F&V SECTOR STRATEGY: BRANDING AND CHAIN INTERACTION
“Innovation is a driver behind vegetable growing”
Interview with Michael Kester, Syngenta Regional Head of Vegetable Seeds EAME
At Fruit Logistica 2010, Syngenta presented itself as an integrated company which offers not only seed, but also crop protection solutions. In an interview with Brassicas Today during the fair, the Regional Head of Vegetable Seeds in EAME, Michael Kester, highlighted the importance of innovation and outlined how Syngenta aims to build a knowledge base on crop protection, biological control, seeds and resistances in order to contribute to sustainability.
Q. What are your expectations of Fruit Logistica 2010?
A. There is no doubt that this is a top fruit and vegetable trade fair, so attendance is a must. We are a seed company, but there is an increasingly close relationship between seeds and food. We have observed that our new varieties have to be consumer oriented and not producer oriented.
Q. What are the main objectives behind having a stand at the fair?
A. Our objectives are to meet people, including our customers, to listen to the world, to pick up new ideas and trends, and to take note of people’s demands. All this opens our eyes to new concepts and new ideas.
At Fruit Logistica 2010 we have changed our approach: S&G and crop protection have joined forces, making us an integrated company.
We have introduced this new approach this year and it reflects our philosophy. We aim to build a knowledge base on crop protection, biological control, seeds and resistances in order to contribute to the need for sustainability.
Logically, zero residues do not exist, but by combining the best of genetics, biological control and chemical control, it is possible to attain the lowest residue levels. This is what we have in mind. It is not an easy task and it will take some time before we can really say this is the solution.
“More demand and less production could help product pricing enormously”
Q. In your opinion, what are the key topics to be addressed at Fruit Logistica 2010? Recession? Sustainability?
A. I don’t think the recession has a high profile at this event. The entire fruit and vegetable industry is having a tough time, but volume is going well.
This year will be a little better for the producers again, because plantation acreage has decreased slightly, and Eastern Europe, where there was a big drop in demand for imports last year, is already opening up again and importing more. So a little more demand and a little less production could help product pricing enormously.
Q. What would be the best strategy for the fruit and vegetable sector in 2010?
A. As always, you have to produce what is needed and market your products better. It is unbelievable that the only part of the supermarket that has no brands is the vegetable department, while there are lots of brands for every other product. Ultimately, toilet paper is toilet paper, but perhaps there are 20 brands! In the vegetable department, where there are real differences in taste and usability from one product to the next, there are no brands and this leads to confusion. So I think branding and better interaction with the retailer is absolutely necessary for the future. This is what I talked about during the forum on the partnership of all the players in the chain. More information about Michael Kester conference
Q. What importance do you attach to innovation?
A. In the end, if you offer the same as yesterday, the result will not be as good as yesterday. Innovation is a driver behind vegetable growing. It always has been and it always will be.
Innovation can also involve addressing the needs of the chain. For example, shelf life is of increasing importance to waste management in the chain. By improving shelf life, we can make a big contribution. In the case of brassicas, the varieties are compared with each other using the yardstick of the percentage of marketable heads, and the higher your variety’s marketable head score, the less waste you are producing in the field.
These are important aspects in which innovation plays a key role, even though the consumer may not be very aware of it.
Let us take the example of our Topres® Clubroot resistance. This has had an enormous effect on the marketable heads of cabbage crops. It really is a big innovation for the producer, but one that is invisible to the consumer. It is a very useful development, because it makes production very efficient and more profitable, since it reduces waste and financial loss.
“We are better equipped to offer all that is needed in a sustainable way”
Q. What will be the future trends in innovation?
A. They will appear in many parts of the food chain. For the producer, the trend towards mechanisation will continue. The trend towards food processing will also gather speed. More and more vegetables are now being processed and sold in bags and other ready to eat formats. The food processors obviously have very different requirements in comparison with the purchaser of whole vegetables in the supermarket. Again, it is all about reducing waste.
The consumer will increasingly demand more taste and flavour and better texture, as well as greater convenience for snacking and easy-to-prepare foods. I believe that we at Syngenta now have the complex trait and breeding technologies that will enable us to offer most of today’s demands through new, attractive varieties, while ensuring sustainability.
“Innovation and competition go hand in hand, with speed an important factor”
Q. So does this mean that the role of the breeder will acquire more importance in Europe?
A. Innovation is closely related with the quality of the breeder’s work, and this is where a difference can be made. Nowadays, breeders need to apply the most advanced breeding technologies and to understand everything about vegetable production. But they also need to understand the market. They must pinpoint the specific product profile that is needed before they begin their work.
If two more generations have to pass before a result is achieved, of course this is too slow. Innovation and competition go hand in hand, with speed an important factor.
Q. What is your assessment of fresh produce consumption in Europe at the moment?
A. In general, many producers in Europe are growing a little less and will start a little later this year, which will have an effect on production volume. So we may not see any growth in volume this year, with the possibility of a 1 to 2 per cent decrease compared with last year.
In Eastern Europe, where demand for vegetable imports fell 50% last year, imports will recover, perhaps not completely, but if a return to 75% of the level of 2008 is achieved, this would be satisfactory.
This increase in demand combined with a little less production could really help product prices, which have been too low for producers. It cannot be denied that 2009 was a very bad year for all producers.
Q. In your opinion, what is the overall outlook for the European produce market in the future?
A. In general, I think we will see some growth in consumption over time, with less volume perhaps, but with an increase in value.
In the area of resistance, there is a lot we can do to make production more sustainable. And we can also do a lot more in the area of taste and texture and all aspects related with the consumer experience. This is what creates more value, especially in the supermarkets.
Q. What are Syngenta’s main objectives for 2010?
A. First of all, we will have to operate very prudently. During 2009, a poor year, the risk of providing loans increased, so we will also have to take care this year. Internally, I hope that we will be able to progress from being a company that excels in product marketing to become a truly marketing-led organisation, one that has both a sharper focus on consumer and customer segmentation and the capacity to directly pinpoint the right customer for our products through the right channels.
Q. What do you believe is the best strategy to combat recession?
A. Producers should really concentrate on what they are good at. And they should try to form a partnership with their customers, the trader/retailers, in order to secure a significant part of their income, because without this, they could find themselves in a difficult situation.
S&G Brassicas Today - February 2010
