“Many underestimate the consequences of Brexit”

During the event of the KDT, LAVA and VBT, a panel discussion was organised, during which the Belgian fresh produce export in times of difficulty was discussed. The discussion was led by Luc Vanoirbeek, advisor European & International Policy Boerenbond. Speaking were: Philippe Appeltans, general secretary VBT, Philippe Binard, general delegate Freshfel, Leslie Lambregts, manager International Affairs FAVV and Veerle van der Sypt, secretary Fresh Trade Belgium.

Veerle van der Sypt indicated that Belgian exporters are very dependent on other European countries. “Within the European market there’s quite a bit of protectionism as well. When we promote tomatoes on the French market, we keep quite a low profile. On the German market, focus is also on local product, but fortunately we have noticed the effect of our VLAM promotions. The Russia embargo still has quite an effect. In third countries, promotions of our own country are very important. Especially on new markets that don’t know us, we can characterise ourselves as Belgium. There are also quite a few ideas for a collective brand.”

How should we deal with difficulties such as Russia and Brexit in future? “Smarter and more flexibly,” said Philippe Appeltans of the VBT. “Years ago, we also had far fewer sales markets. That all changed in just a few years, that time will never come back. We are headed for a larger product supply, and more diversity in markets. That will be a challenge, but our sector is capable of dealing with that. We have to continue devoting ourselves to this. Besides, as far as promotions are concerned, we have to start looking for combinations with other sectors, such as cheese and beer.” According to Philippe, these large shift effects will become a challenge in future. “For example, Russia was all about pears, but the apple market got in trouble. The trade conflict between Turkey and Russia means Turkish tomatoes still can’t be sent to Russia, and these then end up in Germany. These are the kinds of things to consider, and to anticipate more in future.”

“Europe lost the Russian market, about 2.2 million tonnes in volume. The loss caused by Brexit would amount to 3 million tonnes. Many people underestimate the consequences of Brexit. We are already seeing some problems, but that’s only the tip of the iceberg. We have to keep in mind many different things, such as import levies in future and logistical problems, for example.”

The FAVV plays an important role regarding the phytosanitary part for new export countries. Leslie Lambregts of the FAVV indicates Flanders invested more in expanding services regarding the opening of new export markets in recent years. “This involves various steps. When we know the requirements, we put together a file explaining the situation in the phytosanitary field. Authorities of those third countries often still do a best-risk-analysis. We then know which control measures to apply. There’s often also an inspection visit before export is possible. That usually takes years, four years isn’t exceptional. The good thing is that it can also be done quicker. Brazil is one such example, with only 2.5 years. From this we can learn a lot so that we can do it faster and better for other files in future. For that, we need an ideal cooperation between sector, food agency, local post and the province. In future, we should focus on and invest in that cooperation even more. Our products are safe, and colleagues in third countries have confidence in them. We should draw even more attention to our strong points.”

Philippe Appeltans indicates it ‘can never be quick enough’ when it comes to opening new markets. “It happens quite often that the counter party keeps your file for months. This is because there are no agreements about the time limit for responding. I think the cooperation is going well, but it can be even quicker. The FAVV has an excellent reputation abroad, and they want to retain their reputation of being the best. In some fields we still have differences of opinion, but that’s healthy. We don’t want to take risks on the market either, but we shouldn’t be too strict, because that increases the costs. If that were the case, it wouldn’t be interesting to anticipate the negotiation protocol.”

Leslie Lambregts responded to this: “Being the best, mostly means foreign organisations have much respect for, among other things, the inspection system and our broad approach. Regarding phytosanitary requirements, we are definitely the demanding party to ask for more requirements than are set by Europe. Perhaps the fresh produce sector should be responsible for that. It now might be quicker, but I doubt whether this is better in the long run.”