CHANGING MARKETS 2015 – FRUCHTHANDEL Special

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SPECIAL

Special

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CHANGING MARKETS

Soon nothing more than mediocrity for Europe - premium for Asia?

MIDDLE AND FAR EAST_ 3 4 6 7

Gulf States increasing in importance for the global trade China: One of the most dynamic retail markets in the world China: Huge potential for market growth in big cities South Korea: Strong consumer demand for high quality products

GERMANY_ 14

BVEO: Excellent image for products “Made in Germany"

TURKEY_ 17 18

New export chances due to Russian embargo Target Eurasia’s food industry at WorldFood Istanbul 2015

BENELUX_ 19 22

The Netherlands: Sights firmly set on new sales markets Belgium: Shifting trade from Eastern Europe to Far and Middle East

CENTRAL AND EASTERN EUROPE_ 24 26 27 28 28

Czech Republic: Stronger emphasis on product quality Hungary: Russian trade embargo hits the domestic market Bulgaria: Radical change urgently needed Poland: Grocery market still affected by deflation of food prices Poland: Hauliers suffer from the embargo and seek new markets

OVERSEAS_ 29 31 32

Israel: Producers and exporters struggle with exchange rates Argentina: Asia – a tough market for the Argentine fruit sector South Africa/Hortgro: China access a stepping stone for the apple industry

TRADE SHOWS_ 10 10 12 20

ASIA FRUIT LOGISTICA 2015: Big growth for Asia’s top produce show Cool Logistics Asia: Food safety, container shipping and cold chain investment under the spotlight FRUIT LOGISTICA 2016: Take advantage of global growth opportunities at the fair in Berlin Spain/Fruit Attraction: Significant European participation expected

COMPANY PROFILES_ 13 15 16

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IFCO Systems: Focus on Austria, Asia and CEE-countries Perishable Center Frankfurt: Handling temperature sensitive products 24/7 Eurofins Global Control: Global network provides a one-stop concept IMPRINT

This special report is an insert in Fruchthandel Magazine issue no. 31-32/2015

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Special Changing Markets

Soon nothing more than mediocrity for Europe — premium for Asia?

Photo: Carrefour

The ban on Russian imports of fruit and vegetables has significantly changed the flows of trade. Although Russia had already lost some of its appeal as a market for some European exporters –the Netherlands being an exception with reported growth in its sales – the embargo really kindled discussion about change in general in the international flow of fresh produce. Attention has suddenly turned to trading opportunities in the Middle East and Asia, as well as in Latin America. In its new special report on “Changing Markets” Fruchthandel Magazine takes all these trends into consideration. On the following pages we provide insights into markets that offer new opportunities and at the same time re-assess the role of Europe as an international centre of trade.

From the point of view of imports, Europe will have to face up to stronger and tougher competition for both volume products and premium items from Asia and the Southern Hemisphere in future. This is just one of the conclusions drawn by a new study by Prof. Dr. Ludwig Theuvsen of Göttingen University.

Taking various types of fruit as an example, the researchers addressed the question of how demand from new customers and changing quality requirements affect imports and exports. How is the flow of goods changing in the international fruit trade, quite independently of the ban on Russian imports? “The dominating influence of the EU as an import market in the very globalised fruit trade will decline, and Germany too will have to be prepared for supply shortages,” concludes Prof.

Theuvsen. In contrast to the European Union, there are many parts of the world that have consumer markets with growing population, increasing prosperity and a greater domestic demand for higher quality products. “This will make such markets increasingly attractive for the international fruit trade, particularly since consumers there will be prepared to pay more for the products”, explains Prof. Theuvsen. The economic upsurge in these new markets will diminish the importance of western Europe. European importers are consequently worried that they will only receive standard quality, while the higher-priced premium products will be destined for the new markets.

Prof. Theuvsen and his team interviewed five exporters in the most important overseas supplier countries such as South Africa, Chile and Costa Rica for their study. The answers were clear: exporters criticised not only the pricing policy of European food retailers in general but also the different requirements with respect to residue values specifically in the German food retail sector. The latter has no scientific justification and were set quite randomly, the exporters claimed. This is why markets in other countries which do not have such strict and above all divergent standards are becoming increasingly attractive. 57 2

per cent of suppliers worldwide confirmed Europe’s declining significance as a sales market. What is more, the cost of transportation has risen worldwide on account of the strong dollar. This in turn has led Latin American suppliers, for example, to prefer to supply neighbouring countries rather than the more distant markets which are associated with higher costs.

But there are nevertheless some powerful arguments that underscore the important role which Europe will continue to have in the future too. Western Europe remains a hub for products, especially for Eastern European countries which have restricted access to the sea. Furthermore, European and German importers have a reputation for reliability and continuity, which is a big advantage in trade and commerce. Not all new markets enjoy long-established cooperations based on trust and a good payment discipline that is advantageous to overseas exporters.

Common barriers to trade that cause problems on the new markets also include cultural differences, language problems and an inefficient infrastructure. “Well-established trading routes for overseas goods are a big advantage in Europe,” the Freshfel President Luc Clerx confirmed in an interview for the study.

Clearly defined markets The situation from the point of view of European exports is fundamentally different. The new markets can be split into three categories.

On the consolidated markets with their critical and sensitive consumers, including Europe, the USA, Canada, Japan and Australia, real growth in exports can only be sustained through organic production, environmental compatibility and sustainability. Countries such as certain developed African states, parts of the Middle East, India and Turkey are classified as the “New Frontier”. Consumers on these markets buy fruit and vegetables out of pure necessity and are also price-conscious. These markets require volumes at a medium price level. The growth markets of Central and Eastern Europe, China, the Gulf States, Korea, Taiwan and Latin America are quite different. Consumers here demand higher external and internal quality standards and branded products without concentrating too much on the price. As a result, an exportoriented company has a very good chance of selling products to varying quality standards successfully on the different markets. Here too, the development of long-term business partnerships, joint-venture projects and investments help secure lasting access to the market.

Gabriele Bastian

Fruchthandel Magazin 2015 MIDDLE EAST ________________________________________________________________________________________________________________________

Gulf States increasing in importance for the global trade The United Arab Emirates and Saudi Arabia in particular are importing more and more fruit and vegetables from around the world into the Gulf region each year.

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ccording to information from „fruitandvegetablefacts.com“, these two countries accounted for 40 per cent and 34 per cent of all imports in the region in the year 2013. They were followed by Kuwait (10%), Qatar (7%) as well as Oman (6%) und Bahrain (3%). The Gulf States overall import around 5 million tons of fruit and vegetables. This is almost 2 million tons more than in 2008. The no. 1 import article in the year under report were bananas, with a volume of imports of 740,000 t. They were followed by oranges (715,000 t), onions (645,000 t) and tomatoes (615,000 t). Other important import products are apples (366,000 t), mangos (243,000 t), lemons (234,000 t) as well as soft citrus (164,000 t), grapes (104,000 t) and water melons (103,000 t). Important supplier countries in 2013 were Egypt (900,000 t), India (660,000 t) and Jordan (650,000 t) followed by the Philippines (620,000 t) and South Africa (455,000 t).

The Gulf States are also receiving more and more fruit and vegetables from countries in South and Central America every year. For example, in 2013 the region received more than108,000 tons of fruit and vegetables from Chile; other important suppliers include Ecuador (64,000 t), Argentina (21,000 t), Costa Rica (15,500 t) as well as Brazil (13,100 t) and New Zealand (25,000 t).

According to statistics, the biggest EU suppliers were Spain (approx. 56,000 t), Italy (approx.

47,000 t) and France (approx. 44,000 t).

Photo: © Oleg Zhukov fotolia.com

Photo: © lukasmuhlbauer - Fotolia.com

■ Bahrain: new legal requirements for fruit imports For many years now, the Kingdom of Bahrain, like the other Gulf States, is set to become increasingly important for the global fruit trade, and has been discussing a tightening of statutory import regulations for fruit and vegetables. The prime minister of Bahrain recently repeated these demands, making particular mention of the problems that often occur with water melons.

Over the past years, the plans repeatedly came up against strong resistance, with the business sector in particular fearing excessive bureaucracy. What this is essentially all about is improving

food safety through more stringent controls and stricter compliance with international phytosanitary standards. According to a bill dating from 2003, fruit importers in Bahrain should in future provide the relevant authorities with an overview for the entire year of their planned purchases from certified suppliers. In addition, this is intended allow better tracking of the origins of the products. The new regulations are scheduled to come into effect on 22 July this year. 

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Special Changing Markets CHINA ______________________________________________________________________________________________________________________________

One of the most dynamic retail markets in the world China’s retail sector continues to grow at a double-digit pace despite a GDP which is expected to grow by just over 7% in 2015 and per capita urban household disposable incomes which grew only 9% last year.

These are some of the findings of a new survey on the Chinese food retail market carried out by the USDA Foreign Agricultural Service.

International hypermarkets benefit from their reputation for offering better quality products than most domestic retailers.

Photos: Carrefour

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he strongest driver in China’s retail growth is currently urbanization, coupled with rising disposable incomes. Despite a relatively stable total population at 1.36 billion, urban populations are steadily increasing 3% annually, which ultimately added almost 20 million urban dwellers in 2013. There remains however significant room for growth as urban dwellers still represent just 54% of the total Chinese population. Nevertheless, China’s growth is still slowing down, as is evidenced by real GDP which slipped to 7.7% in 2013, an estimated 7.4% in 2014, and is forecast to fall further to 7.1% in 2015. While the traditional lines of market segmentation in retail are becoming increasingly blurred, most entities can still be categorized as hypermarkets, supermarkets, convenience stores, specialty stores, wet markets and eCommerce.

Hypermarkets Hypermarkets in China tend to be somewhat smaller than their western counterparts, and very few except Metro follow the big-box format faithfully. In large cities, they are typically multi-story operations. Most act as small shopping malls, setting aside a large amount of space for independent boutiques and eateries, a habit that tends to reinforce the perception of hypermarkets as places for occasional shopping expeditions rather than daily shopping. For the hypermarket itself, the food sales area typically accounts for about half of the total area.

The hypermarket format is much more concentrated than other retail channels and is do4

minated by foreign operators.

Particularly well-known names such as Carrefour, RT-Mart, Auchan and Wal-Mart are recording higher value growth than independent small grocers, thanks primarily to the continuing trend to urbanization.

Hypermarkets benefit from their reputation for offering better quality products than most domestic retailers. This is due to their perceived stricter quality control in a country where food safety is a major concern. As such, an increasing number of Chinese consumers visit hypermarkets instead of independent food stores for grocery shopping. Most hypermarket chains vary the proportion of imported goods they carry in individual stores depending on the income level and foreign population that the store serves.

Meanwhile, the trend towards urbanization in lower-tier cities has also stimulated leading retailers’ expansion into less developed regions looking for opportunities in third and fourth-tier cities.

king class shoppers, who are notoriously pricesensitive and less inclined to try new products than the more well-heeled customers in first and, to some extent, second-tier cities. Distribution is also a problem, as stores tend to source from local distributors, directly from manufacturers, or from local wholesale markets.

eCommerce The predominant trend in all regions of China in 2014, and moving forward into 2015, is and will remain the growing importance of eCommerce, and particularly mobile eCommerce, as a vehicle to drive sales among a young affluent consumer base with growing buying power. In 2013, China’s internet retail market reached 308 billion USD. According to Alibaba’s IPO filing, online retail sales in 2014 have grown 45% to 447 billion USD. Earlier projections by AT Kearney, suggested the market would grow from 390 billion USD in 2014 to 718 billion USD in 2017. Increasing numbers of internet users and the convenience of online shopping is supporting strong growth.

Consumers, especially young consumers, increasingly prefer shopping online because of lower prices, the expedient, door-to-door delivery service, extensive product ranges, ease of payment, and confidence in the vendor for delivering safe, high-quality products. . 

Supermarkets Domestic players have a strong presence in the supermarket sector. Companies like Beijing Hualian Group Lianhua (BHG), China Resources Vanguard, Parknshop, and Yonghui are some of the best recognized names. Department stores like Ito Yokado and Parkson generally compete in this retail segment. This market channel remains quite fragmented and major players within a particular region, and city-to-city within a region, vary considerably. The most successful supermarkets for imported foods are the upscale “lifestyle” outlets. There are also a large number of regional supermarket chains in third- and fourth-tier cities, and many have recently introduced limited imported food sections. Products that do well in this sector tend to be products already widely available in China, such as fresh fruit and affordable snack foods. The sparse selection of imports is rooted in the customer base of these stores, which have traditionally focused on wor-

An increasing number of Chinese consumers visit hypermarkets instead of independent food stores for grocery shopping.

Special Changing Markets CHINA __________________________________

Huge potential for market growth in big cities China, the country with the world’s largest population and the second biggest economy after the USA in terms of GDP (gross domestic product) growth, represents one of the fastest growing markets worldwide. With the rising income levels of its consumers, China has also established itself as an important import market for fresh fruit and vegetables.

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nnual fruit production in China amounts to more than 160 million t and has been growing continuously for more than a decade. China is among the biggest producers worldwide of apples, pears, peaches and nectarines, citrus fruits, bananas, grapes and plums. The most important success factor in Chinese fruit production is the favourable climatic conditions which allow the cultivation of a wide range of fruit.

Consumer trends, retail channels and food safety China is a major exporter of apples, pears and oranges. The export value of these three products has increased strongly over the last few years.

Bananas and tropical fruits, as well as apples, dominate on the other hand the imports of fruit into China, and exotic fruits are becoming more and more popular there as time goes on. This trend is strengthened in particular by the pre-

China’s economic growth and the increase in consumer income has increased demand for products of higher quality.

Photo: Carrefour

sence of foreign hypermarkets such as Carrefour and Metro, which both contribute considerably to the supply of imported exotic fruits into China.

China’s strong economic growth and the increase of its consumers’ incomes has also led to a higher demand generally for safer products of higher quality. Consumer preferences have changed as a result of rising income, improvements in the standard of living, and growing health consciousness. Consumers are showing greater readiness to pay more for products of higher quality.

However, seasonal as well as regional differences also influence consumption patterns.

Bananas, rambutan, mangos, durians, guavas, papayas and water melons are among the most popular varieties of fruit among Chinese consumers. Especially in major cities such as Shanghai, Guangzhou and Beijing there is still enormous growth potential for the marketing of tropical fruit and of convenience products, particularly juices.

In general one can make a distinction in China between the following main channels of distribution for fresh fruit and vegetables: large supermarkets offering a wide range of all different kinds of fruit and vegetables; smaller stores which specialise exclusively in fresh produce; and, not to be underestimated, the very many small stalls on markets and in the streets. Most sales are indeed still carried out “in the open” on marketplaces and street corners. These smaller stands are used frequently by farmers to sell their products directly to consumers. However imported fruit is also frequently available at such markets stands.

The most important and topical environmental and social issues in China have originated

The Chinese import market for tropical fruits is especially promising.

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primarily from the industrialization of agriculture and the urbanisation of the population. These issues include the overfertilization of the soil, the application of pesticides and other pre-harvest treatments, the loss of the biodiversity, and the worsening economic situation of family businesses. Questions of ecological, economic and social sustainability in farming and food in general are moving more and more to the forefront of consumer consciousness.

Forecasts Because China has such a high potential for further agricultural development, domestic production of fruit is expected to increase over the next few years. At the same time, however, consumer demand for fruit will increase at a greater rate due to increasing consumption levels and a dramatically expanding urban population. The Chinese market for tropical fruit is thus particularly promising. Middle class consumer demand for high quality fruit is increasing and there is still much growth potential for the increased consumption of fruit among the less well-to-do social classes of the population.

Due to the current shortage of agricultural land dedicated to modern production methods, the relatively high production costs, the general lack of adequate infrastructural resources, and the problematical impact on the environment, agricultural production in China is under great pressure. China will therefore continue to rely on imported products in order to fill the gaps in supply. According to recent forecasts, China will thus remain an important destination for EU fresh produce exports. With European markets reaching saturation point, and the loss of the Russian market as a result of the embargo in August 2014 adding to the problems, many European enterprises are becoming increasingly interested in China as a new export market.

Vera Belaya

Fruchthandel Magazin 2015 SOUTH KOREA/RETAIL FOOD SECTOR/USDA __________________________________________

Strong consumer demand for high quality products According to a report by the USDA Foreign Agricultural Service, expansion and diversification of large-scale retail businesses coupled with the introduction of information technologies has led to a rapid evolvement of the retail food sector in South Korea over the last two decades. Strong consumer demand for value, convenience, diversity and quality generates increased demand for imported food and agricultural products in the sector.

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he retail food sector in South Korea has evolved dramatically ever since the opening of its first large-scale discount store, E-Mart by Shinsegae Co., in 1993 and the liberalization of large-scale retail business to foreign ownership in 1996. Macro, a Dutch retailer, was the first to enter the market at that time. As a result, modern format, large-scale retail businesses such as hypermarket chains, grocery supermarket chains, convenience store chains and on-line retailers have expanded rapidly at the expense of traditional street markets and family-operated small retail outlets. Expansion of these new retail industries, coupled with the introduction of new information technologies, have brought about a major change in the way Korean consumers purchase daily necessities, including food. Ove-

Though limited in volume, Korean agriculture produces a considerable variety of agricultural products.

rall retail sector sales in Korea came to approximately 331 billion USD in 2014, up 1.7 per cent from the previous year. Retail sector sales have shown sluggish growth, however, in recent years as the Korean economy has slowed down under the influence of the global economic crisis.

Growth in the retail setor Total sales of food products in the retail sector rose 1.7 per cent over the previous year. Food products accounted for 22 per cent of overall retail sector sales. The supermarket sector was the leading retail channel for food products in Korea, followed by hypermarkets. However, in terms of growth, on-line retailers showed the highest growth in food sales between 2012 and 2014, followed by the convenience store sector.

In view of strong consumer demand for convenience and time saving shopping methods, online retailers and convenience stores are likely to continue to lead growth in food sales in the Korean retail sector in the coming years. In contrast, hypermarkets and department stores are expected to see stagnating food sales not only as a result of increasing competition from other retail sectors, but also because of limited space to open new stores in the market. The rapid expansion of large-scale businesses over recent years has heightened competitive pressure in the

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Special Changing Markets Korean retail sector. As a result, leading players have actively pursued merger and acquisition opportunities in order to achieve greater control of the market. It is notable that leading retail companies in Korea today have become “conglomerates” operating retail businesses in a number of different retail industry segments. For example, the Lotte Shopping Co. group includes grocery supermarkets, hypermarkets, department stores, convenience stores, as well as outlet shopping malls and more. Expansion into foreign markets has been another area in which leading Korean retailers have invested heavily in recent years in order to find new growth opportunities. Lotte Mart, for example, which currently operates 108 hypermarket stores in Korea, has increased the number of its stores in foreign markets to as many as 148 as of January 2015, including 102 in China and 38 in Indonesia.

Korean retailers in general rely heavily on independent importers or middleman distributors for imported food and agricultural products. Although leading players are making increased efforts to expand direct imports in order to achieve lower costs and improved product assortment, their current attention is mainly targeted on a limited number of large volume products such as fresh fruits and meat. Growth of modern retail businesses in Korea has coincided with the development of a modern, large-scale logistical service industry. Leading retailers are equipped with a temperature controlled distribution network of trucks and warehouses which cover the entire market. In comparison, small to medium size retailers generally rely on third party logistical service providers. Logistics service providers are likely to continue to grow strongly in the coming year due to the rapid rise in demand for home delivery services, something which is now widely offered, not only by on-line retailers but also by conventional retail outlets.

Consumer food trends Due in part to an aging population, there is a heavy emphasis among the general Korean public on healthy eating. Korean consumers’ belief in the importance of a healthy diet dates back thousands of years, as indicated by the well-known proverb, “food and medicine are from the same source”. However, “wellness”, a theme that has evoked new consumer trends in seeking physical and psychological health by adopting more wholesome approaches in daily life, has further heightened the Korean consumers’ attention 8

Tesco’s operations in Korea are the largest outside of the UK.

to healthy eating. As a result, retail sales of both functional foods as well as regular foods associated with health benefits (such as blueberries, pomegranates, and quinoa) continue to grow.

Outstanding growth in the Korean economy and consumer income over the years has inevitably resulted in a growth in demand for products of higher quality, offering new taste experiences.

Food import trends By nature, Korea depends heavily on imports of both raw agricultural commodities and consumer-ready products. Local supply alone is simply not capable of meeting the rising consumer demand for quality, value, and diversity. Industry sources estimate that over 70 per cent of all food and agricultural products consumed in the Korean market are either imports or locally processed products which use imported ingredients. Largescale retail stores such as hypermarkets and supermarkets have become the major retail channel for imported consumer-ready foods since they offer a favorable shopping environment where imported products can better compete against locally products. Department stores are likely to remain the leading retail channel for high-end, premium quality imported foods. However, online retailers are expected to play a bigger role

Photo: Tesco

in distributing imported consumer-ready foods in the future.

Locally grown or manufactured products present significant competition to many American products and products from other parts of the world. Though limited in volume, Korean agriculture produces a considerable variety of raw agricultural products including rice, fresh vegetables (such as cabbage, radishes, cucumbers, pumpkins, onions, potatoes, sweet potatoes, green onions, mushroom and garlic), as well as fruits (apples, pears, tangerine oranges, grapes, persimmons, watermelons, strawberries, kiwis etc.). Seasonal fluctuations in local fresh fruit supply, as well as strong consumer demand for new taste experiences, generate increased imports of fresh fruits. Fresh fruit imports from the United States totaled 384 million USD in 2014, up 2.7 per cent from the previous year.

Major American fresh fruit imports include citrus (196 million USD), grapes (32 million USD), and cherries (123 million USD). Consumption of tree nuts continues to increase as a result of highly publicized health claims, particularly in the case of almonds and walnuts. Korea relies almost entirely on imports to meet demand. Imports of tree nuts from the United States amounted to 346 million USD in 2014, up 22.9 per cent over the previous year.

Although Korea is self-sufficient in many varieties of fresh vegetables, seasonal fluctuations in local supply and unfavorable growing conditions for foreign varieties have resulted in an increased demand for imported products. China has emerged as the leading supplier of vegetables to Korea in both fresh and processed categories.

However, Korean consumers’ strong interest in quality and food safety may well generate increased opportunities for to Western traders in the future. 

Seasonal fluctuations in local fresh fruit supply generate increased imports of fresh fruits.

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Special Changing Markets ASIA FRUIT LOGISTICA 2015 ____________

Big growth for Asia’s top produce show Visitors to ASIA FRUIT LOGISTICA 2015 can look forward to a much larger show, with bookings for exhibition space already up by 25% on last year’s event. ASIA FRUIT LOGISTICA, Asia’s only dedicated fresh fruit and vegetable trade show, is once again set to smash records for exhibition space this year. With less than the two months to go before it opens its doors at AsiaWorld-Expo Center in Hong Kong, bookings for exhibition space are up 25% on last year’s event. Over 500 companies from 38 countries and all six continents are registered to showcase their products and services at the trade show on 2-4 September.

ASIA FRUIT LOGISTICA expanded by almost a third last year, and managing director of the organizing company Global Produce Events, Gérald Lamusse, said that a similar growth rate for this year’s show firmly positions the event as a leading trade hub for the international produce business. “Such standout growth underlines the huge amount of interest in the Asian markets

Over 500 companies from 38 countries and all six continents are registered to showcase their products and services.

from around the world,” said Lamusse. “It also demonstrates the value which the global fresh produce business sees in this show as a vehicle to make high-quality connections, and as a platform for growth.”

Well over 8,000 top-level buyers and trade professionals from more than 60 countries are expected to attend ASIA FRUIT LOGISTICA this year. Tickets can be purchased online at www. asiafruitlogistica.com/tickets with up to a 40% discount compared with the cost of tickets at the door. A full-access pass allows visitors to attend the Asiafruit Congress held on 1 September, as well as the three-day exhibition itself on 2-4

September. Asiafruit Congress, Asia’s premier fresh produce conference, kicks off the week of trade activities in Hong Kong, and serves as the perfect primer for ASIA FRUIT LOGISTICA. Visit www.asiafruitcongress.com for programme updates and speaker profiles.

Visitors with enquiries on ASIA FRUIT LOGISTICA can contact Claudia Bach on claudia@gp-events.com, telephone +49 30 30382373 or visit www.asiafruitlogistica.com.

For more information on Asiafruit Congress, the contact is Marija Cvetkovic, e-mail marija@fruitnet.com, telephone +44 20 7501 3707 or www.asiafruitcongress.com. 

COOL LOGISTICS ASIA _______________________________________________________________________________________________________________

Food safety, container shipping and cold chain investment under the spotlight The link between food safety and container shipping may not seem obvious at first glance. Yet with nearly 90 million people reportedly suffering from food-related illnesses in China, it is not surprising that there are some question-marks over the safety of domestically-produced foods, with many preferring imports instead and thereby opening the door to greater container trade volumes.

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homas Lau, Head of Supply Chain Management and Logistics, Metro JinJiang Cash & Carry Co. Ltd., CMA-CGM and Seaco will explore cold chain efficiency and finance at the

1st Cool Logistics Asia conference. This specialist perishables logistics and transport conference takes place in Hong Kong on 2 September 2015 alongside the annual Asia Fruit Logistica trade fair. According to Metro China, part of international wholesale giant Metro Cash & Carry, food safety has become the primary concern for more than 70% of the Chinese population, highlighting the need for greater supply chain surveillance.

Thomas Lau will explore challenges for food safety Food safety has become the primary concern for more than 70% of the Chinese population.

Photo: Metro Group

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compliance and the impact on first mile logistics in China in a keynote address. With more than 750 wholesale stores in 26 countries, Metro Cash & Carry is a leading international player in the wholesale trade, operating 80 stores in China alone. Metro's cash and carry business concept is directed towards professional customers and thus differs from other retail chains that target end consumers. “Food – especially fresh foods that require temperature control - are a major focus of Metro JinJiang Cash & Carry,” says Lau, who will use the conference to emphasize the importance of further educating suppliers to improve cold chain management and meet food hygiene standards, ensuring best possible food quality at the point of sale.

There are an estimated 300 new national standards governing permissible limit of pollutants, traces of pesticides and dairy safety in China. What is needed now is a more unified

Wed 2 September 2015 | AsiaWorld-Expo, Hong Kong | www.coollogistics.asia

In cooperation with

Designing perishable supply chains of the futurea Your ticket includes: > Welcome Reception (1 September from 18h00) > Cool Logistics Asia Conference (2 September 2015)

COOL LOGISTICS ASIA will bring together producers, exporters and the logistics sectors in emerging Asian economies to address the challenges of growth and how to meet them.

CONFIRMED SPEAKERS INCLUDE:

> ASIA FRUIT LOGISTICA (2-4 September 2015)

Sponsor

Media partners

Pawanexh Kohli, CEO and Chief Adviser, National Centre for Cold-chain Development and CrossTree Techno-Visors India

Tsunemichi Mukai, Senior Vice President, MOL Liner, Hong Kong

Hans-Willem Van der Waal, Managing Director, AgroFair, Netherlands

Jack Lo, Senior Vice Cargo Product & Marketing Manager, Cathay Pacific Airways, Hong Kong

Clement Lam, Director & General Manager, Swire Pacific Cold Storage Limited, China

Tarun Arora, Director Finance Operations, IG International, India

THE CONFERENCE PROGRAMME will feature plenary sessions and break-out sessions covering: •

Perishable supply chain demands in emerging markets

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Intra-Asia and global shipping trends

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Multimodal benchmarking

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The impact of Panama Disease on banana shipment patterns

•

Transport equipment and cargo loss prevention

www.coollogistics.asia

Special Changing Markets approach and a consolidation of existing food safety standards, according to Lau. The rapid expansion of food e-commerce, with new companies such as JD.com investing in FruitDay, an importer of fresh produce in China, is also opening up new opportunities for international shipping and logistics companies. Promoting US produce, including Boston lobster and USgrown fruit, JD.com offers same and next day standard shipping and has formed a number of partnerships with international food producers.

Possible bottlenecks in the cold chain But innovative food distribution concepts such as JD.com also serve to highlight potential bottlenecks in current cold supply chain operations. A lack of adequate cold storage and refrigerated road transport equipment are two cases in point. Could there also be a new market for reefer containers or mobile cold storage units to help bridge the gaps?

The overall outlook for reefer container shipping in Asia will be assessed at the conference by keynote speaker Lars Kastrup, SVP at CMA CGM. Kastrup's speech will address critical issues facing reefer container shipping, its customers and its supply chain partners, including service reliability, port performance, direct calls and feeder services. Over the past few years, the major shipping lines have been focused on investing in, and deploying, bigger container vessels.

Less attention, however, has been paid to investing in replenishing the ranks of ageing reefer containers, with carriers increasingly relying on leasing companies to make up the shortfall. Nigel Webster, who heads up refrigerated container operations at container lessor Seaco, will join the conference to discuss how the cold chain is being fi-

nanced, assessing global reefer container investment trends today and for the future.

Seaco, indirectly owned by Chinese listed company Bo Hai Leasing Co Ltd, significantly expanded its business last year with the acquisition of rival Cronos, and now claims the largest CEU (cost equivalent unit) share of the global leasing market.

The conference will bring together the leading players in developing and investing in new cold supply chain concepts in China, India and other emerging markets in South East Asia, including Swire Pacific, China Merchants / Americold Logistics, Pernod Ricard and shipping lines such as MOL Liner. "We are pleased to be able to bring together all the key actors who will be designing the perishable supply chains of the future for a productive dialogue on the challenges and opportunities ahead," said Alex von Stempel, Managing Director of Cool Logistics Resources Ltd. 

FRUIT LOGISTICA 2016 ______________________________________________________________________________________________________________

Take advantage of global growth opportunities at the fair in Berlin

T

he changing flow of commodities in the international fresh produce trade is more apparent than ever before. This is due to a variety of factors. Exchange rate fluctuations play an important role, along with retail market pricing, transport costs and standards for agricultural crop protection. „Europe will remain an important premium market for South African fruit. However, we are also working on developing other markets and diversifying exports,“ said South African Agricultural Minister Dr. Rob Davies in an interview.

Exports to third countries are gaining importance for EU countries as well as for overseas suppliers. According to Marco Salvi, President of the Italian industry association Fruitimprese, Italy managed to increase exports to non-EU markets over the past ten years by 220 percent.

Exports to EU countries rose by only 10 percent during this time period.

What‘s the best way to capture new target markets? Where can new contacts be made?

How can existing trade relationships be maintained? Answers to these questions can be found at FRUIT LOGISTICA, from 3-5 February 2016 at the Berlin Exhibition Grounds.

FRUIT LOGISTICA is characterised by its outstanding international scope. Key decision makers from across the globe take advantage of the three-day trade fair to build business relationships and share knowledge. In 2015, the event attracted some 65,000 trade visitors from

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In 2015, the event attracted some 65,000 trade visitors from more than 135 countries.

more than 135 countries. 2,785 exhibitors from 83 countries showcased a complete range of products and services. Commenting on the outstanding results of this year‘s trade fair, FRUIT LOGISTICA Global Brand Manager Gérald Lamusse described the event as „a comprehensive overview of the fresh produce industry, with all key decision makers, new exhibitors, and a record number of trade visitors.“

For companies interested in scheduling a visit at the trade fair, representatives are available around the world to offer assistance in local languages. The representatives can be found on the Internet: www.fruitlogistica.com/Contact/ Messe Berlin worldwide. 

Fruchthandel Magazin 2015 IFCO SYSTEMS __________________________

IFCO is now focusing on two regions for the further development of its global activities: Austria/Eastern European countries (CEE) and Asia. The picture shows a display at the retailer Eurospar.

Focus on Austria, Asia and CEECountries After a period of strong growth during the past few years, IFCO Systems – a leading provider of reusable packaging solutions – is now focusing on two regions for the further development of its global activities: Austria/Eastern European countries (CEE) and Asia.

A

ctivities in Austria/CEE are coordinated through IFCO’s Austrian office in Gmunden, situated between the cities of Salzburg and Linz. Indirectly, IFCO’s presence in Austria goes back to 1994, the foundation year of STECO Pool-Logistics, which became part of the IFCO group with the take-over in April 2008.

At present, the company has a team of 27 staff in Austria.

First steps to develop CEE markets were taken in 2003 in Slovenia, and since then IFCO has experienced steady growth in the region. Today there are seven key account managers looking after customers in Bulgaria, Croatia, the Czech

Republic, Hungary, Serbia, Slovakia, Slovenia, Poland, and Romania. The company maintains close relationships with many of the major European and local retail groups active here as well as with an increasing number of food suppliers.

What characterizes IFCO’s activities in the region is the extensive nature of the services offered, with washing depots all over Austria and CEE. Heimo Thaler, general manager of IFCO Austria, says: “Right from the beginning of our activities in the region, IFCO focused on offering cross-national, uniform services that cover all of Europe – adapting exactly to the needs of the international structure of the major European

Young vegetables need a sunny spot Aromatic fruit and vegetables from the sunny gardens of Germany – now available from Willi Sinn.

Willi Sinn Ltd, fruit wholesalers It makes sense to make Sinn your first point of call for fresh fruit and vegetables or potatoes and onions from Rhineland Palatinate.

Maxdorf headquarters Am Großmarkt 8 D-67133 Maxdorf, Germany Tel. +49 (0) 6237 9782 00 Fax +49 (0) 6237 9782 999 E-Mail info@willi-sinn.de Website www.willi-sinn.de

retail groups and their supply chains. Of course, in the beginning there were some considerable challenges to overcome, for example due to the different packaging systems existing in the individual countries. With a high level of individual customer attention and successful tests on site, our team managed to convince our partners of the advantages of our hygienic and environmentally friendly pool system.”

For the future, IFCO has ambitious plans for Austria/CEE, with a strong focus on further growth in Poland and Romania. Packaging solutions for products other than fruit and vegetables in particular will be extended with a

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13

Special Changing Markets further roll-out of the specifically designed RPCs for bread and meat – and this applies all over Europe.

New focus on China Within its global strategy, IFCO is concentrating also on Asia, mainly on China. As Chinese retailers and growers are more and more interested in standardizing their fresh supply chain and increasing food safety levels, IFCO China mainly

focuses on the domestic pooling business. When developing the IFCO logistics cycle in China, it is important to know exactly the potential customer’s fleet information to understand what a full truck load of RPCs in open and folded state means. This is due to the many different truck sizes in operation. This requires intimate customer relationships – which IFCO considers one of the major assets of the company worldwide.

Christy Zhu, responsible for IFCO’s activities in China explains: “We aim to improve

China’s fresh supply chain from end to end.

Our sturdy RPCs have a long life cycle and help to reduce food loss. Our approach is thus both environmentally friendly and customer oriented. The customers of our RPC pooling programme may rely on the availability of the crates even during the peak season.”

Asia will certainly remain a focus region for IFCO in the forthcoming years.

BLN

GERMANY/BVEO ______________________________________________________

Excellent image for products "Made in Germany" Germany’s fruit and vegetable exports are quite low compared to its imports. But there are a number of producer organisations and companies who place their products very successfully on markets outside the domestic market.

F

ruchthandel Magazin spoke to Dr. Christian ways speaks for itself. Products Weseloh of the German association of fruit “Made in Germany” enjoy an and vegetable producer organisations BVEO outstanding reputation all over on the importance of new markets for its mem- the world. We have nothing to hide in the German food secber companies.

Fruchthandel Magazin: How well situated are tor, and in particular in respect BVEO welcomes the initiative of the European Commission for the different marketing organisations in the co- of fresh fruit and vegetables, the export of apples to Mexico. operatives to benefit from the export boom on either from greenhouses or open land, that grow in climatically favourable FH-Magazin: What kind of support is offered Asian markets, for example?

Dr. Christian Weseloh: Since the Russian ban conditions. We should also emphasise our other by the German ministry of agriculture? on imports was imposed on 7 August 2014, the strengths, such as our QA quality control system, Dr. C. Weseloh: The German ministry of food topic of “exports” has received a great deal of more and more. and agriculture (BMEL) has already reacted and attention in the various media, and thus in Ger- FH-Magazin: What in your opinion can the EU we welcome the targeted expansion of export man ministries and associated institutions too. do to open up new markets for Germany too? promotion by the BMEL. A coordination office These institutions are necessary to pave the way Dr. C. Weseloh: We believe that it is very con- has been created with the Export Unit. What' for smooth export procedures in cooperation structive to remove phytosanitary barriers to is more, a new department “Plant health, and with the exporting companies. Coming back to trade in the food sector en bloc throughout phytosanitary matters during export” has been your original question, the German marketing the EU, wherever this is possible or where it set up to provide more support for the export of organisations of the different cooperatives and can be managed more efficiently than on a plants and plant products. g.b. producer organisations, national level. This could help Dubai for example in the stone open up export markets faster. fruit sector, are in a very The BVEO therefore welcomes good position to supply the initiative of the European World of Perishables 2015 from Asian markets, for exampCommission for the export of 5 to 7 October le. However, phytosanitary apples to Mexico. The Commisbarriers to trade of the most sion is negotiating on behalf of Decision-makers from around 30 coununnecessary nature do exist eight member states (Germatries are once again expected at this for certain target countries. ny, Belgium, the Netherlands, year’s World of Perishables (WOP) trade If simple risk analyses and France, Italy, Portugal, Spain fair in Dubai. The event will be held monitoring for pests is carand Poland) a dossier with a list from 5 to 7 October at the World Trade ried out, nothing stands in of relevant harmful organisms Center Dubai. The fair was attended by the way of free trade. The Dr. Christian Weseloh and a working plan for moni4,436 trade visitors from 80 countries in economies of both countoring and controls. Based on 2014. According to the organisers, martries are ready. It is now up to the authorities. its experience up to now, the European Comkets in the Middle East are amongst the FH-Magazin: German food has a very good mission is also endeavouring to break into the fastest-growing markets of the future in image overseas. Could this help to open the doors Canadian market. Access to the market in the global fruit business. for German fruit and vegetables even further?

USA will depend on the further course of TTIP Dr. C. Weseloh: The quality of a product al- negotiations.

14

Fruchthandel Magazin 2015 Shortly after landing fresh products are transferred directly into temperature controlled storage.

PERISHABLE CENTER FRANKFURT _________________________________________________________________ ________________________

Handling temperature sensitive products 24/7 The Perishable Center GmbH & Co. Betriebs KG at Frankfurt Airport handles temperature sensitive products 24 hours a day, 365 days a year. Each year it processes some 120,000 t of air freight, working in close cooperation with airlines, shippers and customs clearance services.

P

roducts which are processed quickly and professionally at ambient temperatures of between -24°C and +24°C include high quality fruit and vegetables, fish, meat, flowers and exotic plants as well as sensitive pharmaceutical products. In order to cool products quickly and safely to the optimum temperature for onward transportation, the Perishable Center Frankfurt (PCF) uses state of the art technology for the best possible temperature management.

To guarantee this, a new Fastcooling system is used which means products can be cooled to the required temperature in only 20% of the time usually necessary.

The advantages of the Fastcooling system include: ● Significant reduction of the time needed to reach the required transport temperature ● Fastcooling equipment can be easily and flexibly installed in existing cool chambers ● The Fastcooling system can handle up to 24 pallets at the same time An uninterrupted coolchain coupled with minimum transport times always guarantees the best

The new Fastcooling system reduces the time needed to reach the required transport temperature.

possible product quality. With the implementation of new technology, PCF makes an important contribution to creating a more efficient supply chain for its customers.

From arrival, through customs clearance and sorting to the loading and onward transport of sensitive products such as physalis, papayas and

...hier wächst der Ge

YOUR

nuss

FOR THE T S I L A I C E P S RKETS A M N A E P O R U RN E EASTER

peppers, PCF guarantees the provision of cold storage appropriate to the specific needs of the individual product. Careful handling of fresh high quality produce is based on the following procedures and features: ● Shortly after landing, fresh products arrive in the Perishable Center and are transferred directly into temperature controlled storage ● The products are checked for correct temperature, damage, and the completeness of the delivery ● EU border control by plant protection authorities, BLE and the official Hesse state laboratory ● Inventory management with separate cold storage for fruit and vegetables ● Special loading facilities for vans and smaller commercial vehicles ● Conveyor belt to aid loading for the Road Feeder Service ● 13 truck ramps in the 10°C temperature zone with two movable ramps Further information on PCF can be found at www.pcf-frankfurt.de. 

• WEISSKOHL • White Cabbage • ROTKOHL • Red Cabbage • KARTOFFELN • Potatoes • UND MEHR...

• and more...

GODELAND Vermarktungsgesellschaft mbH ∙ Kirchenstraße 13 ∙ DE-25709 Kronprinzenkoog Tel: +49 (0)4851-95 80-0 ∙ Fax: +49 (0)4851-95 ∙ www.godeland.de ∙ info@godeland.de GODELAND Vermarktungsgesellschaft HE 126 · DE-25348 Glückstadt · info@godeland.de · www.godeland.de mbH · k80-20 Lager/Stock: Kirchenstraße +49 (0) 80-0+49 · Fax: +49 (0) Filiale/Branch: Banksstraße13 28·∙ DE-25709 DE-20097 Kronprinzenkoog Hamburg ∙ Tel: +49· Tel: (0)40-32 554851-95 54-0 ∙ Fax: (0)40-32 554851-95 54-30 80-22

15

Special Changing Markets EUROFINS GLOBAL CONTROL _______________________________________________________________________________________________________

Global network provides a one-stop concept The business concept of Eurofins Global Control is unlike any typical analytical laboratory. Since the group includes many individual laboratories with specific competences all over the world, Eurofins bundles them together in an international context and offers its customers product analysis as well as inspection and sampling in the country of origin before shipping.

E

urofins is active in all five continents and offers services to all food groups, among which fruit and vegetables as well as dried fruit and nuts play an important role. The group offers one of the most comprehensive ranges of analytical methods for food & feed analysis available in the world. Its global network includes 200 state-ofThies Claussen the-art laboratories and Competence Centers in 38 countries, and its services range from laboratory analysis to inspections in the field, auditing and sampling.

“Sampling is really important for the customer as any sample sent to a laboratory represents a big consignment. An analytical report alone often builds the basis for commercial decisions for importer and trader – that’s why we focus so much on representative sampling.” explains Thies Claussen, expert for the fruit and vegetable sector at Eurofins in Hamburg. The group also handles the transport of samples to the appropriate laboratories. After the analysis is completed, laboratory and inspection reports are summarized and reported back to the customer. In an interview with Fruchthandel Magazin, Thies Claussen outlined this one-stop shop concept

and talked about the current situation in global ries based in Europe. We can therefore use our overseas laboratories as back up only. We also markets.

Fruchthandel Magazin: You provide your custo- work with inspection partners to have people mer with a special service by involving your food on site who draw samples in the plantation and chemists in the coordination of activities abroad. What does this mean precisely for your customer from the retail or fruit trades?

Thies Claussen: This might best be demonstrated by a project we are currently actively stewarding for organic bananas out of Latin America. The cornerstone of this project is the preparation of all relevant details together with our customer in order to reflect their needs. In addition to simple sampling, we implement our auditing service and audit the supplier according to a specially developed questionnaire. This Eurofins is active in all five continents and offers services for questionnaire is prepared well in all food groups, among which fruit and vegetables as well as advance jointly with the custo- dried fruit and nuts play an important role.

Photo: Eurofins mer, and our food chemists provide input on which aspects should be covered as in the warehouses. In general it can be said that well. Here we can use the current observations countries such as China or India are often reporand findings of our laboratories, reflecting new ted as supplying countries with more frequent problems. However, in those countries one can issues which may occur with certain products.

FH-Magazin: Which countries and which pro- also find very good, reliable suppliers – it is all a question of close monitoring and good supplierducts presented analytical problems recently?

T. Claussen: Eurofins has laboratories in Latin customer relations rather than blaming specific America and Asia. Nevertheless, European re- countries. As far as the products are concerned, tailers require analytical reports from laborato- it is always a matter of taking a close look at mo-

Eurofins Global Control Worldwide excellence in food analysis

Global food sampling services • Consulting by experts • Residue analysis • Authenticity & and many more

global@eurofins.de www.eurofins.de

Fruchthandel Magazin 2015 re risky products – such as niche products, new products which are gaining in importance, and of course especially organic produce.

FH-Magazin: The German retail sector has established their own standards with individual parameters and tolerance levels. What challenges does this pose for growers in countries like India, Pakistan or Latin America?

T. Claussen: Growers need to know right from the start where their final target market is. Eurofins Global Control can support them by providing guidance and control before shipping, whether the product is in compliance with the specific standards of the different retailers.

FH-Magazin: How is data management dealt with? How do you inform you customer regarding inspections and samplings? Do you have a common database?

T. Claussen: We only spring into action once our customer has given us a final confirmation. After the inspection on the field, a monitoring report is sent to the customer. Once the analysis of the sample has been completed in our laboratories, our food chemists notify the customer about the results as well. Of course both reports can also be combined.

As far as electronic data transfer is concerned, we can say that, due to the volume of individual data, any electronic database or B2B data interface is of great help to the customer. Eurofins therefore provides such tools to its customers to make ordering and reporting easier, quicker and ultimately more effective. The tool we use is called EOL, which stands for Eurofins On Line, and we are available to provide more information on this. Eurofins also participates and supports industry databases and on request from our customers we transfer our results to them.

FH-Magazin: Trust is good – control is better.

What other control tools and services do you offer?

T. Claussen: In addition to sampling in the country of origin, we also offer complete preshipment-inspections which can be combined with sealing of inspected consignments in order to ensure that only the inspected cargo is really shipped to the importer. On top of that, our service portfolio includes complete audit services.

Audits can be carried out according to checklists, or in the event that customers ask us to audit their suppliers, according to international standards. We also offer pre-audits in preparation for the supplier becoming certified.

FH-Magazin: Changes within the global flow of trade are increasingly being discussed within the fruit industry. Some importers fear that in future fewer premium quality products will be reaching Europe. What do you think about this scenario?

T. Claussen: We do indeed see an increasing demand in growing economies such as China and India where the financial potential of the middle class is rising. There is also a similar development

in certain countries in West Africa. Many overseas producers now consider those countries as alternative target markets. But one has to bear in mind, exporting there is not as easy as it seems.

First of all logistics in those countries are not fully developed. Secondly, financial transactions are not always easy. Thirdly, the growing middle classes are developing quality expectations which exceed current standards.

To give you an example from another food industry: In China, consumers are fed up with nationally produced dairy products, simply because there are too many occurrences of contaminations (e.g. melamine) and they want

imported products from overseas instead. However the regulations in China are very high and strictly monitored – something which the dairy industry in New Zealand is currently experiencing.

The bottom line is that there are still enough demand in Europe and imported produce will find its customers here. Provided, that is, that quality parameters continue to meet the expectation of European consumers – something one has to ensure right from the beginning of the production. And Eurofins Global Control is available to provide support with its full range of services. g.b./ric

TURKEY _______________________________________________________________________________

New export chances due to Russian embargo Due to the climatic conditions, its geographical position and the well established irrigation possibilities, Turkey is one of the leading fruit producers worldwide. Turkey’s share of worldwide fruit production is estimated at about 2%.

G

rapes are by far the most important fruit variety in terms of volume and have a share of approximately 30% of total fruit production in Turkey. Production of grapes reaches 4.1 million t and represents 6% of total global grape production. Turkey holds sixth place in the list of the biggest grape producing countries worldwide after China, USA, Italy, France and Spain. Apples, oranges, tangerines, clementines and apricots are also grown in Turkey in large quantities and Turkey has a degree of self-sufficiency of more than 100% for almost all kinds of fruit produced.

Marketing The marketing of fruit takes place predominantly without contractual agreements, though contractual production is common for industrial processing in some regions. Thus between 50 and 80% of sales of fruit for processing are secured by contracts. Beside these contractual agreements there are a number of other marketing channels. A central function in marketing is held by the so-called covered markets which can unite several commercial steps under the same roof and cause relatively low transaction costs. Direct selling from producers to consumers, as well as the contractual production for large retail organisations also belong to the commonest marketing channels. Independent traders at weekly markets (Pazarci) also represent a well-known and much

Grapes are by far the most important fruit variety representing 30% of total fruit production in Turkey.

used method of marketing. Because of the perishable nature of fresh fruit and an unfavourable infrastructure, distinguished by relatively few highways and an inadequately developed cool chain, fruit loss during transportation as a rule amounts to as much as 15%.

Retail trade The share of the market held by modern food retail formats in Turkey is estimated at 30 to 40%.

In Europe by comparison this share amounts to as much as 80 to 90%. The food retail trade in Turkey is thus largely fragmented. The top 5 players (BIM, Migros, SOK Market, Metro Group and A101) possess a market share of only 10%.

Discounter BIM easily leads the ranking list with turnover of 4.4 billion EUR in 2013. Food retail trade organisations can be divided into three strategic groups: International operators such as Migros, Metro Group, Carrefour and Tesco; 17

Special Changing Markets national operators such as BIM and SOK Market; regional operators auch as the Hatipoglu Group.

Strong economic growth in past years coupled with the rising prosperity of the Turkish population have had an impact on the increase of purchasing power and changing consumer behaviour. According to some market research studies, Turkish consumers spend on average more than 20% of their budgets on food and drink. In addition, consumer preferences are moving towards high-quality and healthy products.

The Turkish consumer market with more than 70 million potential customers thus offers good development perspectives for food retail sales in the medium and long term. Primarily cities such as Istanbul, Ankara, Izmir, Bursa and Antalya, as well as other larger towns, are certainly open to products from abroad.

Foreign trade Exports of fruit and vegetables play a significant role in Turkey’s foreign trade and account for as much as 52% of total export value. Turkey produces approximately 45 million t of fruit and vegetables annually and exports some 3 million t with a value of some 2.5 billion USD, approximately 7% of total production. Turkey exports a large share of its fresh fruit and vegetables to Russia. With a value of 789 million USD, this represents approximately 36% of Turkey’s total fruit and vegetable exports. A further quarter of fruit exports go to the EU. The most important products in terms of fruit exports to the EU are apples, pears, quinces, dates, pineapples, avocados, guava, mangos and grapes. Apart from

Europe and Russia, other important export destinations for fresh fruit and vegetables from Turkey include the Middle East (especially Iraq and Saudi Arabia), the Ukraine and the Central Asian states of Kazakhstan, Uzbekistan, Kirgisistan, Turkmenistan and Azerbaijan.

According to forecasts. Turkish production of fruit and vegetables will reach 48 million t in

2015. The Russian fruit and vegetable embargo against the USA, the EU, Norway, Canada and Australia, has since August 2014 opened up new export chances for the Turkish fruit and vegetable sector. Demand for Turkish products in Russia has risen considerably. Until 2023 Turkey aims to increase its total fruit and vegetables exports to as much as 10 billion USD. Vera Belaya

TURKEY _____________________________________________________________________________________________________________________________

Target Eurasia’s food industry at WorldFood Istanbul 2015

W

orldFood Istanbul, the most established international food and beverage exhibition in Turkey, and the event to target Eurasia’s food and drink buyers, will return on 3 – 6 September 2015 in Istanbul, Turkey. Since 1993, WorldFood Istanbul has been reflecting the trends of the industry, initiating international cooperation and bringing the latest food and beverage products to the Turkish marketplace.

Over 76 million people reside in Turkey, one of the largest markets in the region. The country’s young population is emulating western patterns of consumption and average GDP per capita in 2014 equalled USD 11,275 – a substantial consumer market for foreign investment.

Held over four days, the WorldFood Istanbul exhibition connects over 370 food and beverage suppliers from across the world. These suppliers will meet with approximately 15,000 of Turkey’s

18

In 2014, 75 per cent of the visitors were directly involved in purchasing decisions.

key industry buyers. Buyers include food retailers, manufacturers, wholesalers, retail chains, caterers and restaurateurs. In 2014, 75 per cent of visitors were directly involved in purchasing decisions. In its 23rd edition, the event will be split into eight specialised sectors. These include confectionery

and nuts; milk and dairy; meat and poultry; seafood; frozen food; grocery and oil; beverage and ingredients.

In the last edition of WorldFood Istanbul, 24 per cent of exhibitors represented international brands from 37 countries. Previous exhibitors included the German and Austrian companies TSC Food Products, ROX, Ehrmann and many more.

The event is officially endorsed by and has partnerships with the most influential government bodies, trade association and institutes, including KOSGEB and the Federation of Food and Drink Industry Associations of Turkey. WorldFood Istanbul is organised by ITE Group Plc, one of the world’s leading organisers of trade exhibitions and conferences. The group annually organizes international food and drink exhibitions in eight countries.

For more information please visit www.worldfood-istanbul.com. 

Fruchthandel Magazin 2015 THE NETHERLANDS ___________________________________________________________________

Sights firmly set on new sales markets The Dutch fruit and vegetable sector has been increasingly diversifying its portfolio of sales markets for many years. And since the Russian trade embargo came into effect, it has become clear that this was the right tactical decision. There has thus been a big shift in focus in Dutch trading towards China, India, Latin America and Africa, alongside the Netherlands’ traditional European markets.

J

ust how important the Russian market is for the Dutch fruit and vegetable sector can be seen from the KPI for years 2013 and 2014.

Whereas the Netherlands supplied Russia with fruit and vegetables to the tune of 600 million EUR in 2013 the value had fallen to only 495 million EUR for the year after the Russian trade embargo had come into effect in August 2014.

The most important export products to Russia in 2014, most of which are sent in the second quarter of the year, were onions, tomatoes, white cabbage, capsicum and pears. Total exports were around 270,000 t, or approximately 8% of total Dutch exports of fruit and vegetables. “It is still too early to forecast the consequences of the ban on imports for 2015,” says Gert Mulder, director of the trade organisation GroentenFruit Huis after Russia announced an extension of the embargo by a further year.

Even if the value of fruit and vegetable exports experienced a positive development for the Netherlands in the first half of the year, these have by no means compensated for the losses suffered on account of the collapse of the Russian market. The good result for the first months of the year may be deceptive since Dutch greenhouse products in particular profited from lower production levels due to cool temperatures and thus better prices on the market. However, in terms of quantities, exports of Dutch fruit and vegetables have dropped significantly in the first six months of 2015, particularly for cucumbers (down 20%) and tomatoes (down 10 to 15%).

The targets for the industry are thus obvious for Gert Mulder: “Apart from a search for new sales markets, we have to sit down with the government in The Hague and think about how we can increase the consumption of fruit and vegetables in our own country, and not only to help the fruit and vegetable sector. Higher consumption is also extremely important in the sense of a healthier diet for the whole of society,” he said.

According to Wilco van den Berg, market analyst at GroentenFruit Huis, Italy and the UK imported larger quantities of Dutch fruit and vegetables in the first half of 2015 within Europe. But the industry has to turn its attention to other sales regions too if it wants to become more independent of the Russian market. It would seem that the Netherlands are on the right path in this respect. One important milestone, according to Van den Berg, was the delivery agreement for Dutch pears to China that only really came into effect in 2014. The agreement had been preceded by five years of tough negotiations. Despite the initially small delivery quantities there is a genuine hope that China could develop into one of the

signed after the European summer harvest. If the agreement comes into force it would be worth at least 15 million EUR according to the ministry.

One of the main reasons for the opening up of India, similar to the situation in China, is the growing demand for high-quality and safe foods as a result of the growth in the middle classes and increasing urbanisation of society.

Exports to the Gulf region booming Outside Europe, it is mainly Brazil, some southeast Asian markets and various countries in the Gulf region that have been the main motors behind growth in Dutch trade in 2015. According to Wilco van den Berg, these markets mainly import large quantities of Dutch onions. More than 100,000 t of onions were exported to Brazil alone between January and the middle of June,

In the first months of the year Dutch greenhouse products profited from lower production levels due to cool temperatures.

five most important markets for sales of Dutch pears in the coming years.

Brazil has also opened its borders to pears from the Netherlands this year; the first deliveries being expected at the beginning of September to coincide with the start of the new marketing season. There are also good chances for a pip fruit agreement with India. The Dutch minister of agriculture, Sharon Dijksma, recently signed a corresponding agreement with the Indian minster Singh during a joint business trip with prime minister Mark Rutte. According to the Ministry of Economics in The Hague, India will initially perform further checks and audits in the near future before a trade agreement can finally be

SPECIALIZED SPECIALIZED IMPORTERS/EXPORTERS IMPORTERS/EXPORTERS Apples Apples and and Pears Pears

Certifications: Certifications: HACCP, HACCP, BRC, BRC, IFS, IFS, SKAL, SKAL, RIK RIK

corresponding to roughly 10% of the total harvest. “Nobody expected Brazil to buy so many onions, but the country now lies in second place behind Senegal,” says Van den Berg. Supply agreements with Panama and Indonesia have also had a positive effect on trade. And the industry is also happy with developments in the Middle East. Sales of fruit and vegetables in the Gulf states have risen significantly over the past years and there has been a particularly strong growth this year. “In the first five months, the Netherlands exported 37% more fruit and vegetables to this region. But this is still a relatively small share of total exports,” concludes Wilco van den Berg. m.s.

C.G. Timmermans & Zn B.V.

Veensesteeg Postbus 44 Veensesteeg 15 15 •• Postbus 44 (Netherlands) NL-4264 NL-4264 ZG ZG Veen Veen (Netherlands) Tel.: Tel.: +31-416-69 +31-416-69 12 12 32 32 Fax: Fax: +31-416-69 +31-416-69 32 32 35 35 E-Mail: E-Mail: info@timfruit.nl info@timfruit.nl

www.timfruit.nl www.timfruit.nl www.conference-birnen.nl www.conference-birnen.nl www.conference-pears.com www.conference-pears.com

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Special Changing Markets SPAIN/FRUIT ATTRACTION __________________________________________________________________________________________________________

Significant European participation expected Fruit Attraction will take place from 28th to 30th October this year at Feria de Madrid. Three months before the event, the organizer confirms excellent prospects for the show with gross exhibition area of more than 30,000 m² in halls 7, 8, 9 and 10 confirmed to date. This constitutes an increase of 11 per cent compared to 2014.

The Fiera in Madrid, venue of the Fruit Attraction 2015. Around 1,000 exhibitors are expected at the event. Photos: Schmidt

E

uropean production regions, such as France, Italy, Germany, the Netherlands, Portugal, the UK, Poland and other countries, will have a significant participation in this international trade fair for the fruit and vegetable industry, co-organized by IFEMA and Fepex. Furthermore, the exhibition is forecast by the organisers to grow to 1,000 exhibitors and 50,000 visitors this year. Fruit Attraction is thus a good trade and business platform, offering visitors the opportunity to get to know a wide range of cutting-edge products and the most innovative systems in the industry.

Spanish exports of fruits and vegetables Spanish exports of fresh fruit and vegetables in the first quarter of 2015 have grown 7.5 per cent and 9.9 per cent in terms of value, compared to the same period in 2014. This represents a total of 3,745,274 t and a value of 3,487 million EUR, with vegetables accounting for 52 per cent and fruit 48 per cent in value. This information is based on data from the Ministry of Economy and Competition processed by FEPEX. Germany, France and the United Kingdom are still the leading markets for Spanish fruit and vegetables with a positive trend in performance.

Shipments grew in value by 8 per cent, 18 per cent and 14 per cent respectively, reaching 851 million EUR, 598 million EUR and 489 million EUR. The EU represented 93.7 per cent of total exports, value 3,269 million EUR. Its importance 20

in Spanish exports continues to increase, with 12 per cent growth in the first quarter of 2014. In contrast, exports to non-EU countries decreased by 17 per cent totaling 218.2 million t.

Inclusion of novelties in the fair For the purpose of enriching the participation of both exhibitors and visitors, Fruit Attraction includes new areas this year: The Organic Hub is a special area for the entire fresh organic product sector; Distribution and Logistics is where the best suppliers of products aimed at maintaining the best quality for the new international markets can be found; and Tech4Fruit is a space for companies offering technological solutions and innovations aimed at increasing fruit and vegetable productivity.

Programme of seminars and other activities Fruit Attraction will offer a wide programme of technical seminars and parallel activities this year to complement activity on the exhibition floor.

These include specific sector events that will attract representatives from areas such as research, production and international distribution.

Stone Fruit Attraction will be held on 29 October with the aim of adding value to the production of Spanish stonefruit and offering some important messages on product diversity and variety, allowing Spain to be the only country in the northern hemisphere which can supply for

stonefruit for six months of the year from April to November to all international markets.

Fruit Attraction will also be the venue for the 1st Persimmon Congress, Kaki Attraction, aimed at the producers and traders in this specialized fruit. The event will be held on 28 October in the afternoon.

The fair will also strengthen its offer of organic fruit and vegetable with an area specifically dedicated to this type of production. It is called “The Organic Hub” and will be accompanied by a parallel seminar on Wednesday 28 October in the afternoon under the title “Markets and marketing of organic fruit and vegetables in Europe”, promoted by F&H. Other seminars worthy of mention include Fruit Retail, to be be held on Thursday 29 October in the afternoon –organized by Alimarket, as well as the 2nd Forum for food and agriculture journalists, which will focus on an analysis of the production and marketing of European fruits and vegetables.

FruitFusion will once again be organized to promote the consumption of fruits and vegetables during the three days of the event, with attractive cooking demonstrations by some of the best chefs in the country. The seventh edition of Fruit Attraction will also again include the PasarelaInnova, an area where new varieties of fruit and vegetables will be on show, and the ForoInnova, aimed at complementing this area and offering the possibility of making presentations on the latest innovations in the industry.

IFEMA

28.-30.

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IFEMA Feria de Madrid International calls: (34) 91 722 30 00 fruitattraction@ifema.es

MITVERANSTALTER

Fruchthandel Magazin 2015

P.O.S… I love you Top brands in the international fresh produce sector

Emotion before price promotion Effective brand marketing is about adding emotional value to your products, creating familiarity and trust.

Leading Brands is the acknowledged reference work for the most important brands in the international fresh produce business. It is the ideal medium to present your brand to the trade in general and to key retail buyers in particular.

So far more than 170 companies have presented their brands through its pages.

For further details and to see a copy of the online edition visit www.fruchthandel. de/magazin/leading-brands Prices for your brand profile 1 page profile in colour: 1,950 € 2 page profile in colour: 2,950 € Prices include logos, pictures and text in English or German. Prices include design based on a uniform layout.

Circulation 10,000 copies (sent to subscribers of Fruchthandel Magazine, to a special mailing list of retail buyers, plus additional circulation at exhibitions and congresses) Dates for 2016 edition Publication date: 13 November 2015 Profile deadline: 13 October 2015 Contact Tel +49-(0)211-99104-40 anzeigen@fruchthandel.de

23

LB_Anzeige_2015_RZ.indd 2

03.08.15 12:04

Special Changing Markets BELGIUM _______________________________________________

Shifting trade from Eastern Europe to Far and Middle East

Peppers are being exported chiefly to the Middle East as well as to Canada.

W

hile Eastern Europe has been at the center of attention for most Belgian exporters over the past few years, the Middle and Far East as well as North America are becoming more and more interesting as alternative markets.

One main focus for export promotion lies in trade fairs such as FRUIT LOGISTICA and ASIA FRUIT LOGISTICA, WOP in Dubai, CPMA in Canada and PMA in the USA, as well as World Food Moscow. Trade organizations such as the importers/exporters association Fresh Trade Belgium are also involved when it comes to dealing with the opening up of difficult markets and restrictive export regulations. The whole Belgian fruit and vegetable sector had been very active even before the Russian embargo but has intensified its efforts ever more ever since.

Asia is a target market mainly for robust produce such as pipfruit and leeks. Top of the list are pears, followed by apples. But cherries, endives, celery and potatoes are also shipped to these distant markets, though volumes on the whole are still limited. According to VLAM, 1,855 t of pears and 1,435 t of apples were shipped to the Far East in the calendar year 2014. For vegetables, volumes amounted to 230 t of endives, 153 t of carrots and root vegetables, as well as 63 t of celery and 31 t of cabbage. Even 3 t of asparagus and 10 t of onions found their way to Asian markets. Buyers are mainly China and Japan but also India, the Philippines, South Korea, Thailand, Singapore and Vietnam.

Growing export of pears to China One of the most active companies involved with overseas exports is the Belgian Fruitveiling (BFV), which presents itself to international customers as Belgian Fruit Valley. “You cannot possibly explain to customers in China or South America what the word Veiling stands for,” explained commercial director Marc Evrard in an interview with Fruchthandel Magazine. The BFV was a pi22

Belgian exporters and producer organizations have been looking to new markets overseas for the past couple of years without losing focus on their established customers. In order to facilitate the development of other markets beyond the borders of the EU, the agricultural marketing organization VLAM has established its own export department. The exporters/importers association Fresh Trade Belgium has also done its share to support its members.

oneer in sending Conférence pears to China and, according to Evrard, volumes are increasing year on year. “We have been tripling shipments to the Far East. This past season we exported a total of 8,000 t of pears to Asia of which 5,000 t went to China.” Since 2009 the company has also exported apples to India. With the new apple variety Joly Red, the Belgian fruit auction has an ideal variety for the taste of Asian customers. The inspiration for the development of overseas markets came originally from the increasing production in Europe and the fear to be too dependent on a limited number of markets. “What happened last year with Russia was bound to happen. Our efforts over the past few years have paid off now,” Evrard claims.

Fast growing consumer markets The Veiling Hoogstraten started to target the Middle East four years ago – mainly the UAE and Quatar. “As there was previously no activity of Belgian export companies in this region, we began by exporting directly to these countries,” says marketing manager Jan Engelen. “For us it was a test case to learn about and experience direct sales to third countries. We certainly believe in the potential of the Middle East. It’s a fast growing consumer market with an eye for quality products, a mix of different nationalities and with practically no local production. At the same time it’s a growing tourist attraction.” Veiling Hoogstraten exports all of its major products including strawberries, tomatoes and peppers to the region, even if currently the volumes are still small. “We are focusing on catering and food service, not so much on retail.” Exports are growing, and this year the auction in the north of Flanders has appointed a new member of staff to follow up on the daily communication with clients and sales to the Middle East. “We are striving to expand the business and to explore more countries in this region such as Saudi Arabia, Oman, Kuwait and others.”

The Veiling REO in Roeselare has been shipping mainly leeks to Japan for the past couple of years. “Japan doesn’t have their own production of leeks so they need to import it. During the summer months, Japan buys leeks from New Zealand, and in the winter Belgium provides an important share,” says Tom Premereur, market manager at REO. Another popular product for the Far East is friesee fine. “Our growers have lots of experience with this delicate product and know how to prepare it in a way that tolerates the long transport times and arrives in good quality on the markets.” Another of the products that REO is actively promoting for export to third countries is celeriac. “We are doing a lot of testing with celeriac in foil. It usually has a storage life of about ten days when it has been washed, but by

The BFV ships more and more pears to China each year. The demand for Conférence is growing. The picture shows a promotion flyer from a Chinese retailer.

P.O.S‌ I love you Top brands in the international fresh produce sector

Emotion before price promotion Effective brand marketing is about adding emotional value to your products, creating familiarity and trust.

Leading Brands is the acknowledged reference work for the most important brands in the international fresh produce business. It is the ideal medium to present your brand to the trade in general and to key retail buyers in particular.

So far more than 170 companies have presented their brands through its pages.

For further details and to see a copy of the online edition visit www.fruchthandel. de/magazin/leading-brands Prices for your brand profile 1 page profile in colour: 1,950 â‚Ź 2 page profile in colour: 2,950 â‚Ź Prices include logos, pictures and text in English or German. Prices include design based on a uniform layout.

Circulation 10,000 copies (sent to subscribers of Fruchthandel Magazine, to a special mailing list of retail buyers, plus additional circulation at exhibitions and congresses) Dates for 2016 edition Publication date: 13 November 2015 Profile deadline: 13 October 2015 Contact Tel +49-(0)211-99104-40 anzeigen@fruchthandel.de

Special Changing Markets wrapping it in foil we aim to extend quality for up to six weeks. The tests are supported by Belgian scientific institutes. Many third countries are today interested in celeriac and the product has great potential for export since it is not widely known there and the taste and smell are new and attractive to customers.� The main objective for the Roeselare auction is to work with exporters, so no direct shipping is being carried out at the moment.

For exports abroad, the Veiling BelOrta also works with export companies all over the world.

Many products in the wide range they have on offer have proven to be interesting to third countries. Belgian endives are among the most popular products, being shipped to North America and Japan as well as to other countries in the Far East.

Leeks, corn salad, Brussel sprouts and even rhubarb are also being shipped to the US. Canada is another interesting market that imports Belgian peppers, aubergines, runner beans, lettuce and ConfĂŠrence pears. Besides Belgian endives, Japan also buys celeriac, leeks and salsify and the Middle East markets are most interested in specialty to-

Endives from Belgium have been exported to the Far East for many years.

matoes, peppers, courgettes, aubergines, lettuce and soft fruit as well as pipfruit. India mainly imports apples and pears from Belgium. But opportunities are not only found in third countries overseas. Norway is a non-EU market which is currently importing strawberries, tomatoes, leeks and

pears from Belgium. The Russian import ban did not see the start of exports to these new overseas markets, but it is safe to say that it was responsible for the acceleration of efforts into developing new markets abroad. The Belgian fruit and vegetable sector certainly has a head start. ric

CZECH REPUBLIC ______________________________________________________________________

3% in sales value last year, a larger increase than hypermarkets.

Stronger emphasis on product quality As a result of the improved economic situation in the Czech Republic in 2014, food retailers registered a 2% growth in value sales last year. The main trends include a stronger emphasis on the quality of products, a focus on a satisfactory range of domestic or regional products, as well as shopping in smaller outlets located closer to residential areas.

E

ven though most Czech consumers still remain price-sensitive, there is a growing number willing to pay a higher price for a higher quality. Food retailers in the Czech Republic enjoyed a 2% growth rate in value sales in 2014 due to the improved economic situation.

The number of retail outlets however stagnated in 2014. Hypermarkets remain the biggest retail channel, accounting for 38% of market value.

In 2014 five hypermarket retailers operated 307

outlets with total selling space reaching more than 1,400 m2. However, their sales increased only by 1% in 2014. Discounters are gaining popularity with sales increasing by 6% last year.

Consumers seem to prefer outlets with smaller sales areas (for reasons of time saving), higher quality (especially for fresh products) and good prices. The top two discounters are Penny Market and Lidl, both owned by German companies.

Convenience stores very popular Convenience stores achieved growth of 3% in sales value in 2014, benefitting from increasing interest in shopping in smaller outlets located near to residential areas or workplaces. Supermarkets enjoyed the same level of growth of

A growing number of consumers is willing to pay higher prices for a better quality.

24

Internet retailing becoming more popular Internet sales of grocery products were introduced by Tesco in 2012 and quickly gained popularity among Czech consumers.

Although a Tesco e-shop was first established in Prague, the concept became popular across the whole country very quickly and the company soon started to expand to other regions. As dynamic growth in internet retailing is one of the more notable trends in current retailing trends, other leading retailers are expected to follow Tesco and establish online shops in the near future.

This intention has already been declared by Ahold Czech Republic, Kaufland and Billa.

While modern food retailers are dominant in terms of retail sales value and sales area, traditional food retailers dominated in terms of the number of outlets in 2014. Modern format food retailers accounted for an 81% share of overall sales, 76% of total sales area and 27% of the number of outlets. Traditional food retailers accounted for the rest.

This large discrepancy is caused by the fact that modern food retailers operate a relatively small number of outlets, but with much large sales area generating higher sales value.

Modern food retailers have thus continued to expand in the Czech Republic in 2014 with a 3% increase in sales value and 2% growth in the number of outlets.

Fruchthandel Magazin 2015 Traditional food retailers witnessed stagnation in sales and a 1% decline in the number of outlets.

Multinational retailers Modern retailers attract consumers by means of promotions and discount flyers. A relatively high number of strong multinational retailers are present on the Czech market. The top seven players, Kaufland, Ahold Czech Republic, Tesco Stores CR, Penny Market, Lidl, Billa and Globus, all dominated the sales of food retailers. They accounted for combined market share of 65% in terms of value in 2014, with Kaufland leading the field with 15%. In the 1990s many foreign retail chains entered the Czech market. Since then there has been a trend toward consolidation and some retailers have even left the country again. Victims include the Belgian chain Delhaize with Delvita chain, Austrian retailer Julius Meinl, the French retailer Carrefour, and last year it was Spar, an Austrian chain which had been operating Interspar hypermarkets and Spar supermarkets. Interspar was sold to Dutch retailer Ahold last year. In March 2015 the press announced that Tesco is considering leaving Central Europe due to its financial problems

in the UK. Last year Tesco experienced weaker performance, while Ahold recorded a moderate increase in sales value through the acquisition of the Interspar and Spar chains. As a result of this acquisition, Ahold is expected to strengthen its position in Czech food retailing significantly in 2015.

Purchasing of fresh produce Food retailers have their own purchasing sections and buy products either through their headquarters or Czech importers. However, after the EU accession and free trade within the new EU 28, retail chains seek suppliers of cheaper and better quality products from anywhere in the enlarged EU. The Makro cash and carry chain, which operates in both retail and foodservice markets, has its purchasing headquarters outside of the Czech Republic – most carried food products are negotiated in the Makro/Metro Trading Office in the Netherlands. Purchase of fresh produce is done through their Valencia Trading Office. Tesco buys many products through their headquarters in the U.K. Lidl and Penny buy products through their German offices. All these chains also purchase products from local suppliers or Czech importers.

Source: USDA

Tesco is still one of the top seven players in the Czech Republic but experienced a weaker performance in 2014.

Visit us in Berlin at Fruit Logistica 2016

25

Special Changing Markets HUNGARY ___________________________________________________________________________________________________________________________

Russian trade embargo hits the domestic market The fruit and vegetable export sector in Hungary has not suffered greatly from the Russian trade embargo because the market there only accounts for a share of 3 to 4% of all Hungarian exports. However the embargo is having negative consequences for the domestic market, with the retail food sector being offered more imported goods than before.

I

n this connection, Ferenc Ledó, president of the fruit and vegetable industry organisation Fruitveb, quotes root vegetables and onion plants as an example, more of which have recently been imported from Austria and Poland. Polish apples are another case, though less of these have entered the country than had been expected.

The Russian embargo has certainly done most damage to Hungarian sweetcorn producers, who encountered difficulties selling their product on saturated western European markets after the Russian market collapsed.

László Cseh, president of the Hungarian association of the refrigerating and canning industry, is expecting a Ferenc Ledó drop in the area under sweetcorn cultivation of currently 25,000 ha.

Within the scope of the second EU compensation programme, only 4,295 t of fruit and vegetables were taken into account for Hungarian producers. This corresponds to little more than 1% of total production of 403,085 t. According to Ferenc Ledó, the majority of Hungarian exporters were able to compensate this loss through increased sales on other traditional export markets. This was the case with water melons, for example, where significant deliveries from the Ukraine to Poland failed and Hungarian suppliers were able to fill the resulting gap this year.

days with an early frost this year that affected apricots and sour cherries. Ledó is thus expecting a maximum of 24,000 t of apricots this season following the 34,000 t harvested last year. He believes that last year’s volume of 900,000 t of apples will fall to between 600,000 t and 650,000 t. 63,000 t of sour cherries are also forecast.

Hungary's biggest producer organisation Délkertész, which he manages and is located in Szentes, got off to a good start this year. Its 500 members already produce more The field vegetable crop is expected to reach 1.4 million t this year. than 90% of their two most important varieties of vegetables using integrated, year, Hungary introduced an electronic control biological plant protection. Although the poin- system for goods transportation on public roads. ted peppers and tomatoes in greenhouses heated Every goods transport in the system is reported with thermal water received less light than nor- electronically to the national tax and customs mal in February and March, so that slightly lower office before departure so as to ensure that taxes yields than normal are now expected, producers are paid. This contributes to fair competition on are confident that this decline in production will the market. 47,000 companies registered for the be compensated by higher prices. “Around 25 to scheme in the first six months and the number of infringements has plummeted since then.

Hungary's biggest fruit and vegetable exporter, Garten GmbH in Budapest, is also relying on existing stable, proven business relationships. Its director Károly Bognár explained that the company has been barely affected by the Russian embargo: “We earn two thirds of our turnover in Germany, and the remaining third is split between Scandinavia, the Baltic States as well as Poland, the Czech Republic and Slovakia.”

Ernö Bajai

Ukraine/Kiev

Fresh Business Expo 2015

Harvest forecast As far as prospects for this year’s Hungarian harvest are concerned, Ferenc Ledó is expecting a repeat of last year’s good yields for field vegetables at 1.4 million t. A volume of 395,000 t is now expected for protected vegetables. However the question arises as to how the fields will cope with the low levels of rainfall and the heat wave which occurred at the beginning of July involving peak temperatures of 40 degrees Celsius. As for fruit, he is not expecting a repeat of the record harvest of 1.3 million t in 2014. There were a number of 26

The Russian embargo is having negative consequences for the domestic market.

30% of our turnover is accounted for by exports.

Our no. 1 partner with a 70% share is Germany, to whom we primarily export pointed peppers and sweet red peppers as well as melons. We enjoy stable trade relationships in Hungary. More than 90% of our goods go to supermarkets and consumer markets as well as discounters. One important piece of news according to Ferenc Ledó is the fact that, at the beginning of this

The exhibition will be held from 1-3 December 2015 and takes place in the International Exhibition Centre (IEC) in Kiev. The organisers of Fresh Business Expo Ukraine are pleased to announce that co-organiser and main conference partner, Fruit Inform, will organise their annual conference “Fruits & Vegetables of Ukraine” during the Fresh Business Expo Ukraine 2015.

BULGARIA _____________________________________________________________________________

Radical change urgently needed The damage suffered by the Bulgarian food industry as a consequence of the economic disputes between Russia and the EU amounts to around 6 million EUR. Apart from the loss of a major export market, Bulgarian producers have also had to contend with the falling prices as a result of a shift in the flow of trade.

W

ith this in mind, the Bulgarian food industry is demanding stricter controls on imports of fresh fruit and vegetables from the state authorities. It has been a well known fact for some time now that grey imports from neighbouring Balkan countries have put a major strain on domestic producers. According to Georgi Minchev from the Bulgarian-Russian Chamber of Industry and Trade, Bulgarian exports to Russia already dropped by 9% in 2014.

The decline in the first 3 months of 2015 rose to 42%. And it is not just producers and exporters of agricultural goods who have suffered losses but also carriers and logistics companies.

According to analysts, however, the losses have been on a relatively low level because exports of Bulgarian fruit and vegetables to Russia have stagnated continuously over the past few years.

In 2013, the figures were 6,200 t of fruit and 320 t of vegetables. By August 2014, before the start of the embargo, Bulgarian exports had shrunk to 4,400 t of fruit and 116 t of vegetables.

Rise in imports from the EU At the same time, statistics for the Bulgarian market also show a rise in imports from other EU member states. In the first seven months of the embargo between August 2014 and February 2015, a total of 205,900 t of fresh fruit and 117,500 t of fresh vegetables were registered as imports. This was 57% and 33% more respectively than in the previous year 2013, whereby the growth is predominantly from EU countries.

The rise in imports relates mainly to products that are not grown in Bulgaria, for example citrus fruits and bananas. As for vegetables, it is capsicum that rose dramatically by 84% between August 2014 and February 2015 compared to the same period in the previous year. The increase for tomatoes was 33%, for potatoes 37% and for white cabbage and cucumbers more than 60%. It is particularly interesting to note that this rise did not lead to a fall in prices for consumers.

In the first 3 months of 2015 the statisticians also registered an increase in the price of fruit and vegetables produced in Bulgaria compared to the same period in 2014. The main increase was for white cabbage (127%) and greenhouse tomatoes (36%), and less so for apples (6.8%) and greenhouse cucumbers (16.7%). The reason for this increase in prices for production under glass is the higher production costs on account

of the persistently low temperatures in the first few months of 2015. The rise in the price of apples and white cabbages is attributed to seasonal peculiarities such as the quality of the harvest and unstable import volumes. The trend towards a fall in prices for potatoes and onions that began in 2014 is continuing.

EU compensation not enough At the end of June, the Bulgarian state fund for agriculture paid around 360,000 EUR to a total of 66 producers who had been affected by the Russian food embargo against the EU. These funds came from the European Union. However, the industry agrees that the EU instruments of compensation and those of the Bulgarian state are inadequate to cushion the turbulences on the market caused by global changes. In the industry’s opinion, what is needed is a clear strategy in terms of priorities for cultivation and export. Producers regard the state, and the ministry of agriculture in particular, as the authority responsible for drafting clear guidelines and for guaranteeing adequate financial resources.

One key problem for Bulgarian agriculture in general remains its fragile structure, an opi-

One key problem for Bulgarian agriculture in general remains its fragile infrastructure.

Europaweg Europaweg22 3451 3451HG HGVleuten, Vleuten,Holland Holland

Import Import Groenten Groenten/ /Fruit Fruit Fruits Fruits/ /Vegetables Vegetables Obst Obst/ /Gemüse Gemüse

The Bulgarian industry is demanding stricter controls on imports of fresh fruit and vegetables from the state authorities. Photos: Petrov

nion also held by the ex-minister of agriculture Prof. Ivan Stankov. Fruit orchards and vineyards currently only account for 4% of the usable production area. This may be normal for a northern European country, but not for the Balkan states.

In neighbouring Greece the proportion by comparison is 28%. And the situation is even more tragic in vegetable farming, says Prof Stankov.

“Only 0.8% of the usable agricultural area in Bulgaria is set aside for vegetables, whereas this is 6% in Greece and 2% on average in the EU.” Alternatives are already being hotly discussed in the media, but the desired state strategy still remains little more than a vision. For example, the gigantic irrigation systems built during the years of socialism are to be reactivated, having been left to their fate for two decades after the dissolution of the former agricultural cooperatives. The majority of these are no longer in proper working order today. New fruit and vegetable wholesale markets should also create an alternative to the outdated distribution structures that are still dominant to this day and which make production more expensive. Targeted sales promotion in EU countries, Arabian countries and Turkey has long been on the agenda, but has not really taken off yet. Nevertheless, the ministry of agriculture announced at the end of June the creation of a bilateral centre to encourage trade with China, whereby the focus is not solely on Bulgaria but on all CEE countries and their agricultural products.

Ralf Petrov

tel. tel.+(31) +(31)30 3023 2320 20420 420 fax fax+(31) +(31)30 3023 2320 20422 422 more morethan than

www.janoskam.nl www.janoskam.nl info@janoskam.nl info@janoskam.nl

Export Export Fruits Fruits/ /Légumes Légumes Frutas Frutas/ /Verduras Verduras Oвощи Oвощи/ /Фрукты Фрукты 27

Special Changing Markets POLAND _________________________________

Grocery market still affected by deflation of food prices The value of the Polish grocery market will reach almost 58.7 billion EUR in 2015, up by 2.1% over the previous year, according to PMR’s estimates.

T

he growth in Poland’s food sector was primarily driven by discount and convenience stores. According to PMR’s latest report entitled “Grocery retail in Poland 2015 – Market analysis and development forecasts for 2015-2020”, the Polish market is still affected by deflation in food prices during the first half of the year. The market’s value in 2014 rose by a mere 1.8% year on year to 57.5 billion EUR. It should be emphasised that the grocery market is the largest single segment in the retail market in Poland.

The market can be characterised as relatively mature, since it is not subject to rapid or significant fluctuations caused by the deterioration or improvement of consumers’ economic standing, or changes, if any, among the major market players. This is one of the reasons why the market continues to grow despite grocery deflation. Lower prices allowed consumers to spend more on higher

The retail market in Poland is dominated by international chains. Photo: www.portalspozywczy.pl.2

quality products or purchase items through the numerous promotions offered by the major chains. Moreover, the Polish grocery market is highly competitive. In addition to the leading foreign chains, there are also many chains which group small stores or supermarkets of Polish origin operating in the market.

Nevertheless the market is still dominated by international chains. Only one retailer among the top 10 market players is owned by a Polish company.

Steady market consolidation This is one of the reasons why proposals advocating the introduction of an additional turnover tax on the largest chains, or a ban on Sunday trading have been so well received by smaller retailers.

It should also be noted that the market follows a steady consolidation path from one year to the next. The ten largest retail organisations generated over half of total grocery sales. Moreover, since small chains or standalone stores find it increasingly difficult to survive, they either join franchising networks or decide to opt for greater specialisation. A vast majority of franchised stores (abc, Odido and Zabka for example) are run by the largest market players, further solidifying the position of the market leaders. PMR says it expects that the situation of smaller retail outlets will improve in the coming years in connection with evolving consumer habits, driven by the convenience format and specialised retailers. Forecasts also indicate that deflation will subside when the summer holiday ends. As a result, the grocery market is expected to grow in 2015 at a faster pace. 

POLAND _____________________________________________________________________________________________________________________________

Hauliers suffer from the embargo and seek new markets Fruchthandel Magazin spoke to Tadeusz Wilk, director of the transport department of the Polish association of international road haulage enterprises ZMPD, the biggest association in the country’s road haulage industry with over 5,000 members. It has been active on the Polish market since 1957.

Z

MPD members are registered business partners active in international road transport. They own the majority of the almost 150,000 vehicles that currently make up the total Polish transport fleet. The association provides help and informs its members on the latest news regarding such matters as customs regulations, toll fees and working hours, and also represents their interests externally. The Russian embargo has been a major talking point for members since it came into force in August 2014.

Fruchthandel Magazin: Mr Wilk, how has the Russian embargo affected the Polish transport industry?

28

Tadeusz Wilk: Poland is one of the most important exporters for fruit and vegetables to Rus-

Toll fees in Europe have increased the costs for Polish transport companies.

sia, with most of the goods being transported by refrigerated trucks. Over the past few years, Polish transport companies have specialised in transport from the whole of the EU to Eastern Europe, mainly to the Russian Federation. This is why Polish transport companies have been hit particularly hard by the fall in the number of orders as a result of the embargo.

FH-Magazin: Where do the main problems lie today in the transport of food, in particular fruit, vegetables, meat and meat products?

T. Wilk: Maintaining the cool chain. Most of these transports are carried out with refrigerated vehicles. Polish trucks don’t just carry goods made in Poland but also those produced in the other

Fruchthandel Magazin 2015 EU countries and outside the Union. The goods are delivered to EU ports and then directly to Russia, or via transhipment in Polish logistical centres.

FH-Magazin: According to the Polish ministry of agriculture, food producers are being selectively introduced to other countries, some of them outside Europe, so that they can find buyers for their fruit and vegetables there. In other words, the flow of goods for Polish food is changing. What are the consequences for your industry?

T. Wilk: According to our information, a number of Polish food producers have changed the direction of their exports and are now channelling their products towards other countries, for example to Arab countries. However, this does not, of course, affect road transport.

FH-Magazin: What is the situation for Polish transport companies who have to carry food to

FH-Magazin: So the current situation for Polish transport companies could be described as rather hopeless. What does this mean for individual companies?

T. Wilk: The situation is indeed very difficult.

Their financial situation and their liquidity has deteriorated and they are experiencing great difficulties meeting their ongoing obligations.

This also extends to the leasing rates for their vehicles and paying back their instalment loans.

FH-Magazin: And finally a very different question that relates to the toll fees in Germany:

how have these been accepted by Polish road transport companies?

T. Wilk: Polish road transport companies were very concerned about the toll on trucks before this was introduced in Germany in 2005. On the other hand, we understand the necessity of such measures. Nevertheless, this does not alter the fact that the German toll and toll fees in other European countries have significantly increased the costs for Polish transport companies.

Dr. Henriette Ullmann

ISRAEL ________________________________________________________________________________

Producers and exporters struggle with exchange rates After an increase in the value of fresh agricultural exports from Israel in 2013, export value dropped significantly by 8% in 2014. According to recent figures published by the ministry of agriculture and the rural development research, economy and strategy division, the total value of agricultural exports in 2014 reached 1.37 billion USD compared with approximately 1.5 billion USD in 2013.

Fresh agricultural export accounted for 2% of total exports in the market.

Currently the export sector struggles with unfavorable exchange rates – notably against the Russian Ruble and the Euro.

Tadeusz Wilk

Photo: Ullmann

Kazakhstan, for example, and only use Russia as a transit route?

T. Wilk: The ban on imports to Russia applies for all products that are affected by the Russian embargo, irrespective of whether they are for a buyer in the Russian Federation or destinations in other countries. Russia prevents the transit of goods through its territory in this way. Although transit transports through Russia to other countries such as Kazakhstan are allowed under certain circumstances, this in no way improves the situation for Polish transport companies. In this case, Russia imposes further restrictions related to the inadequate number of permits for road transports to Kazakhstan. Although efforts have been made on the Polish side to obtain further permits from the government of Kazakhstan, they are not prepared to make any concessions.

FH-Magazin: What are the consequences of this development for the companies involved?

T. Wilk: In this situation a number of companies have unfortunately been forced to cancel further tours in their current schedules. One alternative would be to deploy these vehicles on other transport routes. This would lead to a glut in the amount of transportation on offer on other routes and thus to a deregulation of the road transport market and to a drop in freight prices.

I

n recent years agricultural exports from Israel have relied heavily on the Russian market, which offered an alternative export destination to Europe. This was the view of Ofer Sachs, CEO at the Israel Export and International Cooperation Institute (IEICI) in an interview with Israel Agri in spring 2015. However, after European sanctions were imposed on Russia, those exports suffered a decline owing to the Ruble’s low exchange rate and the consequent reduction in purchasing power in Russia. Nevertheless the Israeli ministry of agriculture stressed that since the Ruble crisis began only in mid-2014, its effect on export figures for the year was limited.

Nevertheless, the unfolding financial crisis in Russia threatens the entire Israeli agricultural sector as this market accounts for 30% of all Israeli agricultural exports. The Israeli Farmers Association has requested compensation from the government for losses of 51 million USS for all agricultural exports to Russia, stating that the severity of the situation requires immediate government intervention. The main products within the fresh produce segment that are exported to Russia are potatoes, carrots, peppers, radishes, avocados and citrus.

However Russia is only part of the problem.

The figures from the ministry of agriculture al-

Easy Peelers like Orri have taken the lead in the citrus segment while grapefruit gradually decline in volumes.

29

Special Changing Markets Avocados and other fruit are mainly exported to the EU and Eastern Europe.

so show that the Fresh Agricultural Produce Index dipped by 0.8% last year. At the same time the Euro exchange rate against the Israeli Shekel (NIS) has weakened, so that producers now receive a lower return for produce marketed to Europe. In the last 12 months the NIS strengthened by about 10% against the Euro.

Key economic sector Agriculture is a very important sector in Israel, representing about 2.5% of the total GDP. Fresh products account for 2%, this rises to 3.5% including processed food. According to the Israel Farmers Federation some 300,000 ha were used for agriculture in 2014 with revenu-

es at over 30 billion NIS (nearly 7.7 billion USD) – some 18.5 billion (4.7 billion USD) of that coming from field crops, fruit and vegetables.

The revenue for vegetables alone amounted to 6 billion NIS (nearly 1.53 billion USD) of which potatoes generated the highest revenue with roughly 1.2 billion NIS (nearly 307 million USD).

Fruit accounted for slightly less with revenues of just below 6 billion NIS. The most important fruit were dates (860 million NIS/220 million USD) followed by grapes (804 million NIS/206 million USD), avocados (579 million NIS/148 million USD) and bananas (539 million NIS/138 million USD) as well as apples (496 million NIS/127 million Euros) and peaches (352 million NIS/90 million USD). Another very important sector is citrus which generated more than 1.2 billion NIS (307 million USD) in 2014. In the past years easy-peelers have become the most successful citrus segment, accounting for 454 million NIS (116.3 million USD) in revenue while grapefruit are rapidly losing ground with revenues only amounting to 360 million NIS (92 million USD). Navel and Shamouti oranges reached revenues of 161 million NIS (41 million USD) last year.

Increased citrus exports to long distance markets

Potatoes are one of the products exported to Russia.

30

Citrus has always been one of the most important segments in agricultural production and export in Israel. Last season however Israeli citrus growers have had to contend with adverse weather as well, states the US Department of Agriculture (USDA) in a recent report. Storms in January 2015 are estimated to have caused a damage of roughly 70 million NIS (18 million USD). The current Euro exchange rate has resulted in Israeli citrus exports to the EU becoming less profitable compared to the previous season. Additionally, the financial crisis in Russia is significantly hurting Israeli citrus exports in particular. According to the USDA the rapid

depreciation of the Russian ruble since October of last year coupled with its economic slowdown have resulted in an estimated decrease in revenues of about 30% compared to the same period in the previous marketing year.

In previous marketing seasons, European markets accounted for close to 90% of Israel’s citrus exports with western Europe importing 66%, while Russia and the Ukraine took 23.5%. Exports to Japan have also experienced a drop due to the economic slowdown there.

As a consequence, Israel has been increasing its exports to long distance markets, particularly to South Korea, the US, and Canada. However,

In recent years the production of dates has grown significantly and they have become a very important export product.

these markets remain relatively small. The US and Canada account for between 3 and 4% of total Israeli citrus exports.

Back to the USA Currently the Israel Export Institute IEICI is concentrating on several activities to promote Israeli agricultural exports. One example is the opening of an specialized export stand at FRUIT LOGISTICA in Berlin and the organization of delegations to visit Israel. In one new strategic project, the IEICI is cooperating with the ministry of agriculture and the Israel Plants Production and Marketing Board. The project calls for mapping out the industry’s strengths, examining the growth potential, and assessing the market potential for those chosen products. As the Export Institute’s CEO Ofer Sachs outlines in his interview with Israel Agri: “One example of the project’s work is an attempt to study the market potential in the USA, since the extent of exports to that country has declined in recent years. We already have some very interesting interim data.” He stresses the point that each activity focuses on a long-term strategy. ric

Fruchthandel Magazin 2015 ARGENTINA ____________________________________________

Asia – a tough market for the Argentine fruit sector Asia is a tempting destination for everyone involved in the export of fresh produce. Everything there appears to be in superlatives: the population, the volumes that can be sold, and the potential earnings.

This is particularly true for major food exporters such as Argentina.

L

arge quantities of soya, wheat, corn or sunflowers from Argentina are already being exported to Asia, with China one of most important customers. However things are rather different for fruit. Only small quantities of fresh produce are currently exported from Argentina to the Asian region, and exporters would certainly love to sell larger volumes in Asia. This fact has become particularly noticeable over the past few years ever since traditional export markets started importing less Argentinian fruit. Europe is still the main customer for the Argentinean fruit sector. However volumes there are not rising but falling. Since the sharp decline in the value of the Euro, prices in the EU are no longer attractive, and the search for alternative customers has been stepped up. Asia, in contrast, is a ready market for many fruit producers from the southern hemisphere including Chile, New Zealand and South Africa. Apples, lemons and grapes, for example, once destined for Europe are now being shipped to Japan, China, Indonesia or the Middle East. But the situation is nevertheless not really working out for Argentina. With a few exceptions, export quantities up to now from Argentina have been small, and Asia cannot really yet be considered an alternative to Europe. However, big efforts are being made to change things.

For some years now, Argentina has been working on developing new markets. Its exporters have attended numerous important trade fairs such as Fruit Logistica, phytosanitary agreements have been concluded with a number of countries, and market entry possibilities to new markets sounded out. But in the majority of cases, the emergent

difficulties have not yet been able to be overcome.

The main negative factors for Argentina are:

Argentina is one of the world’s largest pear exporters.

● Long distances: Argentina is on the Atlantic coast whereas Chile and Peru are on the Pacific coast. This means longer transit times and more expensive logistical costs. ● A lack of phytosanitary agreements, without which international fruit trading is impossible. ● Regulations on Asian markets regarding plant health and plant protection which cannot be satisfied. ● Major cultural differences regarding language and behaviour patterns, making negotiations very difficult. ● The absence of trade agreements between Argentina and Asian countries ● The varieties, sizes and quality of fruits that are in demand in Asia are to some extent difficult to grow in Argentina.

Focus on Southeast Asia Over the past few years, Argentina has exported between 40,000 t and 60,000 t of fruit to Asia.

Southeast Asia is currently the most important customer on this huge continent. This region alone accounts for half of the volume exported

by Argentina to Asia, that is between 20,000 t and 30,000 t.

In the meantime, the Citrus fruit has been the most successful in Asia up to now.

Middle East also imports larger quantities, namely between 12,000 t and 20,000 t. Volumes reaching the Far East and Central Asia, including China, at 5,000 t or even less, are still relatively low. Citrus fruit has been the most successful variety of fruit in Asia up to now, particularly easy-peelers and lemons. The mandarin variety Murcott is particularly popular in Southeast Asia, as is the variety Clemenvilla/Nova. Countries such as Indonesia, Malaysia, the Philippines and Singapore are also buying ever larger quantities.

Lemons too have been well received there. The Middle and Far East orders around 10,000 t every year, smaller amounts are also sent to Central and Southeast Asia.

Mixed situation for pipfruit and stonefruit The situation is very different for stone fruit. It is well-known that Argentina is one of the world’s biggest pear exporters, though huge quantities of apples are also exported. It is the most exported fruit in the country but has still not enjoyed success in Asia. Phytosanitary obstacles, varieties that are not so popular in Asia and the great distances involved have inhibited exports. Nevertheless, around 10,000 t of pipfruit is exported to Asia every year, with Anjou pears, popular in Arabian countries, accounting for the biggest share. Packham pears are primarily sent to the Far East and Southeast Asia, sweet apples to Bangladesh and Arabia. However these are only in small quantities.

There are three other types of fruit that are successful in Asia: cherries, blueberries and Red Globe grapes. China has developed into a big market for cherries. Over the past two years, Chile has exported more than 50,000 t of sweet cherries to China, or two thirds of its overall exports. Argentina’s quantities are much lower, but exports to the Far East are rising every year. The 31

Special Changing Markets SOUTH AFRICA/HORTGRO ______________

China access a stepping stone for the apple industry

T China has developed into the biggest market by far for cherries.

situation is not quite as extreme for blueberries.

In this case, the USA remains the biggest customer for southern hemisphere countries, but the Chinese are beginning to eat more and more blueberries all the time. Last year Chile exported around 10,000 t, corresponding to 11% of total exports. Argentina’s quantities are still low but will rise in future. Red Globe grapes are attracting more and more enthusiasts in Southeast Asia. Argentina has already exported a lot to the region.

But the difficulty here is the competition with Peru and Chile, who can reach these markets more easily and cheaply and who can also offer better quality thanks to their favourable climate.

It remains to be seen if and how Argentina’s fruit sector can increase its exports to Asia. New markets have certainly been developed over the past few years: these include Israel, Vietnam, India and Japan, but up to now export volumes to these countries have been very low. The obstacles are great and other alternative markets in Latin America and North Africa have simply proven more favourable than Asia. This means that it is currently hard to make reliable forecasts as to future developments in the region.

Betina Ernst - Top Info Marketing SA

Saudi Arabia

Del Monte opens convenience store American multinational Del Monte launched its convenience format “Fresh Market” in the middle of June in the Saudi Arabian capital of Riyadh. In this store in a prime city-centre location, the company is offering a diverse range of products to cater for the growing health awareness of the population. These include freshly made smoothies as well as ready-to-eat salads and wraps.

32

he apple export protocol was signed by the Minister of Agriculture, Forestries and Fisheries, Senzeni Zokwana, during a state visit to the People’s Republic of China in Beijing in December 2014. This culminates an eight year process between the two countries and will enable the industry to expand its ever broadening marketing footprint. Tapping into this market has been a major priority in the industry for more than a decade and should act as a springboard to also more effectively access other markets in Asia. Apples are currently exported to eight primary destinations including Africa, the Far East and Asia, the United Kingdom, the Middle East, Continental Europe (including Russia) and smaller volumes to the Indian Ocean Islands, the USA and Canada. By adding China to the destination list, the South African fruit industry intends to create more job opportunities

Tapping into the Chinese market has been a major priority in the industry for many years.

in the primary and secondary agriculture. Further market access will also support further growth and economic development, which in turn will enhance land reform transformation and new plantings in the industry.

A similar process to also open this market for South African pears has already started, after which various other fruits, including stone fruit, will follow. It is expected that the process to formalize further protocols will be fast-tracked, given that the fruit exporting industry could prove compliance with international best practice in terms of food safety and phytosanitary requirements.

Birgit Hannemann Tel. +49-(0)211-9 91 04-18 ha@fruchthandel.de Internationale Fachzeitschrift für das gesamte Marketing im Grünen Sortiment FRUITNET MEDIA INTERNATIONAL GmbH info@fruchthandel.de www.fruchthandel.de Lindemannstraße 12, 40237 Düsseldorf, Germany Postfach 10 55 51, 40046 Düsseldorf, Germany Tel. +49-(0)211-9 91 04-0, Fax +49-(0)211-66 31 62 Herausgeber H. Günter Schweinsberg Tel. +49-(0)211-9 91 04-0 gs@fruchthandel.de Geschäftsführung Robert Broadfoot Tel. +49-(0)211-9 91 04-13 rb@fruchthandel.de Ulrike Niggemann Tel. +49-(0)211-9 91 04-25 un@fruchthandel.de Chris White Tel. +44-20-7501 3710 chris@fruitnet.com Chefredaktion Gabriele Bastian Tel. +49-(0)211-9 91 04-21 ba@fruchthandel.de Redaktion Tel. +49-(0)211-9 91 04-35, Fax +49-(0)211-66 31 62 redaktion@fruchthandel.de Konstanze Richter Tel. +49-(0)211-9 91 04-17 ri@fruchthandel.de Michael Schotten Tel. +49-(0)211-9 91 04-16 ms@fruchthandel.de Online-Redaktion Nadine Schotten Tel. +49-(0)211-9 91 04-27 nsc@fruchthandel.de Anzeigenleitung Hans-Joachim Fuhrmann Tel. +49-(0)211-9 91 04-20 fu@fruchthandel.de Mediaberatung Tel. +49-(0)211-9 91 04-40, Fax +49-(0)211-66 31 62 anzeigen@fruchthandel.de

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FRESHNESS IN FOCUS DEUTSCHER OBST & GEMÜSE KONGRESS 17.18.09.2015  DÜSSELDORF

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