Development of wholesale and retail markets in Europe Challenges and opportunities Chandigarh, India 20-21 November 2012

Development ofwholesale and retail markets in EuropeChallenges and opportunities

Chandigarh, India20-21 November 2012


Agenda Importance of markets in Europe Purpose and definition of markets Advantages of markets Customer needs and marketing Goals for the management Historical development and parameters Lease contracts Provide competitive services Food safety Business economy


Torben Flinch, m.sc.agr.Business development, consulting and board of directors

Chairman and board member WUWM 8 years

Managing director Copenhagen Wholesale Market 9 years

Managing director Agricultural Advisory Company 7 years

Chief of board education Danish Agricultural Council 3 years

Consultant Cooperative Development 3 years

Agricultural adviser Economics and production 4 years

Farming 20 years


Importance of wholesale and retail markets in Europe

Wholesale markets – 21 EU countries

110 wholesale markets1 mill. employees42 bill. euro turnover p.a.40% of produce supply in Europe


Importance of wholesale and retail markets in Europe Retail markets – 21 EU countries

25.000 retail markets1 mill. employees450.000 retail traders40 bill. euro turnover p.a.


Purpose of wholesale marketsPromote food producers and wholesalers trade with professional buyers to strengthen their market position

and income by:Supporting rational tradeRent out space and logistic facilitiesProvide competitive servicesMarketing the market and the productsDevelop the range of goods, the buildings and the infrastructure


Wholesale market advantagesKnown conceptTransparency and high market informationCooperation possibilities for products, logistics

and salesNew business areas or products can be tried easy

and at low costsModern facilities to help increasing product qualityInspiration, knowledge, innovationAll Customer groups are includedCustomers, suppliers and competitors are close by


Customers want

Fresh products Large range of products Confident supplier relations High level of service Easy access Prices are not crucial(Investigated by Retail Institute Scandinavia 2008)


Marketing Customer investigations

what do tenants and customers want? Web

market information Posters

product information Campaigns

usage of products, cooking and healthy diet


Poster(example)


Goals for the management to support the actors on the market

Service minded through all our relations

Eventful at every visit

Diversity product range and business concepts

Efficiency logistic, common services and trade

Safety people, food, environment

Knowledge customers, society and politicians


Historical development of the wholesale/retail market conceptInfluence from external economic

and technologic conditions on markets

Structural development of producers, traders and retail supermarkets chains.

From small and many

Big, specialized and few


Historical development of the market concept - 1

1950 Old market places in the town center

1950 – 1970 Separation of wholesale/retailRelocation of wholesale markets

1970 – 2000 Development of wholesale markets

infrastructure, services and marketing


Historical development of the market concept - 22000 – now:

New owner structures public/privateRelocation or reconstruction

of wholesale markets (second time)Focus on logistic and food serviceDevelopment of retail marketsCollaboration between wholesale and

retail markets on competing the supermarkets


Development parameters - 1 Wholesale and Retail

from integrated separate and rebuilding collaboration

Productsfrom field processing

Price formationfrom auction contract

Tradingfrom cash and carry distribution


Development parameters - 2 Infrastructure and building

from market hall closed cool chains

Owner structure and managementfrom public private

Economic Modelfrom public service commercial business

Locationfrom town centre suburb


Lease ContractRent: fixed pr. m2 (inflation/regulation).

Service fee: tenants pay for services.

Reconstruction: if tenant stops the lease:

Obligation: to maintain and

reconstruct the space.

Termination: on termination of lease:

Compensation: if management needs the space for other purpose.


Competitive servicesAccess to efficient logistic facilitiesCommon opening hoursEntrance services and controlParkingWaste managementFork-lifts and gas servicesFood safety controlMarketingTenant association (involvement)


Food Safety

Guide to good practice for wholesale market authorities and managers within the European Union

Clean, cold and efficient


Guide to good practice for market managers - 1 Requirements for food premises Quality Control (htccp) Risks and responsibilities Water supply Cleaning Waste management


Guide to good practice for market managers - 2 Pest control Temperature control and ventilation Lighting Services Personal hygiene Training


Efficient logistic (example)


Business Economy Example, Copenhagen Wholesale Market 2012 estimate, mill. DKK (Private owned commercial company)

Income (turnover) 51,1 Deprivation - 6,1Real estate tax - 6,8Maintenance - 5,0Operating costs - 12,9Consultants - 1,8Administration costs - 7,9Finance (interest on loans) - 7,5Tax (income) - 0,8Result (Net) + 2,3


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Development of wholesale and retail markets in Europe Challenges and opportunities Chandigarh, India 20-21 November 2012