Changing consumers trend by Iphigenia Pavlou, Cyprus University of Technology

Transcription

1 NEWSLETTER N. 5 / Changing consumers trend by Iphigenia Pavlou, Cyprus University of Technology Increased competition, food scares and new consumer trends are among the key challenges facing the food and beverage industry in Europe. While these challenges pose a threat to some companies they can be an expansion opportunity for others. In response to these new challenges, food companies are improving competitiveness by restructuring, and intensifying the fight for market share through product differentiation and/or the development of new food products. Such fundamental changes and new priorities in the food industry also greatly affect local communities and society as a whole when local unemployment rises because processing plants are closed or when new healthy food products are developed. Thus, food and beverage companies do not merely battle for market share in their own sector; they also operate in a larger socio-economic context in which their strategic choices affect the welfare of many Europeans. Consumers are moving towards purchases of healthier foods, which presents a tremendous opportunity for companies that are willing to enhance their consumer products nutritional transparency. Such companies that use healthy ingredients and are willing to share nutritional information on the front-of-packaging could strengthen their customer base amongst a growing faction of consumers. Deloitte's new 2011 Consumer Food and Product Insight Survey Part Two ( ries/consumerproducts/904a05458af11310vgnvcm a5 6f00aRCRD.htm) showed that nearly 9 in 10 respondents (87.7%) believe prices in food stores are on the upswing, and almost three-quarters (74%) believe that the size of some packaged goods is smaller. Consumers are also taking note of the front-of-the package nutrition information to assist them in making healthier purchasing decisions, according to the survey. More than 3 in 4 respondents (76.2%) agree or somewhat agree they are looking for healthier food options when they shop, and nearly two-thirds of those surveyed (64.8%) agree or somewhat agree that food retailers are starting to sell more locally produced fruits and vegetables.

2 2 In Western Europe and the USA the consumption of organic products has increased substantially over the last ten years. However, the overall market share of organic food still remains low. Whilst most consumers have a positive attitude towards buying organic products (Saba and Messina, 2003), they are often constrained by important barriers. One of these barriers is uncertainty as to the characteristics of organic food. The strongest motivations for consuming organic vegetables are that they are produced without synthetic pesticides, are better for the environment, healthier, of higher quality and taste better. The strongest perceived barriers are overly high prices and lack of availability (Aertsens, et al., 2011). Another changing trend in the food industry is the one related to food safety. During the last few years, food safety has been among the top issues of the political agenda in most European countries. Contributing factors include the BSE (better know as mad cow disease) crisis in 1996 and the outbreak of foot and mouth disease in 2001, which caused many consumers to lose confidence in the safety of beef. The recent spread of avian flu into Europe also contributed to consumer concern. Other, more local, food safety concerns have prompted national and international authorities to take steps to reduce risks of food-related ailments. Bacteria such as salmonella, campylobacter, and E. coli, which can cause serious illness, are most often acquired through contaminated food. In 2004, zoonotic diseases affected more than 380,000 EU citizens. Besides the real threats to human health, the health risk might cause consumers to abandon the type of food known to be a source of the disease. For example, following the discovery of birds with avian flu in Italy in January 2006, consumption of poultry dropped by 70%, according to the Confederazione Italiana Agricoltori. The expected growth in global as well as local niche markets represents an opportunity for small companies that can exploit communications and logistic technologies to reach geographically dispersed consumers. The emphasis on food safety and on nutritional value increases the need for research, development and documentation and, therefore, for new types of competencies in the industry. Sources: Aertsens, et al., The influence of subjective and objective knowledge on attitude, motivations and consumption of organic food. British Food Journal Vol. 113 No. 11, 2011 pp Saba, A. and Messina, F Attitudes towards organic foods and risk/benefit perception associated with pesticides. Food Quality and Preference Vol. 14, pp

3 3 Organic Farming in Cyprus Despite the fact that Cyprus offers an excellent setting for the production of organic foods, its potential has only been partially exploited. This may be attributed to the lack of adequate local research to support and encourage farmers, and the desire for quick profit on the part of most farmers. As a result, organic farming is practiced by those farmers who could engage in this type of farming without the need for financial support from the government. Organic farming in Cyprus started in 1988 with two farmers who produced several kinds of vegetables (including potatoes and cereals) and livestock products (meat and dairy products). During the 1990s, both the area of land under organic agriculture and the number of farmers involved increased, albeit at a slow rate. New products were also added to the list if organics, such as desert grapes, carob, wine, herbs, pulses, and others. Organic production has been growing more rapidly after the year 2001, when Law 160 (I) of 2001 was enacted. Law 160 (I) incorporated the provisions of EU Regulation 2092/91. At present, the area of Cyprus under organic agriculture is hectares (0.87% of land area). There are 225 organic farms. Cyprus stills ranks among the lowest in the EU-27 ranking of area under organic production. This situation is expected to change as a result of the inclusion of measures to support organic farming in the new Agricultural Development Plan. It should also be noted that younger, more energetic, and betterinformed farmers are expected to become the next generation of organic farmers. The Cyprus Organic Producers Association (Syndesmos Viokalliergiton Kyprou) was founded in Its members produce wine, olive oil, corn, dairy products meat and vegetables. Aromatic herbs, carobs and olive oil offer the greatest potential for organic production, as they grow naturally in the island's climate. Organic wine also has good potential in areas where the land is not under intensive cultivation. Towards the promotion of Organic Farming the Section has contributed to the implementation of the national Law on Organic Farming 227(I)/2004, which is fully harmonized with Regulation (EC) 2092/91. In 2008, the section continued to educate growers on Organic Farming through lectures and seminars. The Section has significantly contributed for the preparation of national position in the discussion of Draft Implementing Regulations about the revision of the Regulation (EC) 2092/91. In 2008, the area cultivated according to the Organic Farming law had exceeded hectares that corresponds to the 2.05% of the total agricultural area, with more than 560 growers producing organic products.

4 4 Five Good Reasons to buy Organic Produce 1. To Protect future generations The average child receives four times more exposure than an adult to at least eight widely used cancer-causing pesticides that leave traces in food items. The food choices you make now will have an impact on your child's health in future. We can all protect future generations by buying organic food. 2. To protect the Environment Organic farming systems work in harmony with nature, keeping harmful chemicals out of land, water, and air. Organic farming helps in creating a healthy environment rich in wildlife, and fertile soil with more nutrients. Therefore, by buying organic products, you help in protecting the environment 3. To look after your health Food quality, nutrition, and human health are inextricably linked. Pesticides are poisons designed to kill living organisms, and can also be harmful; to humans. Pesticides that are sprayed on crops and vegetables can end up in your plate. The best way to keep chemicals off your plate is to buy organic products. This is an integral part of leading a healthy lifestyle. 4. To taste better flavours There is a good reason why many chefs use organic foods in their recipes: they taste better! Organic farming starts with the nourishment of the soil, which eventually leads to the nourishment of the plant and potentially more tasty food in our plates. 5. To support your local farmers Most of the local organic farms are small, independently owned and family-operated. They are the last survival option left for many families involved in agriculture who constitute the backbone of small communities. Help your local small farmers by buying organic products. This in turn could help to preserve many small communities around the world, an outcome that will be in everyone's interest. Source: Cyprus Food & Drinks

5 5 Spoon sweets - A gesture of Cypriot Hospitality by Savvas Malliotis, FIlagrotiki Consulting A traditional and delightful Cypriot custom is the offering of spoon sweets to guests as a symbol of hospitality. They are called spoon sweets because the usual serving size is a well-filled teaspoon. Spoon sweets are popular both in Cyprus and in Greece, usually served in a small dish or bowl, accompanied with Greek coffee and a glass of cold water. In the past, spoon sweets were homemade in small quantities. The art of making spoon sweets was passed from grandmothers down to their daughters and the younger girls, and it was a necessary attribute in order to be a successful housewife. headed by village women who are committed to the preservation of traditional recipes and have developed the skills of commercializing the production of spoon sweets. The company of Mrs Niki Agathocleous, who carries with her a twenty year experience in making sweets using traditional recipes, is today among the leading traditional sweets processors on the island. She is supported by a work force of 15 local women all experienced in the art of processing fruit for making a broad range of preserved traditional sweets. The processing unit is based at the picturesque village of Agros, in the Pitsilia region, and its operations comply with all European standards of hygiene verified by the HACCP certification. Today, few women have the time and knowhow to make their own spoon sweets. Luckily however, this art is still alive, due to some quality oriented processors who devote the time and effort needed to continue the tradition. These rather small in size, village enterprises make up the spoon sweets industry, supplying the local and export markets. These enterprises are The company is a leader in the production of traditional sweets and many of its products are stocked in shops and supermarkets all around Cyprus but the full range is available at the company s own shop at Agros village. Exports are also a significant part of NIKI s sweets with its main markets being the UK, France, the USA, Australia and Japan. Mrs Niki welcomes visitors at the company s premises where guided tours are daily available introducing them to the art of traditional sweets making. We particularly suggest the unique (to Agros village) rose pedals spoon sweet which is made from locally harvested, hand picked, wild rose flowers. Loukoumia Yeroskipou Just east of Paphos and nearby the mythical "Petra tou Romiou" lies the village of Yeroskipos, a place with a history that dates back to ancient times. Yeroskipos, deriving from the Greek words Ieros Kipos meaning sacred garden, is believed to have been a place with extensive beautiful gardens, in ancient times, dedicated to the Goddess Aphrodite. Apart from its evident

6 6 historical value, the village of Yeroskipou is renowned for a sweet and tasty product, the Yeroskipos loukoumi. The simple and natural ingredients that make up lokoumia consist of sugar, corn flour, starch, water, almonds and different fruit aromas. The original lokoumia were made with rose flavor by boiling fragrant rose petals found locally in the fields and collecting the condensed moisture. The ingredients are mixed together in a large cauldron of boiled water, where they are stirred continuously for a few hours until the mixture becomes smooth and creamy. After flavoring, the blend is poured into wooden containers where it is left overnight to cool down completely. The final task of cutting the slabs into sugary cubes and packing them in retail boxes is the most labor-consuming, intensive and costly job in the whole process. Yeroskipos loukoumi is the first traditional food product of Cyprus to receive an approval as a Product of Geographic Indication under the EU regulations. It also holds another world record; that of the Guinness World record of the biggest loukoumi ever made. This was achieved on Sunday October 17 of 2004 in the presence of officials from the Guinness World of Records, by Aphrodite Delights in collaboration with other confectioners, who managed to produce 2,543kg. Among the leading firms that make lokoumia is "APHRODITE YEROSKIPOS DELIGHTS LTD". A newly built modern factory has been in operation since the beginning of 2007, located in close proximity to the original premises, in the Yeroskipos village. The production was adjusted to new technology, which has proven to improve quality, reduce cost and retain hygiene standards. Traditional Meat Products A truly Cypriot gastronomic setting combines the gourmet plates of smoked traditional meat snacks, halloumi or kefalotiri cheese and slit olives (tsakkistes) served along with a zivania shot or a glass of Cyprus dry red wine. These bits of food that are today used as traditional appetizers, were for centuries consumed as important constituents of the Cypriot farmers breakfast or lunch. Throughout the centuries, traditional processing of animal products for the purpose of satisfying basic food requirements was an important activity in Cypriot rural communities. In the absence of any refrigeration facilities, the process had to ensure that the end products could be kept for long periods in cool and dark home cellars. Each rural family had to raise its own, domestic animals which were destined to meet the family s seasonal meat requirements. The pork was slaughtered between Christmas and Easter, an activity that was considered an important event in rural life and was undertaken by the family, relatives and friends, who at the end of the day celebrated with food and wine. All parts of the animal were used for making a diverse range of meat products and depending on the kind of product to be made, the appropriate animal part had to be chosen for achieving the best result. Meat around the backbone was used for making "Lountza", meat from the front legs was transformed into minced meat which was then mixed with various spices and used for making "loukanika" (sausages), meat from the thighs was suitable for chiromeri, and meat under the belly was made into "posirti". The fat of the animal was saved into special cans and used for

7 7 frying or for spreading on bread. The leftovers from the head and the legs were the main ingredients for zalatina, a traditional meat paste. Other products came from goat meat as well. The main products made from goat meat are called Apokti and Tsamarela. The best quality meat for the preparation of these products is the one that comes from young female goats at the age of two or three years. The old traditional method of production and preservation has been adopted, nearly unchanged by the current generation of meat processors, thus ensuring that the nutritional, healthy and tasteful characteristics are well maintained. The traditional method is based on red wine as the major preserving ingredient giving an end product that is free from artificial preservatives or product alterations that are commonly practiced to prolong the product s shelf life. A typical meat product company is that of Mr. George Kyriakides, which began operation in 1961, and now located at the village of Kyperounda in a new and modern unit. The processing unit operates since 2005 under strict hygienic controls in a HACCP certified environment, currently offering 4 traditional smoked meat products, using the finest ingredients: Sausages, Hiromeri, Posirti and Lountza, while it is also preparing to launch Pastourma (beef product). The company is eager to expand its market abroad and is currently holding discussions with importers in a number of European countries. Another typical meat product company is that of the Kafkalia family. Mr Chrisostomos started the business back in 1978 at his home village, Agros, as a small workshop serving the nearby communities with traditional processed meat products. Founder s daughters are now managing a growing business with an island-wide distribution network supplying a broad range of Pitsilia traditional meat products. Processing methods which typically involve smoking meat products and maturing in wine remain unaltered, practised the very same way they were inherited from their parents and grandparents. Kafkalia meat processing unit at Agros village today operates under HACCP and ISO 9001 certifications and is fully approved by the Cyprus Authorities for producing quality traditional meat products. All the above-mentioned companies were among those who participated in the focus group organized by Cyprus University of Technology, as part of the PACMAn project, on the 12 th of January 2012.

8 8 NEWS AND EVENTS Cypriot traditional occupations Cyprus Youth Club Organization supported by the Cyprus University of Technology on the 8th of October 2011 organized a unique event-exhibition of the Cypriot traditional occupations. The event took place in Nicosia were participants from all over Cyprus attended presenting their crafts while showing to the public who attended how those crafts were made. Also, the people had the opportunity to try traditional delights, made on the spot, such as halloumi, grape must (pallouze), pasta with carob cyrub etc. for free. During the event there was also a stand with PACMAN posters and leaflets where members of our staff were handing out to the guests informing them about the project. 17th Cyprus Agricultural Industry Exhibition Cyprus University of Technology participated in the 17th Cyprus Agricultural Industry Exhibition in Nicosia from 19th of October - 23rd of October aiming at promoting PACMAN project. The exhibition was focused on the promotion and internalization of Cypriot agricultural products. Also, the exhibition emphasised on the development of agriculture by introducing advanced technologies for farming in terms of farm machinery, tools and equipments and different materials used for crop production like seeds, fertilizers and pesticides. It will also focus on various technologies of food processing to enhance the variety of food products and retain their nutrients and freshness for longer time.

9 9 PACMAn STATE OF THE ART As far as the Component 3.2 is concerned, by the 20th of December 2011, each partner filled in and delivered to the leader the final report on quantitative and qualitative indicators for each segments identified. The overall analysis on the Report on key factors of MED agro food clusters will be presented during the next meeting in Avignon. Partners dealt with the organization of the focus group which have been carried out in January. The objectives of Component 3.2 were to analyse each region's / country's agrofood segments by applying the methodology proposed in Component 3.1 and select 3 of them based on their performance / capacities on internationalisation, networking and innovation. PACMAn partners chose each 3 segments and presented their choices during the meeting in Marvao. The next step was the organisation of Focus Groups by each partner in order to refine the results of their choices with the participation of relevant stakeholders. The objectives of the Focus Group are: to give a feedback on the adopted segments, and in particular on their capacity of internationalization, innovation and networking, identify and map current state of agro-food main players in the chosen segments, update the analysis carried out in task 3.2 report, identify immediate and long term needs,gather opinions focused on the role that PACMAN project can have on agro-food players activities, such as the generation of ideas for new initiatives. Partners organised their Focus Groups according to the methodology provided by the partner responsible for Component 3.2. Some partners organised 1 Focus Groups per segment, while others organised just one common Focus Group. Participants were stakeholders with interest in each region's / country's chosen segments and included owners from companies active in the field / sector / chosen, local / regional / national government representatives responsible for agro-food policy, trade and / or export associations / unions / agricultural cooperatives representatives, chambers of commerce, local / regional / national development agencies representatives and staff from Universities and / or Research centres with activities in or touching the agro-food sector. In the meeting in Avignon, the partners will share their findings and discuss on the following activities for PACMAn basing on the conclusions of the analysis of the Focus Groups. As far as the Task 3.3 is concerned, component leader InfoMurcia, finalized the final version of the Questionnaire that is now online, so that the partners can test it before the meeting in Avignon by submitting it to at least 20% of companies of each segment. Kilkis Chamber of Commerce and Industry, following the presentation on Task 3.4 during Marvao meeting, issued an updated version of the proposal of Networking Database that takes into consideration the many elements emerged during the meeting. A definitive version of the Database Register is expected before the project meeting in Avignon, where it will be validated by the PPs, so to proceed with getting in touch with the companies.

10 is the first output of the PACMAn operation. Designed as a portal, it is structured in several thematic areas easily and immediately accessible, useful and flexible. The PACMAn portal responds to the aims of the project, through a clear vision of the overall contents of the project, a detailed description of the partnership and updated news and information of ongoing events at European level on the agrofood sector. Visiting you will be able to find the project contacts and the state of the art of the activities and the final products will be downloadable as to inform the users on the project midterm and final results. Find us on FACEBOOK European Union European Regional Development Fund