The 1st of May 2004, ten new countries came into the European Union. These states have seen their economy dramatically change in many aspects of international trade since this date. From the custom point of view to the currencies issues, it significantly facilitates the goods exchanges of food products between EU members. But for Estonia Latvia and Lithuania, the economic revolution is deeper than in other newcomers, and this study will try to answer to the problematical: The Baltic States: a golden opportunity for French food exporters? Multiple economic evidences show the high potential of these 3 Baltic countries. The term of Baltic Tigers is used to describe the phenomenon, with reference to the flourishing Irish Celtic Tiger. During this Critical Analysis Paper, a Benchmark method of analysis is used to compare and predict the near future of the considered region. After the overview of the Baltic financial and economical system, the survey focuses on the food product market in this place. Consumption habits, imports, exports, and ways of distribution are considered to answer to the problematical.
[...] The decline of the Baltic population is a major threat that might reverse the present high economic development of Estonia, Latvia and Lithuania. We must just be aware of this trick and be very wise with investments in these states. The next two years should give us indications about the population issues. The downturn boom As in Ireland in 2001, and in the East Asian tigers in 1997, the Baltic economy is heavily related to economic health of the neighborhood, and may be strongly affected by a local or global crisis. [...]
[...] Price The very low disposable income in the Baltic countries is a major threat for a French food exporter who wants to take market shares in Estonia, Latvia and Lithuania. The Baltic consumer is much attached to find products at the lowest price. It reflects that he has of one of the lowest average income per capita in the EU. The price is the key to progress in the Baltic sea area, it must be as low as possible to gain market shares in the next few year, with the aim of maximize profits in medium term when the economy will reach the EU25 average. [...]
[...] Even with the tax barriers falling, it appears very difficult for French exporters to conquer the Baltic market of basic food items. The Baltic consumer would prefer for this kind of merchandise a local supplier because of nationality and lower cost. Bread and bakery products represent of the food industry. Cereal and bread consumption is increasing. About 70% of the wheat used in bakery is imported from European countries. So the best weapon for French food exporters is to take advantage of the quality reputation of French cooking. [...]
[...] By affecting positively each area of international trade, the custom barriers falling naturally opened the Baltic countries to an international competition, and present a brand new market to french food abroad prospectors. The custom barriers falling as not just affected commerce with the Baltic Sea states, but with the 10 European Union newcomers. Nevertheless, Estonia, Latvia and Lithuania present other particular signs. The economical figures show the high potential level of theses three Baltic countries as it will be demonstrated hereunder. [...]
[...] This creates a real opportunity for French food products known in the Baltic countries to be sane, and with a high grade of quality. Regarding meats, the 3 countries have a long tradition of breeding, and the consumption level of meat is very high. To protect the domestic economy, since 2001, the Baltic governments have dispatched subsidies to local industries of the meat. They have been able to improve their equipments, and have become very competitive. This defensive behavior has been successful since the imports are still low in that food area. [...]
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