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NewS editorial More Leadership and Promotion, not populism With fruit and vegetable consumption declining and obesity and health care spending increasing, one would expect the EC leadership to want widespread campaigns to promote the health benefits of fruit and vegetables. “We, of course, understand by leadership comprehensive and proactive decision making. It is not about authority or populism” declared Jack Welch at the last PMA Fresh Summit Convention, on 25th of October in Orlando. In a context of major health concerns and ultimate economic recession, retail margins have been reduced by the industry and the PMA has been implementing a nationwide promotion campaign to sustain fruit and vegetable consumption. By wishing to impose a drastic reduction in the number of product standards for fruit and vegetables without any agreement with the professionals or with its main producing member states, as announced on 12th November, the European Commission fails to defend the interests of both the producers and the consumers. It has even launched a wide-ranging media campaign to inform people about the potential advantages of such measures before they have even been discussed at Management Committee level. The EC’s intention may be to make fruit & veg more affordable for consumers, but such measures, qualified as “populist” by the Freshfel Europe produce association, would obviously bring lower quality standards for the consumer and put an already very sensitive industry at risk. The EC totally fails to justify its proposal on solid marketing grounds and has omitted any analysis or forecast of its possible consequences. Pierre Escodo, Editor Jack Welch, former President of General Electric, and Ramon Rey, current President of Freshfel Europe. EUROFRESH DISTRIBUTION World Fruit gathering in Moscow Fruit companies from around the World gathered again in the most dynamic market in Europe. World Food once again gathered together a majority of the leading fruit trade companies operating in the Russian market, confirming its high dynamism and 15% growth rate. In 2009 World Food will be divided by sectors, with the Fruit pavilions renamed “World Fruit” (the same will be done in the other food sectors). “We aim to be more focussed on the Russian fruit market in the future” confirms its director, Tony Higginson. Alexport Born 10 years ago to supply the Russian market, over 60% of Alexport’s turnover today is still with Eastern Europe. Russia also helps its 10-20% yearly growth, as the firm supplies mixed trucks with a full range of products. The company celebrated its 10th year with the opening of a large distribution centre in Alblasserdam. Alexport sales are also diversifying in Western Europe, promoting its recognised premium brand Nero. “We distribute Nero in Moscow and are also expanding quite rapidly in the provinces and satellite markets” informs its sales manager Denis Vasiljev. Anecoop Russia Operative since August 21st, Anecoop Russia is actively expanding its sales to various supermarket chains. The leading Spanish export group has been supplying Russia since 1975, but only indirectly. Today its sales to this country reach 40,000 tons, 7,000 tons of which are supplied directly from Spain, out of the group’s total exports of over 300,000 tons. “Our objective is to make the Anecoop brands Bouquet, Black Cat and Nadal popular with the Russian consumers” declares the Anecoop Russia Director Vitaly Valov. Retail sales of citrus fruit and persimmons have been supported since October by ambitious promotion programs targeted at consumers, price promotions in more than 500 supermarkets, activi- Italian flavor at the Russian table There are very few cities in the world without an Italian restaurant. Not surprising since the Mediterranean diet is not only healthy, but very tasty. The participants of the event “European Flavor”evidenced this during the reception organized in the frame of the same project held in Moscow the 25 th of September. The “European Flavor” project, promotes fresh and processed fruits and vegetables from Europe. It is financed by the European Union, the Italian government and the CSO. Among the promoted products are peaches, nectarines, pears, plums, kiwi, red Sicilian oranges and tomatoes. Another organizer of the event was Macfrut exhibition, that promoted Italian apples, grapes and citrus. During the event, Russian importers could get detailed information about the projects and meet in-personal the operators and the producers of fresh fruits and vegetables from Italy, as well as taste the delicious dishes cooked with these ecologically pure products. ties in-store and outdoors and TV spots for a week on 5 Russian channels. 98 OCTOBER NOVEMBER 2 0 0 8 Argentina promotes its fruit The Federal Investment Council of Argentina supports export promotion for the fruit sector, considering it a strategic industry for the economy. Argentina cultivates around 600,000 ha, producing 7.7 million tons. Its quality off-season supplies to the Northern Hemisphere help to sustain more than 500,000 jobs. Production is divided between citrus, 32.5%, grapes, 31.5% (96.5% being for wine), top fruit, 26.5% and stone fruit, 5.3%. Belgium +25% with Russia Belgian products like those of Calsa and other leading exporters are seeing their fastest export growth on the Russian market, particularly with locally-packed pears and Flandria tomatoes and salads. “We are increasing our sales with Russia by 25%, supplying all kind of products in mixed trucks” confirms Bernard Buyck, the Calsa managing director. Calsa’s turnover has increased from €36 million to an expected €41 million this year, with the firm exporting more than 50 references on a regular basis. Brazilian Fruit, high profile “We hesitated many years before coming to Russia”, explains P. N. Pérès, President of the Brazilian Association of Apple Producers (ABPM). “Now we are aware that the Russian market is very attractive to us, and we hope that apples from Brazil will find Russian consumers. Our country has unique climate conditions, which influence the unique taste of our apples”. He is backed by F.C. Segundo, President and Director of COEX: “Our association of melon growers has long export experience and we will be glad to supply our melons to the Russian market. We are sure that once a consumer buys one, he will never
98 OCTOBER NOVEMBER 2 0 0 8 EUROFRESH DISTRIBUTION forget its excellent taste”. Daltex, world table potato leader The Egyptian company is consolidating its world leadership in table potato exports in Russia as well. Out of the 160,000 tons of table potatoes it exports, 22,000 go to Russia. “It is our fastest growing market, our sales have just doubled this season” confirms the Daltex Vice Chairman, Hesham El Naggar. The group runs a local subsidiary in Moscow, as well as in Hungary and Dubai. The Daltex Corporation also exports 30,000 tons of citrus, half of it going to Russia. The group exports 225,000 tons of produce in total and Germany is still its first market, taking 55,000 tons. Chilean fruit company flying high in Russia The second-biggest Chilean grape packer and exporter (735,000 boxes) confirms its strong growth in the Russian market, of the order of 40%. It sells a total of 1.6 million boxes of apples, pears, grapes, kiwifruit and avocadoes. This last product is making the France has a stake in the Russian market According to Christophe Monier, a trade attaché at the French Embassy, France should take more decisive steps in order to establish its position on the Russian market. «We do our best in helping the French companies to find trade partners in Russia, but they have to take into an account the specifics of the Russian market and its demands” declared Nathalie Chtykalo, an agro-food consultant. “The competition with other countries is very high, and French exporters should take more decisive 4 1 steps». During the previous year, the export of fresh fruit and vegetables registered $52 million or 5% from all French agricultural export volumes to Russia. At the same time, the export volumes of some fruit and vegetables has increased by almost 30% compared to the 2005 data, for instance, the export of apples registered more than a half of the produce sold – 49 million tons for a value of $23 million. The total export grew by 80% compared to the 2005 data. These figures show 1. Alexport - Denis Vasiljev, 2. Anecoop - Vitaly Valov, 3. Argentina - Carolina Seleme, 4. Calsa - Bernard Buyck, 5. Daltex - Hesham El Naggar, 6. Chilean Fruit. 5 6 3 the vast potential niche for the French fresh fruits and vegetables export to Russia. At the moment, France is outside top 20 countries exporting their fresh fruits and vegetables to Russia. According to Nathalie, it is the imperfection of the logistics system that lowers the export of fresh fruits and vegetables from France. There are very few French exporters ready to load mixed goods in one truck. Therefore, Russian companies have to order mixed trucks from the Netherlands. 2 NewS strongest progress at the moment for Frutícola Alta, which is diversifying its range and destinations. Le Quattro Stagioni expands in Eastern Europe “Our company has been exporting traditional Italian fruits and vegetables for 20 years”, says P. Bussadori, the General Manager. “This experience enables us to provide our clients with the best produce and the best service”. The company is a supplier of X5, Lenta and other Russian retailers, as well as such import-
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