1. Development of wholesale and retail markets in Europe Challenges and opportunities Chandigarh, India 20-21 November 2012

2. 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

3. Chandigarh, India 20-21 November 2012 Torben Flinch, m.sc.agr. Business development, consulting and board of directors Chairman and board memberWUWM 8 years Managing director Copenhagen Wholesale Market 9 years Managing directorAgricultural Advisory Company 7 years Chief of board educationDanish Agricultural Council 3 years Consultant Cooperative Development3 years Agricultural adviser Economics and production4 years Farming 20 years

4. 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

5. Chandigarh, India 20-21 November 2012 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.

6. Chandigarh, India 20-21 November 2012 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

7. Chandigarh, India 20-21 November 2012 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

8. Chandigarh, India 20-21 November 2012 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)

9. Chandigarh, India 20-21 November 2012 Marketing  Customer investigations what do tenants and customers want?  Web market information  Posters product information  Campaigns usage of products, cooking and healthy diet

10. Chandigarh, India 20-21 November 2012 Poster (example)

11. Chandigarh, India 20-21 November 2012 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

12. 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

13. Chandigarh, India 20-21 November 2012 Historical development of the market concept - 1  1950  Old market places in the town center 1950 – 1970Separation of wholesale/retail Relocation of wholesale markets 1970 – 2000Development of wholesale markets infrastructure, services and marketing

14. Chandigarh, India 20-21 November 2012 Historical development of 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

15. Chandigarh, India 20-21 November 2012 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

16. Chandigarh, India 20-21 November 2012 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

17. Chandigarh, India 20-21 November 2012 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 the space for other purpose.

18. Chandigarh, India 20-21 November 2012 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)

19. Chandigarh, India 20-21 November 2012 Food Safety  Guide to good practice for wholesale market authorities and managers within the European Union  Clean, cold and efficient

20. Chandigarh, India 20-21 November 2012 Guide to good practice for market managers - 1  Requirements for food premises  Quality Control (htccp)  Risks and responsibilities  Water supply  Cleaning  Waste management

21. Chandigarh, India 20-21 November 2012 Guide to good practice for market managers - 2  Pest control  Temperature control and ventilation  Lighting  Services  Personal hygiene  Training

22. Chandigarh, India 20-21 November 2012 Efficient logistic (example)

23. Chandigarh, India 20-21 November 2012 Business Economy Example, Copenhagen Wholesale Market 2012 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)- 0,8 Result (Net)+ 2,3

24. Chandigarh, India 20-21 November 2012 Welcome in WUWM To get information and share experiences across boarders