Fresh Deciduous Fruit Annual 2012

An Expert's View about Pome Fruits (such as apples or pears) and Stone Fruits (such as peaches, cherries, etc.) in France

Posted on: 24 Nov 2012

Important fruit producing areas in EU-27 countries were affected by a range of unfavorable weather conditions.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 10/31/2012 GAIN Report Number: E70039 EU-27 Fresh Deciduous Fruit Annual Unfavorable Weather Affects 2012 Crop Approved By: Paul Spencer Prepared By: Roswitha Krautgartner, Sabine Lieberz, Marcel Pinckaers, Ferenc Nemes, Ornella Bettini, Tania DeBelder, and the group of FAS fruit specialists in the EU Report Highlights: Important fruit producing areas in EU-27 countries were affected by a range of unfavorable weather conditions, including a cold and wet spring, localized hail, high winds, and summer drought. This results in lower fruit production estimates for marketing year (MY) 2012/13. Commercial apple production is forecast at 9.8 MMT (minus 9 percent), commercial pear production at 2.1 MMT (minus 22 percent) and table grape production at 1.8 MMT (minus 5 percent). Introduction Disclaimer: This report presents the situation and outlook for apples, pears, concentrated apples juice (CAJ), and table grapes in the EU-27. This report presents the views of the authors and does not reflect the official views of the U.S. Department of Agriculture (USDA). The data are not official USDA data. This report was a group effort of the following FAS analysts: Xavier Audran FAS/Paris covering France Ornella Bettini FAS/Rome covering Italy and Greece Mila Boshnakova FAS/Sofia covering Bulgaria Tania DeBelder USEU/FAS Brussels covering EU policy Monica Dobrescu FAS/Bucharest covering Romania Mira Kobuszynska FAS/Warsaw covering Poland Roswitha Krautgartner FAS/Vienna covering Austria and Slovenia Sabine Lieberz FAS/Berlin covering Germany Diogo Machado FAS/Madrid covering Spain and Portugal Jana Mikulasova FAS/Prague covering the Czech Republic and Slovakia Ferenc Nemes FAS/Budapest covering Hungary Marcel Pinckaers FAS/The Hague covering Belgium, Denmark, Finland, Luxemburg, The Netherlands and Sweden Jennifer Wilson FAS/London covering the U.K. and Ireland The chapters were coordinated by: Overall coordination and executive summary Roswitha Krautgartner Apples Sabine Lieberz Pears Marcel Pinckaers Concentrated Apple Juice Ferenc Nemes Table Grapes Ornella Bettini Policy Tania DeBelder Abbreviations and definitions used in this report CAJ Concentrated Apple Juice CMO Common Market Organization EU European Union EE Eastern European GTA Global Trade Atlas Ha Hectare; 1 ha = 2.471 Acres MT Metric Ton = 1000 kg MMT Million Metric Tons MRLs Maximum Residue Limists MS EU Member State(s) MY Marketing year Apples: July/June Pears: July/June CAJ: July/June Table Grapes: June/May NMS New EU Member States Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia NR Non reconstituted juices OP Operational Program RTD Ready-to-drink SFS School Fruit Scheme U.A.E United Arab Emirates USD U.S. Dollar WAPA World Apple and Pear Association Trade data cited in this report was derived by using the following HS tariff codes: Apples: 0808 10 Pears: Until 12/31/2011: 080820 (pears and quinces) as of 01/01/2012: 080830 (pears) and 080840 (quinces) – in order to be consistent with previous data CAJ: 2009 79 Table grapes: 0806 10 10 Table of Contents Executive Summary Apples Pears Concentrated Apple Juice Table Grapes Policy Trade Fairs Related Reports Executive Summary Coordinated by Roswitha Krautgartner/FAS Vienna Production The EU-27 is a leading producer of fresh deciduous fruit. MY 2012/13 (July/June) production was affected by a range of unfavorable weather conditions, including a cold and wet spring, local hailstorms, high winds, and summer drought in important producing countries. As a result, production of apples and pears is expected to fall significantly and grape production is also down. Commercial apple production in MY 2012/13 is estimated at 9.8 MMT, which is a decrease of 9 percent compared to the previous year. The decrease is largely the result of late spring frosts in northwestern Europe and wet weather in Spain and Italy during blossoming. Fruit quality is expected to be generally good with the exception of hail damage in Spain and some localized areas of Germany. The forecast volume of apples for processing is up 1 percent but overall EU-27 concentrated apple juice (CAJ) production continues to decline. Commercial pear production in MY 2012/13 is estimated at 2.1 MMT, which is 22 percent less than last year and 17 percent lower than the three year average. Summer drought in Italy combined with decreased planted area led to a decline in pear production. MY 2012/13 table grape production is forecast to decrease by 5 percent to 1.8 MMT, due to summer drought in the three top producing countries (Italy, Spain, and Greece) and declining planted area. Consumption and Trade Apples are still the most popular fruit in the EU-27, followed by bananas, citrus, and pears. In many member states, the popularity of local and seasonal produce has grown. Due to lower EU-27 domestic supplies, imports of apples and pears are expected to increase. Major off season apple suppliers to the EU are Chile, New Zealand, and South Africa. Pears are imported primarily from South Africa, Argentina, and Chile. Top destinations for EU-27 apples are Russia, Belarus, and Algeria and for EU-27 pears, Russia, Brazil, and Norway. For MY 2012/13, the lower availability of apples is expected to result in a significant decrease in exports from France and Italy, while Poland is expected to increase its exports to Russia, Belarus, and the Ukraine. EU-27 table grape consumption has been stable in recent years. Policy Commission implementing Regulation (EU) No 543/2011 provides marketing standards for fresh fruits and vegetables and imports into the EU are checked against this standard. Criteria include quality, size, labeling, packaging, and presentation. The School Fruit Scheme EU funding available to provide fruit and vegetables to school children. This amount is to be matched by national and private funds. The 2012/2013 school year is the fourth year of the program and the Commission implementing decision of March 2012, allocates the €90 million of EU funds to the 24 participating member states. Apples Coordinated by Sabine Lieberz/FAS Berlin Table 1: EU-27 PSD for Fresh Apples (in ha, trees, MT) Apples, Fresh EU-27 2010/2011 2011/2012 2012/2013 Market Year Begin: Jul 2010 Market Year Begin: Jul 2011 Market Year Begin: Jul 2012 USDA Official New Post USDA Official New P USDA ost O New Post fficial Area Planted 528,930 537,350 0 542,500 532,900 Area Harvested 495,390 516,400 0 525,000 517,320 Bearing Trees 0 0 Non-Bearing Trees 0 0 Total Trees 0 0 0 0 0 Commercial 9,691,100 9,687,610 10,472,000 10,707,110 9,779,250 Production Non-Comm. 1,197,900 1,397,585 1,362,000 1,622,220 1,519,230 Production Production 10,889,000 11,085,195 11,834,000 12,329,330 11,298,480 Imports 616,500 632,282 550,000 526,047 639,000 Total Supply 11,505,500 11,717,477 12,384,000 12,855,377 11,937,480 Fresh Dom. 7,666,500 7,655,567 7,772,300 7,946,354 7,000,480 Consumption Exports 1,089,200 1,089,110 1,500,000 1,512,848 1,502,000 For Processing 2,749,800 2,972,800 3,111,700 3,396,175 3,435,000 Withdrawal From 0 0 Market Total Distribution 11,505,500 11,717,477 12,384,000 12,855,377 11,937,480 HA, 1000 TREES, MT Note: Data for tree numbers is only available for few member states; therefore lines referring to tree numbers are left blank. Source: FAS EU-27 Apples - Commercial Production The EU-27 is one of the leading producers and consumers of apples in the world. Poland, Italy, France, Germany, and Spain are the top five producing member states and together account for 76 percent of the total EU commercial apple production. Commercial apple production in MY 2012/13 is estimated at 9.8 MMT. However, this estimate is provisional since the harvest is still ongoing in some of the major production regions. This estimate is 0.7 percent more than what was projected in August by the World Apple and Pear Association (WAPA) but a 9 percent decrease in production compared to MY 2011/12. All member states with the exception of Poland, Hungary, the Slovak Republic, Ireland, and Finland show a decrease in production; however, the decrease is most pronounced in the north-western part of Europe, namely the Benelux countries, France and the U.K., due to frosts during blossoming time. Our increase compared to the August WAPA estimate is a result of higher estimates for France and Spain. The quality of apples for the table market is good. Substantial hail damage occurred in Spain and in some localized areas in Germany and Austria. The UK crop was affected by high rainfall throughout the summer combined with unseasonably cool temperatures, localized hail, and high winds. This has caused some weather marking on apple skins. Table 2: EU-27 Commercial Apple Production by Country and Year in MT COUNTRY 2010 2011 2012e Change Percent 2012:2011 in of Total percent Production Poland 1,690,000 2,269,000 2,608,000 15% 27% Italy 2,179,000 2,293,000 1,987,000 -13% 20% France 1,788,000 1,859,000 1,408,000 -24% 14% Germany 834,960 953,000 935,000 -2% 10% Spain 605,669 658,752 542,568 -18% 6% Romania 423,000 425,000 390,000 -8% 4% Netherlands 324,000 405,000 303,800 -25% 3% Greece 254,000 305,000 297,000 -3% 3% Hungary 308,400 193,000 235,000 22% 2% Belgium 279,360 295,850 205,640 -30% 2% Portugal 199,555 231,699 196,752 -15% 2% Austria 197,413 226,252 181,600 -20% 2% United Kingdom 214,000 226,000 163,000 -28% 2% Czech Republic 129,476 105,879 102,110 -4% 1% Slovenia 77,303 81,323 60,000 -26% 1% Lithuania 46,000 49,000 39,000 -20% 0% Slovak Republic 34,215 31,355 32,776 5% 0% Bulgaria 30,000 30,000 29,000 -3% 0% Ireland 16,000 20,000 20,000 0% 0% Denmark 21,000 20,000 18,000 -10% 0% Sweden 20,000 17,000 14,000 -18% 0% Latvia 12,000 8,000 7,000 -13% 0% Finland 4,262 4,000 4,000 0% 0% TOTAL EU- 27 9,687,613 10,707,110 9,779,246 -9% e= estimated Source: FAS/EU-27 Some 25 apple varieties are produced commercially in the EU in volumes exceeding 10,000 MT. Among these, Golden Delicious, Gala types, and Jonagold are the dominant varieties. However, production patterns vary. While Golden Delicious is the variety with the largest production in Italy, France, and Spain, Elstar is dominant in Germany and the Netherlands; Idared and Jonathan are the number one varieties in Poland and Hungary, respectively. However, new varieties, for example Pink Lady, Kanzi, Rubens, Tentation, have increased their share of production in recent years. In the Netherlands “new” varieties comprise 10 percent of total production. Chart 1: Commercial Apple Production in the EU-27 by Variety and Year in 1,000 MT r = revised f = forecast Note: Category “Other” includes but is not limited to: Annurca, Ariane, Belgica, Boskoop, Bramley, Cameo, Cortland, Cox Orange, Cripps Pink, Diwa, Glockenapfel, Gloster, Gravensteiner, Greenstar, Honey crunch, Ingrid Marie, James Grieve, Jazz, Junami, Kanzi, Lobo, Mariac, Morgenduft, Pinova, Reinette Grise du Canada, Rubens, Tentation, Topaz, Wellant Source: FAS/EU-27, based on data from WAPA Apples - Non-commercial Production Non-commercial production in MY 2012/13 is estimated at 1.5 MMT, which is 6 percent lower than in MY 2011/12. This is largely a result of a decline in Germany (minus 20 percent compared to MY 2010/11) that is only partially compensated by substantial rebound in production in Hungary (plus 62 percent), Poland (plus 8 percent), and Austria (plus 5 percent). However, most EU member states do not report estimates for non-commercial production. As a result, the production figure provided in table 1 is a rough estimate based on industry rather than official information. Non-commercial production tends to alternate between good and poor crop years. (For background explanation please refer to page 7 of E48163) Non-commercial production includes apples grown in home gardens and in untended trees in meadows or field edges. Typically, non-commercial production is used for fresh consumption, apple juice and spirits production, baking (cakes, tarts) or preserved foods (canned, dried, and cooked). The amount of apples diverted to the different segments varies depending on the price for processing apples. Higher processing apple prices generally result in a higher proportion of fruit entering juice production. In general, non-commercial production is gradually decreasing in the EU-27 as hobby farmers get older. Younger generations have simply not shown the same interest in small-scale production. Instead, commercial production of higher acid apple varieties for processing is expected to increase to meet demand from the juice concentrate industry. Apples - Stocks According to WAPA, EU stocks of apples amounted to 486,514 MT on June 1, 2012, compared to 581,484 MT at the same time in 2011. Data for the end of the MY (June 30, 2012) is not yet public but reportedly a lot lower. Reporting of stocks varies by member state. In some member states the stock number comprised apples stored at producer organizations (POs) and in other member states, stocks are at POs and wholesalers. More important than the actual number is the year-on-year-change of stocks, as end of MY stocks can have a detrimental effect on the prices for the new harvest. In this report, stocks are included in the “fresh domestic consumption” line in the PSD. Apples – Consumption Consumer preferences Apples are the most popular fruit in all member states except for Spain, where oranges are number one. However, a closer look within the apple segment does show differences in consumer preferences between member states. For information on variety and size preferences by member state please refer to page 9 of E48163. In Hungary, annual consumption has decreased by over 3 kg/per capita over past five years. This may be due to increased hypermarket grocery sales, where the availability of other fruits presents an attractive alternative. The movement to buy local and seasonal produce has gained a lot of traction in some member states such as the UK, Belgium, the Netherlands, Germany and Austria. To the British, apples are iconic local produce that conjure up nostalgia for traditional harvests and days gone by. In the UK, the strong demand for local produce has resulted in an increase of the share of domestically produced apples in recent years, from 25 percent in 2003 to 40 percent in 2010. Potentially, the UK could produce 50 percent of its apple consumption. The market is also responding to policy drivers on food security, climate change, and health. In Germany, this behavior can be found with consumers who buy at weekly and farmers markets. They tend to prefer local produce over products from other countries and even over products from other regions in Germany. Processing In MY 2012/13, processing use of apples is expected to increase compared to MY 2011/12 because of higher both commercial and non-commercial apple production in Hungary and Poland. In addition, due to attractive prices for processing apples, the sector absorbs low quality apples (hail and frost damage) from the table apple market. Processing uses for apples include, among others, apple juice, concentrated apple juice (CAJ), cider, wine/brandy, apple sauce, preserves, canning, apple chips, and peeled apples for bakeries. The share of apples used for processing varies significantly by member state, ranging from 2 percent in France to well over 60 percent in Hungary. The processing share also varies from year to year. The EU-27 average share of apples going into processing is forecast to amount to about 29 percent of total supply in MY 2012/13. Major member states with apple processing include Poland, Germany, Hungary, Italy, Romania, France, Austria, the U.K., and Spain (in order of descending volume). As of 2012, Austria started accounting for fresh apple consumption by looking at sales at the retail level. Apples bought on farmer markets and apples from non-commercial production are now listed under processing and for this reason there is a slight impact on this reports PS&D calculation. Apples – Trade The majority of trade occurs among the EU-27 countries. Over the past five years, on average about 2.2 million MT of apples were traded between EU member states, while roughly 500,000 to 800,000 MT were imported from outside the EU-27. In recent years imports, contributed between 5 and 8 percent of the total EU apple supply. EU-27 external trade Imports EU-27 apple imports from outside the bloc are forecast to increase by roughly 100,000 MT or 20 percent, due to the smaller EU-27 domestic apple production. The increase is limited by the tight availability of apples on the world market. The decrease of imports in MY 2011/12 is a result of lower table apple imports from the Southern Hemisphere. Almost 90 percent of EU-27 apple imports originate from the top five suppliers, all of which are located in the southern hemisphere and export mostly during the European off-season. The main importers of apples are the U.K. and the Netherlands, who together account for more than half of the EU-27 imports. However, much of the volume entering the Netherlands will not be consumed there but eventually be transshipped to other member states. Increased imports of processing apples in MY 2011/12 mainly originated from Serbia, Croatia, Macedonia, Moldova, Switzerland, and Albania and are partly a result of the high prices for processing apples in the EU. In addition, Serbia and Croatia enjoy a preferential, zero-tariff rate quota for export of industrial apples to Hungary between September–December. U.S. apple exports to the EU-27 occur year-round; however, most arrive between November and April. U.S. apples compete with domestically produced apples and with competitively priced imports from China. For example, the average import price for U.S. apples in MY 2011/12 was 1,650 USD per MT, while Chinese apples were imported at 1,212 USD per MT (source: GTA). The main importers of U.S. apples in MY 2011/12 were the U.K., Finland, Sweden, the Netherlands, and Ireland. EU imports of U.S. apples decreased by 10 percent compared to MY 2010/11 mainly due to the enforcement of EU food additive legislation. For example, morpholine, a carrier for glazing agents applied to fruit, is approved for use in third countries such as Chile, the United States and Canada, but not in the EU. The U.S. apple industry has taken steps to ensure that fruit destined for the EU does not have any trace of morpholine. Table 3: EU-27 Imports of Apples in MT Country of Origin MY 2009/10 MY 2010/11 MY 2011/12 Change Chile 161,968 186,640 129,739 -30% New Zealand 126,958 145,881 120,468 -17% South Africa 121,588 121,405 107,634 -11% Brazil 71,486 48,159 47,157 -2% Serbia 2,198 12,059 33,831 181% Argentina 46,425 52,778 28,870 -45% Macedonia 13,920 17,961 14,789 -18% Croatia 6,008 13,783 11,603 -16% United States 23,643 12,017 10,808 -10% Switzerland 731 1,115 6,438 477% China 14,137 5,769 3,620 -37% Uruguay 1,918 4,973 3,028 -39% Moldova 1,972 5,141 2,968 -42% Albania - 139 1,169 741% Canada 1,386 1,221 1,150 -6% Other 1,613 3,241 2,775 -14% World Total 595,951 632,282 526,047 -17% Thereof processing apples 9,473 40,119 53,356 33% Source: Global Trade Atlas (GTA) Exports For MY 2012/13 total EU-27 apple exports are expected to slightly decrease as a result of lower EU production. However, this masks differences by member state. While exports from France (to Algeria, Russia, Saudi Arabia, UAE and Malaysia) are expected to decline significantly, higher production in Poland leaves room for a further increase of exports especially to Russia, Belarus, and the Ukraine. In MY 2011/12 exports rebounded from a low level in MY 2010/11. This was due to higher exports from Poland, France, and Italy. The largest increases in exports were achieved to Russia and Belarus (from Poland), and Egypt (from Italy, and to a lesser extent from Greece and France). The top destinations for EU-27 apples are Russia, Belarus, and Algeria. The largest EU exporters are Poland (mostly to Russia and Ukraine), France (mainly to Algeria, Russia, U.A.E., and Saudi Arabia), and Italy (to Russia, Libya, Norway, and Saudi Arabia). In some large foreign markets, EU and U.S. suppliers compete; including: Russia: with apples from Poland, Italy, Belgium, France, and Germany U.A.E.: France, Italy Saudi Arabia: Italy, France Table 4: EU-27 Exports of Apples in MT Country of Destination MY 2009/10 MY 2010/11 MY 2011/12 Change Russia 524,608 500,384 659,630 32% Belarus 41,064 44,952 139,859 211% Algeria 88,949 92,327 120,397 30% Ukraine 255,735 84,534 114,000 35% Egypt 2,862 21,286 66,567 213% Saudi Arabia 34,713 36,669 55,103 50% Libya 34,358 34,968 46,235 32% United Arab Emirates 24,995 27,026 38,692 43% Norway 35,068 33,311 38,161 15% Kazakhstan 30,918 23,605 36,013 53% Bosnia & Herzegovina 10,663 9,024 12,655 40% Brazil 5,612 4,727 11,959 153% Croatia 8,518 7,866 11,937 52% Melilla 10,227 10,283 11,916 16% Albania 15,149 12,343 11,146 -10% Other 89,412 141,416 128,896 -9% World Total 1,217,218 1,089,111 1,512,848 39% Source: Global Trade Atlas (GTA) Apples - Prices Lower production has lead to increased prices both at the farm gate as well as the wholesale level. For example, in October 2012, Italian farmers received 23 percent higher prices for their Golden Delicious apples than in October 2011. Average wholesale market prices in Germany in the week of October 8, were dependent on the variety between 2 and 48 percent higher than a year ago, with Elstar and Holsteiner Cox showing the largest increases. Apples – Withdrawal from Market The reform of the EU common market organization for fruits and vegetables (see policy section) also brought about a change in the intervention system (also called “withdrawal from market”). Previously, a producer organization was allowed to dispose up to 8.5 percent of its marketed volume of apples through intervention programs. However, unlike other commodities, these volumes were not allowed to re-enter the market at a later stage. Instead, they had to be permanently “withdrawn from the market”, for example by donation to charity or be destroyed. Since 2008, “withdrawal from market” is no longer available as a separate measure but has to be included as an emergency measure in the producer organizations’ operational program (OP). This means, the system moved from being financed entirely by EU funds to a co-financing system where producer organizations have to bear 50 percent of the costs. As a consequence, from MY 2008/09, member state authorities began administering “withdrawals from market” indirectly via approval of the OP. Thus, volume data is no longer available. Also, some member states (for example Germany) have opted to do away with intervention for fruits and vegetables altogether. Apples – Additional Information For information on tariffs, maximum residue levels, and labeling requirements please see the respective sections at the end of the report. Additional Information on EU-27 Member States Austria: Due to dry conditions, frost damage, regional hailstorms and wind, the 2012 commercial apple crop is expected to decline significantly (20 percent) compared to 2011. Average fruit size is expected to be 25 percent less but fruits may be more aromatic than in average years. Belgium All varieties are expected to be down due to night frosts in April. Quality is expected to be somewhat lower while size will similar be to previous years. Given the low production, prices increased by roughly a quarter compared to last year. Bulgaria The MY 2012/13 apple crop is likely to decline to under 40,000 MT. This is a result of heavy 2011/12 winter with record low temperatures and heavy snowfall which uprooted and damaged many trees; spring frosts and unusual heavy rains in May during the blossoming period, which caused poor pollination, and finally summer heat and drought. Lower crop quality (size, juice content etc.) may increase consumption of local apples for processing while imports for fresh consumption are likely to be higher. Czech Republic A drop in apple production was caused by frosts, especially those that occurred in the second half of May. In some parts of the Czech Republic the damage to fruit growers was compounded by hailstorms in August. Because of the significant losses caused by adverse weather conditions, Czech fruit growers are calling for financial support from the Czech government. Many farmers complain about low returns on investments in the fruit growing sector and consider diversification into other more profitable crops, such as grains only oilseeds. France French apple production is down by 24 percent from 2011 (and 22 percent from the five year average) due to poor weather conditions (frost, hail and excess of rains) in spring which damaged buds. Apple area is also down by 2 percent, a continuation of a long term trend. Damages were most acute for the Granny Smith and Golden varieties (- 30 percent for Golden apple production). In Limousin (central France), the main producing region for Golden apples, with high altitude orchards, the production was almost wiped out (- 81 percent) by late spring frost. Germany Harvest is still ongoing and final production could be somewhat higher than estimated due to larger fruit diameter. Quality is good and there is less hail damage than last year. Large differences between day and night temperatures close to harvest have led to a very good color development of red and bi-color varieties. Greece According to industry estimates, MY 2012/13 (July/June) Greek apple production is forecast to slightly decrease by 3 percent, but the quality is very good. Hungary Apple orchards of Szabolcs-Szatmar-Bereg county were hit by strong frosts in May. More than half of the expected crop was wiped out in an area that represents 55 percent of the country’s apple production potential. Extreme drought during the vegetation period further diminished the crop by reducing the size of fruit. However, 2012 production is still an increase compared to the record low production in 2011 and in total volume the harvest is average; however, the share of quality table apples (above 65 mm diameter) is much lower than in a typical year. Italy MY 2012/13, Italian apple production is forecast to decrease by 13.3 percent compared to the previous year, mainly due to the freeze and heavy rains during blossoming. The largest decreases are forecast for Red Delicious, Renetta, Gala, and Fuji varieties. Fruit quality good. In terms of price, the fall in European apple production (-9 percent ) should ensure better prices compared to last year. Netherlands In MY 2012/2013, acreage is expected to further decline (-4 percent) to an estimated 7,950 hectares. Apple production is expected to be down by 25 percent compared to last year, especially for leading varieties such as Elstar and Jonagold. The Netherlands experienced frost in April leading to lower quality apples size variance. Poland Poland’s total production for MY 2012/13 is forecast up (14.3 percent), despite a 2.6 percent decrease in apple tree area. Favorable weather is the main reason for this year’s good harvest. The crop is very good quality, a result of growing investment in orchards and better organization through producers’ groups. Portugal The area harvested has been constant in recent years at around 12,500 ha. The Ministry of Agriculture forecasts point to significant reductions in the yields of apple and pear orchards this year, resulting from adverse weather (cold and frost) during flowering/pollination and lower temperatures at setting. Romania The severe drought and extreme heat during the summer of 2012 hurt orchards and vineyards. Apple production is anticipated to decline by 11 percent as a result of lack of water and high temperatures. Fruit size is smaller than normal. Slovakia Slovak fruit growers experienced adverse weather conditions resulting in a decline in apple production of up to 10 percent. Spain Total planted and harvested areas have been slowly but continually falling in recent years. The latest official statistics released by the Spanish Ministry of Agriculture forecast an 18 percent fall in the 2012/13 production. The Department of Agriculture of Cataluña and the Association of Fruit Companies of Cataluña (AFRUCAT) announced that this will be the region’s worst apple and pear campaign in 20 years, a result of a bad fruit set after intense April rains and hail in the region of Lleida in July. United Kingdom The UK trend towards supporting locally produced apples will be tested this season. Harvest was completed three weeks later than normal, the crop is estimated to be down 28 percent over the previous year, and (like other EU producers) packhouse storage facilities will have to cope without the use of Diphenylamine (DPA) to address post-harvest storage scald. The UK crop was affected by high rain fall throughout the summer combined with unseasonably cool temperatures, hail, and high winds. This has caused weather marking on the skins of some apples. The shortage of domestic apples has led supermarkets to relax their standards and accept slightly marked fruit in order to increase supplies, but price rises are also expected. Pears, Fresh Coordinated by Marcel Pinckaers/FAS The Hague Table 5: EU-27 PSD for fresh pears Pears, Fresh EU-27 2010/2011 2011/2012 2012/2013 Market Year Begin: Jul Market Year Begin: Jul Market Year Begin: Jul 2010 2011 2012 USDA O New USDA Post ew USDA Post fficial Officia Nl O New Postfficial Area Planted 136,241 129,817 0 131,085 128,888 Area Harvested 127,881 121,453 0 123,790 122,058 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total Trees 0 0 0 0 0 Commercial Production 2,185,000 2,258,316 2,550,000 2,696,102 2,095,067 Non-Comm. Production 119,700 139,984 120,000 146,411 118,078 Production 2,304,700 2,398,300 2,670,000 2,842,513 2,213,145 Imports 314,500 321,226 202,000 225,077 320,000 Total Supply 2,619,200 2,719,526 2,872,000 3,067,590 2,533,145 Fresh Dom. 2,107,700 2,200,000 2,138,200 2,220,000 2,100,000 Consumption Exports 347,400 348,004 473,800 465,551 310,000 For Processing 164,100 171,522 260,000 382,039 123,145 Withdrawal From 0 0 0 0 0 Market Total Distribution 2,619,200 2,719,526 2,872,000 3,067,590 2,533,145 HA, MT Note: lines referring to tree numbers are left blank since this data is only available for a few member states. Source: FAS/EU-27 Pears – Production Pears – Commercial Production The EU-27 is after China the world’s largest producer of pears, followed by the United States and Argentina. Italy, Spain, Belgium, and the Netherlands are the top four producing member states and together account for over three-quarter of total EU-27 commercial pear production. Portugal and France are the EU’s 5th and 6th largest pear producing countries. Production continues to be led by the Conference variety, mainly grown in Belgium, the Netherlands, Spain, and Italy. Other popular varieties include Abate Fetel (grown in Italy), William Bon Crétien/Bartlett (grown in Italy, Spain and France), and Rocha (grown in Portugal). Chart 2: EU-27 Pear production for selected varieties in thousand MT Source: WAPA Commercial pear production in MY 2012/13 is estimated at 2.1 MMT, down by 22 percent compared to MY 2011/12 and 17 percent lower than the three year average. Although there was a small reduction in area, this year’s low production is mainly the result of overall low yields. The six largest producing countries are responsible for almost 90 percent of EU’s pear production. Italy is the largest pear producer (mostly the Abate Fetel variety), responsible for roughly a third of total EU production. Planted area, however, has been declining for a decade due to the low profitability. This year’s low production, close to the 2010 record low, is also attributed to drought this summer that hindered overall growth. Lower yields are expected for all varieties. Although the size is expected to be smaller than last year, this year quality is good. Pear production in Spain is expected to be record low, down by 22 percent. Bad weather conditions early in the season followed by a hail storm in July damaged pear production. The production of the Blanquilla variety continues to go down, an estimated 58,000 MT this year compared to over 200,000 MT ten years ago. Conference is the leading variety in Spain. Belgium’s pear production is expected to be lower by 14 percent compared to last year, due to the cold and wet weather during bloom and frost in April. Pear production in the Netherlands is expected to be one of the lowest of the past decade, at 198,000 MT. Pear production in both Portugal and France is expected to be down by at least a quarter. Portugal is the only EU country producing the Rocha variety while France produces Guyot, William Bon Crétien and Conference varieties. Table 6: EU-27 Commercial Pear Production by Country and Year MY MY MY MY % % 2009/10 2010/11 2011/12 2012/13 Change Production Italy 871,225 680,000 915,000 717,000 -22 34.2 Spain 434,200 470,543 514,888 401,543 -22 19.1 Belgium 291,650 276,500 286,200 247,400 -14 11.8 Netherlands 285,950 265,780 325,920 201,760 -38 9.6 Portugal 249,109 174,523 227,525 159,300 -30 7.6 France 188,000 149,000 167,000 125,000 -25 6.0 Poland 75,000 41,850 57,148 57,645 0 2.7 Greece 43,000 54,000 36,000 44,000 +22 2.1 Germany 52,000 38,896 46,854 35,000 -25 1.7 United Kingdom 30,000 33,000 32,000 29,000 -9 1.4 Hungary 30,000 24,176 26,590 25,500 -4 1.2 Romania 24,000 20,000 28,000 25,000 -11 1.2 Other 31,064 30,048 32,977 26,919 -19 1.4 Total Production 2,605,198 2,258,316 2,696,102 2,095,067 -22 100 Source: FAS/EU-27 Pears – Non-Commercial Production Similar to apples, the non-commercial production of pears includes house gardens and production in meadows. For the EU as whole, MY2012/13 non-commercial production is estimated at 118,000 MT or about 5 percent of total pear production. However, the share of non-commercial production is higher in Austria, the Czech Republic, Romania, Slovenia, and Slovakia. Pears – Consumption Pears are still popular throughout the EU although apples, oranges, and bananas continue to lead fresh fruit consumption. Like other fruit and vegetables, pear consumption is under pressure. The average per capita consumption of pears is 5 kg/year. The high per capita consumer markets (9 kg/year or more) are Austria, Italy, Portugal, and Spain. Further north, France, the Benelux, and Nordic countries have an average pear consumption of 5 kg/year. Central and Eastern European countries have a per capita consumption of 2 kg/year or less. On a member state level, the most popular pear varieties are those that are locally or regionally grown. The Conference pear variety dominates pear consumption in North West Europe, while Abate Fetel, Blanquilla, Limonera and Rocha are popular pears in Southern Europe. The number of varieties offered in supermarkets is usually around 3 or 4. Main buyers of pears are senior couples and young bachelors. The industry furthermore believes that taste, price, texture and appearance are the main reasons for buying pears. Varieties that have a good storage qualities (e.g., Conference) are available year round. Varieties with a somewhat lower keeping quality like Doyenne du Comice, Abate, and Limonera are available after harvesting and are complemented by imports of Williams Bon Crétien and Packham from the Southern Hemisphere. Since pear consumption is under pressure the industry is seeking to stimulate consumption, including developing quality brands recognized by consumers, focusing on young consumers, and highlighting health benefits. Processing In MY 2012/13, it is expected that the volume of pears that will be used for processing will be around 125,000 MT, mainly due to lower pear production in Italy, the Netherlands, Spain, and Poland. Pears – Trade The majority of the pear trade occurs within the EU-27. Over the past 5 years, roughly 825,000 MT of pears traded between member states, while on average 275,000 MT were imported from third countries, accounting for a quarter of the total EU-27 pear supply. EU-27 external trade Imports The main EU-27 importing countries continue to be the Netherlands and Italy, which together responsible for over two-third of EU-27 pear imports. However, much of the volume entering the Netherlands will be transshipped to Germany and other member states. Table 7: EU-27 Imports of Pears in MT Country of Origin: MY 2008/09 MY 2009/10 MY 2010/11 MY 2011/12 South Africa 128,302 100,036 108,565 84,650 Argentina 164,349 107,050 140,319 74,356 Chile 60,717 43,475 48,873 44,665 China 20,869 15,488 11,781 11,641 Turkey 8,658 5,042 5,081 4,773 Unites States 6,306 3,451 2,782 1,646 Uruguay 1,273 1,575 1,332 1,405 New Zealand 2,079 1,624 1,252 869 Other 1,368 1,292 1,241 1,072 World Total 393,921 279,033 321,226 225,077 Source: Global Trade Atlas In MY 2011/12, ninety percent of the EU-27 pear imports came from South Africa, Argentina, and Chile. Trade with these Southern Hemisphere countries starts after harvest in January and runs until June and does not directly compete with EU pears. Most popular imported varieties include Williams Bon Crétien, Packham, and Anjou. Other trade partners include China (Ya variety) and Turkey (quinces). The Ya pear is consumed by the Asian population within the EU while quinces are destined for the industry. U.S. pear (Anjou variety) exports to the EU-27 occur between November and February. Although they compete with domestically grown pears, consumer demand is strong for U.S. Anjou pears and especially in the German and Nordic market. High prices for pears in Europe present additional opportunities for U.S. pears for MY 2012/13. For MY 2012/13, pear imports from the Southern Hemisphere countries are expected to be higher compared to MY 2011/12, due to low pear production in the EU. Imports however will also depend on this year’s pear production in the Southern Hemisphere, local demand for pears and its price development. Pear imports from China and Turkey are not expected to show any significant changes as they serve a specific market. Exports The main EU-27 exporting countries continue to be Belgium and the Netherlands, together responsible for over fifty percent of EU-27 pear exports. These two countries are the EU’s largest producers and exporters of Conference pears. Other leading exporters include Spain, Portugal, and Lithuania. The leading export market for EU-27 pears is Russia, responsible for over sixty percent of total pear exports. Brazil and Norway are EU’s 2nd and 3rd largest markets. Table 8: EU-27 Exports of Pears in MT Country of Destination: MY 2008/09 MY 2009/10 MY 2010/11 MY 2011/12 Russia 152,575 218,408 238,927 286,844 Brazil 9,802 25,574 29,077 58,920 Norway 21,247 20,846 19,430 20,530 Belarus 3,453 5,028 7,463 17,825 Libya 2,362 4,487 3,161 9,691 Morocco 1,956 3,095 5,043 8,435 Ukraine 3,707 2,601 4,300 7,818 Kazakhstan 274 2,385 3,027 5,740 Melilla 1,810 2,487 3,312 4,315 Algeria 932 4,777 2,848 3,835 Switzerland 7,835 4,519 6,017 3,580 Other 17,943 19,641 25,399 38,018 World Total 223,896 313,848 348,004 465,551 Source: Global Trade Atlas Russia continues to be the most important market for European Conference pears. Belgium and also the Netherlands lead this market. Exports start directly after harvesting and run until the end of spring. As of late February EU pears face competition from Southern Hemisphere pears. Given the low production of Conference pears in the EU, prices are high. Depending on who is willing to pay the best price, EU-27 exports to Russia for MY 2012/13 will go down or might stabilize. Brazil’s pear imports overall largely depend on Argentina. Portugal (Rocha variety) and Spain (Blanquilla, Limonera, Williams BC varieties) are the country’s second and third largest suppliers of pears and their combined market share continues to grow. Brazil imports from Argentina slow down as imports from Portugal (Rocha variety) start (between August and March). Given the record low production in Portugal and Spain, EU-27 exports to Brazil are expected to be down for MY 2012/13. Norway’s pear suppliers are the Netherlands and Belgium. Exports to Norway have been stable for the past 5 years; no change is expected for MY2012/13. Albeit still very small, exports to China further grew in MY 2011/12 to 481 MT, due to an agreement with Belgium. EU exports to Hong Kong have tripled to 2,647 MT during the past two years. Since Conference pears are considered to be expensive, exports are expected to stabilize in MY 2012/13. Pears - Prices Because of the expected lower availability resulting from decreased production this year, prices are up. Pears – Withdrawal from market The situation is the same as with apples. Please refer to the respective paragraph in the section of this report for detailed information. Pears – Additional Information For information on tariffs, maximum residue levels, labeling requirements please see the respective sections at the end of the report. Concentrated Apple (CAJ) Juice Coordinated by Ferenc Nemes/FAS Budapest CAJ – Production The seven largest apple juice concentrate (CAJ) producers of the European Union are Poland, Germany, Italy, Hungary, Spain, Romania, and Austria. They account for nearly all EU production. European CAJ production was estimated 522,000 MT in MY 2011/2012. Forecasts indicate a 1.1 percent increase in volume of apples for processing for MY 2012/13, despite 9 percent drop of the total apple crop. This is driven by low CAJ stocks and resulting high prices. In addition, drought, hailstorms and other unfavorable weather conditions that hit the main production countries during the year led to a higher percentage of lower quality fruits. The forecasted increase of apple processing in MY 2012/13, is the highest in the eastern European member states, where CAJ is the leading product from apple processing. Longer term, EU-27 CAJ production is declining. Growing energy prices and soaring raw material prices limit margins. On the demands side, consumer preferences are turning towards new tastes. In the trendy flavored juice mixes market, the relatively expensive CAJ is increasingly substituted by grape and pear juice concentrates. CAJ – Consumption Main user of CAJ is the fruit juice industry in apple or blended soft drinks and smaller extent is cider making. Consumption of fruit/vegetable juices decreased in most West European Countries as the market became saturated and competition from other soft drinks grew. Some new member states, however, still see growth due to lower initial per capita consumption levels. Main competitors to fruit based beverages in developed markets are ready-to-drink (RTD) teas, functional drinks, and energy drinks. There are regional differences though. According to Euromonitor, fruit and vegetable juice sales in Western Europe decreased by 2.6 percent between 2005 and 2010 but sales in Eastern Europe grew by 17.4 percent during the same period. With regard to taste, apple juice ranks third in terms of importance behind orange and flavor mixes in Europe. Austria, Slovenia, Germany, Denmark and some other countries form an “apple juice belt” where the share of apples of the total fruit juice consumption represents 20-30 percent and above according to the analysis of the European Fruit Juice Association. However, in the breakdown of the total category (juices, nectars, drinks etc.) orange overtook apple in Germany for the first time in 2009. Table 9: Annual Per Capita consumption of Select Juices and Fruit Drinks in Germany (in liter) 2000 2005 2009 2010r 2011p % Change Apple Juice 12.20 12.42 8.50 8.10 8.00 -1.23% Orange Juice 9.53 8.93 9.00 8.65 8.20 -5.20% Grape Juice 1.32 1.29 1.00 1.00 1.00 0.00% Grapefruit Juice 0.39 0.36 0.30 0.30 0.30 0.00% Pear Juice 0.18 0.25 0.20 0.20 0.20 0.00% Vegetable Juice 0.96 1.35 1.20 1.20 1.20 0.00% Citrus Nectar 7.75 7.26 6.50 6.00 5.70 -5.00% Other Juice/Nectar 8.31 8.18 10.30 10.80 10.40 -3.70% Total 40.64 40.04 37.00 36.25 35.00 -3.45% r = revised p= preliminary Source: VdF, Association of the German Fruit Juice Industry, Annual Report 2011, page 32. The apple flavor is also popular in the juice consumption in the Netherlands (28 percent) and the UK (24.5 percent). Italy and Spain are strong producers and net exporters of CAJ but apple juice took only 5.7 percent and 4 percent of pure fruit juice sales in 2008,according to Euromonitor. In the premium segment (100 percent juice, nectar) CAJ utilization is reduced by the growth of “non reconstituted” (NR) juices made of fruit. Beyond the increasing health consciousness of consumers, growing costs of from-concentrate juice making also contributed to reduce the price divide between the from–concentrate and NR liquid fruit juices. According to Prognosfruit, while sales in the total fruit juice segment dropped by 1.9 percent in 2011, consumption of NR indicated 6.7 percent in the EU average. Home extraction of fruit juice, bars and health food vendors offer new consumption “culture” on the basis of the all year availability of seasonal fruit. According to fruit juice association estimates, about 20 percent of German apple juice production is bottled directly, while 80 percent are further processed into CAJ. Cider market in Europe indicates better growth rate than the declining fruit juice. Apple and pear based cider became competitors to beer in the UK, Ireland, the Scandinavian countries and in Poland. According to the analysis of AIJN European Fruit Juice Association the production of the annual 1,520 million liter (2011) cider and perry took more than 124,000 MT CAJ equivalent. CAJ – Trade Of the EU-27 countries Germany, the Netherlands, Austria, the UK, and Denmark are the biggest consumers of CAJ. These countries belong to the major producers of apple juice concentrate as well. Poland, Hungary, Italy, and Spain form the group of big net suppliers of the EU with CAJ. About half of the EU-27 CAJ utilization is from (extra EU) imports. China remained the dominant source of the imports in MY 2011/2012 however China’s sales to the EU dropped to 52,400 MT. This volume takes 28 percent of the total imports a drop from more than 50 percent market share five years earlier. In the last years, China increased its CAJ exports to Russia and the USA most. About half of China’s CAJ is destined for the U.S. market. The revocation of anti-dumping process and the free access to the U.S. market since November 2010 contributed to the decline of China CAJ sales to the European Union. Alternative CAJ import sources for the EU have emerged in the last two years. Sales from Turkey increased most, Ukraine and Moldova could stabilize their position among the five biggest suppliers to the shrinking EU market. Switzerland, Brazil, and Serbia are also important sources for apple juice concentrate imports of the EU. Chart 3: EU-27 Concentrated Apple juice Imports by Country Source: FAS Budapest based on GTA data Chart 4: EU-27 Concentrated Apple Juice Imports by Country of Origin Source: FAS Budapest based on GTA data CAJ exports of the EU-27 are about 10 percent of its annual production. Export volumes are relatively stable, with some annual fluctuations. Major destinations of external sales are Norway, Japan, Saudi Arabia, and other Gulf countries. CAJ – Prices Low CAJ stocks in Europe, poor crop in 2011, and modest export of China drove international prices up from 800-1,200 USD/MT to around 1,700 USD by the end of MY 2010/11. In the last Marketing Year 2011/12, this high price level has been stabilized as it is shown by Chart 5. According to “Prognosfruit” Conference studies apple concentrate prices will run high for MY 2012/2013 as well because of low opening CAJ stocks, increasing production costs, and only limited production increase in Europe (in Poland and Hungary first of all). Prices of concentrate in China are also set high in fall of 2012. Chart 5: Prices of CAJ imported to the EU-27 by country of origin September, 2011-July, 2012 Table Grapes Coordinated by Ornella Bettini/FAS Rome Table 10: EU-27 PSD for Table Grapes Grapes, Fresh EU-27 2010/2011 2011/2012 2012/2013 Market Year Begin: Jun 2010 Market Year Begin: Jun 2011 Market Year Begin: Jun 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 123,882 122,729 122,797 117,475 115,775 Area Harvested 119,706 117,982 119,323 114,197 112,470 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total Trees 0 0 0 0 0 Commercial Production 2,073,765 2,077,323 2,046,600 2,033,427 1,959,654 Non-Comm. Production 13,500 12,200 11,000 10,250 9,800 Production 2,087,265 2,089,523 2,057,600 2,043,677 1,969,454 Imports 542,973 568,078 555,000 548,144 575,962 Total Supply 2,630,238 2,657,601 2,612,600 2,591,821 2,545,416 Fresh Dom. Consumption 2,497,344 2,543,169 2,491,600 2,458,937 2,405,866 Exports 132,894 114,432 121,000 132,884 139,550 For Processing 0 0 0 0 0 Withdrawal From Market 0 0 0 0 0 Total Distribution 2,630,238 2,657,601 2,612,600 2,591,821 2,545,416 HA, MT Source: FAS EU-27 Table grapes – Production The European Union is a world leader in table grape production, together with China and Iran. Italy, Spain, and Greece account for 93 percent of EU-27 table grape production. After a dramatic fall in the last decade, EU-27 table grape area continues to decrease. Reduced profitability, due to increasing production costs and strong competition from other suppliers are the main factors behind the drop. MY 2012/13 (June/May) EU-27 table grape production is forecast to decrease slightly by 3.6 percent to 1.9 MMT. Table 11– EU-27 Table Grapes Production by Country and Year (‘000 MT) 2010 2011 2012 Italy 1,361 1,343 1,276 Spain 237 290 277 Greece 328 260 275 Other EU member statess 163 151 141 Total 2,089 2,044 1,969 Source: FAS EU-27 Italy ranks 6th in world’s table grape production and 3rd among table grape exporters, behind Chile and the United States. Italian table grape production is concentrated in Southern Italy, mainly in Apulia and Sicily, which account for 75 and 25 percent of the domestic production, respectively. Italia, Victoria, and Red Globe are the main varieties in Italy, covering about 66 percent of the table grape area. In the last few years, Italy has gradually moved to seedless grapes cultivation, to an increasing demand from intra and extra EU markets. Sugraone and Crimson are the most popular seedless varieties followed by Thompson, Centennial, and Sublime. MY 2012/13 Italian table grape production is estimated to decrease slightly because of summer drought that negatively affected the growth of mid to late maturing varieties, thus reducing fruit size. However, sugar content of the grapes, which is forecast to be particularly high. Early varieties (Victoria and Black Magic) from Sicily are reported to have excellent quality, color, and sugar content. Early varieties are sold at higher prices from May to the end of July. They are grown using the overhead table grape vineyard system (“tendone” training system): polyethylene sheets are draped over the vines in spring to accelerate fruit growth through a greenhouse effect. For medium and late varieties (Italia, Palieri, Pizzutello Bianca, and Red Globe) - from Sicily, Abruzzo, Apulia, Basilicata, and Sardinia - the harvest occurs from August to December. Chart 6: Average farm gate prices table grapes in Italy (Euro/kg) Source: ISMEA, Agricultural Marketing Center In Spain, following last year’s record crop, MY 2012/13 table grape production is estimated down by 4 percent. There are approximately 13,600 hectares currently cultivated with table grapes in Spain. The main producing areas include the Region of Murcia, the Comunidad Valenciana, and Andalusia. Murcia and Alicante account for 70 percent of the total production area. Over 50 table grape varieties are commercialized in Spain. Aledo, Ideal, Muscatel, Dominga, and Napoleon are the main ones. Seedless varieties represent 30 percent of total table grape production and are mainly produced in the Region of Murcia. Greece is the EU’s third largest producer of table grapes. According to industry estimates, MY 2012/13 table grape production is estimated to be satisfactory despite the severe drought from mid July to the last week of August that negatively affected fruit ripening. The main producing areas include the prefectures of Corinth in Peloponnese; Kavala in Macedonia; and, Heraklion on the island of Crete. Sultana (Thompson Seedless) and Victoria are the main varieties. Table Grapes – Consumption Despite the enduring economic crisis, EU-27 fresh grape consumption has been rather stable in recent years and stands at about 2.4 MMT, although still fluctuating as a function of domestic production. From June-December, EU-27 table grape consumption is mostly met by domestic production, along with minor quantities coming from Egypt, Turkey and Morocco. Imports from third countries―normally coming in the first half of the calendar year from the Southern hemisphere―represent 26 percent of total consumption. Italy is the leading table grape consumer in the EU-27, followed by Germany, the United Kingdom, France, and Spain. Despite the fact that Italian seeded grapes are still appreciated, experts claim that seedless varieties are increasingly being demanded by EU-27 consumers. Farmers often replacing ageing seeded varieties with seedless ones. Table Grapes - Trade The EU-27 is a net importer of fresh table grapes. MY 2012/13 EU-27 imports are likely to increase by 5 percent. Table 12 – EU-27 Table Grapes trade Balance (MY June-May) 1000 Tons mil $ 2009/2010 2010/2011 2012/2013 2009/2010 2010/2011 2012/2013 Import 569 548 576 1,384 1,446 1,396 Export 114 133 140 206 245 260 Balance -455 -415 -436 -1,178 -1,201 -1,136 Source: GTA South Africa and Chile are the leading suppliers to the EU market, followed by Egypt, Brazil, Peru, India, and Turkey. The largest EU-27 importing countries remain the Netherlands, Germany, and the United Kingdom. The Netherlands serves mainly as a transshipment point. EU-27 table grape exports –mostly to Russia (31 percent) and Switzerland (21.5 percent)- are expected to continue to increase. Germany, France, and Poland continue to be the main destinations for Italian table grapes. Spain, the Netherlands, Chile, Egypt, and Peru are the main suppliers to the Italian table grape market. Spain is a net exporter of table grapes and over 90 percent of its exports are destined to the EU- 27 (United Kingdom, Germany, and Portugal). Italy and Chile are the main suppliers to the Spanish market. Greek table grapes (both seedless and seeded) are marketed within Europe from late July to the end of September. Germany, The Netherlands, and the United Kingdom represent the main destinations for Greek table grapes, accounting for 65 percent of the total. Chart 7: EU-27 main table grapes import partners (‘000 MT, MY June-May) Source: GTA Chart 8: EU-27 main table grapes export partners (‘000 MT, MY June-May) Source: GTA Policy Coordinated by Tania DeBelder/USEU/FAS Brussels Common Market Organization for Fruits and Vegetables The EU Common Market Organization for Fruits and Vegetables was last changed in 2007. The aim was to bring the fruit and vegetable sector in line with other agricultural sectors covered by the Common Agricultural Policy (CAP). Council Regulation 1234/2007 established a single common market organization (CMO) for all agricultural products and the policy changes for fruit and vegetables were incorporated into the single CMO by Council Regulation 361/2008. The old-style production-linked payments have been replaced by decoupled payments. The shift from production support to direct aid to producers was designed to improve the competitiveness, market orientation, and sustainability of the sector. As of 2012, all payments are decoupled from fruit and vegetable production. Producer Organizations (POs) are key to the operation of the EU's CMO for fruit and vegetables. POs are legal entities established by producers to market commodities. EU subsidies are not paid to individual producers but are channeled through POs. In order to qualify for EU subsidies, POs must submit an operational program to the Commission that includes provisions for an operational fund partly (50 percent) financed by producers. The EU contributes to the POs operational fund directly. The calculation of the estimated amount of contribution to the operational fund is based on the operational program and the value of marketed production. All the implementing rules of Council Regulation 1234/2007 have been incorporated in Commission Implementing Regulation 543/2011. The Commission Implementing Regulation 701/2012 amended the crisis adaptation measures in Commission Implementing Regulation 543/2011 since August 2012 and was introduced as part of the ongoing CAP reform. On the request of Spain, Italy, and France, the Commission decided to improve the functioning of the crisis management system in the fruit and vegetable sector in the run-up to the entry into force of the CAP reform expected in 2014. The regulation also aims to make rules more flexible on green harvesting and non-harvesting. For information on the CAP after 2014, please see: The Commission has agreed to add compensation payments for withdrawing certain products. The amounts of aid per kilo paid to POs for products withdrawn from the market have been increased for certain products. These amounts have been set at levels that guarantee withdrawals become an effective instrument in times of crisis, whilst avoiding these kinds of withdrawals being made in normal market situations. The amounts have been increased to a minimum 20 percent of EU average prices for winter tomatoes, grapes, apricots, pears, aubergines, and melons. The amount of support if the product is distributed for free has been increased to a level that is 30 percent above average EU prices, affecting the products mentioned above, as well as cauliflowers, apples, watermelons, clementines, and lemons. The regulation also improves implementation of the entry price system in force for imports of fruit and vegetables from non-EU countries by enhancing traceability of imported consignments from third countries in order to guarantee the effective functioning of the system and prevent fraud. EU Marketing Standards for Fruits and Vegetables The Commission implementing Regulation (EU) No 543/2011 provides for a general marketing standard for all fresh fruits and vegetables, repealing Commission Regulation 1221/2008. Specific marketing standards are still in place for ten products, including apples and pears. The specific marketing standards are set out in Part B of Annex I to this Regulation. The specific marketing standards for apples can be found in Part 1 of that same section on page 95 and for pears in Part 6 on page 129. Fresh fruit and vegetable imports into the EU are checked for compliance with EU-harmonized marketing standards. These standards apply at all marketing stages and include criteria such as quality, size, labeling, packaging, and presentation. Certification of Fruit Shipments Plant products need a phytosanitary certificate to be exported to the EU. Phytosanitary certificates issued by an APHIS inspector are required to accompany fruit, vegetable, and nut shipments. APHIS issues phytosanitary certificates in accordance with international regulations established by the International Plant Protection Convention of the Food and Agriculture Organization of the United Nations. This standard-setting body coordinates cooperation between nations to control plant and plant product pests and to prevent their spread. Council Directive 2000/29/EC contains provisions concerning compulsory plant health checks. This includes documentary, identity, and physical plant health checks to verify compliance with EU import requirements. More information can be accessed on DG Health and Consumer Protection's website . Commission Regulation 1756/2004 provides for plant health checks to be carried out at reduced frequency when justified. The list of products recommended for plant health checks at reduced levels was updated June 29, 2011. School Fruit Scheme A key objective of the changes made to the Fruit and Vegetable regime was to reverse declining consumption of fruit and vegetables. The European School Fruit Scheme (SFS) is one measure to use increased fruit consumption to combat child obesity. Commission Regulation 288/2009, last amended by Commission Implementing Regulation 1208/2011, lays down the rules for applying Council Regulation 1234/2007 as regards Community aid for supplying fruit and vegetables, processed fruit and vegetables and banana products to children in educational establishments. These SFSs include three elements: free distribution of fruit and vegetables in schools, a series of accompanying measures, such as information campaigns on healthy eating habits, and monitoring and evaluation. The SFS aims to provide fruit and vegetables to school children from the start of the school year. The SFS makes €90 million of EU funds available to provide fruit and vegetables to school children to be matched by national and private funds. The 2012/2013 school year is the fourth year of the program and Commission implementing decision from March 2012, allocates the €90 million of EU funds to the 24 participating Member States (Sweden, Finland and UK have opted not to participate). The main beneficiaries of the scheme in 2012/2013 are Italy, who is set to receive over € 20.5 million, followed by Germany (€ 11.6 million), Romania (€ 9.8 million), Poland (€ 9.2 million), France (€ 5.6 million), and Spain (€ 4.8 million). Based on the member state evaluations and an
Posted: 24 November 2012

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