Development of wholesale and retail markets in Europe Challenges and opportunities Chandigarh, India November 2012

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India November 2012 Importance of wholesale and retail markets in Europe Retail markets – 21 EU countries  retail markets  1 mill. employees  retail traders  40 bill. euro turnover p.a.

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India 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)

Chandigarh, India 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

Chandigarh, India November 2012 Poster (example)

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India November 2012 Historical development of the market concept – 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

Chandigarh, India 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

Chandigarh, India 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

Chandigarh, India 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.

Chandigarh, India 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)

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

Chandigarh, India 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

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

Chandigarh, India November 2012 Efficient logistic (example)

Chandigarh, India 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

Chandigarh, India November 2012 Welcome in WUWM To get information and share experiences across boarders