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Customers are Impressed with taste
ZESPRI ORGANIC promotion Kobe Japan
pleased” with growth in all markets including countries such as
Sweden where retailers are coming back to organics after exiting
two years ago due to stiff competition from the hard discounters.
Strong distribution across all countries plus close monitoring of
retail accounts, particularly the large accounts of Edeka in Germany
and Colruyt in Belgium, was key, according to Tom, in moving the
additional crop while minimising negative impacts on price.
ORGANIC RETAIL PROMOTION BELGIUM
It was a superior year for organic taste in 2007 with GREEN
ORGANIC average dry matter (DM) 17.0 and GOLD ORGANIC a
stunning 18.9. Japan received 90 per cent Y band, up from 70 per
cent in 2006, and the customers have noticed and taken action.
Japans largest organic customer JAPRO lifted their organic sales by
an impressive 25 per cent in 2007.
JAPRO’s President Abe-san reports part of the reason for his
company’s increased sales was the higher dry matter along with
consistent delivery of product: “Very good taste, much better than
last season” reported Abe-san.
This was a great result said Tom “Our Deputy General Manager in
Japan Ebihara-san and the marketing team have worked very hard
and produced an excellent result which included a 13 per cent
price premium. Organic growers also need to be congratulated for
understanding the importance of taste and delivering a good
product to the market.”
KOREAN KNOCK-BACK FORCES STRONG RESULT
Korean ORGANIC sales volumes were down in 2007 due to the
tough quarantine laws which included a zero scale tolerance.
GREEN ORGANIC was 10 per cent lower while GOLD was back a
signifi cant 80 per cent.
ZESPRI Korea Market Manager, Dan Mathieson, and the ZESPRI
Korean sales and marketing managers implemented market
strategies to mitigated the potential downsides.
“Korea pulled off an excellent result making the most of the shorter
crop at beginning of the season,” said Tom.
ZESPRI is working closely with HortResearch to ensure improved
market access for organic produce to Korea in 2008.
THE GOOD AND THE UGLY FROM NORTH AMERICA
The United States produced good news and bad in 2007. ZESPRI
took a bold decision and doubled the organic volume into North
America in 2007 based on positive demand feedback from key
customers. And while the early signs were positive this created
problems later on.
“In hindsight we shipped too much too early which resulted in a
higher fruit loss mid-season,” reported Tom. “Our two dedicated
distributors, Oppenheimer and Farmers Fruit Express, are aware of
this problem and will work to a new plan in 2008.”
ZESPRI North American Market Manager Karen Brux is experienced
and committed to continue to explore organic sales opportunities
going into 2008.
Tom attended the Produce Marketing Association (PMA) trade fair
in October.
“I met with a number of customers including Wholefoods buyers,”
he said. “Wholefoods, with over 300 stores, is the largest organic
retailer in the world. They’re really excited about ZESPRI ORGANIC
and want to increase their business with us, particularly GOLD
ORGANIC, but also GREEN”.
The recent market access scare to the US demonstrated how
vulnerable exporters are to foreign agencies changing their minds
on access conditions. The United States Department of Agriculture
(USDA) has reversed its decision on certain materials and Excel Oil
and D-c Tron are again accepted for use on organic product
imported into the United States.
“It was great to see ZESPRI, BioGro and the NZ Food Safety Authority
working together to put the NZ case to the USDA,” said Tom.
EAST AND SOUTH EAST ASIA SHOWS PROMISE
New organic stores such as 360 in Hong Kong and a greater
awareness of eating healthy food is pushing organic demand in this
region according to market manager Kelvin Bezuidenhout. “Sales
doubled in Singapore and Hong Kong this year, and while the