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Half a million tons of broccoli imports in the EU

Broccoli imports within the European Community have remained quite stable over the last 3 years

Broccoli imports within the European Community have remained quite stable over the last 3 years. Volumes have dropped by only 1% between 2013 and 2014, representing 533,725 tons in 2014 for a total value of €439.8 million.
After a 12% rise in price in 2013, reaching €475.6 million, prices have come back to normal. Between 2012 and 2014, the value of EU imports rose slightly compared to volume, which on the opposite tends to decrease.
On the other hand, the extra-EU imports are considerably lower but have continued to rise over the last 3 years. Their value doubled between 2012 and 2014, going up from €6.4 million to €13 million.


The UK is the largest importer by far, accounting for 25% of all EU imports. It purchased 134,503 tons for a total value of €129 million.
The other importing countries include Germany with 73,563 tons and France with 47,602 tons. The UK and France have noticed a drop in their imports, respectively by 25% and 5%. Nevertheless, Poland (+49%) and Lithuania (+14%) have clearly taken the advantage of the Russian ban in the middle of last year.

SM

  

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Mercabarna is modernising its facilities and improving air and sea connections

Fruit and vegetable exports from Mercabarna rose by 9% in the first half of 2015 compared with the same period in 2014, according to data from the Catalan market.

Fruit and vegetable exports from Mercabarna rose by 9% in the first half of 2015 compared with the same period in 2014, according to data from the Catalan market. Indeed, in 2014 the companies in Mercabarna’s horticultural sector sold 1.7 million tons (between the Central Market and the Complementary Activities Zone).

A successful “Mercabarna Export” cluster

The market hub in Barcelona attributes the export boom in the first half of 2015 to promotion by the Mercabarna Export cluster and presence in international fairs like Fruit Attraction and Fruit Logística, which have made Mercabarna a benchmark for suppliers around Europe. The market currently has business relationships with all corners of Europe. In 2015, the cluster has carried out studies to determine the feasibility of exporting to Algeria, the Arab Emirates and Ireland, where they have carried out direct missions that will be bolstered in 2016 “for importers interested in learning about Mercabarna,” said Josep Tejedo, director general of Mercabarna. Another relevant fact is that more and more shoppers are going directly to buy at the market, mainly from France, Italy, the United Kingdom, Poland and Ireland. “The ease of management, storage and transportation as well as the range, freshness and quality of the produce, allow for convenient and efficient purchases,” said Josep Tejedo.

Sea and air connections to Paris, Germany and Dubai to improve

Transportation has also become a significant aim for the Mercabarna Export cluster, which supports the rail terminal for lorries that is to be completed in 2019 on land owned by the Port of Barcelona, 2 km from Mercabarna. The first lines to be launched will be Barcelona-Paris and Barcelona-Germany. “This means of transport will lead to improved logistics efficiency and a reduction of 10% in the cost compared to road transport, along with a significant decrease in environmental impact,” said the general manager of Mercabarna. As for air transport, improvements have been made in the range and price of flights to the United Arab Emirates. In addition, working groups have been created involving large South American exporters and fruit importers from Mercabarna to optimize routes and improve logistics prices. Mercabarna has also launched the Trends Observatory in 2015 to present new business opportunities for companies located in their food hub. These include an increase in local products in the market, linked to the growing awareness about zero kilometre food and slow food.

Espai Food and Food Trade Center as of 2016

Another project in the works, which will be ready later this year or early in 2016, is the Food Trade Center, a space for the increasingly numerous foreign buyers who regularly visit these markets to supply other countries. This space will have all the services these purchasers may need for their activities, such as telecommunications, offices, meeting rooms, etc. There are also plans to launch Espai Food in 2016, an area with all the infrastructures and services necessary for Mercabarna’s companies to be able to give presentations for their products, present new recipes, tastings, etc. Finally, it is worth noting that Mercabarna intends to go a step further in its policy against wasting food. To do so, it has commissioned the Autonomous University of Barcelona to carry out a study—to be completed in late 2015—that will classify the kinds of food losses caused by the activities of all the operators that come to Mercabarna every day, and will suggest ways to reduce them. Another ongoing challenge is the modernisation of Mercabarna’s complex, which looks set to be finished in 2020. 

MP

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China’s banana consumption doubles over a decade to 9.5kg per capita

China’s per capita consumption doubles over a decade from 5 to 9.5kg, and imports quadruple to 1.5 billion tons.

China is the third largest banana-producing country in the world after India and Brazil, but ahead of Ecuador, the largest banana-exporting country. The banana is a major cash plant in southern China and has earned a good reputation among consumers, fostering employment for over 2 million people. Over the last 10 years in the southern equatorial Chinese areas, mainly in Guangdong and Hainan provinces, 12 million tons of fresh bananas have been produced on an area of 413,000 hectares now, up from 295,000 ha in 2006. In the same period, the yield per ha has increased by almost 20% to 29 tons/ha. It is said that China has now reached its maximum production capacity. The land suitable for banana planting is exhausted, while some areas are susceptible to tropical storms and even typhoons and flooding. Also, China’s domestic banana production capacity is unlikely to expand significantly due to constraints on transportation, labour and environmental costs. Over the last decade, the banana industry has feared the outbreak of a banana plant virus on the continent called Panama Tropical Race 4 disease, which could spread quickly in the main commercial production areas of the Cavendish banana. Today, the Chinese population of 1.4 billion consumers is getting richer and needs more fresh fruit as they recognize its health benefits. The consumption of all fruit is increasing, including bananas. Chinese consumption of bananas is catching up with the rest of the world, last year reaching 9.5 kg per capita and per year, compared to the U.S. with 13 kg and the EU with 11 kg. Domestic production meets the vast majority of China’s demand, with only 5-8% satisfied by imports. In the second half of 2014, the El Niño effect appeared in force, bringing drought to the Western Pacific region. Banana production on technified banana farms in South China and neighboring countries like the Philippines saw reduced yields.

High costs with domestic supplies

Local produce is fighting for its market share against imports as it faces higher costs of transporting bananas from some major production areas to the north-eastern cities. Banana imports increased substantially in 2014, even in the southern city of Shanghai. During the first seven months of 2015, imports rose by 30% and reached 715,000 tons, of which 200,000 tons were Ecuadorian bananas. At the same pace, China will import 1.46 million tons this year, almost three times the amount in 2013, taking a 12% market share. Dalian is the main banana port in north-eastern China, where the major banana companies have their logistical hubs. Dole Philippines leads with the largest market share. The Sumitomo group from Japan ranks second and has its own large-scale banana plantation in the Philippines with the banana brand ‘Gracio’. It takes 30-40 days to ship bananas to China from Ecuador, but the Ecuadorian banana’s competitive pricing versus Philippine bananas has led many importers to make the switch.

Stronger demand ahead for Ecuadorian bananas

The demand for Ecuadorean bananas is rising and it may continue to grow strongly in the years ahead. Indeed, the major shipping lines have made extra reefer space available. CMA-CGM is now offering a new service provid- „Peru, world’s second largest organic banana exporter Peruvian banana exports amounted to US $120 million in 2014, representing an increase of 35% on the previous year and a 53% share of total Peruvian organic exports, reports PromPeru. The country is now positioned as the second largest exporter of organic bananas worldwide. The main destination markets were the Netherlands with 42%, the USA with 27% and Germany with 16%, followed by Belgium, Japan, Finland, South Korea, the UK, Canada and Chile. In the first half of 2015, shipments of this product amounted to US $ 73 million, in other words 28% more compared to the same period in 2014. ing faster and more direct access to the Chinese market, with controlled atmosphere reefer containers guaranteeing fresh quality on arrival. The ship arrives in Guayaquil from China carrying electronics, toys, raw materials, and general consumer goods. It leaves Ecuador bound for Mexico, then South Korea and China, carrying a shipment of Ecuadorean bananas. However, banana growers in several neighboring countries in south-eastern Asia (such as Vietnam, Indonesia, Laos, Myanmar and Cambodia) also seek an outlet and are looking to enter China. Demand for higher quality imports will get stronger, particularly in the big cities. Chinese producers have been warned: an upgrade to their cold chain management system is mandatory. 

LH

This article originally appeared on page 74 of edition 139 of Eurofresh Distribution magazine. Read that issue online here.

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Colruyt Group sees increase in citrus sales

Priorities for the Colruyt group include innovation in e-commerce, and helping consumers choose healthy and sustainable products via ‘simplicity in retail’.

Belgian retail group Colruyt reports that it gained market share in 2014/15 despite tough competition. In Belgium, where the retailer competes with the hard discounters Aldi and Lidl as well as Carrefour and Delhaize, it says its market share rose to 31% based on revenue from its store concepts Colruyt Lowest Prices, Spar and OKay. (The group is to focus its expansion efforts even more on OKay, its proximity store concept.)

Colruyt Group also managed to keep its operating margins stable in 2014/2015, with a gross margin of 24.9% of revenue and EBIT margin of 5.6% of revenue. In what it described in its 2014/15 annual report as a “challenging market environment”, its reported revenue grew 3.1% to €8.9 billion. “Due to the pressure on the sales prices, the volume growth was not fully reflected in revenue growth. Price pressure was brought about by price deflation, competition and the consumer trend towards cheaper products,” it said. The group’s net profit was weighed down to €331 million after recording a fine of €31.6 million imposed by the Belgian Competition Authority.

Wholesale & Foodservice

Colruyt’s wholesale and foodservice segment accounted for 17.1% of its consolidated revenue. Revenue from these activities rose 3.5% on last year to €1.5 billion. The wholesale segment includes deliveries to independent storekeepers in Belgium (Retail Partners Colruyt Group) and France (Coccinelle, CocciMarket and Panier Sympa). Wholesale revenue declined slightly (-0.5%) due to food price deflation.

source: Colruyt Group 2014/2015 annual report

Managing complexity to offer simplicity

“Our stores and wholesale activities in Belgium, France and Luxembourg continue to operate in an environment with fierce price competition and low consumer confidence,” Colruyt said in the report. One of its strategies in light of this is ‘Simplicity in Retail’. “Offering simplicity means, for example, helping consumers to make healthy and sustainable choices. This is why we continue to work on the quality and nutritional value of our own brand products, and on a more sustainable range of fish products and better working conditions at our suppliers and partners in risk countries,” it said.

“In order to be able to offer simplicity, we are also focusing on innovation. This is why we are targeting retail solutions in the e-commerce market and why we are the first Belgian distributor to make mobile payments possible in all of our web shops and stores. We are also pleased with the federal government’s plans to amend the laws governing e-commerce so that we can become a bit more competitive in relation to our neighbouring countries.”

Using audits to improve working conditions

In keeping with its commitment to improve working conditions at its suppliers and partners, Colruyt Group started carrying out regular audits in the food sector in 2013 and reports that they “do really lead to an improvement of the working conditions.” It plans to carry out at least 270 audits this year, representing an investment of over €200,000. “With this, we are well on our way to achieving our targets: all food-processing companies have to be audited at least once by June 2016 and all vegetable and fruit producers have to be audited at least once by June 2018.”

New headquarters for Retail Partners Colruyt Group

Among other highlights in the report, Colruyt said its wholesale division, Retail Partners Colruyt Group (including Spar and Alvo stores, independent Mini Markets and independent storekeepers), finalised its relocation to a new head office in Mechelen (in Antwerp province) at the end of October 2014. Two automations were also implemented in the high-tech distribution centre also located there, one in the empty goods section and another in the collection circuit for vegetables and fruit. The offices and the distribution centre have a combined surface area of 62,100 m2.

Support for Belgian pears and apples

A large-scale campaign was started at the end of August 2014 to promote the sale of Belgian pears. The Belgian pear growers had a surplus of pears due to the Russian import ban on European agricultural products. The group purchased 160 tons of pears of Belgian growers at the fruit auction. Around 550 stores of Colruyt, OKay and Spar offered the pears to their customers.

Similarly, Colruyt and OKay supported Belgian growers of Jonagold apples with a short-term campaign at the start of November last year. “Due to the abundant harvest and export problems with Russia, the Belgian apple growers were faced with a surplus. Colruyt and OKay offered pure pressed apple juice made from 100% Belgian Jonagold apples. The apple juice was sold under the own brand Boni Selection. Each store was supplied with around 500 bottles, which amounted to a total of 165.000 bottles,” according to the group’s 2014/2015 annual report.

Citrus sales at Colruyt

Sales of lemons were up 25%, oranges 12% and grapefruit 6.5% in volume for the first six months of this year, compared to the same period last year according to Colruyt’s product promotion manager Tony De Bock. “In citrus fruit we sell oranges, clementine, grapefruit and lemons,” he said. Over the course of the year, Colruyt offers lemons from Spain and South Africa, and oranges from the following countries: Spain (for eating and juicing), South Africa (for eating and juicing), Italy (“blood” oranges), Morocco (for juicing) and Egypt (for juicing). Clementines are sourced from Spain, Cyprus (mandora), South Africa (the Orri Club has been introduced) and grapefruit comes from the US and South Africa.

Colruyt’s product promotion manager Tony De Bock

Rise in sales of iceberg and multi-colour lettuce

In terms of lettuce sales, De Bock said the sales volume from January to June was up 3.5%, compared to the same period last year, with 75% of the lettuce grown in Belgium. “We import from Spain and Holland, but that is mainly the iceberg lettuce. We see the most positive evolution in iceberg and multi-colour lettuce,” he said.

Produce quality requirements

“Our quality requirements are always the same,” De Bock said. Colruyt requires Global G.A.P. and BRC certification.

JB

 

Video about Colruyt Group’s 2014/2015 annual report

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Japan plans fully robotic lettuce farm by 2017

Capable of supplying 30,000 heads of lettuce a day, Japanes company Spread says its 4,800m2 ‘large-scale vegetable factory’ will be “fully automated from seeding to harvest.”

Kyoto-based firm Spread plans to open what has been dubbed the world’s first fully robotic farm.

Capable of supplying 30,000 heads of lettuce a day, the company says its 4,800m2 ‘large-scale vegetable factory’ will be “fully automated from seeding to harvest.” This complete automation of the cultivation process will slash labour costs in half, it said in a press release.

Focused on global expansion, Spread hopes to extend its production to 500,000 heads of lettuce per day in five years “and will continue to expand our vegetable factory business domestically and internationally.”

Founded in 2006, in Kameoka in Kyoto, Spread already operates what it calls the world’s largest vegetable factory using artificial lighting, which grows four types of lettuce for a total 21,000 heads per day. It provides year-round supply to about 2,000 stores in the Tokyo metropolitan area and the Kansai region via the brand “Vegetus”.

Spread produces several types of lettuce under the brand name “Vegetus” (its brand for vegetables cultivated in its vegetable factories) and says it sells them to department stores, major grocery stores, hotels, restaurant, and amusement parks around Japan.

Construction of the vertical farm – at a full investment of up to about 2 million yen (€14.6m) – is due to start in Kizugawa, Kyoto, next spring with the first shipments in summer 2017. From the estimated production capacity of 10 million heads of lettuce a year, Spread estimates annual sales of about 1 million yen.

Environmentally friendly features of the ‘next-generation’ factory are to include recycling of 98% of the water used for cultivation and a system of environmental control making the factory extremely energy efficient.

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Turkey is Russia’s largest partner

wfmscow

About 1.13 billion tons of vegetables and 676 million tons of fresh fruit are produced per annum in the world. According to data from BAIB (West Mediterranean Exporters Union of Turkey), world fresh exports in 2014 reached US $110 billion with the largest share from bananas (9.1%), tomatoes (8%), table grapes (7.3 %) and apples (6.8%).

Turkey benefits from extensive lands and a favourable climate and is a traditionally agricultural country. The country cultivates 28.5 million tons of vegetables and 18.2 million tons of fruit. It is a world leading grower of various fresh products:

  • No. 1. world producer of figs (26%), cherries (21%), quinces (18%) and apricots (19%);
  • No. 2. producer of melons and gherkins;
  • No. 3. producer of apples, tomatoes, watermelons and mandarins;
  • No. 4. pepper producer;
  • No. 5. aubergine producer.

One of the leading world producers and exporters

In 2014, Turkey exported 3.5 million tons of fresh fruit and vegetables valued at $US 2.3 billion. Citrus fruit exports came to $ 942 million (1.5 million tons), and other fruit exports to $720 million (775,000 tons). Vegetable exports were valued at $710 million (1.1 million tons). The country is the leading worldwide exporter in:

  • No. 1. exporter of figs;
  • No. 3. exporter of lemons, mandarins and cherries;
  • No. 4 tomato and apricot exporter;
  • No. 5 orange and grapefruit exporter.

The main destination for Turkey is Russia ($938 million, 39% of total exports). The country’s other large sales markets are Iraq, Germany, Ukraine and Bulgaria.

Turkey is also the largest source for Russian imports of fresh fruit and vegetables, accounting for 17.9% of the total. Other Russian import sources are Ecuador (11.9%), Egypt (5.6%) and Spain (5.5%).

Throughout Turkey, there are 60 exporter unions. West Mediterranean Union, established in 1968, groups together exporters from 25 different sectors from the region around the cities of Antalya, Burdur and Isparta. The fresh fruit and vegetable industry is the leading sector for regional export activity.

The Mediterranean Exporter Union based in Mersin is the Turkish coordinator for the sector. It has 990 members exporting fresh products.

Egypt guarantees high quality products

“Egyptian Agriculture Service & Trade Co. (EGAST) was established 30 years ago,” said Dr. Hatem El Shalma, the company’s CEO. “We trade in onions, potatoes, oranges, and are going to do pomegranates soon. All of these are grown by our farmers, and we control all the processes and guarantee the quality for our customers.”

Last year, potato production amounted to 70,000 tons. It was traded locally, sold to processing industries (Lay’s, etc.) and exported to Russia, Europe and the Far East. Production of onions came to 15,000 tons, exported to Russia and Asia. Production of oranges was 10,000 tons, but this will double next year. They were shipped to Russia and also to Asia: China, Bangladesh, Malaysia and India. “They are a fast growing market and we are pleased with our sales there,” El Shalma said.

EGAST participates in the World Food exhibition because Russia is the largest market for sales. “It is vital to choose a reliable partner,” he said.

El Wadi, the oldest exporter from Egypt

“Our company is a pioneer in Egypt,” says Mohamed Elbialy, Export Manager for El Wadi Export Co. “It was established in 1964 and at that time had exclusive rights to export agricultural products. Russia was our main partner and remains the largest market for us.”

The basic fresh products traded by El Wadi are citrus and other fruit, onions, garlic and other vegetables. Last season, the company exported 80,000 t of oranges, 10,000-15,000 t of onions, 5,000 t of lemons, 3,000 t of potatoes, etc. “We shipped 30,000 t of fruit and vegetables to Russia,” says Elbialy. “After the introduction of the embargo, demand has grown. We also supplied 10,000 t of goods to Europe and 30,000 t to the Middle and Far East and to Asia.” Indeed, the Far East is a growing market. Pomegranates, grapefruit, strawberries, semi-dried dates and other fruit are exported on a large scale. Last year the protocol with China was signed and the company has shipped 100 containers of Egyptian goods there.

El Wadi owns 4,250 acres of orchards where Naval, Baladi and Valencia oranges are grown. Several specialized production stations have been set up in various regions of the country and equipped with modern machinery.

Thanks to its great experience, the company has become distinctive in choosing the best products, preparing and packing them so as to comply with the best international standards: ISO 9001:2000, ISO 22000, HACCP, BRC, GlobalGAP, etc.

Uzbekistan also grows and exports

The volume of Uzbek fruit and vegetables exported to Kazakhstan grew by 10% in 2014, but their exports to Russia have decreased by the same volume. “The reason is the lack of tariff preferences for our products,” states the Vice President of Uzbekistan, Rustam Azimov.  As a result, “grey” schemes are used, and re-export from Kazakhstan keeps growing. “The application of the preferences will help to reduce prices for our products.”

In the 1st quarter of 2015, Uzbekistan produced 1.3 million t of potatoes, 2.6 million t of vegetables, 163,000 t of cucurbitaceae, 840,000 t of fruit and berries and 24,000 t of grapes. There were 21,800 ha of orchards and 16,600 ha of grapes planted and reconstructed, while 264 ha of hothouses in 500 farms and 400 ha in 9,300 of subsidiary smallholdings were built.

Second wave of ruble devaluation, 27% drop in consumer spending

The official rate of the dollar in Russia grew by 10% last August. Inflation has been at 15.6 % since the beginning of 2015 while the population’s real income has fallen by 2.9%. More than 60% of the population have reduced their travel and food expenses. In fact, 65% of Russians cut down on food spending, while 27% spent less on clothes and shoes, and 17% less on entertainment.

Mexican berries in Russia, too

Berries Paradise, one of the largest Mexican berry producers, has also begun to supply the Russian market, besides Japan and other Asian countries. While expanding its destinations, the company is going to enter the markets of China and Dubai. “Russia is an important target market for us,” said international sales manager Ana Blanca Solis. “That is why we are participating in the World Food exhibition. We have observed Russian interest in our berries and hope to find new customers.”

Berries Paradise is a group of companies producing and exporting blueberries, raspberries and blackberries. “Last season, we delivered over 4 million boxes,” she said. The crop is available from mid-September till June. The berries are exported mainly to the US, Asia and Europe, including the Netherlands, Germany, Spain and the UK.

Organics also in more demand in the East

“We aim to show people a different way of life; a life in harmony with nature,” said Milena Tsvetanova, from the purchasing department of Balev Bio Ltd, one of the leading Bulgarian companies specialised in importing organic food and non-food products. The company cooperates with more than 400 suppliers, mainly from Europe, and its range of products includes more than 4,000 items.

The company owns and runs three organic shops under the Balev Bio Market brand in the biggest cities in Bulgaria: Sofia, Varna and Plovdiv. An online store was also launched recently. “Our clients are the biggest supermarket chains, specialist organic food shops and health food stores, restaurants, etc.,” Tsvetanova said.
A fifth of its turnover comes from fruit and vegetables, its assortment of which covers 300 items. The most popular products are bananas, citrus, apples, avocadoes, tomatoes, cucumbers, carrots, etc. At the beginning of summer, Balev Bio offered its customers exotic fruits like mango, papaya, mangosteen, passion fruit, rambutan, red banana, longkong, etc. In the summer season, watermelons, melons, figs, peaches, apricots, tomatoes, cucumbers, peppers, courgettes, lettuces etc. were sold.

To promote their products, Balev Bio uses social networks, signboards and tastings in shops to provide as much information as possible about the benefits of its products.

The Bulgarian organic market for fruit and vegetables is not big, however interest in organic consumption has been growing slowly but steadily.

NB

WorldFood Moscow

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Optimistic outlook at 7th Cool Logistics Global Conference

The 7th Cool Logistics Global Conference covered issues in the cooled logistics of perishables ranging from the importance of tracking and tracing to improved schedule reliability.

On the first day of the 7th Cool Logistics Global Conference – held September 29 to October 1 in the Belgian city of Brugge – a broad range of topics surrounding the cooled logistics of perishables was discussed, ranging from changing consumer preferences via the importance of tracking and tracing to improved schedule reliability and a lot in between.

The overall outlook was one of optimism. The expectations for the logistics industry are not as bad as some may think. Paul Bosch, supply chain analyst of Food and Agriculture at Rabobank – financer of 85% of Dutch agricultural companies – said the future appears bright for cold. “Growth rates look pretty good, making the rest of the food market jealous.” The key driver for this process being the increasing penetration of cell phones and refrigerators in developing countries, he said.

That observation was shared by Jan Debaillie, director of Group Logistics at Ardo Group, a Belgian producer of high quality frozen vegetables, fruit, pasta and rice which controls its total supply chain. “We see the categories fresh and frozen grow, not so much in Europe but overseas. Specifically, frozen organic foods in the USA are growing very fast, doubling volumes,” Debaillie said.

Changing customers

Bosch agreed that growth in Europe is low and leading to a switch from volume to value. And where is the value? It appears to become more difficult to get to know the customer. Bosch identified 5 different types of customers that will play an important  role in the market in the coming 10 years. One is the “convenience customer” who doesn’t want to wait and doesn’t want to pay extra but who will drive logistical changes.

Online purchases will be important in this consumer profile. “We are at a turning point where online purchases take away market share from retail and supermarkets,” Bosch said. This process calls for other logistics, a need for greater flexibility and new packaging solutions. In other words, this is a growth area for logistics all the more since a huge increase in frozen sales is expected because those products are easier to deliver to homes.

In this respect, Joachim Coens, President – CEO of the Port of Zeebrugge, said the 21st century is bringing a lot of changes. One of these is the changing consumer. The global buying power defers and that leads to layered demand which needs to be facilitated. Coens sees a clear task for ports in this process. “The role of the port is to bring people together and facilitate. We also have a role in intermodal activity.”

Technological solutions and trends in logistics

Tracking and tracing is important in the timing of onions, said Chayenne Wiskerke, managing director of Wiskerke Onions, the leading Dutch packer and exporter of onions. Its onions are exported to 90 countries across the globe and mainly transported by reefer containers. Wiskerke Onions developed a customised system giving its customers traceability on demand. This real time system, accessible via an app, informs them of the whereabouts and quality of the product. “This tool is a great help with customers of different languages and far-away markets,” Wiskerke said. She also predicted continuous growth in global demand for onions which offers potential for the future of the reefer sector.

Apart from technology, Debaillie signaled other changes in the logistics process. “The logistical lines are as short as possible with less logistical partners.” Moreover, retail distributions centres are changing their policies towards keeping products in stock. “There is less stock in the DC’s, (so they are) asking for shorter lead times and making the supplier more logistical providers than traders,” Debaillie said.

Shipping industry positive

It was not only the producers buoyed about good prospects at the Cool Logistics conference, the shipping industry had positive news to share, as well. “We are not so desperate,” said Alexis Michel, vice president of Group Logistics and Reefer at CMA CGM. “The shipping industry is one of the fastest growing industries with good growth predictions.” Behind this optimism is the fact that the worldwide economy is still growing and the US and Chinese markets are still strong. Michel expects the main market will continue to go west and shared that bigger vessels are becoming the standard.

This observations caused Nigel Jenney, CEO of the Fresh Produce Consortium, to call for teamwork to help get produce out of containers as soon as possible because unloading takes longer with larger vessels and reduces shelf life. “It is important to work together and know what is inside the container,” Jenney said.

Drewry Supply Chain Advisors director Philip Damas highlighted the speed and efficiency in reefer maritime supply chains. Slow steaming and transshipment services have lengthened transit times for reefer containers. Specialised reefer ships remain faster. Although leaving room for improvement, the schedule reliability of containers has improved to about 70% on most routes. Damas added that for reefer ships there are no figures but the reliability is most likely to be higher. Both speed and reliability do not appear to be the key focal points in the logistical process as containerisation continues its march. Drewry expects containerisation to rise to 82% by 2018.

MW

Images courtesy of Cool Logistics Global: http://coollogisticsresources.com/global/

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How Spain’s fruit and vegetables market is evolving

Nielsen’s retail services account manager, Gema del Castillo Tamayo, shared insights into today’s Spanish consumer and where opportunities for growth lie.

Is there scope to increase retail sales of fruit and vegetables in post-recession Spain? At the AECOC Fruit and Vegetable Congress in Valencia in June, Nielsen’s retail services account manager, Gema del Castillo, shared insights into today’s Spanish consumer and where opportunities for growth lie.

Signs of economic recovery

Del Castillo started by looking at whether the market is on the road to recovery. Effectively, European consumer confidence continues to improve, she said, but it is yet to return to pre-crisis levels, namely before the big recession hit Europe (in about 2008). Nielsen data shows that In Spain, consumer confidence has reached levels not seen since 2010. There was 3% growth in the Spanish GDP in the first quarter of 2015, while the CPI fell 0.7%.

Other indicators, such as an increase in employment, car registrations, sales of electrical appliances and electricity consumption also augur well for believing that a recovery has started. The hospitality business, for instance, has stabilised, with beverage sales showing growth since 2013 and for the first time in six years the number of establishments has started to increase again. But Del Castillo warned this is a bit of a wobbly start to recovery that is accompanied by uncertainty.

What’s happening with FMCG sales?

Nielsen’s analysis shows that despite a decline in Spain’s population last year, demand strengthened, though with the downside of a drop in retail prices. Compared to 2013, the value of retail sales last year fell 0.4% and prices 1.1% but the volume was up 0.7%. For fresh produce specifically, sales were 1.2% and prices 1.8% lower as the volume rose 0.6%. But compared to last year, retail sales to this April were up 0.7% in value and 1.1% in volume and prices up 0.4%, with the respective changes for fresh produce being +0.3%, +1.2% and -0.9%. Thus overall the context is one of improved demand and a slowing of the drop in prices.

Key components of the fast-moving consumer goods industry during the first quarter of this year were:

  • Strong pace of new store openings and concentration of the top retail chains
  • Supermarkets and superstores are gaining share from specialist and traditional stores
  • A slowing in relation to the increased market share of private label goods (they have since started to grow again)
  • A stable level of deal proneness

Price-sensitive, bargain-hunting shoppers

On the latter, Del Castillo highlighted that, according to Shoppertrends 2015:

  • 24% of consumers will change stores depending on which one offers the best sales promo
  • 37% rarely change stores but do actively look for the special offers
  • 20% say they know the prices of all the articles they buy regularly
  • 46% say they  know the prices of most of the articles they buy regularly and notice when there is a price change
  • 72% of shoppers believe that food prices have risen in the last year

The last figure shows that while there’s been a deflation of prices, many households have not perceived it, she said.

Trends in fruit and vegetables sales

Last year, fruit and vegetables accounted for 11% of Spanish consumers’ shopping spend, up from 10% in 2011.

Sales in the main categories have grown in volume thanks to lower prices. For fruit, it is oranges that are the winners, representing about 27% of the total fruit volume sold in the 12 months to April this year in Spain. Add mandarin sales (7% of the total), and citrus fruit accounts for one in every three fruits sold. Apples (11%) and bananas (10%) were next hottest in demand.

As for vegetables, potatoes formed 29% of the volume sold over the same period and tomatoes 16% and together they account for nearly one in every 2kg of vegetables bought, but just 31% of the total vegetable spend. Next highest in volume came onions (9%) and peppers (5%).

Nielsen’s household panel data shows fresh produce is accounting for an increasing share of the value among all shopping missions, but particularly in the case of routine ones, which are those involving the biggest spend. It is also increasing across all retail channels, but above all in supermarkets and superstores. The latter are gaining ground, moving from 51% in 2008 to 58% in 2014 in terms of fresh produce sales, compared to 49% to 42% for traditional and specialist grocers.

Opportunities for growth: online and convenience channels

Del Castillo said that as growth opportunities, two areas that have already seen major gains outside Spain are the online and convenience channels.

“The online channel is growing at a much faster rate than offline,” she said, displaying figures showing the value of online fresh produce sales value grew 14.7% for the 12 months to April 2015 while offline sales rose just 2.2%.

Fresh produce accounts for a smaller share of the online shopping basket – for fruit it’s 17% for offline and 9% online –  however there are big opportunities for staples such as potatoes.

The key to increasing online sales is to “earn trust through reliability“, Del Castillo advised, and ways to do this include offering customers a refund if they’re not happy with the produce delivered. In her own experience, Del Castillo said the melon delivered to her by online suppliers is usually much tastier than what she picks herself in person.

“More and more shoppers are buying fresh products online despite retailers being sceptical about the potential of this channel for them. The consumer is definitely ready to do part of their fresh product shopping online, all that is lacking is the retailers’ investment to sell these products online properly,” she said.

The convenience channel, which includes a broad range of outlets including petrol stations, fitness centres and airport and train station shops, is also very promising. Sales of convenience products, such as pre-cut and prepared fruit, salad and vegetables in the UK’s leading supermarkets, are worth €1.7 billion a year, according to Nielsen Scantrack Grocery Multiples data.

JB
Photos of Gema del Castillo by Roger Castellón courtesy of AECOC

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Using juice wastewater to make biodegradable bottles

Biodegradable bottles made from juice wastewater are the goals of the the EU-funded PHBOTTLE project, due to end this month.

Biodegradable bottles made from juice wastewater are the goals of the the EU-funded PHBOTTLE project, due to end this month.

The manufacturing process envisaged would tap into growing consumer demand for environmentally friendly products and could save industry millions in production costs, according to an article published on a European Commission Research & Innovation website.

The bottles would be made of a bioplastic obtained by the fermentation of the sugar-rich fruit juices in production waste.

In the early stages of the project, the researchers demonstrated how a bioreactor could be used to convert the sugars from juice wastewater into polyhydroxybutyrate (PHB), a type of biopolymer (an organic compound). PHB  is moisture and vapour resistant, won’t dissolve on contact with water, has see-through properties and offers good protection against oxygen.

The researchers also developed a process to strengthen the PHB with cellulose extracted from crop waste, and added an encapsulated antioxidant to increase the shelf-life of the bottle’s contents. Another advantage is that packagers would not have to buy any major new equipment to make the bottle, a factor the project hopes will encourage them to make the switch.

“Food packaging is one of the most visible sources of waste, with over 67 million tons generated in the EU every year. Cutting down this waste would mean reduced energy use and carbon dioxide emissions, as well as less waste treatment costs,” the article said.
 


Image source: http://www.phbottle.eu/documentos/poster.zip

Article sources:
A fruit juice bottle made from juice wastewater: http://ec.europa.eu/programmes/horizon2020/en/news/fruit-juice-bottle-made-juice-wastewater
Squeezing every drop of efficiency from juice processing: http://ec.europa.eu/research/infocentre/article_en.cfm?artid=31676
PHBOTTLE: http://www.phbottle.eu/

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EU looking at how to increase acceptance of ‘ugly’ fruit & vegetables

How to increase consumer acceptance of imperfect fruit and vegetables is being examined as part of a European Commission behavioural study on food choices and eating habits.

How to increase consumer acceptance of imperfect fruit and vegetables is being examined as part of a European Commission behavioural study on food choices and eating habits.

The research, taking place in the context of part the Milan Expo 2015, is titled “A behavioural study on food choices and eating habits” and its publication expected by the end of this year, according to the European Parliament’s Committee on Petitions.

It mentioned the research in its response to a petition on offering second-class fruit and vegetables in supermarkets. The petitioner, Germany’s Maxie Schlemmer-Schmidbauer, advocated the introduction of rules allowing fruit and vegetables which don’t meet the required standards to be sold in greengrocer’s shops and supermarkets, to prevent them from being destroyed.

Asked to respond, the Commission told the committee that while specific marketing standards remain in place for 10 types of fruit and vegetables, national authorities can permit the sale of all fruit and vegetables, regardless of their size and shape. “Member States can allow shops to sell products that do not respect the standards as long as they are labelled appropriately so that consumers can differentiate them from those categories defined by marketing standards (e.g.: ‘extra’, ‘class I’ and ‘class II’ fruit),” it said.

In its conclusion, the committee said current EU rules permit Member States to allow the marketing of misshapen fruits and vegetables provided that their presentation is not misleading for consumers. ”In co-operation with Member States and stakeholders, the Commission aims to promote good practices to prevent food waste including social innovation to facilitate use of misshapen fruit and vegetables in the food supply chain and by consumers,” it said.

Image by Taz [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons