Growing Opportunities in the Retail Market Nancy Tucker Vice Presidenta Produce Marketing Association
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What is PMA? An organization that unites the whole supply chain.
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The Mission of PMA: • To connect, inform, and provide business solutions that will increase the prosperity of our members. Copyright PMA 2008
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Agenda • Increasing imports • System of distribution in the US • Changing retail practices • Challenges and opportunities
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Importance of imported products
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Increasing share of domestic consumption
Source: ERS/USDA Briefing reports Copyright PMA 2009
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Sales of Imported Fruits and Vegetables by Volume and Value
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Fruits Imported by the U.S.
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Vegetables imported by the U.S.
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Sources of imported, fresh vegetables
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Sources of imported, fresh fruit
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US Imports from Brazil (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
Mangos Imports from Brazil (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
2010 US Mango Import Origins (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
Melons Imports from Brazil (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
2010 US Melon Import Origins (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
Papayas Imports from Brazil (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
2010 US Papaya Import Origins (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
Pineapples Imports from Brazil (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
2010 US Pineapple Import Origins (in thousands of USD)
Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. USDA GATS Database. Accessed 4 May 2011.
Distribution Sytem
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U.S. Fresh Fruit and Vegetable* Value Chain, 2008 Estimated Billions of Dollars $48.4
institutional wholesalers
food service establishments produce and generalgeneralline wholesalers
$10.1 imports
$63.1 farms $21.2
shippers $5.6 exports
integrated wholesalewholesaleretailers
supermarkets and other retail outlets
*Excludes nuts
$113.2 + consumers
farm & public markets
$1.7
numerous us public sources, incl. Source: Estimated by Dr. Roberta Cook, UC Davis, based on numero USDA, DOC, Progressive Grocer, and PMA. Preliminary estimate. Not for publication.
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Changing Retail Practices
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Consolidation Continues • Retailers merging – Smaller rate than the late 1990’s – early 2000’s – Supplier consolidation
• Consolidation within companies – DelHaize consolidating buying offices • • • •
Food Lion Bloom Bottom Dollar Hannaford
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Consolidation Continues • Retailers merging – Smaller rate than the late 1990’s – early 2000’s
• Consolidation within companies – SuperValu • • • • • • • • • • •
Acme Albertsons Bristol Farms Cub Foods Farm Fresh Hornbacher’s Jewel-Osco Lucky Shaw’s Shop ’n Save Shoppers Food & Pharmacy • Star Markets Copyright PMA 2009
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Increasing direct sales • Impact of initial trend of direct sales • Global direct buying – Wal-Mart – Tesco
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Impact • Requirements – – – –
Volume Quality Distribution Year round availability
• Still limited re imports – Not many retailers have sufficient staff and expertise – Importers still a vital part of the supply chain
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Competition • Among supermarkets • Other formats
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Walmart Supercenters Market Saturation St. Louis Metro
1988 (1)
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2003 (11)
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2006 (16)
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2007 (18)
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2008 (22)
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2009 (28)
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2010 (34)
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2011 (37)
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2012 (39)
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Total Walmart Network (49)
2009 W-M SAMS SAMS
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W-M
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Competition from other formats
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Impact
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Attractive/innovative packaging
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New varieties
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Quality/ taste
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Convenience/value added
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Value price
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Challenges and Opportunities
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Green/Environment/Safe • Sustainability • Safe and uncontaminated food • Environment
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Productos Locales • Tendencia fuerte en EE.UU. y Europa • Apoyo a agricultores locales • Menor distancia • Percepciones de sabor y frescura
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Que pueden hacer los exportadores?
TELL YOUR STORY
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Growth in Emerging Markets
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Climate change impacting supply •
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Climate change impacting supply •
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Climate change impacting supply •
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Climate change impacting supply •
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Climate change impacting supply •
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Water quality and availability • Water usage – agriculture accounts for 70% of global water withdrawals • At current consumption patterns, there will be a 40% gap between supply & demand by 2030 according to Water Resources Group
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Increased demand • World population predicted to rise 30% in next 40 years
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Supplier and Buyer as partners
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