highlighted that 48% of food and drink companies do not envisage expanding their R&D operations in Europe, 4% even consider closing down activities.
The voice of the European food and drink industry
R&D and innovation: Novel Foods
Novel Food and Claims, Barcelona 28-28 March
The situation described in this slide is just not normal and not acceptable. We could understand some more length to the procedures: i.e. double the US time needed, even three times, but not 10 times. This is what we means when saying that regulatory constraints hinder innovation in Europe because procedures are too burdensome and lengthy. Imagine the problem with return on investment when costs of development have reached some 19-24 million euro!
Another example is the additve example E-481,
PREMIUM INGREDIENTS, S.L. Costs of a new application of an additive
Premium Ingredients is a small Spanish company. Its core activity is the design, production and
marketing of blended ingredients and additives to create better quality processed foods for all
sectors of the food industry. Their formulations are based on a blend of hydrocolloids, emulsifiers,
milk proteins, animal proteins and other functional ingredients and/or additives.
The company has developed a new trend setting emulsifier/stabilizer for meat emulsions and
other food industry emulsions that can entirely substitute both sodium casein and soy proteins at a
very competitive price and in addition, free of allergenic and GMO substances, called
PREMULTEX®. One of the two active substances which are part of the PREMULTEX® product
composition, i.e. Sodium Stearyle Lactilate E-481, is included in the European regulation as ‘other
permitted additives’ and not as ‘permitted additives for general use’ due to the fact that the
functionality of SSL E-481 until the invention of PREMULTEX® gave no desired functionality alone
when used in meat and other food products. Though Premium Ingredients has been awarded
Bronze with PREMULTEX® in the last FI Europe 2005 Awards / World Food Ingredients Trade
Fair and is receiving orders from potential customers all over the world, they are still waiting (after
more than 2 years) for national and EU administration to work on the inclusion of SSL - E-481 for the appropriate use in meet products in the legislation.
The voice of the European food and drink industry
Conclusions
EU
Recognition of the contributions of the ETP « Food for Life » to the Strategic Research Agenda
Access to EU funds in particular for SMEs
Reduce administrative burden
administrative / regulatory help
Novel Food and Claims, Barcelona 28-28 March
Combine public and private investment.
The voice of the European food and drink industry
Where to find more information about CIAA
CIAA Public Website
Access to ETP Food 4 Life
Novel Food and Claims, Barcelona 28-28 March
The voice of the European food and drink industry
THANK YOU
Novel Food and Claims, Barcelona 28-28 March
)
in various food and drink industries (2000=100)
80
90
100
110
120
130
140
150
160
170
180
2000
2001
2002
2003
2004
2005
Australia
Canada
EU25
Japan
Mayor Innovations Product and Process
Mayor Innovations Product
Mayor Innovations Process
Mayor Innovations Other