JB

Posted on by

Opportunities in the EU for US exporters of organic produce

Screenshot 2015-02-12 at 11

The growing market for organic products in the EU offers opportunities for US exporters affecting various kinds of produce, a new report by the US Department of Agriculture says.

The USDA said while trade is generally determined mainly by quality, price and local availability and demand, opportunities for US exporters include:

  • Sweet potatoes: the market for sweet potatoes is growing. EU demand for potato varieties is up. The US is the best year round supplier of sweet potatoes at competitive prices.

  • Fresh vegetables like onions, broccoli and lettuce: especially the UK.

  • Fresh fruit: especially in those countries with no local availability, there is demand for a great variety of fresh fruit from the US. There is seasonal (October through March) demand for apples and pears in northwestern Europe. Demand in the same region is also strong for US citrus (grapefruit and minneola). There is year round demand for fresh, dried, sweetened cranberries and demand continues to grow. Growing demand for other fruits includes grapes, strawberries and cherries.

Trade in organic products between the US and the EU

The report says that from 2011 to 2014, the largest increase in US exports of organic produce to the EU occurred in fresh grapes and reached USD 4.7 million in 2014 (2011: USD 0.8 million). In 2014, the value of US organic grape exports to the EU exceeded the export value of organic apples which used to be the most important US organic export commodity in 2012 and 2013.

Other important US organic export products to the EU after grapes and apples include strawberries, blueberries, peppers, and cauliflowers.

In 2014, most US organic exports to the EU occurred during October (grapes and apples) and November (grapes).

US exports to the EU of organic products which are covered by HS codes (introduced in 2011) reached USD 12.3 million in 2014. This compares to an increase of 77 percent from 2011 to 2014, the USDA said.

us exports organic.png

us top importers eu.png

Figure 2. Top 10 EU countries with the highest organic sales USD per person, 2013 figures

Top 10 EU countries with the highest organic sales USD per person, 20.png

 

Top 10 largest organic markets in the EU, million USD, 2013 figures

Top 10 largest organic markets in the EU, million USD, 2013 figures.png

 

Read “Plenty of opportunities for U.S. organics in the EU market”

USDA Foreign Agricultral Service (FAS) Global Agricultural Information Network (GAIN) report

 

 

 
Posted on by

Asda says its “no tears” sweet red onion is a UK first

Asda onion

 

Asda has just started selling what it calls the UK’s first sweet red onion.

The UK retailer said in a press release that a total of about 40 tons of Sweet Reds are now on sale at selected Asda stores.

It claims the onion’s lower pungency levels means less tears while chopping and an odour that doesn’t linger on the breath as long as that from a regular onion. The new bulb is also said to boast a milder, juicier and crunchier flavour.

Asda said the sweet red is the result of work spanning more than 20 years by Bedfordshire Growers farmer Alastair Findlay, who evaluated 400-500 bulbs per season in order to cultivate the new onion.

Asda’s vegetables buyer Andy Wareham said the company is proud to have supported Findlay on the project. “Introducing the UK’s very first sweet red onion is a fantastic achievement.” Wareham said that like in the USA, people in the UK tend to have a sweeter palate “so will appreciate the same tangy flavour, without the strong acidity of some onions.”

“It’s funny to think that prior to the 1990s, there were no red onions grown within the UK. However due to the popularity and versatility of the variety, they now account for 20% of the total onions sold within the UK,” Wareham said.

Findlay is already working on an improved version of the onion to launch next year. “There are so many interesting flavours just waiting to be discovered,” he said.

Read more about Asda on p34 of our latest edition, number 135.

 

 

 

 

 

 

 

 

Posted on by

Increased citrus imports and online sales in China

The majority of China’s imported citrus is sold through major retailers, convenience stores, fruit stalls, high-end hotels, restaurants and e-commerce.

 

Ongoing growth in China’s citrus imports is fuelled by strong thirst for fresh – and thus counter-seasonal – fruit, reports the Global Agricultural Information Network (GAIN). And the main suppliers – South Africa, Australia and the US – are also benefiting from the increasing cost of locally-grown fruit, GAIN said in its 2014 citrus annual for China.

Among its forecasts for the 2014/15 marketing year:

Orange imports: to rise 13% on previous year to 100,000 tons (South Africa then the US the main suppliers);

Mandarin imports: to rise more than 30% to 24,000 tons (South Africa & Australia the main suppliers);

Grapefruit imports: to rise 23% to 32,000 tons (imports from South Africa have grown to meet higher demand as more consumers become aware of grapefruit’s nutritional benefits).



Online fresh produce sales up 41% to more than $930 million

GAIN also said the majority of China’s imported citrus is sold through major retailers, convenience stores, fruit stalls, high-end hotels, restaurants and e-commerce.

It noted e-trade platforms developed fast in 2014 and though the market share is still small, using they are increasingly popular in China, where revenue from online fresh product sales rose nearly 41% in 2013 to more than $930 million.

“Selling fresh fruit online has continued to expand rapidly over the past 4 years. For example, Fruit Day was the first company to develop an online website to sell fresh fruit products in 2009 followed by Guo Ku Wang (www.guocool.com) and Tou Tou Gong She (www.tootoo.com). Guocool.com also provides fresh-cut products online,” GAIN said.



Shanghai the preferred entry port

Guangzhou is China’s biggest fruit import distribution hub but importers increasingly prefer the next biggest, Shanghai, because of domestic transportation costs and other cost concerns.



 

Read the report

Image by NuclearVacuum via Wikimedia Commons

 

 

 

Posted on by

What’s booming for Norway’s BAMA Group

RuneFlaen

 

Health awareness – and huge distances – shaping changes in the country’s fresh produce supply

 

Blueberries, avocados and sweet potatoes are among the fastest-growing products in grocery stores under the umbrella of Norway’s giant BAMA Group, which has seen its turnover rise 9% on 2013 to an expected €1.65 billion this year.

“But the competition is tough,” BAMA Group CEO Rune Flaen says of Norway’s highly concentrated retail sector, which recently shrank from being dominated by four major retail groups to just three.

With news in October that Norway’s large Coop chain will take over the Norwegian operations of Sweden’s ICA chain, that leaves just three main retail groups in Norway: NorgesGruppen (40%), Coop (32%) and Rema 1000 with partners (28%).

NorgesGruppen and Rema 1000 are shareholders of, and supplied by, BAMA.

 

Tough climate makes marketing crucial

High taxes and costs, protectionist food policy, and dominance by just a few wholesalers and retailers are among factors shaping retail in Norway and another key one, as Flaen said at the Fresh & Life berry symposium in Madrid in October, is distance.

Norwegians have the highest concentration of shops per inhabitant in Europe, mainly due to the challenging logistics in a country which measures 2000 km from from north to south.

“A large part of the European industry is struggling,” so marketing is even more crucial, he said. BAMA thus makes sales planning and marketing a priority and among its various initiatives is a large sport sponsorship program, where the aim is to encourage physical activity and a healthy diet through different activities for children especially, and Norwegians in general.

 

Berries, then tomatoes and bananas lead fresh produce value

Flaen – who has spent more than 30 years at BAMA and the last 20 at its helm –

said bananas used to be its most valuable fresh produce category but now it’s berries, tomatoes, then bananas. The berry category accounts for about 3% of Norwegian grocery sales in the summer peak season, far ahead of Coca Cola – something Flaen noted as “really important.”

In berries, strawberries still lead but raspberries have also become an important year-round item and blueberries have had “explosive growth”.

“There’s enormous potential in the berry sector in years to come,” he said.

 

In an interview with ED at Fruit Attraction, Flaen shared more market insights:

There’s been huge growth in BAMA’s berry sales. Where else is demand rising?
We’ve had big growth in avocados (+137 % last five years – volume) and in all root vegetables. For example the sweet potato market has exploded, sales last year tripled in volume after a marketing campaign teaching families how to prepare them. Mashed sweet potato has become a favourite for kids.

What’s driving interest in root vegetables?
More and more people going back to basics and cooking at home. We’re seeing that trend really strongly – sales are up 110 %.  

What other trends are you observing?
Local produce is very popular, people are really interested in the region and history behind their food – that’s a clear trend for the future. Private labels will also grow.
What opportunities are on the horizon for fresh produce suppliers?

The health trend is very strong. We have to find the right products for consumers and inform them about what’s in them nutrition-wise and what they do to their bodies – that’s the big trend.
Are health benefits behind the explosion of blueberry consumption in Norway?
Mainly but also because we now have good quality and availability year-round – that’s the key to growth.

What is one of your priorities in fresh produce now?
We are always working on improvements in the value chain. Shelf life is very important to us and our customers are investing very heavily in coolers. In a country like Norway with long distances, quality and freshness are the highest priority.

What changes have you made in logistics?
One example is that we now have three drivers each on two trucks for our “Berry Express” from Morocco so they can arrive as fast and fresh as possible. From loading in Morocco to arrival in Oslo – before distribution in Norway – takes 3-4 days.

What is the “BAMA Commitment”?
For 15 years BAMA has adopted a dynamic and value chain–based model reflecting its desired holistic approach. Through detailed planning and predictability we aim for long-term, sustainable production and profitability in all stages.

 

Retail in Norway

logistics challenge: 5.1m people, 385,000 sq km

highly concentrated: soon just 3 main retail groups

about 3900 grocery shops, average turnover €5m

60% of grocers are discounters (highest in Europe)

0.8 grocery shops per 1,000 people (highest in Europe)

Norwegians shop 4 times pw

Norwegian F&V consumption (day/person)

2013: 443g

2006: 410g
 

BAMA Group (BAMA-Gruppen AS)

Est. turnover 2014: €1.65b up 9% on 2013)

7 business areas including food service & fast-growing flower business

2 retail customer groups in grocery business: NorgesGruppen & Rema 1000.

NorgesGruppen: 40% of grocery market, Norway’s biggest retailer

NorgesGruppen controls chains such as Meny, Kiwi, Centra, Joker & Spar.

Rema 1000: 28%, no-frills supermarket chain

BAMA also has representatives in Poland, Sweden & Holland

BAMA’s fresh produce

500,000 tons pa, of which:

72% imported (170 suppliers)

28% local production

serves 15,000 customers

BAMA’s fresh produce strategy includes:

Goal of min. 4% more growth pa in F&V than average for all categories

Focus on consumer — flavour & nutrition

Close relationship & long term cooperation with suppliers & customers

Importance of berries

300% volume growth in Norway since 2003

1% of Norway’s grocery sales

10.6 % of value of total F&V shopping basket at BAMA

30% of Norwegians buy fresh berries in a grocery store weekly

BAMA 2013 berry sales (in kg)

total 17 million

strawberries 10 million

blueberries 3.25 million (x12 in value since 2008)

raspberries 1.5 million

Cool chain investment

More coolers at checkouts

+3,000 new berry coolers in last 2yrs

+2,000 more in next 2 years

 

JB

 

SPAR berrie mix in cooler.JPG

 

Read this and other feature articles in Eurofresh Distribution edition 134

 
Posted on by

Fresh fruit and vegetable demand in Norway

Oddmund

 

“In recent years, berries and blueberries (highbush blueberries) have seen a spectacular increase in the Norwegian market and tomatoes are no longer just tomatoes, the range has become very wide.“



“The Norwegian government’s policy is that organic fruit and vegetables should reach a market share of 15%.”



As general secretary of the Norwegian Association of Fruit and Vegetable Wholesalers, Oddmund Østebø knows Norway’s fruit and vegetable sector inside out. Relative to the rest of Europe, the country’s relatively small population – just over 5 million – has very high spending power but a low rate of fresh fruit and vegetable consumption and is highly dependent on imports.



What are some of the features of the Norwegian market?

Oddmund Østebø: The Norwegian fruit and vegetable market consists of 5 million consumers and is thus the size of the Danish and Finnish markets.

About 70% of Norway’s fruit and vegetable turnover is derived from imports – with Spain is by far the main supplier – and 30% Norwegian production. In recent years, berries and blueberries (highbush blueberries) have seen a spectacular increase in the Norwegian market and tomatoes are no longer just tomatoes, the range has become very wide.



What do you do in regard to marketing?

Generic fruit and vegetables marketing in Norway is mainly driven by the Norwegian Marketing Board for Fruit and Vegetables, whose main activity is the promotion of Norwegian produce.

But it is important to promote fruits and vegetables year-round, also in the import season of individual products. The vision for the future of marketing will be “Fruit and vegetables – naturally for all meals.” This will be achieved by increasing the knowledge of fruit and vegetables in all segments of the market.



What is happening in regard to organic and sustainable production?

Norwegian consumers consider regular mainstream products as very good. This means interest in organic fresh produce is not as high as in many other countries. However, the Norwegian government’s policy is that organic fruit and vegetables should reach a market share of 15%.

The organic products that have a certain market share of the total market are carrots and potatoes, otherwise the market share for organic products is low in Norway. There is a growing demand for certain organic products, especially staples like apples, carrot, potato, cabbage, tomatoes and cucumbers. These products are relatively cheap for the consumer, and it is easier to sell organic products.



JB



This is a short version of a full page interview which can be read online here on page 13 of edition 134 of Eurofresh Distribution magazine.



 

Posted on by

Inside Swedish retail giant Axfood

Daniel-Månsson_Axfood

 

Fruit and vegetable trends now and what may lie ahead



Axfood is Sweden’s third largest grocery retailer and also its leading convenience store wholesaler. Here we speak to Daniel Månsson, general manager of fruit and vegetables, about trends in Axfood’s fresh produce sales in what is one of the most affluent nations in Europe and the biggest retail market in Scandinavia.

 

What changes have you seen in your fresh produce sales?

Some years ago bananas were the biggest but now with the wide assortment of tomatoes, tomato sales have increased. Before there were just the vine tomatoes and the normal big red tomatoes, now there are 20-25 varieties in the tomato segment. On average, fruit and vegetables account for about 11–12º% of our total store turnover.



What trends do you see?

In general in Sweden, the biggest thing that is happening is organic – it’s getting really huge. This year we have an increase of about 100% and, for example for bananas, one of our supermarkets, Hemköp, has decided to stop selling conventional bananas so we have converted almost all of them now but officially next year we will do only organic bananas.

Another big trend is we are selling more premium, higher value products.

And In the last three years, the biggest increase has been in organic and berries, and cherries have also been very good.



What is happening with convenience foods in Sweden?

Convenience food is still not so strong in Sweden. I don’t think people are willing to pay for it, I think that’s the problem.

We are good in lettuce but everything else is just starting up. We have the products but we are not selling them, and it’s the same for our competitors. Part of the problem is volumes are low so the prices are high but even in categories like carrots, where prices are not that high, we sell almost nothing.

Even in ready-to-eat salads the only thing we have is the Caesar – we eat quite a lot of that in Sweden.



Five years from now what do you think will be different in your fruit and vegetable departments?

For sure there will be a big focus on social responsibility and organic products.

I also think we will have more convenience items, especially in salad and even pre-cut fruits. Also, berries will continue to grow – we have a big health trend.



What is changing and why regarding root vegetables?

What we see is more not the big root vegetables, like carrots, but mainly smaller ones like red beets, parsnips, that kind of thing, increasing quite heavily. It’s probably due to a lot of recipes and cooks on TV and also I think it’s for health and good taste reasons. The thing is you just need to know how to cook them.



What change have you made in fresh produce that you are most proud of?

I think we have done a good job in berries. We are happy because I think we are growing more than the market. Price is very important but with berries quality is even more important so we are very focused on it.

We also do a lot of in-store promotions and let people taste the berries and let everyone know they are no longer just for summer, you can now find good berries all year round.



What have you done to maximise the shelf life of berries?

We know the volumes of our clients and have been working a lot together on the turnover in our warehouse. We have a very quick turnover, the berries can’t stay long in our warehouse. And we’ve also done lot of education for the stores.



Where do you see opportunities for suppliers?

What is interesting right now is organic. I think it’s there to stay in Sweden and the increase is huge.



Tell us about your buying process

We started our own buying department in 2007. Before then we had wholesalers doing the business for us. Our supply department is not located in the company headquarters but in Helsingborg in the south of Sweden.



What are the advantages of having your own buying department?

We are always aim to be as close to the grower as possible. We don’t want to have a lot of middle hands. This way we get the right info and we believe we get fresher products. Growers and grower organisations are our main focus.

 

 

Axfood:



Store chains:

Hemköp (including Prisxtra): higher end supermarket

180 stores, 69 of them wholly owned

Willys: soft discounter & Axfood’s biggest supermarket

183 stores, of which 48 are Willys Hemma stores

Tempo/Handlar’n: 366 franchise stores



Wholesale

Dagab: 2 full-assortment warehouses, 2 cold storage warehouses

Axfood Närlivs: 3 distribution centres, 20 Snabbgross stores



Sources of Axfood’s fruit & veg (approx., vol.)

Sweden 40% (mostly veg)

Spain 20%

Holland 10%



Top vegetable sales (val)

1 tomatoes

2 lettuce

3 capsicums



Top fruit sales (val)

1 bananas

2 apples

3 berries (over whole year)



Berry sales

Up 300% in 5 years

 

JB

 

Click here to read more such articles in our latest edition, number 134

 

 

AXfood store 11b 11 8 007972 - Edited.jpg

 

Posted on by

Organic pear, avocado and apple imports increasing in the US

descarga

 

US imports of certified organic pears, avocados and apples are showing triple digit growth in value for the first ten months of this year, compared to the same period last year.

And organic garlic, non-greenhouse bell peppers and blueberries have notched up double digit gains.

Organic bananas and mangoes, however, are at both values and volumes less than half those of 2013. Nevertheless, bananas, followed by apples, avocados and mangoes, lead in total value imported among those organic fresh fruits and vegetables being tracked by the USDA.

The figures come from the selected organics section of the Foreign Agricultural Service’s Global Agricultural Trade System (GATS), which was updated this week with data to the end of October 2014.

 

Pears*: those entering US between April 1-June 30 inclusive

Avocados*: Hass avocados and others considered Hass-like, fresh or dried

Apples*: fresh, valued at more than 22 cents/kg

Bell peppers*: other than greenhouse, fresh or chilled

Mangoes*: entering US September 1–May 31, fresh

Mangoes **: entering US between June 1–August 31, fresh

 

US imports Jan-Oct 2014 for selected organic produce

Imported organic item

VALUE (in thousands of USD)

VOLUME (MT)

% Change in Value Jan-Oct 2014 vs same period 2013

% Change in Vol. Jan-Oct 2014 vs same period 2013

Bananas

97,044

168,624

-60

-66

Apples Fr >22Cents/Kg

29,396

26,180

100

68

Avocado-Hslike Fr/Dr

27,942

13,117

113

107

Mangoes Fresh 9/1-5/31

25,962

33,069

-61

-51

Mangoes Fresh 6/1-8/31

11,446

20,264

-64

-58

Bell Peppers Fr Other

9,244

3,253

58

27

Pears Fresh (April 1-June 30)

8,524

7,521

228

242

Bell Peppers Greenhse

7,355

2,771

-4

-27

Cultiv Blueberries Fr

5,975

1,322

43

75

Pears Fresh Other Time

2,926

3,026

-14

4

Garlic

2,448

1,850

95

146

 

US ORGANIC PEAR IMPORTS Jan-Oct 2014
Partner Product Value (in thousands of US$) Qty (MT) % Change Value (Jan-Oct 2014 on Jan-Oct 2013) % Change Vol. (Jan-Oct 2014 on Jan-Oct 2013)
World Total Pears Fresh Other Time 2,926 3,026.3 -14 4
Argentina Pears Fresh Other Time 2,889 2,988.7 -12 9
Chile Pears Fresh Other Time 38 37.6 -67 -72
           
World Total Pears Fresh 4/1-6/30 8,524 7,521.3 228 242
Argentina Pears Fresh 4/1-6/30 8,361 7,409.9 227 245
Chile Pears Fresh 4/1-6/30 163 111.4 342 141

 

US IMPORTS OF FRESH ORGANIC APPLES (at price >22Cents/Kg) Jan–Oct 2014
Measurement units: Val 1,000 USD, Vol 42LBC
Partner Value Qty % Change in Value on same period in 2013 % Change in Vol. on same period in 2013
World Total 29,396 1,374,204.4 100 68
Chile 18,000 848,496.4 89 61
Argentina 8,627 353,417.6 259 237
New Zealand 2,079 150,790.0 5 -1
Canada 691 21,500.3 -11 -30

US imports of fresh organic cultiv. BLUEBERRIES Jan-Oct 2014
Partner Value in ‘000 US$ Qty in tons % change in value on Jan-Oct 2013 % change in quantity on Jan-Oct 2013
WORLD TOTAL 5,975 1,321.9 43 75
Chile 4,104 1,144.4 15 58
Argentina 1,852 172.5 384 712
South Africa 19 4.9 — —

 

Posted on by

US exporting more organic cherry tomatoes, grapefruit

biggest growth us exports organic

The top organic fruit and vegetable exports by the US so far this year are apples, lettuce, grapes, spinach and strawberries, according to data updated today by the USDA.

These are the products that lead in value for the ten months to this October, though the totals for apples and lettuce are down 22% and 11% respectively on the same period last year. In terms of the biggest growth relative to last year, cherry tomatoes, grapefruit, cauliflower, other tomatoes and celery are the top five items.

Organic item exported by US

Value in Thousands of US$

% Change in Value Jan-Oct 2014 compared to Jan-Oct 2013

Apples Fresh

91,856

-22

Lettuce Not Head Fr/Ch

62,564

-11

Grapes Fresh

42,831

2

Spinach Fr/Ch

31,349

14

Strawberries Fresh

27,966

11

Carrots Fr/Ch

22,470

10

Cauliflower Fr/Ch

21,681

56

Cult Blueberries Fresh

16,968

16

Pears Fresh

15,787

-7

Broccoli Fr/Ch

13,267

-2

(Fr/Ch = fresh or chilled)

 

 

US organic export

Unit of measurement

Volume Jan-Oct 2014

% Change in Vol Jan-Oct 2014 on Jan-Oct 2013

Apples Fresh

42LBC

3,656,652.90

-21

Potatoes Fr/Ch Xsd Oth

CWT

68,434.00

-29

Cauliflower Fr/Ch

MT

22,249.80

61

Lettuce Not Head Fr/Ch

MT

21,681.90

-15

Grapes Fresh

MT

19,111.30

2

Carrots Fr/Ch

MT

16,744.80

8

Onion Sets Fr/Ch

MT

14,900.30

19

Pears Fresh

MT

13,828.40

1

Celery Fr/Ch

MT

10,707.00

100

Broccoli Fr/Ch

MT

10,159.50

-9

(Fr/Ch = fresh or chilled)

 

 

 
 
 
 
 
 
 
 
 
Posted on by

Baby food pushes up organic sweet potato sales in US

Sandi Kronick, CEO of Eastern Carolina Organics, (left) with Triple J Produce Sales manager Kristi Hocutt

Young mothers and pregnant women helped give birth to the growing market for organic sweet potato in the United States, says Sandi Kronick, CEO of Eastern Carolina Organics (ECO).

While she jokes that “kale pays the bills”, Kronick said sweet potatoes are the next most important item for ECO in terms of both value and volume, followed closely by blueberries.

Based in Durham, North Carolina, the farmer- and employee-owned firm markets and distributes wholesale Carolina organic farm produce to retailers, restaurants and buying clubs along the US east coast, even reaching Canada in the north and as far south as Florida. Now ten-years-old, it expects turnover of US$4 million this year, up from $3.8 million last year – all from sales within North America and about a fifth from sweet potatoes.

Baby food has long provided major demand for sweet potato and Kronick said demand for the organic version has delivered greater demand for organic sweet potato. “A lot of organic sweet potato acres go to baby food,” she said. Even so, she said less than 5 percent of total sweet potato production in the US is currently organic.

Kronick said ECO is also seeing a lot of growth – with increases in value but not necessarily volumes – in greenhouse tomatoes, in particular, and in greenhouse cucumbers and lettuce.

Exports to the UK, France and the Netherlands

One of the about 100 farms that ECO works with is Triple J Produce, located in Sims, North Carolina, which predominantly grows sweet potatoes and has about 1,000 acres of conventional cultivation for this crop and 100 acres of organic.

Sales manager Kristi Hocutt said that despite the higher costs, such as due to non-chemical weed control, the company has been increasing its organic production “because customers have been asking for it.”

Triple J supplies stores including Whole Foods in the US and exports sweet potatoes to European countries including the UK, France and the Netherlands, mainly in 6kg and 18kg boxes.

Its own sweet potato production this year will be 800,000 bushels, along with an additional 400,000 from partner growers, of which 65,000 bushels will be organic. Its 2013 crop was 500,000 bushels, of which 38,000 were organic.