Opinion: Europe First?

Market isolation or any form of economic nationalism has never been successful. Great civilisations grew on the basis of strong communication, logistics and world trade.
Brexit is once again proving that folding back on your own does not automatically mean everything runs better.  It takes two to do international business.  Supply and demand need to find each other. The fewer the barriers, the smoother the process. This is especially relevant in the world of food and drink where the just-in-time principle is crucial. Above all in fresh products, administrative and logistical bottlenecks are to be avoided.  It’s often the case that people only realize what the value of a strong relationship is once it is broken.  What was taken for granted has now left a big hole.
Growing exports to the other side of the world is tempting.  For European companies it sounds exotic and  prestigious when you supply markets like Brazil, China or the United Arab Emirates. But does it sufficiently supply growth and profit?  Is your brand being noticed, can you achieve a decent market share? Often the business is limited to simply being present and shifting boxes.
International development is a process.  A step by step approach delivers the best results. The phase in which your international business sits should define the next export market.  Too often companies opt for quantity of markets instead of quality of sales.
Sustainability is high on the agenda.  The Covid pandemic and the climate debate are the new catalysts in this.  The golden era of globalisation is clearly over.   Local has become the new normal.  The consumer reflex towards local buying is less of a patriotic motivation, more the result of a growing consciousness of a shorter supply chain.  Do we need to source chicken from Brazil or mineral water from Japan?  How far does food need to travel?
Taking this all into account, now is the right moment to explore export opportunities nearer to home.  Identify a large economic region with limited administration and barriers. It happens to exist already. Food and drink companies should make maximum use of what the European Market was initially created for.  The mission should be to find clients within Europe, to get closer to the European consumer and to develop your brand carefully.  Simply spoken, to take a more focused approach. The EU is one large economic environment with a level playing field, albeit a patchwork of eating cultures and markets.  What has happened in 2020, what we have learnt from Brexit and Covid 19, should be a kick-start for the EU. European food and drink companies should explore opportunities far more in markets on their doorstep. And yes, British companies should still be part of this journey, as should the UK market.  Great Britain remains one of the most interesting export markets for European producers. The UK food and drink industry is known for its innovation and highly skilled manufacturers.  Everything should be done to make sure that European consumers can still enjoy British products and that the UK keeps on sourcing from mainland Europe.
Once those first steps have been taken and export foundations built, then perhaps the reach can be extended and continents further away can be in your sights.  Europe the new local?

Philip Horemans
Chairman
Green Seed Group