Trends Developments Fresh Fruit vegetables Piet Schotel Consultant

Trends & Developments Fresh Fruit & vegetables

Piet Schotel Consultant for the overseas imports of FFV in Europe

Owner of FCE Export SAC, export company in Peru; subsidiary in Colombia. Mango, avocado, Limes, mandarins

Future Developments for the supply from emerging countries: • Growing importance Retail organizations • Increasing demand for food safety protocols • Increasing demand for Sustainability and CSR • Changing role importers towards chain management • Growing demand for convenience, exotics and niche products

EU Market • • • 28 countries (Still ) 500 million consumers 28 different cultures 28 different eating patterns 28 different average income levels 28 different business mentalities

The Netherlands Nederland Holanda Paises Bajos • 17 Million population • 41. 526 Sq Km

Gateway to Europe: • Schiphol Airport • Rotterdam Sea Port

Retail power! • 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

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

Economic development: • 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.

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 -092008 • Supermarkets increasingly stricter than European laws

Certificates: • Need to follow protocols • Global. Gap a minimum entrée ticket to the EU market. • Growing demand for Hygiene protocols as HACCP, BRC and others • Without certificates only spot market access. • No Global. Gap – No chance

Supermarkets demand: üStricter MRL (Maximum Residue Level) standards üStricter ARf. D (Acute Reference Dose) standards üMaximum number of active ingredients Exceeding the EU law!

Examples extra demands: Supermarket ALDI (Germany) Max. % of MRL Max. % of ARf. D Max. # active ingredients 70% per substance 80% of sum of substances 3 -5, depending on product EDEKA (Germany) 70% per substance 100% per substance n. a. EDEKA “Gärtners Beste” 50% per substance 100% per substance n. a. REWE (Germany) Albert Heijn (NL) 70% per 50% substance 70% per 100% substance n. a. 33, 3% EU MRL or German MRL (lowest) 70% per substance, 100% of sum of substances n. a. 33, 3% 100% 4 Kaufland (Germany) LIDL (Germany)

Hygiëne ?

Sustainability / CSR • • Care for the environment Carbon footprint Local for local Growing consumer awareness on social circumstances • Ethical trade • Fair trade

The Sustainability Initiative Fruits and Vegetables (SIFAV), aims to make imports of fruits and vegetables from Africa, Asia and South America 100% sustainable in 2020. Importers, supermarkets, governments and BSO’s committed to this initiative. 2020 is more close than you may think!

Email from a potential client: Requirements: Hi…. , Please see my contact details. It would be good to see your offers on a regular basis. Also – please can you have a look if your growers have the following certifications, which we would need for supply to our UK retailers: - Global Gap certificate - Proposed list of Pesticides the grower intends to use - Residue analysis - BRC - Sedex membership with SAQ completed to 100% Many thanks, Jack

Organic: • Growing market for organic • Demand larger than supply • Supermarkets only interested in programs • General consumer not really ready to pay more

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

Trade channels • Unlimited supply of FFV in all seasons • Change in retail channels : – Convenience stores – Gas stations – Fresh markets – On line purchases

Exotics & Tropicals: • Growing consumption in Europe • Higher consumer income • Increased Travel to distant holiday destinations • Large Ethnic communities

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 DR: • Anticipation on increase of scale in the supply chain • Windows of supply • Niche products • Organic Produce • Value adding / convenience

Critical factors: • • • Increasing level of professionalism Improvement of communication Focus on food Safety protocols Sustainability booming! Quality as basis Focus on logistics

Definition: • The market decides what the producer will have as a result.

Thank you!