The German fruit and vegetable market is increasingly losing its appeal, so southern Spanish farmers are now looking for new markets, according to Eurofreshproduce. To this end, UNA and the Fruits from Spain campaign organized a conference focusing on "New Markets" and "Water Shortage in Spain's Agriculture".
The UNA association (Unión de Agricultores de Almería) is sure and the participants of the conference on November 26, were sure as well: The Asian market is a real opportunity for the sale of fruits and vegetables and we must free ourselves from the 96% dependence on the European market, says Oliver Huesmann, initiator of FRUITS FROM SPAIN.
Jesús Fuentes, President of the Association UNA, opened the conference by explaining the difficulties of the sector, which has to cope with the strong competition from products from third countries, "against which we cannot compete". Other issues include the increase in production costs, prices for crop protection products, and those of water and energy. "We have to find new ways," Fuentes said.
Emilio Galdeano of the University of Almeria began the conference by explaining the strategic nature of agriculture in Spain. The common policy of the EU should be focused on supporting agriculture. He also pointed out the unbalanced distribution of the CAP and shared with those present the view that the CAP mainly protects continental agriculture by concentrating its aid on four main sectors. "There is no awareness of the importance of the agri-food sector for the food security of Europe," he added at the end of his speech.
Oliver Huesmann, FruitConsulting Hong Kong ltd.
Photo: Eurofreshproduce
"To die or to survive?"
International trade consultant Oliver Huesmann stressed that unless growers start selling their goods outside Europe in the future, for example by exporting to Asia, they will face a precarious price situation in the European market for fruits and vegetables.
He started his presentation "To die or to survive?" with the sentence: "Only 2.7% of Spanish fruits and vegetables are sold outside of Europe." Then he showed the different scenarios the production countries and markets currently competing in the world market, as well as the consequences. "It is the future of Spanish agriculture," said Huesmann, presenting the current situation in the European and German markets.
The bottom line is that prices are rising significantly at destination and point of sale, but not at the point of origin. In addition, he said, the pandemic has made production costs more expensive, as well as transportation costs, leaving farmers with a very small profit margin or even with losses.
Huesmann emphasized the figure of 580 million people in Europe with current negative growth and added new competition from overseas producers, compared to 5,000 million in Asia with consumption growth of 43% by 2030, which the expert believes represents clear opportunities. He focused his market analysis only on Hong Kong, Malaysia and Singapore for now.
Importance of the Asian market
Hicham Nader, Director of DHL Spain, highlighted that Asia is a very interesting market for entrepreneurs, but that it requires good preparation to understand the whole trade value chain and the logistics chain.
Mari Carmen Masegosa, from Masegosa Pallarés Consulting pointed out how important it is for every company to have the right documentation for the products they want to export. She stressed that it is very important to know the Incoterms and importance of AEO Customs (Authorized Economic Operator) for all companies involved in the international supply chain.
Sustainable water and CO2 policy
In the afternoon, there were several presentations on the efficient use of water, by María Dolores Fernández of the Las Palmerillas de Cajamar Experimental Station, by Enrique Arias, by Joaquín Soriano, CEO of IKOS TECH, the latest generation of technology for efficient irrigation, and finally by Gabriel Giménez Crespo of Agualytics.
All agreed that Almeria is heading towards a water problem that is already in effect. In order to ensure future agricultural production, measures must be taken to improve water quality and increase its quantity. "A modern water and CO2 policy of the Spanish agricultural sector would be, for example, the future cultivation in the Asian target country according to European standards," said Oliver Huesmann.
For more information:
Oliver Huesmann
Eurofreshproduce
FRUITS FROM SPAIN
info@eurofreshproduce.eu