Greek food producers look toward foreign markets

Tammo Hintz had just made the trip from Basel to Litochoro, a small town in Greece’s northern regional unit of Pieria. However, the 50-year-old German did not seem at all tired. He introduced himself to the 35 local producers attending the 2nd Greek-German Food Forum on May 20-22, giving each a handshake and a business card.

Hintz was visiting Litochoro on behalf of a company that despite its name, Eurogroup, nevertheless proved to be the most sought-after contact during the three-day meeting organized by the Hellenic-German Chamber of Commerce with the help of the Central Macedonia regional authority and the Ministry of Administrative Reconstruction. Comprising a group of companies headed by the Rewe supermarket chain, Eurogroup has stores all over Germany and in 14 countries across Europe. Widely credited with boosting Spain’s food exports to Germany, Hintz has a likable character which has won him the trust of people from all walks of life, from high-flying businessmen to farmers.

Nine more firms came to Litochoro to look into fresh partnerships, including Henry Lamotte Food, a leading supplier for the food manufacturing industry and food trade, award-winning Globus and online stores that retail Greek foods and beverages, among others.

Despite the upbeat signs, the Greek producers appeared nervous ahead of their business meetings. Their main concern was that their small output would put off foreign buyers.

B2B talks

“We want to expand our range of imports to include fruit and vegetables from Greece,” Hintz told Kathimerini ahead of talks. “We put emphasis on the entire production process, from methods of cultivation to labor relations on the farm,” he said. “A small output can be channeled to the Balkan markets, where demand is limited and geographical proximity gives you a comparative advantage,” he said.

Back in the exhibition room, Yiannis Apostolidis, a winemaker from Kavala, was overseeing tastings. “Over the past six years, I have taken part in many events,” he said. “You can tell from the very beginning who is really interested.” This time, he had meetings with three importers. “One of them said he was looking for some quality Malagousia wine – and mine appeared to fit the bill. A second one was excited, but made no promises. A third one said that he did not plan to buy any.”

Apostolidis kept his cool. “Since 1981, I have worked very hard to improve. I am not planning on giving up,” he said as he offered me a glass of wine.

Hunting

Hintz met with several potential sellers. Speaking with three representatives from the Venus Growers Agricultural Co-op of Veria in northern Greece, the tone seemed to liven up. “When the German businessman found out that our annual production is around 10,000 tons, he seemed a bit disappointed, but I explained that we also work with other cooperatives, which raises our production to 80,000 tons,” said Christos Giannakakis. Venus has already struck a deal with Germany’s Lidl supermarkets. “The crisis and the Russian embargo forced us into action.”

“You never know when you’ll get lucky with hunting and love,” he said after the end of a B2B session. “It’s the same with exports.”

“We held talks with Lamotte, which was interested in our fruit preserve, while Globus was attracted to the quality and myth that characterizes our product,” he said. “We didn’t just happen to name our cooperative after Venus.” A group of peach producers, meanwhile, left for a meeting in Veria with executives from the UK’s Tesco and Asda supermarkets. Those talks have been in progress for a year, while the Greeks have already signed a deal with the Scandinavians.

“Greek doctors will not feel homesick this summer. In July they will be eating our peaches in Stockholm,” Giannakakis said.

Achilles heel

We breed animals. Our pork has been designated Protected Designation of Origin (PDO) status. We process meat and we make 100 percent organic sausages,” said Noa Fischer, sales manager for the organic and gourmet products of the Schwabisch Hall producers association. “To make our sausages we need spices that are not available [in Germany], which is why we have started to import from certified crops in India, the Serbia-Hungary border, and Zanzibar.”

The impressive overtures made by Hohenlohe-based organic producers derive from the good level of cooperation between them. “The cooperative was established in 1988 by eight people. Today we number 1,450.” This is one of the many success stories that one could hear in Litochoro. Ironically, cooperation is Greece’s Achilles heel.

The issue generated a lot of interesting discussions given that the German market is a magnet for Greek producers. Food and beverages comprise the country’s second-biggest export, with 15.3 percent, while Germany absorbs 6.5 percent of Greek exports. “I believe that because of their relatively small plots of land, Greeks need to put emphasis on quality, a factor that is high among the priorities of German consumers,” said Athanassios Kelemis, general manager of the German-Greek Chamber of Industry and Commerce. After helping to organize 121 B2B talks in Litochoro, Kelemis is already making plans for the next food forum on Crete.

Anuga

Meanwhile, Greek producers and state officials are working together ahead of Anuga, the world’s largest and most important food and beverage fair. The event, which will take place in Cologne in October, is expected to draw some 6,700 producers and 155,000 visitors from 187 countries.

“So far, 120 firms have signed up for the fair,” said Christos Staikos, chairman of Enterprise Greece Invest & Trade, formerly known as Invest in Greece, which has also taken over the responsibilities of the Greek Organization of External Trade. “On top of a 2,315 sq.m. stand, we have also hired a specially designed tasting room.”