1. Sumit Saran The SCS Group[email_address] World Horticulture Scenario and India

2. Presentation Roadmap

World Horticulture

Indian Horticulture

• India as a Producer

• India as a Supplier

• India as an Buyer

Suggested Steps for Future

3. World Horticulture

GrowingDemand

Year Round Consumption

Shrinking Boundaries

Stagnating Production

4. Meeting the Demand

The Giants

• Ecuador (Banana)

• Chile (Apples, Grapes)

• USA (Apples, Pears, Grapes)

• Israel (Flowers and Vegetables)

• Spain and South Africa (Citrus)

The Movers

• China

• Thailand

Non Players

• India

5. Global Marketing Infrastructure forFresh Produce 6. Field Harvest Pre-cooling Shipping PreShipping Produce Storage Grading Packaging Wholesale Market Retail Market 7. The Issue of Cold Chain A Chain is only as Strong as itsWeakest Link 8. Horticulture Business in India 9. Indian Horticulture Situation

Significantly differing assessments

• Golden Revolution

• Hyperbolic description of a fundamentally stagnant sector

India is one of the largest and lowest cost producers of high value horticulture commodity

Miniscule share in global trade

10. The Indian farmer is globally competitive but Indian agriculture is notSource: UN Comtrade and World Bank India Share in World Production Indian Prices as Part of World Prices 11. India The Supplier 12. Indian Fruit Production Shares Source: National Horticulture Board, GOI 13. Share in Global Trade & Production 14. Apples 15. Grapes 16. Pears 17. Banana 18. Onions 19. Mangoes 20. India - A Regional Player Source: World Bank 21. Suppliers Breaking the Distance Barrier Source: World Bank 22. Can We Overcome India can become a significant exporter of horticultural produce if it reduces itshigh delivery costsand improvesweak standardsandassessment mechanismsat home. -- World Bank Study 2007 23. Source: UN Comtrade and World Bank 24.

Logistics and intermediation costs dwarf production costs

• Farmers receive less than 20% of the final cost

Indias international transport costs are higher than those of competing countries

• Indian Grapes at the same price as Chile even when they are 40% cheaper at home

Gap in standards accentuated because of poor domestic quality

• Cold storage facilities exist for only 12% of the total fresh produce. (excluding fisheries, milk and meat products)

Trade barriers

Impediments to Exports 25. Domestic Reality 26. Them vs. Us Very Limited and Sporadic Promotions and Programs Miniscule Trade Show Presence Extensive Trade Show Presence India Major Suppliers Needs to be integrated Governmental interventions Protocols not present Adherence to buyer protocols High Wastage Good Post harvest management Non existent Domestic quality parameters Effort on too many products Identified products for exports 27. We Need To Look Within

Understand the difference between trade and exports?

Establish Competitive Advantage

The issue of more than 30% wastage

Processing what we waste

The reality of imported fruits

The issue of cold chain management

28. Steps Needed

Creating an integrated and competitive supply chains for agriculture

Radical reform in transport, storage and distribution services

Pro-active engagement in international trade negotiations

Long term planning for promotions and trade show participation

• Fruit Logistica, Berlin

• Asia Fruit Logistica, Hong Kong

29. Ground Rules for Succeeding in Export Markets

You cannot export what you want

• You will only be able to export what the market wants

Quality is not a subjective thing

• Quality parameters are documented and exports must follow protocols

Its not about good or bad quality

• It is about consistent quality

Promotions and trade show participation decisions cannot be sporadic

• They will need long term planning

Speed will be Important

• But Direction will be Critical

30. India As a Buyer 31. The Times They Are A Changin Eating Habits Retailers/Selling Consumers/Buying 32. Changes in Consumption

Mineral Water

Maggi/Instant Noodles

Pasta/Olive oil

Thai Food/Lebanese Food

Pre Cooked Kebabs/Chicken Wings

Pressure Cooked Cakes!

California Grapes/Washington Apples

33. Changes in Consumption Wheat Flour / Atta 34. Changes in Consumption Rice/Pulses 35. Changes in Consumption Spices / Masala 36. Changes in Consumption Meat Products / Kebabs 37. Changes in Consumption Paani/Drinking Water 38. Changes in Consumption Fruits and Vegetables 39. Indian Fruit Import

Imports of 77,450 MT in 2007-2008

Among the fastest growing category

Increase of 826% from 2000-01

85% of total Indian fruit imports are dominated by temperate fruits

USA and China are the largest suppliers

Other suppliers include Chile, Australia, New Zealand and South Africa

40. Fresh Fruit Imports Source: DGCIS, Ministry of Commerce, Government of India 41.

Really it does not matter

Are you the lion or the gazelle?