1. EXPORTING TO THE UK: HOW THE NETHERLANDS WILL RESPOND TO THE UPCOMING CHALLENGES & MAINTAIN ITS UK TRADING RELATIONSHIP GOING FORWARD
Gert Mulder
5th of June 2019
London Produce Show

2. Doing trade with the UK: who’s the boss?

3. Brexit: The main concerns
Add 1-2 minutes of inspection time to a HGV, both ways, at the border at Calais/Dover and you will end up with a traffic jam with a length of about kilometers which will not disappear. NL alone export HGV per year of fresh produce on a just-in-time basis. Unless new solutions are found third country procedures will effectively diminish trade.

4. Global player in fruit and vegetables...

5. Top 10 export of fresh fruit and vegetables to the United Kingdom

6. Channels Dutch export fruit & vegetables
Retail
Foodservice
Food Processing
Wholesale market

7. Let’s talk about tomatoes

8. British consumers like round tomatoes

9. Export fresh fruit and vegetables from NL to the UK

10. Import fresh fruit and vegetables into the UK, in 2018

11. Import United Kingdom, shares the Netherlands

12. Develop alternative inspection and documentation procedures
What can we do?
Develop alternative inspection and documentation procedures
System control in stead of consignment inspection (audit)
Digital exchange of data in stead of documentation
For HGV there are options for tracking and tracing

13. What a the main drivers behind the NL-UK trade
Integral cost efficiency
Production costs
Logistics (grouped transport ~60%)
Flexibility
Time between order and delivery (2x daily);
Available assortment (stock management)

14. What need we most (from the politicians)?
TRUST EACH OTHER
There has been over 40 years of trust in each others inspection systems.
Agree on a system of reciprocal pre-clearance
Try to find an arrangement to keep the standards harmonised (continued participation in EFSA)
Don’t fight over food

15. Seven challenges for UK retail
Brexit
Continuing uncertainty over Brexit is impacting business investment
Weak shopper confidence
Value will become more important to reassure price sensitive shoppers
Low volume growth
Retailers will continue to pursue operating cost cuts and shift sales to margin rich products
Legacy estates
Large stores need to be made more relevant to ‘little and often’ shoppers
Growth of online
Profitability remains hard to achieve with high costs not reflected in charges to shoppers
Meeting rising shopper expectations
Health and environmental concerns are here to stay
Pressure to deliver short term success
Pressures from shareholders for short term progress can inhibit long term strategies
© IGD 2019
Source: IGD Research, Sept 2018

16. Challenges and meeting rising shopper expectations
of shoppers are trying to eat healthier in some way
85%
Would like more information from food & grocery companies to inspire them to make healthier choices
70%

17. Packaging now a key concern for shoppers
“When choosing food and groceries in a supermarket, how important or not important are each of the following to you?” (% of shoppers who answered important / extremely important):

18. Can we do without packaging at all?

19. Healthy options particularly key when buying fresh products

20. Retailers encourage healthy eating
Engaging with children
Encouraging better choices
Endorsements and sponsorship
In-store advice
VegPower: ‘Eat them to defeat them’
Tesco: Little Swaps
Gousto: Healthy recipes
Waitrose: Health eating guidance

21. Strong relationship NL and UK!
Top quality and optimum taste higher interest in tomato with excellent taste!
More sales directly to retailers without provider/packer
Growing sales fruit & vegetables to foodservice
Logistical advantage  food miles, efficiency, costs
Demand for sustainable solutions  less plastic and foodwaste
Higher sales of exotics via the Netherlands foodsafety, high quality, full package, NL stays in the heart of Europe

22. Showing interest is as important
Prize for the best children marketing for fruit and veg