A Deconstructed Food Market
Last week, the Gulfood exhibition dominated the agenda for global producers, suppliers, retailers and consumers alike. The 25th show is crowned with the slogan “rethinking food” and it is worth taking pause to consider just how far reaching a “rethink” for the region’s long-term food security can, and should, be.
On the show floor were plenty of new offerings from the F&B producers and manufacturers, with the usual country pavilions dominating the halls, the eager exhibitors are looking to create new opportunities across the MENA region by innovating new and enticing products.
In the wings of the show, however, many countries quietly ushered their companies to side events where presentations on regulations and standards for the region seemed to dominate, and all with a similar message: regulations and standards are ever changing and, recently, not necessarily in favor of importers.
We believe the GCC market is exhibiting clear signs of fragmentation that increases friction in our food systems. This fundamentally changes the calculus for existing manufacturers and newcomers alike, creating short term challenges and barriers to entry into the market, but long term loss for the regional market’s diversity.
foodsecurity.gov.ae
Standardisation agencies, food and drug agencies, and halal certification bodies are all trying to carve their own path and create more regulatory intervention. These changes are well intentioned but, when viewed at a regional level, are effectively breaking up the GCC and MENA market into smaller pieces. AS a result, it is becoming harder to interest foreign producers and manufacturers that cannot navigate the complexity of local, state and regional requirements. Even incumbent manufacturers with a long-standing presence in the region are struggling to convince their headquarters that a reasonable business case exists in the face of this rising tide of hurdles. In the short term, this is an issue for importers. Yet if the pace of fragmentation continues on this path, SOMA MATER believes that this could have an adverse effect on import diversification strategies implemented by bodies like the UAE’s Food Security Office.
SOMA MATER believes a solution is within reach and, considering the increased concentration risks associated with stalwart markets in Europe and East Asia, is sorely needed. So long as the agencies can agree and recognise each other’s standards and labelling to develop a more robust regional harmonisation, the GCC can continue to present an enormous opportunity for global F&B, and a more confident springboard into the wider region. Most importantly for SOMA MATER, increased transparency in regulations and processes can support economic growth and ensure food security for our region’s future generations.
