World Fruit Conference
- real forum for debate
3 International
World picture
Global flows
Importers under pressure
Competition
Dedicated
Exchange of ideas
ISSUE 27/21 MARCH 1994
Rotterdam, 10 March. Over 200 representatives from the worldwide fruit sector came to
the World Trade Centre in Rotterdam to examine the current state of the industry, discuss
trade flows and pinpoint new developments. For hosts Rabobank and the Port of
Rotterdam, and the participants, the conference was a real success.
Six speakers had been invited to address
the conference, each drawn from a specifïc
area of the industry. Keynote speaker Arthur
Dunkel, former director general of GATT,
expounded the effects of trade politics on the
world fruit market. He projected a global cli-
mate in which all quantitative barriers, or
quotas, were converted into tariffs, which
would, he said, ultimately be reduced radical-
ly, creating a solid and homogeneous base for
further liberalization. This would lead to freer
trade and was especially good news for tropi-
cal fruit producers as the Uruguay Round had
achieved an overall lower level of tariffs for
produce form these countries.
It was against this general global trade back
ground that the other five speakers filled in
the World fruit picture, rather like a jigsaw
puzzle. First to speak was frozen concentrat-
ed orange juice (FCOJ) processor and expor-
ter Rogerio Braga of Cambuhy Citrus in
Brazil. He outlined the present problems con-
fronting not only his field but the whole ci
trus growing and processing sector. In the
1980s, Brazil's main competitor in this field,
Floria, was hard hit bij a number of freezes,
resulting in loss of production over five years.
'Prices went up, of course,' he said, 'and this
meant a large number of new plantings were
done to take advantage of these higher prices.
What is happening today is that these new
groves are now producing and we're facing
overproduction. So I predict prices will
remain low for a long time.' Like other play-
ers in this sector, Braga described how his
company is looking for and developing new
markets, such as Korea and other South-east
Asian countries. 'If we don't find these new
markets, then we will have to cut back on pro-
Fruitfor thought - participants follow the
debate.
duction, and that will also have real conse-
quences for the growers.'
What was striking in Braga's talk was the
overwheliming sense of a global industry that
emerged from it. To him, and to most of the
participants, the whole world was clearly their
market. FCOJ was processed in Brazil, shipped
to Rotterdam for transshipment to packers in
Europe, and subsequently redistributed all over
the world. This not only applies to this specific
commodity, but to most of the fruit, either
fresh or processed, which arrivés daily in the
port of Rotterdam.
The next speaker, A. Hofman of the Atlanta
Group in Bremen, argued the importer's
point of view. He explained that the exporters
were nibbling away at this business from one
side and the retailers, especially the large chains,
were chipping away at the other. But his view
is that there is a need for the value added
provided by the importers, a notion which is
shared by a Chilean Rabobank cliënt who acts
as broker for a number of European and US
companies. He sees the fruit business is a long
chain, and each link has a vital role to play.
Clearly, there will be some overlap, but that is
justified and even healthy. Putting the two ends
of that chain in the same basket is, he believes,
a little exaggerated.
Hofman introduced a real debate into the
meeting by challenging the next speaker, Karei
Dorsman of the major Dutch supermarket
chain, Albert Hein, to deny the importance of
the importer's role. Dorsman, whose views es-
sentially represent those of the consumer, was
only too willing to argue in favour of cutting
out the 'middle man'. He predicted a future in
which growers and retailers enter into part
nerships in order to better serve the consumer.
'Consumer behaviour is extremely hard to pre
dict,' he said, 'so I'm convinced that the retailer,
who is closest to the consumer, is better placed
to understand and meet their demands.'
The afternoon session began with a presenta-
tion on the food and fruit port of Rotterdam,
in which chairman W.K. Scholten explained
the major expansion which has taken place to
serve the sector over the past 10 years. While
putting impressive numbers on the table, and
outlining the high-tech facilities available in
'the largest port in the world', his main aim ap-
peared to be putting a message across to the
participants. 'We are open to discussions on
any form of partnership,' he said, 'and are even
prepared to discuss the construction of dedi
cated facilities for specific products.' Rabo-
bank's Henk Visser took over from him as final
speaker. He went into the banking products
available wolrdwide to players in the sector and
provided an overview of world fruit financing,
before opening the panel discussion.
This proved a lively and often humourous
exchange of ideas between panel and audience.
Topics such as the environment, packaging for
better preservation of freshness, international
trade disputes, sales mechanism in various
parts of the world, trade lobbies - all were
serious points of discussion, but there was also
room for wit and laughter as the whole con
ference agreed the seminar had been an un-
qualified success. The session was rounded off
amidst calls for a new conference in which the
ongoing debate among growers, processors, ex
porters, importers, shippers, port authorities,
retailers and agri-bankers can be pursued with
the vigor and efficiency of the Rottterdam
meeting.
Former GATT secretary general Arthur
Dunkel -forecasting liberalization
