A Growth Model for Greece – Manufacturing & Food Processing

“Greece 10 years ahead” (GTYA) is the title of a study published by the Athens Office of McKinsey in mid-2011. It outlines a National Growth Model which, the study predicts, would create over 500.000 new jobs and add roughly 50 BEUR to Greece’s GDP within a decade. The executive summary of the study consists of 72 pages. I have already explained in a previous post that I will make short posts about each major point of the summary for those who prefer not to read 72 pages.

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.

Previous posts in this series: P1, P2, P3, P4, P5, P6, P7.

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2 Responses to A Growth Model for Greece – Manufacturing & Food Processing

  1. I like this very very much. My friend is Greek, living far away from his homeland, and searching for ways to support his family, living there. I heared many stories about so many possibilities, but it is so difficult to make things work. We can talk about bureaucracy in western Europe, but that is a part of making it work there. In Greece has been such a lack of paperwork/registration and control that nothing works as it should. Or takes too long time. Too many calls and mails are needed to activate a question, for sneding information. And even then it is possibile that not any promise will be followed up. It is dead. The oiled machine we know in the west is not working there. Has it ever worked? I don't think so. I can write a book about incredible, unbelievable details I heared.There is much potential in Crete, where my friend is from. A rich island, and losing its attraction because of the environmental pollution, caused by the growing amount of tourists and because the Greeks were not prepared on it. Needing money the Greeks sell their richness of nature and culture to those who are not respecting it. the presence of tourists creates landscape-pollution because of huge many modern hotels. Tourists have created an almost dead sea, because of the (I am sorry) shit they leave there. There is hardly any fish there. My friend has lost his island. His memories tell about other times. Poison is used to get rid of the grass under the olive trees, not aware that this poison gets into the earth, into the groundwater, and that the roots will drink this poison finally. The olives are not healthy anymore finally.There are fruits rotting under the trees, like lemons, oranges. There are herbs that can be collected, but people buy oregano in the supermarket. That does not take so much time….I have heared too many stories about real life there and it is not easy to try to change the lack of responsibilities, to change the idea about black money, about rules that have to be followed up. It is there in all, in the roots of Greece, deep inside of everybody and systems. There is a change, but it will need many many years to realise a controlled system.That is why I would like to go there and go to schools, to talk. To go with the children into the streets and collect the dirt there. to learn them not to throw eveything away. To go into the fields there, to show them the herbs. Where they are used for. Explaining ecology. The why. The children will warn the parents. At least speak about what they heared.I would like to take you with me, together with my Greek friend, to create meetings for the people in the villages, to explain what are possibilites and how to make them work. The way of thinking has to be changed. I told it in your yesterday-post.I will talk about your post. Talked already about your blog. It creates Hope. Light. Finally some true help with wonderful ideas, plans. Thank you.

  2. nice unique manner of growth model food manufacturing and food processing and indeed it was well planned…

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