There is no doubt that export promotion leads to expansion of goods for the foreign market. These goods earn foreign currency that can be used to facilitate development in addition to that export promotion industries have a wide market to produce for both domestic and foreign markets. They are therefore able to produce for a greater capacity. Production for export enables them to increase utilization of locally resources that would be idle. Due to the fact that export promotion industries have a wide market, they are able to fully utilize the existing plant capacity. In this way, they can take advantage of large scale production. This will lead to lower production costs and indeed increasing the products competitiveness. So, we will review some details about export and existence in the world market especially vegetables and fruit export.
What competition do you face on the European fresh fruit and vegetables market?
The buyer power of European importers is high. For niche or premium products it is easier for suppliers to influence the buying process. This is thanks to the growing demand for tropical, exotic and off-season fruit and vegetables. These fruit and vegetables are not easily replaced by other products; however, strict buyer requirements as well as forward and backward integration of the supply chain will make it increasingly harder for new and small companies to enter the market.
As for the market entry, which opportunities and barriers will I face when trying to enter the European market?
The European market for fresh fruit and vegetables is a very mature market that is well managed by legislation and certifications. Opportunities can be found in the accurate response to market needs, good compliance with buyer requirements and product differentiation but you will face the high standards that you will have to commit it to ensure your place in the European market.
Certification and high standards make market entry difficult
Certification schemes are essential in the European market for fresh fruits and vegetables. Although different certificates are common in different European end-markets, they all want you to show quality, food safety and awareness of environmental or social aspects of your production. According to European buyers certification and pest analysis often receive just as much attention than the product itself. It is mainly the retail that is continuously raising the standard and importers that act on it. Consequently as an exporter of fresh fruit and vegetables it becomes more and more difficult to enter the European market. This especially affects smaller exporters. However, the same high standards can affect your buyer as well. They sometimes compete in getting access to quality fresh produce. This can give you more power for negotiation with your European counterpart.
Product competition: What are substitute products?
This section describes the existence and competing power of substitutes for fresh fruits and vegetables. This may include candy bars and other snacks, fruit and vegetable juices, prepared or processed products or even vitamin pills.
Substitution by price variation:
Price is a major factor that determines which fresh fruit is chosen. When mangoes are expensive, consumers can decide to buy other, lower priced fruit products. The availability of fresh produce is generally very complete. Nevertheless, consumers are mostly buying the same products again and again or looking for specific products to use in specific dishes.
Under normal price conditions the threat of substitution is low. But when exporting you have to be able to absorb possible fluctuation in demand as well as price.
When Fresh snack are alternatives:
Fruit and vegetables are considered to be a healthy alternative to conventional snacks. This provides opportunities, although not always as a fresh product. Fruit and vegetables are used in fruit bars, smoothies, vegetable crisps, among other products, freshly cut fruit and ‘snack vegetables’ are an upcoming market. Exporters can respond to this trend by supplying well-ripening and tasty fruit as well as small-size products that are ideal for individual consumers, such as small ‘sunset’ papayas, mini-watermelons, baby cucumbers and cherry tomatoes.
Solutions:
Visit retail outlets when visiting Europe to get a good impression of the types and
varieties that appeal to consumers in your target country.
Ask your buyer how you can cooperate in the promotion of health benefits of fresh
fruit and vegetables, which is a responsibility shared by the entire supply chain.
Finally, according to statistics exported vegetables and fruits have reached almost to 8% of total Egypt’s exports in 2019. This promises to increase the percentage in the near future.