Though the array of food products, including many new culinary creations, showcased at the recent Fancy Food Show in New York was appealing, the large turnout of exhibitors and visitors, particularly from countries in Asia, also discussed in private conversations the effects of the Red Sea turmoil on exports resulting from higher freight costs and longer delivery times.
Read also: Navigating the Long-Term Consequences of the Red Sea Crisis for Retailers
There were over 2,300 exhibitors from 56 countries spread across 29 international pavilions representing Africa, Europe, North America, South America, and the Oceana region. Spain was this year’s “partner country”, but there were also very large exhibitor contingents from Italy, Portugal, Tunisia, Morocco, etc.
The Specialty Food Association (SFA) which organizes the food show, is keen to enhance international participation so that” foreign buyers can establish business with U.S. importers and also U.S, companies can interact with foreign buyers at the show”, according to SFA spokesperson.
Dakir Berrada, the founer/owner of Noor Fes, an olive oil-production company in Fes, Morocco, told the Global Trade that this facility produces organic premium extra virgin olive oil, using fine Moroccan picholine olives grown on the company-owned farm.
“Our picholine olive oil varieties have won awards at international olive oil competitions. We have been exporting to Belgium, Scandinavia, etc. but in the U.S. our products are being launched at the Wholefoods with its wide network of some 400 stores in the U.S.,” he said. “Our organic extra virgin olive oil was one of the five best olive oils chosen at the New York Fancy Food Show in 2023. Indeed, we like to call our product olive juice rather than olive oil. Our U.S. office is located in Delaware.”
Trying to explain the sharp rise in olive oil prices, Berrada said: “… prices of other edible oils have risen higher. Extreme temperatures have affected olive crops in the past two years. But consumers do understand …” he said, adding that there are two kinds of olive oil found in the U.S. market, one being the generic kind, a blending which is of average quality, while the other one is of a higher quality and commanding a higher price. “Our product is of higher quality … it is FDA certified and is organic. Since we have an economy of scale, our prices are competitive. Thanks to our U.S. distribution office, the buyer can get shipment almost immediately. The Red Sea turmoil does not affect our shipments since we ship directly from Casablanca in Morocco to our customers in Europe and North America. The value of our exports is about US$ 15 million to 20 million,” he said.
Turkey’s large exhibitor contingent showcased various products, including olive oil. Fatih Avan, Assistant General Manager of Verde Yag Besin, an Izmir-based olive-oil company which has been participating at the NYFFS since 2000, observed: “North America is an important region for international olive-oil producers. This year we hope to increase our global exports to US$ 200 million, up from last year’s US$ 120 million … we export to 55 countries, including the U.S.,”
But Bekir Sari, Verde’s export sales and marketing director, noted that shipment time to the Far East had doubled – from 35 to 75 days, requiring vessels to sail round the Cape of Good Hope. Freight costs have doubled, in some case, even tripled. The U.S. market is the fastest growing market for olive oil. His company is considering setting up a plant in the U.S. because “North America is overall a promising region inherent with growth potential. Being an important part of a healthy diet, olive oil’s nutritional properties appeal to the increasingly health-conscious American consumer,” Sari said.
But one novel food item – chocolates made of camel milk – could become visible on the shelves of all U.S. mainstream supermarkets and specialized stores, as some pundits are predicting. Al Nassma Chocolate LLC, based in Dubai, has been trying to penetrate the world markets, highlighting camel milk as rich in nutrients.
Al Nassma, which showcased its range of camel-milk chocolates at the NYFFS, is a joint venture between the Dubai Government and Austrians and Germans, said that camel-milk chocolates are known around the world. In an interview with Global Trade, the company’s general manager Martin van Almsick said that camel’s milk is already available in supermarkets in the same way as cow’s milk is.
“Camel’s milk is low in fact but high in minerals … Al Nassma produces about 100 tons of chocolates a year … since 2009 we’ve been exporting to Japan, Europe, etc. We see considerable interest on the part of buyers, retailers, importers, etc. We import cocoa beans from Togo and other African countries. Dates are already in big demand in the U.S. and acquire added nutritional value in camel-milk chocolate,” van Almsick explained.
There are camel dairy colonies in the Middle East, including Camelicious in Dubai and the Al Ain Farms in the Abu Dhabi, the UAE capital.
Southeast Asian exhibitors also showcased a variety of products, including coffee, candy, organic sugar, ginger candy, etc. Indonesia’s trade attache in Washington DC, Ranitya (Adis) Kusuma Dewi, told Global Trade that Indonesia’s food exports to the U.S. amounted to $ 5 billion of the total exports of $ 28 billion last year, with food exports up 20% over 2022. “Our coffee is of many varieties, depending on where it is grown … we have received some good business responses,” she said.
Datuk Aria Putera Ismail, the CEO/Group President of Malaysia-based SME Bank Group, a state-owned bank promoting the SME sector, with funding from the Ministry of Entrepreneur and Cooperative Development, explained: “We provide SMEs training and financial services … the funding is used to explore new markets … our 11 SME exhibitors at the show produce snacks, beverages, spices, etc. The exhibitors have received business enquiries at the show,” he said.
But he said that some of the prices of products exported had risen sharply, also because of longer shipping schedules.
The products of Julie’s Mfg. Sdn. Bhd., a leading Malaysian biscuit company, which was independently participating at the show, are already marketed in many Asian ethnic supermarkets, but as Martin Aang, director, said he was trying to market under Julie’s brand in the mainstream supermarkets, many of which sell his products under U.S. brand names. “We had a good last year but freight costs rose sharply due to longer shipping routes,” he said. Julie’s, with $ 100 million turnover, exports to over 90 countries.
