1. 1 Market Information and Opportunities for Trade with Europe March 23, 2011

2. 2OutlineOutline ● General Points to Note ● Overview of Regional & National Trade with the EU ● Overview of the Food & Beverage Industry in EU ● Trends and Opportunities in major Food & Beverage Sectors  Meat Products  Processed Fruits and Vegetables  Dairy Products  Sugar and Sugar Based Products  Fish and Seafood  Beverages ● Other Sectors of Interest ● Conclusions

3. General Points to Note

4. Objectives ● To provide insight into the European Union’s (EU) market for food & beverage products ● To identify EU trends in food & beverage sector ● To identify opportunities for exports of Trinidad and Tobago’s food and beverage products to the EU 4

5. 5Methodology ● Examined EU Food and Beverage Industry reports ● Analyzed current and potential trade data for the period 2005-2009  Bilateral Trade between the EU and TT  TT World Exports  EU World Imports ● Matched rising TT exports (globally) to rising EU imports ● Identified other opportunities for products based on the national, regional and international trade climate

6. 6 Additional Points to Note ● Data source: Trade-map, International Trade Centre ● All monetary figures are quoted in $US ● The effects of the global financial and economic crises which began in 2007, were realised in 2009 ● The EU refers to the EU 27, whose members are as follows:

7. Members of the European Union 27 ● Austria ● Belgium ● Bulgaria ● Cyprus ● Czech Republic ● Denmark ● Estonia ● Finland ● France ● Germany ● Greece ● Hungary ● Ireland ● Italy ● Latvia ● Lithuania ● Luxembourg ● Malta ● Netherlands ● Poland ● Portugal ● Romania ● Slovakia ● Slovenia ● Spain ● Sweden ● United Kingdom 7

8. Overview of Regional and National Trade with the EU

9. CARICOM Exports to the EU 9

10. TOTAL T&T EXPORTS 10

11. T&T F&B EXPORTS TO THE EU 11

12. Overview of the European Food and Beverage Sector 12

13. EU Food & Beverage Sector ● Approximately 310,000 companies ● Employ over 4 million persons ● Total Population of 501 million (1.1.2011) ● Largest food consumption potential in the world ● Main EU demand trends:  Healthy nutritious food  Low-fat, organic food  Convenient pre-packaged and pre-cooked food 13

14. Trends and Opportunities in Major Food and Beverage Sectors

15. Major European Food & Beverage Sectors ● Food Sectors:  Meat products  Processed fruit and vegetables  Dairy products  Sugar and sugar based products  Fish and seafood ● Beverages Sectors:  Wines  Beer  Spirits  Mineral water  Soft drinks 15

16. Meat Products ● Main meat products: pork, poultry and beef ● Major producing countries: Spain, Netherlands and Germany ● The EU meat industry is weak:  Non-European countries such as Brazil and Argentina supply cheaper meat products. ● Source: Business Monitor International 16

17. Trade in Meat Products ● The EU imports 46.4% of total world exports ● EU imports grew by approx. 32% over the period 2005-2009 ● Fastest growing EU markets include:  Poland (41%)  Czech Republic (21%)  Netherlands (15%) ● T&T’s fastest growing exports:  Boneless bovine cuts  Swine carcasses  Fresh, chilled or frozen fowls ● Challenges:  Trade barriers  Sanitary protection laws  Outbreaks of animal disease 17

18. Processed Fruits and Vegetables ● Accounts for more than 50% of EU consumption. ● This sector has great potential for foreign companies - the EU’s supply is insufficient. ● Major products demanded include:  Canned and frozen vegetables  Fruit juices  Fruit preparations  Jams and jellies  Potato products  Canned vegetables 18

19. Trade in Processed Fruits and Vegetables ● The EU imports 50.2% of total world exports for vegetable, fruit, nuts etc ● T&T presently exports these products to:  Netherlands  France  UK  Germany  Italy 19

20. Fruit and Vegetable Exports from T&T ● Main products:  Orange Juice  Mixed Juices 20

21. Dairy Products ● The EU produces mainly for the domestic market ● Major producers – Austria, Italy, France ● EU exports includes:  Milk powder  Cheese  Yoghurt  Butter  Ice-cream ● Increasing trends towards:  Low-fat alternatives e.g. skimmed milk  Single serving packages  Marketing of health benefits 21

22. Trade in Dairy Products ● EU imports of dairy products grew by 27.6% per year (2005 – 2009)  Expected to reach 57.9% ● T&T currently exports:  Milk and Cream  To France and Italy ● Items of interest include:  Cheese and curd  Milk and cream 22

23. Sugar based products ● In the EU, sugar manufactured from beet is an input for candy. ● Major products include:  Sugar confectionery  Chocolate confectionery  Bakery wares ● Emphasis on natural and artificial sweeteners 23

24. Trade in Sugar Based Products ● The EU imports 35.1% of the world's sugar based products ● T&T exports:  Sweetened and unsweetened biscuits  Bread and cakes ● Items of interest include:  Chewing gum  Sugar confectionery (candy)  Chocolate 24

25. 25 T&T’s Sugar Industry ● Sugar and sugar confectionery had the third highest export value in 2006: $42M  Spike in global sugar prices ● SMCL ceased operations in 2007  Shut down in 2010

26. 26 T&T’s Exports of Sugar Based Products

27. 27 Cocoa and Cocoa Preparations ● Chocolate and other food preparations  EU world imports: $4 billion+ per year  T&T world exports: $6 million per year  T&T exports to the EU: $465, 000 per year ● Cocoa Beans  EU world imports: $3 billion per year  T&T world exports: $3 million per year  T&T exports to the EU: $1 million

28. 28 Fish and Seafood ● Main sub-sectors are:  Fresh products  Frozen foods and  Canned fish/shellfish ● Third world countries can supply frozen/canned products extremely cheaply. ● Preferred species based on tradition of particular countries/regions. ● The EU imports the raw fish and shellfish and then processes it further into convenience food for consumption.

29. 29 Trade in Fish and Seafood ● Top EU suppliers:  Spain  Belgium  France ● T&T currently exports to:  United Kingdom  Netherlands ● Potential Products:  Fillets  Crustaceans  Sardines  Frozen fish meat, tunas (yellow fin and big eye)

30. 30 Fish, crustaceans, molluscs nes ● EU imported approximately $2 billion per year in whole fresh fish  2 nd highest import value for EU ● T&T exported average of $3.7 million per year to the rest of the world  An average of $12,000 per year goes to the EU

31. 31Beverages ● The EU exports:  ¼ of the world’s alcohol  More than ½ of the world's wine  Mineral water  Soft drinks World leaders in the beer market include:  Belgium  The United Kingdom  Netherlands  Denmark Wine production remains fragmented according to regions throughout Europe The key to success in the beverage industry is  Strong branding  Wide product range  New products and innovation

32. 32 Trade in Beverages ● The EU imports 45.9% of the world’s beverages exports ● T&T currently exports to:  Netherlands  France  UK ● Export Products for T&T:  Orange, Grapefruit and Pineapple juices  Rum  Bitters

33. 33 Beverages, spirits and vinegar ● Valuable products:  undenatured ethyl alcohol  rum and tafia  beer made from malt ● Further opportunities:  non-alcoholic beverages nes excluding fruit and vegetable juices

34. Other Potential Exports 34

35. 35 Animal, Vegetable Fats and Oils ● The EU imports 33.3% of world exports ● T&T currently exports to:  UK  France  Greece ● Growing EU Markets:  Italy  Germany  Netherlands  Spain ● Potential Products:  Margarine  EU world imports: $4 billion/year  T&T world exports: $27 million/year  Coconut Oil  EU world imports: $180 million/year  T&T world exports: $1.5 million/year

36. 36 Edible vegetables and certain roots and tubers ● Specific products include:  Onions  Garlic  Cabbages  Peas / Lentils  Peppers  Potatoes ● Edible fruits, nuts, citrus etc  Potential market: Germany ● T&T’s main exports:  Paw paws  Melons  Coconuts

37. 37 Coffee, tea mate and spices ● Market Dynamics:  Main importers include: Belgium, Germany and the Netherlands  Fastest growing markets: France (17%), Italy (16%), United Kingdom (12%) ● Tobacco and manufactured tobacco substitutes  TT currently exports to Greece  Potential markets include Italy, Germany and Belgium ● T&T can export to the EU:  Coffee  Green tea  Black tea  Pepper  Cumin seeds  Cigarettes containing tobacco

38. 38 Miscellaneous edible preparations ● Current Export Products:  Sauces  Food preparation  Tomato ketchup,  Ice cream  Baking powder ● Current Export Markets:  France  UK  Bulgaria  Germany  Greece  Italy  Netherlands Potential Market: Spain

39. 39 Miscellaneous edible preparations ● Specific products:  Sauces  Preparations,  Mixed condiments  Mixed seasoning products  Tomato ketchup

40. CONCLUSIONS 40

41. 41 Overall Look at the Trends

42. 42 Illustration of the Trends

43. 43Conclusions ● The CARIFORUM-EC Economic Partnership Agreement can help facilitate exports ● Domestic market size should not influence production levels ● Take advantage of the benefits of Economies of Scale:  Maximize production/ Use up excess capacity  Use this opportunity to invest and expand ● EXPORT to the EU!!!

44. QUESTIONS? 44

45. THANK YOU! Contacts Ms. Trudy Lewis Senior Trade Specialist Level 14 Nicholas Tower Tel: 623-2931/4 Ext 2113 Email: lewist@gov.ttlewist@gov.tt Website: www.tradeind.gov.tt www.tradeind.gov.tt Ms. Krysta Ramrattan Economist I Level 14 Nicholas Tower Tel: 623-2931/4 Ext. 2100 Email: ramrattank@gov.ttramrattank@gov.tt 45