Over the past fifteen years, a large number of countries from the so-called Eastern Block have gradually joined the European Union, such as Lithuania, Latvia, Estonia, Poland or Romania, among others.
"We decided to start exporting to these emerging markets through supermarkets that still had weak trade structures, as imports carried out through local brokers entailed very high risks of non-payment," explains Ignacio Martín, marketing director of Consorfrut S.L.
Consorfrut Polska
Founded in the year 2000 in Valencia, Spain, Consorfrut was created with the goal of gaining strength in terms of production and expanding its fruit and vegetable range to be able to meet the demand from countries in Eastern Europe. The firms that form part of it include MURGIVERDE S.C.A., FRUTAS HNOS. ESPAX S.L., S.A.T. FRUTSOL and ARGENTILEMON (the latter being from Argentina). Each producer works with a different product, from vegetables to citrus, summer fruit and top fruit, and with plantations located in areas from southern Spain to the northern Mediterranean coast, as well as in Tucuman, Argentina, to be able to supply all year round. Ownership of the company is shared equally between all producers.
"Since the beginning, our growth in eastern European markets has been steady. We have managed to set up one of our most modern headquarters in Poland, Consorfrut Polska, which manages the warehouse and packaging structure, as well as the logistics platform and the import and distribution activities," explains Ignacio.
Consorfrut Polska's facilities
Poland, a potential market with increasing competition
Besides Russia, Poland is the most populated country in the Eastern Block, with over 40 million inhabitants. Its demand capacity for imported products turns it into one of the most developed and potentially interesting markets for Spain.
Nevertheless, Ignacio Martín stated that this increase in trade and retail capacity over the past 10 years has also resulted in the Polish market diversifying its imports, which consequently means having to face fiercer competition.
"Now Poland is also importing from non-EU countries, like Turkey; producers in northern Africa, as well as from more distant origins, like Argentina, Chile, South Africa, etc. As a result, our work gets tougher and it becomes more difficult to maintain and expand our position in Poland," he says.
Consorfrut Polska's warehouse
"Around 30 years ago, Spanish exporters were not familiar with any markets beyond Germany and very few dared trading with Eastern Europe due to the problems with non-payments, and although the risk is still high, a growing number of firms are deciding to enter these countries without prior experience."
"We certainly had to solve some problems and deal with non-payments, but despite these difficulties during the first few years, we have managed to establish ourselves through hard work and dedication," continues the exporter. "We now know what products to work with and how to do it, when to start and finish exporting those products, and above all, how to provide our clients with a reliable service all year round. We have now become a leading company in central and eastern European markets and whoever wishes to start exporting to these destinations will have to go through the same experience that we did."
More of Consorfrut Polska's facilities
The Netherlands and Perpignan; redistributing markets to avoid
Although Consorfrut was founded with the goal of working with Eastern Europe, its growth led it to seek new markets and it is nowadays present in 33 countries. This includes all of Europe (except for the Netherlands), Asia, the Middle East, Africa, South America and North America.
"We believe that markets such as the Netherlands and Perpignan, in France, are redistributors of the fruit and vegetables they import, and they make a profit out of paying very low prices to an increasingly atomised mass of unwary suppliers. We avoid them both."
Normal situation of exports to Ukraine
"For now, the tense political situation in Ukraine has not affected our exports to the area, and despite the feeling of uncertainty, the consumption levels of horticultural products have remained stable. In any case, there is naturally distress about how the conflict may be resolved, as well as its consequences," concludes Ignacio Martín.
For more information:
Ignacio Martín
Consorfrut
C/Eslida, 7. 46026.Valencia, Spain.
T: +34 963163570
nacho@consorfrut.com
www.consorfrut.com
Consorfrut Polska
Christo Botewa 4
30-798 Kraków,Polska
T: +48 12 342 01 00
www.consorfrut.pl
biuro@consorfrut.pl