National and International Factors in Pickle Markets

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National and International Factors in Pickle
Markets

• Dr. Suzanne Thornsbury
• Department of Agricultural Economics

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World Cucumber and Gherkin ProductionMillion Lbs
China 47.3
Iran 2.9
USA 2.3
Japan 1.6
Turkey 3.8
1999-2003 Average. Selected countries
represented 75 of total world production. Source
FAOSTAT, 2004
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World Cucumber and Gherkin Total Production
China
U.S.
Source FAOSTAT, 2004
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U.S. Trade of Cucumber for Pickles, 1979 - 2003
Source NASS, 2004
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U.S. Pickle Exports
Canada
Asia
Japan
Mexico
From January to September, 2004
Source STAT-USA, 2004
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U.S. Fresh Cucumber Exports
Estimated

Source NASS, 2004
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U.S. Brined Cucumber Exports
Canada
From January to September, 2004
Source STAT-USA, 2004
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U.S. Pickle Imports
Canada
India
Mexico
From January to September, 2004
Source STAT-USA, 2004
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U.S. Fresh Cucumber Imports
Mexico
CA
Canada
From January to September, 2004
Source STAT-USA, 2004
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U.S. Brined Cucumber Imports
India
Turkey
From January to September, 2004
Source STAT-USA, 2004
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U.S. Cucumbers for Pickle Per Capita Consumption
Estimated

Source NASS, 2004
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U.S. Season Average Price Cucumbers for Pickles,
1979-2003
Source NASS, 2004
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Drivers of Global Change in the Agri-food System

• Consumer preferences and income
• Technology
• Policy

Globalization in all stages of the Agri-food
supply chain
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As a consequence implications for the supply
chain

• Retail Concentration
• Grades and Standards
• New Markets
• New Business Models

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Procurement patterns for retailers, wholesalers,
and foodservice distributors have changed
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ConcentrationU.S. Grocery Retailers
Source USDA/ERS AER-811
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U.S. Retail Ranking Food Sales, 2003
Billion US
Wal-Mart includes Sams Club and Neighborhood
Supermarkets Source The Packer CXI, Bo 42 Oct
18, 2004 from a study by MM Planet Retail, London
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Tougher Private Standards

• Quality and safety
• EUROGAP
• CIES Global association of supermarket
  chains/suppliers
• Global Food Safety Initiative aims to harmonize
  food safety standards and practices among
  retailers
• CIES works with
• 250 top retailers (e.g. Wal-mart)
• 250 top suppliers to retailers (e.g. Nestle)

Source Reardon, 2003
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New Markets

• 6 billion people on the planet
• There are 4.5 billion persons in rapidly
  emerging markets in Asia, Latin America,
  Central/Eastern Europe
• nearly 1 billion are middle class with incomes
  growing 3-10 per year
• the MAIN growth market on the planet!
• One billion new middle class consumers to reach
  via supermarkets in developing regions
• Today, sales are focused on only 1 billion
  consumers in Europe, North America, and Japan

Source Reardon, 2003
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New Business Models

• Best Practices in Agriculture and Manufacturing
  geared to PRIVATE Standards
• Joint ventures, such as Hortifrut (Chile) with
  Michigan Blueberry Growers Marketing (Michigan)
  and Naturipe (California)
• One-stop shopping, year-round supply, access to
  new markets

Source Reardon, 2003
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New Business Models

• Information technology has dramatically changed
  the amount and timeliness of information
  available
• Standardized price look-up (PLU)
• Radio-frequency identification (RFID)
• Great investments in human resources and
  technology

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Challenges

• Preparation for tough competition is crucial
• New business partners are increasingly necessary
  to access main supply chains
• More investment in technologies to comply with
  private standards

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Procurement patterns for retailers, wholesalers,
and foodservice distributors have changed

• Consumers may be easier to reach...
• Efficiencies in the supply chain

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With globalization you can loose a lot Or win a
lot!!!
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