The tomato sector is suffering from 'added-value fatigue' according to Promar International's Michelle Gibson. She added: 'There is a lot of talk about adding value, but comparatively little action.' Price and cost-cutting is not the way forward for an industry that wants a sustainable future. 'Adding value means better quality and better service at no extra cost to the customer. But taking costs out of the chain has been the main tactic employed.

The important thing though is to add value in the right place and at the right time, taking a segmented view of consumers.' Gibson said: 'Consumers will be prepared to pay more for products that fit in with their lifestyle and offer greater levels of convenience and sophistication. Brand value, image and desirability add real tangible value for the consumer, who likes uniformity and exclusivity. Zespri is a good example of a relatively new brand that has limited availability in the market and has commanded a premium in the marketplace.' Gibson believes the tomato sector in Europe is distorted by the Common Agricultural Policy, limited by a lack of genuine branding and held back by the refusal of small players to outsource functions or share resources.

These were just three of the major issues facing the industry, she said, adding that the benefits of 'excellent technical innovation' are largely being lost by a weakness in marketing, a failure to exploit opportunities in niche areas of foodservice and last but not least oversupply, which is set to worsen.

The development of close supply chain relationships at retail level is crucial to the future of the industry in general, Gibson added. 'Those that do not innovate and create strong relationships will find themselves increasingly marginalised,' she warned.

Topics