Market Information and Opportunities for Trade with Europe

1. Market Information and Opportunities for Trade with Europe March 23, 2011

2. General Points to Note Overview of Regional & National Trade with the EU Overview of the Food & Beverage Industry in EU Trends and Opportunities in major Food & Beverage Sectors Meat Products Processed Fruits and Vegetables Dairy Products Sugar and Sugar Based Products Fish and Seafood Beverages Other Sectors of Interest Conclusions Outline

3. General Points to Note

4. Objectives • To provide insight into the European Union’s (EU) market for food & beverage products • To identify EU trends in food & beverage sector • To identify opportunities for exports of Trinidad and Tobago’s food and beverage products to the EU

5. Examined EU Food and Beverage Industry reports Analyzed current and potential trade data for the period 2005-2009 Bilateral Trade between the EU and TT TT World Exports EU World Imports Matched rising TT exports (globally) to rising EU imports Identified other opportunities for products based on the national, regional and international trade climate Methodology

6. Data source: Trade-map, International Trade Centre All monetary figures are quoted in $US The effects of the global financial and economic crises which began in 2007, were realised in 2009 The EU refers to the EU 27, whose members are as follows: Additional Points to Note

7. Members of the European Union 27 • Austria • Belgium • Bulgaria • Cyprus • Czech Republic • Denmark • Estonia • Finland • France • Germany • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxembourg • Malta • Netherlands • Poland • Portugal • Romania • Slovakia • Slovenia • Spain • Sweden • United Kingdom

8. Overview of Regional and National Trade with the EU

9. CARICOM Exports to the EU

10. TOTAL T&T EXPORTS

11. T&T F&B EXPORTS TO THE EU

12. Overview of the European Food and Beverage Sector

13. EU Food & Beverage Sector • Approximately 310,000 companies • Employ over 4 million persons • Total Population of 501 million (1.1.2011) • Largest food consumption potential in the world • Main EU demand trends: • Healthy nutritious food • Low-fat, organic food • Convenient pre-packaged and pre-cooked food

14. Trends and Opportunities in Major Food and Beverage Sectors

15. Major EuropeanFood & Beverage Sectors • Food Sectors: • Meat products • Processed fruit and vegetables • Dairy products • Sugar and sugar based products • Fish and seafood • Beverages Sectors: • Wines • Beer • Spirits • Mineral water • Soft drinks

16. Meat Products • Main meat products: pork, poultry and beef • Major producing countries: Spain, Netherlands and Germany • The EU meat industry is weak: • Non-European countries such as Brazil and Argentina supply cheaper meat products. • Source: Business Monitor International

17. Trade in Meat Products • The EU imports 46.4% of total world exports • EU imports grew by approx. 32% over the period 2005-2009 • Fastest growing EU markets include: • Poland (41%) • Czech Republic (21%) • Netherlands (15%) • T&T’s fastest growing exports: • Boneless bovine cuts • Swine carcasses • Fresh, chilled or frozen fowls • Challenges: • Trade barriers • Sanitary protection laws • Outbreaks of animal disease

18. Processed Fruits and Vegetables Accounts for more than 50% of EU consumption. This sector has great potential for foreign companies - the EU’s supply is insufficient. Major products demanded include: Canned and frozen vegetables Fruit juices Fruit preparations Jams and jellies Potato products Canned vegetables

19. Trade in Processed Fruits and Vegetables • The EU imports 50.2% of total world exports for vegetable, fruit, nuts etc • T&T presently exports these products to: • Netherlands • France • UK • Germany • Italy

20. Fruit and Vegetable Exports from T&T • Main products: • Orange Juice • Mixed Juices

21. Dairy Products • The EU produces mainly for the domestic market • Major producers – Austria, Italy, France • EU exports includes: • Milk powder • Cheese • Yoghurt • Butter • Ice-cream • Increasing trends towards: • Low-fat alternatives e.g. skimmed milk • Single serving packages • Marketing of health benefits

22. Trade in Dairy Products • EU imports of dairy products grew by 27.6% per year (2005 – 2009) • Expected to reach 57.9% • T&T currently exports: • Milk and Cream • To France and Italy • Items of interest include: • Cheese and curd • Milk and cream

23. Sugar based products • In the EU, sugar manufactured from beet is an input for candy. • Major products include: • Sugar confectionery • Chocolate confectionery • Bakery wares • Emphasis on natural and artificial sweeteners

24. Trade in Sugar Based Products • The EU imports 35.1% of the world's sugar based products • T&T exports: • Sweetened and unsweetened biscuits • Bread and cakes • Items of interest include: • Chewing gum • Sugar confectionery (candy) • Chocolate

25. T&T’s Sugar Industry • Sugar and sugar confectionery had the third highest export value in 2006: $42M • Spike in global sugar prices • SMCL ceased operations in 2007 • Shut down in 2010

26. T&T’s Exports of Sugar Based Products

27. Cocoa and Cocoa Preparations • Chocolate and other food preparations • EU world imports: $4 billion+ per year • T&T world exports: $6 million per year • T&T exports to the EU: $465, 000 per year • Cocoa Beans • EU world imports: $3 billion per year • T&T world exports: $3 million per year • T&T exports to the EU: $1 million

28. Fish and Seafood • Main sub-sectors are: • Fresh products • Frozen foods and • Canned fish/shellfish • Third world countries can supply frozen/canned products extremely cheaply. • Preferred species based on tradition of particular countries/regions. • The EU imports the raw fish and shellfish and then processes it further into convenience food for consumption.

29. Trade in Fish and Seafood • Top EU suppliers: • Spain • Belgium • France • T&T currently exports to: • United Kingdom • Netherlands • Potential Products: • Fillets • Crustaceans • Sardines • Frozen fish meat, tunas (yellow fin and big eye)

30. Fish, crustaceans, molluscs nes • EU imported approximately $2 billion per year in whole fresh fish • 2nd highest import value for EU • T&T exported average of $3.7 million per year to the rest of the world • An average of $12,000 per year goes to the EU

31. Beverages • The EU exports: • ¼ of the world’s alcohol • More than ½ of the world's wine • Mineral water • Soft drinks • World leaders in the beer market include: • Belgium • The United Kingdom • Netherlands • Denmark • Wine production remains fragmented according to regions throughout Europe • The key to success in the beverage industry is • Strong branding • Wide product range • New products and innovation

32. Trade in Beverages • The EU imports 45.9% of the world’s beverages exports • T&T currently exports to: • Netherlands • France • UK • Export Products for T&T: • Orange, Grapefruit and Pineapple juices • Rum • Bitters

33. Beverages, spirits and vinegar • Valuable products: • undenatured ethyl alcohol • rum and tafia • beer made from malt • Further opportunities: • non-alcoholic beverages nes excluding fruit and vegetable juices

34. Other Potential Exports

35. Animal, Vegetable Fats and Oils • The EU imports 33.3% of world exports • T&T currently exports to: • UK • France • Greece • Growing EU Markets: • Italy • Germany • Netherlands • Spain • Potential Products: • Margarine • EU world imports: $4 billion/year • T&T world exports: $27 million/year • Coconut Oil • EU world imports: $180 million/year • T&T world exports: $1.5 million/year

36. Edible vegetables and certain roots and tubers • Specific products include: • Onions • Garlic • Cabbages • Peas / Lentils • Peppers • Potatoes • Edible fruits, nuts, citrus etc • Potential market: Germany • T&T’s main exports: • Paw paws • Melons • Coconuts

37. Coffee, tea mate and spices • Market Dynamics: • Main importers include: Belgium, Germany and the Netherlands • Fastest growing markets: France (17%), Italy (16%), United Kingdom (12%) • Tobacco and manufactured tobacco substitutes • TT currently exports to Greece • Potential markets include Italy, Germany and Belgium • T&T can export to the EU: • Coffee • Green tea • Black tea • Pepper • Cumin seeds • Cigarettes containing tobacco

38. Miscellaneous edible preparations • Current Export Products: • Sauces • Food preparation • Tomato ketchup, • Ice cream • Baking powder • Current Export Markets: • France • UK • Bulgaria • Germany • Greece • Italy • Netherlands Potential Market: Spain

39. Miscellaneous edible preparations • Specific products: • Sauces • Preparations, • Mixed condiments • Mixed seasoning products • Tomato ketchup

40. Conclusions

41. Overall Look at the Trends

42. Illustration of the Trends

43. Conclusions • The CARIFORUM-EC Economic Partnership Agreement can help facilitate exports • Domestic market size should not influence production levels • Take advantage of the benefits of Economies of Scale: • Maximize production/ Use up excess capacity • Use this opportunity to invest and expand • EXPORT to the EU!!!

44. QUESTIONS?

45. THANK YOU! Contacts Ms. Trudy Lewis Senior Trade Specialist Level 14 Nicholas Tower Tel: 623-2931/4 Ext 2113 Email: lewist@gov.tt Website: www.tradeind.gov.tt Ms. Krysta Ramrattan Economist I Level 14 Nicholas Tower Tel: 623-2931/4 Ext. 2100 Email: ramrattank@gov.tt