May 2007
Turkey can bridge the gap as global
demand rises
Mike Knowles
On 6-8 June, FRESH, the annual congress for the European fresh produce sector organised by Eurofruit Magazine and Freshfel Europe, takes place in Istanbul. To coincide with FRESH2007, the June issue contains an in-depth preview (p26-33), plus a special feature on Turkey (p34-49). For the first time in FRESH’s five-year history, and in the 30-year history of the two events that formed FRESH, we are venturing outside the EU. Why? Turkey has the potential to become one of its most valued members, standing as it does across the border between Europe and Asia, at the political crossing point between east and west, and with a foot in both ideological camps that divide Europe from the Middle East.
If Turkey does join the EU in the next few years as expected (this is by no means certain), it can also be a huge asset to the Union’s fresh produce trade. A powerhouse of production and one of the continent’s leading exporters, the country has built a strong reputation in several of Europe’s major markets as a supplier of citrus, cherries, grapes, topfruit and vegetables, while in Russia, Ukraine and the Middle East (most notably Saudi Arabia), its export trade has grown significantly over the past decade. At the same time, opening up the Turkish market to a larger volume of imports will offer other EU suppliers a valuable opportunity to grow their business.
At present, Turkey’s fresh produce exports still only account for less than 10 per cent of its total production, so the big question in the next decade will be how it can increase this figure and continue to supply the same high quality. With markets for fresh fruit and vegetables still growing in eastern Europe, Russia, the CIS and the Middle East, Turkey will have a distinct geographical advantage over other European suppliers when it comes to meeting the increased demand.
However, should retailers and consumers in these markets become more exacting in terms of product quality, food safety, traceability and other issues like the environment and Fairtrade, Turkish exporters will need to ensure they can meet the required standards. Better packaging provision will be needed, as will the continued expansion of logistics support and ongoing investments in technology and certification. The industry will also depend on planned improvements to the country’s infrastructure facilitating a greater volume of external trade.
In short, many questions will be asked of Turkey; whether it has the answers remains to be seen. There will be much to talk about in Istanbul…
On 6-8 June, FRESH, the annual congress for the European fresh produce sector organised by Eurofruit Magazine and Freshfel Europe, takes place in Istanbul. To coincide with FRESH2007, the June issue contains an in-depth preview (p26-33), plus a special feature on Turkey (p34-49). For the first time in FRESH’s five-year history, and in the 30-year history of the two events that formed FRESH, we are venturing outside the EU. Why? Turkey has the potential to become one of its most valued members, standing as it does across the border between Europe and Asia, at the political crossing point between east and west, and with a foot in both ideological camps that divide Europe from the Middle East.
If Turkey does join the EU in the next few years as expected (this is by no means certain), it can also be a huge asset to the Union’s fresh produce trade. A powerhouse of production and one of the continent’s leading exporters, the country has built a strong reputation in several of Europe’s major markets as a supplier of citrus, cherries, grapes, topfruit and vegetables, while in Russia, Ukraine and the Middle East (most notably Saudi Arabia), its export trade has grown significantly over the past decade. At the same time, opening up the Turkish market to a larger volume of imports will offer other EU suppliers a valuable opportunity to grow their business.
At present, Turkey’s fresh produce exports still only account for less than 10 per cent of its total production, so the big question in the next decade will be how it can increase this figure and continue to supply the same high quality. With markets for fresh fruit and vegetables still growing in eastern Europe, Russia, the CIS and the Middle East, Turkey will have a distinct geographical advantage over other European suppliers when it comes to meeting the increased demand.
However, should retailers and consumers in these markets become more exacting in terms of product quality, food safety, traceability and other issues like the environment and Fairtrade, Turkish exporters will need to ensure they can meet the required standards. Better packaging provision will be needed, as will the continued expansion of logistics support and ongoing investments in technology and certification. The industry will also depend on planned improvements to the country’s infrastructure facilitating a greater volume of external trade.
In short, many questions will be asked of Turkey; whether it has the answers remains to be seen. There will be much to talk about in Istanbul…
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Where does it all begin and where
will it end?
Mike Knowles
Sometimes I feel like it’s hard to keep up with everything that’s going on in the world of fruit and vegetables. It doesn’t seem like five minutes ago I was racking up the kilometres in the halls of Messe Berlin at Fruit Logistica, yet here we are on the brink of summer, with its promise not only of hot weather but also some fantastic fresh produce like peaches and nectarines. The great thing about these fruits, in my opinion, is that they remain seasonal – in the minds of consumers, that is – and, as a result, still create something of a stir when they arrive on the supermarket shelves.
There’s so much potential mileage here for summer fruits in terms of marketing that it almost seems perverse there is no perceptible start and end to the season for certain other products. Wouldn’t it be fantastic to herald the beginning of the banana campaign with huge carnivals in city centres to a fanfare of Latin or African music? Or what about a big party to bring in the apple season? Maybe this is something we could do anyway, regardless of the fact that these and other fruits are sold for 52 weeks of the year? Beer is also sold year-round, but that doesn’t stop the Germans giving it a good old go in October, does it? Then again, they really don’t take so much convincing when it comes to downing the good stuff.
The real question is, do retailers really view seasonality and category management as suitable bed-fellows? Speaking to one Italian buyer at the end of last month, I got the distinct impression that seasonal promotions, particularly for geographically protected products that have a particular historical link with a certain part of the world, can be hugely successful. However, my fear is that the industry’s determination to build year-round supply and to iron out the sales peaks and troughs that used to be typical of the fresh produce sector, particularly in Europe, is leaving us with an entirely uninspiring market.
Varieties can play a part in sustaining interest in individual product categories, but how many consumers really know the difference, say, between one type of strawberry and another? Even if they notice a difference from week to week, will they make a note of the variety name or even think to check? I’m not so sure. Market volatility isn’t ideal, but it’s a lot more exciting. Perhaps this doesn’t make good business sense; perhaps consistency is a desirable thing for those looking to make money; but surely there’s commercial value in differentiation too? We warm to summer all the more because of the winter that went before.
Sometimes I feel like it’s hard to keep up with everything that’s going on in the world of fruit and vegetables. It doesn’t seem like five minutes ago I was racking up the kilometres in the halls of Messe Berlin at Fruit Logistica, yet here we are on the brink of summer, with its promise not only of hot weather but also some fantastic fresh produce like peaches and nectarines. The great thing about these fruits, in my opinion, is that they remain seasonal – in the minds of consumers, that is – and, as a result, still create something of a stir when they arrive on the supermarket shelves.
There’s so much potential mileage here for summer fruits in terms of marketing that it almost seems perverse there is no perceptible start and end to the season for certain other products. Wouldn’t it be fantastic to herald the beginning of the banana campaign with huge carnivals in city centres to a fanfare of Latin or African music? Or what about a big party to bring in the apple season? Maybe this is something we could do anyway, regardless of the fact that these and other fruits are sold for 52 weeks of the year? Beer is also sold year-round, but that doesn’t stop the Germans giving it a good old go in October, does it? Then again, they really don’t take so much convincing when it comes to downing the good stuff.
The real question is, do retailers really view seasonality and category management as suitable bed-fellows? Speaking to one Italian buyer at the end of last month, I got the distinct impression that seasonal promotions, particularly for geographically protected products that have a particular historical link with a certain part of the world, can be hugely successful. However, my fear is that the industry’s determination to build year-round supply and to iron out the sales peaks and troughs that used to be typical of the fresh produce sector, particularly in Europe, is leaving us with an entirely uninspiring market.
Varieties can play a part in sustaining interest in individual product categories, but how many consumers really know the difference, say, between one type of strawberry and another? Even if they notice a difference from week to week, will they make a note of the variety name or even think to check? I’m not so sure. Market volatility isn’t ideal, but it’s a lot more exciting. Perhaps this doesn’t make good business sense; perhaps consistency is a desirable thing for those looking to make money; but surely there’s commercial value in differentiation too? We warm to summer all the more because of the winter that went before.