Retail Sales of Fresh Produce Categories and Segments

The Department of Agriculture and Agri-food Canada (AAFC) has a requirement for a contract to obtain retail sales data. The information being obtained is point of sale data for 2013-2014 retail sales of fresh produce (selected fresh fruits and vegetables categories and segments).The purpose of this Advance Contract Award Notice (ACAN) is to signal the government’s intention to award a contract for these services to the pre-selected supplier:

AC Nielsen Company of Canada Ltd 160 McNabb Street, Markham, ON L3R 4B8 Dave Smart, Group Director Tel: (905) 943-8470 Fax: (905) 475-8357 E-mail: david.smart@nielsen.com

Before awarding a contract, however, the government provides other suppliers with the opportunity to demonstrate that they are capable of satisfying the requirements set out in this Notice, by submitting a ‘Statement of Capabilities’ during the fifteen calendar day posting period.

If other potential suppliers submit Statements of Capabilities during the fifteen calendar day posting period that meet the requirements set out in the ACAN, the government will proceed to a full tendering process on either the government’s electronic tendering service (Buyandsell.gc.ca) or through traditional means, in order to award the contract

If no other supplier submits on or before the closing date, a statement of capabilities meeting the requirements set out in the ACAN, a contract will be awarded to the pre-selected supplier, as referenced above.

MINIMUM ESSENTIAL QUALIFICATIONS

To fulfill the requirements of the contract, the person or firm must have the following minimum qualifications and experience:

The person or firm must be able to provide point-of-sale scanner data methodology; and The ability to provide: (1) estimates of Canadian national retail produce sales in fruits/vegetable categories/segments for 2013-2014 based on point of sale scanner transactions records from a large and nationally representative set of grocery, drug and mass merchandiser retailers; and (2) by category, year over year percentage sales changes from 2013.

BACKGROUND: The Horticulture and Cross Sectoral Division of Agriculture and Agri-Food Canada (AAFC) collects, analyses and disseminates market information related to horticulture commodities. However, AAFC does not collect retail market information. AC Nielsen is the only company collecting retail market information relevant to our needs. This information is needed to do a study of the value chain and examine the progression of prices along the chain. This is the second time that this report is being requested and since AC Nielsen only stores data for 2 years, we are purchasing a further 2 years’ worth of data so that we can build a database which will enable us to do any trend analysis.

Information being requested from AC Nielsen is for the period ending December 2014. Our aim is to use this information in as timely a manner as possible. To be able to provide an analysis and for it to be useful to our stakeholders, it is very important to procure this service at the earliest possible time. Retail market information is a vital piece in the analysis of the price trends in the value chain from farm gate to consumers. This gives analysts as well as industry a good insight into the evolution of prices as they move along the value chain and helps in program development; helps support the value of producing certain high margin commodities versus conventional produce etc. This information will assist Canadian producers adapt to changes and influence next year’s planting decisions. We are also requesting additional data on organic commodities to be able to assess the value added of this line of business, the advantages and profitability (prices/margins) for producers thinking of moving over from conventional farming. Organic data gaps are significant and we hope to be able to add to our data holdings by purchasing this data.

From the business point of view, we will use this information to create our own database for future trend analysis and help industry look for sustainable and competitive ways of doing business. We would like to add to the information we are purchasing every couple of years.

The role of the Horticulture and Cross Sectoral Division of AAFC is to provide information, support and analyses to the members of the horticulture value chain so that they can make informed business decisions. With increased competitiveness, the changing global markets, regulatory and trade influences, it is increasingly important to analyze the industry through the farm to retail. It also helps with government policy, program and regulatory development. Without the retail market information, it is not possible to look at market demand, pricing, sales, etc. Producers are not able to adapt growing practices without timely information on what is in demand. This information will be very useful at looking at commodities being sold, their prices and volumes that move through the retail sector.