Portuguese Agro-food Sector

Isabel Braga da Cruz

(knowledge Division | PortugalFoods)

Alimentaria & Horexpo

Lisbon, 29th March, 2011

• Characterisation of Agro-food sector in Portugal over an European context;

• PortugalFoods Observatory (example) – analysis of food product launches in the Portuguese market;

• Conclusions

Outline:

General context: Agro-Food Sector in Europe

* Source: CIAA

• EU Food and Drink industry (2008)

• Agro-food sector is the biggest industrial sector in Portugal, as well as in Europe;

General context: Agro-food sector in Portugal

• Portuguese Agro-food sector corresponds to 16% of the total transformation industry in Portugal;

• It represents a turnover of

13.500 M€ (2009);

• It contributes to 7,6% to GNP.

• Portuguese Agro-food sector is mostly composed by SME’s, highly dispersed;

• Major food production is focused on a reduced number of enterprises.

• Total number of enterprises in food field ranges 11.000;

• Total number of employees in food field ca. 111.000

Source: FIPA, based on INE data

• Turnover evolution*

General context: Agro-food sector in Portugal

• Source: FIPA projections for 2008 and 2009, INE data (2003 to 2007)

year

Turn

-ove

r (M

€)

13.500 M€

• Relative weight of the different sub-sectors to the turnover (2009)*

General context: Agro-food sector in Portugal

• PT: Beverages, Meat, and Dairy and the major sub-sectors representing 44% of total

turnover

* Source: FIPA, based on INE data

• EU: Beverages, Meat, and Dairy and the major sub-sectors representing 50% of total

turnover

• Distribution (%) of the enterprises by sub-sector

General context: Agro-food sector in Portugal

Source: FIPA, based on INE data

• PT: Beverages, meat, oil & fats

and dairy

• Employee distribution, relative weight of the different sub-sectors.

General context: Agro-food sector in Portugal

Source: FIPA, based on INE data

Source: FIPA, based on INE data

Great majority of the enterprises are of small dimension:

• 80% of the enterprises has less than 9 employees, representing 9% of total turnover;

• Highest contribution to turnover (21%) comes from enterprises with a number of employees (10-49);

• Only 2,8% of the enterprises has more than 50 employees.

General context: Agro-food sector in Portugal

Source: FIPA, based on INE data

Import & Export

• Agro-food products represent ca. 12% of the total importation in Portugal (6.000 M€ in 2007);

• Spain and Germany are the biggest players in EU;

General context: Agro-food sector in Portugal

Source: FIPA, based on INE data

R&D investment

• Agro-food sector traditionally has a reduced investment in R&D, when comparing with other production sectors;

• R&D investment in Portugal represents 1,2% of GNP;

• Despite the low investment on R&D, a high intensity and activity on innovation is evident, specially connected with differentiation of food products and processes, according to market trends and consumer demands.

General context: Agro-food sector in Portugal

General context: Agro-Food Sector in Portugal

Over the last decade Portuguese Agro-food sector has been learning how to value their uniqueness towards innovation, reacting to the new challenges of the global market and consumer demands.

• Over important changes on production units (evolving environment concerns and sustainability issues);

• By introducing Quality and Safety on their products, through HACCP and several certification processes;

• By improving communication with consumer (through marketing and label information).

How?

Observatory approach

“Food products in Portugal”

• Global analysis of new food products launched in Portugal (tracked by the Innovadatabase);

• Five years period of analysis: 2006 – 2010;

• Food products detected: 5.111 (products found);

Market Analysis: Product Launch Activity Positioning Analysis - Stand-outs & Product Trends

Outline

• Distribution analysis over the last 5 years, reveals a strong increase in food product launches beyond 2007;

• Slight increase

between 2007-2010.

Product Launch activity in Portugal

Product Launch activity

Retailer (Top 10 ) %

CONTINENTE 23,6

LIDL 18,4

HYPERMARKET 12,8

JUMBO 7,2

MODELO SUPERMARKET 4,1

PINGO DOCE 3,3

CARREFOUR 2,8

ALI SUPER 1,5

Hypermarket JUMBO 0,8

MODELO CONTINENTE HIPERMERCADOS 0,8

Company (Top 10 ) %

LIDL 16,1

MODELO CONTINENTE HIPERMERCADOS 4,7

NESTLÉ 4,1

KRAFT 2,4

DANONE 2,3

UNILEVER 2,2

JOAQUIM MOREIRA PINTO & FILHOS 1,6

PINGO DOCE 1,5

CARREFOUR 1,4

BIOREGIME 1,3

↗ Market distribution (top 15)

Market analysis

↗ Market category (top 10)

Market analysis

↗ Positioning

Market analysis

Conclusions: agro-food sector in Portugal

• Quality and Safety in parallel with certification, are the basis of whole agro-food scenario;

• Major trends in food sector, show that consumer demands healthier products, more convenient and of easy preparation;

• Nowadays is stated that food is seen a new cultural

approach, leading to new experiences and learning, beyond the inherent nutrition of food, leading to high opportunities of differentiation in food market and business.

Dzięki!

Isabel.bcruz@portugalfoods.org

Alimentaria & Horexpo

Lisbon, 29th March, 2011