A Fresh Look at Global Fruit Trade. Richard Owen, Produce Marketing Association

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1 A Fresh Look at Global Fruit Trade Richard Owen, Produce Marketing Association 9 September 2015

2 About PMA Established in ,400 member companies 40 countries around the world PMA s Mission To connect, inform and deliver business solutions that enhance members prosperity

3 PMA s Members Cover the Global Supply Chain Retailers Fruitday.com, Walmart, CR Vanguard, Shoprite Importers/Exporters Golden Wing Mau, Lantao Grower/Shippers Joyvio, Zespri, Dole, Chiquita, Sunkist Distributors/Wholesalers/Foodservice - Sysco Logistics Maersk Packaging/Service Companies CHEP Input Suppliers Syngenta, Monsanto, DuPont

4 PMA Global Portfolio Defines Differentiation

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6 Total World Trade Agricultural Products In US $ Billions $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Source: Euromonitor International 2013 is a projection based on partial year results.

7 China s Production of Food & Agriculture Products and World Rank

8 Top Vegetable Producing Countries Country Production China 146,902,838 m/t 2 India 29,117,400 m/t 3 Vietnam 6,600,000 m/t 4 Philippines 4,400,000 m/t 5 Nigeria 4,285,000 m/t Source: FAOSTAT data 2007

9 Is China the Largest Vegetable Exporter? No it s the Netherlands! followed by Mexico, Spain, then China and the U.S.

10 Top Fruit Producing Countries Rank Crop Production (tons) 1 China 90,891,740 2 India 51,843,133 3 Brazil 39,449,990 4 USA 28,714,872 5 Italy 19,858,564 6 Mexico 16,551,020 7 Spain 16,319,719 Source: FAOSTAT data 2007

11 Is China the Largest Fruit Exporter? No it s Spain! followed by Ecuador and the U.S.

12 Asia Pacific consumes most of world s fresh food Eastern Europe 6% Western Europe 8% Middle East and Africa 8% Latin America 8% 2010 World Fresh Food Consumption by Region North America 5% Asia Pacific 65% Australasia 0% Asia Pacific Latin America Middle East and Africa Western Europe Eastern Europe North America Australasia Global consumption of fresh foods reached 1.85 billion tonnes in Asia Pacific consumed 65% of the global total and, on a per capita basis, 16% more than those in North America. Source: Euromonitor

13 Asia Pacific the key driver of fresh food growth Western Europe, 2.7% Eastern Europe, 4.8% Middle East & Africa, 5.3% Latin America, 6.2% Percent of Global Growth to 2015 by Volume North America, 2.4% Asia Pacific, 78.5% Asia Pacific Latin America Middle East and Africa Eastern Europe Western Europe North America Global consumption of fresh foods is expected to reach 2.2 billion tonnes by 2015 on growth of 17%. Asia Pacific expected to be 78.5% of the total global increase. Source: Euromonitor

14 Flat Global Retail Economy US Retail = LUKEWARM Slightly accelerating consumer economy. European Union Retail = FLAT TO DECLINE Continued retail contraction, higher taxes, and slowed spending. Russia Retail = UP Strong oil prices result in growth a retail. China Retail = UP the earthquake. Disposable incomes are increasing India Retail = CLOUDY Fighting inflation. Japan Retail = FLAT TO SLIGHT DECLINE Rebuilding economic production from Brazil Retail = UP Continued growth of consumer credit South Africa Retail = LUKEWARM to FLAT Fighting inflation Australia Retail = LUKEWARM to FLAT Continued price pressure at retail Booz & Co 14

15 Modern Retailing - Asia China Hypermarkets sales growth slows due to saturation o Food, especially fresh produce and meat, is a traffic driver Supermarkets registered a 10% increase in sales in 2013 and account for a 47% share of grocery retail sales. Fruit and vegetable share in supermarkets is 35%. Convenience stores growth gathers speed Asia Pacific (outside of China) Strong expansion of Hypermarkets accompanied by urbanization o Driven by local retailers, which have become more efficient (ex: China Resources) and focused on second-tier cities o Malaysia o Thailand o Indonesia 15

16 Modern Retailing - Direct Sourcing China Growing numbers of retailers looking for direct sourcing Addresses consumers concerns about food safety Reduce costs / potential improvement of quality 16

17 PMA Fresh Connections: China 17 March 2016 Westin Bund City Centre Shanghai

18 Thank you Richard Owen, Vice President, Global Business Development Produce Marketing Association Web: