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CBI News Bulletin November / December 2005

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<strong>November</strong>/<strong>December</strong> <strong>2005</strong> No 306<br />

The <strong>CBI</strong> consultant<br />

Yolanda Netto,<br />

Stationery items:<br />

Ten per cent<br />

inspiration,<br />

ninety per cent<br />

perspiration<br />

The new Fair Flowers Fair Plants<br />

label<br />

A+A <strong>2005</strong>: Dressed for danger<br />

news<br />

<strong>News</strong>, views and backgrounds<br />

BULLETIN<br />

Orders poor in for<br />

the <strong>CBI</strong>-supported coffee growers<br />

at Tea & Coffee <strong>2005</strong><br />

Coffee kick


The <strong>CBI</strong>: Your European Partner<br />

for the European Market<br />

The <strong>CBI</strong> (Centre for the Promotion of Imports from developing<br />

countries) is an agency of the Dutch Ministry of Foreign Affairs.<br />

The <strong>CBI</strong> was established in 1971. The <strong>CBI</strong>’s mission is to<br />

contribute to the economic development of developing countries<br />

by strengthening the competitiveness of companies from<br />

these countries on the EU market. The <strong>CBI</strong> considers social<br />

values and compliance with the most relevant environmental<br />

requirements to be an integral part of its policy and activities.<br />

The <strong>CBI</strong> offers various programmes<br />

and services to its target groups:<br />

Market Information<br />

A wide variety of tools to keep exporters and Business Support<br />

Organizations in developing countries in step with the very latest<br />

developments on the EU market.<br />

Company Matching<br />

The company matching programme links well-versed suppliers<br />

in developing countries to reliable importing companies in the<br />

EU and vice versa.<br />

Export Development Programmes (EDPs)<br />

EDPs are designed to assist entrepreneurs in developing<br />

countries in entering and succeeding on the EU market and/or<br />

in consolidating or expanding their existing market share.<br />

Training Programmes<br />

Training programmes for exporters and Business Support<br />

Organizations (BSOs) on, among others, general export<br />

marketing and management; trade promotion; management of<br />

international trade fair participation, and developing<br />

client-oriented market information systems.<br />

BSO Development Programme<br />

Institutional support for capacity building for selected<br />

Business Support Organizations.<br />

For detailed information on all <strong>CBI</strong> programmes and services,<br />

visit the <strong>CBI</strong> website at www.cbi.nl<br />

Please write to us in English, the working language of the <strong>CBI</strong>.<br />

Mailing address<br />

The <strong>CBI</strong>, P.O. Box 30009, 3001 DA Rotterdam, The Netherlands<br />

Phone +31 10 201 34 34, Fax +31 10 411 40 81<br />

E-mail cbi@cbi.nl, Internet www.cbi.nl<br />

Office<br />

WTC-Beursbuilding, 5th floor, 37 Beursplein, Rotterdam,<br />

The Netherlands<br />

Editorial staff<br />

H. Verhoeven (Editor-in-chief), J. Vereijken (Editorial Management)<br />

L.P. den Hollander (Editorial Production) S.D. Teeuwen (Editor)<br />

Circulation 6850, Frequency 6 times annually<br />

Editing and layout Admix Publieke Werken, Rotterdam<br />

Print PlantijnCasparie Den Haag<br />

p21<br />

p27<br />

p7<br />

p31


contents<br />

Export Marketing & Management<br />

4 The <strong>CBI</strong> consultant, Yolanda Netto: Ten per cent inspiration, ninety per cent<br />

perspiration<br />

European Market Information<br />

6 The new Fair Flowers Fair Plants label<br />

8 What MPS can do for you<br />

9 Fighting the EU laws that are hindering biotrade<br />

10 AccessGuide: Offline Q & A, Part 4<br />

<strong>CBI</strong> EU Market Surveys, excerpts from the EU Market Surveys for:<br />

12 Electronic components: EU to relocate production of electronic components<br />

13 Engineering products: Developing countries gaining ground in engineering<br />

production<br />

14 Stationery items: Size matters for stationery items<br />

14 Personal protective equipment: PPE market still growing steadily<br />

15 Pipes: Rising demand for pipes and process equipment<br />

16 Medical Devices: EU medical sector looks abroad for cheaper deals<br />

<strong>CBI</strong> Market Briefs, excerpts from the EU Market Briefs for:<br />

17 Pencils<br />

17 Excerise books & pads<br />

18 Protective footwear<br />

18 Business process outsourcing<br />

18 Protective gloves<br />

<strong>CBI</strong> <strong>News</strong><br />

PROMOTIONAL EVENTS<br />

19 Vakantiebeurs 2006: Focus on West Africa and the Balkan<br />

19 Ambiente 2006: Shedding the ‘hand made image’<br />

20 Biofach 2006: Major openings for organic food producers<br />

20 Paperworld 2006: The perfect partner at Paperworld 2006<br />

21 Fruit Logistica 2006: The year’s groceries<br />

21 Iberflora <strong>2005</strong>: Florca members stick together<br />

23 A + A <strong>2005</strong>: Dressed for danger<br />

25 Eye-to-eye with the leaders at ESCRS<br />

26 Tea & Coffee Worldcup <strong>2005</strong>: Coffee kick<br />

TECHNICAL ASSISTANCE / COMPANY VISITS<br />

27 Novel handicrafts: Succes is not just low prices<br />

28 Stationery: No pain, no gain<br />

SEMINARS AND WORKSHOPS<br />

30 FAME XIII: The science of export<br />

32 Train the Trainer Ethiopia: Shopping where Europeans shop<br />

33 Workshop Interior Design: Arts meet commerce<br />

33 Trade Fairs and Conferences<br />

34 Ongoing and Planned <strong>CBI</strong> Activities<br />

36 List of current <strong>CBI</strong> publications<br />

Coverphoto:<br />

Coffee harvest in Peru (see page 26)<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 3


Export Marketing & Management<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 4 Export Marketing & Management<br />

<strong>CBI</strong> consultant Yolanda Netto (photo: fotobureau De Jong,<br />

Bekedam & Van Es).<br />

Creativity is cool, but in office<br />

supplies discipline and drive<br />

matter at least as much, says<br />

<strong>CBI</strong> consultant Yolanda Netto<br />

If you ignore Tipp-ex and the Post-It note, you´ll<br />

agree that the market for stationery items has not<br />

been an innovators´ hotspot in the last decade.<br />

Even colour and design don´t travel very far in this<br />

most workaday of sectors. But for those who insist<br />

on getting rich selling pencils or perforators,<br />

here´s a hint from <strong>CBI</strong> consultant Yolanda Netto:<br />

skip the design academy and talk to your granddad<br />

instead. Because what matters in this business<br />

is none other than that old-fashioned mix of<br />

discipline and drive.<br />

Ten per cent<br />

inspiration,<br />

ninety per cent<br />

perspiration<br />

By Stephen D. Teeuwen<br />

The market for stationery, office and school supplies may be<br />

fairly stable in terms of turnover, but behind the lines, battle<br />

after battle is being fought. “You´d think the wave of mergers<br />

and takeovers would have reached an end by now, but it hasn’t”,<br />

says Netto. A recent example is the acquisition of Timmermans,<br />

one of the the largest office product wholesalers in the Benelux<br />

markets – and incidentally one of the last of Belgium´s large<br />

family businesses – by Spicers Limited, a growing European<br />

giant. All that consolidating is not making market access any<br />

easier for small players, like the exporters from Colombia, Costa<br />

Rica, Ecuador, El Salvador, Jordan, India, Indonesia, Peru, the<br />

Philippines, South Africa, Sri Lanka, Thailand and Vietnam


enrolled in the <strong>CBI</strong>´s export development programme for this<br />

sector. As Netto puts it, “The fewer the buyers, the harder it is to<br />

sell.”<br />

The good news<br />

The good news is that consolidation and price pressure are<br />

forcing Europeans to relocate production to low-cost regions.<br />

“The outsourcing wave is not as mature in our sector as it is in,<br />

say, the IT business, but it is definitely gaining momentum,”<br />

says Netto. She estimates that some 20% percent of European<br />

firms currently are prepared to look beyond the obvious –<br />

which, in this case, is China. “The threshold for Europeans to<br />

outsource anywhere other than China is quite high at the<br />

moment, which is a pity, because the Europeans are missing<br />

some prime opportunities elsewhere.”<br />

The challenge for all those exporters from ´elsewhere´, then, is<br />

to present the opportunities they stand for as clearly as they can<br />

on the European market. And this is where that dual commodity<br />

your granddad told you about, discipline and drive, comes in.<br />

“Since there´s so little room for innovation in this market, you<br />

have only two other options for distinguishing yourself”, continues<br />

Netto. “Either you make sure your design is good and<br />

European enough to stand out, or you present yourself as an<br />

outsourcing or private label production partner for a European<br />

company that has its own designs. Both options are hard work,<br />

but particularly the second one means you have to make it your<br />

ambition to be the best manufacturer in your field – not just in<br />

terms of price, but in every single detail of your production and<br />

marketing.”<br />

Genius or perseverance<br />

In the delicate business of designing for foreign markets, producers<br />

should be aware of their own limitations. “Some of the<br />

companies we´re working with in Thailand have shown a real<br />

gift for design and we certainly encourage them to use it. I think<br />

the South Americans have a creative side to develop, too.<br />

Ecuadorian, Peruvian and Colombian leatherwork is a good<br />

example. But many manufacturers are not in this business<br />

because of their creative genius. For most of them, just working<br />

hard at being the best is the most viable route to export<br />

success.”<br />

Netto´s own career illustrates her point. Rather than being<br />

beamed up to business heaven by a sudden burst of inspiration,<br />

she kept a steady march from international marketing studies<br />

through years of management, consultancy and purchasing<br />

positions before going solo a few years ago. “I still apply the lessons<br />

I learned at my first job with C&A in London about always<br />

keeping in touch with the end user”, she recalls. “It´s part of<br />

doing your homework.” Even Netto´s tendency to leave her<br />

hard-won office and school supplies specialism for an occa-<br />

sional foray into other sectors, like food or pet shops, is a matter<br />

of professional discipline. “I do believe in sticking with your<br />

specialism, but looking elsewhere keeps you fresh. The food<br />

industry, for instance, is far more mature than the stationery<br />

and office supplies sector – which means there´s a lot to learn<br />

there.”<br />

Investing and investing<br />

As a <strong>CBI</strong> consultant, Netto now helps exporters from developing<br />

countries look, learn and expand business – mostly by<br />

mixing about ten percent inspiration with ninety percent<br />

perspiration. One of her favourite success stories is of a<br />

Jordanian company that joined the <strong>CBI</strong> programme for this sector<br />

last year. The firm manufactures one of two kinds of chalk.<br />

The first thing Netto pointed out when she met the owner is<br />

that he would only stand a chance in Europe if he started manufacturing<br />

the second kind of chalk as well. “It was a tough<br />

message, because it meant investing in expensive machinery”,<br />

she says. At the first Expro seminar, Netto urged the Jordanian<br />

and a few others towards yet more investments. “I encouraged<br />

them to attend the Paperworld trade fair in Germany simply as<br />

visitors, at their own expense. Looking around there is one of<br />

the best ways of preparing for European market entry.” The<br />

Jordanian was one of a few participants who actually heeded<br />

Netto´s advice. “I´ve rarely seen anyone as excited as he was<br />

after that fair”, she remembers. “He´d talked to potential customers<br />

and competitors and even contacted the producer of<br />

the second type of chalk machine he would be needing. Five or<br />

six months later he´d bought one. He´s a typical example of<br />

someone who got the message and did what it takes, with a few<br />

risks and a lot of hard work.”<br />

“Do what it takes: a few risks and a lot of hard work.”<br />

Shabby follow-up<br />

By contrast, Netto warns that some aspiring exporters lack this<br />

kind of tenacity. One area where this becomes painfully evident<br />

is post-fair follow-up. “This is one of the weaknesses I come<br />

across among exporters from developing countries”, she says.<br />

“A lot of exporters who have attended a trade fair and made<br />

some good contacts fail to follow through. There´s too much<br />

email and too little personal relating.”<br />

Email has its advantages within an established relationship,<br />

Netto explains, but is not suitable for turning strangers into<br />

relations – or superficial inquiries into firm orders. “I encourage<br />

exporters to pick up the phone more often, or to buy a ticket<br />

and fly over for a personal visit. Many exporters don´t do these<br />

things. It´s not necessarily laziness; sometimes there´s a false<br />

modesty and they need to be encouraged to believe in their<br />

product and capabilities. Other times they´re too shy to phone<br />

or visit a purchaser they´ve only met once. Nobody likes being<br />

yapped at by a purchaser who can´t remember your name and<br />

tells you to call back another time because he´s too busy. But if<br />

you want to gain his interest, you have to go through it. These<br />

are often the things that separate failure from success.”<br />

The <strong>CBI</strong>´s stationery items programme was first launched some<br />

12 years ago. Its current cycle began in 2004 and ends in 2008.<br />

Netto expects to begin preparations for a new cycle in 2006, by<br />

visiting a number of new target countries for presentations and<br />

for selecting participants.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 5


European Market Information<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 6 European Market Information<br />

Last <strong>November</strong> a brand new consumer label for<br />

the global flower market was introduced in<br />

Amsterdam. The FFP label (Fair Flowers Fair<br />

Plants), supported by a large group of private and<br />

public players, will definitely help clear the air for<br />

consumers, says Theo de Groot, director of certification<br />

institute MPS. FFP-labelled products are<br />

guaranteed to meet both social and environmental<br />

standards. For growers in developing countries,<br />

the label presents an important competitive<br />

opportunity.<br />

Like many other branches, the flower and plant business<br />

already possesses a rich diversity of labels. However, most or all<br />

of these are business-to-business concepts. What makes the<br />

FFP label unique and potentially important is the fact that it is a<br />

consumer label and combines both environmental and social<br />

standards. It is a response to increasing consumer demand for<br />

proof of socially responsible entrepreneurship. “The FFP label<br />

A newly launched consumer label<br />

combines social and<br />

environmental standards<br />

The new Fair Flowers Fair<br />

Plants label<br />

BY STEPHEN D. TEEUWEN<br />

Theo de Groot, director of MPS.<br />

was not designed to push existing business-to-business labels<br />

off the market, but to provide a means of creating transparency<br />

for the entire supply chain, including the end user”, explains De<br />

Groot, whose organisation MPS is involved in marketing the<br />

new label.<br />

Combining existing seperate labels<br />

The potential market strength of Fair Flowers Fair Plants lies in<br />

the fact that it combines the most important social and environmental<br />

standards covered by existing separate labels in one<br />

new one, says De Groot. “Of course, different growers will opt<br />

for different labels, depending on their market position and<br />

approach. In terms of the standards it represents, an FFP-certified<br />

product will be similar to a combination of MPS-A (environmental)<br />

and MPS-SQ (social). Because the FFP label is<br />

designed to be carried throughout the whole supply chain, it<br />

will be highly recognisable.”<br />

MPS-A and –SQ labels are among several MPS labels that have<br />

gained wide use throughout the global floriculture market since<br />

MPS began in 1995. Others are MPS GAP (good agricultural<br />

practices), which is an answer to the requirements of European<br />

supermarkets united under the EUREP-GAP umbrella; MPS<br />

Quality, a label for growers covering internal process quality;<br />

and MPS Florimark Trade, a combination label developed<br />

specifically for traders.<br />

Traceability<br />

Apart from meeting the MPS-A and –SQ or comparable standards,<br />

FFP-certified growers must be FFP members capable of


The Fair Flowers Fair Plants Label was introduced at Hortifair <strong>2005</strong><br />

in Amsterdam (photo’s Sjoerd de Jonge – Procomm, Rotterdam).<br />

providing reliable production prognoses. Traceability is also a<br />

must within the FFP framework. Products will be sold through<br />

affiliated and certified FFP traders and retailers. The FFP quality<br />

mark will only be added to a product when it reaches the retailer.<br />

“The FFP quality mark allows you to profile yourself as an<br />

entrepreneur who takes indications from society seriously”, the<br />

label´s website announces. “The combination of requirements<br />

in the field of the environment and social aspects also means<br />

that you can rest assured that your operations are ´fair´, and<br />

this is certainly valued by the trade.”<br />

A prime example<br />

The new label was officially presented on <strong>November</strong> 5th at<br />

Hortifair, the world´s leading trade fair for the floriculture<br />

industry in Amsterdam, the Netherlands, by the Dutch minister<br />

of Development Cooperation Agnes van Ardenne. To the<br />

applause of several dozen listeners inhaling the sweet fragrances<br />

of the world´s finest flowers, Van Ardenne lauded the<br />

initiative as “a prime example of public/private partnership”.<br />

The label is a jointly funded initiative of the Dutch departments<br />

of Foreign Affairs and Development Cooperation on the one<br />

hand, and a colourful bouquet of trade unions, floricultural<br />

associations and NGOs involved in development cooperation<br />

on the other. The minister said the project is illustrative of<br />

where development cooperation in her view should be heading.<br />

“We´re living in a globalised world in which we all depend on<br />

each other”, she explained. “Traders and operators need public<br />

institutions to assist them in formulating and complying with<br />

social and environmental requirements that will benefit us all.<br />

Governments must be actively engaged in these issues.<br />

Providing people in vulnerable economies with jobs, healthy<br />

labour conditions and a general sense of perspective is not only<br />

good for their economies and for the environment, it will also<br />

improve global security, making the world a better and safer<br />

place.”<br />

Not just another icon<br />

To begin with, the label will aim at growers and operators in the<br />

four leading floriculture countries that dominate Europe´s<br />

flower business: the Netherlands, Kenya, Colombia and<br />

Ecuador. At a later stage, FFP certification will also be promoted<br />

in other producing countries. To reach the entire supply chain,<br />

FFP will also target wholesalers and florists. By 2006, consumers<br />

will be able to buy FFP products in shops throughout Germany,<br />

Austria and Sweden. After that and depending on market<br />

response, the label is to be rolled out in other EU countries,<br />

including the Netherlands. MPS is involved in the roll-out.<br />

Director Theo de Groot is convinced FFP will become an<br />

important label for growers throughout the developing world –<br />

rather than just another empty icon consumers will soon<br />

ignore. “Consumers are increasingly demanding transparency<br />

and fairness”, he says, “and any business that has a means of<br />

guaranteeing those qualities has an edge on its competitors.<br />

Already, it´s almost impossible to market non-certified products<br />

in the flower and plant industry. As a grower exporting to<br />

European markets, you can´t afford to ignore certification.”<br />

For more information about certification requirements, procedures<br />

and costs, contact the <strong>CBI</strong> via www.cbi.nl or go to<br />

www.my-mps.com or www.fairflowersfairplants.com.<br />

Minister Van Ardenne (Development Cooperation) of the<br />

Netherlands (left), signing the new FFP label and welcoming it as ‘a<br />

prime example of public / private partnership.’<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 7


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 8 European Market Information<br />

What MPS can do for you<br />

Certification can polish your<br />

image, but also help you improve<br />

your performance<br />

With the official launch of a new consumer label for<br />

cut flowers, FFP, during the last edition of Hortifair,<br />

compliance to environmental and social standards is<br />

becoming more and more important. In the long run,<br />

having the right certifications will be essential to<br />

marketing your flowers. Sales aside, certification is<br />

also an effective management tool, providing you<br />

with clear insight into your company’s performance.<br />

MPS is one of the organisations that issues internationally<br />

recognised labels for environmental, social<br />

and quality standards.<br />

MPS began in the Netherlands in 1995 and since has become<br />

an internationally renowned certifier operating in 38 countries.<br />

At the request of the European Commission, it also has a major<br />

role in the introduction of the Fair Flowers Fair Plants label<br />

(FFP) in Europe. As a certifying institute, MPS is qualified to<br />

perform company audits and to issue, or withdraw, any of a<br />

number of MPS and ISO certificates related to environmental or<br />

social standards.<br />

As a grower, you can apply for certification or information<br />

through the MPS website, which also contains detailed information<br />

on the different labels available. On the basis of your<br />

application form, MPS will offer you a contract and send a<br />

regional coordinator to your farm for an initial introduction and<br />

assessment. “At the first meeting the coordinator will go<br />

through the contract with you and advise you as to which certificate<br />

is most appropriate for your company”, explains MPS<br />

international coordinator Piet van ´t Hoff. “The choice for a certain<br />

label will depend on your market and your aspirations.<br />

However, the environmental certificate can be seen as a minimum<br />

standard required in any market or situation.”<br />

Data monitoring<br />

If you start with the environmental certification, MPS requires<br />

you to supply extensive data on your use of chemicals, pesticides,<br />

water and the like every four weeks. “It takes some disci-<br />

pline, but once you are into a routine it is not a problem”, says<br />

Van ´t Hoff. In exchange, MPS sends you a report each quarter<br />

indicating your performance with regard to the standards you<br />

are aiming for. With this report and the assistance of a software<br />

programme available on the MPS website, you can adapt your<br />

practices, for instance by replacing a hazardous “red” chemical<br />

with a “green” one. This approach will help you in two ways.<br />

First, it will give you the information you need to comply with<br />

EU market standards. Second, it provides you with valuable<br />

management information on the use of costly resources like<br />

chemicals, pesticides and fertilisers. The reports of MPS can be<br />

seen as a tool for identifying cost-saving measures.<br />

After one year of reporting, MPS returns for a company audit<br />

and decides on your certification. Thereafter your status is reassessed<br />

with each quarterly MPS report. “Your certificate can<br />

be upgraded or downgraded every quarter, but the decision is<br />

based on the performance of the entire year prior to that<br />

quarter”, explains Van ´t Hoff. “That way seasonal influences<br />

are corrected.”<br />

Step by step<br />

The environmental label is typical for the step-by-step<br />

approach MPS employs. Instead of having to comply to all standards<br />

at once, the data you record are benchmarked and a<br />

grade – from C to A – is given, according to your performance.<br />

Thus you can phase out the use of hazardous chemicals and<br />

look for alternatives. Gradually, you can improve the processes<br />

on your farm and work towards the MPS-A level. After that, you<br />

can choose to raise your social standards (MPS Socially<br />

Qualified) or aim for the requirements of MPS-GAP (Good<br />

Agricultural Practices).<br />

The annual MPS fee varies from region to region. In Central<br />

America and Africa it is between € 1700 and € 2000, Van ´t Hoff<br />

says. In some cases this fee is supplemented with a hectare fee.<br />

For this fee, MPS acquires, processes and monitors data and<br />

sends quarterly reports. The costs for the audits are also covered<br />

by the fee. Because of its role as certifier, MPS cannot give technical<br />

assistance to companies facing problems complying to<br />

the standards. Within the framework of its export development<br />

programmes for cut flowers and young pot plant materials, the<br />

<strong>CBI</strong> does provide this kind of support to its participants, either<br />

at the request of the companies or on the basis of information<br />

from MPS.<br />

More information: www.my-mps.com.


<strong>CBI</strong> and UNCTAD join forces to make EU<br />

markets more accessible<br />

Fighting the EU<br />

laws that are<br />

hindering biotrade<br />

Strict European Union legislation is hindering developing countries from<br />

exporting so-called biotrade products. The <strong>CBI</strong> and the United Nations<br />

Conference on Trade and Development (UNCTAD) have joined forces to<br />

make European markets more accessible for biotrade.<br />

Many developing countries are endowed<br />

with rich forest and marine biodiversity<br />

resources. These resources provide the<br />

basis for a wide range of products, such<br />

as nuts, fruits, natural dyes, oils, medicinal<br />

plants and biochemical compounds.<br />

Most of these products are used by local<br />

populations to make a living, while<br />

others have served as an important<br />

source of innovation for the pharmaceutical,<br />

biotechnology or cosmetic<br />

industries. In this context, the challenge<br />

is to find ways and means to use biodiversity<br />

as a basis for sustainable development<br />

and to create trade opportunities.<br />

The UNCTAD´s Biotrade Initiative and<br />

related BioTrade Facilitation Programme<br />

are a practical response to this challenge.<br />

The programme aims at promoting the<br />

sustainable utilisation and trade of biological<br />

resources in developing countries.<br />

Working in partnership with the <strong>CBI</strong>, the<br />

International Trade Centre (ITC) and the<br />

Swiss Import Promotion Programme<br />

(SIPPO), the BioTrade Facilitation<br />

Programme has supported efforts of<br />

developing countries to alleviate poverty<br />

through the export of biotrade products<br />

and services.<br />

Countering restrictive EU laws<br />

Although the European Union and its<br />

member states are committed to international<br />

biodiversity goals, the EU has<br />

legislation – probably unintentionally –<br />

that restricts access from developing<br />

country biotrade businesses to European<br />

markets. Below are two major examples<br />

of legislation that not only undermines<br />

development objectives of EU and<br />

developing countries, but also impairs<br />

producer innovation and consumer<br />

choice in Europe.<br />

Novel Food Regulation<br />

Regulation EC 258/97 on Novel Food was<br />

enacted in 1997 during a period of heated<br />

concern over the introduction of<br />

genetically modified (GM) foods in<br />

Europe. However, the regulation affects<br />

other less controversial foods as well.<br />

Under the Novel Food Regulation, a food<br />

is classified as ´novel´ if it was not consumed<br />

by Europeans before May 15,<br />

1997. Foods thus classified, among which<br />

are many biotrade products, must be<br />

taken through a complex process before<br />

they can be introduced on the European<br />

market. This process is beyond the<br />

means of many small businesses from<br />

developing countries. Michael Hermann<br />

of the International Plant Genetic<br />

Resources Institute explains: “The regulation<br />

has emerged as a non-tariff barrier<br />

for trade in food items that are often<br />

derived from under-utilized crops and<br />

are viewed as exotic from the EU perspective.<br />

Current practice of the regulation<br />

has discouraged investment in supply<br />

chains, and particularly in market<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 9


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 10 European Market Information<br />

development. Research and development<br />

agencies concerned with neglected<br />

crops and poverty alleviation<br />

are still to recognize the potential<br />

threat, which the regulation poses to<br />

income generation in developing<br />

countries and poor farmers’<br />

livelihoods.”<br />

REACH<br />

Another biotrade bottleneck is the<br />

proposed new extensive EU legislation<br />

on chemicals known as REACH<br />

(Registration, Evaluation and<br />

Authorisation of Chemicals). It is<br />

expected to enter into force next year.<br />

Though targeted at the industrial<br />

chemical sector, it will also have a<br />

direct impact on biotrade products,<br />

notably essential oils. Andrew Jones, a<br />

consultant to the BioTrade Facilitation<br />

Programme and the <strong>CBI</strong> explains: “In<br />

relation to biotrade products, one<br />

category of chemicals that is exempt<br />

from the requirements of REACH is<br />

´substances occurring in nature…not<br />

chemically modified during manufacturing<br />

unless they meet the criteria…as...dangerous...´<br />

Some of the<br />

biotrade suppliers do have existing<br />

products that are within the scope of<br />

REACH. These are, generally, essential<br />

oils and colouring materials.<br />

Most companies in the biotrade programme<br />

already struggle to satisfy the<br />

requirements of the existing Safety<br />

Data Sheets due to financial or technical<br />

constraints, or both. More effort<br />

will be required in this area to build up<br />

the capacity of local technical service<br />

providers to support the exporters.<br />

This needs to be complemented by<br />

careful evaluation of the return on<br />

any investments in new substances<br />

within the biotrade programme.”<br />

Interestingly, the proposed REACH<br />

legislation is strongly supported by<br />

the World Wildlife Fund. The institute<br />

states that REACH “could make an<br />

important contribution to reducing<br />

risk to wildlife and humans from<br />

chemicals by identifying and phasing<br />

out the most harmful ones. REACH<br />

also offers an opportunity to promote<br />

a sustainable, innovative and forwardlooking<br />

chemical industry.”<br />

Nevertheless, the legislation is likely<br />

to have a significant impact on small<br />

and medium biotrade businesses in<br />

developing countries, as they do not<br />

have the means to comply with<br />

REACH.<br />

The <strong>CBI</strong>-UNCTAD approach<br />

The <strong>CBI</strong> and the UNCTAD have charted<br />

the possible effects on biotrade of<br />

both the Novel Food Regulation and<br />

the REACH proposal. On the basis of<br />

their research, they have requested<br />

the European Commission to pay<br />

attention to these issues. With regard<br />

to the Novel Food Regulation, they<br />

and other experts have developed a<br />

discussion paper exploring options<br />

for the revision of the regulation<br />

regarding traditional foods from the<br />

perspective of developing countries.<br />

A workshop is to be organised in<br />

<strong>December</strong> this year presenting the<br />

discussion paper to the Commission<br />

and bringing together different stakeholders.<br />

The study on the possible<br />

effects of the REACH proposal will be<br />

used to communicate to the relevant<br />

actors within the EU on the trade<br />

position of developing countries.<br />

For more information on biotrade, go to<br />

www.biotrade.org. For information on<br />

EU legislation regarding novel food and<br />

chemicals, see the <strong>CBI</strong>s database on<br />

market access requirements at<br />

www.cbi.nl/accessguide.<br />

?<br />

For developing country exporters<br />

targeting European markets,<br />

reliable information is key. The<br />

<strong>CBI</strong> has a question-and-answer<br />

service on European Union<br />

market access requirements<br />

that is accessible via email at<br />

accessguide@cbi.nl. This is the<br />

fifth article presenting a few<br />

examples of questions and<br />

answers posted recently in the<br />

AccessGuide mailbox.<br />

Q: Could you inform me on the EU<br />

requirements for aloe capsules, as I<br />

want to export these as a food supplement<br />

to the EU? Also, can I attach<br />

health claims on my capsules for<br />

marketing purposes?<br />

A: In the European Union the Food<br />

Supplement Directive establishes<br />

requirements for food supplements.<br />

The directive covers all food supplements<br />

containing vitamins or minerals.<br />

Food supplements that include<br />

other ingredients next to vitamins and<br />

minerals must also conform to the<br />

rules for vitamins and minerals laid<br />

down in this directive.<br />

Annex 1 of the directive lists the vitamins<br />

and minerals that may be mar-


Is aloe food or medicine? Is a prawn snack fish or foodstuff?<br />

Send your question to AccessGuide<br />

OFFLINE Q & A, PART 5<br />

keted in the EU. Annex 2 specifies the<br />

forms. To find the directive and check<br />

in the Annex whether your product is<br />

affected by it, go to our AccessGuide<br />

database.<br />

Putting a health claim on your products<br />

is not allowed. Food supplements<br />

may not be supplied with<br />

claims that they can prevent, treat or<br />

cure any human disease. Your label<br />

may not contain any reference to such<br />

properties. If you do want to use a<br />

health claim, your product is no<br />

longer considered a food supplement<br />

but a medical product and must meet<br />

a different set of requirements.<br />

Please note that there are very specific<br />

labelling requirements for food supplements.<br />

These are laid down in<br />

Article 6 of the food supplement directive.<br />

For instance, labelling must<br />

include facts like the names of nutrients,<br />

the recommended portion or<br />

daily dose, and a statement to the<br />

effect that food supplements should<br />

not be used as a substitute for a varied<br />

diet and another statement to the<br />

effect that the product should be<br />

stored out of the reach of young<br />

children.<br />

Go to AccessGuide for more information<br />

on:<br />

• EU legislation: Food supplements<br />

• EU legislation: Medicinal products<br />

• EU legislation: Novel foods<br />

Q: I want to export my prawn snacks to<br />

the United Kingdom. Is my product a<br />

‘fishery product’ or should I look at<br />

the legislation for ‘prepared foodstuffs’?<br />

A: The answer to your question depends<br />

on the amount of fish you put in your<br />

snack. The UK´s Food Safety<br />

Regulations stipulate that a product<br />

like yours can only be classified as a<br />

fishery product if it contains at least<br />

10% fish (see Part 1 of the Fishery<br />

Products and Live Shellfish<br />

Regulation). Please note that you<br />

should check the legislation on prawn<br />

flavourings as well. All the information<br />

you need is available through the UK<br />

food standards agency. Contact the<br />

<strong>CBI</strong> for the agency´s details. As these<br />

are specific UK requirements, they are<br />

not yet included in the AccessGuide<br />

database.<br />

Go to AccessGuide for more information<br />

on:<br />

• EU legislation: Fish and aquaculture<br />

products<br />

• Contact details and website of UK<br />

Food Standards Agency for further<br />

enquiries<br />

Q: I work with small fruit farmers who<br />

want to expand their exports to the<br />

European market. However, I do not<br />

know which markets would be interesting<br />

for small export companies<br />

like these.<br />

A: Good research is very important if<br />

you´re exploring new markets. In your<br />

case, the fair trade market could be an<br />

option. Fair trade organisations aim<br />

specifically at assisting small farmers<br />

to develop their capacity and products.<br />

You might consider exporting<br />

fresh fruits or fruit concentrates for<br />

fruit juices. Both product groups are<br />

part of fair trade programmes.<br />

Go to AccessGuide for more information<br />

on:<br />

• International label fair trade: Max<br />

Havelaar/TransFair;<br />

• Check out the FLO link (Fair trade<br />

Labelling Organisations), where products,<br />

standards and procedures are<br />

described;<br />

• For market research use the <strong>CBI</strong>´s<br />

´Market survey fresh fruit and vegetables<br />

<strong>2005</strong>´, the ´Market survey preserved<br />

fruit and vegetables <strong>2005</strong>´ or<br />

the ´Market survey food ingredients<br />

for industrial use 2004´.<br />

Q: How do I download a document in<br />

pdf format?<br />

A: Documents available on the Internet<br />

as a ´pdf´ file can only be opened if<br />

your computer has a software programme<br />

installed called Acrobat reader.<br />

You can find it on the Internet and<br />

download it free of charge at<br />

http://www.adobe.com/products/acr<br />

obat/readstep2.html.<br />

Once you´ve installed Acrobat Reader,<br />

any pdf files you click on will be<br />

opened automatically. Note that there<br />

are some interesting extra´s on the<br />

Acrobat Reader toolbar to assist you,<br />

such as:<br />

• In pdf-files you can use the binocular<br />

button to search the text. Type in a<br />

keyword and Acrobat Reader will<br />

search the text for this word.<br />

• Select text from the pdf file and copy<br />

the selection for use in another document.<br />

Go to the text button and select<br />

the text of your preference. Click on<br />

the right-hand mouse button and<br />

select ‘copy to clipboard’. The text can<br />

be pasted in a new document.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 11


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 12 European Market Information<br />

The <strong>CBI</strong> regularly publishes EU market surveys. An overview of recently published surveys and some<br />

highlights per survey are presented on the following pages. The complete surveys can be downloaded – free<br />

of charge for exporters and Business Support Organizations (BSOs) in developing countries – from our website<br />

at www.cbi.nl. Go to the download plaza in the exporters or business support section of the website and<br />

click on market surveys. Alternatively, cd-roms of the surveys can be obtained by exporters and BSOs in developing<br />

countries – through a written request to the <strong>CBI</strong>.<br />

ELECTRONIC COMPONENTS<br />

The total share of developing<br />

countries in European Union<br />

imports of electronic components<br />

– not including assemblies – is on<br />

the rise. From 8.9% in 2001, the<br />

share climbed to 14.7% percent in<br />

2004. The share of DCs in EU<br />

imports of electronic assemblies<br />

was 17%. The total production of<br />

electronic components in the EU<br />

decreased by 35% between 2002<br />

and 2003, confirming the ongoing<br />

transfer of production to lowwage<br />

countries due to price pressure.<br />

In total, developing countries supplied<br />

€ 4.5 billion worth of electronic components<br />

to the EU in 2004 and another<br />

€ 4.9 billion worth of electronic assemblies.<br />

Hungary (20.1%), Germany (20%)<br />

and France (18.3%) were the biggest<br />

clients of developing country exporters.<br />

Computers and communication<br />

The most important segments for electronic<br />

components in Europe are the<br />

computer industry (30%) and the communication<br />

industry (21%). The automotive<br />

market, which is expected to rely<br />

more on electronics in the future, and<br />

the consumer market are also of considerable<br />

importance.<br />

Germany is Europe´s biggest market for<br />

the electronic components sector,<br />

although Hungary is showing rapid<br />

growth. France, Spain and the United<br />

Kingdom showed a fragile recovery in<br />

2004. The markets of the Netherlands<br />

and Italy were still sluggish in 2004.<br />

Semiconductors account for the biggest<br />

share within the active components segment.<br />

The European market for semiconductors<br />

was worth € 32 billion<br />

(+10%) in 2004. The European market for<br />

EU to relocate<br />

production of electronic<br />

components<br />

passive components was second only to<br />

Asia Pacific in terms of its performance<br />

among all global markets in 2004.<br />

It will be worth € 4.1 billion in <strong>2005</strong>.<br />

Germany, the UK and France are by far<br />

the three largest markets. On the global<br />

market for electromechanical components,<br />

Europe is steadily losing market<br />

share. Its value decreased by 2.5% to<br />

€ 8.4 billion. The largest market is<br />

Germany, followed by the UK, France<br />

and Italy. Germany and the UK are the<br />

leading markets for electromechanical<br />

components, although the Netherlands<br />

and Italy are growing rapidly as well.<br />

Production of active components was<br />

worth € 4.3 billion in 2003 (-68% compared<br />

to 2002). Passives production<br />

dropped by about one third to € 5.2 billion<br />

in 2003. By contrast, the production<br />

of electromechanical components<br />

increased to more than € 10 billion. One<br />

reason for this is that high-precision<br />

products always have been the domain<br />

of Germany and Switzerland. Production<br />

of electronic assemblies dropped by 9%<br />

to € 22 billion in 2003.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.


ENGINEERING PRODUCTS<br />

Price pressure is forcing more and<br />

more companies in the European<br />

Union to relocate the production of<br />

engineering products to low-cost<br />

developing countries. The price<br />

pressure is even forcing the relatively<br />

cheap new EU member<br />

states to look abroad for cheaper<br />

supplies. As a result, the role of<br />

the developing countries in this<br />

sector is growing.<br />

The term 'engineering products' refers<br />

both to components and to products<br />

assembled for a specific customer. It also<br />

covers those technologies and tools most<br />

widely used in the manufacture of these<br />

products. Generally speaking, the product<br />

development, customer-specific engineering<br />

and final assembly is carried out<br />

by European companies. The detail engineering<br />

(including work preparation), the<br />

production of parts and in some cases the<br />

assembly of parts into intermediate<br />

products can be the focus for developing<br />

country exporters.<br />

Relocation<br />

Already, price pressure on components<br />

and systems has lead to significant relocation<br />

of production to low-cost<br />

developing countries. Most of the<br />

production relocated thus far consists of<br />

large volumes of relatively standard pro-<br />

Developing countries<br />

gaining ground<br />

in engineering<br />

production<br />

ducts. But even smaller EU companies<br />

and companies in the relatively cheap<br />

new EU member states can no longer<br />

avoid outsourcing. In the long run, entire<br />

production lines may be moved to<br />

developing countries. This may result in a<br />

market in the developing countries themselves.<br />

The transfer of European<br />

knowledge to developing country firms<br />

will raise quality and stimulate this trend,<br />

creating growth markets for engineering<br />

products and machines there.<br />

As a result of these trends, EU imports of<br />

engineering products have risen steadily<br />

in recent years. The total value of imports<br />

amounted to € 106 billion in 2004, or 17<br />

million tonnes. The largest importer by<br />

far was Germany, followed by France, the<br />

United Kingdom, Italy and Belgium.<br />

Developing countries supplied a total<br />

value of € 5.5 billion to the EU in 2004,<br />

23% more than in 2003. Developing<br />

countries have enlarged their relative<br />

share in imports to 5.2%.<br />

The EU, a big player<br />

The European Union is the biggest player<br />

in the global engineering market. It produced<br />

more than € 40 billion worth of<br />

electric motors, generators and transformers<br />

in 2004 – far more than Japan<br />

and the United States together. The same<br />

goes for lifting and handling equipment:<br />

in this segment EU production value rose<br />

to almost € 44 billion, roughly twice as<br />

much as Japan and the US.<br />

The production value of machine tools in<br />

the EU increased to approximately<br />

€ 16.5 billion, although it did not return<br />

to the 2002 level.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 13


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 14 European Market Information<br />

STATIONERY ITEMS<br />

Size matters for<br />

stationery items<br />

Due to increasing competition, boosted by low-cost imports from non-EU<br />

countries, consolidation has become a key trend on the stationery market.<br />

Large international companies grow at the expense of smaller, less<br />

organized competitors. In Europe, superstores and e-tailers, especially,<br />

are making inroads into the still relatively fragmented national trade<br />

structures. Between 2002 and 2004, their market share increased by<br />

almost 1% to 10.6%. The role of developing countries is growing.<br />

The stationery market is characterised by<br />

three different types of users: professional<br />

users; small office and home office<br />

users (SoHo); and private users. The<br />

SoHo market is currently the strongest<br />

grower. Germany is by far the biggest stationery<br />

market in the European Union.<br />

In 2004, the German market was worth<br />

€ 6.5 billion. The second and third<br />

largest EU markets were France (€ 5.4<br />

billion) and the United Kingdom (€ 4.7<br />

billion). The EU is one of the world’s<br />

leading manufacturers of stationery, with<br />

a total production value of € 18 billion in<br />

2003. In 2004, the EU imports of stationery<br />

were worth € 7.6 billion. The UK<br />

was the leading importer (17.5% of the<br />

total EU-25 import value), followed by<br />

Germany (15.2%), France (12.7%), Italy<br />

(7.6%), Scandinavia (7%), the<br />

Netherlands (6.5%) and Spain (5.7%).<br />

Product groups<br />

Paper-based items are the biggest product<br />

group imported by EU countries.<br />

In 2004, imports in this segment totalled<br />

€ 2.4 billion, or almost a third of total EU<br />

imports. Office & desk accessory imports,<br />

the second biggest segment, reached<br />

€ 2.2 billion. The third import market,<br />

writing & drawing instruments, accounted<br />

for 21.9% of all imports in this sector.<br />

The remaining product groups accounted<br />

for 19.1% of the stationery import.<br />

The share of developing countries in EU<br />

imports is steadily increasing. Between<br />

2003 and 2004 their share in EU imports<br />

rose from 15,6% to 18.3%. Between 2000<br />

and 2004, imports from developing<br />

countries increased by 19.9%, whereas<br />

overall EU-25 imports increased by a<br />

mere 2%. Among developing countries,<br />

China is the biggest supplier. In 2004, the<br />

Chinese accounted for 14.1% of EU-25<br />

imports.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.<br />

PERSONAL PROTECTIVE EQUIPMENT<br />

PPE market<br />

still growing<br />

steadily<br />

The European Union market for<br />

Personal Protective Equipment<br />

(PPE) is expected to grow by<br />

1.6% annually in the coming five<br />

years. The new EU members will<br />

show higher-than-average growth.<br />

Developing countries supply<br />

roughly half of the PPE bought by<br />

Europeans.<br />

The total EU imports of PPE stabilised in<br />

terms of value in 2003 and rose by 3.6%<br />

in 2004 to € 5.1 billion. Germany<br />

remained the leading importer, with an<br />

import share of 18% in terms of value,<br />

followed by France, the United Kingdom,<br />

Italy and Belgium. The Netherlands


anked seventh and was overtaken by<br />

Spain in 2004. The role of developing<br />

countries remained dominating: 69% of<br />

the volume and 49% of the value of PPE<br />

imports came from developing countries<br />

in 2004. The EU’s leading suppliers of<br />

PPE in 2004 in terms of value remained<br />

China (increased its share to 21%), Italy<br />

(down to 6%), Malaysia (stable at 6%)<br />

and Tunisia (stable at 6%).<br />

Forecasts and growth factors<br />

The PPE market in the EU-15 is estimated<br />

to have been € 8.6 billion in 2004. On the<br />

basis of apparent consumption, the EU-<br />

10 market size can be estimated at about<br />

€ 870 million. The new EU member<br />

states are set to grow at a forecast compound<br />

annual growth rate of 8-9%, outpacing<br />

the European average.<br />

Germany is still the largest consumer of<br />

PPE among the EU15, but expenditure by<br />

end users has decreased. The highest<br />

growth rates are in the United Kingdom,<br />

Spain and Italy.<br />

Due to ageing, the health and care sector<br />

is a growing market in all major EU<br />

countries. Factors like comfort and fashion<br />

are becoming more important and in<br />

several EU countries traditional outfits<br />

are being or will soon be replaced. In the<br />

retail sector (super- and hypermarkets,<br />

department and variety stores) extended<br />

opening hours will<br />

create more employment through the<br />

use of more part timers, boosting<br />

demand for work-wear. Discount chains<br />

have gained huge popularity, but it<br />

should be noted that their investments in<br />

corporate clothing tend to be minimal.<br />

State institutions and other governmental<br />

organisations are among the largest<br />

buyers of work-wear, uniforms and other<br />

PPE. The fight against terrorism is boosting<br />

spending on fire-fighting, catastrophe<br />

control and emergency services.<br />

Another growth booster is the fact that<br />

the total European workforce, particularly<br />

the number of female and part-time<br />

employees, is expected to slightly<br />

increase.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.<br />

PIPES<br />

Rising demand for pipes<br />

and process equipment<br />

The pipes and process equipment industry is characterised by high price<br />

pressure and cost reduction. There is a clear shift of production to lowwage<br />

countries. Even smaller European companies are beginning to look<br />

abroad for sourcing and outsourcing opportunities. This places<br />

exporters in developing countries in a good position. Labour-intensive<br />

and speciality products, as well as sourcing deals, offer prime opportunities.<br />

Three industries are of particular interest for exporters: oil and<br />

gas, water processing and food processing.<br />

The total length of the European pipeline<br />

network for gas was 1.85 million kilometres<br />

in 2004. Total European investments<br />

in gas supplies between now and 2030<br />

are forecasted to be € 381 billion.<br />

Especially in the accession countries<br />

many new pipelines are expected to<br />

be built.<br />

The local water and waste water treatment<br />

market in Europe was worth<br />

approximately € 2.1 billion in 2003.<br />

Between now and 2010, the market is<br />

expected to grow at an average rate of<br />

4.1% per year. The implementation of<br />

national and EU environmental legislation<br />

will also trigger demand.<br />

Industrial demand for machinery for<br />

food, beverage and tobacco processing<br />

in the EU15 grew to € 11.7 billion in 2004<br />

(+9%).<br />

Spectacular growth<br />

Supplies from developing countries to<br />

the EU grew by a spectacular 24% to<br />

€ 6.1 billion between 2003 and 2004. The<br />

volume grew even more, about 31% (to<br />

2.1 million tonnes). As a consequence,<br />

developing countries have enlarged their<br />

relative share in EU imports to 7.2%. As<br />

a whole, EU imports continued to rise.<br />

Their total value amounted to € 84 billion<br />

in 2004 (+6% compared to 2003), or<br />

19 million tonnes (+6%). The largest<br />

importer by far was Germany, followed<br />

by France, the United Kingdom, Italy and<br />

Spain. Pumps were the biggest imported<br />

product group (€ 24 billion), followed by<br />

process equipment (€ 22 billion) and<br />

instruments (€ 13.0 billion).<br />

Industrial demand for pumps and compressors<br />

in the EU15 increased by 8% to<br />

€ 23.3 billion in 2004, after a decline in<br />

2003. An annual growth rate of 2.5% is<br />

forecast until 2006. The market for<br />

domestic cooling and ventilation equipment,<br />

part of the process equipment<br />

market, saw demand rise in the EU15 to<br />

€ 34.6 billion between 2002 in 2004.<br />

Industrial demand for instruments in the<br />

EU increased rapidly, from € 7.8 billion<br />

in 2000 to € 9.4 billion in 2002.<br />

The European market for fittings is<br />

expected to increase more than 2% a<br />

year to € 3.3 billion in 2008. After several<br />

years of decline, the EU market for steel<br />

tubes increased by 5% to 13.2 million<br />

tonnes in 2004. The valves market in the<br />

EU15 is saturated; it consists largely of<br />

replacements. It decreased slightly to<br />

€ 9.7 billion in 2003.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 15


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 16 European Market Information<br />

MEDICAL DEVICES<br />

The share of developing countries<br />

in European Union imports of<br />

medical devices and disposables is<br />

growing rapidly. The total amount<br />

of EU imports in this sector grew<br />

by just under 1% between 2002<br />

and 2004, whereas imports originating<br />

in developing countries<br />

grew by over 10%.<br />

Along with the United States, the<br />

European Union is the world’s leading<br />

market for medical devices and medical<br />

disposables. With a population of 454<br />

million people, the enlarged EU has an<br />

abundance of potential end-users, while<br />

its strong economy is encouraging high<br />

per capita consumption in this sector.<br />

In 2003, the total value of consumed<br />

medical devices and disposables was €<br />

19 billion. The total production within<br />

the EU of medical devices and medical<br />

disposables amounted to € 24 billion.<br />

The main players in the industry are<br />

Germany (50% of production), Italy<br />

EU medical sector<br />

looks abroad for<br />

cheaper deals<br />

(16%), France (11%) and Denmark (5%).<br />

A few large enterprises control the<br />

European market for this sector. At the<br />

same time the EU is facing growing competition<br />

from non-EU countries. High<br />

labour costs are forcing manufacturers to<br />

increasingly shift production to developing<br />

countries.<br />

Import figures confirm this trend.<br />

Imports from developing countries comprise<br />

about 5.4% of total imports.<br />

However, the value of imports from<br />

developing countries is growing much<br />

faster than the overall imports: while<br />

total imports grew by just under 1%<br />

between 2002 and 2004, imports from<br />

developing countries grew by over 10%.<br />

The value of EU imports of medical<br />

devices and disposables was € 34 billion<br />

in 2004. Germany is the largest EU<br />

importer, followed by France and the<br />

United Kingdom. Together, these three<br />

countries account for almost half (44%)<br />

of total EU imports. Other importers<br />

include the Netherlands (12%), Italy<br />

(10%), Belgium (8%), Spain (5%). The<br />

new EU members account for 5% of total<br />

imports, the remaining EU countries for<br />

16%.<br />

Go to www.cbi.nl for a free copy of the<br />

complete survey.


Pencils<br />

Market Briefs provide in-depth information on one particular product or sub-product group on<br />

the European Union market. Market Briefs are only available on the <strong>CBI</strong>’s website (www.cbi.nl).<br />

They can be downloaded free of charge by exporters and representatives of Business Support<br />

Organisations in developing countries. Recently four market briefs have been published.<br />

The consumption of pencils in<br />

Germany, the United Kingdom,<br />

France, Spain, the Netherlands and<br />

Scandinavia slightly declined to a<br />

total sales value of €195.6 million<br />

in 2004. The share of developing<br />

country suppliers in these countries´<br />

imports, however, grew from<br />

37% in 2002 to 41.8% in 2004.<br />

Germany used the most pencils, achieving<br />

a sales value of € 70.9 million in<br />

2003. The British pencil market is expected<br />

to grow to a value of around € 49<br />

million by 2007. The French market<br />

showed a small decline in 2003, but market<br />

analysts expect this market will<br />

recover and grow to a value of around<br />

€ 40.4 million in 2007. The Dutch market<br />

showed a marginal recovery in 2004.<br />

Over the next few years the Dutch pencil<br />

Exercise books & pads<br />

The total value of the exercise books and<br />

pads market was € 280.9 million in 2004.<br />

The exercise books market accounted for<br />

51.8%, or a value of €145.4 million, and<br />

pads for the remaining €135.5 million.<br />

France is the leading market for exercise<br />

books with a consumption of € 34.1 million.<br />

In 2003, the French consumption of<br />

exercise books increased by 1.6% and the<br />

market is expected to grow to around<br />

€ 36.2 million. The French memo & refill<br />

market pads market, on the other hand,<br />

market is expected to remain virtually<br />

flat. The Spanish pencil market showed a<br />

slight decline in 2004, but is expected to<br />

grow to a value of approximately € 14.7<br />

by 2007. In Scandinavia, pencil consumption<br />

remained rather flat in 2004 at<br />

a total sales value of €12.6 million; this<br />

figure is expected to remain stable in the<br />

coming years.<br />

The European Union is home to some of<br />

the world’s leading manufacturers of<br />

pencils. Germany was the leading manufacturer<br />

(€ 109.2 million) in 2003, followed<br />

by France (€ 27.8 million) and the<br />

United Kingdom (€ 21.1 million). The<br />

Exercise books and<br />

memo and refill pads<br />

The consumption of exercise books & pads in Germany, the United<br />

Kingdom, France, Spain, the Netherlands and Scandinavia slightly declined<br />

in 2004. The steady advance of personal computers has put this market<br />

under severe pressure. Office workers, the main consumer group, are<br />

increasingly using electronic means of communication. Opportunities do<br />

exist for exporters from low-cost countries, as price pressure and consolidation<br />

force buyers to look for purchasing alternatives.<br />

Pencil exporters raise<br />

sales to EU<br />

dropped by 1.8% to € 28.9 million. In the<br />

United Kingdom the sales of exercise<br />

books reached a value of € 33.1 million;<br />

pads consumption was valued at € 32.6<br />

million. Germany, the largest combined<br />

market, saw a 2.9% decline to € 70.9<br />

million. The German market is expected<br />

to develop only marginally.<br />

The Dutch market remained stable for<br />

both segments (€15.8 and 11.6 million,<br />

respectively). Like Germany, the Dutch<br />

market is expected to develop only<br />

pencil market has become increasingly<br />

competitive, due to its maturity as well as<br />

increasing pressure of imports from lowcost<br />

countries.<br />

In 2004, total EU-25 imports amounted<br />

to € 233.7 million, an increase of 4.7%<br />

compared to 2003. Germany was the<br />

leading EU importer of pencils (17.3%),<br />

followed by the UK (17.2%), Italy (10.6%)<br />

France (10.4%) and the Netherlands<br />

(5.4%).<br />

Go to www.cbi.nl for a free copy of the<br />

complete market brief.<br />

marginally. In Scandinavia both markets<br />

dropped in 2004.<br />

Consolidation<br />

Throughout the whole of the European<br />

Union, production of exercise books &<br />

pads dropped to a value of € 791.1 million<br />

from € 820.2 million in 2002. The<br />

consolidation occurring in many other<br />

stationery segments is also increasingly<br />

affecting the production of exercise<br />

books & pads. Manufacturers are doing<br />

all they can to gain scale in order to cope<br />

with the increased competition from<br />

low-cost imports from manufacturers in<br />

regions like the Far East and Eastern<br />

Europe. Not surprisingly, the total EU 25<br />

imports rose by 1.2% to € 482.6 million<br />

in 2004. Imports of exercise books & pads<br />

from developing countries rose from<br />

€ 123.8 million in 2002 to € 143.7 million<br />

in 2004. The United Kingdom was the<br />

leading EU importer , accounting for<br />

24.1% of all EU-25 import value.<br />

Go to www.cbi.nl for a free copy of the<br />

complete market brief.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 17


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 18 European Market Information<br />

Protective footwear<br />

Those boots are made for walking<br />

The market for protective<br />

footwear offers good opportunities<br />

for exporters from developing<br />

countries. Keen competition is<br />

forcing European buyers to look to<br />

low-cost supply countries.<br />

Footwear made for working conditions<br />

can be divided into three categories:<br />

safety footwear, protective footwear and<br />

occupational footwear. The protective<br />

footwear segment is expected to show an<br />

annual growth rate of about 1% between<br />

<strong>2005</strong> and 2007 in the EU. Consumers in<br />

Business Processing Outsourcing<br />

India and<br />

Africa in path<br />

of BPO wave<br />

A wave of business opportunities is<br />

rolling towards the developing world,<br />

as not only large European companies<br />

but small- to medium-sized ones<br />

also are likely to outsource more and<br />

more business processes in the coming<br />

years. Among offshore destinations,<br />

India and Africa are in an especially<br />

good position.<br />

Business Process Outsourcing (BPO) has<br />

been defined as ´the delegation of one or<br />

more business processes or functions to<br />

an external provider, who administrates<br />

and manages the selected processes,<br />

based on performance metric´.<br />

Processes often relocated in this way<br />

include human resources, logistics, procurement,<br />

engineering, marketing, sales,<br />

facility operations and management,<br />

legal work, finance and accounting.<br />

The level of offshore BPO among small<br />

and medium-sized enterprises (SMEs) is<br />

still limited, but is expected to grow rapidly<br />

in the short to medium term. Large<br />

companies increasingly are setting up<br />

their own offshore offices, so-called ‘captive<br />

centres’. India is the benchmar-king<br />

region in the field of offshore outsourcing,<br />

but Europe is increasingly looking<br />

at near-shore locations, too. Eastern<br />

European countries like Poland, the<br />

southern Europe are expected to spend<br />

more in the short run and eastern<br />

Europeans will follow in the long run. In<br />

2004, 61 millions pairs of protective<br />

shoes were sold in the European Union<br />

at a total value of € 1.7 billion.<br />

Production, meanwhile, slowed down in<br />

almost all EU countries between 2001 and<br />

2003, by an average of 6.7% (in terms of<br />

value) each year. Italy remained the leading<br />

producer. Competition on the protective<br />

footwear market is expected to<br />

steadily increase, creating further opportunities<br />

for exporters in low-cost coun-<br />

Czech Republic and Hungary, are gaining<br />

popularity. Africa’s share is also growing,<br />

thanks largely to the absence of language<br />

barriers in the north (French) and the<br />

south (Dutch and English). Africa’s relative<br />

cultural and geographic nearness to<br />

Europe is also an advantage.<br />

Offshore call centres<br />

7.5% of European call centres was<br />

engaged in offshore outsourcing in 2003.<br />

Another 2% was thinking of outsourcing<br />

in the next 36 months and 6.5% in the<br />

long term. On the whole, the United<br />

Protective gloves<br />

Protective<br />

gloves market<br />

saturated<br />

The European Union market for<br />

protective gloves, particularly<br />

leather and textile gloves, is saturated.<br />

Consumption is stable and<br />

imports are increasing, firing up<br />

competition and differentiation<br />

among established (brand) manufacturers,<br />

and price competition<br />

among private label manufacturers<br />

and importers.<br />

EU consumers spent a total of € 1,156<br />

million on protective gloves in 2004. The<br />

market for this product is expected to<br />

grow 2.3% per year to an estimated market<br />

size of € 1,238 million in 2007.<br />

Germany was the biggest EU market for<br />

tries. The leading factors for these<br />

exporters have to do with the right combination<br />

of price, product quality and reliability<br />

of deliveries and delivery times.<br />

The role of developing countries in EU<br />

imports for this segment is clearly:<br />

whereas in 2002 32% of EU imports came<br />

from developing countries, in 2004 the<br />

figure was up to 40%. The United<br />

Kingdom became the leading importer,<br />

passing Germany in 2004.<br />

Go to www.cbi.nl for a free copy of the complete<br />

market brief.<br />

Kingdom, France and Sweden had the<br />

highest percentage of offshore outsourcing<br />

among EU countries (10 to 15%).<br />

Germany and Italy outsourced modestly,<br />

while the Benelux did not at all, though it<br />

is certainly expected to in the near<br />

future. The main reasons for EU companies<br />

to outsource some of their call centre<br />

functions were cheap labour, access<br />

to a multilingual workforce and the need<br />

for a skilled workforce.<br />

Go to www.cbi.nl for a free copy of the<br />

complete market brief.<br />

this sector in 2004, accounting for 20.8% of<br />

total EU consumption. Spain showed the<br />

highest growth rate. The EU imported 15.4<br />

billion pairs of leather, rubber and knitted<br />

textile gloves. Imports in volume increased<br />

by 8.9% from 2003. Of this growth, 1.4% went<br />

to the traditional EU-15 countries and 7.5%<br />

to the ten new EU countries. In terms of<br />

value, a fall of 1.2% for the EU-15 countries<br />

and an increase of 6.9% for the EU-10 countries<br />

resulted in a total increase of 5.6%.<br />

Malaysia remained by far the most important<br />

supplier of rubber gloves, followed by<br />

Thailand, Indonesia, Sri Lanka and China.<br />

China dominated EU imports of non-rubber<br />

protective gloves (leather, textiles and plastic).<br />

The market for textile and leather protective<br />

gloves is producing many product<br />

innovations or modifications, mainly based<br />

on advantages for end-users or economic<br />

advantages for purchasers. One trend in the<br />

protective gloves market is the growth of the<br />

powder-free and synthetic segments, to the<br />

detriment of latex segments.<br />

Go to www.cbi.nl for a free copy of the complete<br />

market brief.


The motto for the upcoming<br />

Vakantiebeurs tourism fair in<br />

Utrecht, the Netherlands, is ´The<br />

route to success!´ For the dozens<br />

of exhibitors in the <strong>CBI</strong> pavilion,<br />

the fair is definitely a stepping<br />

stone to increasing business, says<br />

<strong>CBI</strong> consultant Willem Reynders.<br />

The Vakantiebeurs, scheduled to take<br />

place from January 10 to 15, is the largest<br />

platform for both the travel industry and<br />

travel-hungry consumers in the<br />

Netherlands. It attracts around 150,000<br />

visitors each year. And the Dutch are<br />

notorious travellers: the average visitor<br />

books 2.5 holidays a year, spending an<br />

average of € 2,600 annually, according to<br />

statistics published by the fair organisers.<br />

The <strong>CBI</strong>-supported exhibitors usually<br />

manage to cash in on the ripe Dutch<br />

market. For the 2006 fair, the <strong>CBI</strong> has<br />

invited some eighty tourism companies<br />

from around twenty-five developing<br />

countries to stake their claim. Reynders<br />

is not yet certain as to how many of them<br />

will actually make it to Utrecht, but one<br />

thing he does know: the <strong>CBI</strong> pavilion is<br />

sure to once again create a buzz among<br />

remote destination travellers. Two items<br />

will especially stand out, he says: a subpavilion<br />

entirely dedicated to West<br />

Africa, and another section focussing<br />

specifically on tourism in the West<br />

Balkan region. “Both regions are new”, he<br />

The <strong>CBI</strong> pavilion will present around<br />

seventeen exhibitors from India,<br />

Indonesia, Peru, the Philippines, South<br />

Africa, Sri Lanka, Vietnam and possibly<br />

Ghana. They will be surrounded by over<br />

4,600 other exhibitors from around 90<br />

different countries presenting ´fresh<br />

ideas, high-quality products, successful<br />

trends and pure creativity´, as the fair´s<br />

website puts it. But Wallage is confident<br />

the <strong>CBI</strong> group will stand out. “Of course,<br />

the sector as a whole is struggling to<br />

maintain sales due to economic pressure.<br />

Supplies are currently exceeding<br />

demand. But the quality, creativity and<br />

Focus on West Africa<br />

and the Balkan at<br />

Vakantiebeurs 2006<br />

explains. “For West Africa we´ll be presenting<br />

very interesting regional packages<br />

including the countries of Ghana,<br />

Benin, Mali, Burkina Faso and Senegal.”<br />

Nearer to home for the Dutch but still<br />

exotic enough, the West Balkan region is<br />

also a promising tourist destination,<br />

Reynders says. “Countries like Albania<br />

and Macedonia offer a unique blend of<br />

natural beauty on the one hand, with<br />

pricing our exhibitors are offering make<br />

them an attractive alternative for<br />

European buyers and importers.”<br />

Wallage adds that the term ´handicrafts´<br />

is becoming less and less applicable to<br />

the <strong>CBI</strong> exhibitors. “First of all, many of<br />

these products are no longer strictly<br />

hand-made. Secondly, the term handmade<br />

tends to evoke the image of a little,<br />

old lady sitting by the roadside in a<br />

developing country trying to sell homemade<br />

trinkets – whereas the companies<br />

in the <strong>CBI</strong> programme increasingly are<br />

ambitious export enterprises with professional<br />

designers and state-of-the-art<br />

rugged mountains and untouched landscapes,<br />

and a wealth of cultural and historic<br />

terrain to explore on the other.”<br />

Where to find the <strong>CBI</strong><br />

The main <strong>CBI</strong> pavilion will be located in<br />

Hall 3 (long haul/exotic destinations)<br />

stand B076, and the Balkan countries in<br />

Hall 10 (Central Europe) stand E038.<br />

Shedding the ´hand-made´<br />

image at Ambiente 2006<br />

The product assortments on exhibit in the <strong>CBI</strong> pavilion at the upcoming<br />

Ambiente 2006 trade fair in Frankfurt, Germany, will be “interesting,<br />

appealing and marketable”, says <strong>CBI</strong> consultant Leo Wallage. The<br />

largest consumer goods fair in the world, Ambiente 2006 will take place<br />

from February 10 to 14 next year.<br />

production equipment.” The product<br />

assortment this year will consist of a<br />

wide variety of gifts and decorations,<br />

with an increasing emphasis not only on<br />

local design, but also on home accessories<br />

and indoor decoration, says<br />

Wallage. The products include wooden<br />

ware, metal ware, basketry, ceramics,<br />

laminated products, terracotta, glassware,<br />

wooden toys, and beaded and wire<br />

products.<br />

Where to find the <strong>CBI</strong><br />

The <strong>CBI</strong> pavilion will be located Hall 1.1,<br />

stand D25.<br />

<strong>CBI</strong> <strong>News</strong> Promotional Events<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong> <strong>November</strong>/<strong>December</strong> Page 19


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 20 <strong>CBI</strong> <strong>News</strong><br />

20 <strong>CBI</strong> supported growers hope to reap the benefits<br />

Marketing of organic products<br />

growing everywhere<br />

Organic agriculture and marketing of organic products are growing<br />

almost everywhere in the world. Organic marketing continues to develop<br />

especially in West European countries, the USA and Japan. In the UK and<br />

Switzerland conventional chain stores clearly claim the biggest market<br />

share. In France and Germany, independent specialist shops boost the<br />

industry. At the BioFach 2006 trade fair in Germany next February, over<br />

20 <strong>CBI</strong>-supported growers hope to reap some benefits.<br />

At least 2,000 exhibitors and around<br />

33,000 visitors from about 100 countries<br />

are expected to attend Biofach 2006, one<br />

of Europe´s leading trade fairs for organic<br />

food products. The fair will take place<br />

Some twelve <strong>CBI</strong>-supported manufacturers<br />

of office and school supplies<br />

from eight developing countries<br />

are busily preparing themselves<br />

for Paperworld 2006, the<br />

next big thing on the calendar of<br />

the office and stationery pro-ducts<br />

industry. The fair is scheduled to<br />

take place from January 25 to 29,<br />

2006, in Frankfurt, Germany.<br />

The exhibitors in the <strong>CBI</strong> pavilion are<br />

from Ecuador, El Salvador, India,<br />

Indonesia, the Philippines, South Africa,<br />

Thailand and Vietnam. Their products<br />

range from paper products, pencils and<br />

wax crayons to photo albums, staplers,<br />

desk and ergonomic computer accessories.<br />

The main opportunities for these<br />

exporters should be in making contact<br />

with European companies interested in<br />

in Nuremberg, Germany, from February<br />

16 to 19, 2006. The <strong>CBI</strong> pavilion will host<br />

over 20 exhibitors from Egypt, Peru, Sri<br />

Lanka, Zambia, Kenya, India, Uganda<br />

and Ecuador.<br />

The perfect partner<br />

at Paperworld 2006<br />

either private label manufacturing or<br />

outsourcing, says <strong>CBI</strong> consultant Yolanda<br />

Netto, who is helping the exhibitors pre-<br />

Biofach also has major trade fairs in<br />

Japan, the United States and South<br />

America. But as far as the organic<br />

growers supported by the <strong>CBI</strong> are concerned,<br />

Nuremberg is the place to go<br />

next February.<br />

Says consultant Jan Tuinte, who helps<br />

run the <strong>CBI</strong>´s export development programme<br />

for this sector, “The market<br />

share of organic food is still increasingly<br />

rapidly and offers excellent opportunities<br />

to exporters from developing countries<br />

who can meet the challenge of European<br />

standards. The companies in our programme<br />

are preparing to do just that.”<br />

The product range to be presented in the<br />

<strong>CBI</strong> pavilion at Biofach will include<br />

organic coffee, cocoa, herbs and spices,<br />

essential oils, dried fruit and fruit juice<br />

concentrate, vanilla, honey, cane sugar<br />

and rice. One of the new features will be<br />

a presentation by seven organic growers<br />

from Kenya. In addition to consumer<br />

trends like environmental and health<br />

awareness, Tuinte notes that the organic<br />

market is currently on the receiving end<br />

of strong support flowing from European<br />

Commission policies.<br />

Where to find the <strong>CBI</strong><br />

The <strong>CBI</strong> pavilion will be located in Hall 4,<br />

stand 4-140.<br />

pare and will be part of the <strong>CBI</strong> team on<br />

hand during the fair to guide and assist.<br />

“In this sector, there is not a lot of space<br />

for product innovation”, she explains.<br />

“You have to distinguish yourself either<br />

by design or price. Seeing the consolidation<br />

trend and price pressure on the<br />

European market are not slowing down,<br />

interest in low-cost manufacturers is<br />

increasing. That´s where these exporters<br />

can enter the field. Their low costs and<br />

good quality make them ideal partners<br />

for outsourcing or private label production.”<br />

Paperworld is one of the sector´s<br />

main gateways to the European market.<br />

Last year´s fair attracted over 2,700<br />

exhibitors and almost 65,000 visitors<br />

from all over the world. Almost a third of<br />

the visitors were retail traders and a<br />

quarter wholesale or foreign (non-<br />

German) traders. The product segment<br />

that drew the most interest was office<br />

supplies (36%), followed by writing and<br />

drawing implements (30%), paper and<br />

foils for office use (27%) and school supplies<br />

(26%).<br />

Where to find the <strong>CBI</strong><br />

The <strong>CBI</strong> pavilion will be located in Hall<br />

10.1, Walkway C, Stand 80B.


The year´s<br />

groceries at<br />

Fruit Logistica<br />

2006<br />

Fruit Logistica, a major European<br />

trade fair for industries involved in<br />

fruit trading, prides itself in offering<br />

exhibitors from developing countries<br />

an excellent opportunity to reach an<br />

international trade public. The <strong>CBI</strong> is<br />

taking a group of participants in its<br />

export development programme for<br />

fresh fruit and vegetables to the 2006<br />

edition in Berlin, Germany, from<br />

February 2 to 4.<br />

“Fruit Logistica is definitely a good opportunity<br />

for fruit and vegetable growers from<br />

developing countries to access European<br />

markets, although their competitors will be<br />

there also”, says <strong>CBI</strong> consultant Jos Leeters.<br />

“Around February, with spring around the<br />

corner, most European buyers begin to<br />

work on their supplies for the year. They´ll<br />

be heading for Berlin with that in mind.”<br />

The <strong>CBI</strong> is still busy enrolling exhibitors for<br />

Fruit Logistica from among a group of 48<br />

fruit and vegetable growers that are participating<br />

in its export development programme<br />

for this sector. The <strong>CBI</strong> pavilion<br />

will probably host around fifteen to twenty<br />

of them next February. “We hope that by<br />

2007, when this programme ends, all 48 of<br />

them will have been to the fair and will be<br />

export-worthy”, says Leeters.<br />

The <strong>CBI</strong>-supported exhibitors will represent<br />

Egypt, Kenya and possibly Jordan,<br />

Mali, Senegal and Uganda. The group will<br />

include both specialists, such as a grower<br />

from Kenya who exports only beans, and<br />

generalists presenting up to ten or fifteen<br />

different products. “For some of them<br />

primary goal at this early stage in their<br />

development is not yet to book huge<br />

orders, although of course we will try, but<br />

to familiarise themselves with the<br />

European market”, says Leeters. “When<br />

they return next year, they will have had<br />

more time to adapt products and processes<br />

and have a stronger position.”<br />

Where to find the <strong>CBI</strong><br />

The <strong>CBI</strong> pavilion will be located in Hall 6.1<br />

Central American growers decide to<br />

continue as a group even after the <strong>CBI</strong><br />

programme ends<br />

Florca members<br />

stick together<br />

Hurricanes, an earthquake and months of heavy rainfall didn´t stop<br />

twenty growers of young pot plant material, ornamental plants and<br />

foliage from Honduras, Guatemala, El Salvador and Costa Rica, from<br />

presenting themselves at the IberFlora <strong>2005</strong> trade fair in Valencia,<br />

Spain, last October. Visitors to their exhibition stands were low in<br />

number, but high in quality. One of the exhibitors sold his entire 2006<br />

production during the show. Also, a majority of the group decided to<br />

continue as an export group after the <strong>CBI</strong> support ends next year.<br />

The twenty growers came to Valencia<br />

specifically to present their companies<br />

and products to potential buyers in the<br />

south of Europe. They are all members<br />

of Florca, a group of companies in the<br />

Central American region selected for<br />

the <strong>CBI</strong>´s export development programme<br />

for this sector three years ago.<br />

The objective of the <strong>CBI</strong> programme is<br />

to increase their exports to the<br />

European Union. Early on this resulted<br />

in the founding of Florca, which stands<br />

El Salvador in Valencia.<br />

for Floriculture Central America. The<br />

programme ends in the spring of 2006,<br />

so this was one of the last promotion<br />

activities the <strong>CBI</strong> organised for the<br />

participants in the framework of the<br />

development programme.<br />

In the past these growers presented<br />

themselves at the Hortifair trade show<br />

in Amsterdam, the largest exhibition in<br />

European floriculture. For their final<br />

<strong>CBI</strong>-supported offensive, however, the<br />

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group selected Spain as a target market<br />

and a gateway to the wider European<br />

market. “The Netherlands is still the<br />

main entrance onto the European market<br />

for this sector”, says <strong>CBI</strong> consultant<br />

Peter de Wit. “More than sixty percent of<br />

the imports of young pot plant material,<br />

ornamental plants and foliage for the EU<br />

enters through Holland. But the Western<br />

European market has more or less stabilised,<br />

whereas southern European markets<br />

are still growing rapidly. That fact, in<br />

combination with the absence of a<br />

language barrier between Central<br />

America and Spain, made the group<br />

decide to attend an exhibition in Spain.<br />

It´s logical. And if you want to present<br />

yourself in Spain, Iberflora is your best<br />

bet. It´s the most well-known ornamental<br />

plant exhibition in the region.”<br />

Quality, not quantity<br />

Fortunately, the Florca growers were not<br />

the only ones to reason thus. The exhibition,<br />

in a brand new complex on the<br />

outskirts of Valencia that is one of the<br />

largest in Europe, drew many growers,<br />

especially from Southern Europe. They<br />

showed a large assortment of beautiful<br />

and sometimes very large ornamental<br />

plants for indoor and outdoor decoration.<br />

As for the results, they were all<br />

about quality, not quantity. “The Florca<br />

participants were impressed by the large<br />

amount of booths of ornamental plants<br />

in the different halls, but saw only a<br />

limited amount of visitors”, says De Wit.<br />

“But the visitors who did come to the<br />

Florca booth were of really high quality.<br />

They really were interested in the products<br />

and many of them made solid<br />

deals.” Says one Florca exhibitor, “At previous<br />

exhibitions we often had a lot of<br />

visitors, but most of them were students,<br />

housewives and plant lovers – whereas<br />

the kind of people we need are growers,<br />

wholesalers and the like. At this exhibition,<br />

it was the other way around.”<br />

During the three days of the exhibition<br />

the participants made at least a hundred<br />

new contacts with potential buyers. One<br />

grower from Costa Rica even managed to<br />

sell his entire 2006 production before the<br />

fair was over. “It was good to have fewer<br />

visitors”, says De Wit, “because that way<br />

we had enough time for those really<br />

interested and operating in our sector.”<br />

The future of Florca<br />

In between deals, the Florca members<br />

had time to discuss the future of their<br />

group after the <strong>CBI</strong>´s involvement comes<br />

to an end next spring. As far as the <strong>CBI</strong> is<br />

concerned, Florca ought to continue<br />

operating as a group. “During the <strong>CBI</strong><br />

programme, we showed individual growers<br />

over and over that they must work<br />

together more: invite other growers to<br />

their nurseries, inform each other about<br />

market trends and unreliable buyers et<br />

cetera. They have to view each other as<br />

colleagues, not competitors.”<br />

The message did hit home during the<br />

<strong>CBI</strong> programme. Growers created small<br />

clusters and opened the doors of their<br />

nurseries to each other. Seven growers in<br />

Costa Rica started an export cluster to<br />

sell directly to customers in Europe. They<br />

are now forming a logistical unit. Their<br />

motto: ´Together we can fill up the (sea-)<br />

container´.<br />

A new group<br />

During the last day of the exhibition the<br />

whole group had a meeting during siesta<br />

time. This resulted in a plan of action for<br />

a so-called ´New Florca Group´. Only<br />

sixty percent of the original group of 45<br />

members decided to participate, but<br />

Costa Rica in Valencia.<br />

those who did committed themselves to<br />

visiting Europe as a group at least twice a<br />

year. “They intend to go to one of the<br />

European floriculture exhibitions to<br />

make contact with (potential) buyers and<br />

to organize a ´road show´ once a year”,<br />

explains De Wit. The road show will<br />

involve travelling to a target country in<br />

Europe together to visit marketplaces,<br />

growers and wholesalers. For 2006 the<br />

group decided to head for Spain again,<br />

partly to solidify contacts made during<br />

Iberflora. “When Florca began, a small<br />

seed was planted, but now we can say a<br />

small tree has grown”, says Florca chairman<br />

Chris Schockert. After three years of<br />

support, the new Florca group members<br />

will go on without assistance of the <strong>CBI</strong><br />

to develop their own promotional activities,<br />

to help each other with EU export<br />

logistics and possibly to engage business<br />

support organisations and other institutes<br />

in their own countries.<br />

A meeting of the ´New Florca Group´ in the<br />

exhibition hall


Dressed<br />

for danger<br />

At A+A <strong>2005</strong>, the <strong>CBI</strong> lures buyers<br />

with a full range of Personal Protective<br />

Equipment (PPE)<br />

By Stephen D. Teeuwen<br />

First it was Katrina, then it was the bird flu. But the perils that beset<br />

some economic sectors are opportunities for others. Much of the bad<br />

news that keeps tongues wagging elsewhere keeps business booming in<br />

the Personal Protective Equipment (PPE) market. At the A+A <strong>2005</strong> trade<br />

fair in Duesseldorf, Germany, last October, nineteen <strong>CBI</strong>-supported<br />

exporters from developing countries presented a full range of PPE products,<br />

showing visitors there isn´t a danger that can´t be faced if you<br />

have the right kind of supplier. Even as China raises the pressure on<br />

prices, the <strong>CBI</strong> exporters feel safe and secure – as far as that’s possible<br />

in a global business.<br />

Dressed for danger at A + A <strong>2005</strong> (photo’s<br />

by Stephen Teeuwen).<br />

Over the past few years, health and safety<br />

have become an issue no company can<br />

afford to neglect. Small wonder that the<br />

<strong>2005</strong> edition of A+A, Europe´s leading<br />

trade fair for the PPE sector, drew a<br />

record number of almost 1,400 exhibitors<br />

and over 54,000 visitors. “The recognition<br />

that investments in the field of safety are<br />

worthwhile, is asserting itself to an<br />

increasing extent”, said Gerd Zeisler,<br />

chairman of the A+A advisory board, on<br />

the fair’s website. A market study by a<br />

German manufacturers´ association,<br />

published during the fair, spotted the<br />

same trend. The overall market volume<br />

in Germany, the largest European market,<br />

is worth a steady 1.3 billion euros,<br />

the survey asserted. That’s a remarkable<br />

fact, considering the massive employment<br />

losses the country has seen in safety-intensive<br />

sectors such as mining and<br />

the manufacturing industry. “More<br />

money is being spent on employee safety<br />

for the remaining employees”, the survey<br />

reported.<br />

All the big guys<br />

At the <strong>CBI</strong> pavilion near the centre of<br />

Hall 5, the upward trend was clearly<br />

noticeable. Although visitor numbers to<br />

the pavilion were slightly down from<br />

2003, buyer interest was definitely up,<br />

said <strong>CBI</strong> consultant Maréchal Desmet Jr<br />

on the final day of the event. “We´ve had<br />

around 1,100 contacts and most are<br />

more serious about doing business than<br />

many visitors we had two years ago”, he<br />

comments. “If you reckon the total consumer<br />

value of the PPE market in Europe<br />

to be around 90 billion euros, than it´s<br />

safe to say that at least a quarter of the<br />

entire European buyer base visited the<br />

<strong>CBI</strong> pavilion this year. All the big guys<br />

were here.”<br />

The exhibitors themselves – representing<br />

Bangladesh, Colombia, India, Indonesia<br />

and Pakistan – agreed without exception<br />

that the mood throughout the fair was<br />

simply humming. “We´ve made some<br />

very promising contacts”, says first-time<br />

exhibitor Claudia Alcantara, general<br />

manager of Colombia´s AdM. Adds<br />

Gopal Fatehpuria of India´s Abhikitri<br />

Impex, “Europe is obviously where the<br />

demand is. It´s clear that due to rising<br />

labour costs in the EU, European buyers<br />

are looking for cheaper supply markets.”<br />

Price matters, says a buyer<br />

Rising costs are indeed a major issue on<br />

the PPE market. Volker Gonschorek, one<br />

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Safety helmet and goggles.<br />

of the numerous German buyers to step<br />

into the <strong>CBI</strong> pavilion during the fair, even<br />

stated that price has become the leading<br />

factor. “Of course quality matters, but<br />

nowadays the only thing we really talk<br />

about in this business is price. I´d say the<br />

price factor constitutes eighty percent of<br />

any deal I make.” Gonshorek’s own<br />

German business is a point in case. With<br />

a buzzing production plant in low-cost<br />

Uzbekistan, the company has a strong<br />

European position. But the Uzbek plant<br />

is reaching its capacity limits. “We either<br />

have to start training new Uzbek workers<br />

or develop additional capacity in other<br />

countries. We’re looking for the most<br />

attractive cost framework.”<br />

Scanning the exhibitors in the <strong>CBI</strong> pavilion,<br />

Gonshorek divulges that few or<br />

none of them can beat the prices offered<br />

by their main competitor, China. “Even<br />

with the import duties imposed on them,<br />

Chinese products are almost always<br />

cheaper than anything anyone else can<br />

offer – even other developing countries.”<br />

Still, Gonshorek admitted that he hadn’t<br />

dropped into the <strong>CBI</strong> pavilion without<br />

reason. “Obviously I’m talking with the<br />

Chinese as well as the <strong>CBI</strong> exhibitors. You<br />

have to keep comparing. And even<br />

though price is pre-eminent, other factors,<br />

such as the quality, reliability or<br />

communication skills of a supplier, can<br />

still tilt the balance.”<br />

Not afraid of China<br />

<strong>CBI</strong> consultant Desmet Jr. is impressed,<br />

but not frightened by ´the China factor´.<br />

“Chinese prices are mind-blowing”, he<br />

concedes. “Their price range is almost<br />

bottomless. Some products have seen a<br />

ninety percent price decrease under their<br />

influence.” But still Desmet remains confident<br />

about the prospects of <strong>CBI</strong>-supported<br />

exporters from other developing<br />

countries. “This year is the first year our<br />

exporters are not afraid of China. They´re<br />

aware of the facts, but the initial shock<br />

has passed. They’ve prepared themselves<br />

to face the competition with superb<br />

quality and with prices that, if not among<br />

the very lowest, are still very attractive.”<br />

With some satisfaction, Desmet points<br />

out that the share of so-called category<br />

III products in the <strong>CBI</strong> pavilion –<br />

products that meet the very highest of<br />

European safety demands – has<br />

increased by around 125%. “It just goes<br />

to show that these exporters are sheer<br />

professionals.”<br />

Optimistic<br />

The nineteen exhibitors under the large<br />

blue <strong>CBI</strong> column seemed to take the<br />

same optimistic stand as Desmet Jr. “Of<br />

course I´m worried about China to a<br />

degree. This is business, after all: if<br />

you´re not worried, you´re not paying<br />

attention”, says Osama Taseer, director of<br />

Tiffiny´s Wear Limited, a workwear manufacturer<br />

from Bangladesh. “But at the<br />

same time, I’m confident of our production<br />

capabilities. I won’t go into detail,<br />

but we’ve made some very good contacts<br />

at the fair. I see excellent opportunities.”<br />

Tiffiny’s Limited is a typical example of a<br />

non-PPE company that moved into the<br />

PPE sector with a view to tapping into a<br />

growth market and broadening its base.<br />

Originally a fashion producer, Tiffiny’s<br />

has been around for over twenty years<br />

and already exports 80% of its fashion<br />

production to Europe. “As far as production<br />

is concerned, PPE is very similar to<br />

fashion and we have the skills to do both.<br />

But in terms of marketing, the two segments<br />

are very different. We´ve appreciated<br />

the support the <strong>CBI</strong> has given us in<br />

exploring this new segment. The <strong>CBI</strong> has<br />

saved us a lot of time.”<br />

Claudia Alcantara´s AdM of Columbia is<br />

another company doing a cross-over into<br />

the PPE sector. AdM began as a manufacturer<br />

of sports gear, but recently<br />

began diversifying its product line by<br />

adding fall arrester equipment. Although<br />

visitors from all over the world visited her<br />

stand, Alcantara was particularly pleased<br />

with the fifteen or so Spanish buyers she<br />

met. “The Spanish market is a high-priority<br />

market for us”, she explains through<br />

an interpreter, “partly because of the<br />

absence of language and cultural barriers,<br />

but also because some of our raw<br />

materials are already from Spain.”<br />

Alcantara was pleasantly surprised by the<br />

fact that both the quality and the price of<br />

her products seemed to be surviving the<br />

scrutiny of A+A visitors. “We keep our<br />

prices down by always looking for new<br />

supplies and buying large quantities.<br />

We’re very flexible.”<br />

Results<br />

The actual results of A+A <strong>2005</strong> won’t<br />

become clear until the exhibitors are well<br />

into the follow-up process, but Desmet Jr.<br />

says they have every reason to have high<br />

expectations. “The exhibitors have<br />

worked hard and have managed to offer<br />

attractive products with a clear added<br />

value in terms of the safety standards<br />

they can meet. Visitors to the <strong>CBI</strong> stand<br />

were not disappointed. We’re going to see<br />

some brisk business following this<br />

event.”<br />

Claudia Alcantara of AdM (left) and her A+A<br />

interpreter.


A representative of a European<br />

medical company looking for a<br />

solution to a quality problem at the<br />

23rd Congress of the European<br />

Society of Cataract and Refractive<br />

Surgeons (ESCRS) in Lisbon,<br />

Portugal, last September, was put<br />

in touch by a <strong>CBI</strong> consultant with<br />

one of three <strong>CBI</strong>-supported<br />

exhibitors from India at the event.<br />

The representative took home<br />

some samples for testing. Within<br />

two days she completed the sampling<br />

and sent back this message:<br />

“Your quality is excellent and we<br />

would like to start negotiating a<br />

deal with you.”<br />

The ESCRS congress is one of the world´s<br />

most important conferences in the field<br />

of ophthalmology. It focuses on cataract<br />

and refractive surgery. This year, some<br />

3,200 doctors from all over the world and<br />

about 1,000 nurses and technicians registered,<br />

as well as more than 190 companies<br />

from all over the world, including<br />

the United States (58 companies),<br />

Germany (34), the United Kingdom (15)<br />

and India (14). After positive experiences<br />

at last year´s event in Paris, the <strong>CBI</strong><br />

decided to send three companies enlisted<br />

in its export development programme<br />

for medical devices to this<br />

year´s ESCRS meeting in Lisbon to<br />

exhibit their products.<br />

The three companies – OmniLens,<br />

SurgiEdge and Susruta – presented a varied<br />

line of fine surgical instruments,<br />

such as micro scalpels, micro scalpel<br />

blades, scissors, forceps, dilators and self<br />

remaining retractors. All of the products<br />

are made of high-quality stainless steel<br />

or titanium. One company, furthermore,<br />

is specialised in intra-ocular lenses in all<br />

well-known configurations: rigid and<br />

foldable lenses et cetera. All three companies<br />

are from Ahmedabad in the<br />

Indian state of Gujarat. India is one of<br />

the leading countries for total eye surgery.<br />

The rising quality of surgery has<br />

also raised demand for high-quality<br />

materials, says <strong>CBI</strong> consultant Leendert<br />

Santema.<br />

Higher turnover, more jobs<br />

The journey to Portugal was well worth<br />

it. One of the three companies reported<br />

that since joining the <strong>CBI</strong> programme<br />

and attending the Paris event last year,<br />

Three Indian firms get a close-up view of<br />

Europe at the world congress for eye specialists<br />

Eye-to-eye with the<br />

leaders at ESCRS<br />

production and turnover have increased<br />

by 25%. The European effort has also<br />

created many more jobs: the number of<br />

employees in his firm has risen from 45<br />

to 175, reports Santema. “Finding skilled<br />

staff was initially an obstacle, but the<br />

management intensified its internal<br />

training programme to make sure they<br />

could maintain their high quality standards.”<br />

This company is already very successful<br />

on the local market as well as in<br />

the field of export. “They face a lot of<br />

competition from the USA, Germany,<br />

England and other companies in India,<br />

but that didn´t stop many doctors, nurses<br />

and technicians from visiting the <strong>CBI</strong><br />

pavilion”, says Santema. The number of<br />

interested distributors that came to the<br />

pavilion was slightly disappointing, adds<br />

Santema, but some companies did send<br />

representatives to negotiate prices, tenders<br />

and possible contract manufacturing<br />

deals.<br />

“The results of participating in two<br />

Medica exhibitions in Germany and two<br />

international ESCRS conferences have<br />

shown without any doubt the value of<br />

the <strong>CBI</strong>’s activities for these companies”,<br />

says Santema. Following the exhibition,<br />

Santema and the three participants put<br />

together a Top 10 list of the most promising<br />

new contacts on the basis of their<br />

experiences in Lisbon. Explains Santema,<br />

“We´ve learned over the years that identifying<br />

the most suitable customers can<br />

be very difficult. What we´re doing with<br />

the top ten list is that both the Indian<br />

exhibitors and I myself will keep track of<br />

how relationships with the top ten develop<br />

over a period of time. That way we<br />

can register whether these relationships<br />

are actually generating more turnover<br />

and in what form: through contract manufacturing<br />

deals or whatever. We believe<br />

this will help us get a clearer picture of<br />

our potential market.”<br />

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Orders pour in for <strong>CBI</strong>-supported<br />

organic coffee growers at<br />

Tea & Coffee <strong>2005</strong><br />

Coffee kick<br />

Everyone knows you can get a kick out of coffee, but for nine organic coffee<br />

growers from Ecuador, Ethiopia, India and Peru that experience took on<br />

new meaning at the Tea & Coffee World Cup event in Hamburg, Germany,<br />

last September. Branching off from Germany´s less specialised Biofach<br />

trade fair for organic products, the <strong>CBI</strong> took the coffee growers to Hamburg<br />

for the first time this year. The results were addictive.<br />

The <strong>CBI</strong>´s export development programme<br />

for organic food ingredients for<br />

industrial use was launched in 2000. As a<br />

part of the programme, the <strong>CBI</strong> regularly<br />

takes participants to the Biofach trade<br />

fair for organic products that is held each<br />

February in Nuremberg, Germany. So far,<br />

about fifty organic farmers from developing<br />

countries have exhibited at Biofach<br />

under the <strong>CBI</strong> umbrella. However, since<br />

the export development programme for<br />

organics began, some fifteen exporters of<br />

organic coffee have joined the group and<br />

coffee importers are not know for<br />

hanging out at Biofach. As an alternative,<br />

the <strong>CBI</strong> decided to participate in the Tea<br />

& Coffee World Cup last September.<br />

Tea & Coffee, as it is also known, is a specialized<br />

trade fair for the European tea<br />

and coffee industry. The event is organised<br />

every two years in a major<br />

European city by the United States´ Tea<br />

and Coffee Trade Journal, the industry´s<br />

leading trade magazine. It started in 1994<br />

in Vienna. The <strong>2005</strong> show was the most<br />

successful Tea & Coffee World Cup yet,<br />

perhaps because Hamburg is Europe’s<br />

most important coffee and tea port.<br />

More than 500 exhibitors and 4000 visitors<br />

descended on Hamburg.<br />

Orders galore<br />

For the <strong>CBI</strong> exhibitors, the participation<br />

was a great success. They registered<br />

Negotiations going on at Tea & Coffee.<br />

some 275 visitors to the <strong>CBI</strong> pavilion,<br />

which was strategically located between<br />

the two halls of the exhibition. More<br />

importantly, the quality of these business<br />

contacts was high: a big proportion of<br />

the visitors were importers and therefore<br />

potential clients. The majority of the <strong>CBI</strong>supported<br />

exporters already booked<br />

several orders during the fair – a total of<br />

35 all together. Most exporters expect<br />

even more orders to result from their follow-up<br />

activities. The nine coffee companies<br />

included three cooperatives from<br />

Peru, with conventional and organic coffee.<br />

Two of these have acquired Fair<br />

Trade and Utz Kapeh certification.<br />

From Ethiopia, two coffee unions blended<br />

in, also with organic and conventional<br />

coffee. There were also two exporters<br />

from Ecuador, one cooperative and one<br />

private company, and two private companies<br />

with organic coffee and tea,<br />

spices and herbs from India. The Green<br />

Development Foundation, a Dutch NGO<br />

active in the coffee and cocoa sector,<br />

participated with one exporter. The <strong>CBI</strong><br />

works together with this organization,<br />

assisting companies supported by the<br />

foundation in their marketing activities.<br />

Less overproduction<br />

In general, the coffee market has recovered<br />

from the dramatically low price<br />

levels of past years and supply and<br />

demand are more balanced now than<br />

before. However, the market is still too<br />

low for producers with above-average<br />

production costs. As this situation is not<br />

expected to change in the near future,<br />

these producers are forced to adapt. The<br />

position of organic coffee is slightly different.<br />

There is less overproduction in<br />

this segment, partly due to poor crops in<br />

high-volume countries like Mexico and<br />

Peru, which means less difficulties for<br />

suppliers to market their coffee. The<br />

growth of the organic food sector as a<br />

whole has recovered recently to between<br />

5 and 20%.<br />

Convenience coffee<br />

Another trend in the coffee market worth<br />

mentioning is increasing sales of ´convenience<br />

coffee´. In the Netherlands, for<br />

instance, almost 25% of all coffee is consumed<br />

in the form of coffee pads.<br />

Recently, Philips celebrated the sales of<br />

10 million Senseo coffee makers since<br />

the concept was rolled out in 2001.


Success is like a magnet in a hardware<br />

store. Perhaps that explains<br />

why <strong>CBI</strong> consultant Leo Wallage,<br />

on recent technical assistance<br />

missions to South Africa and the<br />

Philippines, ended up visiting ten<br />

success-hungry exporters of<br />

novel handicrafts, rather than just<br />

the six companies in these countries<br />

currently enrolled in the <strong>CBI</strong><br />

programme for this sector. “That’s<br />

what happens in a programme<br />

that has fame and fortune embedded<br />

in its very structure”, he comments.<br />

But fame and fortune don´t<br />

come easy, he adds: there´s more<br />

to success than low prices.<br />

The novel handicrafts programme covers<br />

the home interior and decoration, accessories<br />

and utilities segments. Of the three<br />

South African participants originally<br />

enrolled in this cycle of the programme,<br />

one company from Cape Town, will join<br />

the <strong>CBI</strong> in exhibiting at Ambiente next<br />

year. Ambiente is a major trade fair for<br />

this sector. Ambiente 2006 is scheduled<br />

to take place from February 10 to 14 in<br />

Frankfurt, Germany. Exhibiting at this<br />

fair is a regular part of the <strong>CBI</strong> export<br />

development programme for novel<br />

handicrafts. The company will attend for<br />

the third and last time next February<br />

under the <strong>CBI</strong> umbrella. Wallage is confident<br />

about the company´s prospects:<br />

“They´ve updated and expanded their<br />

assortment of beaded wire products and,<br />

more importantly, the number of artisans<br />

that have a job with this company<br />

has risen from ninety in 2004 to a hundred-and-twenty<br />

in <strong>2005</strong>. Sales and profits<br />

have improved as well. In short, the<br />

future looks good for them.” Of the two<br />

other companies, one is now seriously<br />

concentrating on a different line of products.<br />

The management of the third<br />

company decided to terminate its business<br />

activities in this sector altogether.<br />

Innovation is the keyword for the two<br />

new aspiring exporters from South Africa<br />

that Wallage visited. One features a full<br />

range of attractive and colourfully decorated<br />

ceramics. The other, owned and<br />

managed by a renowned South African<br />

designer, presents a wide and beautiful<br />

range of fabrics for kitchen and home<br />

decoration. Wallage hopes both will soon<br />

enter the <strong>CBI</strong> programme.<br />

The Philippines<br />

In the Philippines, the <strong>CBI</strong> has three par-<br />

In the novel handicrafts sector, exporters learn<br />

to appreciate the cost of fame and fortune<br />

Success is not just<br />

low prices<br />

ticipating companies in the current programme.<br />

One will attend Ambiente for<br />

the first time in 2006, another for the<br />

second time and the third company will<br />

exhibit in the <strong>CBI</strong> pavilion the third and<br />

last time. Their product mix ranges from<br />

small wooden furniture and accessories,<br />

vases and other products made from a<br />

mix of resin and natural materials to a<br />

variety of home interior decorations,<br />

utility and gift items. The two new companies<br />

Wallage visited in the Philippines<br />

also feature decorative products for in<br />

the home, such as vases, flower pots,<br />

candle holders and lamp bases. One of<br />

them mainly uses a mix of natural stone<br />

ingredients and resin, the other a material<br />

mix based on styrofoam.<br />

What it takes<br />

So will fame and fortune come within<br />

reach of these novel handicrafts<br />

exporters? Wallage remains confident.<br />

“What strikes me is that every corner I<br />

turn, I´m hit by negative news. Global<br />

recession, falling sales, a high euro and<br />

low US dollar – pessimism reigns and<br />

people are infected by it. But whenever I<br />

look at the results of companies who let<br />

me, all I see is stable or rising figures. It<br />

doesn’t make sense. During the past few<br />

months I´ve seen and spoken to at least<br />

150 producers and exporters of a great<br />

Decorative furniture being hand-crafted in<br />

a Philippinian factory.<br />

variety of products. Not all of them are in<br />

high spirits. But with the right dose of<br />

inventiveness, originality, entrepreneurship<br />

and perseverance, you can go a long<br />

way. And the <strong>CBI</strong> participants are inventive<br />

– they have to be, or the competition<br />

will snow them under. Low prices won’t<br />

save them. Fairly priced, innovative<br />

products will. More and more producers<br />

subscribe to that philosophy. Good for<br />

them!”<br />

Nelson Mandela? A piece of handicraft for<br />

sure…<br />

Technical Assistance <strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong> <strong>November</strong>/<strong>December</strong> Page 27


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 28 <strong>CBI</strong> <strong>News</strong><br />

A hard-line approach leads exporters of stationery,<br />

school & office products to long-term success<br />

No pain,<br />

no gain<br />

Basing your strategic market entry choices on adequate market knowledge<br />

considerably increases your chances of success. The only condition<br />

is that you´re prepared to put in plenty of hard work on adapting the<br />

necessary marketing tools. Ample proof of this hard-line business<br />

approach has been provided by the excellent results in the <strong>CBI</strong>´s export<br />

development programme for manufacturers of stationery, school and<br />

office products throughout <strong>2005</strong>.<br />

Photo albums, stationery & matching gift<br />

articles from Indonesia.<br />

The <strong>CBI</strong> is currently supporting 14 stationery,<br />

school & office products manufacturers<br />

based in Colombia, the<br />

Philippines, Indonesia, Thailand and El<br />

Salvador in their efforts to enter<br />

European markets. <strong>CBI</strong> consultant<br />

Yolanda Netto believes in doing this by<br />

means of what she calls ´a hard-policy<br />

approach´. In this programme, she says,<br />

there´s “no mercy for those who did not<br />

show any or insufficient efforts to prepare<br />

themselves to the best of their<br />

ability.” The strictness is paying off. By<br />

mid <strong>2005</strong> both the total and average<br />

turnovers achieved by the 14 manufacturers<br />

enrolled in the programme had<br />

already exceeded the total result of 2004.<br />

“We expect the total results for <strong>2005</strong> to be<br />

the highest ever achieved by the <strong>CBI</strong> in<br />

this sector”, says Netto.<br />

First-time success<br />

The big trade event for <strong>CBI</strong>-supported<br />

exporters in this sector is the annual<br />

Paperworld trade fair. Usually, exhibitors<br />

new to the field have to attend<br />

Paperworld at least once or twice before<br />

they find their first serious trading partner.<br />

However, at this year´s exhibition,<br />

last January, one of the exhibitors in the<br />

<strong>CBI</strong> pavilion to find a very valuable first<br />

European customer was a first-timer.<br />

Says Netto, “The company in question,<br />

based in Thailand, did it’s utmost to prepare<br />

itself for the fair and has succeeded<br />

accordingly.”<br />

Preparation began with a serious<br />

approach of the <strong>CBI</strong>´s Expro 50 seminar<br />

in June 2004, at which participants wrote<br />

the first rough framework of an export<br />

marketing plan (EMP). “The Thai company<br />

wrote theirs by hand, but it was serious<br />

and provided a solid basis for further<br />

development.” After the seminar the Thai<br />

company took time out to go into the<br />

details of the EMP. The <strong>CBI</strong>´s input, provided<br />

partly from long-distance and<br />

partly during a first visit of the production<br />

location, led the company to adapt<br />

the EMP. “The plan clearly did not end<br />

up in the drawer of a desk, but was used<br />

to adapt some of the marketing tools”,<br />

says Netto.<br />

As a result, the company made a very<br />

good first impression at the Paperworld<br />

exhibition, January <strong>2005</strong>. “The most visible<br />

of the adaptations they´d made, of<br />

course, were the products”, says Netto.<br />

“They clearly got the message that you<br />

have to impress European buyers in that<br />

first one-second glance at your booth. By<br />

developing matching designs that could


e reasonably well presented in product<br />

families, the Thai company attracted a<br />

lot of European buyers.”<br />

Well aware that visitor numbers are no<br />

guarantee, the company went on to put<br />

considerable effort into its follow-up<br />

activities. “They spent a lot of time on<br />

this”, says Netto. “The follow-up was<br />

specifically assigned to two staff members,<br />

to prevent it from drowning in the<br />

daily flood of local and regional business.<br />

This systematic commitment has clearly<br />

paid off, as the company has now<br />

acquired it’s first foothold on the<br />

European market, starting in the<br />

southern region.”<br />

No time for relaxing<br />

But even success in the first year does<br />

not mean you´ve arrived in export heaven<br />

and can sit back and relax. One participant<br />

in the <strong>CBI</strong> programme had to<br />

face the consequences of an important<br />

market trend occurring in Europe this<br />

year. This company, a professional and<br />

hard-working team, bagged a huge contract<br />

in it’s first steps onto the European<br />

market in 2004, by becoming the manufacturing<br />

partner for a large, well-known<br />

European A-brand supplier. In its second<br />

year, however, total sales dropped – simply<br />

because of market trends and not for<br />

lack of hard work on the side of the manufacturer.<br />

Yolanda Netto explains: “On<br />

the one hand, European A-brand suppliers<br />

offer exporters from developing<br />

countries good opportunities to enter the<br />

European market. The A-brands are<br />

increasingly outsourcing parts of their<br />

production to lower-wage countries. Of<br />

course they prefer supplier companies<br />

that know how to provide service and a<br />

good quality-price balance, rather than<br />

just the lowest prices. These are qualities<br />

many of the participants in the <strong>CBI</strong> programme<br />

can offer. On the other hand<br />

however, once you´re producing for an<br />

A-brand trading partner, you become<br />

dependent on the same market influences.<br />

And currently, A-brands in Europe<br />

are having difficulties. The poor economy<br />

is causing many end users to shift<br />

from A-brands to private labels.”<br />

A-brands are still loosing market share,<br />

although the tide is expected to turn in<br />

the next two to five years. “This example<br />

proves the importance of constantly<br />

searching for new partners, even when<br />

success has already come”, says Netto.<br />

Going to Paperworld alone<br />

But even though it takes a lot of hard<br />

work, long-term success is not a dream.<br />

Three participants in the <strong>CBI</strong> programme<br />

for stationery manufacturers have<br />

proven this. They´ve established a<br />

foothold on the European market that is<br />

strong enough for them to take the next<br />

step: exhibit at Paperworld on their own,<br />

after three years of support from the <strong>CBI</strong>.<br />

One of the three is from Peru and manufactures<br />

rulers, geometric sets,<br />

compasses, letter trays and other<br />

injection-moulded stationery items. The<br />

second is from Jordan and manufactures<br />

whiteboards, flipcharts and projector<br />

screens. The third, a company from<br />

Indonesia, manufactures photo albums<br />

and matching stationery and gifts.<br />

All three plan to exhibit at the next<br />

Paperworld event, in Frankfurt,<br />

Germany, from January 25 to 29, 2006.<br />

“With some minor support and long-distance<br />

guidance from the <strong>CBI</strong>, they´ve<br />

been able to acquire exhibition space<br />

opposite the <strong>CBI</strong> pavilion in Hall 10.1”,<br />

says Netto. “We´re working together in<br />

the field of booth development and construction<br />

in order to keep capitalising on<br />

the advantages of a group exhibition.”<br />

One challenge the three independent<br />

firms face, she says, is to make their presentations<br />

so professional that they will<br />

clearly distinguish themselves from the<br />

many competitors from countries like<br />

Hong Kong and China. “The <strong>CBI</strong> may be<br />

very proud of these three manufacturers”,<br />

concludes Netto, “not only because<br />

of the positive export development<br />

results they have shown in the past three<br />

years, but even more because they offer<br />

proof that the <strong>CBI</strong>’s goal to help<br />

exporters achieve long-term successes<br />

can be realised.”<br />

Rulers, geometric sets, match sets, protractors,<br />

stencils, triangles, French curves<br />

and compasses from Peru.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 29


Seminars and Workshops<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 30 <strong>CBI</strong> <strong>News</strong><br />

Anyone undergoing two full weeks<br />

of intensive lectures, discussions,<br />

assignments and excursions on the<br />

complexities of export marketing and<br />

trade promotion techniques – five<br />

days a week, eight hours a day – is<br />

likely to have a hard time summing it<br />

all up. But ask a few of the participants<br />

in the <strong>CBI</strong>´s Fame XIII seminar<br />

and you´ll get the complete works in<br />

two words: preparedness and focus.<br />

“That´s what it´s all about.”<br />

Mrs. Melicia J. Perena from the Philippines<br />

(photos De Jong,<br />

Bekedam & Van Es, Rotterdam).<br />

FAME XIII trainer Wybren Bouwes warns BSO<br />

representatives: ´The EU market is not a soukh´<br />

The science of<br />

export BY STEPHEN D. TEEUWEN<br />

The thirteenth Fame seminar took place<br />

from September 19 to 30 just a stone´s<br />

throw away from the <strong>CBI</strong> office in downtown<br />

Rotterdam, the Netherlands. The<br />

Fame seminars, held twice a year, offer<br />

representatives of Business Support<br />

Organisations (BSOs) in developing<br />

countries the opportunity to familiarise<br />

themselves with export marketing and<br />

trade promotion techniques. Participants<br />

are mainly employed by chambers of<br />

commerce, industry associations, export<br />

councils and the like. The two-week<br />

seminars are aimed at increasing their<br />

knowledge of trade structures and business<br />

practices on European markets, as<br />

well as equipping them with tools for<br />

matching the needs of their countries´<br />

exporters with European market<br />

demands. Also, participants improve<br />

their skills in designing and implementing<br />

export development programmes<br />

and benefit from sharing knowledge and<br />

experiences with colleagues from all over<br />

the developing world.<br />

The power of interaction<br />

The thirteenth edition brought together<br />

some thirty BSO representatives from<br />

eighteen nations and several continents.<br />

“The mixture of countries represented at<br />

the seminar is very enriching”, says<br />

Charles Tumbo of Kenya´s Export<br />

Promotion Council. “You soon discover<br />

that BSOs across the world face many of<br />

the same challenges. Through networking<br />

we can help solve each other´s<br />

problems.” Seminar coordinator Wybren<br />

Bouwes, a retired Dutch import and<br />

export veteran happy to share his knowledge<br />

and experience with younger successors,<br />

says the Fame seminar is structured<br />

so as to stimulate this kind of interaction<br />

among participants. “In terms of<br />

actual lectures, we probably could cut<br />

the seminar´s duration in half if we<br />

wanted to. But the group assignments,<br />

discussions, participants´ presentations<br />

and excursions on the Dutch market add<br />

a lot of value to the content. Participants<br />

learn as much from each other as they<br />

do from the lectures.”<br />

This time round, the participants were<br />

particularly open-minded and eager to<br />

learn, Bouwes adds. “The average age in<br />

this group was thirty-three, which is<br />

younger than usual. Perhaps that contributed<br />

to the fact that they were exceptionally<br />

active and assertive. From the<br />

coffee break on day one, we noticed by<br />

the noise they were making and the fun<br />

they were having how well they got on<br />

together and how eager they were to<br />

challenge each other and learn as much<br />

as possible.”<br />

Be prepared<br />

As for effectiveness, the Fame seminar<br />

seemed to have left its marks on participants<br />

by the end. “The main message for<br />

me is that if you want to export to<br />

Europe, you have to be thoroughly prepared”,<br />

says Jorge Hernandez, an international<br />

business consultant for the<br />

Guatemala Chamber of Industry. “You<br />

can´t just get up one day and decide to<br />

start exporting. The seminar showed me<br />

more than ever that you have to have a<br />

detailed export marketing plan, you have<br />

to know all about European import legislation,<br />

and you have to know which of<br />

your products you´re going to focus on<br />

for exports. I already knew you have to<br />

be prepared. But the seminar showed me<br />

what that really means and how to do it.”<br />

Jane Perena of the Philippines´ Chamber<br />

of Furniture Industries, drew much the<br />

same conclusion. “For me, it´s all about<br />

focus, not just knowing what you want<br />

yourself, but also being clear about what<br />

the market wants. A lot of our businesses<br />

have an idea, they have some money, a<br />

few products they think are good – and<br />

they think that´s enough. But it´s not.”<br />

Know your price<br />

Hernandez´ and Perena´s words echoed<br />

what trainer Wybren Bouwes told the


group in a lecture on negotiating skills.<br />

“Preparation is one of the most important<br />

things”, he stressed. “You have to<br />

know your product, know your buyer<br />

and know your price. In Europe, buying<br />

is a science nowadays. European buyers<br />

are highly professional. So before you<br />

start negotiating, you need to know your<br />

buyer´s background, what he wants, how<br />

he operates, what he stands for. You need<br />

to be extremely well informed on prices,<br />

products, packaging. If you don´t prepare<br />

yourself, he´ll know more about<br />

your product than you do. Also, you need<br />

to establish beforehand what is likely to<br />

be the big issue in your negotiations. Try<br />

to imagine what will be the crucial problem.<br />

Size? Packaging? Shipping? Find<br />

out and prepare. And be prepared for<br />

alternatives, too.” Bouwes used the issue<br />

of pricing to illustrate his point. “Many<br />

sellers don´t know even what their costprice<br />

is.<br />

They´re so eager to sell, they forget to figure<br />

out how low they can afford to go.<br />

But if price is the issue in your negotiations,<br />

you need to know your cost-price.<br />

Then you can calculate your walk-away<br />

price – the bottom price below which<br />

you´re going to have to abandon the<br />

deal. In negotiating, you then try to find<br />

out your opponent´s walk-away price,<br />

too.” Bouwes went on to tell the Fame<br />

participants that a first offer – as well as<br />

your bargaining space – should always<br />

be realistic. “European buyers know the<br />

market. You have to give them confidence<br />

that you know what you´re talking<br />

about, too. You have to realise the<br />

European market is not some kind of<br />

soukh.”<br />

Abandoning the low-end<br />

For Jane Perena, the <strong>CBI</strong>´s emphasis on<br />

getting real about prices underlined a<br />

strategy her organisation has started recommending<br />

to its member companies.<br />

“We´re seeing an increase of visitors<br />

from the European Union to our furniture<br />

trade shows”, she explains. “We´ve<br />

realised that we have to abandon the<br />

idea of competing with low-end supplying<br />

countries, because our prices can´t<br />

beat theirs. So instead, we´re aiming for a<br />

more high-end market entry.” Perena<br />

says she was sent to the Fame seminar to<br />

learn more about export marketing in<br />

general and about charting European<br />

consumer trends, distribution channels<br />

Jorge Hernandez from Guatemala.<br />

and pricing systems in particular. “We<br />

have carpets that sell for two hundred<br />

dollars in the Philippines and go for six<br />

thousand in Europe. If you don´t understand<br />

how that market price is built up,<br />

you´re going to get lost.”<br />

Trainer Wybren Bouwes fully agrees.<br />

“There are too many exporters in developing<br />

countries who hear from a cousin<br />

who´s travelled to Europe that prices<br />

here are five or six times as high as at<br />

home. So they think, ´Wow, all I have to<br />

do to get rich is sell my products in<br />

Europe!´ But they fail to realise how<br />

complex and demanding the European<br />

market is.”<br />

Bouwes was pleased to hear <strong>CBI</strong> trainees<br />

like Perena, Hernandez and Tumbo<br />

picked up the dual message of preparedness<br />

and focus. “The important thing to<br />

realise”, he says, “is that there´s always a<br />

market out there for you, no matter what<br />

you´re selling, but that accessing that<br />

market is the difficult part. If you do your<br />

homework, you stand a good chance of<br />

succeeding. If you don´t, you don´t.<br />

BSOs can play an important role in getting<br />

this message out, not only to the<br />

exporters they represent, but also to their<br />

governments, who can then take measures<br />

to support the private sector with<br />

education, legislation and the like.”<br />

Charles Tumbo from Kenya.<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 31


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 32 <strong>CBI</strong> <strong>News</strong><br />

Shopping<br />

where<br />

Europeans<br />

shop<br />

Thirty-two Ethiopian export consultants<br />

recently travelled to Rotterdam,<br />

the Netherlands.<br />

Ethiopian Train-The-Trainer<br />

programme well underway<br />

The TTT course is part of a BSO development<br />

programme the <strong>CBI</strong> is running in<br />

Ethiopia. Its purpose is to enlarge local<br />

consulting capacity. The TTT module<br />

began with a week of training in Addis<br />

Ababa last July, dedicated to the supply<br />

side.<br />

The 32 consultants, bankers and trainers<br />

spent that week auditing six Ethiopian<br />

companies on their export capabilities.<br />

In September the group came to<br />

Rotterdam to explore the other end of<br />

the export line, or to ‘Meet the Market’.<br />

For most of this week they were busy<br />

running around Holland talking to<br />

The two three-day workshops were held<br />

in August by <strong>CBI</strong> fashion consultant<br />

Louk Grauwen and garment consultant<br />

Hans Hunink, in cooperation with<br />

Pakistan´s Export Promotion Bureau<br />

(EPB). The aim was to contribute to the<br />

development of fashion design standards<br />

in Pakistan, thus equipping the local<br />

industry for export.<br />

The participants represented a large<br />

number of organisations involved in<br />

fashion- and design-related training pro-<br />

Thirty-two Ethiopian export consultants enrolled in a <strong>CBI</strong> Train-The-<br />

Trainer programme recently travelled to Rotterdam, the Netherlands,<br />

for a week of intensive training and market exploration. There was no<br />

time for sightseeing, but ample time for shopping.<br />

importers, retailers and facilitators and –<br />

in the few hours leftover – discussing<br />

topics of market entry and distribution<br />

channeling.<br />

“There´s no better way of understanding<br />

the limitations of Ethiopian exporters<br />

than experiencing first-hand the highly<br />

competitive Western import business”,<br />

explains ge-neral marketing consultant<br />

Johan Laman Trip, one of the programme<br />

coordinators. “And there´s no better way<br />

to learn about European consumers than<br />

to shop where they shop, to compare<br />

product quality and prices yourself. The<br />

strict quality requirements, the import<br />

grammes. Louk Grouwen, a seasoned<br />

designer and design trainer himself, used<br />

slides and other visual aids to show the<br />

participants how design training programmes<br />

are organised in Europe – the<br />

target market for Pakistan´s garment<br />

industry. He also explained the disciplines<br />

a design student has to master in<br />

order to meet international standards.<br />

He and Hunink also presented a ´fashion<br />

forecast´, which, like most of the other<br />

topics, gave rise to interesting and lively<br />

discussions. “The participants eagerly<br />

regulations, the struggle for shelf space,<br />

the need for efficiency in ordering and<br />

logistics – the Ethiopian consultants saw<br />

it all. And hopefully they´ll be better<br />

equipped to tell entrepreneurs back<br />

home what it takes to become a successful<br />

exporter.”<br />

In October the participants gathered<br />

together to translate the know-how they<br />

acquired into an Export Marketing Plan<br />

(EMP). Says Laman Trip, “Like every part<br />

of this long-term project, this stage<br />

brought us one step closer to our goal:<br />

increasing Ethiopian exports.”<br />

Equipping Pakistan´s designers<br />

A colourful mix of local designers, fashion students, merchandisers, faculty<br />

representatives and principals of fashion and garments institutes<br />

recently attended two <strong>CBI</strong> workshops on fashion design in Karachi and<br />

Lahore, Pakistan. The workshops were part of a Train-The-Trainer programme<br />

for this sector.<br />

absorbed the information we presented”,<br />

comments Hunink.<br />

In order to make the workshop as practical<br />

as possible, the two consultants set<br />

apart the last day for a full-day design<br />

assignment, developed by Grouwen. “It<br />

was completed with remarkable results”,<br />

says Hunink. During their stay in<br />

Pakistan, Grauwen and Hunink also<br />

visited several fashion training institutes,<br />

to talk with principals, faculty members<br />

and students. Says Hunink, “This helped<br />

us get a clearer picture of the programmes<br />

and standards of these fashion<br />

training institutes in practice.”


Art meets commerce<br />

The schism that separates dreamy<br />

artists from result-driven marketeers<br />

was effectively bridged<br />

during three recent <strong>CBI</strong> workshops<br />

on interior decoration and<br />

design. The age-old problem was<br />

one of the focal points of the workshops:<br />

bringing together the lofty<br />

issue of design with some of the<br />

more down-to-earth aspects of<br />

export marketing.<br />

Bridging the schism between artists and<br />

marketeers at the <strong>CBI</strong> workshop on interior<br />

desing.<br />

The three workshops were held in July<br />

and August in Lima (Peru), Bogotá<br />

(Colombia) and Quito (Ecuador). The<br />

programme consisted of two days of<br />

training and presentations and a third<br />

day for individual counseling. A total of<br />

93 company representatives took part, 51<br />

of whom requested individual counseling.<br />

They represented three different<br />

groups involved in the export of home<br />

decoration and related products: staff<br />

members of Business Support<br />

Organisations, designers and producers/exporters.<br />

The workshops clearly<br />

revealed some of the major differences<br />

between designers and producers/<br />

exporters, says <strong>CBI</strong> consultant Leo<br />

Wallage, who ran the programme with<br />

design consultant Mark Kwami. Explains<br />

Wallage, “Over the years it has become<br />

apparent that designers are often not<br />

overly interested in how their products<br />

are marketed, whereas producers/<br />

exporters tend to think of designers as<br />

people who get paid too much for too little<br />

work with too little commercial value.”<br />

Mutual dependence<br />

During the workshops, these conflicting<br />

mindsets were highlighted and discussed.<br />

“We made it abundantly clear<br />

that designers cannot exist without producers<br />

who are willing to try and inte-<br />

A <strong>CBI</strong> workshop on<br />

interior decoration<br />

shows designers and<br />

marketeers how much<br />

they need others<br />

grate new ideas into their product assortments”,<br />

says Wallage. “By the same token,<br />

serious producers must understand that<br />

a constant stream of new ideas in terms<br />

of product development is essential if<br />

they wish to keep attracting buyers.<br />

Remember that those buyers face all the<br />

pressures of a global recession and<br />

increasing competition. As a result buyer<br />

behaviour has become hesitant and critical;<br />

buyers are demanding better service,<br />

better packaging and better quality. I<br />

think this training programme is so wellreceived<br />

because it deals with these issues<br />

in a concise, comprehensive form.” There<br />

are more advantages to placing design<br />

and export marketing side-by-side, adds<br />

Wallage: “it not only sheds light on the<br />

background and history of modern<br />

design, but it also strongly emphasizes<br />

today’s export marketing requirements<br />

and demands. Participants come away<br />

with a strong sense of the need for trend<br />

watching and trend spotting in all of its<br />

facets.” The plan of action discussed in a<br />

plenary session at the end of each workshop<br />

sums it op neatly, says the consultant:<br />

“Linking your design and marketing<br />

strategy and integrating them in your<br />

product development is the only viable<br />

basic structure for a successful company.”<br />

Counterparts<br />

The three workshops were organized on<br />

close cooperation with local organisations.<br />

In Lima, the <strong>CBI</strong>´s counterpart was<br />

ADEX, a well-known and experienced<br />

association of exporters. In Bogotá, the<br />

workshop was facilitated by ProExport<br />

and in Quito by Corpei. The <strong>CBI</strong> has<br />

offered similar workshops before in the<br />

Indian cities of Jaipur, New Delhi and<br />

Shillong, as well as in Dhaka,<br />

Bangladesh. “The workshops are really a<br />

continuation and an upgraded on-tour<br />

version of the <strong>CBI</strong>´s Capita IV seminar<br />

held in Rotterdam in October 2004”, says<br />

Wallage. The Capita seminars are aimed<br />

at officials of industry and trade associations<br />

and provide practical knowledge<br />

and applicable tools for export promotion<br />

to the European market.<br />

Trade Fairs<br />

and<br />

Conferences<br />

ETHIOPIA<br />

10th Addis Chamber International Trade<br />

Fair ACITF<br />

Addis Ababa Exhibition Centre<br />

Addis Ababa<br />

February 23 – March 01, 2006<br />

www.addischamber.com/tradefair.asp<br />

tradefair@addischamber.com<br />

INDIA<br />

Eurofest ‘05<br />

World Trade Centre<br />

Mumbai<br />

<strong>December</strong> 15 – 17, <strong>2005</strong><br />

www.euindiachambers.com<br />

kant@euindiachambers.com<br />

IT India Fair <strong>2005</strong><br />

New Delhi<br />

<strong>December</strong> 15 – 18, <strong>2005</strong><br />

www.itindiafair.com<br />

info@itindiafair.com<br />

Elecrama 2006<br />

Bombay Exhibition Centre<br />

Goregoan, Mumbai<br />

January 18 – 22, 2006<br />

www.ieema.org / www.elecrema.com<br />

mumbai@ieema.org<br />

PAKISTAN<br />

Medika Pakistan <strong>2005</strong><br />

Pearl Continental Hotel<br />

Bangalore<br />

<strong>December</strong> 10 – 11, <strong>2005</strong><br />

eiac@epblhr.gov.pk<br />

THE PHILIPPINES<br />

BIO-Search Health & Wellness Show<br />

The Philippines<br />

May 2006<br />

www.citem.com.ph<br />

VIETNAM<br />

V.I. Trade Expo<br />

Ho Chi Minh City<br />

<strong>December</strong> 14 – 18, <strong>2005</strong><br />

www.vinexad.com.vn<br />

vinexad@hn.vnn.vn<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 33


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> Page 34<br />

Ongoing and<br />

Planned<br />

<strong>CBI</strong> activities<br />

What When Where Details<br />

Technical Assistance Mission Oct. 31 - Nov. 13 Colombia, Costa Rica, Ecuador In the framework of the EDP Stationery items<br />

Stationery items ms Y. Netto will visit a number of companies<br />

CPhI trade fair <strong>November</strong> 1 - 3 Spain In the framework of the EDP Natural Ingredients<br />

for Pharmaceuticals and Cosmetics<br />

Technical Assistance Mission ITO <strong>November</strong> 1 - 20 Macedonia and Egypt In the framework of the EDP ITO Mr. L. Klucs will<br />

visit a number of companies and conduct workshops<br />

Technical Assistance Mission Nov. 5 - Nov. 28 India In the framework of the EDP Engineering Mr. P. van<br />

Engineering der Sman will visit a number of companies<br />

Technical Assistance Mission Young <strong>November</strong> 6 - 13 Costa Rica, El Salvador In the framework of the EDP Young potplant<br />

potplant material material Mr. M. van der Maden and Mr. M. van<br />

Woerden will visit a number of companies<br />

Week 1 Train the Consultant <strong>November</strong> 7 - 11 Uganda First week of the second round of the TTT<br />

Programme Uganda programme: 30 export experts will be trained to<br />

become consultants.<br />

Train the Trainer Ethiopia <strong>November</strong> 7 - 18 Ethiopia Institutional Support EPD / Coordinate Programme<br />

Train the Trainer Vietnam <strong>November</strong> 14 - 18 The Netherlands Train the trainer programme<br />

4th week<br />

Follow-up Train the Trainer <strong>November</strong> 14 - 18 Kenya, Uganda, Tanzania Follow up of the first round of the TTT<br />

round 1 programme, including a workshop contest.<br />

Be an interesting fashion partner <strong>November</strong> 14 - 18 Macedonia Workshop on <strong>CBI</strong>'s fashion forecast and<br />

in Europe fashion trends<br />

<strong>CBI</strong>/ITC workshop on E-Business <strong>November</strong> 14 - 19 Tunesia A joint <strong>CBI</strong>/ITC parallel event during the World<br />

Summit on Information Society<br />

Trade fair Medica <strong>2005</strong> <strong>November</strong> 14 - 19 Germany In the framework of the EDP Medical Devices<br />

Mr. A. Hock and Mr. L Santema will support<br />

selected company's during the Medica <strong>2005</strong><br />

MIDEST <strong>2005</strong> Nov. 15 - Nov. 18 France Tradefair in the framework of the EDP<br />

Castings and Forgings<br />

Technical Assistance Mission Nov 16 - Dec 9 Colombia, Ecuador, Peru In the framework of the EDP Automotive<br />

Automotive equipment <strong>2005</strong> -2010 Equipment Mr. N. Stok will visit a number of<br />

companies<br />

Visit of Expolink to <strong>CBI</strong> <strong>November</strong> 18 The Netherlands Expolink, a <strong>CBI</strong> partner BSO, will visit the <strong>CBI</strong><br />

Workshop Export Promotion <strong>November</strong> 21 - 23 South Africa Workshop on how to efficiently promote exports<br />

for BSO staff<br />

Export policy makers needs <strong>November</strong> 21 - 25 Tanzania Training Needs Assessment for senior staff from East<br />

assesment Africa involved in policy making related to exports


What When Where Details<br />

Technical Assistance Mission <strong>November</strong> 21 - 25 Kenya In the framework of the EDP Cut flowers<br />

Cut flowers Mr. Rikken and Mr. Van Schie will visit a number of<br />

companies<br />

Effective trade fair participation <strong>November</strong> 23 - 24 Macedonia Workshop on effective trade fair participation<br />

(Tourism) for the tourism sector<br />

Technical Assistance Mission ITO Nov. 27 - Dec. 16 South Africa In the framework of the EDP ITO Mr. L. Klucs will<br />

visit a numer of companies and conduct workshops<br />

Visit of SIPPO to <strong>CBI</strong> <strong>November</strong> 28 The Netherlands Mr. Stern, managing director of SIPPO,<br />

will visit the <strong>CBI</strong><br />

FIE <strong>2005</strong> Nov. 29 - Dec. 1 France Tradefair in the framework of the EDP Organic Food<br />

Ingredients<br />

Novel Food Workshop <strong>December</strong> 1 Belgium The <strong>CBI</strong> and UNCTAD workshop on the Novel Food<br />

Regulation. Opening speech by UNCTAD and<br />

the <strong>CBI</strong>.<br />

Institutional development <strong>December</strong> 2 - 10 Vietnam Mission by Rob van Eijbergen, workshops on<br />

consulting skills on agricultural export and<br />

business associations on strategy development<br />

Commercial Attaché's <strong>December</strong> 5 - 8 Jordan Training for commercial attaché's on EU trade<br />

structures and business promotion techniques<br />

Export Marketing Plan Workshop <strong>December</strong> 7 - 9 Bosnia-Herzegovina Workshop on how to write an Export Marketing<br />

Balkan Plan for exporters<br />

Content Management Workshops Dec. 12 - 14, 15 - 17 Kenya Information collection & processing workshops for<br />

the regional Market Information System<br />

2006<br />

BSOD East Africa January 16 - 17 Kenya Meeting the webdevelopers of the regional Market<br />

Information System<br />

Commercial Attaché's Africa January 18 - 20 Tanzania Workshop for Commercial Attaché's with an<br />

accreditation in Africa<br />

FAME XIV February 6 - 17 The Netherlands Seminar on export marketing and management for<br />

middle management staff of BSOs<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> <strong>2005</strong><br />

<strong>November</strong>/<strong>December</strong> Page 35


<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong><br />

List of current <strong>CBI</strong> publications<br />

Market surveys *<br />

Bodywear 2004<br />

Cars: Parts for cars, trucks, trailers and other<br />

mobile (engined) equipment 2004<br />

Castings & forgings <strong>2005</strong><br />

Chemicals 2004<br />

Computer software and IT services <strong>2005</strong><br />

Cut flowers and foliage 2004<br />

Domestic furniture <strong>2005</strong><br />

Engineering products <strong>2005</strong><br />

Electronic components <strong>2005</strong><br />

Fasteners and builder's hardware <strong>2005</strong><br />

Fishery products <strong>2005</strong><br />

Fresh fruit and vegetables <strong>2005</strong><br />

Food ingredients for industrial use 2004<br />

Footwear 2004<br />

Gifts and decorative articles 2004<br />

Hand and power tools 2004<br />

Household and furnishing textiles <strong>2005</strong><br />

Jewellery 2004<br />

Leather goods <strong>2005</strong><br />

Medical devices and medical disposables <strong>2005</strong><br />

Natural ingredients for cosmetics <strong>2005</strong><br />

Natural ingredients for pharmaceuticals <strong>2005</strong><br />

Natural stone and natural stone products 2004<br />

Organic food products <strong>2005</strong><br />

Outerwear <strong>2005</strong><br />

Personal protective equipment <strong>2005</strong><br />

Pipes and process equipment <strong>2005</strong><br />

Plants and young plant material <strong>2005</strong><br />

Preserved vegetables <strong>2005</strong><br />

Sanitary ware and ceramic tiles 2003<br />

Sports and camping goods <strong>2005</strong><br />

Stationery items, office & school supplies <strong>2005</strong><br />

Tableware, kitchenware and other household articles <strong>2005</strong><br />

Timber and timber products <strong>2005</strong><br />

Tourism: Long haul tourism market, Season <strong>2005</strong> <strong>2005</strong><br />

Toys and games <strong>2005</strong><br />

* Only available on CD rom and via the website<br />

Market Briefs **<br />

Business Process Outsourcing <strong>2005</strong><br />

Edible nuts <strong>2005</strong><br />

Exercise books and refill pads <strong>2005</strong><br />

Fruit juices <strong>2005</strong><br />

Flat knitted tops <strong>2005</strong><br />

Inductive components 2004<br />

Iron and steel valve castings <strong>2005</strong><br />

Papaya <strong>2005</strong><br />

Pencils <strong>2005</strong><br />

Protective footwear <strong>2005</strong><br />

Protective gloves <strong>2005</strong><br />

Steel flanges 2004<br />

Summer flowers <strong>2005</strong><br />

Vegetable oils 2004<br />

Wound closure products 2004<br />

Manuals<br />

Export planner 2000<br />

Exporting to the European Union 2003<br />

Your show master 1998<br />

Your image builder 2003<br />

Your guide to market research 2003<br />

Digging for gold: Internet research ** 2004<br />

Website promotion: How to promote your website in the EU ** 2004<br />

** Only available on the <strong>CBI</strong> website www.cbi.nl<br />

Others<br />

Fashion forecast Fall/Winter 2006-2007 <strong>2005</strong><br />

Tourism: ‘Matrix <strong>2005</strong>, Netherlands’ and Belgian<br />

tour operators to exotic destinations’ <strong>2005</strong><br />

These publications can be obtained – exclusively by exporters<br />

and business support organisations in developing countries –<br />

through a written request to <strong>CBI</strong>, or by downloading from the <strong>CBI</strong><br />

website at www.cbi.nl BSOs situated in any of the <strong>CBI</strong>’s 35 target<br />

countries may also be included on the mailing list for <strong>CBI</strong><br />

publications. Once you’re registered you will automatically<br />

receive updates of publications – free of charge. If you’re<br />

interested, please download the <strong>CBI</strong> organisation profile from our<br />

website (http://www.cbi.nl/downloads/cbibsoprofile.doc) and<br />

send the form to the <strong>CBI</strong>. We can then determine whether your<br />

BSO can be included on the mailing list.<br />

Disclaimer<br />

<strong>CBI</strong> market information tools<br />

Although the content of its market information tools has been<br />

compiled with the greatest care, the Centre for the Promotion<br />

of Imports from developing countries (<strong>CBI</strong>) cannot guarantee<br />

that the information provided is accurate and/or exhaustive,<br />

and it cannot be held liable for claims pertaining to the use of<br />

this information.<br />

The information provided is aimed at assisting the <strong>CBI</strong> target<br />

group, i.e. exporters and business support organisations<br />

(BSOs) in developing countries. It may, therefore, not be used<br />

for re-sale, the provision of consultancy services, redistribution<br />

or the building of databases, on a commercial basis.<br />

For utilization of the <strong>CBI</strong> market information tools by the <strong>CBI</strong><br />

target group on a non-commercial basis, the condition applies<br />

that <strong>CBI</strong> is referred to as the source of the information.<br />

All other use is prohibited, unless explicitly approved in<br />

writing by <strong>CBI</strong>.<br />

Mailing list<br />

The <strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> is sent free of charge to importers and<br />

organisations in the European Union, embassies of developing<br />

countries and to business support organisations in developing<br />

countries and to exporters who are participants of <strong>CBI</strong> programmes.<br />

Other individual exporters in developing countries<br />

cannot be included in the mailing list, but they can download<br />

the <strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> from the <strong>CBI</strong> website at www.cbi.nl<br />

Correct address<br />

When notifying the <strong>CBI</strong> of a change of address, please<br />

return by post the original address label of the last<br />

<strong>CBI</strong> <strong>News</strong> <strong>Bulletin</strong> together with your new address<br />

information. You may also send an email or fax<br />

containing both the old and new address to<br />

cbi@cbi.nl or fax nr. ++31-10-4114081.

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