Tree Nuts Annual 2012

An Expert's View about Tree and Bush Fruits and Nuts in France

Posted on: 29 Sep 2012

This report presents the situation and outlook for tree nuts (almonds, hazelnuts, walnuts and pistachios) in the EU-27.

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: 9/17/2012 GAIN Report Number: SP1233 EU-27 Tree Nuts Annual 2012 Approved By: Robert Hanson Agricultural Counselor Prepared By: Arantxa Medina Marketing and Management Specialist Report Highlights: The United States is the most important supplier of nuts to the European Union. Over the last decade, U.S. nut exports to the EU went from $515 million in 2001 to $1.6 billion in 2011. In MY 2012/13, almond production in the EU is expected to reach 96,381 MT, higher than the previous year due to better results in Spain and Greece. Walnut production is expected to reach 59,500 MT, a lower figure after the excellent crop in France in the previous year. Hazelnut production is expected to reach 117,340 MT. Pistachio production is expected to increase by 20 percent to 7,530 MT, due mainly to increased area and production in Greece. Disclaimer: This report presents the situation and outlook for tree nuts (almonds, hazelnuts, walnuts and pistachios) in the EU-27. This report presents the views of the authors and does not reflect the official views of the U.S. Department of Agriculture (USDA). The data are not official USDA data. This report would not have been possible without the valuable expert contributions from the following Foreign Agricultural Service analysts: Marie-Cecile Henard, FAS/Paris covering France Mila Boshnakova, FAS/Sofia covering Bulgaria Ornella Bettini, FAS/Rome covering Italy and Greece Marcel Pinckaers, FAS/The Hague covering the Benelux Gerda Vandercammen, FAS/USEU Brussels Abbreviations and definitions used in this report Conversion factors: conversion factor is used to convert shelled to in-shell tree nuts. Almonds: 3.3 Hazelnuts: 2.03 Walnuts: 3.3 Pistachios: 1.5 GTA Global Trade Atlas Ha hectare; 1 ha = 2.471 acres HS Codes: Harmonized System codes for commodity classification used to calculate trade data. Almonds: Shelled 080212; In-shell 080211 Walnuts: Shelled 080232; In-shell 080231 Filberts/Hazelnuts: Shelled 080222; In-shell 080221 Pistachios: 080250 MT Metric ton = 1,000 kg EU MS European Union Member State(s) MY Marketing year Almonds: September/August Walnuts: October/September Hazelnuts: September/August Pistachios: September/August USD U.S. Dollar (Exchange rate at time of publishing €1=US$ 1.28) EU-27 Tree Nuts Annual 2012 2 Executive Summary: United States and EU: important trading partners The EU continues to be the most important export market (31 percent) for U.S. tree nuts. Other important markets are East Asia (29 percent), China & Hong Kong (20 percent) and the Middle East (13 percent). Within the EU, the most important trade partners for U.S. tree nuts are in order of importance; Spain, Germany and the Netherlands. Last year, EU imports of tree nuts totaled about 700,000 MT. The U.S. continues to be the largest supplier by far, with a 42 percent market share. Turkey ranks second with a market share of 15 percent, followed by Vietnam, the Philippines and India. Almost 30 percent of EU tree nuts imports concern the import of almond and another 16 percent hazelnuts. The United States is especially an important trade partner to the EU for supplying almonds, pistachios and walnuts where the U.S. has a market share of respectively 94, 64 and 63 percent. Changing EU consumer The EU population totals about 500 million with an average GDP per capita of around USD 30,000. Consumers in the EU-27 are now more than ever interested in food. They want to make more informed purchasing and consumption decisions. Variety, convenience, nutrition and health are - besides price - other important factors for making purchase decisions. These factors have an impact on the consumption of tree nuts. In addition, the shopping pattern is changing as a result of the snack and grazing culture. Innovative convenience stores are more and more competing with foodservice outlets. Consumers are also buying increasingly private labeled products, especially in those markets that have a highly consolidated food retail structure. Finally, the market for sustainable food is, albeit small, one of the most important growth markets. Food processing and snack industry are key buyers of tree nuts The European food processing and snack industry are the large users of tree nuts. Almonds are mainly used as an ingredient for producing marzipan, nougat, turron (Spanish confection) and many other pastries and sweets. They are also used to manufacture almond butter and paste. Hazelnuts are mainly used in confectionary to make praline and also, in combination with chocolate, for chocolate truffles. Due to the fact that hazelnut oil is strongly flavored and the kernels of walnuts are rich in oil, both are often used for manufacturing cooking oil. Pistachio nuts are used as an ingredient for manufacturing ice cream and confectionary products (such as baklava and mortadella). When roasted, salted or mixed, tree nuts are a popular snack. Due to changing lifestyles, people are more and more realizing that nuts can be enjoyed at various occasions and different places. Dinner for instance offers potential for tree nuts, where they can be used as an ingredient and as garnish due to their taste, quality, versatility and convenience. Expanding business in EU market Since the EU is an important market for U.S. tree nuts, exporters are exploring ways to expand their overseas business. One way can be visiting or exhibiting at trade shows. Europe’s leading trade show for tree nuts is Fruit Logistica, which takes place in February in Berlin, Germany. These shows provide an excellent platform to meet future importers of tree nuts. Other important trade shows in Europe EU-27 Tree Nuts Annual 2012 3 include Sial, Anuga, Food Ingredients, Health Ingredients, Vitafoods, PLMA Amsterdam and Biofach. Finally, it would be advisable for new-to-the-market exporters to have a look at the EU-27 Food and Agricultural Import Regulations and Standards report and the Exporter Guides produced at the various EU FAS Offices, US cooperators active in the EU Trade associations like the Almond Board of California, the California Pistachio Export Council, Western Pistachio Association/CalPure Pistachios and California Walnut Commission are active in the EU market. These trade associations, or so-called cooperators, in cooperation with FAS offices all over Europe, continuously work to further develop the market for tree nuts. EU-27 Tree Nuts Annual 2012 4 Commodities: Almonds, Shelled Basis Production: The EU is one of the world’s leading producers and consumers of almonds. In terms of origin, the United States is by far the largest producer, contributing to approximately 85 percent of the total world almond supply. Spain holds the position as the main EU producer. Other major EU almond producers are Italy and Greece. Spanish production has historically fluctuated greatly and it is not expected to increase its production significantly in the long term. This is due mainly to the declines in EU agricultural support programs and the continuing urbanization of traditional production areas. For MY 2012/13, the latest official forecast published by the Ministry of Agriculture, Food and Environment (MAGRAMA) show an estimated production figure of 69,636 MT (shelled basis), an increase of 6.4 percent compared to previous year’s crop. In general the crop has been good, though in some areas, the early varieties were affected by frosts and the lack of rain and in other areas affected some the flowering of some species. According to the MAGRAMA statistics, the regions that registered the most significant increases were Andalucia (+19.4 percent), Comunidad Valenciana (+18.9 percent) and Castilla La Mancha (+10.7 percent). MY 2012/13 almond production is expected to decrease from the previous year to around 4,545 MT. Due to strong competition, almond cultivation in Italy is becoming less and less profitable. Almond orchards are often located in less favored areas, where mechanization is not always feasible, additionally, old orchards, lack of investments and traditional production techniques have not allowed for high and constant yields over the years. Moreover, due to decreasing profitability, many farmers have been abandoning this crop or shifting to other crops (e.g., citrus fruit, wine grapes, horticultural products) that allow them to earn higher margins. For these reasons, planted area is forecast to further decline in the future. Almond cultivation in Greece has a long tradition and history. According to industry estimates, there are approximately 40,000 hectares currently cultivated for almonds, including all types of systematically cultivated orchards and a large number of scattered trees, which yield about 1,200 MT annually that is mostly for own consumption. The main almond producing areas include five prefectures (Katerini, Serres, Kavala, Magnisia, and Larissa) of Central Macedonia and Thessaly, located in northern Greece. The quality of Greek almonds is considered excellent and the most popular varieties are Ferragnes, Texas, Troito, and Retsou. The Ferragnes variety is growing in popularity and is replacing many traditional ones. MY 2012/13 Greek almond production is forecast to recover in terms of both quantity and quality. MY 2011/12 has been characterized as one of the worst years of the last 15 years, in terms of volume and low prices. In fact, heavy frost in December and adverse conditions in March heavily damaged the crop in the main producing areas, reducing the harvest by 60-70 percent. EU-27 Tree Nuts Annual 2012 5 Table 1. Major EU Almond Producers by Volume in MT (Shelled Basis) COUNTRY MY 2010/11 MY 2011/12 MY 2012/13 Spain 67,333 65,454 69,636 Italy 6,000 5,000 4,545 Greece 12,000 10,000 14,000 Source: FAS Europe Offices Consumption: Per capita consumption of tree nuts in Greece at 17 kilos/year is the highest in the EU and one of the highest in the world, followed by Spain and Italy. Almonds represent an important component of the Mediterranean diet and are consumed mainly as a snack food, and to a lesser extent, as an ingredient for confectionary products, such as ice cream and chocolate. Traditionally almonds are characterized by their good taste and high quality and are regarded as a healthy snack. Consumption patterns depend on factors such as dietary habits, income level and tradition. EU almond consumption absorbs not only domestic production, but also imported quantities. Tree nuts imports are indispensable for EU consumers. U.S. almonds imports are utilized in a variety of ways – for direct consumption, for processing into added value nuts, as food ingredients (almond flour, diced or sliced) and for processing in the confectionary industry. Trade: Imports In MY 2010/11, 95 percent of total EU-27 imports originated in the United States, making the U.S. the number one almond supplier by far, mainly exporting shelled or peeled almonds. U.S. almonds face competition in the EU from locally grown almonds, particularly from Spain. U.S. almonds will likely continue to enter the EU market with highly competitive prices, influenced by the new record crop in California forecasted by the National Agricultural Statistics Service for 2012. The major EU-27 importers by volume are Spain, Germany and the Netherlands. Almond imports are mainly destined for the confectionary, ice cream and chocolate industries. Nut crops are less perishable than other fruits. Therefore, in many countries, almond imported quantities are destined not only for domestic consumption, but - after being stored, processed, and packaged - they are re-exported to third countries throughout the year. Table 2. EU-27 Imports of Almonds by Origin in MT (Shelled Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 United States 187,107 185,455 192,274 Australia 6,361 4,292 6,192 Morocco 1,503 1,875 1,733 Chile 2,057 1,160 448 EU-27 Tree Nuts Annual 2012 6 Syria 148 391 299 Canada 332 109 257 Others 1,063 1,048 961 TOTAL EXPORTS 198,571 194,330 202,164 Source: GTA Exports The top destinations for EU-27 almonds in MY 2010/11 were Ceuta (an Autonomous city of Spain in the North of Africa), Switzerland and the United States and Russia. The largest almond exporter is Spain and Spanish exports are destined mainly for other EU MS. Table 3. EU-27 Exports of Almonds by Destination in MT (Shelled Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 Ceuta 3,607 1,682 2,237 Switzerland 1,662 1,654 1,799 United States 605 542 1,266 Russia 556 739 1,075 Algeria 476 537 482 Turkey 137 420 443 Others 3,090 3,980 4,147 TOTAL EXPORTS 10,133 9,554 11,449 Source: GTA EU-27 Tree Nuts Annual 2012 7 Production, Supply and Demand Data Statistics: 2010 2011 2012 2010/2011 2011/2012 2012/2013 Almonds, Market Year Begin: Market Year Begin: Market Year Begin: Shelled Basis Sep 2010 Sep 2011 Sep 2012 EU27 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 711,597 0 710,187 0 710,134 (HA) Area Harvested 0 693,638 0 678,112 0 681,009 (HA) Bearing Trees 0 0 0 0 0 0 (1000 TREES) Non-Bearing Trees 0 0 0 0 0 0 (1000 TREES) Total Trees 0 0 0 0 0 0 (1000 TREES) Beginning Stocks 1,600 30,000 300 30,000 0 30,000 (MT) Production 91,000 93,010 90,000 88,896 0 96,381 (MT) Imports 220,000 240,000 (MT) 202,164 205,000 0 200,000 Total Supply 312,600 325,174 330,300 323,896 0 326,381 (MT) Exports 12,500 11,449 13,000 12,000 0 11,000 (MT) Domestic Consumption 299,800 283,725 317,000 281,896 0 285,381 (MT) Ending Stocks 300 30,000 300 30,000 0 30,000 (MT) Total Distribution 312,600 325,174 330,300 323,896 0 326,381 (MT) Source: FAS Europe Offices EU-27 Tree Nuts Annual 2012 8 Commodities: Walnuts, Inshell Basis Production: France is a net exporter of in-shell walnuts, with 85 percent of exports directed to the EU in 2011, where Italy, Spain and Germany are France’s leading customers. France’s exports of in-shell walnuts skyrocketed in 2011 at almost 30,000 MT, due to the significantly higher domestic production than in the previous year. For MY 2012/13, the walnut harvest production figure for France is expected to be relatively lower than in previous MY, around 35,000 MT. Italy lost its walnut market leadership a few decades ago and is now a major importer, mainly from the United States. Most walnuts are cultivated in southern Italy (i.e., the Campania region), where the main varieties are Sorrento and Malizia. Because farmers generally grow walnut trees for both timber and nuts, nut yields and quality have suffered. Higher input costs and lower prices have negatively affected crop profitability. As a result, Italian walnut production supplies about 20 percent of domestic requirements and the remainder is imported. Some farmers in northern have established efficient and profitable walnut orchards, where orchards planted with the Chandler and Lara varieties yield about 4.2 MT/ha (in shell, dried). MY 2012/13 walnut harvest is forecast at 10,500 MT, which represents the average production in Italy. MY 2011/12 has been an exceptional year in terms of quantity. On average, quality is expected to be good. Experts estimate that normally around 25 percent of northern harvest is only suitable for processing. In Spain, the MARM has not yet published the official walnut production data for MY 2012/13. Therefore, if weather conditions are favorable, we can expect an average production of 12,000 MT for current MY. Table 4. Major EU Walnut Producers in MT (In-shell Basis) COUNTRY MY 2010/11 MY 2011/12 MY 2012/13 France 30,855 38,346 35,000 Italy 15,000 12,000 10,500 Spain 13,378 12,200 12,000 Source: FAS Europe Offices Consumption: Walnuts are mainly purchased in winter time both in in-shell and shelled shape for fresh consumption. More consumers are increasingly purchasing walnuts all year round due to their perceived nutritional benefits. Walnut consumption in the EU falls into several categories: as a snack; an ingredient in home cooking; by-products for further processing and as ingredient in the pastry and bakery industry. Trade: EU-27 Tree Nuts Annual 2012 9 Imports The wide gap between EU walnut production and imports provides an excellent opportunity for walnut exporters. The United States is the number one supplier of walnuts, both in-shell and shelled. The EU imports various types of nuts for direct consumption as well as for further processing and re- export within the region in different forms, such as salted, baked, fried and mixed nuts. Table 5. EU-27 Imports of Walnuts by Origin in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 United States 90,549 101,548 121,288 Moldova 18,136 21,509 21,557 Chile 17,897 16,047 17,570 Ukraine 9,339 11,732 17,455 India 19,671 18,411 12,152 China 5,473 4,328 8,020 Others 2,513 2,664 4,316 TOTAL IMPORTS 163,578 176,239 202,358 Source: GTA Exports The top destinations for EU-27 walnuts in MY 2010/11 were Switzerland, Moldova and Croatia. Table 6. EU-27 Exports of Walnuts by Destination in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 Switzerland 2,260 2,605 3,018 Moldova 2,509 3,734 2,734 Croatia 2,756 2,993 1,958 Turkey 4,759 4,890 1,933 Norway 520 532 839 Bosnia & Herzegovina 2,350 1,680 790 Others 10,933 12,048 4,267 TOTAL EXPORTS 26,087 28,482 15,539 Source: GTA EU-27 Tree Nuts Annual 2012 10 Production, Supply and Demand Data Statistics: 2010 2011 2012 Wa 2010/2011 2011/2012 2012/2013 lnuts, Market Year Market Year Market Year Inshell Basis Begin: Oct 2010 Begin: Oct 2011 Begin: Oct 2012 EU27 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 35,491 0 36,003 0 36,003 (HA) Area Harvested 0 33,812 0 34,324 0 34,724 (HA) Bearing Trees 0 0 (1000 0 0 0 0 TREES) Non-Bearing Trees 0 0 (1000 0 0 0 0 TREES) Total Trees 0 0 (1000 0 0 0 0 TREES) Beginning Stocks 5,000 40,000 5,000 40,000 0 40,000 (MT) Production 59,000 60,495 60,000 64,952 0 59,500 (MT) Imports 140,200 202,358 150,000 195,000 0 195,000 (MT) Total Supply 204,200 302,853 215,000 299,952 0 294,500 (MT) Exports 13,100 15,539 15,000 15,000 0 15,000 (MT) Domestic Consumption 186,100 247,314 195,000 244,952 0 239,500 (MT) Ending Stocks 5,000 40,000 5,000 40,000 0 40,000 (MT) Total Distribution 204,200 302,853 215,000 299,952 0 294,500 (MT) Source: FAS Europe Offices EU-27 Tree Nuts Annual 2012 11 Commodities: Filberts, Inshell Basis Production: In the text below, we will refer to filberts as hazelnuts, the term most commonly used in international marketing. Italy is the second largest hazelnut producer in the world (13.5 percent of total output) ahead of the United States but behind Turkey, whose huge supply dominates the world market. Italian hazelnut producers have increasingly improved their production techniques (irrigation, fertilization, pesticide use, and mechanization) enhancing yield and maintaining Italy’s competitiveness in the world market. The average farm net revenue fluctuates between €2,500 and 3,000/ha. Hazelnut production is spread around Italy with concentrations in the Piedmont region in the north, Viterbo province in the center, the Sicily region, and Avellino province in the South. MY 2012/13 hazelnut production is forecast to decrease by 22 percent compared to the previous year because of the dryness. Furthermore, the production decrease is also linked to the cyclical swings in yields which make MY 2012/13 a ‘down’year. In general, planted area should be close to 70,000 hectares as in MY 2011/12. Spain also produces a significant quantity of hazelnuts. The Spanish production of hazelnuts in is concentrated in Catalonia and more specifically in the Reus area, in the Tarragona province. The latest forecast published by the MAGRAMA shows an estimated production figure of 16,900 MT, similar to previous year’s crop. Table 7. Main EU Hazelnut Producers in MT (In-shell Basis) COUNTRY MY 2010/11 MY 2011/12 MY 2012/13 Italy 93,644 128,947 100,000 Spain 15,086 16,300 16,900 Source: FAS Europe Offices Consumption: Domestic EU hazelnut production supplies less than 40 percent of local demand for snack and industrial purposes. Domestic demand is met by imports -- mainly from Turkey. In general, hazelnuts are sold both in-shell and shelled shape. In-shell hazelnuts are generally sold as a snack for fresh consumption while shelled ones, both whole and milled nuts, are usually employed as a raw material for confectionary and bakery food companies. Furthermore, low quality shelled hazelnuts are often used by cosmetic companies. In countries such as Italy, approximately 90 percent of the harvest goes to processing companies whereas fresh consumption represents the remaining 10 percent. Trade: Imports EU-27 Tree Nuts Annual 2012 12 In MY 2010/11, Chile passed the United States as the main supplier of in-shell hazelnuts to the EU. However, when total imports are converted to in-shell basis, the United States falls to the fifth position in MY 2010/11. Shelled or peeled hazelnuts are imported mainly from Turkey, the world’s dominant producer. Italy is the second world producer and exports mainly to other EU MS. Table 8. EU-27 Imports of Hazelnuts by Origin in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 Turkey 201,524 181,354 228,940 Georgia 14,531 16,008 19,346 Chile 2,621 2,161 4,332 Azerbaijan 2,785 11,743 3,565 United States 1,711 3,436 1,774 Others 733 535 362 TOTAL IMPORTS 223,905 215,237 258,319 Source: GTA Exports The top destinations for EU-27 hazelnuts in MY 2010/11 were Switzerland and Hong Kong. Most of the hazelnut trade occurs within the EU. The major exporters are Italy, Germany and Spain. Table 9. EU-27 Exports of Hazelnuts by Destination in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 Switzerland 4,121 4,581 3,181 Hong Kong 462 11 1,472 Brazil 817 662 678 Norway 1,325 882 549 Croatia 497 629 469 Others 7,213 3,906 3,176 TOTAL EXPORTS 14,435 10,671 9,525 Source: GTA EU-27 Tree Nuts Annual 2012 13 Production, Supply and Demand Data Statistics: 2010 2011 2012 2010/2011 2011/2012 2012/2013 Filberts, Market Year Begin: Market Year Begin: Market Year Begin: Inshell Basis EU2 Sep 2010 Sep 2011 Sep 2012 7 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 85,042 0 85,270 0 85,270 (HA) Area Harvested 0 81,451 0 81,748 0 81,440 (HA) Bearing Trees 0 0 (1000 0 0 0 0 TREES) Non-Bearing (1000 Trees 0 0 0 0 0 0 TREES) Total Trees (1000 0 0 0 0 0 0 TREES) Beginning Stocks 3,100 40,000 1,900 35,000 0 35,000 (MT) Production 105,000 109,092 145,000 146,190 0 117,340 (MT) Imports (MT) 275,000 258,319 280,000 215,000 0 220,000 Total Supply 383,100 407,411 426,900 396,190 0 372,340 (MT) Exports 11,200 9,525 10,000 9,500 0 9,500 (MT) Domestic Consumption 370,000 362,886 415,000 351,690 0 327,840 (MT) Ending Stocks 1,900 35,000 1,900 35,000 0 35,000 (MT) Total Distribution 383,100 407,411 426,900 396,190 0 372,340 (MT) Source: FAS Europe Offices EU-27 Tree Nuts Annual 2012 14 Commodities: Pistachios, Inshell Basis Production: According to industry estimates, in MY 2012/13 Greek pistachio area and production are forecast to increase significantly. Greek pistachios are produced mainly in the Island of Aegina and in the area of Lamia, located in central Greece. New producing areas include the Makrakomi area of Central Greece and the municipality of Oropos, in East Attica. Due to their exceptional flavor, shape and full kernel, the Aegina pistachio has been awarded by the European Commission as a PDO (Protected Designation of Origin), distinguishing it from all other pistachio varieties worldwide. Sicily, especially the Bronte area, produces more than 90 percent of Italy’s pistachio nuts. The majority of Italian pistachios are the Bianca variety (also called Napoletana), which is normally harvested in September. Pistachios from the Bronte area are sold under a PDO (Protected Designation of Origin) label issued by the EU Commission in 2010. To qualify as a PDO product, farmers must follow specific production methods, which guarantee a high quality level, but also higher harvesting costs. In recent years, pistachio production has slightly expanded to other areas in Sicily, where newer, less labor and input intensive orchards have been planted. Pistachio trees production is cyclical, bearing heavily in alternate years. MY 2012/13 will be a lower bearing year. Consumption: Domestic EU pistachio production is not sufficient to cover domestic demand, resulting in significant imports from Iran and the United States. The overall pistachios use can be split among many different ones starting from the in-shell basically traded as a snack food or as an ingredient employed by restaurant, shelled pistachios are used by bakeries and food companies (bakeries, cosmetic companies, sweet food companies and so on) while milled pistachios are mainly used by ice-cream makers. Trade: Imports The EU is a net importer of pistachios due to very limited EU production. The main suppliers for the European market are the United States and Iran, who together account for nearly 100 percent of total imports. U.S. pistachios continue to be the main source of pistachios in the EU, as they have a higher quality image than their major competitor. Despite this fact, in MY 2010/11 there was a significant decrease in imports driven by lower demand in important markets such as the Netherlands (-12 percent), Spain (-40 percent), the U.K. (-45 percent) or Greece (-73 percent). This tendency will likely continue in MY 2011/12. Table 10. EU-27 Imports of Pistachios by Origin in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 EU-27 Tree Nuts Annual 2012 15 United States 51,142 52,120 39,602 Iran 18,589 20,744 20,581 Afghanistan 0 1,995 1,234 Turkey 1,437 309 942 Syria 51 898 399 Argentina 71 28 52 Others 603 462 334 TOTAL IMPORTS 71,893 76,556 63,144 Source: GTA Exports EU-27 exports of pistachios are very limited. The top destinations for EU-27 pistachios in MY 2010/11 were Switzerland and Melilla, an autonomous Spanish city located in the North of Africa. Other usual destinations for European pistachios (mainly re-exported from other countries) are ex-Yugoslavian republics, such as Macedonia and Serbia, and Russia. The major pistachio exporters are Greece, Italy and Spain. Table 11. EU-27 Exports of Pistachios by Destination in MT (Inshell Basis) Country of origin MY 2008/09 MY 2009/10 MY 2010/11 Switzerland 257 396 530 Melilla 410 434 476 Macedonia 69 83 212 Serbia 213 191 71 Ceuta 53 1,185 68 Russia 60 45 66 Others 992 591 416 TOTAL EXPORTS 2,054 2,925 1,839 Source: GTA EU-27 Tree Nuts Annual 2012 16 Production, Supply and Demand Data Statistics: 2010 2011 2012 2010/2011 2011/2012 2012/2013 Market Year Market Year Market Year Pistachios, Begin: Sep Begin: Sep Begin: Sep Inshell Basis EU27 2010 2011 2012 USDA O New USDA New USDA New fficia P Officiaos t P Officiaost Post l l l Area Planted 0 0 12,76 (HA) 8,615 8,665 0 5 Area Harvested 0 0 12,56 (HA) 8,465 8,605 0 5 Bearing Trees 0 0 (1000 0 0 0 0 TREES) Non-Bearing Trees 0 0 (1000 0 0 0 0 TREES) Total Trees 0 0 (1000 0 0 0 0 TREES) 15,00 (MT) Beginning Stocks 1,800 0 1,500 1,500 0 1,500 Production (MT) 10,700 6,280 10,000 6,280 0 7,530 Imports 63,14 59,00 60,00 (MT) 67,675 4 65,000 0 0 0 Total Supply 84,42 66,78 69,03 (MT) 80,175 4 76,500 0 0 0 Exports 1,675 1,500 (MT) 1,839 1,900 0 1,900 81,08 63,38 65,63 (MT) Domestic Consumption 77,000 5 73,500 0 0 0 Ending Stocks 1,500 1,500 (MT) 1,500 1,500 0 1,500 Total Distribution 84,42 66,78 69,03 (MT) 80,175 4 76,500 0 0 0 Source: FAS Europe Offices EU-27 Tree Nuts Annual 2012 17 Commodities: Almonds, Shelled Basis Walnuts, Inshell Basis Filberts, Inshell Basis Pistachios, Inshell Basis Policy: European Council Regulation (EC) No 73/2009 (which repealed Council Regulation (EC) No 1782/2003) establishes the common rules for direct support schemes under the EU’s Common Agricultural Policy (CAP). Section 4, Articles 82 to 86, “Area payment for nuts”, defines the general payment structure for CAP assistance to the tree nut sector. Under this Regulation, EC aid will be granted for season 2009-2011 to farmers who produce almonds, hazelnuts, walnuts, pistachios or locust beans and meet the conditions for eligibility outlined in article 85. Tree nut producers are eligible for EC based on the guaranteed maximum area allocated to each MS, which is defined as their national guaranteed area (NGA) – for NGA and Financial Ceiling, please see EC/73/2009 or E46098. In MY 2011/12, of the 568,000 hectares guaranteed by Regulation 73/2009 for Spain, 434,000 hectares received aid in Spain. For this MY, the amount received per hectare was 42.88 €. As of 2012, producers will see the EU aid separated from production (decoupling), though MS are allowed to continue to provide with a national aid of €120.75 maximum per hectare for the production of these products. In the case of Spain, this payment will be co-financed by the MAGRAMA and the Autonomous Regions. According to the Spanish Agricultural Guarantee Fund (FEGA), for MY 2012/13 a total of 442,621 hectares applied for national aid, 1.3 percent less than in previous year. Moreover, the Spanish government launched a new program for specific agricultural activities entailing additional agri-environment benefits, as described in Article 68 of Regulation 73/2009 and producers of almonds, hazelnuts walnuts and carob beans were eligible. Spain allocated €13.1 million Euro and almost 9,000 farmers applied for this aid and will benefit from these payments. Special EU Import Conditions for U.S. Almonds As of September 1, 2007, the EU implemented Special Import Conditions, which called for mandatory testing of California almonds imported to EU member countries. The California almond industry and the USDA developed a Voluntary Aflatoxin Sampling Plan (VASP) comparable to the EU sampling procedures so that almonds can be uniformly tested before they are shipped to the EU. In March 2012, the European Commission implemented the Regulation 274/2012, amending Commission Regulation 1152/2009, imposing special conditions governing the import of certain foodstuffs from certain third countries due to contamination risk by aflatoxins. Regulation 274/2012 states that it is appropriate to repeal the transitional provision for foodstuffs imported from the United States of America, which are not covered by the Voluntary Aflatoxin EU-27 Tree Nuts Annual 2012 18 Sampling Plan (VASP), as sufficient time has been provided to operators in the United States of America to implement the Voluntary Aflatoxin Sampling Plan. Almonds with a VASP certificate are subject to random testing while almonds without this certificate are subject to being rejected. Regulation 1152/2009 introduced the use of a Common Entry Document (CED), similar to the Common Veterinary Entry Document (CVED) used for veterinary products. Starting January 1, 2010, the importer has to provide prior notification to the competent authorities at the designated port of entry for the goods covered by the regulation at least one working day prior to the arrival of the goods, using the CED. The CED was published in Annex II of the Regulation 669/2009. Provisions for methods of sampling and analysis for the official control of mycotoxins including aflatoxins are laid down in Commission Regulation 401/2006 as amended by Commission Regulation 178/2010. As of March 13, 2010, sampling under the VASP is performed on the basis of a 2x10 kg sample, in accordance with the new EU sampling legislation. For additional information see Annex VII B of the EU guidance document. Additional information on the VASP program is also available from the Almond Board of California: aspx Commission Regulation (EU) No 165/2010 increased the maximum aflatoxin levels for almonds and pistachios, as well as apricot kernels, hazelnuts and Brazil nuts, bringing them in line with the Codex Alimentarius levels for tree nuts adopted in July 2008. As a result of both new EU regulations, EU aflatoxin levels are in line with existing Codex maximum aflatoxin levels and sampling plans. However, EU legislation has a more extensive product coverage and also includes separate maximum limits for aflatoxin B1. The new levels, effective on March 9, 2010, changes to maximum tolerance for aflatoxin to the following: Ready-to-Eat For Further Processing (RTE) (FFP) Almonds 10 ppb total 15 ppb total 8 ppb B1 12 ppb B1 Hazelnuts, Brazil Nuts 10 ppb total 15 ppb total 5 ppb B1 8 ppb B1 Pistachios 10 ppb total 15 ppb total 8 ppb B1 12 ppb B1 For more information, see the E50018 GAIN report Author Defined: Related Reports EU-27 Tree Nuts Annual 2012 19 Report Number Title Date Released IT1148 Italy Tree Nuts 2011 10/05/2011 GR1109 Greece - Cyprus Tree Nuts 2011 08/22/2011 SP1118 EU-27 Tree Nuts Annual 08/30/2011 E50018 New EU Aflatoxin Levels and Sampling Plan 03/09/2010 These reports can be accessed through the FAS website EU-27 Tree Nuts Annual 2012 20
Posted: 29 September 2012