With more than 300 delegates representing some 30 countries, the 23rd congress of the World Union of Wholesale Markets i(WUWM) n Lisbon last week was a success in terms of attendance. It was also a success politically, as the union's closing declaration paved the way forward for the future of wholesale markets.
“With increased growth in international trade, it is imperative the role and strategic organisation of traditional commerce is redefined,” the declaration states. “...Wholesale markets acting as concentration platforms play an important role in the promotion of food quality and safety as well as in the strategic development of viable alternatives for the marketing of food products.”
Increasing services to customers, boasting hi-tech resources and implementing cross-border quality regulations are also on the agenda for the markets of the future.
The WUWM also invited the European Commission to adopt its definition of a wholesale market in the commission's Good Practice Guide which is set to be published shortly.
After the failure of World Trade Organisation talks in Cancún last month, the wholesale markets at the union's congress expressed their willingness and commitment to promotion and regulation of the international food trade. But beyond that, there was a real spirit of co-operation among market authorities at the Lisbon gathering and issues such as waste management and logistics were hot topics of shared experiences and solutions.
Speakers emphasised that markets should consider themselves part of a network. Raul Green of the French national institute for agronomic research, Inra, outlined “third-generation markets” that must diversify their offer, meet the challenge of evolution in transport and increasing demand for traceability. But above all they must look for a global strategy and enjoy harmonisation on both national and European levels, finding a way to level their technical differences and increase sharing of information and experience.
Freshfel Europe's Philippe Henri moderated the fresh-produce session in Lisbon and focused on globalisation and the predominance of supermarkets. Meanwhile, the emergence of new producer-countries was embodied by Brazilian Francisco Souza Papaléo who warned that Latin America is changing. “Apart from just producing fruit, we provide first-rate, safe fresh produce,” he said. And figures backed up the increasing popularity of Brazilian fresh produce with export increases for apples, oranges, pineapples and melons.
The University of California's Roberta Cook analysed the challenge of supplying seasonal, perishable products year-round in a climate of retail consolidation. She suggested wholesalers become more service and account oriented in order to add value and remain competitive.
In Spain, wholesalers are already taking this to heart. Mercasa's Miguel Ramirez Gonzales outlined his country's experience with 22 network-platform markets that between them handle more than 80 per cent of the fruit and vegetables consumed in Spain. And Bernard Piton explained the strategy adopted by French wholesalers: first, to identify those areas where wholesalers have a competitive edge such as knowledge of their product, market and sources and to build their offer on this basis in line with consumer requirements for taste and health. “This new offer is interesting because it is more difficult and, above all, it is all about proximity of distribution,” Piton said. “Our strategy is to give small retailers the tools they need such as training. We must change the rules of the game and introduce a strategic plan for product range segmentation along the supply chain.”
A year in advance of football's big date in Portugal ñ Euro 2004 ñ a combined English and Scottish team made it to the congress in Lisbon. The Corporation of London sent three delegates including Daniel Caspi and David Smith and David Butcher was there to represent Billingsgate with John Mann, formerly of Smithfield. New Covent Garden was represented by the market authority's Mike Liggins and Graham Wallace and William Timoney represented the National Association of British Market Authorities.
Sydney's market director Geoff Bell shared valuable experience on waste management at the Australian market located in the heart of the city. “It is not an elegant theoretical system but a pragmatic approach to strike a balance between environmental responsibility and financial profitability,” said Bell. The authorities in Australia are harsh on violation of environmental legislation and wholesalers have been working hard to reduce water wastage by a quarter as well as carefully monitoring packaging brought to the market. They have also taken action to reduce the use of ozone-depleting gases and increased energy efficiency with photoelectric cells to manage light utilisation. “Environmental, social and economic values are one,” said Bell. “But there are carrots for the tenants: recognition as a social actor, protection of the environment and cost savings.” In fact, reducing waste management cost allowed the privately owned landlord to offer discounts to tenants.
Wholesale markets in Europe also are proactive. Cleanaway Germany's Paul Rosembloom explained how his company runs waste collection and recycling at Hamburg market. Electronic identification with magnetic badges has been implemented and the market plans to built a wood incinerator that will provide energy to be used on the premises or for sale onto the national grid. Jordi Maymó, director general of Mercabarna, explained the Green Point project on the Catalonian market, which covers an area of 5,700sqm and represents investment of e1.7 million. The project is part of the market's new integral waste management plan and an environmental policy inspired by two basic principles: to improve its own activities to protect the environment and facilitate sustainable business policies among the market's food wholesalers.
Europe moved a step closer to a harmonised pricing system when Alain Jacquotot, director of the French ministry of agriculture's Market News service and his Italian counterpart of markets-owned InforMercati Ottavio Gualo signed an information exchange agreement.
Market authorities will have the opportunity to put theory into practice and tighten the communication links between them at two mini-congresses next year. Delegates will meet in Rome in May to discuss market relocation and pricing systems and in Sydney in November to look at adding value to market activities. The next full congress is scheduled for 2005, at the Maryland Food Centre in Jessup, Baltimore.
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