Spanish traders, Greek fruit and the battle for the shelves
Based on the article of POWER GAMES news (https://www.powergame.gr/ikonomia/459936/oi-ispanoi-eboroi-ta-ellinika-frouta-kai-i-machi-gia-ta-rafia/)
I read a very useful article recently which refers to the Spanish fruit and vegetable traders who have been targeting the Greek market in an effort to replace a portion of their lost production due to unprecedented drought for the second consecutive year. Therefore, significant increase is also expected this year in Greek exports to Spain and Italy. However, market factors are raising concerns about the medium-term risks associated with the informal export of Greek fruits, both for Greek production and the national economy.
In the short term, as it is written in the article, it is acknowledged that this situation benefits Greek producers, as Spaniards and Italians seek to secure sufficient quantities to fulfil their contracts with the trade industry, thus maintaining their presence on the shelves of European supermarkets. Consequently, competition intensifies to acquire shares of the Greek production. On the other hand, the bulk export of agricultural products and the resulting “Spanishization” or “Italianization” lead to other countries benefiting from the added value of Greek production. Additionally, the “Greek fruit” brand will gradually weaken over time, while Greek trading companies will often be forced to compete with their Spanish and Italian counterparts under unfair conditions as the author of the article claims.»
With such an opportunity allow me via The F.O.O.D Project to also share my thoughts regarding this situation which is in place: the arrival of “players” from other countries to buy agricultural products and collaborate with local producers can offer opportunities but also entails risks. The high demand (based on temporary strategies) can lead to increased production, oversupply, and a decrease in product prices, with negative consequences for local producers. There is a significant risk if local producers become overly dependent on incoming traders without long-term agreements, and if such collaborations are based on “loose” rather than branded products.
On the other hand, such collaborations with companies from other countries can increase opportunities for local producers to sell their products in larger markets, enhance the reputation of their products, increase their income, and improve their technical expertise through new technologies, knowledge, and production practices that they can benefit from and enhance their productivity.
In my opinion, the MOST IMPORTANT opportunity in such collaborations for a local business (which may not be evident at first glance) is to change its “level” and strategy, to decide to invest in branded products as well as specific business plans, with value assessment and other processes to improve its financial performance, allowing it to collaborate on a “mutually beneficial basis” and achieve its goals.
It is also an opportunity for the Greek Agri-businesses to organize its processes with performance measurements (KPIs), to have better supervision of its performance, identify areas that need improvement, determine best practices to enhance efficiency, and evaluate its value at various levels such as economic value, commercial value, customer base, intellectual property, etc. This will help understand their capabilities and constraints, and identify potential opportunities for development, evaluation, and search for investors or partners that will certainly arise!
When suddenly faced with collaboration proposals from those who come to Greece [or to any local Agri/Farming-market] just to solve their own supply weaknesses, only with the creation of a strong business profile, business plan, and valuation of the local company’s -present & future-value, the local enterprise can attract investors or activate such collaborations that can contribute to its development by providing a more structured approach and the ability to make meaningful decisions for the future.
However, can small local companies change and reshape themselves in this direction, or they will go with the flow…?»
Panos ChamakiotisRegional Director EMEA | Europe, Middle East, Africa
Managing Director COMPO EXPERT HELLAS & SPAIN
