Covid-19 accelerates consumer demand for healthy and traceable fresh produce
When it comes to F&B exports to the GCC region, the pandemic crisis has stressed the need for open trade, international safety standards and greater industry collaboration to address the challenges of a more sustainable global food system.
This was the view of expert panelists gathered for the European Union’s recent webinar: ‘Beyond Covid-19: Rethinking Food for the Future.’
Organized by the EU as part of its ‘More Than Food’ communication campaign, the event was held last week and was attended by more than 150 F&B industry professionals from the GCC region.
Panelists included Taina Sateri, Trade Counsellor at the Delegation of the European Union to the UAE; Miguel Angel Povedano, Chief Commercial Officer, Majid Al-Futtaim Retail; Monique Naval, Senior Analyst Euromonitor International; and Mohammed Nasser, Chief Executive Officer, NRTC Group. The session was moderated by Simon Ritchie.
Pandemic fallout
Discussion focused on the impacts of Covid-19 on consumer demand and food related businesses across the GCC, as well as what the European Union is doing to ensure the region is supplied with high quality and safe agro-food products.
According to Euromonitor International, the GCC countries have fared well in terms of adequate food supply, helped in part by national food security measures put in place well before the crisis.
However, the pandemic has accelerated the implementation of these measures to secure supply chains and saw immediate action centred around four main response nodes of business continuity, labour planning, logistics and communication.
“Food supply chains are likely to be fundamentally altered in the future as localism gains prominence. But this needs to be balanced against growing consumer preference for healthy, nutritious and high-quality food imports,” explained Monique Naval.
EU farm exports uptake
European Union farm exports to the GCC during the height of the pandemic have sufficiently met the needs of the region, growing 25% in the first quarter compared to Q1-2019.
“This huge growth is testament to the good coordination between the respective EU and GCC authorities as well as the EU’s ability to respond with a resilient supply chain,” noted Taina Sateri.
This reliability is critical for retailers like Carrefour. According to Miguel Angel Povedano, provenance and traceability will become even more vital to consumers’ purchasing decisions in the future.
“With regards to products coming from the EU, it is imperative that we ensure steady supply and focus on the core strengths of food products that represent value, especially around quality. Our data indicates that people want to know about the origins of their food, how it is produced, and the journey it took to reach them,” he added.
NRTC upswing
As one of the region’s leading importers and exporters of fruit and vegetables, NRTC Group has witnessed a 200% increase in consumer demand for fresh and healthy produce.
“We have definitely seen a shift in consumer buying as it has become more focused on healthy, fresh produce and, to a certain extent, increase of purchasing from known safe sources of fresh produce, like Europe,” observed Mohammed Nasser, Chief Executive.
Panelists agreed, the biggest challenge facing GCC countries will be how to balance the import and local production of fresh produce to adequately and sustainably meet their needs and the shifting demands of consumers.
