As Novac/Jutarnji/Vladimir Zrinjski writes, more than half a million people walked through the huge Expo complex in Dubai last Sunday. The endless queues in front of the national pavilions were becoming more and more frequent a sight as it all drew to a close, and as tourists were busy studing the various technological advances from around the world, Croatian companies were networking and making new deals.
On the top floor of the building overlooking the bulky Al Wasl dome, a Croatia-Dubai business forum was held, organised by the Croatian Chamber of Commerce (HGK), with about a hundred representatives of Croatian companies from across various sectors. Earlier contacts and commitments were deepened and the ground was being prepared for new collaborations, and the Gulf perspective for Croatian companies is particularly bright in the food industry.
For obvious climatological reasons, the United Arab Emirates is highly dependent on food imports, and it is estimated that up to 50 percent of imports of these products are destined for re-export to the Middle East, Asian and African countries. At the same time, large retail chains tend to bypass local importers and distributors and facilitate administration and logistics for exporters (for example, sharing space in containers), which reduces overall costs.
Apple exports, in which Middle Eastern countries currently account for about 14 percent, could prove to be a particularly fruitful niche. The prices of apples in Croatian export terms to that part of the world are more than three times higher than the prices towards the European Union and surrounding non-EU European countries.
The delegation also included Tihomir Peraic, the director of Fragaria, which has been present on the market of the Emirates and neighbouring countries, such as Oman and Saudi Arabia, for years through the export of apples.
”With the arrival of the global coronavirus pandemic and the difficulties with transport it created, which coincided with severe frost damage, everything stopped. This was an opportunity to renew contacts with existing customers and try to find some new ones,” he explained.
Fragaria already has a contract with the LuLu Group, which has hypermarkets in all of the countries which make up the Arabian Peninsula, as well as with some smaller retailers from the Emirates and Oman, but says there is no relaxation to be enjoyed there because the competition is “terrible” to contend with.
”Nobody can really compete with the Poles in terms of prices, and the French have traditionally dominated this field through Carrefour and other chains, as have the Italians. There is potential, but we need to fight and look for an opportunity to position ourselves with quality,” added Peraic when discussing Croatian food companies and their chances.
Martina Pernar Skunca, the marketing manager of Paska Sirana on the island of Pag, a company that has also probed the market in Dubai, pointed out the two main advantages of the “business to business” conversation at the forum:
”Apart from being able to open ourselves up to a new market, these types of talks are also an opportunity to connect among the businessmen themselves. We had a few meetings in Dubai, some of them were very specific, so we hope to do business here as well,” she said.
For more on Croatian food companies and other enterprises, check out our business section.
