1. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission The Seventh Framework Programme Food, Agriculture and Biotechnology Dr Antonio Di Giulio Head of Unit Unit E.2: Food Quality Directorate E: Biotechnology, Agriculture and Food Directorate-General Research European Commission

2. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Presentation Outline Structure of the industry Trends Innovation & competitiveness FP7

3. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Advanced traditional products Typical products (PDO, PGI including wine) New products (novel, functional, healthy, ready to eat, etc.) Organic food Traditional and local products TOTA L 131 billion €50 billion €88 billion €7 billion €534 billions €810 billion € Source: Eurostat & CIAA Economic significance of the European Food and Drink industry  1.5 % in R&D TOTAL TURNOVER BY PRODUCT (EU 25) The largest manufacturing sector in the EU 25

4. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Importance of SME’s SME’s dominate the food and drink industry Half of the EU production and 62% of the employees of the food and drink industries In Italy 80% of the employees of the food and drink industries are with SME’s Source: CIAA, 2005

5. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission CONSUMPTION. Consumer – Industry* pro-actions CONSUMER NEEDSCONSUMER NEEDS INDUSTRY RESPONSEINDUSTRY RESPONSE *in the food processing and retail sectors Launch of new products New technologies & methods E-commerce Safety Quality Naturalness Trust & confidence Familiarity Honesty New packaging, labelling Advertising Milder processing Quality control Combining tradition, regional gastronomy and industrialisation

6. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Trends in Society (re Food) The function of Food is changing: –what we eat: calories==> “experience” ==> nutrition & health, variety –when we eat: regular meals ==> grazing & snacking –where we eat: in-home ==> out-of-home –with whom we eat: social ==> individual –how we prepare our food: from scratch ==> ready-to-eat + heat & eat Changes in the food chain –A wealth of choice: primary production is year round, global supply –food industry: heat-preserved, frozen, chilled & freshly prepared –importance of retail –importance of out-of-home

7. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Added Value 19701980 1990 2000 Nutritional science successfully linked nutritional habit to health ‘Naturalness’ increasingly important in relation to health / vitality Consumer more quality conscious Speed of product innovation (half-life of product innovation) ‘MAKE’ 10 year 2 year ‘SERVICE’ ‘CARE’ Product Process Improving manufacturing efficiency Batch - continuous. Reduce waste. Foodservice Eating out Snacking Clean label Milder processing 2015 Trends in the Food Industry Source- ETP” Food for Life” 2006

8. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission FOOD INNOVATION. ‘The industry view ’  Lack of qualified personnel (4)  Organizational rigidities (7)  Lack of information on markets (8)  Lack of information on technology (9) BARRIERS TO INNOVATION ECONOMIC FACTORS  Too high innovation costs (1)  Lack of appropriate sources of finance (2)  Excessive perceived economic risks (3) INTERNAL FACTORSOTHER FACTORS  Insufficient flexibility of regulations or standards (5)  Lack of costumer responsiveness to new goods or services (6) Supplier CollectorManufacturerRetailer Consumers

9. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission FOOD INNOVATION. ‘The industry view ’ EFFECTS OF INNOVATION  improved product quality (1)  increased range of products (2)  increased market or market share (4)  increased production capacity (2)  improved production flexibility (5)  reduced labour costs per unit produced (6)  reduced materials and energy consumed per unit produced (9)  met regulations or standards (6)  improved environmental impact or health and safety aspects (8) PRODUCT ORIENTED EFFECTS PROCESS ORIENTED EFFECTS OTHER EFFECTS Supplier CollectorManufacturerRetailer Consumers

10. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission European Technology Platform “Food for Life” - Food Quality & Manu- facturing Food & Health Food Safety Sustainable Food Production Food & Consumer Communication, Training & Technology Transfer Food Chain Management

11. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Plants for the Future –www.epsoweb.org/Catalog/TP/index.htmwww.epsoweb.org/Catalog/TP/index.htm Innovative and Sustainable Use of Forest Resources –www.forestplatform.orgwww.forestplatform.org Global Animal Health –www.europa.eu.int/comm/research/agriculture/index_en.htmlwww.europa.eu.int/comm/research/agriculture/index_en.html Animal Breeding –www.fabretp.orgwww.fabretp.org Food for Life –http://etp.ciaa.be/asp/home.asphttp://etp.ciaa.be/asp/home.asp Sustainable Chemistry –www.cefic.org/www.cefic.org/ Technology Platforms in Food, Agriculture and Biotechnology

12. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission 2. Food, Agriculture and Biotechnology Sustainable production and management of biological resources from land, forest, and aquatic environments Sustainable production and management of biological resources from land, forest, and aquatic environments “Fork to farm”: Food, health and well being Life sciences and biotechnology for sustainable non-food products and processes Life sciences and biotechnology for sustainable non-food products and processes

13. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Activity 1: Sustainable production and management of biological resources from land, forest and aquatic environments: ACTIVTIES “Enabling” research (trans pillar) Micro-organisms; plants; animals; nutrition “-omics”; bioinformatics; systems biology; tools and technologies Sustainable production Agriculture; horticulture; forestry; fisheries; aquaculture Improved crops; plant health; control of pests, disease and other threats Optimised animal health, production and welfare Exploitation of genetics knowledge; breeding, physiology, behaviour Control of infectious diseases; epizootics, zoonoses; management of by-products Building of the KBBE Tools for policy makers in support of community policy Rural and coastal development; International development Socio-economics and cost-benefits. Farming systems, including non-food

14. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Activity 3: Life sciences and biotechnology for sustainable non-food products and processes Improved biomass for energy, Bio-catalysis; new bio-refinery concepts Forestry and forest based products Cleaner processing ©Science 27 January 2006 Vol 311

15. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission CONSUMER NUTRITION TECHNOLOGIES ENVIRONMENT FOOD CHAIN INTEGRITY TOTAL FOOD CHAIN Consumer, societal, industrial and health aspects of food and feed Nutrition, diet related diseases and disorders, including obesity. Innovative food and feed technologies, including packaging Food and feed safety and environmental impact Traceability and chain management Control of the food chain Activity 2: “Fork to farm”- Food, health and well being

16. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Production systems: Agriculture / Fisheries / Aquaculture Processing Organoleptic impact Health and well- being of consumers Nutritional value / digestion / health impacts Safe, high-quality foods Storage / transport / retail Preparation Environment FP7 Sub-Pillar: Fork to Farm Consumers Nutrition Processing Safety Environment

17. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Huge global issues in Nutrition 4bn people affected by malnutrition deserve the chance to develop physically & mentally to get more out of life. 50% of world’s population have blood cholesterol that’s too high. 30% of world’s population have blood pressure that’s too high.

18. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Well-Being/ Appearance Age Add life to years Goal Source: Adapted by ETP” Food for Life”

19. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Conclusions  Collaboration needed to: Protect Consumers interests Increase scale and synergies Promote innovation and competitiveness  Help sectors to turn science into business

20. This presentation shall neither be binding nor construed as constituting a commitment by the European Commission Information EU research: http://europa.eu.int/comm/research http://europa.eu.int/comm/research Seventh Framework Programme: http://europa.eu.int/comm/research/future/index_en.cfm http://europa.eu.int/comm/research/future/index_en.cfm Information on research programmes and projects: http://www.cordis.lu RTD info magazine: http://europa.eu.int/comm/research/rtdinfo/ Information requests: research@cec.eu.int