The study focuses on growth opportunities in 5 major ‘production sectors’ which are already of prime importance to the Greek economy and on 8 ‘rising stars’, i. e. new sectors where present activity is still small but where significant potential can be expected. In this post, I will focus on the ‘production sector’ of manufacturing & food processing (page 46 in the GTYA-report).
Production Sector – Manufacturing & Food Processing
This is one of the sectors where the action is because it is so large (second largest contributor to gross value added, or GVA; third largest employer among Greece’s ‘production sectors’; largest contributor to tax revenues and social security contributions). At the same time, it has fallen behind in the last decade (GVA from 15% to 8%) and needs to be re-charged. The development of a business-friendly environment will be critical for the sector’s effort to further enhance local and international competitiveness. GTYA suggests four major focuses:
* Targeting high potential export markets – cluster export markets based on common retailers present and prioritize based on size and growth
* Improving product strategy and value proposition of Greek products – convert from bulk to branded products and substitute imports of other oils; add value to fruits & vegetables while reinforcing presence in priority markets; expand the dairy products portfolio and emphasize origin; reposition bakery through greater geographic coverage and product innovation; instal an internationally visible certification mechanism for Greek product origin
* Increasing processing capacity and scale – develop 4-6 large scale processing and packaging units; develop a dedicated proposition and increase production and processing scale in fragmented niche categories; consolidate larger local milk farms and investigate viability for processing capacity for concentrated and powder milk to reduce imports
* Securing strong access in key export markets – launch major ‘Greek food products’ campaign; establish ‘the Greek Food Company’; differentiate commercial strategy and country coverage model
For details, please refer to the GTYA-report.