Greece has some of the most amazing food commodities in the world. However, it lacks the capacity to process it and sell it at high profit margins.Consulting firm McKinsey & Co. just published a study titled Greece 10 Years Ahead: Defining Greece’s New Growth Model and Strategy. As its title would suggest, the report aims to lay out a new growth plan for the financially beleaguered country.
Among other things, McKinsey argues that Greece needs to be more involved in processing foods that currently leave its country as low margin unfinished goods.
“Greece has significant potential to increase its output, boost exports and contain imports, especially in four major high-potential categories, namely oils & fats, fruits & vegetables, dairy, and bakery products,” writes the studies authors.
More from McKinsey’s report:
As an example, Greece is the 3rd largest olive oil producer worldwide and exports 60% of its output to Italy in bulk, yet in doing so allows Italy to capture an extra 50% premium on the price of the final packaged product. The fact that Greece holds only a 28% of the global ‘Greek Feta’ cheese market and 30% of the US ‘Greek Style’ yogurt markets, further reinforces a clear commercial opportunity for Greece.
Greece needs to focus on improving its exports to big markets like North America, UK, and Germany. They can improve brand awareness by introducing a Greek certification system
McKinsey estimates these moves could add 120k jobs and improve the trade balance by €1.2 billion by 2021
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