CBI News Bulletin November / December 2005
CBI News Bulletin November / December 2005
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 />
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<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.