This year, more than ever, all eyes will be on Britain. The Olympics and the Queen’s Jubilee are both huge international events that will capture the imagination of millions of people around the world. What better opportunity to form new and profitable partnerships with international growers and producers?
With this in mind, we look at the key points that make Britain an attractive market for international exporters in the current climate.
UK retailers’ standards are the highest in the world
“From a produce point of view, the UK retailing demand is next to none, and if you can meet the demands of the UK market you can supply anyone in the world,” says Martin Dunnett, trading director at Capespan. “Ethics and production techniques are among the toughest in the world, if not the toughest. We also pay more for our products here in the UK.”
Laurence Olins, chairman of the Poupart Group, agrees. “We have very food-aware consumers and the UK supermarkets are the leading supermarkets in the world,” he says. “Around 85 per cent of retail trading is conducted by eight major supermarkets. So it’s a concentrated marketplace, making it easier for exporters to deal with importers who are attuned to their market.”
He continues: “A major attraction when dealing with UK supermarkets is the process of indicated, pre-season programmes. These are unique to the UK and mean that exporting is not a hit-and-miss process, as it can be with many European countries. Yes, we may be a difficult market in terms of standards, but if you get through those hurdles you get access to programmes that allow for a planned season’s activity. That’s very important to exporters.”
Scott Golding, commercial manager at Mack Multiples, adds: “It’s seen as the pinnacle of achievements to supply the UK market, and we believe there is still a significant opportunity for growth in the UK. The next step is to up the consumption per capita and to keep driving that growth.”
With the possible collapse of the eurozone, the British pound is a stable currency
“Production in some countries is a means of earning foreign currency,” Dunnett points out. “Consumption in the UK is lower than in most of the European countries - we tend to treat fruits as luxury items. That’s why some customers will pay £5.99 for a punnet of New Zealand strawberries. This perception allows for greater returns and it allows the market to be driven by promotional activity.”
Prag Mistry, managing director of Fruitmann, agrees. “The UK retail structure is unique with the big five and the competitive spirit drives excellence,” he says. “We are seeing an awareness of different parameters; moving away from ‘pile it high and sell it cheap’ to quality. This has resulted in a major market growth. With greater concerns over the eurozone crisis, sterling has a chance to be a stronger and more stable currency on the world markets. This should encourage farmers to export to the UK.”
His views are echoed by Golding. “The UK can offer growers stability with long-term partnerships and provide opportunities for suppliers to trade in pounds instead of their own currency. Our market can help them manage fluctuations in the uncertain economic climate around the world.”
Varietal development is welcomed in the UK
“Black seedless grapes, for example, were demanded by UK retailers. There’s a lot more pioneering of packaging, varieties and a general merchandising excellence in this market than you get in some other retail environments, in my view,” says Dunnett. “The growers that are able to meet those standards can do very well. The Middle East has got great potential if it can sort out its problems. Also countries like Peru and India, which only exports three per cent of its production. I certainly think their agricultural industry has great potential to supply us.”
Golding agrees. “Sustainability has become a factor, of great importance in the UK and is a key consideration for retailers,” he says. “Our new supply partners have to show innovation too, but we have to work in partnership with our growers. With any fresh product, there are always opportunities for new varieties and new source countries. Avocados, for example, have significant supply-window opportunities for new sources to enter the mix. Our African avocado farmers offer a great sustainability story as well as a great quality product for the UK’s retailers.”
Olins adds: “There is room for all types of products in the UK - from premium down to basic, because the marketplace is segmented into various levels. The options are all there.”
English is the business language of the world
“I think we have one of the most mature markets in the world, and with English being the common language spoken around the world it facilitates business relationships,” says Mistry. “The language, as well as the currency, is one of the main factors that I think draws new exporters to do business with the UK. A lot of companies are letting the younger generation take over. They have a greater grasp of English and a greater desire to learn as well. It used to be that people I do business with were typically older generation with reasonable English and fax communications; now their well-educated young successors are taking the reins with a greater grasp of English and the internet.” -
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