R o m a n i a F O O D T R A C K The project Food Track VS/2016/0409 - - PowerPoint PPT Presentation

R o m a n i a F O O D T R A C K

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

FOOD TRACK VS/2016/0409

“A transparent and traceable food supply chain for the benefit of workers, enterprises and consumers: the role of a mulK-sectorial approach of industrial relaKons and corporate social responsibility”

Context Policy assessment Methodological framework Results Proposal and conclusions

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Context

Apples : Poland 28.7% ( Italy 19.6%, France 14.5% ) Cherries : Poland 29.3% ( Spain 11.9%, Italy 11.2%, Hungary 9.9%, Romania 8.2%,) Strawberries: Spain 31.6% ( Poland 17.4%, Germany 12% ) Peaches: Italy, Spain, Greece produce over 91%

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

EU Fruit ProducEon (2016)

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Total Surface area ê 33.0% Fruit produc5on é 13.0% Apple surface area ê 6.0% Apple produc5on é 1.6% CulKvaKon EvoluKon 2007 - 2016

Total Area Total ProducKon Specifics Apple Plumb Other Area ProducKon Area ProducKon Area ProducKon Fruit Specifics

€.42/kg

Fruits & Vegetables Producers

24 AssociaKons Since 2007

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

33 Stores Since 2000

Hypermarket

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Improving the buying power and quality of life for our growing clients, together with

• ur responsible, professional, passionate,

a n d a p p r e c i a t e d c o l l a b o r a t o r s .

33 hypermarkets 10000 employees Over € 1.2 B in sales Case Study

Since 2000

Different pracKces in the countries they operate

• margin condi+ons

Fair trading pracKces

• equal chance to par+cipate in the auc+on
• request to launch price offers for hypermarket ac+ons (ex apple purchases, promo+ons)
• respec+ng the best price-quality ra+o

Supply chain transparency and traceability

• the +mely launch of orders
• fresh margins 2% -15% vegetable & fruit
• tracking the ar+cle and sales directly in the store (by marketers and promoters)

Mechanisms for fair trading pracKces and traceability of supply chains

• Contract penalty clauses for non-delivery ( but not for local producers)
• there are no warran+es for the local producers !!!!

Quality cerKficaKons , convergences and divergences among the EU Member States

• Quality cer5ficate, declara5on and no5ce of compliance

C o n t r a c t t e r m s

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Policy Assessment

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Project Consists of a series of events held in 7 major ci5es: Timisoara, Constanta, Craiova, Sibiu, Suceava, Baia Mare and Cluj. A Product Direc5on team travels to each city to meet the producers. “Speed data" mee5ngs are conducted where producers present the product offer.

Project: "Auchan in support of Romanian producers”

Corporate social responsibiliKes Mission The objec5ve of the event is to have the largest porYolio of qualified food and non-food producers in Romania.

• Pricing policy is similar to all manufacturers
• Different prices in the 33 stores
• Payment term (7 days – 30 days)

51% Romanian products ( Legisla5on 321/2009 )

Pricing policy LegislaKon

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Strengths

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Strengths

Local products (local affilia5on) Fast delivery, mul5ple deliveries Ease of promo5on (sampling, tas5ng) Fresh products

Weaknesses

Limits in logis5cs and quan5ty Quality issues affect contract terms Price driven with gov subsidies Poland drives market price

Opportuni5es

Possibility for good prices, fresh products Local community development educa5ng and encouraging local consump5on, afrac5ng new clients Promo5on of Romanian products

Threats

Losing a good local producer Farmer Associa5ons/Coopera5ves Compe55on by proximity

SWOT

Analysis

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Since 1991, Pombis operates 100% on Romanian capital and serves various agricultural sectors. Proudly expanding in the market, Pombis has 50 permanent employees, and over € 1M in annual sales.

Today Pombis has 300 hectares of

• rchards where they grow apples,

plumbs and cherries. And since 2011, they produce two brands of natural juice, “Alma” and “Livada cu soare”.

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Mr Onigas Aurel Town Ciceu Mihaies5 Expanding

Vulnerable group “Romi”

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Workforce

50% male, 50% females Age Gender 17-75 years of age Romi Least hired vulnerable group Least qualified group Pay € 20/day (seasonal) Employer subsidized

PesKcide and ferKlizer Fuel, Electricity Packaging (weak) Temperature Control Warehouse (expensive) Transport MarkeKng (weakest)

SupporKng Industries

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

CompeKKon

Big Land Company (550 Hectares Vegies and Grains) Kronstadt Fructe SRL ( Fruits )

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Strengths

Large quan55es Quality standards Consistency Seasonal Workforce Supplemental products Business Insurance

Weaknesses

Big demands and Quality variability Penal5es in late delivery Legisla5on changes Workforce

Opportuni5es

Publicity outside the store Export in UE Work with small producers Insurance mutual fund (UE)

Threats

Foreign producers Befer quality standards Poland drives price Unfair Seasonal legisla5on Large state taxes (employees and employer) Fake Producers

SWOT

Analysis

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Small Producers PerspecKve

Small producers are quickly disappearing, losing businesses and jobs. What hypermarkets promoters fail to understand, or ignore, is that big supermarket destroy small, local producers and communi5es. Another issue is that local producers keep the local economy alive, while hypermarkets profits go to company patrons outside the country.

• Less money in the local economy and in the Romanian budget. Profits go abraod
• Less jobs in the community
• Dependence on local hypermarkets for selling products (price discriminaKon)
• Small salaries, destrucKon of green areas, and creaKon of corrupKon based on bribes
• PoluKon as more transportaKon is needed to reach the supermarket in big ciKes
• EliminaKon of small producers, crah, tradiKon, and tradiKonal products
• Monopoloy and preferanKal treatment from authoriKes (companies drive legislaKon)
• Canibalizing local products due to imposed hypermarkets and UE standars, losing quality products

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

What hypermarkets mean for small producers

• EliminaKon of small producers, crah, tradiKon, and tradiKonal products
• Monopoloy and preferanKal treatment from authoriKes (companies drive legislaKon)
• Canibalizing local products due to imposed hypermarkets and UE standards, losing quality products
• Chemical Treatment of trees and impact on neighboors, environment ( bees )

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

What Big Producers mean for small producers

SOLUTIONS

• Young farmer programs ( bringing youth in rural, agricultural work )
• Crea5ng a sustainable proximity market place for local farmers (Auchan project

“22 proximity stores”)

• Financial support (Leg nr 740/2017) of small producer associa5ons/coopera5ves

(compe55ve quan5ty, quality, price)

• Collabora5ons with UE members in establishing proven coopera5ves models
• A unanimous UE plaYorm for UTP standards
• A unanimous UE database for migrant workers, registered, protec5on of human

rights

• Awareness of trading standards, prac5ces, and legisla5on
• Promo5on of both tradi5onal products as well as ubiquitous UE traded

products.

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

The project Food Track VS/2016/0409 is carried out with the financial support of the European Commission

Thank you