trends developments colombia
DESCRIPTION
TRANSCRIPT
Opportunities & challenges for Tropical Fruit & Exotics from Colombia on the Dutch / EU market
Some Basic FFV numbers:
• 1990 – 2010
• Vegetable production worldwide increased 60 %
• Fruit production worldwide increased 100 %
Some Basic FFV numbers:
• 2005 - 2011
• Fruit & Vegetable production Colombia increased from 9,2 – 10,2 million tons
• Export value of Colombia Tropical and exotic Fruit in 2012 reached 48,6 million USD.
Some Basic FFV numbers:
• 2011
Main fruits exported:
• Bananas 36 %
• Physalis 24 %
• Passion fruit 8 %
• Baby bananas 5 %
• Granadilla 2 %
Example products with high market potential in Europe:
• Avocado Hass
• Limon Tahiti
• Melons (Piel de Sapo, Yellow Honey Dew, Cantaloupe, Galia)
• Watermelons (Quetzali, seedless)
• Pomegranates (depending on window of supply)
Consumption FFV / year Europe
• Vegetables 60 mln tons
• Fruit 54 mln tons
Import Volumes 2011
• Vegetables 3.8 mln tons
• Fruit 12.9 mln tons
EU Market
• 28 countries
• 500 million consumers
• 28 different cultures
• 28 different eating patterns
• 28 different average income levels
• 28 different business mentalities
The Netherlands Nederland
Holland Holanda
Paises Bajos • 16.5 Million population
• 41.526 Sq Km
Gateway to Europe:
• Schiphol Airport
• Rotterdam Sea Port
Future Developments for the supply from emerging countries:
• Economic development new EU members
• Growing importance Retail organizations
• Increasing demand for food safety
• Changing role importers towards chain
management
• Growing demand for convenience, exotics and niche products
• Increasing demand for Sustainability and CSR
Credit Crisis Short term threats:
• Loss of confidence consumer
• Less spending
• Credit insurance more difficult
• Banks more careful with overdrafts
• Exceeding of Payment terms
Growing importance of
large Retail Organizations
• Approx 75 % of FFV sold via the supermarkets
• Concentration in buying power
• Demand for high level of professionalism of the producers
• Food safety, programs, continuity
• Chain control from seed to shelf
Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe
Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe
Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe
Changing Role of the importer
• Change to supply chain manager
• Control on programs from production to supermarket
• Control on the logistic chain
Quality:
• Quality is not longer an issue
• Everyone demands first class
• No secondary markets
• High costs for destruction
EU enlargement:
• Higher income / lower consumption
• Shift from basic volume products to diversity F & V products
• More availability of other food products as snacks and junk food.
Logistics:
• New logistic connections to new EU members
• Development of new import companies in new EU countries
• More direct shipments, surpassing the traditional importers
Exotics:
• Higher consumer income
• Increased Travel to distant holiday destinations
• Large Ethnic communities
Food Safety:
• Key issue
• Demand for food safety protocols
• General food legislation
• Stricter control on MRL’s (maximum residue levels)
• Harmonized in the EU per 01-09-2008
• Supermarkets increasingly stricter than European laws
Certificates:
• Need to follow protocols
• GlobalGap a minimum entrée ticket to the EU market.
• Growing demand for protocols as BRC, HACCP and others
• Without certificates only spot market access.
Hygiëne ?
Organic:
• Growing market for organic
• Demand larger than supply
• Supermarkets only interested in programs
• Consumer not really ready to pay more
Sustainability / CSR
• Care for the environment
• Carbon footprint
• Local for local
• Growing consumer awareness on social circumstances
• Ethical trade
• Fair trade
Health:
Health:
• Higher standard of living / more concern for health issues
• Overweight a major concern
• Governmental and EU campaigns to promote consumption of fresh F + V
• Possibilities for the trade to emphasize health claims
Convenience:
• Higher income / more demand for convenience products
• Prepared, sliced, pre-cooked
• Snack packs
• Prepared in production countries
• Convenience, innovation and problem solving
Innovation / Added value:
• New concepts
• Ready to eat programs
• Product development
• Kids marketing
Ethnic markets:
• Large populations immigrants
• Own food cultures
• Growing consumption of ‘ethnic’ food
• Integrating into the native kitchen
• Specialized ethnic shops
• Long term, assimilation in main stream supermarkets
Opportunities for developing countries:
• Anticipation on increase of scale in the supply chain
• Increasing demand for outsourcing
• Marketing towards new EU members
• Value adding / convenience
• Niche products / windows of supply
Critical factors:
• Increasing level of professionalism
• Focus on food Safety protocols
• Quality as basis
• Focus on logistics
• Increased scale of production
• Improvement of communication
Thank you!