The Dutch and European horticulture market

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 VEGETABLES FRUITS FLOWERS OTHER PRODUCTS 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 Grapes, Passion fruit, Stone fruit, Kumquats, Pineapples, Strawberries, Mangoes, Papayas, Plums, Gooseberries, Physalis, Apples, Peaches, Nectarines, Plums Roses, Fresh cut flowers Coffee, Organic products, Protea, Summer flowers, Frozen gooseberry pulp, Frozen passion fruit pulp, Tea, Macadamia nuts

Part 1 - EU / NL Horticulture imports Import volumes and leading product 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

4.5 4.0 3.9 Top 20 EU imports (mn tons) 3.5 3.0 2.5 3.2 Leading couple: coffee (21%) and apples (17%) Grapes 9% / pineapples 7% 2.0 1.5 1.6 # 1 vegetable: carrots (6%) 1.0 0.5 1.2 1.1 0.9 0.8 0.6 0.6 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.0

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Nectarines Top 20 EU imports Star Performers Mangoes Avocados Sweet potatoes Peaches 25% 20% 15% 10% 5% 0% -5%

grapes cut flowers pineapples apples coffee avocados mangoes roses sweet potatoes fine beans carrots plums courgette nectarines broccolli cabbage tea peaches peas 400 350 300 250 200 150 100 50 0 353 310 261 223 216 Top 20 NL imports (,000 tons) 188 174 Top 3: grapes, cut flowers, pineapples (15/13/11%) 4-7: apples/coffee/avocados/mangoes 10-8% 62 59 53 44 41 38 34 32 27 26 26 21

400 350 300 250 Roses Cut flowers Avocados Top 20 NL imports Star Performers 80% 70% 60% 50% 40% 200 150 100 50 Sweet potatoes 30% 20% 10% 0% -10% 0-20%

EU/NL Some observations NL large (13%) share cut flowers plus NL large share for fresh tropical fruit EU NL Pineapples 7% 11% Avocados 3% 8% Mangoes 3% 7% NL is stronghold for cut flowers and fresh fruit trade

900 800 700 600 500 400 300 200 100 0 Star performers EU 140 240 88 200 642 359 401 388 148 116 Avocados Mangoes Nectarines Peaches Sweet potatoes volume '11 absolute growth '11-'15 (,000 tons)

Part 2 - African supply to EU / NL Main suppliers

African supply 2 Europe (,000 tons, 2015-2011) #2015 Country Volume Growth Africa 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% #2015 Country Volume Growth Africa 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 NL (,000 tons, 2015-2011) #2015 Country Volume Growth #2015 Country Volume Growth Africa 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 4.3 5 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

8,000 7,000 6,000 5,000 6,762 5,705 4,622 ZIM Top 10 EU (tons) Top 3: Tea (34%), peas (29%), flowers (24%) 4,000 3,000 2,000 1,000 0 Avocado 6% Exotic fruit (2-3%), coffee (2-3%) Nectarines (1%), peaches (1%) 1,253 486 388 187 181 79 57 8 7 4 2 2 1

8,000 7,000 Nectarines ZIM Top 10 EU (Star Performers) 120% 100% 6,000 Avocados 80% 5,000 4,000 3,000 2,000 Peas Peaches Coffee 60% 40% 20% 0% 1,000 0 Tea -20% -40%

5,000 4,500 4,582 ZIM Top 10 NL (tons) 4,000 3,500 Top 2: cut flowers (51%) and peas (31%) 3,000 Avocado 11% 2,500 2,000 1,500 1,000 500 0 2,730 972 393 Exotic fruit 4% Other: 1% Tea 2% 175 23 21 7 5 5

5,000 4,500 4,000 3,500 3,000 2,500 Peas Avocados ZIM Top 10 NL (Star Performers) Peaches 80% 60% 40% 20% 0% 2,000 1,500 1,000 500 Cut flowers Nectarines -20% -40% -60% 0-80%

Citrus fruit 7 million tons EU import 1% Other 5,886 84% 6% Africa 1,111 16% CAGR 22% Leading Suppliers Zimbabwe 3% South Africa 59% Morocco 18% Egypt 18% Tunisia 2% Swaziland 1% 2015 >> 2011

Tea 336,000 tons EU import -2% Other 226 67% Africa 110 33% -2% CAGR 18% 2015 >> 2011 Leading Suppliers Zimbabwe 6% Kenya 66% Malawi 13% Tanzania 6% South Africa 4% Rwanda 3% Mozambique 1% Uganda 1%

Peas 184,000 tons EU import 5% Africa 15 8% CAGR 27% Leading Suppliers Zimbabwe 39% Kenya 37% Egypt 11% Morocco 4% South Africa 3% 6% Zambia 2% Other 169 92% 2015 >> 2011 Ethiopia 2% Madagascar 1%

Cut flowers 853,000 tons EU import Leading Suppliers 0.4% Other 587 69% 15% Africa 266 31% Zimbabwe 1.74% Kenya 55% Ethiopia 33% Uganda 5% Zambia 3% South Africa 1% Tanzania 1% 2015 >> 2011

Avocados 598,000 tons EU import 16% Africa 82 14% CAGR 71% Leading Suppliers Zimbabwe 2% South Africa 63% Kenya 26% Morocco 9% 13% Other 516 86% 2015 >> 2011

Exotic fruit 64,000 tons EU import 1% Other 42 66% Africa 22 34% -5% Leading Suppliers Zimbabwe 2% Madagascar 76% South Africa 16% Ghana 3% Kenya 2% Mauritius 1% 2015 >> 2011

Coffee 3,940 thousand tons EU import 3% Other 3,614 92% Africa 327 8% -5% 2015 >> 2011 Leading Suppliers Zimbabwe 0.12% Uganda 38% Ethiopia 23% Kenya 8% Tanzania 8% Cameroon 7% Côte d Ivoire 4% Burundi 3%

Nectarines 782,000 tons EU import Africa 9 1% 7% Leading Suppliers Zimbabwe 3% South Africa 72% Morocco 27% Tunisia 1% Egypt 1% 5% Other 773 99% 2015 >> 2011

Peaches 588,000 tons EU import 11% Africa 5 1% 5% Leading Suppliers Zimbabwe 3% Morocco 43% South Africa 43% Egypt 9% Tunisia 2% Other 583 99% 2015 >> 2011

Mangoes 490,000 tons EU import 4% Other 436 89% 23% Africa 54 11% 2015 >> 2011 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%

Chili peppers 107,000 tons EU import Africa 21 19% 5% Leading Suppliers Morocco 77% Kenya 6% Uganda 6% Egypt 4% Ghana 3% 2% Other 86 81% 2015 >> 2011 Zimbabwe had substantially higher exports to EU prior to 2007/2008.

Part 3 - Trends in the European food market

Leading consumer trends are 1. Growing concern about health and wellbeing 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 Market Intel and Tips Trends Market access requirements Distribution channels Buyers www.cbi.eu

Questions and Discussions