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Development ofwholesale and retailmarkets in Europe

Challenges and opportunities

Chandigarh, India

20-21 November 2012

Chandigarh, India

20-21 November 2012

Agenda Importance of markets in Europe

Purpose and definition of markets

Advantages of markets

Customer needs and marketing

Goals for the management

Historical development and parameters

Lease contracts

Provide competitive services

Food safety

Business economy

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Torben Flinch, m.sc.agr.Business development, consulting and board of directors

Chairman and board member WUWM 8 years

Managing director Copenhagen Wholesale Market 9 years

Managing director Agricultural Advisory Company 7 years

Chief of board education Danish Agricultural Council 3 years

Consultant Cooperative Development 3 years

Agricultural adviser Economics and production 4 years

Farming 20 years

Chandigarh, India

20-21 November 2012

Importance of wholesale

and retail markets in Europe

Wholesale markets 21 EU countries

110 wholesale markets

1 mill. employees 42 bill. euro turnover p.a.

40% of produce supply in Europe

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Importance of wholesale

and retail markets in Europe

Retail markets 21 EU countries

25.000 retail markets

1 mill. employees

450.000 retail traders

40 bill. euro turnover p.a.

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Purpose of wholesale markets

Promote food producers and wholesalers trade with

professional buyers to strengthen their market position

and income by:

Supporting rational trade

Rent out space and logistic facilities

Provide competitive services

Marketing the market and the products

Develop the range of goods, the buildings and

the infrastructure

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Wholesale market advantages Known concept

Transparency and high market information

Cooperation possibilities for products, logistics

and sales

New business areas or products can be tried easy

and at low costs

Modern facilities to help increasing product quality

Inspiration, knowledge, innovation

All Customer groups are included Customers, suppliers and competitors are close by

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Customers want

Fresh products

Large range of products

Confident supplier relations

High level of service

Easy access Prices are not crucial(Investigated by Retail Institute Scandinavia 2008)

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Marketing

Customer investigations

what do tenants and customers want?

Web

market information

Posters

product information

Campaigns

usage of products, cooking and healthy diet

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Poster(example)

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Goals for the management

to support the actors on the market

Service minded through all our relations

Eventful at every visit

Diversity product range and business concepts

Efficiency logistic, common services and trade

Safety people, food, environment

Knowledge customers, society and politicians

Chandigarh, India

20-21 November 2012

Historical development of the

wholesale/retail market concept

Influence from external economic

and technologic conditions on markets

Structural development of producers,

traders and retail supermarkets chains.

From small and many

Big, specialized and few

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Historical developmentof the market concept - 1

1950 Old market places in the town center

1950 1970 Separation of wholesale/retail

Relocation of wholesale markets

1970 2000 Development of wholesale markets

infrastructure, services andmarketing

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Historical developmentof the market concept - 2

2000 now:

New owner structures public/private

Relocation or reconstruction

of wholesale markets (second time)

Focus on logistic and food service

Development of retail markets

Collaboration between wholesale and

retail markets on competing the supermarkets

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Development parameters - 1

Wholesale and Retail

from integrated separate and rebuilding collaboration

Products

from field processing

Price formation

from auction contract

Trading

from cash and carry distribution

Chandigarh, India

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Development parameters - 2

Infrastructure and building

from market hall closed cool chains

Owner structure and management

from public private

Economic Model

from public service commercial business

Location

from town centre suburb

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Lease Contract

Rent: fixed pr. m2 (inflation/regulation).

Service fee: tenants pay for services.

Reconstruction: if tenant stops the lease:

Obligation: to maintain and

reconstruct the space.

Termination: on termination of lease:

Compensation: if management needs thespace for other purpose.

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Competitive services

Access to efficient logistic facilities

Common opening hours

Entrance services and control

Parking

Waste management

Fork-lifts and gas services

Food safety control

Marketing

Tenant association (involvement)

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Food Safety

Guide to good practice for wholesale

market authorities and managers

within the European Union

Clean, cold and efficient

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Guide to good practice formarket managers - 1

Requirements for food premises

Quality Control (htccp)

Risks and responsibilities

Water supplyCleaning

Waste management

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Guide to good practice

for market managers - 2

Pest control

Temperature control and ventilation

Lighting

Services

Personal hygiene

Training

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Efficient logistic (example)

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Business EconomyExample, Copenhagen Wholesale Market2012 estimate, mill. DKK

(Private owned commercial company)Income (turnover) 51,1

Deprivation - 6,1

Real estate tax - 6,8

Maintenance - 5,0

Operating costs - 12,9

Consultants - 1,8

Administration costs - 7,9

Finance (interest on loans) - 7,5

Tax (income) - 0,8Result (Net) + 2,3

Chandigarh, India

20-21 November 2012

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