EconomicchallengesoftheEuropeanfruitandvegetables.docVIP

Economic challenges of the European FV and potato processing industry Xavier Gellynck David Keirsebilck (2006). UGent: Working Paper 06.03 Introduction The European fruit, vegetable (FV) and potato processing industry has undergone significant changes during the last two decades in response to changing consumer demand for new and different products and to the evolution of a more open trading environment. Under the influence of globalization, the processing industry has changed from serving a protected, domestic-oriented market to one that is more open and competitive. In this report, an overview is given of the current situation in the fruit, vegetable and potato processing industry. Current trends and developments are determined and evolve the identification of challenges for the coming decade. Methodology The conceptual framework considers the overview of the determinative future perspectives in the FV processing industry. A distinction is made between two large groups, namely market conditions on the one hand and production conditions on the other hand. It is the objective to follow this conceptual framework in order to determine the challenges of this part of the agribusiness (Fig. 1; De Groot e.a., 1994) Market Conditions The market conditions are both depending on the developments in an international context and the market approach. The international context is strongly influenced by policy measures and trade regulations, the WTO and the CAP. The market approach discusses the evolutions of consumer preferences and trends. Further on, some global socio-demographic evolution are key driver for changing consumer preferences. International Framework International developments In general, the exchange rate and the gas oil prices have a major impact on the profit margins of food processing companies. External factors such as the concealed threat of terrorism, Iraq, hurricanes and governmental policies are keeping the co