Trends developments Colombia

Opportunities & challenges for Tropical Fruit & Exotics from Colombia on the Dutch / EU market

Some Basic FFV numbers:

• 1990 – 2010

• Vegetable production worldwide increased 60 %

• Fruit production worldwide increased 100 %

Some Basic FFV numbers:

• 2005 - 2011

• Fruit & Vegetable production Colombia increased from 9,2 – 10,2 million tons

• Export value of Colombia Tropical and exotic Fruit in 2012 reached 48,6 million USD.

Some Basic FFV numbers:

• 2011

Main fruits exported:

• Bananas 36 %

• Physalis 24 %

• Passion fruit 8 %

• Baby bananas 5 %

• Granadilla 2 %

Example products with high market potential in Europe:

• Avocado Hass

• Limon Tahiti

• Melons (Piel de Sapo, Yellow Honey Dew, Cantaloupe, Galia)

• Watermelons (Quetzali, seedless)

• Pomegranates (depending on window of supply)

Consumption FFV / year Europe

• Vegetables 60 mln tons

• Fruit 54 mln tons

Import Volumes 2011

• Vegetables 3.8 mln tons

• Fruit 12.9 mln tons

EU Market

• 28 countries

• 500 million consumers

• 28 different cultures

• 28 different eating patterns

• 28 different average income levels

• 28 different business mentalities

The Netherlands Nederland

Holland Holanda

Paises Bajos • 16.5 Million population

• 41.526 Sq Km

Gateway to Europe:

• Schiphol Airport

• Rotterdam Sea Port

Future Developments for the supply from emerging countries:

• Economic development new EU members

• Growing importance Retail organizations

• Increasing demand for food safety

• Changing role importers towards chain

management

• Growing demand for convenience, exotics and niche products

• Increasing demand for Sustainability and CSR

Credit Crisis Short term threats:

• Loss of confidence consumer

• Less spending

• Credit insurance more difficult

• Banks more careful with overdrafts

• Exceeding of Payment terms

Growing importance of

large Retail Organizations

• Approx 75 % of FFV sold via the supermarkets

• Concentration in buying power

• Demand for high level of professionalism of the producers

• Food safety, programs, continuity

• Chain control from seed to shelf

Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe

Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe

Approx 75 % of all fresh fruits & vegetables are sold via the supermarkets in Europe

Changing Role of the importer

• Change to supply chain manager

• Control on programs from production to supermarket

• Control on the logistic chain

Quality:

• Quality is not longer an issue

• Everyone demands first class

• No secondary markets

• High costs for destruction

EU enlargement:

• Higher income / lower consumption

• Shift from basic volume products to diversity F & V products

• More availability of other food products as snacks and junk food.

Logistics:

• New logistic connections to new EU members

• Development of new import companies in new EU countries

• More direct shipments, surpassing the traditional importers

Exotics:

• Higher consumer income

• Increased Travel to distant holiday destinations

• Large Ethnic communities

Food Safety:

• Key issue

• Demand for food safety protocols

• General food legislation

• Stricter control on MRL’s (maximum residue levels)

• Harmonized in the EU per 01-09-2008

• Supermarkets increasingly stricter than European laws

Certificates:

• Need to follow protocols

• GlobalGap a minimum entrée ticket to the EU market.

• Growing demand for protocols as BRC, HACCP and others

• Without certificates only spot market access.

Hygiëne ?

Organic:

• Growing market for organic

• Demand larger than supply

• Supermarkets only interested in programs

• Consumer not really ready to pay more

Sustainability / CSR

• Care for the environment

• Carbon footprint

• Local for local

• Growing consumer awareness on social circumstances

• Ethical trade

• Fair trade

Health:

Health:

• Higher standard of living / more concern for health issues

• Overweight a major concern

• Governmental and EU campaigns to promote consumption of fresh F + V

• Possibilities for the trade to emphasize health claims

Convenience:

• Higher income / more demand for convenience products

• Prepared, sliced, pre-cooked

• Snack packs

• Prepared in production countries

• Convenience, innovation and problem solving

Innovation / Added value:

• New concepts

• Ready to eat programs

• Product development

• Kids marketing

Ethnic markets:

• Large populations immigrants

• Own food cultures

• Growing consumption of ‘ethnic’ food

• Integrating into the native kitchen

• Specialized ethnic shops

• Long term, assimilation in main stream supermarkets

Opportunities for developing countries:

• Anticipation on increase of scale in the supply chain

• Increasing demand for outsourcing

• Marketing towards new EU members

• Value adding / convenience

• Niche products / windows of supply

Critical factors:

• Increasing level of professionalism

• Focus on food Safety protocols

• Quality as basis

• Focus on logistics

• Increased scale of production

• Improvement of communication

Thank you!