MARKET ANALYSIS REPORT - B.C. Homepage - … coffee shops, ice-cream parlours and food processors. Taiwan imported 107 tonnes of frozen raspberries in 2009, with nearly two-thirds

MARKET ANALYSIS REPORT

“A GLOBAL EXPORT MARKET OVERVIEW FOR BRITISH COLUMBIA’S RASPBERRY INDUSTRY”

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TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................................... 3

PURPOSE ........................................................................................................................................... 5

INTRODUCTION ................................................................................................................................. 5

GLOBAL RASPBERRY PRODUCTION .................................................................................................... 5

GLOBAL TRENDS ................................................................................................................................ 6

GLOBAL FROZEN RASPBERRY EXPORTS................................................................................................ 7

GLOBAL FROZEN RASPBERRY IMPORTS ............................................................................................. 8

GLOBAL COMPETITION IN THE FROZEN RASPBERRY MARKET ............................................................ 9 Serbia ........................................................................................................................................... 9

Poland ......................................................................................................................................... 10 Chile ............................................................................................................................................. 11 British Columbia .......................................................................................................................... 11

GROWTH POTENTIAL OF FROZEN RASPBERRY MARKETS .................................................................. 12 European Union ............................................................................................. ............................. 12 Australia ...................................................................................................................................... 13 Asia .............................................................................................................................................. 15

NEXT STEPS – MARKET DEVELOPMENT ACTIONS .............................................................................. 21 APPENDICIES

A – British Columbia & Canada: Domestic Raspberry Exports .................................................... 22

B – Market Profiles ...................................................................................................................... 26

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EXECUTIVE SUMMARY

British Columbia (B.C.) produced 80% of the raspberries grown in Canada and accounted for 97% of the $11 million worth of raspberries exported out of the country in 2010. More than 90% of the raspberries exported from B.C. are frozen, and nearly all of these are destined for the U.S. market. As a result of increasing competition in the U.S., the Raspberry Industry Development Council (RIDC) has indicated the need to look at other export markets to identify future growth opportunities. The purpose of this study is to help the RIDC identify these high-growth markets and provide them with the necessary background information to form the foundation of an export marketing strategy. Global raspberry production is estimated at 400,000 – 500,000 tonnes annually, with the majority being produced by Russia, the U.S., Serbia, Poland, and Chile. It is estimated that Russia produces about 100,000 tonnes, while the U.S., Serbia, Poland, and Chile all produce between 60,000 – 75,000 tonnes annually. With a five-year production average of nearly 9,700 tonnes, B.C. accounts for about 1.9-2.4% of global raspberry production. B.C. production is so small that it is a price taker on the global market. Serbia, Poland and Chile are considered B.C.’s leading competitors in the global raspberry market. Serbia is a strong competitor in the European market, where over 98% of the country’s frozen raspberry exports were destined in 2010. Of the roughly 61,000 tonnes of frozen raspberries exported out of Serbia in 2010, about 30% were sent to Germany, 25% to France, 10% to Belgium, 10% to Austria, and 3% to the United Kingdom. Poland is Serbia’s biggest competitor in the European market, where about 90-95% of Poland’s frozen raspberry exports are destined each year. Of the roughly 40,000 tonnes of frozen raspberries exported out of Poland in 2009, 38% went to Germany, 11% to Belgium, 7.5% to the Netherlands, 6.5% to France, 6% to Sweden, and 5% to the U.K. Chile is a strong competitor in the U.S. market – accounting for 72.4% of the country’s frozen raspberry imports in 2010 – but is now expanding its focus to markets in Europe, Asia and Australia. Of the 46,151 tonnes of frozen raspberries exported out of Chile in 2010, 45% were destined for markets in Europe, 33% to the U.S., 10% to Canada, 6.1% to Australia, 1.5% to New Zealand and 1.4% to Asia. Chile’s world-class reputation for fruit and wine exports, combined with relatively lower costs of production, makes it B.C.’s strongest competitor in the frozen raspberry market. Although the U.S., Germany, the U.K., France and Japan are the world’s leading raspberry consumers, these markets are intensely competitive and offer lower growth opportunities relative to some newer raspberry markets. This study has found that the highest-growth prospects for B.C.’s frozen raspberry exports exist in Australia, South Korea, Taiwan, China, Hong Kong and India. Australia benefits from a strong, growing economy with a GDP per capita that is nearly 40% higher than Germany, the U.K. and France. As well, the average Australian consumer spent nearly 45% more on fruits than consumers in Europe’s main raspberry markets in 2010. Australia imported 638,752 litres of frozen pulped raspberries and 6,608 tonnes of frozen non-pulped raspberries in 2010, an increase of 69.6% and 83.6% respectively since 2005. B.C. exported 8.4 tonnes of frozen raspberries to Australia in 2009. South Korea’s increased focus on health and wellness combined with a decreasing availability of farmland is driving demand for imported fruits. As a result, frozen raspberry imports climbed over 500% over the past five

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years, reaching 830 tonnes in 2010. B.C. currently exports between 20 and 80 tonnes of frozen raspberries to South Korea every year. Taiwan’s frozen raspberry imports climbed 155% between 2004 and 2009 as a result of increased demand from western-style coffee shops, ice-cream parlours and food processors. Taiwan imported 107 tonnes of frozen raspberries in 2009, with nearly two-thirds coming from China. With the exception of 1 tonne of frozen raspberries exported to Taiwan in 2008, B.C. has had no impact on Taiwan’s frozen raspberry market. The sheer size of China’s consumer market makes it an attractive destination for B.C. agri-food exports. Although China has invested heavily in raspberry production over the past decade and production levels are reported to reach 13,000 tonnes, the country still imported more than 2,300 tonnes of frozen raspberries in 2010. Due to poor management, quality control and harvesting processes on raspberry farms in China, it can be expected that demand for higher-quality raspberries coming from outside the country will increase as China’s capacity to process raspberries continues to grow. Hong Kong benefits from a strong economy where the average disposable income is more than ten times as high as the rest of China. Hong Kong’s large expatriate population and strategic location as a gateway to the mainland China market makes it a lucrative destination for B.C.’s raspberry exporters. Hong Kong’s frozen raspberry imports have climbed nearly 800% between 2005 and 2010, from 10 to 89 tonnes. B.C. doesn’t currently export frozen raspberries to Hong Kong, but the market offers opportunities to serve the growing demand for frozen raspberries from Western-style health-food and bakery outlets. With the second largest population in the world and one of the fastest growing economies, India offers many opportunities for B.C.’s agri-food exporters. Although red raspberries have only just begun to make their impact in India, frozen raspberry imports climbed from 9 to 23 tonnes between 2004 and 2009. As disposable incomes rise and consumers have the capability to purchase healthier foods, demand for raspberries and raspberry products can be expected to grow. In order to successfully compete in the high growth markets identified in this study – Australia, South Korea, Taiwan, China, Hong Kong, and India – the B.C. raspberry industry will need to conduct more in-depth, country-specific market research to provide insight into how the frozen raspberry market is structured in each of these markets, who the key players are and which value-added product categories have the strongest prospects for growth using raspberries as an ingredient. B.C.’s raspberry industry may also benefit from more product/sector specific market research on opportunities that exist for exporting processed raspberry products such as jams, dried fruits, juices, wine and yoghurts.

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PURPOSE Building upon the market-information needs identified by the Raspberry Industry Development Council (RIDC), the B.C. Ministry of Agriculture, with support from Agriculture and Agri-food Canada, conducted this study to help British Columbia’s raspberry growers remain competitive in the global frozen raspberry market. The purpose of this study is to help the RIDC identify which markets provide the strongest opportunity for growth for B.C.’s frozen raspberry exports, and to provide them with the necessary background information to form the foundation of an export marketing strategy.

INTRODUCTION B.C. currently sends more than 95% of its raspberry exports to the United States, and yet only represents 0.3% of U.S. fresh raspberry imports and 21% of U.S. frozen raspberry imports.1 Although demand for fresh raspberries is still increasing in the U.S. market, the frozen raspberry market is highly competitive and the RIDC has indicated the need to look at other export markets to identify future opportunities.2 This report begins by providing an overview of the world’s leading raspberry producers and the top importing and exporting countries of frozen raspberries. The report then reviews the relative strengths and weaknesses of B.C.’s top competitors in the global market: Serbia, Poland and Chile. The report concludes with an analysis of the markets where the strongest growth opportunities exist for B.C.’s frozen raspberry exports, followed by suggestions for capitalizing on these opportunities. This study was funded through the Growing Forward Trade and Market Development for the Canadian Agri-food and Agri-based Products Sector Program.3 This program aims to facilitate industry success in global and domestic markets. Through industry-led marketing strategies, a Canada branding strategy, market intelligence and services for exporters, and actions to maintain and improve market access, the program helps equip the sector to seize market opportunities and address emerging challenges.

GLOBAL RASPBERRY PRODUCTION Despite producing about 80% of the raspberries in Canada, B.C. is still a relatively small player in the global raspberry market. In 2010, B.C. produced 7,632 tonnes of raspberries, at a farm gate value of $12,936,000. Canada produced 9,566 tonnes of raspberries, at a farm gate value of $24,467,000.4 Although B.C. grows about 10 different varieties of raspberries, the majority are of the Meeker variety. Most B.C. raspberries are harvested from late June to mid-August. The global production of raspberries is estimated at 400,000–500,000 tonnes annually, with the majority being produced by Russia, the U.S., Serbia, Poland and Chile.5 6 7 B.C. accounts for about 1.9 – 2.4%* of global production. B.C. production is so small that it is a price taker on the global market. B.C. could stop producing raspberries and the price on the global market would be unaffected.

* Based on B.C.’s 5-year production average of 9,690 t and world production estimates of 400,00 – 500,000 t

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The lack of reliable data available on annual production levels in Russia affects the ability to accurately calculate world production, but it is estimated that the country produces more than 100,000 tonnes annually. It is assumed that most of Russia’s raspberries are consumed internally so the country’s influence on the global market is very limited.8 9 The U.S. produced nearly 73,000 tonnes of raspberries in 2010, about 40% of which was destined for processing. Of those raspberries that are processed about 30% are Individually Quick Frozen (IQF), 30% are processed into juices, 20% are pureed, and the remaining 20% are block frozen.10 Most U.S. processing raspberries are of the Meeker variety and are harvested from mid-June to late August.11 Serbia produced about 70,000 tonnes of raspberries in 2010.12 Only 10-15% of Serbia’s raspberries are consumed domestically, while the other 85-90% is further processed or frozen and then exported. Between 90-95% of Serbian raspberries are of the Williamette variety and are harvested from late June to July.13 Poland produced about 65,000 tonnes of raspberries in 2010.14 The main varieties grown in Poland include Polka and Polana. Polka is an early primocane cultivar which is harvested between late July and October, while Polana is a late variety which is generally harvested between mid-August and September.15 16 Chile produced about 60,000 tonnes of raspberries in 2010. The majority of Chile’s 19,000+ growers operate small-scale farms with an average 0.8 hectares of productive land.17 Due to the small farm sizes, about 95% of the raspberries in Chile are harvested manually. Chile has traditionally concentrated on fresh berries, as its harvest occurs during the winter season in the U.S., but now the majority of exported raspberries are frozen.18 2007 estimates indicate that less than 5% of the Chilean crop is consumed domestically, while the rest is destined for export markets.19 About 85% of Chilean raspberries are of the Heritage variety and are harvested from November to May.20 Other top raspberry producing countries include the United Kingdom, Mexico, Spain, Ukraine, France and Germany. Generally, these countries are either serving large domestic markets or are exporting the majority of their raspberries fresh to the U.S. or markets in Europe.21 22

GLOBAL TRENDS Over the past decade there has been a steady increase in demand for fruit and fruit-based products as consumers seek out healthier options in their diets. Raspberries have benefited from this trend, but are also seeing greater competition from other berries – such as blueberries – that have received tremendous promotion as superfruit because of their disease-fighting nutritional benefits. It can be expected that global demand for raspberries will continue to grow, but most growth will likely come from processors looking for fruits to use in value-added products alongside more expensive superfruits.23 Beverage concepts are expected to dominate the future for healthy nutrition and functional foods, as consumers increasingly look for convenient, single-serving products that taste good and are easy to consume.24 Due to the short shelf life of raspberries, most traded raspberries are sold in frozen blocks and are treated as a commodity product. As a result, prices for frozen raspberries can fluctuate a lot from year-to-year as they are influenced greatly by exchange rates, import duties, weather conditions, and supply and demand. With the large increases in production from low-cost producers in Eastern Europe and South America, it can be expected

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that high competition in current markets for frozen raspberries will continue to be a challenge for B.C. exporters.25 Outside of the traditional fresh and frozen raspberry markets, raspberries are also being used in other products such as teas, artificial sweeteners and fruit wines. Tea producers have developed several herbal tea varieties that incorporate raspberry leaves and are marketed for their health benefits; alternative sweetener producers are extracting sugar alcohol from raspberries to develop the sugar substitute Xylitol; and wineries are creating raspberry fruit wines and using raspberry juice to create raspberry-flavoured grape wines.26

GLOBAL FROZEN RASPBERRY EXPORTS B.C. exported over $11 million worth of raspberries in 2010, accounting for 97% of the value of Canada’s total raspberry exports (See Appendix A). Of the 5,631 tonnes exported from B.C. in 2010, 91.1% of those exports were frozen and only 8.9% were fresh.27 B.C.’s primary export market is the U.S., which received over 96% of the province’s raspberry exports in 2010 (5,416 t) – almost all of which were frozen. Secondary markets for B.C.’s frozen raspberries include Japan and Korea, which received 66.9 and 38.6 tonnes respectively in 2010.28 Chart 1: B.C. Domestic Raspberry Exports – All Raspberries

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Most exporting countries do not differentiate between raspberries, blackberries, mulberries and loganberries when collecting customs trade data. However, considering raspberries account for the majority of the export trade in these berries, the aggregated statistics in Table 1 provide a good representation of the world’s top exporters of frozen raspberries. Table 1: Global Frozen Raspberry* Exports COUNTRY Unit 2007 2008 2009 2010 07-09 Growth 09-10 Growth

Poland t 77,419 825,242 74,585 -- -3.7% --

Serbia t 78,143 61,601 73,884 -- -5.5% --

Chile t 59,968 59,787 48,551 63,800 -19.0% 31.4%

Netherlands t 13,738 21,502 18,497 -- 34.6% --

Belgium t 21,410 20,224 16,456 -- -23.1% --

China t 13,280 12,418 10,174 12,630 -23.4% 24.1%

Austria t 9,862 6,024 9,252 -- -6.2% --

Germany t 9,586 10,180 7,907 9,121 -17.5% 15.4%

United States t 6,368 5,445 4,721 7,211 -25.9% 52.7%

Canada t 4,919 5,888 3,019 5,719 -38.6% 89.4% Source: Global Trade Atlas (March 2011)

GLOBAL FROZEN RASPBERRY IMPORTS As with exports, most importing countries don’t differentiate between raspberries, blackberries, mulberries and loganberries when collecting customs trade data. Table 2 highlights the top importers of frozen raspberries based on these aggregate statistics. Table 2: Global Frozen Raspberry† Imports COUNTRY Unit 2007 2008 2009 2010 07-09 Growth 09-10 Growth

Germany (Customs)

t 81,406 82,500 77,657 85,798 -4.6% 10.5%

France (Customs)

t 37,540 36,498 33,687 36,656 -10.3% 8.8%

United States t 29,553 29,824 25,421 35,801 -14.0% 40.8%

Belgium t 26,978 23,537 21,726 -- -19.5% --

Netherlands t 21,005 21,052 21,049 -- 0.2% --

United Kingdom HMRC

t 20,115 17,521 15,509 15,021 -22.9% -3.1%

Austria (Customs)

t 17,452 14,204 14,733 -- -15.6% --

Canada t 10,907 8,448 9,345 10,487 -14.3% 12.2%

Poland t 4,405 5,398 6,592 -- 49.6% --

Australia t L

4,864 257,439

4,634 385,576

4,931 456,958

6,608 638,753

1.4% 77.5%

34.0% 39.8%

Source: Global Trade Atlas (March 2011)

* Includes exports of blackberries, mulberries, loganberries and currants.

† Includes imports of blackberries, mulberries, loganberries and currants.

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GLOBAL COMPETITION IN THE FROZEN RASPBERRY MARKET B.C.’s top global competitors in the frozen raspberry market include Serbia, Poland and Chile.

SERBIA Serbia is a strong competitor in the European market for frozen raspberries, where over 98% of the country’s frozen raspberry exports were destined in 2010. Of the roughly 61,000 tonnes of frozen raspberries exported out of Serbia in 2010, about 30% were sent to Germany, 25% to France, 10% to Belgium, 10% to Austria, and 3% to the United Kingdom. Although still a very small share of overall exports – less than 0.5% – frozen raspberry exports to Asia have increased over 400% between 2005 and 2010, rising from 44 to 228 tonnes.29 Chart 2: Serbia’s Top 5 Frozen Raspberry Markets 2005-2010

Due to a lack of processing technologies, Serbia consumes very small quantities in local juice and puree products and instead exports most of its broken and frozen raspberries to other European countries where firms process the raspberries for re-export. Serbian farmers face challenges selling their fresh berries to brokers, processors or cold storage plants due to the lack of official standardization and classification systems, and poor infrastructure.30 As a result, about 95% of Serbia’s crop is exported frozen.31 The Willamette variety that is grown in Serbia is very good for freezing and has excellent processing characteristics, which makes Serbia’s frozen raspberries adequate to meet the requirements of the country’s main buyers in Germany, France, Belgium, Austria, and the U.K.32 About 90% of frozen raspberries that are exported from Serbia are IQF and packed in a standard five-layer carton box, which contains four plastic bags of 2.5kg net weight. The lack of machinery and technology in the country affects the way raspberries can be packaged for export, as most Serbian firms do not produce packaging material of adequate quality for the EU market. If buyers from other countries require raspberries to

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be packed in a specific size or style of packaging for retail purposes, they usually supply the packaging and labels to Serbian processors.33 Serbia is a strong competitor in Europe because of low transportation, labour and land costs which enable exporters to compete strongly on price. However, the lack of machinery, technology and adequate infrastructure in Serbia, combined with its relatively low food-safety and quality-assurance standards, highlight the country’s key challenges to expanding its share of the global raspberry market.

POLAND Poland grows about two thirds of all soft fruits produced in the EU for the processing industry.34 The country is well situated in Europe to export its raspberries to processors in other European countries, where about 90-95% of the countries frozen raspberry exports are destined each year. Of the roughly 40,000 tonnes of frozen raspberries exported out of Poland in 2009, 38% went to Germany, 11% to Belgium, 7.5% to the Netherlands, 6.5% to France, 6% to Sweden, and 5% to the U.K.

Chart 3: Poland’s Top 5 Frozen Raspberry Markets 2004-2009

Poland has a strong tradition of growing raspberries and invests heavily in researching and developing new raspberry cultivars, which has created a strong foundation for the country to grow into one of the world’s top exporters of frozen raspberries. With a large semi-processing industrial basis and low costs of production, Poland is Serbia’s strongest competitor in Europe’s frozen raspberry market.35 However, like Serbia, Poland still faces challenges with quality-assurance and food-safety standards. In 2005, Poland’s frozen raspberries were identified as the source of six different outbreaks of norovirus infection in Denmark, which affected more than 1,000 people.36

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CHILE Chile is a strong competitor in the U.S. market, accounting for 72.4% of the country’s frozen raspberry imports in 2010. Although the U.S. is Chile’s largest market for frozen raspberries, the share of Chile’s frozen raspberry exports destined for the U.S. has dropped about 10% since 2005. During this period, the share of Chile’s frozen raspberry exports destined for Europe, Canada, Australia, New Zealand and Asia has increased. Of the 46,151 tonnes of frozen raspberries exported out of Chile in 2010, 45% were destined for markets in Europe, 33% to the U.S., 10% to Canada, 6.1% to Australia, 1.5% to New Zealand and 1.4% to Asia.37 Chart 4: Chile’s Top 5 Frozen Raspberry Markets 2005-2010

Chile’s fresh raspberry exports declined 90% between 2005 and 2010, from 5,288 to 580 tonnes, while frozen raspberry exports climbed 13.7%, from 40,573 to 46,151 tonnes.38 Unlike Chile’s other berry industries which have a strong focus on serving the winter market for fresh berries in North America, the raspberry industry has turned its efforts towards the export of frozen berries to processors in Europe, Australia and Asia. Chile’s world-class reputation for fresh and processed fruit and wine exports makes it B.C.’s strongest competitor in the frozen raspberry market. Although buyer’s perceptions of food safety and quality assurance are fairly equal between Canada and Chile, the latter has the benefit of lower land and labour costs which enables exporters to be more price competitive.

BRITISH COLUMBIA B.C.’s competitors in the global raspberry market have a clear advantage over B.C. as a result of lower land, input, and labour costs. The lower costs of production enable these competitors to be much more price competitive in the frozen raspberry market, which creates large entry barriers in countries where these competitors are already exporting. However, B.C. benefits from a much stronger perception in the eyes of buyers relative to Serbia and Poland due to Canada’s high food-safety and quality-assurance standards, and has

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a transportation advantage over Chile when shipping frozen raspberries to markets in Asia. In order to capitalize on these advantages, B.C. exporters should leverage Canada’s reputation for safe, high quality fruits in new markets where the competition is not as intense as the current top markets for frozen raspberry exports – the U.S., Germany, the U.K. and France.

GROWTH POTENTIAL OF FROZEN RASPBERRY MARKETS The U.S. and the EU are clearly the top consumers of raspberries, with Japan a distant third.39 However, increased interest from consumers in Australia, China, South Korea, Taiwan, Hong Kong and India are creating new markets that offer great opportunity to B.C. raspberry exporters. Profiles for each of these markets, as well as the top three frozen raspberry markets in the EU, are included in Appendix B.

EUROPEAN UNION Germany is the largest consumer of fresh and frozen raspberries in the EU, followed by the United Kingdom and France.40 As the three largest economies in Europe, these markets are the focus of B.C.’s competitors. Import data shows substantial frozen raspberry imports entering Belgium and the Netherlands from Serbia, Chile and Poland, but these raspberries are generally destined for further processing in these countries before the finished raspberry products are re-exported to Germany, the U.K. and France. The following section provides a brief overview of these top frozen raspberry markets and the challenges that are present for B.C. exporters to enter these key markets. Germany is one of the world’s most prosperous countries, where citizens enjoy a high standard of living and sizeable disposable incomes. With a population of 81.7 million people, Germany is the largest consumer market in Europe and a top destination for raspberry exports. As a result of an aging population, there is a strong trend in Germany towards living healthier lifestyles which is driving demand for fruit and fruit-based products. The average consumer’s annual expenditure on fruit increased by 27.5% between 2005 and 2010.41 Despite being the largest importer of frozen raspberries in the world, the opportunities for B.C.’s frozen raspberry exports in Germany are tempered by intense competition in the market. Serbia and Poland have leveraged their transportation advantage to supply more than 65-70% of the frozen raspberries imported directly into Germany each year. The remaining imports are primarily coming from Chile, Belgium, China and Austria. In 2010, BC exported 17.8 tonnes of frozen raspberries to Germany worth $37,689.42 The United Kingdom is considered the most important fresh berry market in Europe, with consumers expecting them to be available 52 weeks a year. In 2010, the average consumer bought raspberries 6.2 times.43 Although the U.K. economy experienced stronger than average growth in the EU for most of the past decade, the country was hit hard by the recession in 2008 leading consumers to be more cautious about their spending. Despite this, the berry market in the U.K. is still seeing growth as consumers continue to put emphasis on healthy eating. In 2010, frozen raspberries outpaced all other frozen berries sold through retail, with a 17.2% increase in sales to 1,766 tonnes.44 Raspberry production in the U.K. expanded considerably between 2005 and 2009, with the planted area increasing by 22% to nearly 1,800 hectares and the production volume increasing 31% to 16,000 tonnes. About 80% of these raspberries are grown for the fresh market in the U.K., while the majority of the remaining berries are used in the production of juice and puree. Most of the IQF raspberries berries sold in the U.K. are imported

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from Serbia, Poland, and Chile, while the majority of frozen raspberry concentrate and puree is imported from Poland.45 B.C. does not currently export any raspberries to the U.K.46 France is the second largest economy in Europe and one of the most important food markets in the world. The country ranks first in Europe and third worldwide, behind the U.S. and Japan, in overall expenditures on food and related items.47 The government’s health campaigns against obesity are contributing to an increase in fruit consumption that is driving fruit sales and supporting a strong market for frozen raspberry exporters in Serbia, Chile and Poland. France is the second largest importer of frozen raspberries in the EU, with more than half of its approximately 31,000 tonnes of frozen raspberries imported in 2010 coming from Serbia. Frozen raspberry exports from Serbia to France increased 32.8% between 2005 and 2010, rising from 11,495 to 15,261 tonnes. Chile accounted for about 15% of France’s raspberry imports in 2010, while Poland accounted for about 10%. B.C. does not currently export any raspberries to France.48 Germany, the U.K. and France are the 4th, 5th and 6th largest economies in the world respectively, and are the three most important raspberry markets in Europe.49 While these three markets clearly offer great opportunities for raspberry exporters, B.C. faces large entry barriers in all three of these markets because of intense competition from Serbia, Poland and Chile. With a potential free trade agreement between the EU and Canada on the horizon, B.C.’s ability to compete in these three markets may increase and open up new opportunities for B.C. exporters. However, even with the 14.7% tariff on frozen raspberries eliminated, the low costs of production and transportation advantages in nearby Poland and Serbia will still make it very difficult for B.C. exporters to compete on price. As a result, Germany, France and the U.K. can be considered markets with low growth potential for B.C.’s frozen raspberry exports relative to other countries.

AUSTRALIA Relative to the main raspberry markets in Europe, Australia is still a fairly new market for frozen raspberry exporters. However, Australia benefits from a strong, growing economy with a GDP per capita that is nearly 40% higher than Germany, the U.K. and France. As well, the average Australian consumer spent nearly 45% more on fruits than consumers in Europe’s main raspberry markets in 2010.50 Australia produced about 2,000 tonnes of raspberries on 400 hectares in 2010. Due to the array of climatic conditions spread between northern and southern Australia, fresh Australian raspberries are available all year round. Approximately 90% of the raspberries grown in Australia are sold fresh in the domestic retail market, about 5% are sold through on-farm sales, and the remaining 5% are destined for local fruit processors. The primary focus of the majority of growers in Australia is the fresh food market, leaving an unmet demand for frozen raspberries from Australia’s processing industry.51 A 500 gram box of frozen raspberries sells for approximately CAD$6.80 in Australia.52 Australia imported 638,752 litres of frozen pulped raspberries* in 2010, an increase of 69.6% since 2005. Nearly 69% of Australia’s frozen pulped raspberry imports were sourced from the Netherlands in 2010, while another 25% came direct from Poland. It is likely that the majority of those frozen pulped raspberries imported from the Netherlands originated in Poland, Chile or Serbia, but were further processed in the Netherlands before being re-exported to Australia. 53

* Australia’s frozen raspberry import data includes imports of blackberries, mulberries, gooseberries and currants

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Chart 5: Australia – Frozen Pulped Raspberry Imports 2005-2010

Australia imported 6,608 tonnes of frozen non-pulped raspberries in 2010, an increase of 83.6% since 2005. Chile and China were the top suppliers of frozen non-pulped raspberries, representing 51% and 32% of imports respectively in 2010. B.C. didn’t export any frozen raspberries to Australia in 2010, but did export small amounts of frozen raspberries to the market every year between 2004 and 2009. In 2009, B.C. exported 8.4 tonnes of frozen raspberries to Australia worth $35,968.54 Chart 6: Australia – Frozen Non-Pulped Raspberry Imports 2005-2010

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Although B.C.’s top competitors are all increasing their focus on Australia’s frozen raspberry market, the competitive environment is not nearly as intense as it is in Europe’s top markets. With a moderately competitive environment, strong economic growth, increasing consumer expenditures on fruit, and 0% tariffs on frozen raspberry imports, Australia can be considered a market with high growth potential for B.C.’s frozen raspberry exports.

ASIA Asia is home to two of the world’s fastest growing economies – China and India – as well as over 60% of the entire world population.55 With an increasing percentage of the Asian population moving from rural farms to urban areas in search of job opportunities, these markets are increasingly in demand of food products supplied by other countries. B.C.’s raspberry growers are well-positioned to take advantage of emerging opportunities in East Asia due their proximity to the market and the large population of Asian immigrants in B.C. that have business connections in these countries. As well, B.C.’s Asia-Pacific Initiative* is investing heavily in positioning B.C. as a location of choice for importers looking to source products from North America to Asia, which has greatly enhanced B.C.’s profile in these markets. Japan is the largest consumer of raspberries in Asia, followed by South Korea and Taiwan. In addition to these markets, opportunities for B.C.’s frozen raspberries are emerging in China, Hong Kong, and India. Japan B.C. exported $296 million worth of agri-food and seafood products to Japan in 2010, making it the province’s third largest export market behind the United States and China.56 Japan has been the top market in Asia for B.C. exports for several years, as the country lacks the level of food production that is required to feed the 127 million people living in the country and is closer to Canada’s west coast than markets in Europe. As well, Japanese consumers have a much higher disposable income than in neighbouring countries and have traditionally paid a premium for Canada’s food products due to a strong reputation for quality-assurance and food-safety. While this competitive advantage is diminishing in Japan because of large investments in food-safety and quality-assurance programs by Canada’s competitors, the Canada Brand Initiative† is investing heavily in consumer promotion activities in Japan to enhance the visibility of Canadian products and increase demand for Canadian exports. Frozen raspberry‡ imports into Japan have declined by 5.4% in the past five years, as the country has experienced a slowing economy, a reduction in disposable incomes, and strong promotion of other superfruits. Of the 1,953 tonnes of frozen raspberries imported into Japan in 2010, 23.5% were sourced from Chile, 23% from the U.S., 17% from New Zealand, 13% from France, 12% from Serbia, and 4.5% from Poland. Serbia has had the largest growth in market share in Japan between 2005 and 2010, rising from 100 to 235 tonnes. During the same period, B.C.’s frozen raspberry exports to Japan dropped 9.3% from 42.6 to 38.6 tonnes.

* Background information on the Asia-Pacific Initiative can be found at http://www.tted.gov.bc.ca/APTI/Economies/Pages/default.aspx

† Background information on the Canada Brand Initiative can be found at http://www.marquecanadabrand.agr.gc.ca/intro/index-eng.htm

‡ Frozen raspberry import data for Japan and South Korea includes imports of blackberries, mulberries, gooseberries and currants

16

Chart 7: Japan – Frozen Raspberry Imports 2005-2010

Japan’s rapidly aging population and the government’s implementation of compulsory health checks is expected to continue to drive demand for healthy foods such as berries.57 While this could lead to more opportunities for the use of B.C.’s frozen raspberries in value-added processing in Japan, the competition in this market is growing from Serbia, Chile, and New Zealand. B.C. has a competitive disadvantage when competing against Chile in this market because of the Economic Partnership Agreement between Japan and Chile that eliminates the tariff on frozen raspberry imports. B.C. faces a 9.6% tariff on frozen raspberries containing added sugar and 6% on other frozen raspberries exported to Japan. 58 With a highly competitive environment, a slowing economy and a continued decline in frozen raspberry imports, Japan can be considered a market with low to medium growth potential for B.C.’s frozen raspberry exports. South Korea South Korea has been one of B.C.’s top five export markets for agri-food and seafood products for several years, receiving $79 million worth of B.C. exports in 2010. Like Japan, South Korea’s available farmland has steadily declined over the past two decades which has increased the need for food imports from other countries. South Korea’s total agri-food and seafood imports climbed 30% in the past five years, from $16.6 billion in 2006 to $21.7 billion in 2010.59 An increased focus on health and wellness is driving demand for imported fruits in South Korea. As a result, frozen raspberry† imports climbed over 500% over the past five years, from 134 tonnes in 2006 to 830 tonnes in 2010. Of the frozen raspberries imported in 2010, 52.5% were sourced from the U.S., 14% from Canada, 13% from Chile, 9% from France, 8% from China and 3% from Serbia. During the past five years, the U.S. has had the largest increase in market share in the South Korean frozen raspberry market, rising from 0.7% in 2006.

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Chart 8: South Korea – Frozen Raspberry Imports 2005-2010

B.C. currently exports between 20 and 80 tonnes of frozen raspberries to South Korea every year. In 2010, B.C. exported nearly 67 tonnes worth $183,720. Despite the growing competition in the market, Korea can be considered a market with high growth potential for B.C.’s frozen raspberry exports as a result of the rapidly increasing demand for frozen raspberries. Taiwan Taiwan’s importance as an export market for B.C.’s agri-food and seafood products has increased substantially in recent years, with total exports climbing 128% between 2007 and 2010, from $23.8 to $54.4 million. Although the average disposable income in Taiwan is about 50% lower than in Japan and 25% lower than in South Korea, the average Taiwanese consumer spends more than two times as much on fruit each year than Japanese and Korean consumers.60 Taiwan’s frozen raspberry* imports climbed 155% between 2004 and 2009, rising from 42 to 107 tonnes. Of the frozen raspberries imported into Taiwan in 2009, 64% came from China, 24% from France and 4.7% from the Netherlands. With the exception of 1 tonne of frozen raspberries that was exported from B.C. to Taiwan in 2008, the province has not had any impact on Taiwan’s frozen raspberry market.61

* Taiwan’s frozen raspberry import data includes imports of blackberries, mulberries, gooseberries and currants

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Chart 9: Taiwan – Frozen Raspberry Imports 2004-2009

About 95-99% of the frozen raspberries imported into Taiwan are destined for value-added processing. The higher-quality raspberries that come from France are used in cakes and pastries while the lower-quality raspberries from China are used for making jam. For those raspberries destined for the cake and pastry market, taste, flavour and consistency of size are the factors most emphasized by importers. However, due to the high price sensitivity of Taiwanese processors, importers are also very concerned about price so that they can ensure an acceptable mark up.62 The majority of the frozen raspberries imported into Taiwan go through professional importers who then sell to major food processors or smaller fruit dealers. The fruit dealers typically service smaller food service establishments that have product needs that extend beyond frozen berries. These smaller establishments, typically local bakeries, use the berries for making cakes and pastries that are then sold in the shop front. Frozen raspberries are not sold through any retail outlets in Taiwan.63 The demand for raspberries in Taiwan is expected to increase as western-style coffee shops and ice cream parlours continue to spread throughout the country. As a new market with low competition and an increasing demand for frozen raspberries, Taiwan is considered a market with strong growth potential for B.C.’s frozen raspberry exports. China China presents incredible opportunities for B.C. agri-food exporters due to the massive size of the consumer market, its strong cultural and economic ties to the province, and the country’s inability to feed its 1.3 billion people through its domestic food production. In 2010, China passed Japan to become B.C.’s second largest agri-food and seafood export market for the first time. B.C.’s total agri-food and seafood exports to China grew over 300% between 2005 and 2010, rising from $81.5 million to $328 million.64

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In 2000, China introduced raspberries from Europe and North America and began experimental plantings in many areas of the country. By 2010, the raspberry plantings in China were estimated to cover 4,300 hectares and produce 13,000 tonnes of raspberries. Reports from China indicate that about 90% of the raspberries produced in China are for the frozen market, while the remainder go to the production of raspberry juice concentrate. The proportion of raspberries sold into the fresh market in China is negligible.65 Only 3.8% of households have a freezer in China as the infrastructure for frozen products is still in development and Chinese consumers don’t have the space in their house to store extra food.66 As a result, about 95% of the frozen raspberries in China are exported.67 China’s export data for frozen raspberries, mulberries, loganberries and currants indicates that the country exported 12,630 tonnes in 2010, with 20% going to Russia, 18% to the Netherlands, 12% to Australia and Japan, and 10% to Germany, and smaller amounts to Turkey, the U.S., New Zealand and Canada. It is unknown how much of these exports relate to raspberries specifically, but reports from China have indicated that the majority of China’s frozen raspberries are exported to European markets.68 China’s import data indicates that the country imported 2,312 tonnes of frozen raspberries* in 2010, with nearly 70% of those coming from Canada, 9% from New Zealand, 8% from the U.S., 5.5% from Serbia and 5% from Chile. However, there seems to be a large discrepancy between Canada’s export data and the import data that China reports. B.C. is the only province in Canada that has exported frozen raspberries to China, with 19 tonnes going to the market in 2008 and 21 tonnes in 2010. Taking this into consideration, B.C. only represents between 2-3% of China’s raspberry imports.69 Although China is increasing its raspberry production and will likely be able to meet some of the future demand from Chinese processors, reports from within the country indicate that major challenges exist with the management, quality control and harvesting processes on raspberry farms. These challenges are restricting China’s ability to grow the high-quality berries that are required by cake and pastry processors in neighbouring countries, and have opened up opportunities for B.C.’s raspberry exporters within China. As China’s capacity to process frozen raspberries continues to grow, it is expected that the demand for higher-quality raspberries coming from outside the country will likely increase. With the largest population in the world, one of the fastest growing economies, and an expected increase in demand for berry products to serve China’s ageing population, China can be considered a market with high growth potential for B.C.’s raspberry exports. Hong Kong Hong Kong is a Special Administrative Region of China that is known for its open market economy. All products imported into Hong Kong are tariff free, with the exception of alcohol, tobacco, gasoline and methyl alcohol.70 Hong Kong is a transportation hub where products are imported from countries around the world and re-exported to markets in Asia, Europe and North America. This makes Hong Kong an ideal market for B.C. exporters who are looking to access multiple Asian markets but lack the resources to deal with importers in each country. Many of the products that eventually make it to Japan, South Korea, Taiwan and China are first brought into Hong Kong where they are further processed and repackaged for these markets. Hong Kong benefits from a strong economy where the average disposable income is more than ten times as high as the rest of China. Hong Kong has a large expatriate population that purchase Western-style foods and are looking for familiar foods from North America and Europe. As a result, Western-style food service outlets that utilize frozen berries – such as Jugo Juice – have established themselves in the market, and a large portion

* China’s frozen raspberry import data includes imports of blackberries, mulberries, gooseberries and currants

20

of Hong Kong’s food service and retail outlets are tailoring their products to meet this consumer demand. A 400 gram box of Sara Lee frozen raspberries sells for approximately CAD$5.40 in Hong Kong.71 Hong Kong’s frozen raspberry imports have climbed nearly 800% between 2005 and 2010, from 10 to 89 tonnes. In 2010, 43% of Hong Kong’s frozen raspberry exports were sourced from Belgium, 29% from the U.S., 14% from the Netherlands, 6% from China and 6% from Chile.72 Chart 9: Hong Kong – Frozen Raspberry Imports 2005-2010

B.C. doesn’t currently export frozen raspberries to Hong Kong, but the market offers opportunities to serve the growing demand for frozen raspberries from Western-style health food and bakery outlets. As a result of this growing demand, and the region’s strategic location as a gateway to the mainland China market, Hong Kong can be considered a market with high growth potential for B.C.’s frozen raspberry exports. India India has the second largest population in the world and one of the fastest growing economies, making it a lucrative market for B.C. agri-food exporters. Currently, B.C.’s agri-food and seafood exports to India are equivalent to about 2% of the exports destined for China or Japan each year. However, in the past five years B.C.’s agri-food and seafood exports to India have climbed nearly 300%, from $1.3 million in 2006 to $4.7 million in 2010. As B.C. shifts its focus towards emerging markets in Asia, it can be expected that the share of B.C.’s exports destined for India will increase. Wild raspberries grow abundantly in Northern India and the Himalayas, and are generally available in fresh food markets from December through June. The most common raspberry found in India is the Mysore raspberry, which are a purple-black colour when ripe.73 Red raspberries have only just begun to make their impact in India, with 23 tonnes of frozen raspberries* imported in 2009 – up from 9 tonnes in 2004. Of these frozen

* India’s frozen raspberry import data includes imports of blackberries, mulberries, gooseberries and currants

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raspberry imports, 44% came from Greece, 35% from China, 13% from the U.S., and 13% from Chile. B.C. does not currently export any raspberries to India.74 As only 7.3% of Indian households have a freezer and 15.3% have a refrigerator, opportunities for selling frozen foods into the retail market are limited to India’s most affluent cities – New Delhi, Bangalore, Greater Mumbai, Chennai, Hyderabad and Kolkata. However, as disposable incomes in India continue to rise and consumers have the capability to purchase healthier foods, demand for value-added raspberry products is expected to increase. As a result of the low competition in this emerging market and an increasing demand for frozen raspberries, India can also be considered a market with high growth potential for B.C.’s frozen raspberry exports.75

NEXT STEPS – MARKET DEVELOPMENT ACTIONS The RIDC indicated that B.C.’s raspberry industry is not currently in a position to expand export capacity or realign its efforts away from the U.S. market due to stable production levels and a lack of funding for marketing and promotion. Considering this situation, this study was intended to help B.C.’s raspberry industry understand where the high growth markets are located so that an export strategy could be developed to position the industry to take advantage of these opportunities over the next few years. In order to successfully compete in the high growth markets identified in this study – Australia, South Korea, Taiwan, China, Hong Kong, and India – the B.C. raspberry industry will need to conduct more in-depth country-specific market research to provide insight into how the frozen raspberry market is structured in each of these markets, who the key players are and which value-added product categories have the strongest prospects for growth using raspberries as an ingredient. B.C.’s raspberry industry may also benefit from more product/sector specific market research on opportunities that exist for exporting processed raspberry products such as jams, dried fruits, juices, wine and yoghurts. Once a marketing strategy can be developed for these markets, the raspberry industry would then benefit from attending some of the flagship food tradeshows in these markets and/or conducting trade missions to meet with importers and food processors. When B.C.’s raspberry exporters have reached this stage, Trade Commissioners from the Department of Foreign Affairs and International Trade can assist with connecting members of B.C.’s raspberry industry with the appropriate contacts in each of these markets. More information on how the government can assist B.C.’s raspberry industry in taking advantage of these emerging opportunities in the global market can be found on AAFC’s Agri-food Trade Service Website (http://www.ats.agr.gc.ca/intro/index-eng.htm).

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APPENDIX A: BRITISH COLUMBIA & CANADA – DOMESTIC RASPBERRY EXPORTS*

TABLE A: CANADIAN DOMESTIC EXPORTS BY PROVINCE – ALL RASPBERRIES Province

Unit 2005 2006 2007 2008 2009 2010

ALL PROVINCES $ $18,604,739 $11,720,836 $12,256,844 $26,593,848 $13,306,019 $11,454,365

British Columbia $ $18,450,937 $11,535,772 $12,150,121 $24,560,146 $12,782,170 $11,105,484

Quebec $ $31,536 $1,922 $1,541 $1,831,458 $456,027 $262,889

Ontario $ $30,074 $118,695 $55,344 $44,503 $3,311 $64,071

Nova Scotia $ $11,603 $0 $0 $42,456 $48,809 $21,720

Newfoundland Labrador $ $0 $0 $0 $0 $201 $201

Alberta $ $80,589 $64,447 $49,838 $40,731 $15,501 $0

New Brunswick $ $0 $0 $0 $74,554 $0 $0

ALL PROVINCES Kg 7,785,744 6,412,207 6,674,372 7,112,044 3,842,960 5,765,166

British Columbia Kg 7,644,764 6,300,959 6,566,136 6,472,901 3,693,682 5,630,876

Quebec Kg 18,984 1,101 1,119 543,387 122,282 104,392

Ontario Kg 14,722 26,487 33,741 27,042 552 24,153

Nova Scotia Kg 1,089 0 0 4,292 4,569 5,693

Newfoundland Labrador Kg 0 0 0 0 45 52

Alberta Kg 106,185 83,660 73,376 46,052 21,830 0

New Brunswick Kg 0 0 0 18,370 0 0

TABLE B: B.C. DOMESTIC EXPORTS – ALL RASPBERRIES

HS # Description Unit 2005 2006 2007 2008 2009 2010

-- TOTAL EXPORTS

$ $18,450,937 $11,535,772 $12,150,121 $24,560,146 $12,782,170 $11,105,484

Kg 7,644,764 6,300,959 6,566,136 6,472,901 3,693,682 5,630,876

$/Kg $2.41 $1.83 $1.85 $3.79 $3.46 $1.97

08102010 Raspberries, Fresh

$ $7,685,312 $3,047,581 $4,437,586 $8,150,717 $3,214,205 $818,098

Kg 3,095,383 1,636,691 2,317,082 1,840,237 1,065,113 503,608

$/Kg $2.48 $1.86 $1.92 $4.43 $3.02 $1.62

08112000 Raspberries, Frozen $ $10,765,625 $8,488,191 $7,712,535 $16,409,429 $9,567,965 $10,287,386

Kg 4,549,381 4,664,268 4,249,054 4,632,664 2,628,569 5,127,268

$/Kg $2.37 $1.82 $1.82 $3.54 $3.64 $2.01

* Canadian exports are reported on FOB basis, which refers to the price of merchandise on the border or at a national port.

23

TABLE C: B.C. DOMESTIC EXPORTS – RASPBERRIES, FRESH (HS: 08102010) Partner Country Unit 2005 2006 2007 2008 2009 2010

WORLD $ $7,685,312 $3,047,581 $4,437,586 $8,150,717 $3,214,205 $818,098

United States $ $7,685,312 $3,047,581 $4,437,586 $8,150,659 $3,214,205 $767,225

South Korea $ $0 $0 $0 $0 $0 $50,873

Hong Kong $ $0 $0 $0 $58 $0 $0

WORLD Kg 3,095,383 1,636,691 2,317,082 1,840,237 1,065,113 503,608

United States Kg 3,095,383 1,636,691 2,317,082 1,840,204 1,065,113 484,557

South Korea Kg 0 0 0 0 0 19,051

Hong Kong Kg 0 0 0 33 0 0

WORLD $/Kg $2.48 $1.86 $1.92 $4.43 $3.02 $1.62

United States $/Kg $2.48 $1.86 $1.92 $4.43 $3.02 $1.58

South Korea $/Kg -- -- -- -- -- $2.67

Hong Kong $/Kg -- -- -- $1.76 -- --

0

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2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

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CHART A: B.C. DOMESTIC EXPORTSFRESH RASPBERRIES


United States93.8%

South Korea6.2%

CHART B: B.C. DOMESTIC EXPORTS - 2009 MARKET SHARE ($)FRESH RASPBERRIES

24

TABLE D: B.C. DOMESTIC EXPORTS – RASPBERRIES, FROZEN (HS: 08112000)

Partner Country Unit 2005 2006 2007 2008 2009 2010

WORLD $ $10,765,625 $8,488,191 $7,712,535 $16,409,429 $9,567,965 $10,287,386

United States $ $10,543,992 $8,203,313 $7,045,302 $15,410,397 $9,307,028 $9,730,705

South Korea $ $86,431 $87,991 $114,121 $44,100 $0 $183,720

Japan $ $124,478 $39,084 $344,338 $783,934 $105,899 $132,823

Chile $ $0 $0 $0 $0 $0 $124,033

China $ $0 $0 $2 $61,100 $0 $69,655

Germany $ $0 $0 $0 $0 $0 $37,689

New Zealand $ $7,900 $58,040 $69,682 $0 $81,757 $8,761

Indonesia $ $0 $0 $722 $0 $37,313 $0

Australia $ $2,824 $47,509 $70,453 $106,518 $35,968 $0

Taiwan $ $0 $0 $0 $3,380 $0 $0

Turkey $ $0 $0 $57,178 $0 $0 $0

Netherlands $ $0 $52,254 $10,737 $0 $0 $0

0

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4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2005 2006 2007 2008 2009 2010

CHART C: B.C. DOMESTIC EXPORTSFROZEN RASPBERRIES


United States94.6%

South Korea1.8%

Japan1.3%

Chile1.2%

China0.7%

Germany0.4%

New Zealand0.1%

CHART D: B.C. DOMESTIC EXPORTS - 2010 MARKET SHARE ($)FROZEN RASPBERRIES

25

TABLE E: B.C. DOMESTIC EXPORTS – RASPBERRIES, FROZEN (HS: 08112000) Partner Country Unit 2005 2006 2007 2008 2009 2010

WORLD Kg 4,549,381 4,664,268 4,249,054 4,632,664 2,628,569 5,127,268

United States Kg 4,447,763 4,528,529 3,877,590 4,403,047 2,553,984 4,931,803

South Korea Kg 52,500 47,690 80,103 19,051 0 66,928

Japan Kg 42,567 22,736 170,441 169,468 35,538 38,628

Chile Kg 0 0 0 0 0 47,900

China Kg 0 0 2 19,051 0 21,133

Germany Kg 0 0 0 0 0 17,883

New Zealand Kg 5,357 27,135 41,587 0 21,947 2,993

Indonesia Kg 0 0 525 0 8,690 0

Australia Kg 1,194 17,195 45,014 21,007 8,410 0

Taiwan Kg 0 0 0 1,040 0 0

Turkey Kg 0 0 25,582 0 0 0

Netherlands Kg 0 20,983 8,210 0 0 0

TABLE F: B.C. DOMESTIC EXPORTS – RASPBERRIES, FROZEN (HS: 08112000) Partner Country Unit 2005 2006 2007 2008 2009 2010

WORLD $/Kg $2.37 $1.82 $1.82 $3.54 $3.64 $2.01

United States $/Kg $2.37 $1.81 $1.82 $3.50 $3.64 $1.97

South Korea $/Kg $1.65 $1.85 $1.42 $2.31 -- $2.75

Japan $/Kg $2.92 $1.72 $2.02 $4.63 $2.98 $3.44

Chile $/Kg -- -- -- -- -- $2.59

China $/Kg -- -- $1.00 $3.21 -- $3.30

Germany $/Kg -- -- -- -- -- $2.11

New Zealand $/Kg $1.47 $2.14 $1.68 -- $3.73 $2.93

Indonesia $/Kg -- -- $1.38 -- $4.29 --

Australia $/Kg $2.37 $2.76 $1.57 $5.07 $4.28 --

Taiwan $/Kg -- -- -- $3.25 -- --

Turkey $/Kg -- -- $2.24 -- -- --

Netherlands $/Kg -- $2.49 $1.31 -- -- --

26

APPENDIX B: MARKET PROFILES

TABLE G: EUROPE & AUSTRALIA

GERMANY FRANCE UK AUSTRALIA

2006 FROZEN RASPBERRY* IMPORTS 79,295 t 32,881 t 19,013 t 401,142 L (Pulped)/

3,910 t (Other)


4,864 t (Other)


4,634 t (Other)


4,931 t (Other)


6,608 t (Other)

5-YEAR IMPORT GROWTH 1.99% 2.75% -5.72% 12.33% / 14.02%

2010 POPULATION (millions) 81.7 62.8 62.0 22.1

2005-2010 POPULATION GROWTH -0.9% 3.2% 3.2% 8.4%

2010 GDP PER CAPITA $41,079 $41,231 $36,573 $56,962

2005-2010 GDP PER CAPITA GROWTH 14.1% 9.7% 13.4% 30.4%

2010 AVG DISPOSABLE INCOME $26,228 $28,035 $22,620 $33,902

2005-2010 AVG DISPOSABLE INCOME GROWTH 8.0% 14.3% 11.3% 29.5%

2010 CONSUMER EXPENDITURE ON FOOD/CAPITA $2,122 $2,922 $1,747 $2,982

2005-2010 GROWTH – EXP ON FOOD/CAPITA 9.4% 9.5% 15.5% 28.8%

2010 CONSUMER EXPENDITURE ON FRUIT/CAPITA $201 $217 $140 $330

2005-2010 GROWTH – EXP ON FRUIT/CAPITA 27.5% 6.8% -0.6% 29.1%

% OF HOUSEHOLDS WITH A FREEZER IN 2010 72.5% 56.4% 97.2% 36.9%

% OF HOUSEHOLDS WITH A FRIDGE IN 2010 99.1% 98.9% 99.3% 99.9%

TARIFF RATE FOR FROZEN RASPBERRIES 14.7% 14.7% 14.7% 0%

ACCEPTANCE OF WESTERN FOODS Very High Very High Very High Very High

MARKET PRESENCE OF CDN PRODUCT Frozen (2010) None None Frozen (2009)

COMPETITION LEVEL IN FROZEN RASP. MARKET Very High Very High Very High Medium

MARKET GROWTH POTENTIAL FOR BC LOW LOW LOW HIGH

Source: Global Trade Atlas and Euromonitor International (March 2011) Note: All figures are in $US at fixed 2010 exchange rates *Import data for frozen raspberries also includes all imports of blackberries, mulberries, gooseberries and currants

27

TABLE H: ASIA

JAPAN TAIWAN CHINA HONG KONG SOUTH KOREA INDIA

2006 FROZEN RASPBERRY* IMPORTS 2,437 t 113 t 3,295 t 29 t 134 t 12 t




2010 FROZEN RASPBERRY* IMPORTS 1,953 t n/a 2,312 t 89 t 830 t n/a

5-YEAR IMPORT GROWTH -5.38% -1.80%** -8.48% 32.36% 57.76% 24.22%**

2010 POPULATION (millions) 127.4 23.1 1,334.4 7.1 48.9 1,184.8

2005-2010 POPULATION GROWTH -0.3% 1.8% 2.7% 4.7% 1.5% 7.4%

2010 GDP PER CAPITA $43,012 $18,604 $4,366 $31,761 $20,432 $1,369

2005-2010 GDP PER CAPITA GROWTH -3.9% 13.8% 105.3% 21.6% 31.4% 86.3%

2010 AVG DISPOSABLE INCOME $27,350 $9,635 $2,378 $25,512 $12,955 $1,130

2005-2010 AVG DISPOSABLE INCOME GROWTH -1.8% 7.3% 89.2% 24.7% 33.2% 88.7%

2010 CONSUMER EXPENDITURE ON FOOD/CAPITA $3,456 $2,344 $329 $2,238 $1,501 $214

2005-2010 GROWTH – EXP ON FOOD/CAPITA 1.1% 9.8% 65.2% 26.2% $27.1% 50.7%

2010 CONSUMER EXPENDITURE ON FRUIT/CAPITA $157 $415 $34 $189 $198 $22

2005-2010 GROWTH – EXP ON FRUIT/CAPITA -3.5% 9.3% 65.0% 31.2% 34.4% 26.4%

% OF HOUSEHOLDS WITH A FREEZER IN 2010 35.0% 27.7% 3.8% 34.2% 29.8% 7.3%

% OF HOUSEHOLDS WITH A FRIDGE IN 2010 98.1% 99.7% 49.5% 98.1% 99.5% 15.3%

TARIFF RATE FOR FROZEN RASPBERRIES 6 – 9.6% 20% 30% 0% 30% 30%

ACCEPTANCE OF WESTERN FOODS High High Low/Medium Very High High Low/Medium

MARKET PRESENCE OF CDN PRODUCT Frozen (2010) Frozen (2008) Frozen (2010) None Fresh/Frozen (2010) None

COMPETITION LEVEL IN FROZEN RASP. MARKET High Low/Medium Low Low Medium Low

MARKET GROWTH POTENTIAL FOR BC LOW/MEDIUM HIGH HIGH HIGH HIGH HIGH

Source: Global Trade Atlas and Euromonitor International (March 2011) Note: All figures are in $US at fixed 2010 exchange rates *Import data for frozen raspberries also includes all imports of blackberries, mulberries, gooseberries and currants ** 4-Year Growth Rate (2006-2009); 2010 import data not available

ENDNOTES 1 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011

2 “Forces that Move the Worldwide Market for Berries,” on SRSFC website, http://www.smallfruits.org/SRSFC_News/2008/Chile_Num3.ppt, accessed March 2011 3 “Markets and Trade: Growing Forward,” Agriculture and Agri-food Canada Web site, http://www4.agr.gc.ca/AAFC-

AAC/display-afficher.do?id=1238587686348&lang=eng, accessed March 2011 4 Statistics Canada, “Fruit & Vegetable Production: February 2011,” Statistics Canada Web site, http://www.statcan.gc.ca/pub/22-003-x/22-003-x2010002-eng.pdf, accessed March 2011 5 Risto Karajkov, “Raspberries, Serbia’s Red Gold,” Osservatorio BalcanieCaucaso, November 22, 2010, http://www.balcanicaucaso.org/eng/Regions-and-countries/Serbia/Raspberries-Serbia-s-Red-Gold, accessed March 2011 6 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 7 FAOSTAT, “Food and Agricultural Commodities Production,” FAOSTAT Web site,

http://faostat.fao.org/site/339/default.aspx, accessed March 2011 8 Rod Cook, “World Production and Consumption Trends for Blueberry, Raspberry and Strawberry,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/2009/asociacion/NoticiasChilealimentos2009/2009/Cook.pdf, accessed March 2011 9 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 10 Washington Red Raspberries, “USA Raspberry Industry: Trends & Opportunities,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/Servicios/Seminarios/2010/IRO_2010/EE_UU.pdf, accessed March 2011 11 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 12

Slobodan Zunic, “The Raspberry Industry in Serbia: Chile 2010,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/Servicios/Seminarios/2010/IRO_2010/Serbia.pdf, accessed March 2011 13 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 14 International Raspberry Organization, “Poland,” IRO Web site, http://internationalraspberry.org/poland.html, accessed March 2011 15 Berries Unlimited, “Polka,” Berries Unlimited Web site, http://www.berriesunlimited.com/raspberries/polka-primocane-1-gal-size/prod_332.html?review=write, accessed March 2011 16 Jung Seeds, “Raspberries: Polana Everbearing Raspberry,” Jung Seeds Web site, http://www.jungseed.com/dp.asp?pID=30338&c=235&p=Polana+Everbearing+Raspberry, accessed March 2011. 17 “Chile Raspberry Growers Eye New Strategies Ahead of 2010-11 Season,” Fresh Fruit Portal, Decemember 7, 2010, http://www.freshfruitportal.com/2010/12/07/chile-raspberry-growers-eye-new-strategies-ahead-of-2010-11-season/, accessed March 2011 18 International Raspberry Organization, “Chile,” IRO Web site, http://internationalraspberry.org/IRA%20Lublin%20%202008%20-CHILE.pdf, accessed March 2011 19 International Raspberry Organization, “Chile,” IRO Web site, http://internationalraspberry.org/IRA%20Lublin%20%202008%20-CHILE.pdf, accessed March 2011 20 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 21 Rod Cook, “World Production and Consumption Trends for Blueberry, Raspberry and Strawberry,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/2009/asociacion/NoticiasChilealimentos2009/2009/Cook.pdf, accessed March 2011 22 FAOSTAT, “Food and Agricultural Commodities Production,” FAOSTAT Web site, http://faostat.fao.org/site/339/default.aspx, accessed March 2011 23

USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011

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24 Invenire Market Intelligence, “Berries in the World: Introduction to the International Markets of Berries,” SITRA Web site, http://www.sitra.fi/NR/rdonlyres/4A1F0F29-0B3C-458C-8843-D5436BEE6542/0/IMI08_Berriesintheworld.pdf, accessed March 2011 25 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 26 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 27 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 28

Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 29


USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 31

Risto Karajkov, “Raspberries, Serbia’s Red Gold,” November 22, 2010, Osservatorio BalcanieCaucaso, http://www.balcanicaucaso.org/eng/Regions-and-countries/Serbia/Raspberries-Serbia-s-Red-Gold, accessed March 2011 32 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 33 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 34 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 35 USAID, “Marketing Research For Kosovo Berries Production,” USAID Web site, http://pdf.usaid.gov/pdf_docs/PNADL718.pdf, accessed March 2011 36 Falkenhorst G, Krusell L, Lisby M, Madsen SB, Böttiger BE, Mølbak K., “Imported frozen raspberries cause a series of norovirus outbreaks in Denmark,” 2005. Euro Surveill. 2005;10(38):pii=2795. http://www.eurosurveillance.org/ViewArticle.aspx?ArticleId=2795, accessed March 2011 37 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 38 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 39 Rod Cook, “World Production and Consumption Trends for Blueberry, Raspberry and Strawberry,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/2009/asociacion/NoticiasChilealimentos2009/2009/Cook.pdf, accessed March 2011 40

“Serbia earns $200 million from selling Raspberries,” March 26, 2010, Macedonian International News Agency, http://macedoniaonline.eu/content/view/13330/46/, accessed March 2011 41 Euromonitor International, http://www.euromonitor.com, accessed March 2011. 42 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 43 International Raspberry Organization, “England,” IRO Web site, http://internationalraspberry.org/england.html, accessed March 2011 44

“UK: Blueberry is now second most popular fresh berry,” January 31, 2011, Fresh Plaza, http://www.freshplaza.com/news_detail.asp?id=75394#SlideFrame_1, accessed March 2011 45

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Asian Pacific Research Ltd., “Opportunities for Chilean Food Exports in Taiwan,” on Chilealimentos Web site, http://www.chilealimentos.com/medios/Servicios/Normas_internacionales/Norma_otros_paises/Normativa_Taiwan/oportunidad_alimentos_chilenos_exportar_taiwan_Prochile.pdf, accessed March 2011 64 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 65 International Raspberry Organization, “Chile,” IRO Web site, http://internationalraspberry.org/china.html, accessed March 2011 66 Euromonitor International, http://www.euromonitor.com, accessed March 2011. 67 International Raspberry Organization, “Chile,” IRO Web site, http://internationalraspberry.org/china.html, accessed March 2011 68 International Raspberry Organization, “Chile,” IRO Web site, http://internationalraspberry.org/china.html, accessed March 2011 69 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 70 Foreign Affairs and International Trade Canada, “Tariff Information,” DFAIT Web site, http://www.international.gc.ca/trade-agreements-accords-commerciaux/goods-produits/ac_link.aspx?lang=eng, accessed March 2011 71 Datamonitor, http://www.datamonitor.com, accessed March 2011 72 Global Trade Atlas, http://www.gtis.com/gta/, accessed March 2011 73

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Documents

MARKET ANALYSIS REPORT - B.C. Homepage - … coffee shops, ice-cream parlours and food processors. Taiwan imported 107 tonnes of frozen raspberries in 2009, with nearly two-thirds