(From left to right) Panelists John Oxford, CEO of L&M and Jose Antonio Gomez, CEO of Camposol, along with speaker Julien Marcilly from Coface.
“Ten years ago, we talked about water costs, and now we talk about water availability,” remarked Jose Antonio Gomez of Camposol during the PMA Fresh Connections presentation, 'Shifting Trade Winds: Geopolitics, Global Trade & You', held last week in Rotterdam. “Before, we'd talk about labor costs, and now we talk about labor availability; before, it was about land availability, and now it's about clean soil availability; before, it was about looking for an area with good weather suitable for agriculture, and now it's looking for land where the weather is just stable.” His argument is that the factors that determine who grows what are in flux, and the landscape is only going to get messier as there are more people in the world.
“Markets are changing and that's helping to make more trade,” said Gomez. “Trade is increasing, consumption is increasing, and it's shifting how trade is happening in emerging economies.” He thinks that more stable weather in the Southern Hemisphere will make it a big supplier of fresh produce for the rest of the world. But what the South will grow and where it will send it will also be determined by changes in the North.
Jose Antonio Gomez from Camposol.
“China used to be strong on exports, and now it has a lot of imports,” said Gomez. “China and India make up a large part of the world population, and with a bigger middle class in those countries they'll ask for more and better food.” That growing population will also require a better supply chain.
“When dealing with perishables, some of the primary concerns are freshness, condition and food safety,” said John Oxford of L&M. “All of those things point to the velocity at which products move through the supply chain.” Technology has been a big help, but, unlike financial industries, fresh produce will always require a physical presence and a robust logistics system.
“Our products have to be transported physically,” said Oxford. “So logistics and transportation will be big things in emerging markets.”