Procomer Publishes June Commerce News and Analysis

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PROCOMER published the June report on trends to follow for Costa Rican export companies.   Following is a summary of the news and analysis made available.

Spaniards Eat 10 Billion US$ en Seafood in 2010
Spanish house-holds bought a total of EUR 7,600 million worth of seafood in 2010, an amount that represents 11 per cent of their total expenditure on food, estimated at EUR 69,000 million.

This was highlighted by the head of Retail at Nielsen, Roberto Butragueño, in the framework of the second day of the XII Congress on Seafood Products, organized by the Spanish Association of Commercial Coding (Aecoc) in Vigo, between 31 May and 1 June.

While the preferred species remains hake, with 17 per cent of the total amount purchased, other resources are gaining importance in the diet of the Spanish population, such as panga (Asian catfish) and perch. Butragueño stated that young two income households and families with children were the fastest growing segment for seafood consumption

Significance for Costa Rican Exporters:
According to figures provided by TradeMap for 2010, Spain is the 3rd overall importer of seafood, behind the US and Japan.  Costa Rican exports for the first quarter of 2011 were more than US$32 millones, but Spain was only the 6th largest destination, 84% went to the US.  So exports to Spain represent a big opportunity.

Panama Leather Exports Rise
Since 2007 Panamanian leather exports have increased, benefiting hundreds of ranchers.  Official Panamanian statistics show a spike in exports with China, Taiwan, Hong Kong, Vietnam, Holland, Italy, Portugal, Malaysia & Indonesia being the principal destinations of skins which are used in the manufacture of shoes and upholstery.

Significance for Costa Rican Exporters:
Costa Rica leather is also a big industry. In 2009 & 2010 Costa Rican exports also grew, reaching US$16.2 millones & US$22.5 millones respectively, principally to China, Hong Kong, the USA, Italy & Indonesia. 

Panama estimates that for 2011 growth will be 40%, Costa Rican producers however may take advantage of free trade agreements that already exist with leather importing countries. 

Security Software Sales Increase by 12% Worldwide in 2010
According to statistics compiled by Gartner, the security software market reached 16.5 billion dollars in 2010, the company stated that key vendors keep expanding their product lines via takeovers and their sales through penetration of emerging markets, as well as the evolution of new products and technologies.

Significance for Costa Rican Exporters:
Costa Rican IT companies should take note of this market, either selling the service locally, or as a provider, or teaming with international companies to provide out-sourcing services and development.


True Natural Cosmetics Sunscreen NPA Certified
The 100 percent bio-based product line of sunscreens and self tanners received certification from the Natural Products Association, which guarantees to consumers that the product is natural.

The NPA is a non-profit organization, and there are four categories that make up the NPA standard; natural ingredients, safety, responsibility, and sustainability; and a product can only be labeled ‘natural’ if it complies with the four categories below.

Significance for Costa Rican Exporters:
With the emergence of natural cosmetics and other beauty products, NGOs and governments have developed regulations and guidelines regarding the promotion of these products. This is to guarantee the consumer that the products are legitimate.

In the US the NPA certifies products, whereas in the EU the COSMOS Guidelines are the standard. It is important for Costa Rican producers to keep up with these regulations and guidelines, so that they may enter sophisticated markets.  PROCOMER has produced a study on the organic market tendencies. (Spanish only)

Mexican Pineapple Invades US Market
Emilio López Turrent, President of The Mexican Pineapple Exporter's Association, said that the Mexican pineapple industry is preparing for a banner year in 2012, and is becoming an important industry in the Mexican economy. The pineapple consumption in the US was 808,000 tons in 2010, an increase of 14% compared to 2009.

Mexico mainly sends the Sweet Cayenne variety to the US, which is mostly used for food processing plants, since it is not as sweeet as the name would imply.  Which is causing the Mexican growers to switch to the MD2 variety, and is implementing marketing efforts to brand Mexican pineapple and inform wholesalers of the availability of sweet Mexican pineapple.

Significance for Costa Rican Exporters:
Costa Rica is the main pineapple supplier worldwide, during the first quarter of 2011 has placed over US$243 million, a growth rate of 5% as compared to 2009. The main buyers are USA (44%), the UK (15%) & Holland (12%).

However, according to TradeMap Mexico is the second place exporter to the US. This is very important for Costa Rican producers, who must maintain a watch on competing countries.  The conversion of the Mexican production and the coordinated marketing efforts should be something for Costa Rican producers to watch closely.

US Serves Up "My Plate"
The USDA introduced the My Plate logo this month, banishing the pyramid scheme to join other relics of the past, like papyrus. Apparently the pyramid was too complex for US tastes.  The plate is divided into 4 parts, with a glass of milk (skim milk) on the side. 50% of the plate is fruits and vegetables, 25% protien and 25% grains.  The plate is sprinkled with encouragement to drink water instead of soda pop, to enjoy the eating of food rather than eat a lot of food, and to eat less fatty foods.

Significance for Costa Rican Exporters:
As emphasized in past bulletins, companies exporting to foreign markets should consider the tastes of consumers and preferences. These types of initiatives have a goal, and a company that analyzes the possible success of these plans, will be able to stay ahead of the curve and offer consumers what they will want in the future.  PROCOMER made available a report on Processed Foods in the US in 2009. This report covers trends and niches in the US.