The Dutch and European

horticulture market…

Where are the best

opportunities

Alfons van Duijvenbode - Harare, October 2016

Headlines

1. EU + NL horticulture imports

2. African supply to EU / NL

3. Trends shaping the EU market

4. How to access the EU Market…?

Product scope Horticulture

CATEGORY PRODUCTS

VEGETABLES

Snow peas, Fine beans, Baby corn, Lychees, Avocados, Sugar snaps, Bird eye chilies, Serenade chilies, Baby corn, Baby marrow, Sprouts, Baby spinach, Sweet potatoes, Baby vegetables, Garden peas, Tenderstem broccolli, Baby corn, Butternut, High Care Prepared Vegetable mixes, Carrots, Red cabbage, Green asparagus

FRUITS

Grapes, Passion fruit, Stone fruit, Kumquats, Pineapples, Strawberries, Mangoes, Papayas, Plums, Gooseberries, Physalis, Apples, Peaches, Nectarines, Plums

FLOWERS Roses, Fresh cut flowers

OTHERCoffee, Organic products, Protea, Summer flowers, Frozen gooseberry pulp, Frozen passion fruit pulp, Tea, Macadamia nuts

Part 1 - EU / NL Horticulture imports

Import volumes and leadingproduct categories

EU/NL Import volumes (,000 tons)

2011 2013 2015 CAGR

EU 16,952 17,524 18,438 +2.1%

- Supply from Africa 1,582 1,595 1,719 +2.1%

- Supply from ZIM 12 11 20 14%

share Zimbabwe 0.07% 0.06% 0.11%

NL 1,937 2,137 2,328 4.7%

- Supply from Africa 367 414 579 12%

- Supply from ZIM 8 6 9 5.3%share Zimbabwe 0.41% 0.28% 0.39%

◼ Excl. Citrus fruit (30,000 tons from Zim to EU)

◼ NL takes large share of ZIM exports, but share is down

3.9

3.2

1.6

1.21.1

0.9 0.80.6 0.6 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5Top 20 EU imports (mn tons)

Leading couple: coffee (21%) and apples (17%)

Grapes 9% / pineapples 7%

# 1 vegetable: carrots (6%)

-5%

0%

5%

10%

15%

20%

25%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5Top 20 EU importsStar Performers

Sweet potatoes

Avocados

PeachesNectarines

Mangoes

353

310

261

223 216188

174

62 59 53 44 41 38 34 32 27 26 26 21

0

50

100

150

200

250

300

350

400

grap

es

cut

flo

wer

s

pin

eap

ple

s

app

les

coff

ee

avo

cad

os

man

goes

rose

s

swee

t p

ota

toes

fin

e b

ean

s

carr

ots

plu

ms

cou

rget

te

nec

tari

nes

bro

cco

lli

cab

bag

e

tea

pea

ches

pea

s

Top 3: grapes, cut flowers, pineapples (15/13/11%)

4-7: apples/coffee/avocados/mangoes 10-8%

Top 20 NL imports (,000 tons)

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

50

100

150

200

250

300

350

400Top 20 NL importsStar Performers

Sweet potatoes

Avocados

Roses

Cut flowers

EU/NL Some observations

◼NL large (13%) share cut flowers plus

◼NL large share for fresh tropical fruit

… NL is stronghold for cut flowers and fresh

fruit trade

EU NLPineapples 7% 11%Avocados 3% 8%Mangoes 3% 7%

Star performers EU

359 401

642

388

116

24088

140

200

148

0

100

200

300

400

500

600

700

800

900

Avocados Mangoes Nectarines Peaches Sweet potatoes

volume '11 absolute growth '11-'15 (,000 tons)

Part 2 - African supply to EU / NL

Main suppliers

#2015 Country Volume GrowthAfrica 1,719 2.1%

10 Senegal 28 6%11 Cameroon 26 -11%12 Ghana 26 -15%13 Zimbabwe 20 14%14 Namibia 19 15%15 Malawi 15 -8%16 Rwanda 12 3%17 Burundi 12 0.5%18 Zambia 8 14%

African supply 2 Europe(,000 tons, 2015-2011)

#2015 Country Volume GrowthAfrica 1,719 2%

1 South Africa 444 6%2 Kenya 308 4%3 Morocco 223 2%4 Ethiopia 164 3%5 Uganda 141 5%6 Egypt 92 3%7 Côte d’Ivoire 60 0%8 Tanzania 40 1%9 Madagascar 36 -7%

African supply 2 NL(,000 tons, 2015-2011)

#2015 Country Volume Growth #2015 Country Volume GrowthAfrica 579 12% Africa 579 12%

1 South Africa 208 6% 10 Zimbabwe 9.3 5%2 Kenya 147 12% 11 Zambia 5.8 36%3 Ethiopia 88 67% 12 Madagascar 5.3 -24%4 Egypt 26 6% 13 Mali 4.35 Morocco 24 6% 14 Tanzania 3.9 8%6 Côte d’Ivoire 13 20% 15 Ghana 2.2 8%7 Namibia 13 14% 16 Burkina Faso 1.7 16%8 Uganda 13 16% 17 Malawi 0.4 -35%9 Senegal 12 27% 18 Cameroon 0.4 160%

Part 3 – ZIM supply to EU / NL

• Main product categories

• Main African suppliers to EU per product category

6,762

5,705

4,622

1,253

486 388 187 181 79 57 8 7 4 2 2 10

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Top 3: Tea (34%), peas (29%), flowers (24%)

Avocado 6%Exotic fruit (2-3%), coffee (2-3%)

Nectarines (1%), peaches (1%)

ZIM Top 10 EU (tons)

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Nectarines ZIM Top 10 EU (Star

Performers)

Avocados

Peaches

Coffee

Peas

Tea

4,582

2,730

972

393175

23 21 7 5 50

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Top 2: cut flowers (51%) and peas (31%)

Avocado 11%

Exotic fruit 4%

Tea 2%

Other: 1%

ZIM Top 10 NL (tons)

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Avocados

ZIM Top 10 NL (Star Performers)

Cut flowers

PeasPeaches

Nectarines

Africa1,11116%

Other5,88684%

CAGR 22%

Citrus fruit 7 million tons EU import

Leading Suppliers

Zimbabwe 3%

South Africa 59%

Morocco 18%

Egypt 18%

Tunisia 2%

Swaziland 1%

2015 >> 2011

6%

1%

CAGR 18%

Africa11033%

Other22667%

Tea 336,000 tons EU import

-2%

Leading Suppliers

Zimbabwe 6%

Kenya 66%

Malawi 13%

Tanzania 6%

South Africa 4%

Rwanda 3%

Mozambique 1%

Uganda 1%

-2%

2015 >> 2011

CAGR 27%Africa

158%

Other16992%

Peas 184,000 tons EU import

6%

Leading Suppliers

Zimbabwe 39%

Kenya 37%

Egypt 11%

Morocco 4%

South Africa 3%

Zambia 2%

Ethiopia 2%

Madagascar 1%

5%

2015 >> 2011

Africa26631%

Other58769%

Cut flowers 853,000 tons EU import

15%

Leading Suppliers

Zimbabwe 1.74%

Kenya 55%

Ethiopia 33%

Uganda 5%

Zambia 3%

South Africa 1%Tanzania 1%

0.4%

2015 >> 2011

Africa82

14%

Other51686%

Avocados 598,000 tons EU import

13%

Leading Suppliers

Zimbabwe 2%

South Africa 63%

Kenya 26%

Morocco 9%

16%

CAGR 71%

2015 >> 2011

Africa22

34%

Other42

66%

Exotic fruit 64,000 tons EU import

1%

-5%

Leading Suppliers

Zimbabwe 2%

Madagascar 76%

South Africa 16%

Ghana 3%

Kenya 2%

Mauritius 1%

2015 >> 2011

Africa3278%

Other3,61492%

Coffee 3,940 thousand tons EU import

3%

-5%

Leading Suppliers

Zimbabwe 0.12%

Uganda 38%

Ethiopia 23%

Kenya 8%

Tanzania 8%

Cameroon 7%

Côte d’Ivoire 4%

Burundi 3%

2015 >> 2011

Africa9

1%

Other77399%

Nectarines 782,000 tons EU import

5%

Leading Suppliers

Zimbabwe 3%

South Africa 72%

Morocco 27%

Tunisia 1%

Egypt 1%

7%

2015 >> 2011

Africa5

1%

Other58399%

Peaches 588,000 tons EU import

11%

Leading Suppliers

Zimbabwe 3%

Morocco 43%

South Africa 43%

Egypt 9%

Tunisia 2%

5%

2015 >> 2011

Africa54

11%

Other43689%

Mangoes 490,000 tons EU import

4%

Leading Suppliers

Côte d’Ivoire 43%

Senegal 22%

Mali 11%

Burkina Faso 8%

Ghana 5%

Gambia 4%

South Africa 3%

Guinea 2%

Egypt 2%

Cameroon 1%

23%

2015 >> 2011

Africa21

19%

Other86

81%

Chili peppers 107,000 tons EU import

Leading Suppliers

Morocco 77%Kenya 6%Uganda 6%Egypt 4%Ghana 3%

2%

5%

Zimbabwe had substantiallyhigher exports to EU prior to

2007/2008.

2015 >> 2011

Part 3 -

Trends in the European food market

Leading consumer trends are…

1. Growing concern about health and well-

being

2. Consumers want convenience

3. Diversification of products and flavours

1. Growing concern about health and

well-being

◼Governments promote healthy lifestyle

◼Reduced demand for food that is

considered as unhealthy (fat /

sugar)

◼ Increasing demand for food

that is considered as healthy

1. Growing concern about health and well-being

◼ Increasing demand for food that is

considered as healthy. Such as:

◼ Superfoods

◼ Organic food

◼ Products without additives

◼ Not-from-concentrate juices

◼ Dried fruit, edible nuts (healthy snacks)

◼ Pickled vegetables

◼ Coconut products (oil, water)

1. Growing concern about health and well-being

◼ Increasing demand for food that is considered as

healthy. Such as:

◼ Superfoods…

◼ Organic food

◼ Products without additives

◼ Dried fruit, edible nuts (healthy snacks)

◼ Pickled vegetables

◼ Cocunut products (oil, water)

Superfoods

Example Superfoods Retail price: EURO 7 / kg

1. Growing concern about health and well-being

◼ Increasing demand for food that is considered as

healthy. Such as:

◼ Superfoods

◼ Organic food…

◼ Products without additives

◼ Dried fruit, edible nuts (healthy snacks)

Example – Organic food

Retail price: EURO 2.29 / piece

Example Organic food

1. Growing concern about health and well-being

◼ Increasing demand for food that is considered as

healthy. Such as:

◼ Superfoods

◼ Organic food

◼ Products without additives…

◼ Dried fruit, edible nuts (healthy snacks)

Example Additive-free products

1. Growing concern about health and well-being

◼ Increasing demand for food that is considered as

healthy. Such as:

◼ Superfoods

◼ Organic food

◼ Products without additives…

◼ Dried fruit, edible nuts (healthy snacks)

Example Dried fruit,

edible nuts

(healthy snacks)

2. Consumers want convenience

• Smaller portion-packs, incl. snack vegies

• Pre-cut fresh fruit and vegetables,

• Seedless grapes and other fruits,

• Ripened fruits

• Smoothies

Example Snack vegies

Example

Smaller portions

◼ Small watermelon that fits in

a fridge, 2-2.5kg,

◼ Packaged in individual nets

with a handle for easy

transport

Example

Pre-cut fresh

fruit and

vegetables

Example Seedless grapes and other fruits

Example Ripened fruits

Example Ripened fruits

Example

Smoothies

3. Diversification of products and flavours

◼European consumers open for new

experiences

◼Offers opportunities for exotic products,

new flavours, herbs, seeds, berries etc.

Examples

Part 4 -

How to access the EU Market

In Europe…

1. Requirements for food are very strict

2. Preference for sustainable supply chains

and products

3. Trade fairs with global reach to meet

buyers

4. Buyers directories

5. More intel for market entry

1. Requirements for food are very strict

◼ EU food law (contaminants, MRLs, additives, contact

materials, hygiene, labelling, traceability)

◼ Buyers may have stricter requirements than legal

requirements!

◼ Buyers often need GLOBALGAP, BRC, or IFS.

◼ For flowers: GLOBALGAP or MPS (Fair Flowers Fair Plants)

◼ LocalGAP an option for emerging producers, e.g Zimbabwe

(Programs of Pick ‘n Pay and Shoprite in S.A.)

◼ Local challenge: accreditation

◼ Avoid the Kenya case: ban on peas/beans... (MRLs)

2. Preference for sustainable supply

chains and products

◼European consumers are concerned about

how their food is produced!

◼Corporate Social Responsibility: friendly to

the environment and people.

◼ If your company is doing well in terms of

social responsibility… use that to promote

your company and products!

Example – Promotion of CSR efforts

Example –

Promotion

of CSR

efforts

3. Trade fairs in EU

www.anuga.com

www.biofach.de/en

www.sialparis.com

www.hppexhibitions.com/floriculture/2016/holland

www.fruitlogistica.de/en/

4. Buyer Directories

.com

.com

.com

.com

5. More info

www.CBI.eu

Market Intel and Tips• Trends• Market access

requirements• Distribution channels• Buyers

Questions and

Discussions