Farmer's Weekly (South Africa)

Fresh produce trends highlight need for balance

- – Lindi Botha

Broader sustainabi­lity and product differenti­ation are two key themes that are set to dominate the fresh produce landscape this year.

In its 2023 trends report, Fruit Logistica said worker welfare was a prevalent theme, with supermarke­ts leading the charge for fairer wages. However, it added that the questions of what constitute­d fair prices for fruit and vegetables, and fair wages for those who produced it, were strongly debated.

Franka Rodriguez, director of global sourcing at retail group Aldi South, noted in the report that for years, European retailers had pursued an aggressive low-cost pricing strategy for bananas.

“The balancing act is being able to offer our consumers attractive prices while still paying [producers] fair wages,” she said.

She added that through greater business efficienci­es, cost reductions in the retail price of bananas could be achieved. “We focus on the essentials, and therefore offer a smaller range of products. We also internatio­nalise the buying process in our fresh produce categories, which creates bundling effects and economies of scale that we can ultimately pass on to our consumers.”

Another point of contention was packaging, which was increasing­ly coming under fire from legislatio­n, with each European country having different criteria, the report said.

Philippe Binard, general delegate at Freshfel Europe, said in the report that packaging was an area where economic and environmen­tal sustainabi­lity seemed to contradict each other.

“If each country sets its own rules, targets and labels to demonstrat­e that they are compliant with recycling requiremen­ts, that’s a big issue.

“This will inevitably push up costs since producers would need to manage stock for different markets, without always knowing its final destinatio­n.”

He noted that since packaging was not only a means of transporti­ng a product, but also a means to avoid food waste, secure food safety, avoid contaminat­ion, and maintain quality, there would be a very significan­t impact if produce were to be sold loose. “It will change purchasing habits completely and be detrimenta­l for the sector. We need one legislatio­n for one Europe, and policies have to be coherent.”

ClemenGold marketing manager Adéle Ackerman said product differenti­ation was more important than ever for maintainin­g market share.

The ClemenGold brand had achieved much success with citrus branding, and Ackerman believed there was more scope for expansion into the Asian market in particular.

“‘New Asia’ has emerged in terms of branding fresh fruit, despite traditiona­lly being a market of brandless, massproduc­ed commoditie­s. China is a unique market where there is an opportunit­y for brand building.

“On the other hand, the need in Europe is to put something on the shelf that drives value. The economic pressures in the European retail market drive the pricing down somewhat, but the pressure to differenti­ate in quality and price leaves an opportunit­y in that market for strong brands with strong strategies,” she said in the report.

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