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The market for tropical and exotic fruits in the European Union Gustavo Ferro ProFound – Advisers In Development March, 2013 – Proexport seminar. Introduction. Gustavo Ferro Market analyst : agro-industrial products
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The market for tropical and exotic fruits in the European Union Gustavo Ferro ProFound – Advisers In Development March, 2013 – Proexport seminar
Introduction • Gustavo Ferro • Marketanalyst: agro-industrial products Fruits & vegetables (fresh and processed), coffee, cocoa and cocoaproducts, vegetable oils, spices & herbs Mainclients: CBI, SIPPO, Proexport, CATIE, IDB, IDH • ProFound – Advisers In Development: valuechaindevelopmentservices: maketintelligence, VCA analysis, trainings, project facilitation, businessdevelopment • Participants
Agenda Part I: EU market overview – tropical and exotic fruits • EU fruit consumption and production • Tropical vs. Exoticfruits • European market characteristics • Entry channels and mainplayers • Market trends and developments Part II: Export guidelines – diversifying markets • Going East – CzechRepublic case • Why to venture intonewmarkets • Tradechannels • Existing and futureopportunities • Business practices • Product marketing • Delivery, payment, services
European Union – fruit consumption Largest per capita consumers EU-27 Gross per capita fruit consumption in kg / year, 2010 1 Cyprus 2 Italy 3 Romania 4 Portugal 5 Greece Freshfel Europe, 2011
European Union – fruit production EU fruit production 2011, in mln. tonnes 1 2 3 4 5 FAOSTAT, 2013
EuropeanUnion – tropical fruitprofile Consumption Germany United Kingdom Italy Spain France 2 2 5 1 3 1 Imports Belgium Germany United Kingdom Italy The Netherlands Mainsuppliers CostaRica Ecuador Colombia DominicanRepublic Peru 5 3 4 4
Exoticfruits – a matter of definition • Tropical vs. Exotic fruits VS. • Unfamiliar to most consumers • Low market volume, high marketvalue • Higher risks • Alternativemarket entry strategy yang mei golden kiwi
Exoticfruitmarkets in the EU – marketprofiles Lowconsumption Fruitproduction (apples, pears, berries) Traditional Marketgrowth Maintraders Mainmarkets Highquality Strictcontrols Consolidatedmarkets Fruitproduction Traditionalcuisines LatinAm.population (Spain)
Trade statistics – reflecting market profiles Largest EU importers of exoticfruits, in 1,000 tonnes % of Colombiansupplies Potential competitors… Madagascar 30% of EU supplies tamarinds, lychees Vietnam 5% of EU supplies pitahaya (decorative) Kenya Low-cost passion fruit Malaysia, Thailand pitahaya, carambola DIRECT IMPORTS Largestimporter and 2nd largestsupplier: re-exports!
Price competitiveness – Colombia Selection of price indications, € /kg, CIF How to convey and sell quality? • Source: Market News Service of International Trade Centre, 2012
Trade channels – main actors Trade Structure Entry point Sea transport (mainstream) Air cargo, via main EU airports (specialised) • Connected to distribution system • Temperature-sensitive transport; avoid mechanical damage Intermediary Importer, Agent Agent’s role diminishing Mainstream vs. specialised importers Consolidation! Distributor National or Intra-EU Importer-wholesaler role or independent Retail channels or Food service Major retailers vs. specialised Vertical integration; tightening of requirements Minimum order quantities differ between trade channels However, ensureyoucandeliver: full containers or full pallets Orders are made every 3-4 days
EU market trends – exotic fruits • Interest in exoticcusines / exoticfruits • Travelling / Storepromotions • Cooking shows / Internet (websites, blogs) / Youtubeculinarychannels • Other media
EU market trends – exotic fruits • Healthy living – fruitscontaininghealthycomponents (antioxidants, dense nutrients) “Superfruits” introduced in smallamounts, as ingredients forthefoodindustry (juices, smoothies); slowlymakingittosupermarketdisplays in freshform. “Lessprocessing” trend • Sustainability • Consumerawareness: environment + social • Origin Traceability • Certification
EU market trends – exotic fruits • Food miles; Buying local (e.g.Streekmolen) Related story: SoilAssociation (UK) case
EU market trends – exotic fruits • Economic crisis Marketpolarisation Consumption of cheaperitems Opportunitytoindulge • Higherrequirements, strictercontrols production and handling processes Health and safety (GlobalGAP, HACCP, BRC) MRLs (Pesticides) – Further reading No GMOs! NovelFood – Further reading