A new report by the Netherlands-based Centre for the Promotion of Import from Developing Countries (CBI) has revealed that European fresh produce buyers are turning their backs on fruit and vegetables produced in developing countries as they seek guaranteed quality and value for money through the global economic crisis.
In the study, CBI said that the economic crisis had therefore had a major impact on exports, profit margins and employment in the fresh produce sector of developing countries, the Business Mirror reported.
According to the CBI report, western European and Asian markets have beenperforming better through the financial slowdown than North America andeastern Europe.
'Exports for developing countries are under pressure, especially as importers in Europe are using their market power to reduce prices,' said the CBI in its report. 'The sector is also hit by reduced demand for more expensive varieties of tropical fruit and vegetables, for products grown outside of the European growing season and for recently introduced varieties.'
And the economic situation has made European importers jumpy when it comes to any signs of problems with fruit or vegetable shipments, CBI said.
'Quality shortfalls, which previously might have been overlooked, can now result in the cancellation of a particular order, rejection of a shipment or even the termination of a business relationship,' the report continued.
To buck the trend and ensure that exporters in developing nations continue to attract European sales, the report said that exporters must ensure that they are investing in programmes and activities relating to quality, certification, logistics and market entry.
'Producers who have production and quality-monitoring systems in place and are able to to offer additional services have a competitive edge,' CBI said.
No comments yet