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CBI - Ministry of Foreign Affairs
The Value Chain Analysis
10-04-20232
Objective
The Validation of the CBI’s Export Value Chain Analysis of Bolivian Wines:
“ What are the Key Bottlenecks preventing Exports?” Presentation of contents
Feedback
CBI - Ministry of Foreign Affairs
10-04-20233 CBI - Ministry of Foreign Affairs
Contents
•History wine production •Tourism•Regions•Grapes•Exports•Quality•Corporate Social Responsibility (CSR)•Supply Chain•Stakeholders•Bottlenecks summary•Value Chain Map•Market opportunities
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History
• XV century start of viticulture with Spanish and Portugese traders
• Cinti region in 1584, registered in Tarija in 1606, followed by 1618 in Samaipata
• Through mining ‘Singani’ became popular against low winter temperatures
• Priest Alejandro Corrado wine exported to Tucuman and Potosi in 1755
• XXth century grape production > 1000ha
• Increasing professionalism in production and distribution now reaching estimated 3000ha
• Sector provides 5000 direct and 11000 indirect jobs
CBI - Ministry of Foreign Affairs
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Tourism
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• Wine route started in Tarija 10 years ago
• New project led by FAUTAPO include quality certification system for wine route, increasing tourism
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Regions
• in 2013 estimated increase to 2700ha (90% area in Tarija and Chuquisaca)
• 50 wineries active in Tarija, of which 33 registration SENASAG (health) and SIN (tax)
• 2200 small family growers in Tarija and Chuquisaca (0,5 - 1ha)
• 260 small size growers (1 - 5ha)
• 100 growers (>5ha)
CBI - Ministry of Foreign Affairs
Bottleneck – Focus on local consumption of grapes and production of singani and artisanal
Bottleneck - small economies of scale resulting in relative high cost prices
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Grapes Most planted varieties are
Moscatel, Cabernet Sauvignon and Tannat. Moscatel is mainly used as base for Singani
International quality varieties as Cabernet Sauvignon, Chardonnay, Sauvignon Blanc, Merlot, Syrah, Malbec and Riesling account for only 22% of total grapes. This includes some local yet interesting varieties such as Tannat (Uruguay) and Torrontes (Argentina)
CBI - Ministry of Foreign Affairs
Type of wine Grape Variety Quintal (qq) Percentage (%)
Table white wine Moscatel de Alejandria 28,960 28.7
Table red wine Black criolla grape 10,231 10.1Varietal red wine Favorita Diaz 9,197 9.1
Varietal red wine Cabernet Sauvignon 8,044 8.0
Varietal red wine Syrah 5,523 5.5
Table red wine Grenach 4,761 4.7Table red wine Alfonso La Valle and/or
Rivier4,296 4.3
Varietal red wine Malbec 3,717 3.7
Table red wine Cariñena 3,183 3.2Varietal white wine
Chenin 2,742 2.7
Varietal red wine Merlot 2,569 2.5
Varietal red wine Tempranillo 2,237 2.2
Varietal white wine
Ugni Blanc 1,948 1.9
Varietal white wine
Franc Colombard 1,735 1.7
Varietal red wine Barbera de Asti 1,702 1.7
Table red wine Cereza 1,296 1.3Varietal white wine
Riesling 1,087 1.1
Varietal white wine
Sauvignon Blanc 1,063 1.1
Table red wine Vischoqueña 969 1.0Others (includes 18 varieties)
5,760 5.5
TOTAL 101,02 100%
Bottleneck for exports – Available grape variety
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Grapes
CBI - Ministry of Foreign Affairs
• In 2009 Cadastre registered 539ha table grapes, 689 wine grapes and 360ha singani
Bottleneck – local consumption of 10 million liters assumes limited interest for exports
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Exports
CBI - Ministry of Foreign Affairs
• Hardly any exports of Bolivian Wines:
Less then USD 50,000 per year (of which large proportion to China)
Bottleneck – Limited expertise and experience with exports Bottleneck – Limited awareness of market potential
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Quality
• Limited quality assurance (HACCP) nor ISO registrations
• Complicated quality registration process (SENASAG)
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Bottleneck – No certificate of Origin without Quality registration
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Corporate Social Responsibility (CSR)
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• Large proportion of family growers (limited social requirements)
• Environmental standards are implemented scarcely
• Required training and education to wineries and grape growers
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Supply Chain
• Complicated and lengthy procedures for imports of raw material such as glass and cork
• No glass factory - limited local demand
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Bottleneck – A great dependency on complicated Imports of raw materials
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Bolivian Wine Stakeholders
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Stakeholders
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• A variety of Wine Associations exist (ANIV, AMEVIT, ASOBOC, AVISA)
• Limited budget, limited awareness, limited grapes, limited wineries
• Co-operation? A collective sectoral approach is the challenge
Bottleneck – No coordination & structural information sharing between associations
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Stakeholders
• Large institutional landscape with individual service providers (IBCE, FAUTAPO, CENAVIT, SENASAG, IBNORCA, CAINCO, CADEX, CANEB, FTE)
• Some funds available for viticulture, export promotion (CBI, NL Embassy, BID)
CBI - Ministry of Foreign Affairs
Wine Sector Platform required to co-ordinate efforts
grape growers
dry goods suppliers
wineries
importers
retailers
consumers
supporting functions
rules & regulations
Wine BSOsBSOs
ministry of agriculture
informing & communicating
quality control, taxes, permits
donors
Bottlenecks for Exports: Summary
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Insufficient supply of grapes for the Export Market
Quality of supply of grapes for the Export Market
Lack of certification bodies
Black Markets and illegal imports
Dependency of imports raw materials
Local market is sufficient to current offer
Small economies of scale resulting in relative high cost prices
Zero awareness of Bolivia and Bolivian wines in target markets
Lack of efficient and collaborative approach for the whole sector
Lack of export knowledge and skills
Percepciones del mercado desde las empresas (inteligencia)
Cuellos de Botella
Reactivación SENAVIT: Laboratorio para la certificación del producto, Investigación de producto
Asistencia financiera (productos específicos), mecanismos de financiamiento.
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Opportunities in exports
There are a few EU markets that clearly have potential:
Open consumer opinion; markets that are open to new trends
(UK, Netherlands and to lesser extend Sweden, Denmark and Germany)
New wine markets; short wine drinking tradition, are open to try new things.
(Poland)
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Market Opportunities
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Relative high production / export pricesRelative small available export volumes
United KingdomNetherlandsGermanyDenmarkSwedenPoland
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Bolivian wine focus on (Super) Premium category
Specialist retailHoreca
Market Opportunities: UK
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Retail - 72,5% marketshare - nearly 1 billion literSpecialist channel 8,3% market share - nearly 80 million literSouth American category 10% - approx. 8 million liter
Potential Bolivia 10% of South American category ?
Market Opportunities: Netherlands
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Retail - 80% marketshare - 200 million literBig focus on wines below € 4,99 price pointSouth American category within Specialist channel 2,5 million liter
Potential Bolivia 10% of South American category ?
Market Opportunities: Denmark
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Retail - 80% marketshareLarge number of small importers with own specialist wine shops 27% of wines come from Developing Countries - 10 million liter
Potential Bolivia 5% of Developing Countries category
Market Opportunities: Sweden
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Retail - monopoly market (1 buyer) nearly 200 million literNo specialist channel availableSmall Horeca market
Potential Bolivia for a small tender with Systembolaget?
Market Opportunities: Germany
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Large market (50% own production/50% imports) nearly 2 billion literOnly 3% of sales > € 5,00 - still nearly 70 million liter
Potential Bolivia 0,5% of premium category ?
Market Opportunities: Poland
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New wine market - growing consumption, now estimated 50 million literSpecialist channel - nearly 3 million liter
Potential Bolivia 1% of specialist wine sales ?
Your input and Feedback
Complete overview of bottlenecks?
Validation: is the contents of the VCA in line with your view?
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Bottlenecks
Bottlenecks Validated
Conocimiento y experiencia en la exportación
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