International market research

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1 International market research An international marketing strategy for Dutch Raw Milk Cheese in Austria Maaike Bouma ( ) Charlotte Fievet ( ) Emilia van Kuijeren ( ) Roelinda de Ridder ( ) Stefan Spadt ( ) IBS2A Dutch Raw Milk Cheese Project, supported by: Slow Food

2 International market research An international marketing strategy for Dutch Raw Milk Cheese in Austria Maaike Bouma ( ) Charlotte Fievet ( ) Emilia van Kuijeren ( ) Roelinda de Ridder ( ) Stefan Spadt ( ) IBS2A

3 Module 3 International market research report International Business Studies School of Business and Economics Windesheim Zwolle The Netherlands Preface Friday, 16 March 2012 Slow Food was founded in 1989 in response to fast food, flavoured superficiality and the increasing uniformity of food. The movement strives for tasteful products of good quality which are sustainably produced. After having done the research report we came to the conclusion that Slow Food can help promote Dutch raw milk cheese in the Austrian market. This market research plan has been written in order to explore the opportunities for Slow Food. The main question for this market research plan is: How can Slow Food help Dutch raw milk cheese farmers to successfully enter the Austrian market? In this market research plan you will be able to find the answer to this question and see how the research is conducted and which types of research were used in order to see which opportunities Austria has for Slow Food. In the end, we would like thank our mentor Sander Janssens for his feedback and guidance during this project. We would also like to thank Karl Schmidt, for his hospitality to invite us for an interview at the Chamber of Commerce in The Hague. Signed by, Maaike Bouma Charlotte Fievet Emilia van Kuijeren Roelinda de Ridder Stefan Spadt 16 Mars, 2012

4 Executive Summary Within this report, an answer is given on the main question: How can Slow Food help Dutch raw milk cheese farmers to successfully enter the Austrian market? This research was made for Slow Food the Netherlands to find out whether there is a market for Dutch raw milk cheese in Austria, whether this market is large enough and how to target this market. This was done by elaborating on the market of Austria, first looking at Austria in general, after that elaborating on the current cheese market of Austria and after that looking at the niche market: the raw milk cheese market in Austria. Part A consists of the macro analysis, existing from the DESTEP analysis, which describes the current situation of Austria. An overview on the current cheese market of Austria, the relationship between Austria and the rest of the world, mainly focussed on the relationship between Austria and the Netherlands. And the cultural differences and equations between Austria and the Netherlands are described in this part. This gives an overview on the opportunities and threats that can influence the sale, but cannot be influenced by Slow Food the Netherlands itself. To successfully enter the Austrian cheese market, a closer look on the cheese market is necessary. This is done in part B, the Meso analysis, which exists of a chapter considering export barriers, when exporting products to Austria. At this point, no direct export barriers can be found, but several risks are described in this chapter. After that the several target groups of Dutch raw milk cheese in Austria are described. Followed by the main competitors within the cheese market and also within the substitute product markets and the threat of new entrants is described. The distribution analysis, which explains the best transport companies that the Dutch farmers can use to distribute their product from the Netherlands to Austria, can be found in the next chapter. And after that several motivations for specialized shops, restaurants, trade fairs and events to buy and sell Dutch raw milk cheese in Austria are described. Finally the buying process of Dutch raw milk cheese in Austria is described, this contains the different shops, restaurants, markets and trade fairs that can buy the product and information on the potential societal partners for Slow Food the Netherlands. In order to make a well organized marketing plan for Dutch raw milk cheese in Austria, Slow Food also needs to know who their target really is. This is explained in part C, which contains the micro analysis. This micro analysis explains the main target group, motivations and benefits for that target group to buy Dutch raw milk cheese and a persona based on research. This persona based on research describes the character and features of a fictitious Austrian person who could buy Dutch raw milk cheese in Austria. The conclusion gives an answer on the main question and the recommendations are the guidelines and measures that Slow Food the Netherlands needs to follow to successfully enter the Austrian market. This way, Slow Food the Netherlands can successfully launch Dutch raw milk cheese on the Austrian cheese market.

5 Table of Contents Ch1 Introduction... 8 Framework... 8 Structure... 8 Method... 8 Ch2 DESTEP analysis Demographic factors Economical factors Social Cultural factors Language and Religion Norms and values Eating and drinking habits Lifestyle Business etiquettes and protocol Technological factors Infrastructure, communication, social media and the climate Slow Food Austria Ecological factors Political factors Ch3 Cheese in Austria Overview current main cheese/food production/consumption Attitude towards food in general Consumer attitude towards raw milk cheese Ch4 Differences between Austria and the Netherlands Cultural differences related towards promotion of raw milk cheese Promotion of raw milk cheese in the Netherlands Promotion of raw milk cheese in Austria Relationships between Austria and foreign countries Relationship between the Netherlands and Austria Perception of NGO Slow Food in Austria Ch5 Export barriers Ch6 Consumer market segments The different consumer market segments The main target group The bargaining power of customers Competitive rivalry within the raw milk cheese industry The threat of new entrants The threat of substitute products Choice of competitors Ch8 Distribution analysis Criteria between the counterparties The possible distribution channels Ch9 Motivations for the businesses Motivations for specialized shops Motivations for restaurants Motivations for events and trade fairs Ch10 Buying process Potential shops and restaurants Main publications relevant to the consumer/distribution channels Strengthening the producer-consumer relationship and the price question A new consumer: the co-producer... 38

6 Sustainable diet The rediscovery of the pleasure of taste Societal participants Partnership for Austrian cheese to Vorarlberg Ch11 Individual motivation for buying raw milk cheese Chosen potential consumer target group and why Motivations for buying raw milk cheese Persona based on research Ch12 Conclusion and Recommendations Annex 1. Project Contract Definition of the problem Project Commission The market research on Friday 16 march 2012 for 16:00 hour Blog International marketing plan Promotional Video Project activities, planning, deadlines and responsibilities Project planning for the market research Project Contract and the DESTEP analysis The Macro analysis The Meso analysis Individual motivation for buying raw milk cheese Final Project planning for the Blog Project planning for the international marketing plan Project planning for promotional video Project Boundaries Quality Project Organization Contact details Project information Special tasks Project costs and revenues Costs made by Maaike Bouma Costs made by Charlotte Fievet Costs made by Emilia van Kuijeren Costs made by Roelinda de Ridder Costs made by Stefan Spadt Risk analysis Code of conduct Appendix 2: 14. LMSVG Rohmilch: Extract of the Austrian Law for food, paragraph dealing with raw milk products: Der Bundesminister für Gesundheit kann nach Anhören der Codexkommission im Einvernehmen mit dem Bundesminister für Landund Forstwirtschaft, Umwelt und Wasserwirtschaft mit Verordnung Appendix 3: Process Report Week Week Week Week Week Week

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8 Ch1 Introduction This chapter contains the framework, the structure and the method that was followed to successfully finish this report..1 Framework This report was written for Slow Food the Netherlands and consists of a market research report on Austria. To set up this report, the product Dutch raw milk cheese was chosen in order to find a large-enough market in the cheese market of Austria. The intention of the research was to find out if there is a large enough niche market for Dutch raw milk cheese in Austria. The main target of this research was to find out whether it is possible for the Dutch farmers, with the help of Slow Food the Netherlands, to successfully export their Dutch raw milk cheese to Austria. Therefore, a good relationship is needed with specialized shops, restaurants, trade fairs and events in Austria. This is necessary to properly introduce the product on the Austrian market. A distribution analysis had to be made to find the best way of transportation for the product and a competitor analysis had to be made to see what the main competitors are in Austria. The main question of this report is: How can Slow Food help Dutch raw milk cheese farmers to successfully enter the Austrian market?.2 Structure To realize this report, a good structure of this project is required, firstly the macro analysis on Austria is given. This contains a market analysis, existing from a DESTEP analysis, an overview on the cheese market in Austria and the differences and equations between Austria and the Netherlands. After that the Meso analysis on Austria is given, which exists from a full five forces model on the Austrian cheese market, described over several chapters. The forces of the different competitors, the customers and the distributors are described in this part. Finally, a close look upon the customer is done by a micro analysis. In this micro analysis, the main target group of Dutch raw milk cheese in Austria is given and explained why this is the main target group. After that different motivations for customers are given to buy Dutch raw milk cheese and at last a persona based on research is made. Combining all these three different parts, a conclusion can be made on the main question of this report. Different recommendations can be given to Slow Food the Netherlands and the Dutch farmers on the market for raw milk cheese in Austria..3 Method This report was made in collaboration between: Maaike Bouma, Charlotte Fievet, Emilia van Kuijeren, Roelinda de Ridder and Stefan Spadt. They have worked according to a strict planning and deadlines, which are described in the project contract. They worked according to a fixed pattern: plan of approach, gathering information through different sources and processing this into a complete market research on Austria. The fixed pattern, strict planning and deadlines were followed by all the group members. They worked according to a project contract, which can be found in annex 1: Project Contract.

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10 Part A Macro analysis In this part, the macro analysis is given. The macro analysis exists of several different parts. First the DESTEP analysis is described, which consists of the Demographic, Economic, Social Cultural, Technological, Ecological and Political factors of Austria which are necessary to successfully export Dutch raw milk cheese of Slow Food to Austria. This is followed by an overview and explanation of the current main food and cheese production and consumption in Austria. This chapter consists of the overview of the current main cheese and food production and consumption in Austria, the attitude towards food in general and the consumer attitude towards raw milk cheese in Austria. The differences between the Netherlands and Austria can be found in the following chapter. First the cultural differences between Austria and the Netherlands are given. After that the cultural differences, related to promotion of raw milk cheese is further described. It is important to know whether there are any differences in promotion, because it is important not to use Self Reference Criterion (SRC). This is the relying on one s own values and practices for interpretation and prediction. 1 Also the emotional image of foreign countries and especially the Netherlands in Austria is described and the perception of NGO Slow food in Austria is clarified in this chapter. Ch2 DESTEP analysis The DESTEP-analysis is done by investigating the following factors: Demographic factors, Economic factors, Social Cultural factors, Technological factors, Environmental factors and Political factors. These factors are important to understand Austria and the inhabitants of Austria. And this information is of great importance to the SWOT analysis, because it can influence the company s success, but it cannot be influenced by the company itself Demographic factors In this section, the demographic factors of Austria will be explained. This contains the population of Austria and its composition. This way it is easier for Slow Food to calculate the target market for raw milk cheese in Austria. In the following table, the population of Austria form the years 2000 to 2010 are described on gender. This is important for Slow Food to know, so they can calculate their target market better and see whether it will grow in the following years. The 1 Verluyten, Paul S., (2009), Intercultural Communication in Business and Organisations, an introduction, 8 th reprint, Uitgeverij Acco, Belgium 2

11 table beneath this contains the composition of the population of Austria by age category. Table 2.1: The population of Austria throughout the years, categorized on gender. Year Total Men Women Table 2.2: Composition of the population of Austria by age. 3 Year 0 to 14 years to 19 years to to to years 65 years 75 years years years years and over and over and over In order to define the target market of raw milk cheese, it is essential to know about the Austrian population structure. According to Austrian statistics, the group of years is the largest one. The category of years old is more likely to afford luxury food products, because of fixed incomes. The category of years old is often students and are more likely to afford basic needs in terms of food. On behalf of exporting raw milk cheese, this category of years could be a potential target market for Slow Food. What also could be concluded is the fact that the target group increased from in 2000 up to in 2010 and therefore is the fastest growing population in Austria. Table 2.3: Austria s largest cities in Name Population Latitude/Longitude Vienna, Vienna 1,691, / Graz, Styria 222, /

12 Linz, Upper Austria 181, / Salzburg, Salzburg 150, / Innsbruck, Tyrol 112, / Klagenfurt am Wörtersee, 90, / Carinthia Villach, Carinthia 58, / Wels, Upper Austria 57, / Sankt Pölten, Lower 49, / Austria Dornbirn, Vorarlberg 43, / These are the ten largest cities in Austria in terms of population. To export the raw milk cheese a segmentation of the Austrian market needs to be made. For example Slow Food shouldn t export its product to small villages in Austria, because these places usually don t dispose of high quality stores or supermarkets. As Austria s soil is divided in high and low surfaces, this needs to be taken into consideration in terms of transportation ways. For instance, Slow Food could start to export to the five largest cities in Austria to begin with such as Vienna, Graz, Linz, Salzburg and Innsbruck. Table 2.4: Per capita consumption of Milk and Milk products in various countries 2009 Country Liquid milk drinks Cheeses (kg) Butter (kg) (litres) Finland Sweden Ireland The Netherlands Norway Spain Switzerland United Kingdom European Union ( countries) Germany France Austria Greece Italy According to these data Austria is highly classified in the consumption of cheese per capita. Therefore it can be concluded that there is a potential market for Slow Food. 2.2 Economical factors This chapter will focus on several key factors related to the economy of Austria. These factors are very important to this research, such as income and to how many

13 the people spend on food. The economy of Austria is in comparison to other countries of the EU, especially Germany GDP per capita The GDP per capita is $14,700 which is quite high in comparison to the world. The GDP per capita shows the money that could be spent per inhabitant of Austria. This is also called purchasing power. Purchasing power is the quantity of goods and services an inhabitant can buy income. This is high, which is good for the sale of Dutch raw milk cheese, because the people of Austria can spend more money on goods and services GDP real growth rate The GDP real growth rate rises every year. Last year it was 3,3 %. Austrians earn more money so they can spend more than before. This is positive for the sale of raw milk cheese in Austria, because it is a luxury product Poverty line The percentage of people below the poverty line is 6%. This is a very low percentage which is also good for a product like raw milk cheese Import and export Austria imports a lot of products, especially from a lot of other countries of the European Union, namely 68%. But looking into food products, most of the nation s food requirements are produced in Austria itself, which is 90%. This is not a positive number for the import of Dutch raw milk cheese, because its domestic products will be chosen first.

14 2.2.5 Currency The currency of Austria is also the Euro which makes it easier and cheaper to do business. Otherwise you have to deal with an exchange rate Agriculture products The most produced agriculture products in Austria are grains, potatoes, wine, fruit, dairy products, cattle and lumber. The raw milk cheese will fall within the scope of dairy products. So in Austria there will be a market for dairy products Social Cultural factors The factors social cultural are very important for this research, especially the analysis on the eating and drinking habits of the Austrian is very important: eating indoors or outdoors, what kinds of spreads they utilize the most, whether they buy more domestic brands or foreign brands, etcetera. Other important social cultural factors are the official languages, religion, norms and values, lifestyle and business etiquettes and protocol Language and Religion The most widely spoken language in Austria is German by 88.6% of the population. In addition, there are some minorities, such as: Turkish by 2.3%, Serbian by 2.2%, Croatian by 1.6% and Slovene and Hungarian by 5.3% of the population. The domestic religion in Austria is Roman Catholic, 73.6% of the Austrian population is Roman Catholic. The rest contains of Protestant 4.7%, Muslim 4.2%, other 3.5%, unspecified 2% and none 12% Norms and values Austria can be seen as a formal culture, this means that the inhabitants are conservative, neat, closed, and retentive. Family is the basis of the social structure in an Austrian life, families are usually small and live in either the same city or in the same region. The weekends are mostly dedicated to the family, that s when the family does outdoor activities or visits other family (for example grandparents). Home is a very important thing for Austrians and they spend a lot of time in it, because of that they keep it neat and tidy. Not only indoors, but also the outdoors of the house is important to keep clean. This is important, because it shows a form of status, they take pride in decorating their house and also the neighbours need to see this from the outside. Because Austria is a formal culture, home is considered to a place to relax and chill and only close friends and family are invited in their house, because it is a place for informal communication. In generally Austrians are conservative people, this means that they are retentive and aimed at preservation. They come across as cautious and moderate and they organize their lives with discipline and compartmentalization. For example, even

15 when an Austrian is dressed informal, they still look neat and preservative. Punctuality is rather important in Austria, it can be seen as a sign of respect towards each other Eating and drinking habits There are several drinking habits in Austria. First of all, is Austria a land of beer, it is third on the list of the most beer per head basis (110 litters per year). But drunk or disorderly behaviour is rare in Austria, because it is a formal culture and these things are not accepted. Cafés are an everyday part of city living in Vienna, Austria, it is an essential part of the Viennese life. Just as in Italy and in Spain, there are a lot of coffeehouses in Austria with different kinds of coffees, such as: großer Schwarzer, Verlängerter and Melange. The national drink of Austria is the soft drink: Almdudler, flavoured with elderflower. Also the energy drink: Red Bull, comes from Austria. Next to drinking habits, there are also eating habits to be found in Austria. The most important meal of the day in Austria is lunch. It is a warm meal, which can be compared to the English/Dutch dinner. Austria is known for its pastry, pies, cakes and desserts. Some examples of famous cakes are: sachertorte, dobostorte, apple strudel and topfen. The most popular meats in Austria are: pork, beef and chicken. The mealtimes are organized in a formal and mannered way, the father is the first one who gets served, because he is seen as the conversation leader and his opinion is the most important. When dining out at friends or family, it is important to bring a small gift, such as flowers. Eating is not only seen as survival but it is also seen as a social event. They either eat with family or friends, or talk to complete strangers in a restaurant or coffeehouse, conversation during eating is very important, it is a part of the Austrian soul. An Austrian starts the day with small crisp rolls, preserves and butter with a cup of coffee, this is their breakfast. At 10:00 a.m. is it time for a small bowl of hot gulyas (sort of soup) or a sausage with bread and pickles. At 1:00 p.m. the most important meal of the day starts: lunch, starting with soup, roast meat or chicken, break, noodles or dumplings, salad, cheese, fruit or compote. In the afternoon, the Austrian drink coffee and enjoy pastry, pie, cake or several desserts. At 7:00 p.m. the family or friends get together for dinner, a meal which can be compared to lunch. After that the Austrian goes out (to the movies, theatre, friends) and utilizes a simple snack of sandwiches, cold salad plates, pas-tries and more coffee Lifestyle The culture in Austria is heavily influenced by its neighbours: Italy, Poland, Germany, Hungary and Bohemia. The north of Austria tends more towards Germany, that is where the people are more German (more towards punctuality) and the south of Austria tends more towards Italy, where the people tend to be more chill and relaxed about time

16 The Austrian soul consists of communication, music and skiing. It is known for its cultural festivals, such as Salzburger Festspiele, Bregenzer Festspiele and the Vienna Staatsoper. The capital Vienna is known as the centre of musical innovation for centuries. As explained above, communication is also very important and especially shared during meals. Skiing is the most famous sport in Austria. Austria has some of the top ski resorts, such as St. Anton and Arlberg. Austria is known to have a high quality lifestyle because of its thriving economy Business etiquettes and protocol When doing business with Austrians it is important to follow the business etiquettes and protocol of the country. This way, Slow Food can have a successful introduction on the Austrian market. First of all, it is important to dress according to Austrian standard: conservative and according to the European conventions. When meeting an Austrian for the first time, you will be judged on your clothing, so therefore this is really important. Although Austrians love to have a personal relationship as well as a business relationship, it is not necessary to fully dedicate oneself into having a personal relationship. Austrians prefer it, but it is not needed. Social status, just as in Germany, is very important in Austria. Therefore, they are interested in the amount of university degrees, in your achieved title and how long your company has been doing business. This is also because the Austrian only does business with people from their own level. When doing business, it is normal to start off with a joke or small talk. But as business continues, it is important to show good manners and act serious for achieving business goals and objectives is very important. Communication is always formal and goes by a strict protocol. You always use sie, unless invited to use the informal du, which will take time and effort (a personal relationship as well). Addressing the Austrian goes by their academic title and surname, because first names are only shared with family and close friends. In doing business with Austria, written communication is just as important as spoken communication, to ensure everything is clear. 2.4 Technological factors In this section, the technologic factors of Austria are explained, it contains the different elements, such as: infrastructure, communication, social media and provision of information. This information is especially important for the distribution and marketing of the product Infrastructure, communication, social media and the climate. In terms of infrastructure, communication, social media and provision of information there are no significant differences between The Netherlands and Austria, which are worth to be stated. The climate or weather has no influence on trading raw milk cheese. Austria is also easy to reach from The Netherlands. The average distance between the two countries is approximately 900 kilometres Slow Food Austria When exporting raw milk cheese to Austria, it is important to know about the activities of Slow 10

17 Food Austria. Slow Food Austria is part of the "Slow Europe"-network. Slow Food the Netherlands is also a part of this. One main activity is the organisation of an annual organic fair in the town hall of Vienna. This fair is named "terramadre". In 2011, approximately visited terramadre. Among the fifty exhibitors, also some foreign exhibitors could be found - in 2011 for the first time. Other activities of Slow Food Austria are organizing projects and events. They also work together with authorities and special organisations. Partners of Slow Food Austria are also restaurants that cook with organic food Ecological factors Ecological factors, which are of importance of this research are the regulations which Slow Food has to maintain for exporting raw milk cheese to Austria. In Austria, raw milk cheese is mentioned in the LMG (= Lebensmittelgesetz), the law for food. This law refers to the EC Regulation No 853/2004 of the European Parliament and the European Council, who lay down specific hygienic rules for food of animal origin. This EC Regulation is valid in Austria and in The Netherlands as well. In appendix 2, the extract of the Austrian law for food can be found. The specification as ecological origin is stated by different logos on the products. The Agrarmarkt Austria, an organisation governmental organisation, has created two different logos for ecological products: a red logo and a black logo, which can be seen in following figures. The red logo is used for ecological products from Austria. The black logo is used for ecological products from other countries than Austria or no mentioned region of origin. According to EC Regulation 834/07 and 889/08, all wrapped ecological products should have this green logo. Private, regional or national logos could also be on the packing. This is the Logo of the EC for ecological products, which can be seen on the left Political factors This subchapter contains important political factors of Austria that are of importance to Slow Food LMSVG Rohmilch

18 On the 4 th of January 1960, the European Free Trade Association was created. It concerned seven countries apart of the European Union. The seven countries belonged to the European Economic Community, which involved: United Kingdom Denmark Norway Switzerland Portugal Sweden Austria In 1995, Austria became a member of the European Union. The six founders of the European Union signed the European Economic Community (EEC) in 1957 in the Treaty of Rome. Each country that entered the European Union was included in the EEC. This economic union between countries of the European Union created a customs union and a common market. The common market was introduced in The common political customs permit to avoid customs duties in Austria as in every countries of the European Union. In 1999, Austria changed its currency to the euro like other European countries except Denmark, Sweden and United Kingdom. Netherlands is one of the six founders of the European Union, so they don t have tariffs. The Austria VAT is 20%, but for agricultural products this rate is reduced to 16% against 6% in Netherlands. So the cost of exports is higher in Austria. The most important economic zone in Austria includes the cities of Vienne, Vorarlberg and Burgenland. Austria imports more than it exports according to a survey in a scientific revue called Persée. This is interesting because the Netherlands has its chances to import its cheese since the country imports a lot of foreign products Now the main demographical, economical, social cultural, technological, ecological and political factors of Austria have been described, an explanation can be given about the current cheese market in Austria. This will be explained in the next chapter. Ch3 Cheese in Austria This chapter describes three different subjects. First an overview of the current main cheese and food production and consumption will be given. This will indicate how many sorts of cheese are produced in Austria and how much is consumed in Austria. Further on, the attitude towards food in general in Austria will be explained. After that the consumer attitude towards cheese is explained

19 3.1 Overview current main cheese/food production/ consumption Austrian cheeses are known for being very different and distinctive from others countries. Cheeses are mainly produced in dairy and cheese industries. According to an old tradition, Austrian people are used to transmit recipes from generation to generation. The Eastern and the Western parts of Austria are the most famous regions for the production of cheeses. The traditional cheeses from cow milk, such as bergkäse and surakäs from the Vorarlberg region, are mainly produced in the Western part. While, in the Eastern part, it concerns essentially sheep milk cheeses. This difference is due to new producers who came in the Eastern region and specialise in sheep milk cheeses which were less known in Austria. However, the cow milk cheeses stay the most important and the most famous in Austria. In Austria, 55 suppliers on cheese can be found, these are producers and distributors of cheeses in the food sector. They prefer to focus on the quality of cheese instead of the quantity. The cheese factory does not count many suppliers, producers and distributors but they look for the best quality they can. Cheeses are considered like a luxury good, which is why they pay so much attention in the quality of cheeses. From 2000 to 2010, the production of cheese in Austria increased going from 119 to 155 tons. The three main industries producing cheeses in Austria are: ALMA VORARLBERGER-KASEFABRIKATION UND EXPORT, REGISTRIERTE GENOSSENSCHAFT MIT BESCHRANKT Nature of activity: Producer Year of creation: 1921 Size of the corporation: From 101 to 200 Turnover: > K GEBRÜDER WOERLE GESELLSCHAFT M.B.H. Nature of activity: Producer Year of creation: 1874 Size of the corporation: From 201 to 500 Turnover: > K RUPP AG Nature of activity: Producer Year of creation: Unknown Size of the corporation: From 201 to 500 Turnover: > K The Best-known cheeses in Austria are: Tiroler Almkäse (cheese from pasture to cow's milk) Tiroler Bergkäse (mountain cheese from cow's milk) Tiroler Graukäse (gray cheese from cow's milk)

20 Hittisau (raw milk cheese) From 2004 to 2008, the total consumption of Austrian cheeses decreased from 19,2 kilograms to 18,7 kilograms per habitant. Since it is a luxury good, this is probably due to the 2008 s crisis Attitude towards food in general This subchapter contains all the information about food in Austria, what the importance is of food in Austria, how much is produced and consumed in Austria and what they produce and consume. Before World War II, 72% of the nation s food requirements was produced in Austria itself. After the World War II, it increased to 90% in the 1990s, although less than 20% of the land can be used for farming. Food that is grown in Austria varies from grains, sugar beets to potatoes and other vegetables and fruits. Austrians also breed pigs, sheep and dairy cattle and is known for its different wines. Because of the lack of agricultural land, farmers have concentrated on intensive agriculture on small plots of land. Organic farmer is extremely popular in Austria. Most farms in Austria are small, fragmented and owned by families, only 5.5% of the population holds agricultural jobs. 22 This is because farming is relatively expensive in Austria. These farm families mostly have more income by renting out rooms or serving as tour guides or ski instructors. 23 A new trend seen in Vienna, is that the cuisine of the countryside is gaining popularity in high class restaurants and more chefs use seasonal, local products and traditional cooking methods from the old imperial cuisine. This is because the tourists seem to enjoy this more than the traditionally served, more touristic, dishes of Vienna. 24 Since Austria joined the EU in 1995, the agricultural sector of Austria needed to reform under de CAP (EU s common agricultural policy) Consumer attitude towards raw milk cheese Organic food plays an important role in Austria. The Agricultural Department of the Austrian Ministry of Agriculture conducted a survey from their panel of households concerning their attitude towards organic food. 26 According to a survey, organic cheese has a share of 7% of the cheese market. Reasons for buying organic food are: to eat healthy 33% because of the organic production 15%

21 because organic products taste better 11% higher quality of organic products 10% better keeping of animals 4% When buying organic products, 19% of the Austrian consumers decide this because of the labelling. 16% decides this because of the origin of the products. The prices of organic products influence 10% for their buying decision. Austria has a long tradition in cheese production. There are about 200 types of cheese. Many of them reach good evaluations on international competitions. At the annual World Cheese Award 2011 in Birmingham, 2500 different types of cheese from 30 countries have been tasted. Cheese from Austria reached good scores. 27 Although the Austrian cheese is highly appreciated by consumers, there are also some fears about it. Especially raw milk cheese was in the headlines, because of several scandals with listeria bacteria in cheeses in Austria. On February 16th 2010, the Austrian Broadcasting Corporation (ORF) informed that six people died because of an infection with these bacteria. They were found in cheeses of "Prolactal", a company from Styria. 50 tons of cheese was removed from shops. 28 On December 4th 2011, the newspaper "Der Standard" wrote that listeria bacteria had been found in the rind of mountain cheese of "Tirolmilch". This may cause a risk for people with a weak immune system. 29 Dutch cheese is well known in Austria - mainly Gouda. 30 Now the overview of the country Austria is complete and a detailed view is given of the cheese market in Austria, the differences between Austria and the Netherlands can be explained, these are stated in the following chapter. Ch4 Differences between Austria and the Netherlands In this chapter not only the cultural differences between Austria and the Netherlands in the promotion of raw milk is explained. Also the relationships between Austria and foreign countries, especially the relationship between the Netherlands and Austria is explained. And also the perception on the NGO Slow Food in Austria is explained in this chapter. 4.1 Cultural differences related towards promotion of raw milk cheese This subchapter is divided into two parts, first the promotion of raw milk in the Netherlands will be described. After that the promotion of raw milk in Austria will be explained Promotion of raw milk cheese in the Netherlands Raw milk products in the Netherlands are mainly Dutch specialties, such as Gouda. The promotion of raw milk is not as popular as industrially produced cheese. The promotion of industrially produced cheese in the Netherlands is mainly done

22 through tv-commercials, because this is the most effective way in the Netherlands to promote cheese. Raw milk cheese is an exclusive product in the Netherlands, so it is not promoted that often in the media. The way raw milk cheese is promoted, is mainly on Food trade fairs, local markets and special offers at cheese stores. For example Slow Food Netherlands helps farmers promoting their raw milk cheese on annual events in specific regions. The following article represents an annual event in Zwolle about biological products, where Slow Food participated. According to this article Slow Food attracted a lot of interest of other people by participating at such events. 31 Article about promotion of products by Slow Food SLOW FOOD-STAND OP BIOVAK TREKT VEEL BEKIJKS Slow Food was één van de ruim 300 exposanten op de beurs, die plaatsvond op 18 en 19 januari in het Zwolse IJsselhallencomplex. De nadruk lag bij deze vijfde Biovak op biologisch voedsel. Er was veel belangstelling voor het gedachtegoed van Slow Food, aldus Aukje Schonewille van convivium Zwolle. Veel mensen vroegen informatie op, er hebben zich een aantal nieuwe leden gemeld en we hebben nieuwe contacten gelegd. Onder hen Theo Rietkerk, oudkamerlid voor het CDA en nu gedeputeerde van de provincie Overijssel voor onder andere de agrarische sector. Hij liet zich tijdens de openingsdag van de beurs uitgebreid voorlichten over de ideeën van de Slow Food-beweging. Deelname aan de Biovak, die dit jaar bezoekers trok, weerspiegelt de steun voor de biologische landbouw van de Slow Food-beweging in Nederland en daarbuiten. Die steun past in het streven van Slow Food naar duurzaamheid en een terugkeer van de menselijke maat in de agrarische sector. Dat uit zich onder andere in ondersteuning van kleine producenten, in het veilig stellen van Promotion of raw milk cheese in Austria The way cheese and raw milk cheese is promoted in Austria, is pretty much the same as in the Netherlands. Raw milk cheese is sold in cheese stores, local markets and food trade fairs. The main cultural difference between Austria and the Netherlands in promoting cheese, is the fact that in Austria e-commerce is used by consumers to buy high quality cheese. is one of those online shops where high quality cheese is sold originated from different countries. 4.2 Relationships between Austria and foreign countries On the 26 th of October 1955, Austria declared its permanent neutrality by constitutional law by the Declaration of Neutrality. The country states that it will not choose sides in a war. Within a neutral power, it is prohibited to enter military alliances and foreign countries are prohibited to establish military bases on Austrian soil. Also the Austrian State Treaty was made in 1955, which ended the four-power occupation and made it an independent and sovereign state. Austria has maintained its neutrality in most cases, however Austria s military does sometimes participate in some United Nations missions in other countries, only 31

23 related to peacekeeping. Austria does have a Federal Army called Bundesheer, but not an air force or a navy. The military service exists purely on volunteer basis. Austria participates in the North Atlantic Treaty Organization Partnership for Peace (The NATO), helping with peacekeeping missions in Bosnia and Kosovo. Austria is a member of the United Nations, the Council of Europe and the Organization for Security and Cooperation in Europe (OCSE). 32 But most important, Austria entered the European Union in An economic and political partnership between 27 European countries, including Austria and the Netherlands. It was founded after the Second World War between six countries: Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The reason why Austria entered the European Union in 1995 and not earlier, is because it did not want to lose its neutrality. 33 Internationalism is very important to Austria. Because of that, Austria has joined many international organizations, such as the EU, the NATO and the OCSE. Vienna, the capital of Austria, is a very important city for international collaborations. Vienna is inter alia, the host of the Secretariat of the OSCE (The Organization for Security and Co-operation in Europe) and Vienna is the headquarters of the International Atomic Energy Agency, the United Nations Industrial Development Organization, the United Nations Drug Control Program, the Organization of Petroleum Exporting Countries and the International Institute for Applied Systems Analysis Trade between Austria and other EU countries account for 68% of the Austrian imports and exports. Further on, Austria does a lot of business with the United States, which reaches to $10.0 billion Relationship between the Netherlands and Austria The bonds between Austria and the Netherlands goes back to the year 1477, this is when Maria of Burgundy married Maximiliaan of Austria, which connected the empire of the Burgundians with the empire of the Habsburgs. 37 After the Second World War the relationship between the Netherlands and Austria developed in a very positive way. Especially in the 1990s, because they were both in the European Union. That is when the Netherlands and Austria became like-minded. The Netherlands is represented in Austria by the Embassy in Vienna and its five consulates in Bludenz, Graz, Innsbruck, Linz and Salzburg. In addition to the Embassy in Vienna, the Netherlands is also represented by the Dutch Permanent Representations, seated in the OCSE and the UN. The Embassy of the Netherlands identifies important developments on financial, economical, fiscal and social areas and has the function of helpdesk for the Dutch inhabitants, private bodies and companies Herbert van Uffelen, E.A. van Trotsenburg, Niederlande-Österreich: Eine fünfhundertjährige Begegnung, Böhlau Verlag, Wien / Köln / Weimar, 267 p.

24 On the area of trade promotion, The Netherlands and Austria collaborate trough the Dutch-Austrian Chamber of Commerce. When looking at the trade between the Netherlands and Austria, a positive conclusion can be made for the Netherlands. The Dutch export to Austria comprises 3.2 billion Euros, the Austrian export to the Netherlands comprises 1.4 billion Euros. The Dutch tourist is very important for the economy of Austria, approximately Dutch people go on holiday to Austria (mainly for skiing and city trips to Vienna). This makes the Netherlands one of the main income sources for the Austrian tourism industry, which is one of the most important industries for Austria. The number of Austrian firms in Holland is approximately 90 firms. At this moment, approximately twenty big Dutch companies have an own establishment in Austria, of which some belong to the top 10 of foreign companies in Austria. Examples of these companies are Heineken, Philips, Shell, Unilever, DSM and Akzo Nobel. Heineken has its second largest main office in Vienna Perception of NGO Slow Food in Austria Austria is one of the world leaders in eating organically. This can be concluded because Austria has well developed markets for organic food consumption. Since Austria joined the EU, the demand for their own organic and biological products has increased and Austria became afraid for its competitors. Reasons because Austria is one of the world leaders in eating organically are that the Austrians think organic and biological food is really important for their own health and environment. Other reasons for the Austrians to buy organic, biological and environmentally friendly products are the taste, animal welfare and the origin of the product. The perception of organic milk and yoghurt is nowadays highly positive in Austria. The organic cheese market is still small but is increasing rapidly. Austria has one the most important organic and biological sectors worldwide. This can be concluded, because the focus on environmental management is high in Austria. The demand for biological products in Austria is still increasing and the producers have to expand their companies to meet the demand. Austria is known for its gastronomy and its tasteful and high quality products. Austria has also a lot of regionalized specialties, such as the different types of raw milk cheese. Biodiversity is a very important factor of Slow Food and it is gaining importance in a lot of countries and mainly in Austria. The Austrians will accept the objectives of Slow Food because the Austrians think it is really important to buy high quality products, which are made in a sustainable way. Sustainability, also a very important factor of Slow Food, is also getting more important, especially in Austria. In Holland, most people are not willing to pay more for Slow Food products than industrially made products, this is not the case in Austria. The Austrians are willing to pay more for a very good quality and sustainable product, than products available in the supermarket. This is an advantage for Slow Food to export its products with more success. 38