1. Portuguese Agro-food Sector Isabel Braga da Cruz (knowledge Division | PortugalFoods) Alimentaria & Horexpo Lisbon, 29 th March, 2011

2. Characterisation of Agro-food sector in Portugal over an European context; PortugalFoods Observatory (example) – analysis of food product launches in the Portuguese market; Conclusions Outline:

3. General context: Agro-Food Sector in Europe * Source: CIAA EU Food and Drink industry (2008)

4. Agro-food sector is the biggest industrial sector in Portugal, as well as in Europe; General context: Agro-food sector in Portugal Portuguese Agro-food sector corresponds to 16% of the total transformation industry in Portugal; It represents a turnover of 13.500 M€ (2009); It contributes to 7,6% to GNP. Portuguese Agro-food sector is mostly composed by SME’s, highly dispersed; Major food production is focused on a reduced number of enterprises. Total number of enterprises in food field ranges 11.000; Total number of employees in food field ca. 111.000 Source: FIPA, based on INE data

5. Turnover evolution* General context: Agro-food sector in Portugal Source: FIPA projections for 2008 and 2009, INE data (2003 to 2007) year Turn-over (M€) 13.500 M€

6. Relative weight of the different sub-sectors to the turnover (2009)* General context: Agro-food sector in Portugal PT: Beverages, Meat, and Dairy and the major sub-sectors representing 44% of total turnover * Source: FIPA, based on INE data EU: Beverages, Meat, and Dairy and the major sub-sectors representing 50% of total turnover

7. Distribution (%) of the enterprises by sub-sector General context: Agro-food sector in Portugal Source: FIPA, based on INE data PT: Beverages, meat, oil & fats and dairy

8. Employee distribution, relative weight of the different sub-sectors. General context: Agro-food sector in Portugal Source: FIPA, based on INE data

9. Great majority of the enterprises are of small dimension: 80% of the enterprises has less than 9 employees, representing 9% of total turnover; Highest contribution to turnover (21%) comes from enterprises with a number of employees (10-49); Only 2,8% of the enterprises has more than 50 employees. General context: Agro-food sector in Portugal

10. Source: FIPA, based on INE data Import & Export Agro-food products represent ca. 12% of the total importation in Portugal (6.000 M€ in 2007); Spain and Germany are the biggest players in EU; General context: Agro-food sector in Portugal

11. Source: FIPA, based on INE data R&D investment Agro-food sector traditionally has a reduced investment in R&D, when comparing with other production sectors; R&D investment in Portugal represents 1,2% of GNP; Despite the low investment on R&D, a high intensity and activity on innovation is evident, specially connected with differentiation of food products and processes, according to market trends and consumer demands. General context: Agro-food sector in Portugal

12. General context: Agro-Food Sector in Portugal Over the last decade Portuguese Agro-food sector has been learning how to value their uniqueness towards innovation, reacting to the new challenges of the global market and consumer demands. Over important changes on production units (evolving environment concerns and sustainability issues); By introducing Quality and Safety on their products, through HACCP and several certification processes; By improving communication with consumer (through marketing and label information). How?

13. Observatory approach “Food products in Portugal”

14. Global analysis of new food products launched in Portugal (tracked by the Innovadatabase); Five years period of analysis: 2006 – 2010; Food products detected: 5.111 (products found); Market Analysis: Product Launch Activity Positioning Analysis - Stand-outs & Product Trends Outline

15. Distribution analysis over the last 5 years, reveals a strong increase in food product launches beyond 2007; Slight increase between 2007-2010. Product Launch activity in Portugal

16. Product Launch activity

17. ↗ Market distribution (top 15) Market analysis

18. ↗ Market category (top 10) Market analysis

19. ↗ Positioning Market analysis

20. Conclusions: agro-food sector in Portugal Quality and Safety in parallel with certification, are the basis of whole agro-food scenario; Major trends in food sector, show that consumer demands healthier products, more convenient and of easy preparation; Nowadays is stated that food is seen a new cultural approach, leading to new experiences and learning, beyond the inherent nutrition of food, leading to high opportunities of differentiation in food market and business.

21. Dzięki! Isabel.bcruz@portugalfoods.org Alimentaria & Horexpo Lisbon, 29 th March, 2011