Potential for European food market seen as huge

Over 5000 exhibitors from 98 countries are boasting their wares in Paris this week as SIAL, a fantastic celebration of food and drink, opened its doors on Sunday to an expected 130,000 visitors. One key issue being discussed here this week is the imminent arrival of ten new Member States into the Europe Union. With Ireland finally ratifying the Treaty of Nice after a referendum on Sunday the final obstacle to an enlarged Europe fell.

Over 5000 exhibitors from 98 countries are boasting their wares in Paris this week as SIAL, a fantastic celebration of food and drink, opened its doors on Sunday to an expected 130,000 visitors.

With a value of €593 billion, food is currently the number one industry in Europe, employing over 2.5 million workers in nearly 26,000 businesses. Its power is almost palpable as we walk through the labyrinth of aisles and stands at SIAL, the show that describes itself as the "global food marketplace".

One key issue under discussion here this week is the imminent arrival of ten new Member States into the Europe Union. With Ireland finally ratifying the Treaty of Nice after a referendum on Sunday the final obstacle to an enlarged Europe fell.

"The enlargement that Europe is about to witness is the biggest in history," Paola Testori Coggi, director for food safety, directorate general for Health and Consumer Protection at the European Commission, told journalists on Monday at the SIAL exhibition. But are they ready? "We at the Commission believe that the candidate countries can be ready by June 2004 - the date of the next European elections," added a confident Testori Coggi. "The advantages for European food are clear. The industry will have access to 450 million more consumers, stable political conditions and an enhanced food security system," she continued.

Frank Riboud, CEO of French Groupe Danone, also speaking at SIAL on Monday, is equally convinced that enlargement is a positive move. "Is the opening up good for us from a macroeconomic point of view?" he questioned. " A definitive yes. Not only will this provide economic and political stability - but a significant rise in purchasing power."

"In addition, " stressed Riboud, "political enlargement will break down trade barriers, liberate the circulation of personnel, and harmonise local laws."

Criticisms to European enlargement frequently find their source in food safety - the number one concern in a Europe of late riddled with food safety concerns. Testori Coggi went out of her way to calm such fears. "We have introduced a `safeguard clause` into the treaty of adhesion which will enable us to block the entry of a food if there is a problem. The clause responds to political desire, rather than legislative need [power to block already exists in current legislation], to ensure that candidate countries recognise the fact that the power to 'block' exists,"

By all accounts there is a distinctly optimistic feel at SIAL to political enlargement and the benefits that this will bring to an already burgeoning food industry.