The market for tropical and exotic fruits
in the European Union
Gustavo Ferro
ProFound – Advisers In Development
March, 2013 – Proexport seminar
Introduction
•
-
Gustavo Ferro
Market analyst: agro-industrial products
Fruits & vegetables (fresh and processed), coffee, cocoa and cocoa
products, vegetable oils, spices & herbs
Main clients: CBI, SIPPO, Proexport, CATIE, IDB, IDH
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ProFound – Advisers In Development: value chain development services:
maket intelligence, VCA analysis, trainings, project
facilitation, business development
•
Participants
Agenda
Part I: EU market overview – tropical and exotic fruits
•
EU fruit consumption and production
•
Tropical vs. Exotic fruits
•
European market characteristics
•
Entry channels and main players
•
Market trends and developments
Part II: Export guidelines – diversifying markets
• Going East – Czech Republic case
 Why to venture into new markets
 Trade channels
 Existing and future opportunities
•
Business practices
 Product marketing
 Delivery, payment, services
European Union – fruit consumption
Largest per capita consumers
EU-27 Gross per capita fruit consumption in kg / year, 2010
1 Cyprus
Apples and pears
Citrus fruit
2 Italy
Stone fruit
Melons & papaya
3 Romania
Bananas
Table grapes
4 Portugal
Other fruit
Dates, figs, exotic
0
5
Freshfel Europe, 2011
10
15
20
25
5 Greece
European Union – fruit production
EU fruit production 2011, in mln. tonnes
1
Belgium
Netherlands
Hungary
2
Austria
Portugal
Romania
Germany
3
Greece
Poland
France
4
Spain
Italy
-
FAOSTAT, 2013
5
10
15
20
5
European Union – tropical fruit profile
Bananas (incl. plantains)
Consumption
Germany
United Kingdom
Italy
Spain
France
Imports
Belgium
Germany
United Kingdom
Italy
The Netherlands
Pineapples
Avocados
2
5
3
1
2
Guavas and mangoes
1
5
3
4
4
Main suppliers
Costa Rica
Ecuador
Colombia
Dominican Republic
Peru
Exotic fruits – a matter of definition
• Tropical vs. Exotic fruits
VS.
yang mei
•
•
•
•
Unfamiliar to most consumers
Low market volume, high market value
Higher risks
Alternative market entry strategy
golden kiwi
Exotic fruit markets in the EU – market profiles
Trade statistics – reflecting market profiles
Largest EU importers of exotic fruits, in 1,000 tonnes
% of Colombian supplies
LITHUANIA
0%
DENMARK
0%
LUXEMBOURG
0%
PORTUGAL
5%
SPAIN
9%
AUSTRIA
0%
POLAND
0%
BULGARIA
0%
CZECH REPUBLIC
0%
SWEDEN
Potential competitors…
Madagascar
30% of EU supplies
tamarinds, lychees
Vietnam
5% of EU supplies
pitahaya (decorative)
Kenya
Low-cost passion fruit
0%
UNITED KINGDOM
0%
ITALY
0%
GERMANY
Malaysia, Thailand
pitahaya, carambola
3%
BELGIUM
0%
FRANCE
1%
NETHERLANDS
12%
0
5
10
15
20
25
Price competitiveness – Colombia
Selection of price indications, € /kg, CIF
Product
Origin
Destination
Average price in
May 2012
Granadilla
Colombia
Netherlands
9.09
Denmark
Passion fruit
Physalis
Pitahaya
10.83
Colombia
Netherlands
6.50
Kenya
Netherlands
5.75
Colombia
Germany
4.38
Israel
France
6.50
Colombia
France
6.50
Colombia
Netherlands
7.88
Colombia
Germany
5.11
Colombia
Netherlands
9.67
Vietnam
Netherlands
5.65
Colombia
France
9.00
Vietnam
France
9.00
Source: Market News Service of International Trade Centre, 2012
Trade Structure
Trade channels – main actors
Entry point
Intermediary
Distributor
Sea transport
(mainstream)
Importer, Agent
National or
Intra-EU
Air cargo, via main EU
airports
(specialised)
Connected to
distribution system
Agent’s role
diminishing
Mainstream vs.
specialised
importers
Major retailers vs.
specialised
Vertical integration;
tightening of
requirements
Minimum order quantities differ between trade channels
Consolidation!
Temperature-sensitive
transport; avoid
mechanical damage
Importerwholesaler role
or
independent
Retail channels or
Food service
However, ensure you can deliver:
full containers or full pallets
Orders are made every 3-4 days
EU market trends – exotic fruits
• Interest in exotic cusines / exotic fruits
 Travelling / Store promotions
 Cooking shows / Internet (websites, blogs) / Youtube culinary channels
 Other media
EU market trends – exotic fruits
• Healthy living – fruits containing healthy components
(antioxidants, dense nutrients)
“Superfruits”
introduced in small amounts, as ingredients
for the food industry (juices, smoothies);
slowly making it to supermarket displays
in fresh form.
“Less processing” trend
• Sustainability
 Consumer awareness: environment + social
 Origin  Traceability
 Certification
EU market trends – exotic fruits
• Food miles; Buying local (e.g. Streekmolen)
Related story: Soil Association (UK) case
EU market trends – exotic fruits
• Economic crisis  Market polarisation
Consumption of cheaper items
Opportunity to indulge
• Higher requirements, stricter controls  production and handling processes
Health and safety (GlobalGAP, HACCP, BRC)
MRLs (Pesticides) – Further reading
No GMOs!
Novel Food – Further reading