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"THE 20 OR SO
COMPANIES IN
OUR «FOODSTUFFS
CLUSTER»
ARE MORE
COMPLEMENTARY
THAN ACTUALLY
COMPETING. THEY
DO SOMETIMES
COMPETE BUT ONLY
WITH A MEAGRE
PERCENTAGE OF
THEIR OFFERING"
Etienne Collin, UWE
This is how the Marshall Plan describes it: against
the background of the agribusiness cluster, the
strategy is striking out in three directions: firstly,
developing high value-adding products by boosting
innovation and enhancing their properties in the
light of customer and market needs; secondly,
increasing the profitability of all components
of the sector by improving their integration and
longevity; thirdly, increasing production capacity
and the size of companies, by making it easier for
them to get a foothold on growing markets and
boosting their sales potential.
These major strategic policies are underpinned
by four development options designed to incite
companies to face up to the sector’s challenges.
"The first challenge of particular relevance for
our «cluster» is focused on «health» foods. This
lends support to the development of products
and ingredients that live up to nutritional and/or
health claims".
A springboard country
For a manufacturer, South Africa (or the Republic
of South Africa to give its full title) represents first
and foremost a huge market. 50 million people
live there. Many business operators regard the
country as the point of entry to Southern Africa,
with significant trade flows towards Namibia
(formerly a province of RSA), Botswana, Zimbabwe
(formerly known as Rhodesia), and Mozambique.
When apartheid was abolished in 1994, South
Africa’s population structure (90% indigenous)
underwent a radical transformation: people of
European origin who used to be the dominant
group saw their privileges drastically reduced,
while some members of the black community
rose to prominent positions: they form the
basis for a new class called «black diamonds»,
who are known for spending heavily and wanting
to live a European style of life.
"During a visit to a Pick and Pay supermarket (the
local equivalent of a Delhaize), we discovered a
wide range of products on offer (yoghurts, biscuits,
beverages, cheeses, cereals, salt meats) featuring
labels to show the nutritional properties of each
food and health claims". Local food companies
and their distributors report that the goods are
targeted on only a minority of the overall population
but the percentage is set to grow rapidly. The
market comprises about 10 million high-earning
consumers, most of them living in the four main
urban areas: Johannesburg, Cape Town, Durban,
and Port Elisabeth.
The local food market is regarded as selfsufficient.
"Owing to the economic blockade
during the apartheid epoch, many South African
businesses expanded on the domestic front,
thereby creating huge food groups, such as Tiger
Brands". The international groups did not appear
on the scene until after 1994. All the global giants
are there: Danone, Unilever, Cadbury, Nestlé,
and Continental Foods (with Kraft). "The bulk of
‘health’ foods are made by multinationals and
certain product development decisions are taken
at their main offices". Etienne Collin considers
that the target of the Walloon «cluster» in the
sector will thus be "more inclined to the major
South African groups, and particularly those open
to nutritional applications".
This offers an opportunity for this sector of the
Walloon economy, which also has a huge potential
for growth in promising segments, some of which
are recognised as world leaders: foodstuffs, health
food, prepared food, and specific high-quality local
products!
LEADING
SECTOR
The food industry is an
important and dynamic
sector in Wallonia, with a
turnover of € 6.8 billion
and jobs for 20,000 people.
Production has grown by
an average of 4% every
year since 2000, so that it
stands at the high end of the
European average.
Apart from «health» and
«nutrition» foods, three
other development options
have been identified to
incite Walloon companies
to meet the new challenges
in the sector. The second
one concerns innovative
production or preservation
technologies. The idea is to
promote the development
of products based on
production or preservation
processes (relying on soft
technologies), so as to
safeguard organoleptic
properties, extend shelf life,
and cut down on additives.
The third option aims to
facilitate the development of
food-grade bio-packaging,
made from renewable and
biodegradable resources.
Lastly, the fourth option
favours the development of
sustainable food industries,
by ensuring efficient
production processes and
the sustainable management
of inputs and by-products.
38. Dynamisme Special Issue