USAID Competitive Economy Project has recognized Market Access as one of the key obstacles preventing growth in the food processing industry. A fragmented industry dominated by small companies frequently has problems competing in more demanding export and domestic retail markets. To address this problem, the Project is partnering with key sector stakeholders to develop market entry support systems by: organizing participation at world-leading trade fairs; facilitating B2B meetings with EU and world buyers; supporting industry leading companies to integrate smaller producers in consolidated fruit and vegetables (F&V) value chains; setting up incubator models with retail chains; and, developing integrated trading services.
1. Trade shows: In partnership with Serbian Chamber of Commerce and industry associations, the Project is supporting domestic companies to attend international trade shows.
The Project assisted 52 Serbian companies, mostly from the fruits and vegetables sector, to exhibit and promote their products at renowned international trade shows:
- Biofach, Nuremberg, Feb 16-19, 2018 – the world’s leading trade fair for organic food
- PLMA, Amsterdam, May 29-30, 2018 – the best opportunity to build a private label business in food sector
- London Produce Show, London, June 6-8, 2018
- Summer Fancy Food Show, New York, June 30 – July 2, 2018 – one of the world’s largest specialty food industry trade events, and the premier showcase for industry innovation
- Belgrade Food Show, Belgrade, November 5-6, 2018- a unique business event that serves to promote Serbia’s and the region’s food processing industry and to position Serbia`s specialty food scene;
- Fruitnet Forum South-East Europe, Belgrade, November 21-22, 2018- conference and trade fair focused on the fresh produce business;
- “Fruit Logistica”, Berlin, February 6-8, 2019- One of the largest trade fairs that covers every single sector of the fresh produce business – from producers to retail;
2. B2B events: As a result of trade show attendance, companies frequently meet with the buyers who either visit Serbia or host Serbian companies.
Through B2B meetings supported by the Project, nine Serbian lead fresh fruit and vegetable companies had a chance to get in contact with renown international distributers:
- As one of the world’s largest and most accomplished fresh produce providers operating out of 26 countries, Total Produce came to Serbia to present their values, portfolio and working standards to Serbian apple producers. This was a critical step towards market diversification and opening of the UK market for Serbian apples.
- In coordination with USAID’s Regional Economic Growth (REG) Project, Serbian lead fresh berry exporter “Brestovik” was introduced to and secured an agreement with Greenyard Group, one of the EU’s largest distributors of fruits and vegetables.
3. Trade support: For many small companies, especially those working in niche sectors, consolidation of product offer is key to accessing new markets. From its launch, the Project recognized importance of mobilizing trade experts to assist SMEs in the fruit and vegetable industry.
Through systemic assistance, trade experts engaged by the Project are helping companies in:
- Market research for specific groups of products and specific international markets;
- Training SMEs in specific market standards and requirements (e.g. Global GAP, Halal, etc.);
- Assistance to adapt the products to match specific market requirements;
- Promotional events and B2B matchmaking with international buyers.
In 2018, the Project engaged two facilitating partners to promote Serbian food products in foreign markets:
- Export of fresh Serbian fruits and vegetables to the United Kingdom and Romania; and,
- Serbian shelf-ready, niche food products in the Middle East, and development of distribution channels in the EU to satisfy demand for Halal-certified food.
To date, 15 Serbian companies were assisted through this model, including export of fresh apples, berry fruits and shelf-ready products to EU and Middle Eastern markets. First exports resulting from these activities are expected in the beginning of 2019.
4. Industry Leaders: Small farmers lack access to export and local markets and face competition from imports. Project recognized the need to work with companies who promote strong cooperative models and provide opportunity to small producers to succeed in a global economy.
Together with the Project, selected lead companies developed cooperative models, integrating a significant number of SMEs and farmers into consolidated value-chains. These value chains cover gherkins and strawberries for export to Germany, and fresh and frozen berries for export to the EU market. Lead companies are building sustainable networks of suppliers by:
- Establishing long-term takeoff agreements with renowned international buyers;
- Negotiating favorable conditions for farm inputs and covering farmers’ operating expenses;
- Providing professional and responsive advisory and training systems;
- Organizing efficient logistics and sales/export and providing fair buy-out to value chain members.
The Project will continue developing such integrative models, making Serbian farmers and SMEs more competitive. Key elements include: teamwork, transparency and fair-trade relations.
5. Hub support models – Based on successful models in the IT industry, CSS is partnering with retail chains and RAS to develop an eco-system of support (hubs) for firms before they enter retail product shelfs.
Premium Food Design Hub Design – Hubs are recognized as entrepreneurial “hot spots” to perform support activities to food start-ups and SMEs in order to raise the profile of Serbian premium food products in domestic and international markets. These support activities include better access to finance and competitiveness improvement. The objective is to develop a viable business model to support creation and better use of creative industries, technologies and innovative solutions in the food industry.
dm incubator– The dm (drogerie markt) Incubator initiative provides 360-degree support to Serbian food start-ups and small-and medium-sized companies in product development and access to market consultancy support. Both dm and external experts will work together in delivering international and domestic know-how to innovative businesses to help them develop and position their products in dm stores outlets across the country. Approximately 20 selected food producers will be welcomed in February 2019 when the official dm booth camp kicks-off. Final products will be enter dm’s retail channels in May next year.
