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Identifying and Overcoming Challenges to EU Market Penetration

Identifying and Overcoming Challenges to EU Market Penetration. A Self-Evaluation Check List Kacer Project Conference Belgrade 14 June 2011. Agenda. Opportunities & Challenges EU Market P rofile EU Market Entry Check List How CIAA & Partners can help. Opportunities.

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Identifying and Overcoming Challenges to EU Market Penetration

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  1. Identifying and Overcoming Challenges to EU Market Penetration A Self-Evaluation Check List Kacer Project Conference Belgrade 14 June 2011

  2. Agenda • Opportunities & Challenges • EU Market Profile • EU Market Entry Check List • How CIAA & Partners can help

  3. Opportunities • An attractive and lucrative EU food market • High income( GDP/Capita - 2009) : EU : 31.213 $ vs. Serbia : 11.700 $ • A large well organized and well structured market • High and stable demand: high added value and discount products • Honey consumer price : 7 to 35 €/kg • Successful presence of remote exporters • Commodities : oilseeds (Brazil), fruits & vegetables (Egypt), meat (Thaïland), … • Value added products : seafood (Costa-Rica), wine (Chili), honey (Mexico) Why not a stronger Serbian presence ?

  4. EU Honey Market Opportunities • Consumption : 320.000 Tonnes/yr or 0,9 Kg/hab ; • Imports : over 170.000 Tonnes/yr, mostly from China, Argentina, Mexico, …. • Main opportunities for added value: • Consumption rather than industrial • Health and nature claims • Monofloral • Regional label • By-products as well: gelly, propolis, pollen • Source : CBI Survey (2009) : www.cbi.eu

  5. Assets of Serbian Producers • Production cost • Quality • Serbian honey standards • the Kacer quality management set up • “Regional” products: • growing EU tourism to Serbia • potential appeal of the Kacer label • Ethnic segment , including Balkan “diaspora” • Geographically proximity to EU: rail, truck

  6. Challenges • A highly competitive market : strong industry and heavy retail pressure • A uniform yet diversified market : specific national & regional tastes • Retail delivery procedures & standards • Regulatory framework : • Food Safety standards ! • Consumer information

  7. The EU Consumer • About 400 million consumers • Two high density , high income regions: the “yellow and blue bananas” • Food : about 15% family budget in contra-cyclical spending • Uniformity and yet national/regional taste differentiation • Increasing importance of “service” : packaging, convenience, portioning, prepared meals, … • Segments : BIO, ethnic, regional products, delikatessen, discount, up market, etc… • Out-of-home versus home consumption • Information requirements: contents, nutrition, health, traceability • Increasing concern for health, nature, sustainability

  8. Food distribution in the EU • Retail dominance : • Over 80 % market share • Some 30 to 50% private label • Several “secondary”, more capillary, channels : • BIO, • Ethnic, • Gaz stations, • Franchises, • Pop & Mom, • Hotels, restaurants & collectivities, … • Etc…

  9. EU Retail Specifications • Price : retail practices modulated by local legislation • Quality : • Manufactured products : GFSI : BRC, SQFI, IFS • Agricultural Commodities : GLOBALGAP (EUREPGAP) • Delivery : JIT, Back hauling, common stock, … • IT

  10. The EU Regulatory Environment • The EU “Food Law”: focus on food safety • Horizontal Directives : ex. Dir. 178/2002 and the “Hygiene package” (Dir. 852, 853 and 854/2003) • Vertical Regulation : e.g. Animal Products, Fruits & Vegetables, Mineral Water, Chocolate, etc…. • Consumer information: labeling, traceability, … • Packaging : contamination, formats, recycling, Reach • Import authorization procedures & trading policy: taxes, quotas, etc…

  11. A Comprehensive Approach to the EU Food Market • Successful entry into the EU market requires consideration of : • Target market : country, segment (income, taste, ..) • Product positioning : image, attributes, pricing • Production: technology, capacity, flexibility • Distribution & logistics • Regulatory standards A full blended export strategy !

  12. How CIAA & Partners can Help • Providing support in : • EU Regulation monitoring and compliance • Retail procedures and standards • Market analysis • Distribution system design & assessment • EU trading policy intelligence • Setting up national or sector F&D trade associations • Accessing EU R&D and incentive schemes • Links • CIAA www.ciaa.be • Cadmos/Arcadia www.cadmos.be

  13. Thank you for your attention !

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