"Paul Demyttenaere: "French produce to the French market"
REO Auction to team up with French cooperative UGPBAN
Cooperation REO and UGPBAN
General Manager Paul Demyttenaere talks about the origins, intentions and purpose of this cooperation. "At the end of 2012 the first contact between REO and UGPBAN was made during a study visit. Both cooperations had the same vision and shared many similarities but we were not then in the position to be able to clearly formulate the strategy for a foreign cooperative. UGPBAN has a daughter company, Fruitdor. Fruitdor is the market leader in the ripening and preparation of bananas in France. 'Fruidor Terroir' traditionally handles more than 100,000 tons of fresh vegetables and fruit per year and are an important player in the French market segment. Fruit and vegetables arrive from all regions of France and neighbouring countries. UGPBAN was looking for a cooperative way of securing fruit and vegetables and also introduce local products."
General Director of REO Auction Paul Demyttenaere, Chairperson of REO Auction Rita Demaré and General Director of UGPBAN Philippe Ruelle
New organisation in France
"Given the developments in the industry REO were convinced that they should do something in the direction of Northern France. The idea has grown into a pilot project heading in a SICA direction, (form of organisation in a French cooperative model level). Hereby we want French products and REO products bundled together with French produce on a supply and sales platform created for North French produce. All the growers are members of REO and of the newly established SICA. If it is about European GMO regulations, REO is the mother cooperation."
French products
Paul explains that with the focus on French produce they have a separate partnership. "This runs in line with our new broader vision, and this vision is taking a more concrete form. Around 30% of our export goes to France and we also want demand to come for local produce from France. We are looking for a French partner who is credible in the market. The essence of this story is that cooperatives of French and Belgian producers have both found demand for pure French produce. The model is set, and must be rolled out to the whole French market."
No bananas
Bananas are the most important product for UGPBAN, but it is not the intention for REO and SICA to head in the direction of marketing these. "Our first intention is to market French field vegetables together, such as leeks, cabbages, brussel sprouts, courgettes, chicory and cauliflower. In the future this may be extended to greenhouse produce. This combination of local French produce will be more attractive to all French markets. Indeed, both REO and UGPBAN pursue collaborations with various customers in the French market. Another important reason is that we minimise our need to look for produce outlets and we offer a way for French producers into the market through REO Auction, a cooperative structure standing for quality and durability. Producers then have full access to the European market through the commercial system of REO and the additional asset of the French market."
Also interest from other countries
The new SICA will be operational from July 1st. The new SICA is looking for a permanent location in Northern France where they can gather, approve and distribute the products. "We have arranged the structure of the organisation so we can expand further into France." REO maintain the ambition to also work from other European locations, through engaging other cooperatives with respect for the individuality of local produce and the strength of a cooperative, operating at the level of cooperative producing organisations. "This is the only way to ensure a better understanding of our market."
www.reo.be
www.bananeguadeloupemartinique.com
