FRESH2008 - Antwerp - 21-23 May 2008

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FRESH2008 highlights major opportunity for European fresh produce trade

As demand continues to grow, the drive for high-quality and sustainable sources of production is set to intensify, say leading trade figures

More than 200 delegates from 27 countries were in attendance at FRESH2008, the leading annual conference and networking event for the European fresh produce trade, which which was organised by Eurofruit Magazine and Freshfel Europe. Attracting a number of leading executives from all sectors of the European fresh fruit and vegetable industry – including retail, import-export, marketing, production, packaging, technology, transport and logistics – the congress not only gave delegates a valuable opportunity to meet and do business, but also focused attention on some of the major trends and topics currently shaping the European fresh produce trade.

During the next few years, growing demand for high-quality fruit and vegetables from an expanding and increasingly affluent global population is expected to place greater pressure on farmland and resources, presenting the fresh produce sector with a valuable opportunity to boost productivity through investment and seize greater control of the supply chain.

That was the view of Hein Deprez, chief executive office of Univeg, who told delegates at last week's FRESH2008 in Antwerp, Belgium, on 21-23 May 2008 at the Hilton Antwerp Hotel, how the company is responding to major international trends by developing closer ties with fresh fruit and vegetable producers worldwide.

"Large retail organisations in mature markets will be confronted with a situation where the price demands they make will no longer be met, for the first time in more than 20 years," said Mr Deprez, who was speaking at a major international conference for the fresh produce business for the first time. "Producers will have alternative marketing channels that pay a fixed price. It's happening now, for example in Russia, where they pay a high, fixed price for Southern Hemisphere citrus. Traditional sales markets in western Europe and North America will be confronted increasingly with product uncertainty."

Chris Mack, chairman of leading UK importer Fresca Group, said he felt the time had come for retailers to change their policy on price. "We have reached a situation in the UK where prices have to increase. I don't think I have ever experienced product price inflation, so maybe now is the time to make up for 20 years of price stagnation," he argued.

According to Mr Deprez, Europe's fresh produce suppliers must find creative solutions in order to integrate production and avert potential shortages resulting from increased demand in expanding markets such as Russia, India and China. Joint ventures between marketers and producers will be essential in order to safeguard fresh produce supplies to European markets in the future, he said. "The combination of the need for further integration in fruit and vegetable growing and the massive capital requirements involved are forcing us to look for creative solutions," he told delegates. "entering into partnerships with major producers and producer organisations will give us the answer."

Investing in new technologies will also be of huge importance, said Mr Deprez, a view echoed by Luc Clerx, general manager of Zespri Europe. "With competition from other industries, such as meat, and with a rapidly increasing population, the production area currently available is insufficient," said Mr Clerx. "If we want to meet future demand we will have to look into new technologies."

Sustainability was a key theme during the conference event, with a number of speakers putting forward their opinions about the potential challenges to the fresh produce trade from climate change and economic developments, as well as the continued pressure on companies to be more socially and environmentally responsible. However, expansion of the Fairtrade fresh produce market during the next decade could be hampered by a lack of availability, warned Nico Roozen of Solidaridad, which established the Max Havelaar brand in 1988 and Fairtrade tropical fruit importer AgroFair in 1996. "The main obstacle to the Fairtrade movement in the next few years will not be so much the level of urgency felt by consumers and traders, but the availability of sustainable production," he said. "Consumer demand for Fairtrade products is there, as is the willingness to supply and sell them, but availability of the fruit itself is the big problem."

According to Stuart Orr of conservation group WWF, water shortages could also pose an increased threat to the industry in the coming years, with consumers worldwide becoming more aware of the need to conserve the resource which is perhaps taken for granted the most. "There is a huge burden on the water environment and some serious issues to do with wastage," said Mr Orr. "The situation may not be so bad in the fresh produce sector, but it has a responsibility nonetheless to act and lead the way."

Meanwhile, Manfred Krautter of environmental lobby group Greenpeace Germany told delegates that the European fresh produce sector had begun to take much more positive action on the thorny issue of pesticide residues, but he said there was still work to be done on reducing the impact of banned substances. "In the last couple of months in Germany there has been a lot of pesticide residue testing, with a very clear downturn in residue levels, notably in strawberries, peppers and grapes," said Mr Krautter. "However, there is still a lot of work to do."

Greenpeace has now published a blacklist of 327 "highly dangerous" pesticides which it argues should be phased out with the backing of EU legislation. Mr Krautter called on the fresh produce trade to support their elimination: "We need your help in order to get rid of these susbtances."

This year's FRESH also saw the appointment of Ramón Rey, marketing and import director of Spanish group ARC-Eurobanan (a partner of Total Produce), as the new president of European fresh produce association Freshfel Europe. Mr Rey, who succeeds former president Pino Calcagni (Besana Group, Italy), was previously chairman of the Freshfel Import division and, most recently, vice-president of Freshfel Europe. The association also elected Philippe Henri of Creno/UNCGFL, France, as its new vice-president and re-confirmed Ronan Raes (Bonita Europe, Belgium) as its treasurer.

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FRESH2008
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Freshfel Europe
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