Opportunities and challenges for. development in the world. Louis Chirnside WPTC President
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1 Opportunities and challenges for the tomato processing industry development in the world Louis Chirnside WPTC President «Chinese Tomato Processing Along with the World» Symposium Beijing, Monday 6 August 2007
2 The World Processing Tomato Council Mediterranean area: European Union ( France, Greece, Italy, Spain, Portugal), Others (Turkey, Tunisia, Israel, Morocco, Iran, Ukraine,.) North America: Canada & California Others: China, Australia, Japan, South Africa, Argentina & Chile 30.1 million tonnes of tomatoes = 91% of world production
3 Evolution of world production World production since 1989, in tonnes OTHER NAFTA AMITOM f (Sources: WPTC, Tomato News)
4 Production concentrated in a few countries f Italy California Iran China Turkey Spain Brazil Portugal Greece Chile Tunisia Canada Other US Argentina The 14 largest processing countries represent 92 % of global production (Sources: WPTC, Tomato News)
5 and in a few companies TIANYE PARMALAT AGROZZI* ACONCAGUA FOOD CONSERVE ITALIA HEINZ* UNILEVER** FU YUAN grp PCP* TOMA-TEK* RIO BRAVO* C.I.O CAMPBELL* LOS GATOS CONAGRA * INGOMAR* SK FOODS CHALKIS* TUNHE MORNING STAR 0,00 0,50 1,00 1,50 2,00 2,50 3,00 The 20 top companies represent 56% of world processing capacity (Source: Tomato News)
6 (Sources: WPTC, Tomato News) A world market Distribution of the population by region SOUTH AMERICA 7% NAFTA 9% EU-15 8% EU-10 2% Other Europe 7% AFRICA 4% ASIA PACIFIC 63% Distribution of the total consumption by region Distribution of the production by region NAFTA 41% EU-15 27% NAFTA 34% EU-15 25% EU-10 1% Other Europe 1% SOUTH AMERICA 6% ASIA PACIFIC 8% EU-10 2% Other Europe 7% AFRICA 9% SOUTH AMERICA 7% ASIA PACIFIC 18% AFRICA 14%
7 (Source: Tomatoland) Large international trade Main exchanges - industrial tomato products CALIFORNIA South America U.E. Africa Russia / Eastern Europe Turkey Central Asia Middle East CHINA Japan South East Asia CHILE Annual trade = 10 million MT. fresh tomatoes or 1 Billion US$
8 Huge variations in consumption (Source: Tomato News)
9 California Strengths Consolidation of the industry Large modern factories Large stable domestic market Opportunities Exports to Europe and South America Weaknesses Water availability Competition with other crops Threats Mature domestic market, little growth Urban sprawl
10 European Union Strengths Well established industry Knowledgeable and organised growers Ideal climate in some regions Opportunities Increasing consumption in Eastern Europe Concentration of the industry Weaknesses Too many small operations High costs of production Threats Uncertainty due to change of subsidy system Imports from China and potentially California
11 China Strengths Concentration of the industry Large modern factories Low production costs Land availability Opportunities Huge potential domestic market Move to finished goods Weaknesses Organisation of agriculture Concerns with quality Freight distance for export Threats Overall economic expansion Price pressures from alternative crops
12 South America Strengths Concentration of the industry Large modern factories Low production costs Land availability Opportunities Huge potential domestic market Move to finished goods Weaknesses Organisation of the agriculture Concerns with quality Threats Brazil -
13 Globally Strengths Tomatoes acceptable in every culture Industry organisation & exchange of information Opportunities Recognised health benefits Increasing popularity of western diets Weaknesses Dependency on a few large buyers Threats Consumer concerns: pesticides, GMOs, food miles, health issues Climate change
14 Conclusion New production regions? Global consumption Developing markets Generic promotion Redistribution of production in the EU Within the EU Outsource to other regions? Global warming
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