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Greek Consumers Get a Healthy Craving for U.S. Tree Nuts
By Stamatis Sekliziotis
Greece, the country that gave the world the Olympics, will host the 2004 games. Many U.S. products could be winners there, but for tree nuts exporters, the prospects are golden.
The rationale is simple: tree nuts go in snacks and snacks are sold at sporting events–and to tourists.
Economists don’t normally use adjectives like "spectacular." But that’s how some of them describe this growing $214-million market (including both imports and domestic production). And even without this special opportunity, Greece is one of the highest per capita nut-consuming countries in the world.
Exporters who know what buyers are looking for can expect to do well. They should keep in mind three things: first, consumer trends; second, promoting product quality; and third, knowing distribution channels.
Snacks, Sweets and Other Traditions
So what kind of nut products do Greek consumers crave? A quarter of the nuts they enjoy are in the form of processed "snack packs," eaten right out of the bag. Researchers expect the nibbling to continue.
But there has been a gradual increase in tree nuts used in candy and foods. In fact, most of the almonds imported into Greece are sold to confectionery and chocolate industries.
U.S. Almonds Make the Grade
Currently, U.S. almond exporters are among the most successful nut sellers in Greece. In fiscal year 1997 Greece imported 1,100 metric tons of almonds, mostly from the United States and Spain. The total value of these imports was $6.4 million.
Almonds, both domestic and imported, represent 24 percent of the total nuts consumed in Greece.
Import prices in 1997 for good-quality almonds were between $5.11 and $5.30 per kilogram. For 1998, prices were a little lower. Roasted almond retail prices range from $6.31 to $6.65 per kilogram.
Is There Potential for Pistachios?
Right now, Iran dominates the Greek pistachio market. In 1996, imports of pistachios into Greece were roughly 4,000 tons, 2,600 of which were purchased from Iran. Most of the balance, purchased from Germany and the United Kingdom, were also probably grown in Iran. The value of these imports was estimated at $13 million.
Total domestic consumption of pistachios in Greece fluctuates between 6,500 and 7,500 tons annually, and shows signs of increasing. Pistachios are sold as a snack food, for which demand is growing.
Grower prices for pistachios were anywhere from $4.55 and $4.73 per kilogram, depending on quality. Retail prices ranged from $5.98 to $6.98 per kilogram.
The volume of U.S. nuts that Greece imports can be expected to fluctuate according to domestic crop volumes and price.
Timing Is Everything
Consumption of imported nuts has grown 20 percent since 1991, when imports into Greece were liberalized.
Those wishing to capitalize on this open market should know when the peak sales seasons are. The main consumption period for tree nuts starts in October and peaks in December or January. It’s easy to see a holiday connection with this trend.
Spring, especially the months of April and May, is known as a slow time for nut consumption, but things pick up in summer when tourists arrive.
Temporary Marketing Opportunities
The average U.S. citizen may associate the Greek tree nut market with baklava, that country’s wonderful crisp and sticky pastry made with walnuts. But the smart exporter knows that this market has opportunities and complexities far beyond the obvious.
Greece’s poor 1998 weather resulted in a 10-percent drop in domestic almond output. Total production was only 13,100 tons in 1998, compared to a 1997 output of 14,500.
Pistachio production, which was not as badly affected by the weather, reached 5,000 tons.
Selling a Safe and Healthy Market
Quality controls for imported tree nuts are thorough; the Greek public is hearing more and more about food safety. But exporters can use this to their advantage, as an opportunity to remind buyers of the top-rate quality of U.S. nuts. Consumers also need to be made aware that U.S. almonds, walnuts and other tree nut products are as healthy as they are delicious.
The government of Greece applies the European Union’s standard levels for aflatoxin–a fungal spoilage–in tree nuts. Inspectors sample imports and require public health certificates that cite the aflatoxin content. These certificates can be obtained from any recognized laboratory in the state or country of origin.
The public health certificates must accompany the tree nut shipments into Greece, even if the shipment is coming from a third country.
In addition, when shipments arrive in Greece, one out of 10 containers is usually tested for aflatoxin.
There are no packaging restrictions on tree nuts. Periodically, the National Chemical Laboratory and the Ministry of Public Order sample and test all kinds of food products, including processed and packaged nuts, at various selling points. Supermarkets are a common venue for this kind of "spot check."
Opportunity in Distribution Channels There are about 15 processors and packers in the country who are major importers/exporters. Together, they account for 80 percent of the nuts marketed.
In addition, approximately 100 small and large businesses in Greece crack, pack, roast and salt almonds.
For distribution, there are between 10 and 15 packagers who supply the domestic market.
Traditionally, importers distribute the goods to wholesalers who operate with a profit margin of about 10 percent.
Sometimes top-level food processors such as bakeries and confectionery and ice cream manufacturers will import tree nuts directly. Wholesalers in Athens and other major cities supply retailers whose profits fluctuate between 28 and 30 percent.
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The author is an agricultural specialist with the FAS Office
of Agricultural Affairs at the U.S. Embassy in Athens, Greece.
Tel.: (301) 721-2951; Fax: (301) 721-5264; E-mail: SekliziotisS@fas.usda.gov
The Traditional Nuts
An interesting side note is that Greeks have a special tradition for almonds that is not well known in the United States. Some Greek candy companies sell carmel-coated almonds for wedding and baptism services.
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