FoodTechHolland Seminar on the opportunities & challenges for Dutch (semi-) processed food companies. 12 May 2015 Larive International, Zeist

Transcription

1 FoodTechHolland Seminar on the opportunities & challenges for Dutch (semi-) processed food companies. 12 May 2015 Larive International, Zeist

2 Programme 14:30-15:00 Welcome with Tea & Coffee 15:00-15:10 Welcome and opening remarks by Wouter Verhey, agricultural Counselor India & Sri Lanka at the Embassy of the Netherlands in New Delhi 15:10-15:40 The market for Processed food in India by Devangshu Dutta of Third Eyesight, India 15:40-16:00 Entrepreneurial challenges in the food sector in India by Peter Uyttewaal, Partner India of Larive International 16:00-16:15 Tea & Coffee break 16:15-16:25 The characteristics and strengths of the Dutch Food and Grocery Industry by Sekhar Lahiri of FNLI 16:25-16:45 Discovering the Pot of Gold in India by Sumit Saran of Future Consumer Enterprise Limited, India 16:45-18:00 Network reception

3 1. Welcome Wouter Verhey Counsellor for Agriculture, Nature and Food Quality India and Sri Lanka. Resident in New Delhi Previous positions (a.o.): Policy Coordinator European Agricultural Policy and Food Security of the Ministry of Economic Affairs. Agriculture Counsellor in Warsaw Agriculture Counsellor in Mexico

4 2. New government The Modi government elected in May 2014 India has a government in place with a powerful mandate. Majority of Modi s government in the Lok Sabha (Indian parliament), but not in Rajya Sabha (Indian Senate). PM Modi shows himself a no-nonsense pro-business reformer, who tries to reform the Indian bureaucratic government. Modi communicates very effective towards the community and tries to explain what the government tries to reach and undertakes. The economic agenda is getting shaped. First reforms are implemented, inflation is lowering, and economic growth is improving.

5 2. New government Examples of reforms are decreasing the number of subsidies, liberalizing FDI, implementing one Goods and Services Tax (GST) for the whole country, and decreasing the corporate tax from 30% to 25%. Modi positions himself as an international strong and decisive leader. He launched some big programs as Make in India, Clean India, Financial Inclusion, Digital India and the 100 Smart Cities-initiative. With the Make in India campaign Modi wants to increase industrial production, with the aim to create employment for its young and fast growing population. Goal is also to move up from 142 place to Top-50 of Ease of Doing Business-index of World Bank list. The government puts a lot of effort on infrastructure, - crucial for the success of de Make in India campaign. Another focus is renewable energy-sector.

6 3. Economic trends India is a fast growing market. Belongs to the BRICS countries The GDP of India has increased from 949 billion in 2006 to billion in In 2014 and 2015 the economic growth was 7% The GDP per capita has grown from US $ 839 in 2006 to US $ in Higher than Indonesia (US $ 3.509) but lower than China (US $ 6.958). Foreign trade of India is growing. Total import in 2006 was US $ 236 billion; in 2013 this figure was US $ 591 billion Total export grew from US $ 190 billion (2006) to US $ 487 billion (2013). India is our one but largest trading partner in the Asiatic region

7 4. Agriculture Some figures India is an agricultural powerhouse. Ranks 5 th within the world's largest agricultural producers Globally 2 nd largest producer of fruits and vegetables (largest producer of mango, banana, coconut, cashew, papaya and pomegranate; and the largest producer and exporter of spices.) 1 st in milk production, accounting 17% of global production 2 nd in fish production, contributing 5.4% of global production 3 rd in egg and 5 th largest producer of poultry meat 5 th in meat production, accounting for 3% of global meat production

8 4.1 Indian export Total exports of Indian agricultural and processed food products US$ 14.5 billion (approx.) in Agriculture accounts 14% of gross domestic product (GDP) 5% of total exports from India.

9 4.2 Export & Import figures Total import (NL): 4.5 billion Agricultural import 460 million (ca 10%) Main agri products (NL import): Grapes Nuts (cashew) Rice Veg. fats & oils Processed fruit Tabaco Total export (NL): 50 million 60 million 40 million 40 million 30 million 30 million 1.6 billion Agricultural export 79 million (ca 5%) Main agri export products: Other sugars Food preparations Enzymes Chocolate Seeds 19 million 8 million 7 million 6 million 6 million

10 5. Opportunities and challenges India wants to double their food production by 2020 in order to avoid crisis in the agrarian sector. Natural Resources Shrinking land base Dwindling water resources Extreme weather events Farm Operations Shortage of farm labor Declining youth participation in agriculture Inadequate mechanization Inadequate access to finance Lack of skills and knowledge among Indian farmers. Poor infrastructure, i.e. poor rural roads, inadequate irrigation system, un-organized retail, lack of cold storage, cause between 30% and 40% losses and wastage of farmer s produce. Food distribution system is highly inefficient. Movement of agricultural produce within India is heavily regulated, with inter-state and even inter-district are restricted.

11 6. Food market Estimated size in 2012 Total Retail (Food and Non- Food) $450 Billion Organized Retail (Food and Non-Food) $ 27 Billion (6% of total retail sales) Food Retail (Modern and Traditional) $270 Billion (60% of total retail sales) Modern Food Retail $ 5.4 Billion (2% of total food retail sales) India's retailing industry is essentially owner manned small shops. Opportunities India will surpass China to become world's most populous nation Population crossing 1.45 billion mark around % of total population of approx billion is middle class and Food consumption habit is changing rapidly due to increase in their disposable income demand quality and variety of food.

12 Economic mission This seminar will provide insight into the (semi-) processed food sector in India. To explore further potential of the Indian market we also recommend to participate in the economic mission headed by Dutch Prime Minister Rutte, State Secretary Dijksma and Minister Ploumen which is scheduled for the 4 th until 6 th of June For more information on the economic mission visit:

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