Entering the EU Market: Horticultural Products

Transcription

1 Entering the EU Market: Horticultural Products Mary ADZANYO December 2006 Workshop on Capacity Building for the Strategic Development of Agricultural Value Chains in Sub- Saharan Africa Palm Beach Hotel, Ouagadougou, Burkina Faso

2 Ahold Albert Heijn opens first store International group of local retail and food service operators that do business under their own brand names, with headquarters in the Netherlands Primarily active in the United States and Europe Over 200,000 associates (full-time equivalent) Millions of customers are served each week Multi-channel, multi-format > 9,000 supermarkets, hypermarkets & specialty stores Food service E-commerce 27 countries, 4 continents 2

3 Ahold in Africa Ahold Sustainable Assistance Project: in Ghana Part of Ahold Corporate Social Responsibility Program Goal: To build sustainable business relationships with producers and manufacturers in the developing world Ahold uses its expertise in the area of supply chain management to support producers with exporting their products Mostly fruits and vegetables Also Shelf stable products like tuna, shea butter, cashew and macadamia nuts From Ahold ASAP, we now have Ahold Sustainable Trade Development program 3

4 Where? GHANA: ACCRA SOUTH AFRICA: JOHANNESBURG 4

5 EU Market Trends in F&V Per capita consumption of fresh fruits and vegetables has increased steadily since the early 1980s. This increase resulted from shifts in consumer lifestyles and purchasing patterns, with greater emphasis on healthier diets, consistent quality, and value-added services, such as, pre-cut salad mixes and prepared meals for at-home consumption Consumers have become more discriminating in their purchases, with price and quality becoming more important in their purchase decision Consumers are demanding: Quality = Reliable brands Convenience = location, assortment, service Health Safety Know where it comes from, how it is made Sustainability 5

6 Requirements for Entering the EU Market For Fresh produce EurepGAP Plant Health/Phytosanitary Requirements: sanitation practices to avoid foodborne illness and maintain food safety Environmentally responsible production practices Pesticide residue regulation: MRLs Traceability Labelling Worker Treatment Additional for Value Added Produce Global Food Safety Initiative (Initiated by global top 40 retailers = >80% of global organized retail sales) Global Food Safety Standards: BRC Technical Standard version 4 SQF 2000 (June 2006) & SQF 1000 (January 2006) IFS Version 4+ NZ GAP (July 2006) Dutch HACCP* Farm-to-Fork Approach: HACCP based 6

7 Requirements for Entering the EU Market Right Quality/ Maturity Right size, colour, shape, ripeness Appropriate presentation, packing & label appropriate stacking/palleting, right Temp, RH Temperature & RH control Supplier Assembling Processing Packaging Labelling Transporting Inspecting Finishing Distribution Sourcing Conditioning Packing Handling Delivery GAP Packhouse with grading lines, skilled labour Skilled labour, right packages Appropriate & reliable transport logistics 7

8 Packaging Sells cartons should be: strong enough to withstand stacking and high humidity environments properly ventilated 4.0 kg net mango weight (e.g. mango) visually attractive NB: Buyers do form opinions about contents based on carton appearance 8

9 Product Pyramid Revised: Compliance and Differentiation Product Buying Decision Hygiene Factors: Compliance Broader Societal Issues Product Quality & Social Accountibility Food Safety & Availability Choice of Store / Brand: Differentiation If the quality is the same we want social accountable products No longer relevant for consumer decision 9

10 Selling to Multiple Chains Consistent supplies of volume Top quality produce + Sustained quality standard Ready or near ready-to-eat (when received in shop) High visual appearance Cold Chain management Technical Requirements traceability, bar coding, RFID Increasing demand for Fairtrade & Organic produce 10

11 Selling to Wholesalers Higher volumes may be required Consistent supply of right volume and quality at the right time Market exist for a whole range of sizes e.g. for mangoes:

12 Working with Ahold ABC is backbone of sourcing A = Attractive New products B = Better Quality products C = Cheaper products Right Certifications Consistency in supply of right quality& quantity at the right time quality includes food safety, consumer health, and sustainable production with care for the environment, animals and human beings Increasing demand for Fairtrade and Organic produce purpose of Fairtrade is to help disadvantaged farmers acquire and retain export markets more expensive fruit, but consumers willing to pay a premium to ensure better wages and social conditions to rural poor Transport: sea-transport preferred when possible 12

13 Some Challenges we have faced ASAP spent a lot of time supporting small scale processes at the beginning of the product chain (capacity building for farmers, checking out packaging and cooling systems etc: not Ahold s field of expertise)... need to work with development organizations Low volumes, poor produce quality Certification limitations Poor produce arrival quality postharvest decay fruit shriveling, mechanical injury, bruising Improper packaging Transportation temperature abuse low relative humidity restricted air flow 13

14 What African suppliers need to do to address challenges Produce what the customer wants Need for a highly determined effort to identify market opportunities before production is established, including assessment of specific market outlets, supply needs, performance requirements, and price expectations. Improved seed varieties & product diversification Invest heavily to meet the commercial market requirements for customized grading, consistent quality, pre-cooling & cold chain management, packaging, supply consolidation, and delivery scheduling. Market planning is a prerequisite for success 14

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