-',C., USDA/l;'AER~210 BRITISH MARKET FOR U. S •. FOOD EXPORTS ,. /H. ;':~CNITT ECONOMIC RESEARCHSERvrQE, WASIUNGTON, DC. INTERNATIONAL ECONOMIC, SDIV. JAN 85 49P 2 8 11111 . "'" 2.5 I 0 :: 3 2 • D~ 11111 . I I Sol Btl 111F6 I I I ~ ~ I~ 2.0 I . tJ~~ 111111.8 111111.25 111111.4 11111 1.6 PB85-166031 British Market for U.S. Food Exports (U.S.) Economic Research Service, Washington, DC Jan 85 I1--------_______I1 __'!III:.·IIItIII\:==-===: ::_1 u.s. Department of Cammerce National Technical Information Servk:e NliS~ ~!~02~n~.I~OI~~~~~~~~~~~~______________-=~12~__~______~~~~~~~;N;-____"___ 1 REPORT DOCUMENTATION 1• REPO~2~' 12. 3. Recipient'. Accession No. PAGE FAER ~~--TH--'e--ar.-.d--su-b-tn-,-~----------~---------------·--------------______________ ----~~~R~e~~rt-D-a-t~e~~~~~~~~~E;~l;; X:..:) n3 .1 ~ The British Market for U.S. Food Exports January 1985 7. Author(s) Harold A. McNitt I. Performin. O,.anlzation Rept. No. 9. Perform/n. Organization Name and Addres. FAER-210 International Economics Division 10. Proj6<:.'tlTa.k/Wortc Unit No. Economic Research Service U.S. Department of Agriculture 11. Contract(C) or Grant(G) No. Washington, D.C. 20250 eCl (G) 12. S~nsorfn. O....nlzatlon Name and Addreu 13. Type of Re~rt & Period Covered 14. 15. Supplementary Notes j. 16. AbatrKt (Limit: 200 WOrds) Several U.S. food products are or could be good sellers in the British market. They include variety meats, edible tree nuts, peanuts, dried veeetables, dried . and fresh fruit, selected grain products, and rice. These products are promising despite the problems posed by the European Community's import barriers and by heavy competition from Mediterranean and developing country suppliers, Changes in the British rood marketplace, age distribution, household size, per­ sonal disposable income, and 'lifestyle have sharply altered British patterns of food demand, enhancing interest in highly processed convenience foods and fresh produce. 17. Document AnalYlI.. a. Dncrfptors Economic analysis Bxports b. Identlflers/Open·Ended Terml United Kingdom British market U.S. agricultural exports Prices as of 1/1/84 Food marketing Paper: Food distribution Fiche: $4.50 c. COSATI Field/Group 02 B; 05-C Cost codes are: for Paper II. Avellabllity Statemen; and ADl for Fiche N.ational Technical I'1formation Service It. Security CIa.. (Thl. Report) 21. No. of Pages 5285 Port Royal Road, Springfield, VA 22161 Unclassified fl8 20. Security CIa.. (ThIs Pa.e) 22. Price (5.. ANSI-Z39.18) Unclassified See box 17 See InlJtruct/ona on R..,.r.. OPTIONAL FORM 272 (4-7n (Formerly NTIS-3S) Department of Commerce P B85-16 6031 ~w'~~ru;;,\ United States ~ JI Department of W" 'Agriculture The British Market for Economic Research Service U.S. Food Exports Foreign Agricultural Economic Report Number 210 Harold A. McNitt REPRODUCED BY NA TIONAl TECHNICAL INFORMATION SERVICE u.s. DEPARTMENT OF COMMERCE SPRINGFIELD, VA. 22161 Sales Information Additional copies of this report can be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Ask for The British Market for U.s. Food Exports (FAER-21O). Write to the above address for price and ordering instructions. For faster service, call the GPO order desk at (202) 783-3238, and charge your purchase to your VISA, Master­ Card, or GPO Deposit Account. Microfiche copies ($4.50 each) can be purchased from the Identification Sec­ tion, National Technical Information Service, 5285 Port Royal Road, Springfielcl VA 22161. Ask for The British Market for U.S. Food Exports. Enclose check or money order, payable to NTIS. For additional information, call the NTIS order desk at (703) 487-4780. The Economic Research Service has no copies for free mailing. Note Use of company names and company product trade names in this publication is for description only and does not imply endorsement by the U.S. Department of Agriculture. i -:, r~. t . The British Market for u.s. Food Exports. By Harold A. McNitt. International Economics Division, Economic Research Service, U.S. Department of Agriculture. Foreign Agricultural Economic Report No. 210. Abstract Several U.S. food products are or could be good sellers in the British market. They include variety meats, edible tree nuts, peanuts, dried vegetables, dried and fresh fruit, selected grain products, and rice. These products are promising despite the problems posed by the European Community's import barriers and by heavy competition from Mediterranean and developing country suppliers. Changes in the British food marketplace, age distribution, household size, per­ sonal disposable income, and lifestyle have sharply altered British patterns of food demand, enhancing interest in highly processed convenience foods and fresh produce. Keywords: United Kingdom, U.S. agricultural exports, food marketing, food distribution, British market Acknowledgments The author thanks Robert Frye and Reed Friend for their suggestions and editorial comments. The author also thanks the Foreign Agricultural Service's Market Development staff for providing statistical information as well as assistance in making contacts in the United Kingdom. The author is indebted to agricultural and marketing specialists at the American Embassy and the U.S. Agricultural Trade Office, London, and to British specialists with whom discus­ sions were held. A meeting with John Beaumont of the Institute of Grocery Distribution in Watford, England, provided much useful information concerning current British developments. Charles Handy, an Economic Research Service specialist on U.S. food marketing, offered many helpful suggestions. Pamela Palmer provided clerical assistance. Washington, D.C. 20250 January 1985 ''''7' ,.' Glossary reference price. The reference price is generally calculated from an average of certain EC market or African, Caribbean, and Pacific (ACP) countries. A producer prices over a period of time. group of approximately 60 developing countries with which EC members have historic ties, including former Consumer Cooperatives. Organizations engaged in colonies. Under the terms of the Lome Convention retail trade that operate on cooperative principles. (see definition), mar,y EC agricultural imports from the Among these principles are ownership and control of ACP countries are given preferential tariff treatment. the enterprise by those who use its services; an equal voice in decisionmaking for each member of the co­ Agency arrangement. See definition for "Buy firm." operative; and the return of any profits (called surpluses) to the members. Nonmembers may do re­ Bar code. A symbol, printed on a product's package tail shopping at cooperative stores but cannot par­ i or container, that uniquely identifies the product. In ticipate in decisionmaking or receive any dividends stores equipped with electronic checkouts, a laser from the enterprises' surpluses. beam reads (scans) the bar code and transmits the in­ formation to a computer. The item's description and E-number. A code number assigned by the EC to each price, stored in the computer, are printed on the food additive approved for use within the EC The customer's receipt, and all items are totaled for pay­ E-number may be listed on a product's label or con­ ment. The system is also used for inventory control tainer instead of the additive's full chemical name, if I and re-ordering. desired. Also referred to as EEC-number. ! Buy firm. An import company buys firm (or buys on European Community (EC). own account) by paying for the imported product and Original six members: Members since January 1973: assuming ownership. The product is then normally Belgium Denmark sold to a wholesaier, retailer, or other purchaser. This Federal Republic Ireland contrasts with an agency arrangement, in which the of Germany United Kingdom importer receives a commission for handling and/or France selling the product but does not assume ownership. Italy Member since January 1981: Luxembourg Greece Cash-arid-carry wholesaler. A type of wholesale enter­ Netherlands prise in which the buyer visits the premises, pays for goods by OJ':. (or perhaps by certified check), and food hall. An area within a department store in which transports the 'purchased goods to the buyer's place of a wide variety of foods is sold, often focusing on business. Cash-and-carry wholesale firms permit only gourmet foods, wines, and imports, and frequently in­ bona fide i'etail, food service, or manufacturing firms cluding one or more restaurants or sandwich shops. to buy from their shelves; individual consumers are excluded. Hypermarket. In the United Kingdom, a store with 50.. 000 square feet or more of selling area on one Common Agricultural Policy (CAP). The unified farm floor, offering a wide variety of food and nonfood policy applied by member governments of the EC The items. CAP deals with agricultural prices, structural improve­ ment of agriculture, and both internal and external Income elasticity of quantity purchased. A measure trade in farm products. of the adjustment consumers make in the amount of goods they purchase as their incomes change. Common External Tariff (CXT). The unified system of customs duties applied by members of the EC to im­ Independent grocer. A grocery enterprise with fewer ports from outside the EC than 10 outlets, but excluding consumer cooperatives and department/variety store enterprises. Compensatory tax. An import levy applied by the EC to certain fruits, vegetables .. and wines when the im­ Lome Convention. An agreement, signed in 1975, ported produce's price falls below a stipulated which spells out trade, industrial, financial, and ii technical cooperation arrangements between the EC and the African, Caribbean, and Pacific countries (see Retail cooperative. A group of retailers who have definition). The Lome Convention includes tariff agreed to purchase some of their supplies in common preferences for specified ACP exports to the EC, many and to participate in other joint activities. In practice, of them fruits and vegetables. the retail members are independent grocers (see definition).