1. The market for tropical and exotic fruits
in the European Union
Gustavo Ferro
ProFound – Advisers In Development
March, 2013 – Proexport seminar

2. Introduction
• Gustavo Ferro
- Market analyst: agro-industrial products
Fruits & vegetables (fresh and processed), coffee, cocoa and cocoa
products, vegetable oils, spices & herbs
Main clients: CBI, SIPPO, Proexport, CATIE, IDB, IDH
- ProFound – Advisers In Development: value chain development services:
maket intelligence, VCA analysis, trainings, project
facilitation, business development
• Participants

3. Agenda
Part I: EU market overview – tropical and exotic fruits
• EU fruit consumption and production
• Tropical vs. Exotic fruits
• European market characteristics
• Entry channels and main players
• Market trends and developments
Part II: Export guidelines – diversifying markets
• Going East – Czech Republic case
 Why to venture into new markets
 Trade channels
 Existing and future opportunities
• Business practices
 Product marketing
 Delivery, payment, services

4. European Union – fruit consumption
EU-27 Gross per capita fruit consumption in kg / year, 2010 Largest per capita consumers
Apples and pears
1 Cyprus
Citrus fruit
Stone fruit 2 Italy
Melons & papaya
Bananas 3 Romania
Table grapes
Other fruit 4 Portugal
Dates, figs, exotic
0 5 10 15 20 25 5 Greece
Freshfel Europe, 2011

5. European Union – fruit production
EU fruit production 2011, in mln. tonnes
Belgium
1
Netherlands
Hungary
Austria
2
Portugal
Romania
Germany
Greece 3
Poland
France
Spain
4
Italy
- 5 10 15 20
FAOSTAT, 2013
5

6. European Union – tropical fruit profile
Bananas (incl. plantains)
Consumption
Pineapples
Germany
United Kingdom Avocados
Italy 2
2 5 Guavas and mangoes
Spain 1
3 1
France
Imports 5 Main suppliers
Belgium Costa Rica
Germany Ecuador
3
United Kingdom 4 Colombia
Italy 4 Dominican Republic
The Netherlands Peru

7. Exotic fruits – a matter of definition
• Tropical vs. Exotic fruits
VS.
yang mei
golden kiwi
• Unfamiliar to most consumers
• Low market volume, high market value
• Higher risks
• Alternative market entry strategy

8. Exotic fruit markets in the EU – market profiles

9. Trade statistics – reflecting market profiles
Largest EU importers of exotic fruits, in 1,000 tonnes Potential competitors…
% of Colombian supplies
Madagascar
LITHUANIA 0% 30% of EU supplies
DENMARK 0%
tamarinds, lychees
LUXEMBOURG 0%
PORTUGAL 5%
Vietnam
SPAIN 9%
5% of EU supplies
AUSTRIA 0%
POLAND 0%
pitahaya (decorative)
BULGARIA 0%
CZECH REPUBLIC 0%
Kenya
SWEDEN 0% Low-cost passion fruit
UNITED KINGDOM 0%
ITALY 0% Malaysia, Thailand
GERMANY 3% pitahaya, carambola
BELGIUM 0%
FRANCE 1%
NETHERLANDS 12%
0 5 10 15 20 25

10. Price competitiveness – Colombia
Selection of price indications, € /kg, CIF
Product Origin Destination Average price in
May 2012
Granadilla Colombia Netherlands 9.09
Denmark 10.83
Passion fruit Colombia Netherlands 6.50
Kenya Netherlands 5.75
Colombia Germany 4.38
Israel France 6.50
Colombia France 6.50
Physalis Colombia Netherlands 7.88
Colombia Germany 5.11
Pitahaya Colombia Netherlands 9.67
Vietnam Netherlands 5.65
Colombia France 9.00
Vietnam France 9.00
Source: Market News Service of International Trade Centre, 2012

11. Trade Structure
Trade channels – main actors
Entry point Intermediary Distributor Retail channels or
Food service
Sea transport Importer, Agent National or
(mainstream) Intra-EU Major retailers vs.
Agent’s role specialised
Air cargo, via main EU diminishing Importer-
airports wholesaler role Vertical integration;
(specialised) Mainstream vs. or tightening of
specialised independent requirements
Connected to importers
distribution system Minimum order quantities differ between trade channels
Consolidation!
However, ensure you can deliver:
Temperature-sensitive
transport; avoid full containers or full pallets
mechanical damage
Orders are made every 3-4 days

12. EU market trends – exotic fruits
• Interest in exotic cusines / exotic fruits
 Travelling / Store promotions
 Cooking shows / Internet (websites, blogs) / Youtube culinary channels
 Other media

13. EU market trends – exotic fruits
• Healthy living – fruits containing healthy components
(antioxidants, dense nutrients) “Superfruits”
introduced in small amounts, as ingredients
for the food industry (juices, smoothies);
slowly making it to supermarket displays
in fresh form.
“Less processing” trend
• Sustainability
 Consumer awareness: environment + social
 Origin  Traceability
 Certification

14. EU market trends – exotic fruits
• Food miles; Buying local (e.g. Streekmolen)
Related story: Soil Association (UK) case

15. EU market trends – exotic fruits
• Economic crisis  Market polarisation
Consumption of cheaper items
Opportunity to indulge
• Higher requirements, stricter controls  production and handling processes
Health and safety (GlobalGAP, HACCP, BRC)
MRLs (Pesticides) – Further reading
No GMOs!
Novel Food – Further reading