How to succeed as a UK fresh produce exporter

Compared to other countries active in the international produce sector – such as Spain, France and the Netherlands in the EU and then further afield in countries such as South Africa, Chile, Peru and Turkey – the UK has always been a small-scale exporter of fresh fruits and vegetables.

Indeed, the UK has always been a net importer of produce, especially in the fruit industry. Part of the reason for this is that many of the products we import simply can’t be grown in the UK for climatic reasons, such as citrus, bananas and other tropical fruit like avocado and mango, all of which are imported in significant volumes.

The other reasons include the level of domestic demand, which is driven by the requirements of the leading supermarkets, who are also very keen to show support for UK producers and will look to source locally whenever possible.

UK production has also been constrained by the availability of suitable land, planning issues and by the problems associated with finding and retaining enough quality labour. This last point has been exacerbated by the issues around Brexit.

A changing world

Yet the world is changing, not least with the problems caused by the rapidly changing situation regarding import tariffs, the use of high-tech production and distribution techniques, the impact of climate change on basic production and then the need for producers/exporters to show high levels of good practice around the subject of sustainability.

Post-Brexit, the government has a vision of the UK being a global trader, although this is often easier said than done. All of these factors though – if managed well - might play to the advantage of the UK going forwards and present opportunities that were not apparent in the past.

Niche producers look for niche markets?

It is doubtful that the UK will become a large-scale exporter, but rather remain as a niche supplier in international markets. Niche suppliers tend to look and find most success in niche markets.

As a result, UK producers and exporters will probably find the best opportunities in markets outside of the EU, such as the UAE, Hong Kong and Singapore to begin with. The UAE alone imports some 200,000 tonnes of apples and around 12,000t of strawberries.

The UAE often acts as an entrepot market to many other countries in the Gulf. There will be others of course that emerge over time. It is likely that the best opportunities will be found for higher-value products that might include berries, cherries and maybe top fruit too.

The UK also needs to maximise its image as a high-quality supplier with strong credentials around the provenance of the fresh produce sector.

Exports in the DNA

Exporting is an art form in its own right. Most successful exporters grow specifically for the export market, rather than trade what happens to be left over during a season. This means producing the varieties that are required by customers, at the price they require and with the appropriate logistics and packaging etc.

They also often have strong promotional support from either generic industry organisations or individual companies who have the resources and/or expertise to mount this sort of activity. And a basic scale of production allied to a strong export mentality and mindset in the industry concerned.

These factors are often not confined to just the horticultural sector, but can be found in other areas of the agri-food sector, such as dairy and meat. For countries such as Holland and Ireland as examples, exporting in the agri-food sector is in their DNA.

To find success in international markets, UK companies will need to better develop this export mindset. Markets need to be researched. Customers need to be identified. Visits to them need to be made and a real understanding of how the market is structured, how customers and consumers behave (and why) developed. The competition also needs to be assessed.

Technology, as well as products

As well as physical products, the UK might also find success in exporting its horti-technology, where it has a strong track record. Many of the issues that the UK is grappling with – the use of automation, climate-sensitive production, the management of scarce water and energy resources in order to develop more resilient supply chains – are also problem areas in many other parts of the world too. Everyone is looking for the optimum solution to these issues. Services provided by UK universities, R&D organisations and tech companies could well help provide at least some of the answers.

None of the markets that the UK wants to target, now and in the future, will not be being supplied by other countries, some of whom will have a considerable head start over the UK in terms of doing business there. A careful eye needs to be kept on the tariff situation too. In our experience, while tariff barriers can be overcome, non-tariff barriers can be just as, if not more, difficult to navigate.

UK producers and exporters need to become experts in their chosen export markets. This goes well beyond just understanding about the import and export of fresh produce, but developing a deep understanding of the economy per se, the socio-political situation and the wider geo relationships the market has with other countries.

This all adds to quite a tall order. Exporting to any market is not a short-term activity. It is not for the “in and out” supplier. It is part of a dedicated business/marketing plan. UK companies need to take a long-term view of what can be achieved in selected export markets and then plan accordingly and accept that developing new export markets takes just three things: time, resource and effort.

It sounds simple but the complexity of international markets means it is anything but this. Only the UK companies who can take this mid-to-long term, strategic approach are likely to find success in the end. Some UK companies might look at the “to do” list and decide that exports are not for them, but for those that can commit to the task of exporting, and develop the mindset that is required, the results could be very worthwhile.

John Giles is a divisional director with Promar International, the consulting arm of Genus plc, and has worked on horticultural assignments in some 60 countries around the world including Europe, the Midde East, Africa, the US and Canada, Latin America, and Asia.