English Gulfood Exibition 25-28 Feb, TN 23Mar13
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Saffron sector at Gulf Food Exhibition: achievements, results and lessons learned Kabul, March 2013
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Transcript of English Gulfood Exibition 25-28 Feb, TN 23Mar13
Saffron sector at Gulf Food Exhibition: achievements,
results and lessons learned
Kabul, March 2013
Agenda
• TAFA support to saffron sector• Gulf Food Exhibition background• Selection of companies• Searching for potential buyers • Preparation work • Activities during exhibition• Results and achievements• Challenges and findings• Follow up activities
TAFA support of saffron sector
• Implementation of recommendation of saffron sector study developed by STTA
• Supporting in negotiations with potential buyers• Access to finance through financial institutions• Information dissemination on certificate requirement
by international buyers• Assist Afghan saffron companies in searching new
markets by attending exhibitions, b2b meetings, etc.
TAFA approach to exhibition
• Identify a relevant exhibition in the region• Select space in hall, which can bring participants• Make sure design and decoration will attract
customers• Prepare information material• Contact potential buyers prior to event• Offer some products for taste or some sweets• Follow up with potential buyers to remind about
product
Gulf Food Exhibition Background
• Gulf Food Exhibition (www.gulfood.com) held in Dubai World Trade Centre on 25-28 February 2013
• World’s biggest annual trade exhibition for the food and hospitality industry
• 110 country pavilions, 4,200 exhibitors and around 70,000 trade visitor for the 2013 event
• Show has expanded by 13% in size to offer a record 113,398m² in exhibition space
• Provides exporters, buyers, exhibitors, and visitors with new business opportunities
• Afghanistan has been participating since 2009
Zabeel Pavilion
USAID Projects Initiatives• FAIDA suggested TAFA and CHAMP to participate• TAFA, CHAMP and FAIDA decided to sponsor a rent of
space, design and decoration of Afghan Pavilion • All expenses were equally shared by all three projects• TAFA developed a Scope of Work in order to get
approval for participation • Total 27 companies were identified by USAID projects • USAID conducted an orientation program for selected
companies • A company for design and decoration of Afghan pavilion
was identified
Afghan Pavilion was one the busiest spaces
Rent of space, design, decoration, etc.
• TAFA conducted all negotiations and payment for rent of space
• CHAMP conducted all negotiations and payment for design and decoration
• TAFA provided with pictures and other material for design and decoration
• CHAMP met with exhibition management in Dubai to follow up on negotiations
• FAIDA provided with input on design
Afghanistan Pavilion design and decoration
USAID Projects covered• Rent of space• Design and decoration• Printing of business
directory and invitation cards
• Rent of microbus to visit supermarkets
• Visa cost
Afghan entrepreneurs• Air-tickets• Lodging• Meals• Transport
Afghan Pavilion
Afghan saffron companies
• A list of saffron companies received from EPAA• EPAA recommended:
– Almas Saffron, – Mahtab Saffron, – Afghan Red Gold– Afghan Saffron.
• TAFA contacted all of the companies in the list• Some companies refused because air-tickets and
hotel should be covered by selected companies
Meeting with potential buyer
Final list of Afghan saffron companies
• Afghan Red Gold• Almas Saffron Production Company• Heray Saffron• Ansaar Saffron• Benazir • Ghorian Association • Dawi Oil
Saffron and dried fruits display
Criteria for selection
• A registered company or association• Able to pay the cost of travel and accommodations• Company representative must be over 18 years old• Previous experience in export of saffron or have a
potential to export• Have enough stock of products for export• Well-known company with good reputation
Discussing and calculation the price
Name of CompanyContact Details(Name of focal point, address, email, phone number, web site if any) 300 words onlyDescription of CompanyYear Established / Number of EmployeesProductsExports (Countries)Quantity of Exports (2012)Quantity Available for Exports (2013)
Traders Information Sheet
Meeting with potential buyers
Searching for potential buyers• TAFA contacted more than 50 international saffron
buyers via email or telephone– List of potential buyers was found from exhibition directory
• TAFA sent email to all potential buyers describing unique features of Afghan saffron
• TAFA mentioned awards received by Afghan companies at international events
• TAFA contacted traders at Spice Souk and companies actively working in Dubai – Companies were found through internet search
• TAFA invited around 100 to visit Afghan Pavilion
No Company's Name Hall/Stand Country Contact Information
RelevanceEmail Telephone
1A G Exports Hall: Zabeel Pavilion Stand: Y-D55India
2Aaksh Beverages Pvt. Ltd Hall: Zabeel Pavilion Stand: X-A47 India Low
3Abido Co. for Trade & Industry Hall: 7 Stand: C7-8 [email protected] 00961 5 603 493/4
High
4Acme Fate International Ltd Hall: The Pavilion Stand: T-K18 Chinamail:[email protected]
0086-532-82827151
High
5Adamexpo Hall: The Pavilion Stand: T-A13 Sri [email protected] +94 11 4608500
High
6Adamjee Lukmanjee and Sons (Pvt) Ltd Hall: The Pavilion Stand: T-A7 Sri Lanka [email protected] 00 94 11 244 54 21
High
7 Adani Food Products Pvt. Ltd. Hall: Zabeel Pavilion Stand: X-D55 India
8Adonis Spices Hall: 7 Stand: D7-24 Lebanon High
9Agrim Industries Ltd Hall: The Pavilion Stand: T-B24 Indonisia [email protected]+62 - 61 - 4557100
High
10Agrozan Commodities DMCC Hall: Shk Saeed 2 Stand: S2-G30 United Arab [email protected] + 971 4 449 40 20
High
11Al Ahram Herbs Hall: 7 Stand: E7-33
Egypt [email protected]
High
12Amar International Hall: Zabeel Pavilion Stand: X-B76 India
13 Amber Packaging Industries LLC Hall: Trade Centre Arena Stand: S-C20 United Arab Emirates [email protected]
+971 6 5437543 High
14Aoun Food Company Hall: 7 Stand: E7-13 Lebanon [email protected] (961) 4 928 759 High
15Arab & India Spices LLC Hall: Shk Saeed 2 Stand: S2-B2 United Arab Emirates [email protected]
+971 4 2251 390 High
16Arar Trading Company LLC Hall: 4 Stand: A4-31 United Arab Emirates ( No Email) 971 4 22 62 450/ +971 4 22 62 244
High
17August Toepfer & Co. / Emco International Hall: 7 Stand: G7-4 Germany [email protected] +49 (0)40 3 20 03-0
High
List of spice companies
Potential buyers
Marketing info and selection of companies• TAFA designed a business directory, and other marketing materials, which has:
– Picture of business operation– A short description about the company and its products– Contact information
• TAFA designed invitation cards• EPAA in cooperation with TAFA selected 8 saffron companied to participate at event • FAIDA and CHAMP identified 20 companies in dried and fresh fruits, juice production
Invitation cards
Preparation for exhibition
• TAFA developed agenda and planned the following:– Visit other companies interested in buying saffron– Visit to Spice Souk Market– Visit supermarkets together with FAIDA exhibitors– Meeting with companies contacted prior to exhibition– Check the prices for saffron offered by other countries
• TAFA met with selected saffron companies in Herat and discussed the procedure and approach
• TAFA arrived on 23 Feb for preparation work and preliminary meetings with potential buyers
Mass-media coverage
• TAFA contacted several TV companies prior to event • Shamshad TV Company has an office in Dubai and
agreed to participate• TAFA contacted a professional photographer for covering
of an inauguration ceremony• TAFA had photographic coverage all days of event• Shamshad TV Company broadcasted an inauguration
ceremony and interviews with Afghan entrepreneurs to Afghanistan and Gulf countries
• TAFA issued a press-release
Negotiations with potential buyer
Agenda was developed before the Gulfood Tentative Itinerary & Agenda for Gulfed Exhibition and Commercial Mission to UAE
Date Time Activity Person(s) in ChargeFriday 22 -Feb-013 Evening Departure Kabul to Dubai Rouzbeh Shure
Saturday 23-Feb-2013
MorningVisiting all traders in Dubai and see who is potential dealer (Caspian company,Golpeech Saffron, Saffron Interactive, AFME,WWMarketing,WIDE ANGLE GERNAL TRADING LLC ,negin ,sargol ,pooshal ) Rouzbeh Shure
Afternoon Spice Souk spice Market in Dubai get an over view of the market and discuss visits.
Rouzbeh ShureRouzbeh Shure Rouzbeh Shure
Sunday 24-Feb-2013Morning Set the products in Pavilian
Rouzbeh And the traders setting up at the both
Afternoon Revisit the spice market continue exploring potential buyers Rouzbeh /TimurEvening Revisit the list and set up meeting with companies at the Gulf Food Rouzbeh
Monday 25-Feb-2013 Morning & AfternoonParticipation in the Gulfood Inauguration and Inauguration of the Afghanistan Pavilion All the delegation
Tuesday 26-Feb-2013
Morning Group A Participation in the Gulfood TAFA/CHAMPMorning Group B Visit Spain and Netherland Pavilion TimurAfternoon Group A Participation in the Gulfood FAIDAAfternoon Group B Visit spice Market meet with potential buyers Rouzbeh
Wednesday 27-Feb-2013
Morning Group A Participation in the Gulfood CHAMP/ TAFAMorning Group B ( meet with Baby Saffron) TimurAfternoon Group A Visit Spice Market Rouzbeh ShureAfternoon Group B Meet with True value Export Timur
Thursday 28-Feb-2013
Morning Group A Participation in the Gulfood FAIDA/TAFAMorning Group B Meet with AFME and Pina Saffron TimurAfternoon Participation in the closing ceremonies of the Gulfood All delegationEvening Meet with potential buyers sign the agreement All delegation
Friday 1-Mar-2013Morning Collecting all goods from the booth, All D + F/T/CAfternoon Clearance and Final exit of the pavilion at the Gulfed site All D + F/T/CEvening Return to Kabul Rouzbeh and the Traders
Visiting of Spice Market in Dubai
• TAFA visited the spice market on 23 Feb• TAFA met with a number of companies from France,
India, Pakistan and Iran• TAFA discovered the price was getting down• Spice market is dominated and controlled by Iranian
companies• Iranian companies want to buy Afghan saffron at very
low price• Only one trader from Afghanistan is present at spice
market
Potential buyers of saffron
Activities during exhibition • Afghanistan Commercial Attaché to UAE inaugurated the
Afghan Pavilion• Design of Afghanistan pavilion was attractive with
compare to other pavilions • Afghanistan pavilion was one of the busiest places in
Zabeel Hall• Afghanistan pavilion offered dried fruits and nuts, juice,
cookies and saffron tea – all products made in Afghanistan
Inauguration of Afghanistan Pavilion
Meetings and negotiations• TAFA organized 20 business to business meetings• Afghan companies demonstrated quality of saffron
during meeting and negotiations• Saffron companies met with around 50 buyers who
expressed an interest in Afghan saffron • FAIDA organized visits to supermarkets for all
exhibitors• TAFA took saffron companies to visit Iranian and
Spanish pavilions for price and quality comparison• TAFA helped saffron companies search for equipment
for packaging of saffron
Meeting of Afghanistan Commercial Attaché and USAID
Marketing of Afghan saffron
• Afghan saffron was used by chef at his cooking show during the exhibition
• Free samples were distributed to other chefs and potential buyers
• Invitation cards were distributed to participants• TAFA visited spice and potential saffron buyers
companies and invited them to Afghanistan Pavilion
During the cooking show, the chef, Thomas Gugler, used Afghan saffron
Potential saffron buyers# Company's name
Contact person
Office in Country Status
Region of operation
Kilograms/annually
Companies in discussion with
1 Verdu Canto Partick
Carabine Spain
Discussion is first shipment of 15 kg after
and to continue Spain 1000 Afghan Red Gold
2Durvesh
International
H. Obaidulah
DureshPakistan Karachi
showed and interest 50kg back per month
will send represntative to Afghanistan Europe 1000 Heray Saffron
3 Starlight ProductsGuillaume Delaunay France
Showed an interest need to follow up France 600
4Ibn Batuta
(Supermarket) UAEDiscussion is under
process UAE 250 Afghan Red Gold
5Orient Int'l Company
Martin Pupp UAE
He showed an interest is not sure about the
price Europe 100 Benizir Saffron
6 SaraswathiSwetha Exports India
Was interested will send representative to Afghanistan to check
the quality India 100 Benizir Saffron
7 AlimentaRoberto Meroni Italy
Is requesting for formal Quotation for
first consignment Italy 4 Heray Saffron
8Delta Flexi
SystamMahmoud Marouani Tunisia
was interested discussion under
process Tunisia 2 Heray Saffron
9European Delicacies
Gabriel Roschinsk
y Europe
Showed an interest need to follow up the
company is looking for small Quantity Germany 2
Heart Women saffron association
10Almandra Food
ltd GhsudaLebano
nShowed an interest need to follow up Lebanon 0 Ansar Saffron
11World Wide Marketing Syed Huq UAE
Showed an interest need to follow up UAE 0 Almas saffron
12 Al NukalyMhamoud
Al Said UAEShowed an interest need to follow up
Saudi Arabia 0 Ansar Saffron
13 GethaiAbdullah Alyahay Sodi
Showed an interest need to follow up
Saudi Arabia 0 Heray Saffron
14 KAVA NOIRShoukran
Al KishawyUAD
DUBAIshowed an interest need to follow up UAE 0
Total 3058
Meeting with potential buyers
Prices for saffron at exhibition
• Afghan saffron companies displayed their products at 3 sides of Pavilion
• Afghan saffron companies were charging from $2,500-$3,000 per kg
• TAFA visited Spanish and Iranian companies, where priced ranged from $1,400 for Iranian to $1,800 Spanish per kg
• After discussion with saffron companies, the price for Afghan saffron went down to $1,400-$1,800 per kg
• Iranian and Spanish companies offer a certificate and lab analysis of saffron
Spanish Pavilion
Achievements• Interest of participants in Afghan saffron• 14 companies expressed a strong interested in long
term relationship• Potential buyers admitted quality and organic taste of
Afghan saffron• Potential deals involving more than 3,400 kg of
saffron were discussed at the show• Afghanistan total production is 3,000 kg per year • Successful marketing approach in reach of potential
buyers at exhibition
Italian Pavilion
Results
• 2 contracts signed for supply of 60 kg with total value of $100,000
• 4 deals for supply of 1,550 kg in final stage of negotiations with total value of around $3 million
• 7 deals with good potential for supply of 1,808 kg with total value of $3.2 million
• Potential buyers are from US, Canada, Europe, India, Pakistan, Australia
Display of saffron
Findings
• Packaging: Afghanistan orders packaging from Iran. Once Afghanistan gets a contract from European countries, Iran might stop providing packaging.
• Price: Afghanistan provides 1% of world supply. The cost of production is higher than in Iran and India. The price at exhibition was higher than Iranian saffron.
• Certification: Only one company has FDA and ISO certificate.
• Marketing: Afghan companies should coordinate on developing a marketing strategy.
Meeting with potential buyers
Challenges• Afghanistan must follow good agriculture practices. This is important
because saffron is a food product. • Lack of knowledge of English by some exhibitors• Not all potential buyers are willing to travel to Afghanistan due of
security reasons• No strong coordination or market research among Afghan companies
on price. • Negative competition, some companies were “stealing” potential
buyers from each other• Some Iranian companies selling in bulk to companies in Europe,
where it goes under local company’s brand name• A number of certifications are required: ISO 2001, organic
certification, certificate of origin and certificates based on countries’ requirements (example FDA for USA).
• Too many companies in small space
Possible packaging for saffron
Opportunities
• Afghan saffron has a good quality and taste organic due to: – Climatic conditions are favorable for saffron farming – Land conditions are also favorable for saffron farming in
west and north parts of Afghanistan
• Labor cost in rural areas is not high• Sanctions on Iran affect sales of Iranian saffron• Europe, USA and UAE are looking to replace Iranian
saffron• Afghan saffron had a positive feedback from potential
buyers
Negotiations with potential buyers
Follow up activities• Afghan saffron companies need to pull resources together,
especially the smaller companies• Afghanistan companies should market its saffron emphasizing
quality and as an organic product• Need to understand the market better, contact major buyers• Build a web site for saffron companies• Afghan companies need their own packaging equipment for
saffron. • Certifications are essential. ISO and any specific certification
required by the country to which Afghanistan is exporting. • Because of interest of international buyers, quality and organic
taste are import to maintain• Afghan saffron is a new product in the international market and
needs to continue its effort to expand its market niche
Omaid Bahar juice display
Other follow up activities• Continue negotiations with international buyers• Conduct round table meetings to discuss the Gulf
Food and further development of saffron sector• Explore opportunities for B2B meetings with
companies in Spain, France, Saudi Arabia• Support Afghan companies in getting certification• Support Afghan companies in developing marketing
strategy and building a new brand• Support Afghan companies in identifying and
procuring packaging equipment
Negotiations with company from Spain
Round table meeting
• Results and findings of Gulf Food Exhibition• Introduce financial institutions recommended by FAIDA• Introduce contract farming concept by FAIDA Specialist• Encourage saffron companies to use good agriculture
practices (GAP)• Discuss implementation of recommendations• Discuss challenges of Afghan saffron companies on
international market
THANK YOU!!! ANY QUESTIONS?
