PDF - Brazil - Nancy Tucker

Growing Opportunities in the Retail Market Nancy Tucker Vice Presidenta Produce Marketing Association

Copyright PMA 20091

What is PMA? An organization that unites the whole supply chain.

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The Mission of PMA: • To connect, inform, and provide business solutions that will increase the prosperity of our members.

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Agenda • Increasing imports • System of distribution in the US • Changing retail practices • Challenges and opportunities

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Importance of imported products

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Increasing share of domestic consumption

Source: ERS/USDA Briefing reports Copyright PMA 2009

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Sales of Imported Fruits and Vegetables by Volume and Value

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Fruits Imported by the U.S.

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Vegetables imported by the U.S.

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Sources of imported, fresh vegetables

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Sources of imported, fresh fruit

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US Imports from Brazil (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

Mangos Imports from Brazil (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

2010 US Mango Import Origins (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

Melons Imports from Brazil (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

2010 US Melon Import Origins (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

Papayas Imports from Brazil (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

2010 US Papaya Import Origins (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

Pineapples Imports from Brazil (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

2010 US Pineapple Import Origins (in thousands of USD)

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.

Distribution Sytem

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U.S. Fresh Fruit and Vegetable* Value Chain, 2008 Estimated Billions of Dollars $48.4

institutional wholesalers

food service establishments produce and generalgeneralline wholesalers

$10.1 imports

$63.1 farms $21.2

shippers $5.6 exports

integrated wholesalewholesaleretailers

supermarkets and other retail outlets

*Excludes nuts

$113.2 + consumers

farm & public markets

$1.7

numerous us public sources, incl.

Source: Estimated by Dr. Roberta Cook, UC Davis, based on numero USDA, DOC, Progressive Grocer, and PMA. Preliminary estimate. Not for publication.

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Changing Retail Practices

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Consolidation Continues • Retailers merging – Smaller rate than the late 1990’s – early 2000’s – Supplier consolidation

• Consolidation within companies – DelHaize consolidating buying offices • • • •

Food Lion Bloom Bottom Dollar Hannaford

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Consolidation Continues • Retailers merging – Smaller rate than the late 1990’s – early 2000’s

• Consolidation within companies – SuperValu • • • • • • • • • • •

Acme Albertsons Bristol Farms Cub Foods Farm Fresh Hornbacher’s Jewel-Osco Lucky Shaw’s Shop ’n Save Shoppers Food & Pharmacy • Star Markets Copyright PMA 2009

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Increasing direct sales • Impact of initial trend of direct sales • Global direct buying – Wal-Mart – Tesco

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Impact • Requirements – – – –

Volume Quality Distribution Year round availability

• Still limited re imports – Not many retailers have sufficient staff and expertise – Importers still a vital part of the supply chain

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Competition • Among supermarkets • Other formats

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Walmart Supercenters Market Saturation St. Louis Metro

1988 (1)

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2003 (11)

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2006 (16)

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2007 (18)

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2008 (22)

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2009 (28)

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2010 (34)

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2011 (37)

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2012 (39)

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Total Walmart Network (49)

2009 W-M SAMS SAMS

SAMS

SAMS

SAMS

W-M

SAMS

SAMS

SAMS

Competition from other formats

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Impact

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Attractive/innovative packaging

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New varieties

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Quality/ taste

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Convenience/value added

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Value price

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Challenges and Opportunities

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Green/Environment/Safe • Sustainability • Safe and uncontaminated food • Environment

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Productos Locales • Tendencia fuerte en EE.UU. y Europa • Apoyo a agricultores locales • Menor distancia • Percepciones de sabor y frescura

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Que pueden hacer los exportadores?

TELL YOUR STORY

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Growth in Emerging Markets

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Climate change impacting supply •

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Climate change impacting supply •

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Climate change impacting supply •

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Climate change impacting supply •

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Climate change impacting supply •

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Water quality and availability • Water usage – agriculture accounts for 70% of global water withdrawals • At current consumption patterns, there will be a 40% gap between supply & demand by 2030 according to Water Resources Group

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Increased demand • World population predicted to rise 30% in next 40 years

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Supplier and Buyer as partners

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