Trends & Developments Fresh Fruit & vegetables

Piet Schotel Consultant for the overseas imports of FFV in Europe

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

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

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

The Netherlands Nederland Holland Holanda Paises Bajos 17 Million population 41.526 Sq Km

Gateway to Europe: Schiphol Airport Rotterdam Sea Port

Retail power! Approx 75 % of FFV sold via the supermarkets Concentration in buying power Demand for high level of professionalism of the producers Food safety, programs, continuity Chain control from seed to shelf

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

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

Changing Role of the importer Change to supply chain manager Control on programs from production to supermarket Control on the logistic chain

Quality: Quality is not longer an issue Everyone demands first class No secondary markets High costs for destruction

Economic development: Higher income / lower consumption Shift from basic volume products to diversity F & V products More availability of other food products as snacks and junk food.

Food Safety: Key issue Demand for food safety protocols General food legislation Stricter control on MRL’s (maximum residue levels) Harmonized in the EU per 01-09-2008 Supermarkets increasingly stricter than European laws

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

Supermarkets demand: Exceeding the EU law! Stricter MRL (Maximum Residue Level) standards Stricter ARfD (Acute Reference Dose) standards Maximum number of active ingredients Exceeding the EU law!

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

Hygiëne ?

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

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

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

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

Health:

Health: Higher standard of living / more concern for health issues Overweight a major concern Governmental and EU campaigns to promote consumption of fresh F + V Possibilities for the trade to emphasize health claims

Convenience: Higher income / more demand for convenience products Prepared, sliced, pre-cooked Snack packs Prepared in production countries Convenience, innovation and problem solving

Innovation / Added value: New concepts Ready to eat programs Product development Kids marketing

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

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

Ethnic markets: Large populations immigrants Own food cultures Growing consumption of ‘ethnic’ food Integrating into the native kitchen Specialized ethnic shops Long term, assimilation in main stream supermarkets

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

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

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

Thank you!