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Armenian Development

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A research for Armenian, Russian, Georgian, Kuwaiti and European markets of fresh fruits and vegetables

Tell me what you eat and I will tell you what you are. Anthelme Brillat-Savarin

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TABLE OF CONTENTS LIST OF TABLES AND FIGURES ................................................................................................................. 3

Harmonized System Codes (HS Code) for Fruits ..................................................................................... 5

Harmonized System Codes (HS Code) for Vegetables ............................................................................ 5

FRUITS AND VEGETABLES IN RUSSIA ...................................................................................................... 6

FRUIT MARKET OVERVIEW.................................................................................................................. 6

EXECUTIVE SUMMARY ........................................................................................................................ 6

CONSUMER TRENDS ........................................................................................................................... 6

PRODUCTION ...................................................................................................................................... 7

MARKET SIZES ..................................................................................................................................... 9

EXTERNAL TRADE .............................................................................................................................. 10

PRICES ............................................................................................................................................... 14

DISTRIBUTION CHANNELS ................................................................................................................. 14

PROSPECTS ........................................................................................................................................ 14

VEGETABLE MARKET OVERVIEW ...................................................................................................... 15

EXECUTIVE SUMMARY ...................................................................................................................... 15

CONSUMER TRENDS ......................................................................................................................... 15

PRODUCTION .................................................................................................................................... 15

MARKET SIZES ................................................................................................................................... 17

EXTERNAL TRADE .............................................................................................................................. 17

PRICES ............................................................................................................................................... 18

DISTRIBUTION CHANNELS ................................................................................................................. 18

PROSPECTS ........................................................................................................................................ 19

REFERENCES ...................................................................................................................................... 19

FRUITS AND VEGETABLES IN GEORGIA ................................................................................................. 20

PRODUCTION .................................................................................................................................... 20

EXTERNAL TRADE .............................................................................................................................. 22

CONSUMER EXPENDITURE ON FRUITS AND VEGETABLES ................................................................ 24

PRICES ............................................................................................................................................... 25

REFERENCES ...................................................................................................................................... 26

FRUITS AND VEGETABLES IN ARMENIA ................................................................................................ 26


PRODUCTION .................................................................................................................................... 26

EXTERNAL TRADE .............................................................................................................................. 28


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PRICES ............................................................................................................................................... 31

REFERENCES ...................................................................................................................................... 32

FRUITS AND VEGETABLES IN KUWAIT ................................................................................................... 33


MARKET OVERVIEW .......................................................................................................................... 33

EXTERNAL TRADE .............................................................................................................................. 34

PRICES ............................................................................................................................................... 36

REFERENCES ...................................................................................................................................... 36

FRUITS AND VEGETABLES IN EUROPE ................................................................................................... 37


PRODUCTION .................................................................................................................................... 37

EXTERNAL TRADE .............................................................................................................................. 39

PRICES ............................................................................................................................................... 40

REFERENCES ...................................................................................................................................... 41


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LIST OF TABLES AND FIGURES

1. FRUITS AND VEGETABLES IN RUSSIA Table 1. Consumer Expenditures on Fruit in Russia Table 2. Production of Fruits in Russia Table 3. Production Growth of Fruits in Russia Table 4. Sales of Fruits in Russia by Category for 2005-2010 Pie Chart 1. Import Share on Russian Market of Fruit and Berries in Physical Terms Table 5. Import Trade Matrix of Russia for Apples Table 6. Import Trade Matrix of Russia for Pears and Quinces Table 7. Import Trade Matrix of Russia for Grapes Table 8. Fruit Imports of Russia Table 9. Cost of Apples Per Kilo in Russia for 2006-2011 Table 10. Sales of Fruits by Distribution Format for 2005-2010 Table 11. Forecast Sales of Fruits for Russia by Category for 2012-2015 Table 12. Consumer Expenditures on Vegetables in Russia Table 13. Production of Vegetables in Russia Table 14. Production Growth of Vegetables in Russia Table 15. Sales of Vegetables in Russia Table 16. Imports of Vegetables in Russia Table 17. Cost of Potatoes Per Kilo in Russia for 2006-2011 Table 18. Sales of Vegetables by Distribution Format in Russia Table 19. Forecast Sales of Vegetables in Russia

2. FRUITS AND VEGETABLES IN GEORGIA Table 20. Gross Harvest of Agricultural Crops in Georgia Graph 1. Harvest of Grapes in Georgia Table 21. Production of Fruits and Vegetables in Georgia Table 22. Production Growth of Fruits and Vegetables in Georgia Table 23. Exports of Vegetable Products of Georgia by HS Chapter Table 24. Consumer Expenditure on Fruits and Vegetables in Georgia Graph 2. Consumer Expenditure on Fruits Graph 3. Consumer Expenditure on Vegetable Graph 4. Pricing for Apples and Potatoes in Georgia

3. FRUITS AND VEGETABLES IN ARMENIA Table 25. The Production of Fruits and Grapes, Berries and Nuts in Armenia Table 26. The Production of Vegetables and Potatoes in Armenia Table 27. The Foreign Trade of Fruits and Vegetables of Armenia Table 28. The Foreign Trade of Vegetables in Armenia Table 29. The Foreign Trade of Fruits in Armenia Table 30. The Average Price of Fruits and Vegetables in Armenia Table 31. The Price Change of Fruits and Vegetables in Armenia


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4. FRUITS AND VEGETABLES IN KUWAIT Table 32. Consumer Expenditure on Fruits and Vegetables in Kuwait Table 33. Kuwait's Imports of Vegetables by Countries Table 34. Kuwait's Imports of Fruits, Nuts and Melons by Countries Table 35. The prices of Fruits and Vegetables in Kuwait Table 36. The Prices of Apples and Potatoes Per Kilo in Kuwait

5. FRUITS AND VEGETABLES IN EUROPE Table 37. Production of Fruits and Vegetables by Category in Europe and the EU Table 38. Consumer Expenditure on Fruits and Vegetables in Europe and the EU Graph 5. The European Foreign Trade of Fruits and Vegetables Table 39. The Cost of Apples and Potatoes Per Kg in Europe and the EU


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Harmonized System Codes (HS Code) for Fruits 08 EDIBLE FRUITS & NUTS, PEEL OF CITRUS/MELONS 0801 coconuts, brazil nuts & cashew nuts, fresh or dry 0802 nuts nesoi, fresh or dried 0803 Bananas and plantains, fresh or dried 0804 dates, figs, pineapples, avocados etc, fresh or dried 0805 citrus fruit, fresh or dried 0806 grapes, fresh or dried 0807 melons and papayas, fresh 0808 apples, pears and quinces, fresh 0809 apricots, cherries, peaches, plums & sloes, fresh 0810 fruit nesoi, fresh 0811 fruit & nuts (raw or cooked by steam etc), frozen 0812 fruit & nuts temporarily preserved, not now edible 0813 fruit dried nesoi, mixtures of nuts or dried fruit 0814 peel, citrus or melon, fresh, frozen, dried, provsl pres

Harmonized System Codes (HS Code) for Vegetables 07 EDIBLE VEGETABLES 0701 potatoes (except sweet potatoes), fresh or chilled 0702 tomatoes, fresh or chilled 0703 onions, shallots, garlic, leeks etc, frozen or chilled 0704 cabbages, cauliflower, kale etc, fresh or chilled 0705 lettuce and chicory, fresh or chilled 0706 carrots, turnips & other edible roots, frozen or chilled 0707 cucumbers and gherkins, fresh or chilled 0708 leguminous vegetables, shelled or not, frozen or chilled 0709 vegetables nesoi, fresh or chilled 0710 vegetables (raw or cooked by steam etc), frozen 0711 vegetables, temporarily preserved, not now edible 0712 vegetables, dried, whole, cut etc., no added prep 0713 leguminous vegetables, dried shelled 0714 cassava arrowroot etc fresh or dry: sago pith

http://www.foreign-trade.com/reference/hscode.cfm?code=08































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FRUITS AND VEGETABLES IN RUSSIA

FRUIT MARKET OVERVIEW

EXECUTIVE SUMMARY Russia is one of largest buyers of fruit in the world and is recognized as a priority market by many European, Turkish, Moroccan and South American growers. Almost all these countries actively promote their product among the Russian trade via educational tours in their main growing areas including introductions to main growers. Fruit growth in 2010 was based on both increased production of traditional Russian fruit (apples, strawberries, blackcurrants, redcurrants and other berries, as well as pears, plums and cherries), and the growth in imports of most types of fruit. Some increase in the majority of southern and tropical fruit was partly due to a recovery of their growth ratios after some stagnation in 2009 due to the economic crisis.

CONSUMER TRENDS The health and wellness market in Russia is experiencing dynamic growth, with Russian consumers following the global trend towards healthier foods and lifestyles. According to Euromonitor, Russian consumers prefer high-quality products with additional nutritional value. Growing consumer spending power is a positive driver behind this demand and the growing offering of healthier products from manufacturers is also becoming visible in the market, as outlined in the table below. Russians are eating more fruit and diversifying the types of fruit they consume due to increasing disposable incomes and a trend toward eating more healthy diets. In 2010, consumption of fruit in Russia increased to 71 kg per capita, up 10% compared with 2009, based on the Russian Federation Statistic Committee data. This is still significantly lower than consumption levels in European countries, the US, Japan and China. For example, according to the Economic Research Service, the typical American consumes 270 pounds (122.5 kg) of fruit and tree nuts (fresh and processed, fresh-weight basis) each year. Fruit consumption in Russia varies widely depending on geographic location. In rural areas and cities with population under 100,000 people, Russians tend to consume locally grown fruits and vegetables where a lot of canning is traditionally done in order to preserve fruits and vegetables for out of season consumption. Fruit consumption, especially imported fruit, is substantially higher in urban areas such as Moscow, St. Petersburg and Vladivostok. In Russia, 10.6% of the average food basket goes to fresh fruits. The average household’s weekly spending for food products ranges from 3,632 rubles (USD 114.29) in Moscow to 2,809 (USD 89.27) rubles in a city less than 500,000 citizens, according to the RBK Department of Consulting research. In 2010, apple consumption increased by 7% and reached 11.1 kg per person. Apples alone capture 25% of the fruit market and are recognized in Russia as one of the healthiest products. Russian consumers know such varieties of apples as Semerenko, Beliy Naliv, Ranet, Royal Gala, Golden and Granny Smith. Russians love apples from Krasnodarskiy Krai, Lipetskaya Oblast and regionally grown varieties and prefer to buy them in the September-


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November period, when these apples are broadly available. Also, there is a historic preference for fruits and vegetables from former Soviet republics such as Ukraine and Moldova. The consumer expenditure on fruit in Russia for 2006-2011 is represented below.

Table 1. Consumer Expenditures on Fruit in Russia mln USD

2006 2007 2008 2009 2010 2011 11895.3 15549.8 18966.4 16164.6 19905.2 24351.0

Source: www.portal.euromonitor.com

PRODUCTION By 2009 the volume of Russian market of fruit and berries had had positive dynamics of growth. But in 2010, due to abnormally hot summer, the total yield of fruit and berries reduced almost by one fifth. Despite the import volume increase by 10%, the market volume decreased in total by 1.2%. Apples. The Golden Delicious, Red Chief, Semerenka (a Russian light green sour variety), Granny Smith, Ida Red, Gala, and Bolshevik are the most popular varieties with growers. In September 2011, the farm gate price was 18-20 rubles (USD 0.63) per kg, a little bit lower the previous year’s prices. Organized retail establishments tend to prefer imported apples because, in their view, domestic apples tend to lack quality and size, and the supply is too inconsistent to satisfy the retail chains. The smaller-sized apples with possible damage are used in juice concentrate, puree and jam production. In 2011, the demand for apples for processing was high because the price for Chinese juice concentrate was up. Some growers estimated that they will probably sell up to half of their harvest for processing in 2011. The price for these apples increased from 4 rubles (USD 0.13) per kg last year to 7.5 rubles (USD 0.24) per kg in 2011. In 2010, the acreage under apple orchards declined by 3.5% and totaled at 217,000 hectares (ha). According to industry experts the trend will continue downward because of the abandonment of old orchards. In 2010, the average yield per hectare in Russia was around 5.2 tons per ha, because of low yields in older orchards, 75% of total area planted according to some industry estimations. Productivity is expected to go up due to the new traditional and intensive orchards which have started to bear fruit in big agricultural enterprises. The productivity in these orchards varied from 12 to 40 tons per hectare, and possibly more in a good year. So in perspective, in approximately 2-3 years Russia will produce bigger volumes of “first class” apples with longer shelf life for retail. More producers have started to invest in storage facilities. With more up-to date storage they believe they could expand the sales season for local apples and have more revenues, as prices from 20 rubles per kg (USD 0.63) in September can reach 30 rubles (USD 0.94) in winter. In 2011, the Russian Government reinstated domestic support of the horticulture industry. 200 million rubles (USD 6.3 million) of the Federal budget went for subsidization of new orchard planting as well as and planting for berries. Farmers responded by more actively replacing the old orchards with “semi intensive” and “intensive” techniques using Serbian, Polish, Ukrainian and Italian root stock. The current funding allows the farmer to be reimbursed around 10% of the cost of orchard renovation works. One hectare of traditional

http://www.portal.euromonitor.com/


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orchard planting costs around 133,300 rubles (USD 4,194.4) and intensive orchard 775,000 rubles (USD 24,386). According to industry experts, this level of support is still not sufficient to encourage rapid industry renovation. Pears are one of the most popular fruits in Russia following apples, citrus, and bananas. Based on import and production data, pear consumption per capita is around 3.4 kg. In the long run, declining production and increasing consumption could lead to higher imports. In the short term, imports could be limited by the declining purchasing capacity of the ruble given that the most important factor while purchasing fruit is price. For Russians, the ideal pears are usually described as juicy, crispy sweet, and not overripe. Russians usually eat pears as a whole fruit or sometimes include it in fruit salads. Consumers know some of the most popular pear varieties like Conference, Williams, and Red Bartlett, but do not care much about product origin. Pears are not associated with a definite season in Russia and people buy them year round. Consumers tend to buy pears in chain supermarkets during their weekly shopping and some still make purchases close to home at fruit kiosks and open air seasonal kiosks in Summer/Fall. Pears in wine and other pear-based desserts are increasingly available on menus of high end and casual restaurants and are gaining popularity with healthy diet fans. Pear consumption patterns are different in rural areas because of the lower incomes and many rural residents grow their own fruits and vegetables. Around one-quarter of the Russian population live in rural areas and consume pears grown on their plots or their neighbor’s. Grapes are one of the most popular fruits in Russia, almost on par with pears but after apples, bananas and citrus, and its consumption is still growing. According the Russian Statistic Committee, in 2010 the grape per capita consumption in Russia reached 2.8 kg, up 7.6% compared to 2009 data. The upward trend should continue in 2011 supported by healthier diets and recognition of fruits as one of the basic elements of a healthy diet. Russians prefer seedless and beautiful grapes and usually buy Uzbekistan and Moldovan grapes in season. Both consumers and traders call grapes from former Soviet bloc countries “local product”. Grapes are available year round in Russia. However, the peak consumption months are August–November (66% of annual sales), when the most affordable and well-known grapes from Moldova, Uzbekistan and Kyrgyzstan are available. Many Russians buy grapes during their weekly shopping in supermarkets and discounters. However, during the fall season, Russians purchase a lot of fresh seasonable grapes and other produce spontaneously on a daily basis and usually in open-air fruit stands, where the product from former Soviet republics are broadly presented. Grapes are available on the shelves of big city supermarkets year round. The retail chains tend to supply product from Turkey, Italy, Argentina, Peru and South Africa. Grapes form NIS countries are available in retail chains soon after picking, when it is possible to get volumes of product on regular basis. Like wholesalers, retailers comment on the shorter life span of “local grapes” and also noted that the percentage of waste during handling is much higher compared to product from Europe or South America. The yields were up to 6.3 tons per hectare from 5.53 tons in 2010. Commercial grape production in Russia is limited for several reasons. Firstly, the climate limits growing to very few areas in the South of the Russian Federation. Secondly, competition from wine grapes and other crops is very strong. Moreover, table grape production is very labor intensive while wine grapes are picked by machines and have a guaranteed channel of sales. Thirdly,


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according to wholesales, imported grapes are preferable to domestic because they have a longer storage life, nearly a month versus domestic grapes that need to be sold within 5-6 days. According to the Statistic Committee, the land under the commercial table grape production decreased from 7,200 ha in 2008 to 6,200 ha in 2010. The production volumes of fruits in Russia for 2006-2011 are represented below.

Table 2. Production of Fruits in Russia thsd tons

Category 2006 2007 2008 2009 2010 2011 Apples 1619.0 2333.0 1120.0 1435.0 986.0 884.0 Grapes 243.7 315.0 267.9 298.7 324.3 344.4

Peaches and Nectarines 20.0 42.8 31.0 32.0 28.0 30.0

Pears 66.5 96.0 47.0 59.6 41.0 38.0 Source: www.portal.euromonitor.com

The growth rates of fruit production in Russia are represented below.

Table 3. Production Growth of Fruits in Russia %

Category 2006-07 2007-08 2008-09 2009-10 2010-11 Apples 44.1 -52.0 28.1 -31.3 -10.3 Grapes 29.3 -15.0 11.5 8.6 6.2 Peaches and Nectarines 114.0 -27.6 3.2 -12.5 7.1 Pears 44.4 -51.0 26.8 -31.2 -7.3


MARKET SIZES During the period of 2007-2010 one could observe unstable dynamics of total yield of fruit and berries. Due to unfavorable weather conditions and dry summer the indices decreased by more than one fifth (22.4%). The sales of fruits in Russia are represented in the table below.

Table 4. Sales of Fruits in Russia by Category for 2005-2010 thsd tons

Category 2005 2006 2007 2008 2009 2010 Apples 1224.8 1253.5 1258.9 1348.1 1494.2 1584.0 Banana 833.0 873.0 931.6 941.4 963.5 990.0 Cherries 57.5 84.5 103.8 106.0 106.2 116.2 Cranberries/Blueberries 25.4 27.3 28.8 30.7 34.1 36.3 Grapefruit/Pomelo 61.7 53.3 79.6 82.6 82.2 83.1




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Grapes 401.3 424.0 435.2 474.6 459.4 489.0 Lemon & Limes 205.3 211.5 207.6 188.8 200.0 205.9

Oranges, Tangerines & Mandarins 774.3 922.4 983.3 1021.2 973.7 997.9

Peaches/ Nectarines 111.5 146.6 147.5 176.1 169.8 180.8 Pears/Quinces 388.6 405.0 465.8 470.6 480.9 502.8 Pineapple 21.1 25.1 32.1 34.6 33.2 34.6 Plums/Sloes 67.5 78.8 78.8 89.6 91.3 96.2 Strawberries 55.3 62.0 75.3 89.3 103.6 107.9 Other Fruit 434.3 517.9 626.6 723.2 792.3 827.4

FRUITS 4661.6 5084.9 5454.8 5776.8 5984.3 6252.1 Source: www.portal.euromonitor.com

EXTERNAL TRADE Volumes of fruit import to Russia increase annually. More than two thirds of Russian fruit market is imported products. Mostly they have Turkish or Chinese origin; as for bananas, that made up about 18% of Russian import, greatest part of them is imported from Ecuador.

Source: Intesco Research Group

Apples take up the leading position in the structure of Russian import. To say more, in 2010, Russia became the largest importer of apples in the world; import volume reached 1,110,689 tons (9,360 tons less than in 2008), valued at USD 719.1 million (a 24% increase over the 2009 record). In 2010, the major suppliers of apples to Russia were: Poland (252,773 tons), China (158,307 tons), Moldova (148,588 tons) and Serbia (96,983 tons). The affordable apples from the CIS countries represent 20% of imports. The supply of apples from the Southern Hemisphere increased by 36% and made up for lower volumes from European countries. In July –August 2011, Russia increased apple imports by 30% due to shipments form Moldova, Ukraine and Argentina (see table below).

72%

28%

Pie Chart 1. Import Share on Russian Market of Fruit and Berries in Physical Terms

Imported Products

Russian Products



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Table 5. Import Trade Matrix of Russia for Apples

tons

2009 2010 Poland 327 948 Poland 252 773 China 157 782 China 158 307 Moldova 137 991 Moldova 148 588 Azerbaijan 81 838 Serbia 96 983 Ukraine 91 285 Italy 64 407 Italy 60 276 Argentina 51 603 Belgium 41 506 Ukraine 50 984 France 39 248 France 50 635 Chile 36 790 Chile 49 114 Argentina 36 170 Belgium 47 627 US 12 713 US 12 614 Others 109 215 Others 139 668 Total 1 132 762 Total 1 123 303

Source: Global Trade Atlas

The weakening of the ruble starting in September 2011 could result in an overall decline in fruit imports from countries with strong currencies. US apple exports to Russia decreased from 12,713 tons in 2010 to 12,614 tons in 2011. American apples are recognized for long shelf life and consistent quality. Russian consumers like large, richly colored apples, which are characteristics that US suppliers can normally provide. Good apple crops in Europe and Russia and the ruble’s significant weakening in September could adversely affect sales of American apples to Russia. According to importers, if a box of American apples will be 50 rubles (USD 1.57) more expensive than Italian or French apples, the wholesalers prefer European ones. Prices for apples on the wholesale markets of Moscow are as follows as of October 21, 2011:

• Polish apples cost from 40 rubles (USD 1.26) to 45 rubles (USD 1.42) per kg • Golden Delicious, France - 50 rubles (USD 1.57) – 55 rubles (USD 1.73) per kg • Golden Delicious, Belgium/Netherlands - 50 rubles (USD 1.57) – 60 rubles (USD 1.89)

per kg • Granny Smith, Argentina/Chile 50 rubles (USD 1.57) – 60 rubles (USD 1.89) per kg

Pears. In 2010, Russia remained the world’s largest importer of pears with 409,935 tons of imports by volume and USD 424.6 million by value (a 7% increase in volume and almost by 20% increase in value terms from last year). In 2010, the largest suppliers of pears to Russia were: Belgium (139,185 tons), Argentina (108,126 tons) and the Netherlands (46,375 tons). Russia sourced around 58% of all pears from European counties. Polish pears, which tend to be less expensive than US pears, expanded sales to Russia by 25%. Southern Hemisphere countries continued to supply pears in the winter season (see table below).


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Table 6. Import Trade Matrix of Russia for Pears and Quinces tons

2009 2010 Belgium 116 045 Belgium 139 185 Argentina 97 328 Argentina 108 126 Netherlands 56 364 Netherlands 46 375 China 27 960 China 26 602 South Africa 17 792 Spain 20 906 Poland 16 281 South Africa 13 140 US 10 309 US 9 635 Spain 8 338 Poland 11 195 Portugal 7 652 France 7 566 Chile 5 587 Portugal 6 319 France 5 579 Chile 6 075 Others 24 360 Others 24 446 Total 393 595 Total 419 570


In 2010, US pear imports to Russia totaled to 9,635 tons, down 6% from the previous season. Importers claimed that US pears did not have strong sales and they might be more cautious in placing orders for the current season. 2011 could be a challenging season for American pears in Western Russia since the European pear crop is up by 12%, based on the World Apple and Pear Association estimation. Grapes. Russia remains one of top importers of grapes in the world. Russia’s grape imports have grown steadily since 2002. In 2010, Russia imported 407,730 tons, worth USD 565.8 million, up by 5% in volume and 21% in value. Turkey, the largest exporter to Russia, increased its sales to Russia to 167,518 tons, almost 40% of the Russian grape market by volume. Uzbekistan remains the second biggest supplier with 53,500 tons, followed by Chile with 42,959 tons (see table below).

Table 7. Import Trade Matrix of Russia for Grapes tons

2009 2010 Turkey 122 930 Turkey 167 518 Uzbekistan 72 173 Uzbekistan 53 504 Chile 42 826 Chile 42 959 Kyrgyzstan 29 848 Italy 28 409 Italy 21 609 Moldova 16 873 Moldova 21 023 Argentina 15 450 China 15 811 South Africa 13 628 South Africa 12 291 Peru 13 185 Argentina 12 041 Kyrgyzstan 13 067 Peru 7 773 China 11 800


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US 2 069 US 3 718 Others 29 909 Others 31 343 Total 390 303 Total 411 454


Traditionally, products from former Soviet republics capture 30% of the Russian grape market. And due to counter-seasonal production, grapes from Argentina, Chile and South Africa arrive in January and dominate the market until May. In 2010, California table grape imports to Russia reached 3,718 tons, 79% higher than in 2009. The season for California grapes peaks in November and December. Some importers claimed quality problems with California grapes that could inform purchasing habits in the coming season. American and Italian grapes compete in terms of price and quality. A new addition to the competitor field is Peru, whose grapes is in season earlier than product from other South American countries and fit the pre holiday sale season. With these strong competitors in the market, American grapes must be high quality and competitively priced to gain market share in Russia. FEPEX has analyzed data from Eurostat which show that Russia accounts for 39% of total EU exports to third countries. In the 2.35 million tons exported, vegetables represent 1.15 million tons 1.20 million tons for fruits. The volumes of fruit imports of Russia and the values in terms of money are represented below.

Table 8. Fruit Imports of Russia

Category Volume Value, mln USD

2000 2005 2008 2009 2010 2000 2005 2008 2009 2010 Bananas, thsd tons 506 865 1007 981 1069 177 451 670 630 704 Citrus Fruit, thsd tons 473 953 1288 1280 1491 135 484 951 1018 1280

including: Oranges 250 391 502 444 499 69.8 195 354 381 437 Lemons — — 183 206 212 — — 127 138 166

Grapes Fresh, thsd tons 71.7 291 407 375 409 48.9 211 520 452 576

Apples Fresh, thsd tons 218 730 1064 851 1206 87.1 297 521 549 669

Source: www.gks.ru

In the EU, the Netherlands, Poland, Lithuania, Belgium and Spain are the leading exporters of fruit and vegetables to Russia.

http://www.gks.ru/


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PRICES According to Euromonitor, since 2009, the prices of apples per kilo have increased by 10% in average.

Table 9. Cost of Apples Per Kilo in Russia for 2006-2011 USD

2006 2007 2008 2009 2010 2011 1.5 1.8 2.2 1.9 2.1 2.3


The wholesale price in Moscow for Conference pears from Belgium and the Netherlands is in the range of 50 -55 rubles (USD 1.57 – USD 1.73) per kg, as of October 22, 2011. In 2011, even with farm gate prices around 15-17 rubles/kg (USD 0.47 – USD 0.53 per kg) farmers claimed to have problems selling their harvest. Reportedly, they sold only 25% of their crop via retails channels. According to the Russian food industry information source Freshmarket, during the week of October 10, the wholesale price for Italian red grapes had risen to 80-85 rubles (USD 2.51-USD 2.67) per kg due to the low supply of the product. Prices for Turkish white seedless grapes and black grapes were up as well to 50-60 rubles (USD 1.57- USD 1.89) per kg. As for October 2012, apples cost USD 1.90 and oranges cost USD 1.74 per kilo.

DISTRIBUTION CHANNELS The Sales of Fruits in Russia by distribution format is represented below.

Table 10. Sales of Fruits by Distribution Format for 2005-2010 % total volume

Category 2005 2006 2007 2008 2009 2010

Retail 85.4 86.9 91.8 96.4 95.2 96.0

Others (including foodservice and institutional) 14.6 13.1 8.2 3.6 4.8 4.0

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com

PROSPECTS The forecast sales of fruits for Russia by category are represented below.

Table 11. Forecast Sales of Fruits for Russia by Category for 2012-2015

thsd tons

Category 2012 2013 2014 2015 Apples 1715.9 1756.8 1784.7 1804.9 Banana 1068.7 1103.2 1125.6 1140.6 Cherries 137.7 147.7 157.1 166.7




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Cranberries/Blueberries 39.9 40.2 40.7 41.1 Grapefruit/Pomelo 86.6 87.6 88.4 88.9 Grapes 561.3 596.3 627.2 657.1 Lemon & Limes 209.4 210.3 210.8 211.6

Oranges, Tangerines & Mandarins 1213.6 1330.4 1413.5 1492.0

Peaches/ Nectarines 224.3 242.5 260.0 277.9 Pears/Quinces 598.8 636.3 667.4 696.0 Pineapple 37.7 39.3 40.8 42.0 Plums/Sloes 107.9 112.4 116.7 121.0 Strawberries 118.9 123.8 128.5 133.1 Other Fruit 912.4 949.9 995.0 1038.7

FRUITS 7033.2 7376.7 7656.6 7911.5 Source: www.portal.euromonitor.com

VEGETABLE MARKET OVERVIEW

EXECUTIVE SUMMARY Fresh vegetables still have major potential in Russia, as a significant quantity is still grown by the general population for personal consumption, and is excluded from total sales. Furthermore, consumption of many kinds of vegetables in Russia is lower than elsewhere in Europe, and seasonality is a key influence: the highest proportion of fresh vegetables is usually sold during the peak harvesting season (summer or autumn when prices are low), while in winter vegetables’ consumption typically falls.

CONSUMER TRENDS The consumer expenditure on vegetables in Russia for 2006-2011 is represented below.

Table 12. Consumer Expenditures on Vegetables in Russia mln USD

2006 2007 2008 2009 2010 2011 13594.6 17882.3 21675.9 18368.8 23503.9 28284.6


PRODUCTION Local production of vegetables significantly suffered a lot from drought in the summer of 2010 and decreased by around 20% compared with 2009. Imported products were not able to fully compensate for the loss, and overall volume sales decreased 1% in 2010. The drop in volume sales in the category could have been higher, but was partly compensated for by the




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continuing increase in retail demand for vegetables by some consumers, who grew fewer products of their own on private allotments. Tomatoes became the best performer in 2010, growing 1%. This remains one of the most popular vegetables in Russia with a volume share of 19% in 2010. Impressive growth in recent years, especially in 2007, was boosted by increasing imports. Local production grew steadily as well. Rapid substitution of home-grown tomatoes with shop-bought produce was evident. Over 2006-2010 seasonality in tomato consumption became less pronounced, and sales during winter improved. Onion sales declined 1% in 2010 to just over one million tons. Demand is quite stable and almost saturated. Onions accounted for 9% of total volume sales of vegetables and are not affected by seasonality. Onions are very important for Russian domestic cooking and demand is less impacted by price than demand for other vegetables. Although around 40-45% of onions are imported, they are usually sourced from neighboring countries such as Ukraine. Sales of other vegetables declined by 2% in 2010 to just over 8 million tons. After tomatoes and onions, the most popular vegetables in Russia are cucumbers, cabbages, carrots, and salad vegetables. These vegetables are widely used in everyday home cooking. The majority of other vegetables are grown locally and around 15% is imported. The trend towards gradual substitution of farmers’ produce and homegrown consumption with retail purchases remained one of the most important factors in this category. The table below represents the production volumes of vegetables in Russia.

Table 13. Production of Vegetables in Russia thsd tons

Category 2006 2007 2008 2009 2010 2011 Cabbages and Other Brassicas 4073.2 2661.7 3169.9 3312.1 2732.5 2397.3

Cauliflower and Broccoli 14.7 5.9 7.3 6.7 5.0 4.7

Garlic 255.9 249.0 226.7 227.3 213.5 202.9 Onions 1788.8 1318.0 1712.5 1601.6 1536.3 1473.2 Potatoes 38572.6 36784.2 28846.4 31134.0 21140.5 18911.1 Tomatoes 2414.9 1791.0 1938.7 2170.4 2000.0 1896.3


The table below represents the production growth of vegetables in Russia.

Table 14. Production Growth of Vegetables in Russia %

Category 2006-07

2007-08

2008-09

2009-10

2010-11

Cabbages and Other Brassicas -34.7 19.1 4.5 -17.5 -12.3

Cauliflower and Broccoli -59.5 23.0 -7.9 -26.0 -6.5

Garlic -2.7 -9.0 0.3 -6.1 -5.0



Page | 17

Onions -26.3 29.9 -6.5 -4.1 -4.1 Potatoes -4.6 -21.6 7.9 -32.1 -10.5 Tomatoes -25.8 8.2 12.0 -7.9 -5.2


MARKET SIZES The sales of vegetables in Russia are represented below.

Table 15. Sales of Vegetables in Russia thsd tons

Category 2005 2006 2007 2008 2009 2010 Onion 927.5 994.5 1007.7 1054.5 1056.0 1043.9 Tomatoes 1218.9 1307.2 1865.0 2070.1 2184.0 2205.8 Other Vegetables 6955.8 7529.8 7706.4 8180.0 8519.5 8353.4

Vegetables 9102.2 9831.5 10579.1 11304.6 11759.5 11603.1 Source: www.portal.euromonitor.com

EXTERNAL TRADE Share of imported fresh vegetables was estimated at 22-25% in 2010. However it is expected to diminish, as local producers receive growing support from the Russian government. Vegetable production is boosted by favorable conditions guaranteed to agricultural producers by the state national project initiated in 2006. Among the benefits outlined in the project are opportunities to take out long-term credit arrangements at lower interest rates and various subsidies offered to farmers when purchasing seeds, fertilizers, fuel etc. Significant growth in vegetables in recent years was boosted by increases in both local production and imports. The share of imports in the local vegetables environment remains relatively low, at under 20%, although many retailers preferred to put imported vegetables on their shelves, since they are usually of better quality and presentation than locally supplied produce. They also come in regular sizes and shapes, and are often pre-washed. The exceptions are local greenhouses supplying vegetables of high quality to retail outlets and enjoying stable long-term relationships with them. Rising incomes prompted many consumers to stop growing their own vegetables on private allotments and instead start buying them in retail outlets. Volume sales grew even in 2009 despite the crisis, due to the growth of local production and some increase in imports of tomatoes. FEPEX has analyzed data from Eurostat which show that Russia accounts for 39% of total EU exports to third countries. In the 2.35 million tons exported, vegetables represent 1.15 million tons 1.20 million tons for fruits. The main vegetables exported to Russia are potatoes with 596,617 tons followed by onions with 124,658 tons. In the EU, the Netherlands, Poland, Lithuania, Belgium and Spain are the leading exporters of fruit and vegetables to Russia. The table below represents the volumes and value in terms of money of imported vegetables to Russia for 2000, 2005, 2008, 2009 and 2010.




Page | 18

Table 16. Imports of Vegetables in Russia

Category Volume, thsd tons Value, mln USD

2000 2005 2008 2009 2010 2000 2005 2008 2009 2010 Potatoes 359 103 574 397 711 55.6 89.4 233 153 292 Tomatoes 108 355 685 708 717 46.3 218 643 660 793 Onions and Garlic 319 543 503 431 633 47.0 133 180 148 238

Source: www.gks.ru

PRICES The prices for potatoes per kilo are represented below.

Table 17. Cost of Potatoes Per Kilo in Russia for 2006-2011 USD

2006 2007 2008 2009 2010 2011 0.4 0.5 0.7 0.6 0.6 0.7


As for October 2012, potatoes cost USD 0.79 and tomatoes cost USD 2.05 per kilo.

DISTRIBUTION CHANNELS The sales of vegetables by distribution format in Russia for 2005-2010 are represented below.

Table 18. Sales of Vegetables by Distribution Format in Russia % of total volume

Category 2005 2006 2007 2008 2009 2010 Retail 88.6 89.6 89.8 91.4 91.3 91.4

Others (including foodservice and institutional) 11.4 10.4 10.2 8.6 8.6 8.6

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com

http://www.gks.ru/




Page | 19

PROSPECTS The forecast sales of vegetables in Russia for 2012-2015 are represented below.

Table 19. Forecast Sales of Vegetables in Russia thsd tons

Category 2012 2013 2014 2015 Onion 1178.9 1257.0 1312.5 1357.1 Tomatoes 2450.2 2593.5 2703.2 2808.6 Other Vegetables 9520.0 10210.2 10674.8 11124.2

Vegetables 13149.0 14060.7 14690.4 15289.9 Source: www.portal.euromonitor.com

REFERENCES www.portal.euromonitor.com

www.gks.ru

http://www.foreign-trade.com/reference/hscode.cfm?cat=2

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Fresh%20Deciduous%20Fruit%20Annual_Moscow%20ATO_Russian%20Federation_10-26-2011.pdf

http://www.numbeo.com/food-prices/country_result.jsp?country=Russia&displayCurrency=USD

Intesco Research Group

USDA Foreign Agricultural Service



http://www.gks.ru/

http://www.foreign-trade.com/reference/hscode.cfm?cat=2



http://www.numbeo.com/food-prices/country_result.jsp?country=Russia&displayCurrency=USD


Page | 20

FRUITS AND VEGETABLES IN GEORGIA

PRODUCTION The gross harvest of agricultural production of Georgia is represented in the table below.

Table 20. Gross Harvest of Agricultural Crops in Georgia thsd tons

Category 2004 2005 2006 2007 2008 2009 2010

Potatoes 419.5 432.2 168.7 229.2 193.4 216.8 228.8

Other Vegetables 400.5 436.7 179.7 190.3 165.0 170.3 175.7

Grapes 180.0 250.3 162.5 227.3 175.8 150.1 120.7

Citruses 38.2 122.4 52.2 98.9 55.2 93.6 52.1

Other Fruits 160.2 264.9 153.3 227.5 157.6 181.2 124.1 Source: www.geostat.ge

The production of potatoes has decreased significantly (up to 61%) in 2006. In 2007 vis-à-vis 2006, the production of potatoes has increased by circa 36%. In 2010 vis-à-vis 2008, the production of potatoes increased by almost 18.3%. The same increase-decrease scheme is visible for other vegetables.

The harvest of grapes is depicted graphically below.

Source: www.geostat.ge

Since 2007, the production of grapes has constantly dropped. In 2010 vis-à-vis 2008, it has declined by up to 31.3%.

2004 2005 2006 2007 2008 2009 2010

Grapes 180.0 250.3 162.5 227.3 175.8 150.1 120.7

0.0

50.0

100.0

150.0

200.0

250.0

300.0

thsd

tons

Graph 1. Harvest of Grapes in Georgia

http://www.geostat.ge/



Page | 21

The production of citruses peaked (122.4 thousand tons) in 2005 and then dropped significantly (57.4%) in 2006 vis-à-vis 2005. In 2010 vis-à-vis 2009, it decreased by 44.3%.

The same increase-decrease scheme is visible for other fruits.

The table below represents the production of fruits and vegetables by category.

Table 21. Production of Fruits and Vegetables in Georgia thsd tons

Category 2006 2007 2008 2009 2010 2011 FRUITS Apples 32.8 101.3 41.5 80.7 21.1 18.2 Grapes 162.5 227.3 175.8 150.1 120.7 110.3

Peaches and Nectarines 5.3 8.2 13.7 17.6 6.9 7.3 Pears 22.5 19.6 16.4 11.1 13.7 12.4

Lemons and Limes 1.9 1.6 1.7 1.6 2.1 2.2

Tangerines, Mandarins and Clementines 48.4 93.6 51.6 90.5 48.6 48.7

Oranges 1.9 3.7 1.9 1.5 1.4 1.3 VEGETABLES

Cabbages and Other Brassicas 35.5 34.3 41.9 39.6 27.1 25.0

Garlic 3.0 3.1 2.3 2.4 5.7 6.4 Onions 16.0 12.1 11.1 10.2 19.0 19.8

Potatoes 168.7 229.2 193.4 216.8 228.8 243.8 Tomatoes 69.9 80.2 62.6 51.4 56.0 52.5


The production growth is represented in the table below.

Table 22. Production Growth of Fruits and Vegetables in Georgia %

Category 2006-07 2007-08 2008-09 2009-10 2010-11 FRUITS Apples 208.8 -59.0 94.5 -73.9 -13.9 Grapes 39.9 -22.7 -14.6 -19.6 -8.7

Peaches and Nectarines 54.7 67.1 28.5 -60.8 5.8

Pears -12.9 -16.3 -32.3 23.4 -9.9 Lemons and Limes -15.8 6.3 -5.9 31.3 2.4

Tangerines, Mandarins and Clementines 93.4 -44.9 75.4 -46.3 0.1

Oranges 94.7 -48.6 -21.1 -6.7 -8.9 VEGETABLES

Cabbages and Other Brassicas -3.4 22.2 -5.5 -31.6 -7.7



Page | 22

Garlic 3.3 -25.8 4.3 137.5 11.8 Onions -24.4 -8.3 -8.1 86.3 3.9

Potatoes 35.9 -15.6 12.1 5.5 6.6 Tomatoes 14.7 -21.9 -17.9 8.9 -6.2


According to the Ministry of Agriculture of Georgia, meeting the local demand with the local production is impossible. The local production of potatoes is sufficient for only 93% of population.

The Ministry has already proposed to allocate money for the purchase of equipment, construction of greenhouses and fruit and vegetable stores. This will engender less dependence upon imported fruits and vegetables. To avoid price increase and to provide the population with the local production, the Georgian Government has initiated a special program. Due to the consumers’ little demand and the large supply of fruits and vegetables, the peasants did not manage to sell all the production. According to the above mentioned program, special storehouses are being built. In such storehouses, the production retains all its quality up to the next season. Now the peasants have the opportunity to save up to 8,000 tons of production. Recently special refrigerators for storing production have been imported. They can hold up to 40,000 tons. The latest forecasts maintain that 83 vegetable, 43 fruit and 45 potato storehouses will have been established by the end of 2013. The Cabinet of Ministers aims to solve the problem of providing the country with local fruits.

EXTERNAL TRADE According to FruitNews, due to low local demand, the consumption of Georgian fruits and vegetables suffers a lot. The local farmers are unable to export their production and come across with difficulties because of lacking and expensive refrigerating equipment.

According to statistical data, the volumes of exported fruits and vegetables decreased considerably in 2011. 2,504,900 tons of apples were exported in 2010 and 272,100 tons in 2011. For the first six months of 2012, there are 607,900 tons of exported apples.

In comparison with the previous years, the exports of peaches have also diminished. 382,100 tons of peaches were exported in 2010; 323,100 tons in 2011. According to the existing statistical data, no peaches have been exported in 2012.

According to Geostat, the Georgian apples and peaches are generally exported to Azerbaijan, Belarus, Ukraine, Kazakhstan and Armenia.

The exports of grapes in 2010 amounted to 20,800 tons; in 2011 — 19,600 tons and for the first six months in 2012 — only 500 tons. The Georgian grapes are mainly exported to Belarus, Canada, Turkey and Kazakhstan.

The export performance for citruses leaves much to be desired: 35,285,100 tons in 2010; 13,836,400 tons in 2011 and 736,400 tons for 2012.



Page | 23

The volumes of exported vegetable products are represented in the table below.

Table 23. Exports of Vegetable Products of Georgia by HS Chapter

thsd USD

2007 2008 2009 2010 95574 63635 127008 122807

Source: www.geostat.ge

The table shows that since 2009, the exported volumes of vegetables in money terms have decreased by almost 3.3%. Currently Georgia is building a terminal in Ukraine for the storage of fruits and vegetables. The terminal will serve for the exports of the Georgian production to Ukraine and other countries in Eastern Europe. To encourage the export of fruits and vegetables, Georgia is establishing a state company that will support Georgian peasants. Specifically, it will help the manufacturers to pass the customs procedures, implement transportation and export of fruits and vegetables. For this reason, the Government intends to establish reception centers equipped with modern technology for sorting, packing and storage throughout the country. Currently the Government of Georgia tries to decrease the volumes of imported fruits and vegetables. The local agricultural production is crowded out by the imported one.

To have a high quality production, the local farmers work very hard. But cheaper imported production appears on the market shelves and creates obstacles for the local producer. The peasants complain of this situation and interpret that the local production is expensive because it is natural. As a result, the farmers have to reduce the prices so that their production could be consumed. This is the reason they claim that their hard work is not compensated.

The market shelves are full of both imported and local production. The prices of imported potatoes, cucumbers, tomatoes and sweet pepper are considerably higher than the local ones. For instance, a kilo of tomatoes imported from Turkey costs USD 3. The local tomatoes are twice expensive. The choice belongs to consumers and their ability to pay.

The main suppliers of fruits and vegetables in Georgia are: Turkey, Iran, China and Greece. As the authorities claim, the increase in imports takes place only when the local production does not ripen in time.

In 2011, Georgia did not export any garlic. Instead, 783,000 tons (USD 1,208,000) of garlic was imported. The main suppliers were: China — USD 969,400 (783.4 tons), Spain — USD 104,800 (22 tons), Hong Kong — USD 60,900 (27 tons). The following exporter countries are: Turkey, Ukraine, Armenia and Iran.



Page | 24

CONSUMER EXPENDITURE ON FRUITS AND VEGETABLES The table below represents the Georgian consumer’s expenditure on fruits and vegetables.

Table 24. Consumer Expenditure on Fruits and Vegetables in Georgia

mln USD

Category 2006 2007 2008 2009 2010 2011 FRUITS 143.6 156.1 187.5 149.5 164.9 198.8

VEGETABLES 549.4 610.1 763.4 647.9 686.4 829.9 Source: www.portal.euromonitor.com

The table shows that the consumer expenditure on fruits and vegetables has the trend of growth. The tables below represent graphical representations of fruits and vegetables.


2006 2007 2008 2009 2010 2011

FRUITS 143.6 156.1 187.5 149.5 164.9 198.8

0

50

100

150

200

250

mln

USD

Graph 2. Consumer Expenditure on Fruits




Page | 25


Both graphs give a rising trend in consumer expenditures of fruits and vegetables.

PRICES The prices of apples and potatoes in Georgia are represented below.


In 2006-2007, the prices of apples were USD 0.6. For 2008-2010, the prices of apples kept constant at USD 0.7. In 2011, the prices increased by 10 cents.

The prices of potatoes decreased in 2007 by 10 cents and increased by the same volume the following year. The decrease in 2009 by 10 cents was held in 2010 as well and increased in 2011 amounting to USD 0.5.

2006 2007 2008 2009 2010 2011

VEGETABLES 549.4 610.1 763.4 647.9 686.4 829.9

0

100

200

300

400

500

600

700

800

900

mln

USD

Graph 3. Consumer Expenditure on Vegetable

2006 2007 2008 2009 2010 2011

Apples 0.6 0.6 0.7 0.7 0.7 0.8

Potatoes 0.3 0.4 0.5 0.4 0.4 0.5

00.10.20.30.40.50.60.70.80.9

USD

Graph 4. Pricing for Apples and Potatoes in Georgia




Page | 26


http://bizzone.info/articles/1346101084.php

http://news.eizvestia.com/news-markets/full/gruziya-postroit-v-ukraine-terminal-po-hraneniyu-ovoshhej-i-fruktov

FRUITS AND VEGETABLES IN ARMENIA

EXECUTIVE SUMMARY

Armenia is famous for its fresh and tasty fruits and vegetables. The variety is astonishing, beginning with apricots and peaches, through cherries, apples, grapes, figs, pomegranates, pears, quince, plums, an incredible variety of melons, eggplants, tomatoes, peppers, cucumbers, cabbage, onions, potatoes, carrots, peas, beans, walnuts, almonds, hazelnuts — the list is almost endless, and each region has its own special variety and type.

PRODUCTION The production of fruits in Armenia is represented in the table below.

Table 25. The Production of Fruits and Grapes, Berries and Nuts in Armenia

Agricultural Crops (in English)

Agricultural Crops (in Armenian) Years Sown Area, ha

Harvest, metric

centner

Average Yield Capacity Per ha (metric

centner/ha)

Fruits, Nuts and Berries (excluding

Grapes)

Պտուղ և հատապտուղ (բացառությամբ խաղողի)

2008 36748 3178348 101.2

2009 36959 3321522 104.4

2010 37710 1284969 39.2

2011 37149 2393663 73.5

Subfamily of Apple Հնդավորներ

2008 12422 1478535 130.5 2009 12873 1505232 126.7 2010 13266 738116 58.6 2011 12879 1018445 84.9

Stone Fruits Կորիզավորներ

2008 19880 1484845 92.9 2009 19590 1611041 102.5 2010 19948 393549 24.7 2011 19538 1174374 73.2

Citrus Fruits Մերձարևադարձայիններ

2008 691 15196 27.3 2009 677 20520 34.7 2010 680 20602 34.6 2011 710 25673 39.7

Nuts Ընկուզապտուղներ 2008 1649 44710 30.6 2009 1701 43327 27.8 2010 1692 31860 20.7


http://bizzone.info/articles/1346101084.php




Page | 27

2011 1703 48903 30.9

Berries Հատապտուղներ

2008 2106 155062 74.9 2009 2118 141402 67.9 2010 2124 100842 48.3 2011 2319 126268 55.1

Grapes Խաղող

2008 16796 1858319 128.0 2009 16480 2086494 144.9 2010 17373 2229045 151.5 2011 16288 2295890 158.0

Source: www.armstat.am

The table shows that the gross harvest of fruits and berries in 2010 had a considerable decrease by 61.3% vis-à-vis the previous year. This occurred due to weather conditions and refers mostly to subfamily of apple, stone fruits, nuts and berries. In 2011, the volumes of harvested fruits, nuts and berries increased by 86.3%.

The production of vegetables and potatoes is represented in the table below.

Table 26. The Production of Vegetables and Potatoes in Armenia

Agricultural Crops (in English)

Agricultural Crops (in Armenian) Years Sown Area,

ha Harvested Area, ha

Harvest, metric

centner

Average Yield

Capacity Per ha (metric

centner/ha)

VEGETABLES (excluding Potatoes)

Բանջարանոցային մշակաբույսեր

(բացառությամբ կարտոֆիլի)

2008 24219 24217 7784017 321.4 2009 23914 23913 7822874 327.1 2010 23506 23458 6901177 294.2 2011 25010 24913 7640396 306.7

Potatoes Կարտոֆիլ

2008 34298 34298 6472154 188.7 2009 31998 31998 5899849 184.4 2010 28362 28326 4818550 170.1 2011 28675 28665 5568866 194.3

Cabbages (all types) Կաղամբ (բոլոր տեսակների)

2008 3668 3667 1286883 350.9 2009 3376 3376 1243773 368.4 2010 3535 3532 1234739 349.6 2011 3776 3776 1377677 364.9

Cauliflowers Ծաղկակաղամբ

2008 249 249 59866 240.4 2009 306 306 85788 280.2 2010 315 315 98960 314.2 2011 323 323 97770 302.7

Cucumbers Վարունգ

2008 2339 2339 680308 290.9 2009 2549 2549 710604 278.8 2010 2241 2237 551668 246.6 2011 2548 2548 642989 252.4

Tomatoes Լոլիկ 2008 6257 6257 2758480 440.9 2009 6231 6231 2732748 438.6 2010 6521 6517 2491948 382.4

http://www.armstat.am/


Page | 28

2011 6837 6837 2734795 400.0

Beetroot Սեղանի ճակնդեղ

2008 643 643 133063 206.9 2009 693 693 151634 218.8 2010 717 716 159148 222.3 2011 776 776 177212 228.4

Carrots Սեղանի գազար

2008 970 970 269698 278.0 2009 913 913 234048 256.4 2010 941 940 204145 217.2 2011 980 980 238912 243.8

Onions Գլուխ սոխ

2008 2487 2487 614493 247.1 2009 2085 2085 504162 241.8 2010 1871 1869 382819 204.8 2011 1961 1961 405755 206.9

Garlic Սխտոր

2008 882 882 91797 104.1 2009 866 866 92619 107.0 2010 898 898 88098 98.1 2011 1010 1010 105753 104.7


In 2010, the same phenomenon with the production volumes’ decrease has occurred with the vegetables including potatoes — up to 11.8% increase in harvested volumes. The decrease does not refer to cauliflower and beetroot. In 2011, the harvested volume increased by 10.7%.

EXTERNAL TRADE The foreign trade of fruits and vegetables is represented in the table below.

Table 27. The Foreign Trade of Fruits and Vegetables of Armenia

Category

2008 2009 2010 2011 EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT

tons thsd USD tons thsd

USD tons thsd USD tons thsd



USD Potatoes, fresh or chilled

483.9

102.5

4268.4

4642.3

5909.5 770.4 857.

3 761.1 4381.1 755.1 1577.

9 984.6 901.7 323.8 9365

.0 5079.1

Tomatoes, fresh or

chilled 7.2 5.6 93.8 278.9 621.3 144.8 138.

6 345.6 898.0 559.4 308.5 776.7 112.9 66.1 244.

6 583.9

Onions, shallots, garlic,

leeks, etc. fresh or chilled

0.5 1.8 4882.2

2852.5 20.4 51.0 6076 2974.

1 43.4 34.0 10521 4550.0 50.5 43.0 1067

8.0 5072.3

Cabbage, cauliflowe

r, kohlrabi & kale, fresh or chilled

0 0 20.6 5.0 0.7 0.2 1925 390.9 1924.1 609.2 72.3 12.3 1075

.3 468.0 152.0 31.9



Page | 29

Carrots, turnips,

salad beetroot,

salsify, celeriac, radishes

and similar edible roots,

fresh or chilled

0 0 2.7 1.3 465.8 53.8 31.5 15.7 395.8 74.2 0 0 283.9 76.2 210.

1 90.2

Cucumbers and

gherkins, fresh or chilled

7.4 5.8 161.2 508.4 44.7 12.3 131.5 336.8 169.9 60.1 442.0 1154.

4 29.2 16.8 401.4 1118.0

Vegetables nes,

fresh or chilled

43.6 45.5 47.7 138.1 506.5 311.3 22.1 63.0 531.5 285.3 247.3 545.8 660.3 587.2 414.

6 978.1

Vegetables

(uncooked,

steamed, boiled) frozen

4.8 5.0 35.3 36.4 9.4 8.8 45.0 96.1 58.1 17.2 8.2 20.4 15.9 48.2 46.1 88.7

Bananas, including plantains, fresh or

dried

0 0 8766.4

11866.8 0 0 8394 11768 0 0 8970.

5 12507 — — 11052.6

15479.5

Dates, figs,

pineapple,

avocado, guava,

fresh or dried

0 0 617.3 1290.1 15.0 15.1 654.

9 1216 0 0 871.4 2011.9 — — 919.

5 1789.7

Citrus fruit,

fresh or dried

0 0 8256.1

12165.1 0 0 1261

1 13999 0 0 17804 19947 22.8 17.2 16233.5

19186.6

Grapes, fresh or

dried 2346 1011

.4 434.9 774.0 3743.8 2196 959.

6 1178 6262.9

4871.6 958.1 1333.

0 6351

.3 6774.

0 857.

3 1255.8

Apples, pears and quinces,

fresh

34.1 8.6 133.3 247.5 401.1 167.5 271.3 384.2 26.6 12.1 650.3 936.0 5.3 4.1 1943

.6 2998.9

Stone fruit, fresh

(apricot, cherry, plum, peach,

etc)

6022 2438.0 22.4 24.0 12096 5316 4.2 9.8 2488.

5 1731.

4 225.6 442.0 8421.7

8412.8

105.5 221.1




Page | 30

In terms of volume, the most exported fruits and vegetables from Armenia for 2011 were: stone fruits (8421.7 tons), grapes (6351.3 tons) and cabbage (1075.3 tons). The most imported fruits and vegetables (in terms of volume) from Armenia in 2011 were: citrus fruits (16233.5 tons), bananas (11052.6 tons) and onions (10678.0 tons).

The table below shows the foreign trade of vegetables with the main countries.

Table 28. The Foreign Trade of Vegetables in Armenia

COUNTRY

2008 2009 2010 2011

EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT





USD

TOTAL 7891.9

1603.3

14651.2 8641.7 7891.

9 1603.

3 14651.

2 8641.

7 8670.

0 2594.

6 20959.

4 13399.

7 3160.

0 1663.

1 28781.

5 19045.6

Russia 462.4 195.3 678.9 411.7 301.6 158.4 1158.6 770.5 2810.1

1419.8 482.6 266.9 1555.

2 935.0 602.5 501.0

Georgia 6607.3

1440.5 1980.6 1056.2 7473.

8 1319.

7 3700.4 1453.4

2355.1 614.1 1761.7 1209.6 1440.

5 525.0 3491.3 2111.0

Iran 0.1 0.1 3968.3 2784.4 20.2 50.5 3343.7 1807.6 110.5 14.7 8893.9 4781.4 85.2 27.9 7390.9 3827.

9

Ukraine 15.2 9.8 2033.8 1120.6 0 0 1928.0 926.6 235.8 69.6 1603.9 823.2 — — 1545.1 990.7

Egypt 38.4 24.6 1214.8 975.2 0 0 1426.9 1101.1 0 0 844.8 681.9 — — 381.9 211.8

Canada 0 0 2073.9 1544.0 0 0 894.6 596.8 0 0 2285.3 1592.2 — — 2255.5 1754.9

USA 52.8 32.0 0.0 0.1 95.9 73.8 4.3 15.5 0.2 0.6 13.4 40.7 0.3 2.3 61.3 96.8

China 0 0 371.5 417.8 0 0 224.1 224.8 0 0 1574.0 1041.4 — — 1378.6 1347.3

France 14.7 67.4 0 0 0.2 0.2 1.1 5.5 0 0 0.7 3.6 0.0 0.1 80.1 77.8

Greece 0 0 984.2 556.8 0 0 939.1 650.6 0 0 2370.1 1876.5 — — 5865.1 3766.2

Netherlands 0 0 3372.3 3920.3 0 0 786.7 747.4 0.0 0.0 795.0 780.4 — — 2791.5 3027.

5

UAE 0.5 0.6 59.1 103.6 0 0 23.3 18.2 0 0 20.8 25.4 41.8 168.7 0.1 0.3


The foreign trade of vegetables of Armenia is mainly implemented with Russia, Georgia, Iran and the UAE.

The table below represents the foreign trade of fruits with the main countries.

Table 29. The Foreign Trade of Fruits in Armenia

COUNTRY

2008 2009 2010 2011

EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT EXPORT IMPORT





USD

TOTAL 12246.5

4972.6

27125.9

40637.2

17081.0

8261.2

24641.2

33711.6

9046.2 6887.2 3208

1.0 43596.

6 15053.

0 15476.5

33577.7 47282.3

Russia 8477.7

3604.7 0.0 0.2 12933.

5 6404.

1 0 0 8243.5 6344.6 39.5 59.6 13673.

3 14051.4 0.1 1.4

Georgia 3560.6

1199.3

7857.0 9821.2 2670.0 957.0 5650.2 5594.9 96.1 32.0 7872.

0 8279.3 1130.0 1170.8

4886.6 5276.9

Iran 0 0 2272. 4007.7 19.4 26.5 2397.0 3666.0 9.0 2.7 3325. 5261.0 10.0 41.5 3110. 5330.2



Page | 31

6 9 0

Belarus 19.0 9.5 0 0 127.9 64.4 0 0 220.1 104.6 0 0 76.1 40.3 0.9 6.4

Ukraine 154.4 98.2 44.7 366.3 1208.2 485.7 65.2 377.6 340.5 195.1 18.3 114.0 159.9 135.8 4.0 17.4

Egypt 0 0 1329.3 2087.4 0 0 991.0 1259.4 0 0 1065.

5 1274.0 — — 1511.9 1785.0

Ecuador 0 0 8245.7

11140.7 0 0 7589.6 10710.

2 0 0 8322.9

11600.2 — — 1106

6.4 15553.6

Pakistan 0 0 838.3 833.7 0 0.0 873.5 1112.4 0 0 953.0 1110.6 — — 1314.6 1590.2

South Africa 0 0 919.8 1718.4 0 0 529.2 699.0 0 0 1173.

4 1505.2 — — 867.8 1157.7

USA 3.4 4.6 133.2 882.4 2.2 18.7 216.2 924.1 9.3 6.8 269.5 1047.0 — — 339.1 1079.0

France 16.8 13.1 5.0 9.6 1.0 5.4 20.2 32.3 0 0 34.7 62.0 0.0 0.6 57.0 105.3

Greece 0 0 3469.9 5250.5 0 0 4475.0 5715.8 0 0 7050.

0 8880.0 — — 8984.8 11723.0


The foreign trade of fruits of Armenia is mainly implemented with Russia, Georgia, Iran and Ukraine.

PRICES The average prices1 of potatoes, cabbages, onions, carrots and apples are displayed below.

Table 30. The Average Price of Fruits and Vegetables in Armenia AMD

Agricultural Crops Measurement Unit 2007 2008 2009 2010 2011

Potatoes kg 235 155 117 182 265 Cabbages kg 107 123 154 153 147

Onions kg 263 254 276 374 355 Carrots kg 271 248 289 261 331 Apples kg 459 373 368 509 885


The following table enables to see the price growth for fruits and vegetables.

Table 31. The Price Change of Fruits and Vegetables in Armenia

over the previous year, %

CATEGORY 2007 2008 2009 2010 2011 Fruits 124.2 96.0 104.1 113.5 115.8 Vegetables and Potatoes 110.0 90.3 91.1 125.2 110.1


1 The average prices are given in Armenian Drams. In 2007, USD1 = AMD342.08. In 2008, USD1 = AMD 305.97. In 2009, USD1 = AMD 363.28. In 2010, USD1 = AMD 373.66. In 2011, USD1 = AMD 372.50.





Page | 32

The table shows that the prices of fruits have increased by 2.3% in 2011 vis-à-vis 2010. As for vegetables and potatoes for the same period, the prices have decreased by 15.1%.

REFERENCES www.armstat.am

www.portal.euromonitor.com

http://www.tacentral.com/dining.asp

http://www.tert.am/en/news/2012/08/22/robert-makaryan-artahanum/



http://www.tacentral.com/dining.asp

http://www.tert.am/en/news/2012/08/22/robert-makaryan-artahanum/


Page | 33

FRUITS AND VEGETABLES IN KUWAIT

EXECUTIVE SUMMARY Kuwait has a small but open economic structure, the general part of which is oil industry and public sector. The other dominating sectors in country are the real estate market, transportation, construction, as well as the financial sector.

Kuwait is considered to have one of the oldest and stable economic structures in the Middle East, with its excellent experience of 50 years in stock market and developed banking. The National Bank of Kuwait, established in 1952, is the biggest bank in the country, as well as it is the biggest bank in Arab region. The climate of the country makes it difficult for the agricultural sector to develop. To meet the 75% of drinking water market demand, filtration or import of water is required.

Kuwait is considered to be one of the most non-differentiated countries in the Middle East: its economy mainly depends on oil and gas world demands. Despite its stable macroeconomic position, the Kuwaiti government aims to diversify its economy by weakening the absolute dependency on oil incomes and making the country a trading and tourism regional center.

The Export/GDP ratio has stayed comparably stable during last few years: in 2011 it was 46.2%. In 2011, the exports grew up by 12.4% (in terms of USD value), whereas in 2010, it amounted to 26.9% thanks to the increase in world oil prices.

Over the past few years the economy of Kuwait is recording a stable growth, thanks to the increase in world oil prices. During the period of 2003-2007, the per capita GDP increased by 10.6%. Nevertheless, in 2009 the Kuwaiti economy recorded a significant decrease. Despite this Kuwait is continuing to be the second country in Community of Persian Gulf after Qatar with its per capita GDP level and the third developed economy after Saudi Arabia and the UAE.

According to forecasts, the economy of Kuwait will record a stable medium-term growth. The continuous investments will contribute to making a medium-term and long-term diversification.

MARKET OVERVIEW In contrast to other countries of Community of Persian Gulf, the consumer market in Kuwait is unique, because the country is supplied with goods by local cooperatives, which are located almost everywhere in Kuwait. Such cooperatives have a big supermarket, which supplies the population with high quality food and drinks. The supermarkets have big


Page | 34

sections of fresh fruits, vegetables, meat and bakery products. The local consumer cooperative “Jameeyah” is considered to be the primary shopping place for Kuwaitis.

Euromonitor has chosen the categories which will have stable growth for the upcoming years. The above-mentioned categories include: bottled water, juices, fruits and vegetables.

During the period of 2005-2008, the per capita income in Kuwait increased by 10.3% and it amounted to 935 Kuwaiti dinars (USD 3,355). It decreased by 2% in 2009 due to the world crisis. During 2005-2009, the per capita disposable income grew by 8.2%.

The table below represents the consumer expenditure on fruits and vegetables in Kuwait.

Table 32. Consumer Expenditure on Fruits and Vegetables in Kuwait mln USD

Category 2006 2007 2008 2009 2010 2011

Consumer Expenditure on Fruits 521.2 635.8 773.4 655.5 708.0 824.9

Consumer Expenditure on Vegetables 468.6 571.1 694.1 587.8 634.2 738.5


According to Euromonitor forecasts, the consumer expenditure on fruits and vegetables in Kuwait will grow by 73.4% and 67.4% respectively by 2020.

EXTERNAL TRADE In 2008, the imports of fresh vegetables to Kuwait amounted to 237,184 thousand USD, the 20.8% of which were imported from Saudi Arabia, 15% — from India and the 8.4% — from Libya. In 2008 the import volumes grew by 12% over the 2006 record.

Table 33. Kuwait's Imports of Vegetables by Countries

thsd USD

Country 2006 2007 2008 WORLD 210980 216452 237184 Saudi Arabia 8675 22712 49377 India 33016 32372 35809 Libya 7 41 20041 Syria 14634 32225 19725 USA 18398 18026 16971 Lebanon 52751 13643 15016 Jordan 10722 12115 12170 Turkey 3236 4644 9755 China 6695 9991 9088 Oman 1029 3917 6461 Iran 16398 12107 6139



Page | 35

Netherlands 6884 10593 5848 Georgia 0 0 3985 Bangladesh 3331 2538 3808 Australia 3235 2169 3269 Myanmar 7 1514 2736

Source: www.trademap.org

The imports of fresh fruits, nuts and melon to Kuwait in 2008 were 317,941 thousand USD, the 21.7% of which were imported from Philippines, the 11.5% — from Libya. In 2008 the import volume grew by 14% over the 2006.

Table 34. Kuwait's Imports of Fruits, Nuts and Melons by Countries

thsd USD

Country 2006 2007 2008 WORLD 278968 259235 317941 Philippines 39710 52669 69225 Libya 0 0 36859 Saudi Arabia 7926 17028 31730 USA 25239 27706 28611 India 19257 22239 26279 Switzerland 0 0 26274 Lebanon 104604 18714 19340 Syria 4430 8114 17597 Chile 5280 6421 8123 Iran 9023 7290 7464 Pakistan 3918 3412 6651 China 2199 4410 6236 France 2163 2458 3929 Jordan 1762 6140 3555 Australia 6612 5595 3193 New Zealand 2179 2442 3110 Italy 1734 2020 2802 Sri Lanka 2373 2712 2099 Turkey 3722 2793 1832 Yemen 1504 66 1768

Source: www.trademap.org

Many companies in Kuwait are the producers of food, including fresh fruits, vegetables and preserves. The most popular companies are: “Al Jisr International” CO W.L.L (http://aljisrinternational.com), “Alghanim Industries” (http://www.alghanim.com), “International Center Group” (http://www.international-center.com), “Jassim Al Wazzan Sons Gen. Trad. Co. W.L.L.” (http://www.wazzan.com).

http://www.trademap.org/

http://www.trademap.org/

http://aljisrinternational.com/

http://www.alghanim.com/

http://www.international-center.com/

http://fooddirectories.com/members/



http://www.wazzan.com/


Page | 36

According to the survey results of the operating transportation companies in Armenia, the transportation prices from Armenia to the UAE, Kuwait and Qatar in 2011 amounted to USD 2300 to 3500 per container (20-40 ft., the 4 ft. is the volume of container).

PRICES The prices for fresh fruits and vegetables in Kuwait are represented below.

Table 35. The prices of Fruits and Vegetables in Kuwait Category Measuring Unit Price (USD)

Apples 1 kg 2.06 Oranges 1 kg 1.55 Tomatoes 1 kg 1.42 Potatoes 1 kg 1.40

as for November, 2012

Source: www.numbeo.com

The table below represents the prices of apples and potatoes for 2006-2011.

Table 36. The Prices of Apples and Potatoes Per Kilo in Kuwait USD

Category 2006 2007 2008 2009 2010 2011 Apples 1.6 1.7 2.0 1.9 2.0 2.1 Potatoes 0.8 0.9 1.0 0.9 1.0 1.1


The potatoes are imported from Saudi Arabia, watermelon — from Yemen, eggplants — from Lebanon, apples — from France, Italy and the USA.

According to the vice president of Kuwaiti cooperative named “Bayan”, the prices of essential goods may increase. In 2012, the prices are expected to increase by 20% with the 15% inflation of 2011. He mentioned that the prices of citruses like orange and lemon, as well as apricot and vegetables are going to increase. These are the goods which are imported through the frontier of Syria. This growth will be engendered to the closing of the border of Syria, related with the complicated political situation in Syria. It is also mentioned that fruits and vegetables from Jordan could not meet the demand of Kuwaiti market.


www.dailyfinance.com

www.numbeo.com

http://www.numbeo.com/



http://www.dailyfinance.com/

http://www.numbeo.com/


Page | 37

FRUITS AND VEGETABLES IN EUROPE

EXECUTIVE SUMMARY Fruit and vegetables are important elements of a healthy, balanced diet, be it as part of a main meal or as a snack. They bring us vitamins, minerals and fiber, some energy (mainly in the form of sugar), as well as certain minor components - often referred to as phytochemicals or secondary plant products - which are potentially beneficial for our health. Epidemiological studies have shown that high intakes of fruit and vegetables are associated with a lower risk of chronic diseases; particularly, cardiovascular disease, also type 2 diabetes, and certain cancers i.e. of the mouth, pharynx, larynx, esophageal, stomach and lungs. A majority of European citizens associate a healthy diet with fruit and vegetable consumption, and many of them believe that their diet is healthy. But is this true? Do people in Europe actually get the amounts of fruit and vegetables recommended for good health? Aiming to answer this question, this review also looks deeper into what factors influence fruit and vegetable consumption in Europe, and what are the best intervention approaches to increase it. Lastly, we will have a glance at on-going European initiatives around fruit and vegetable consumption. First of all, we need to understand which foods and drinks fall into the category of fruit and vegetables, how much we are recommended to have of these and why it might be difficult to obtain reliable and comparable data on fruit and vegetable consumption.

PRODUCTION The production of fruits and vegetables in Europe and the EU by category2 is represented in the table below.

Table 37. Production of Fruits and Vegetables by Category in Europe and the EU

thsd tons

CATEGORY Country Group 2006 2007 2008 2009 2010 2011

Apples Europe 17540.2 17277.0 17899.5 18617.1 16335.0 16112.9

EU 11883.1 10281.1 12011.9 11950.0 10292.9 9918.2

Grapes Europe 33789.4 31309.5 32016.6 32133.8 31481.3 30932.0

EU 27503.7 25100.5 25450.5 25007.1 24421.7 23679.0

Peaches and Nectarines Europe 4961.1 4907.1 4767.7 4923.4 4559.4 4456.6

EU 4270.6 4193.9 4037.1 4175.5 3845.5 3740.8

Pears Europe 3580.5 3578.3 3193.4 3711.9 3268.4 3210.4

EU 2860.7 2728.4 2399.2 2849.0 2483.5 2400.4 Tangerines, Mandarins Europe 4341.8 3911.4 4107.0 4106.3 3168.4 2953.3

2 The representation of fruit and vegetable production by countries is represented in the annex (Figure 1) at the end of the report.


Page | 38

and Clementines EU 3434.3 3005.5 3222.5 3102.8 2173.5 1936.6

Bananas Europe 569.6 588.4 612.4 603.2 630.9 646.2

EU 391.4 399.3 411.3 398.7 420.7 428.0

Lemons and Limes Europe 2281.5 1832.1 1987.1 1984.7 1996.8 1925.7

EU 1568.1 1176.2 1309.8 1197.9 1205.8 1115.2

Oranges Europe 11912.4 12035.8 12434.3 11971.0 12297.4 12393.8

EU 6925.4 6327.8 6596.5 6084.3 6521.5 6420.5

Pineapples Europe 2.5 3.0 3.1 3.2 3.6 3.9

EU 2.5 3.0 3.1 3.2 3.6 3.9

Potatoes Europe 131180.8 135761.7 126303.6 128343.8 112302.1 109736.1

EU 56986.4 63753.5 61575.4 62534.0 56840.8 56829.5

Tomatoes Europe 31650.5 31028.1 31805.4 34230.7 31929.9 32018.5

EU 16585.3 16908.7 16363.2 18199.9 16901.9 16999.7

Onions Europe 10044.3 9739.2 10838.5 10711.0 10426.9 10530.1

EU 5081.1 5342.7 5487.4 5823.0 5506.2 5620.1

Garlic Europe 906.7 862.3 859.5 882.0 837.8 821.5

EU 304.0 289.2 289.8 299.8 285.8 282.2 Cabbages and Other

Brasssicas Europe 13163.3 11297.7 12448.1 12490.5 11530.9 11133.4

EU 5576.8 5451.8 5545.3 5551.0 5213.9 5127.8

Cauliflower and Broccoli Europe 2394.5 2441.9 2409.3 2423.7 2485.7 2514.7

EU 2179.9 2256.6 2197.7 2208.9 2269.9 2296.5 Source: www.portal.euromonitor.com

The consumer expenditure on fruits and vegetables in Europe and the EU3 is represented in the table below.

Table 38. Consumer Expenditure on Fruits and Vegetables in Europe and the EU

mln USD


Consumer Expenditure on Fruits

Europe 102663.6 120960.9 138553.1 120962.1 125200.3 139095.7 EU 75556.4 86160.0 97398.7 87177.4 84889.0 92990.5

Consumer Expenditure on Vegetables

Europe 148007.2 175358.0 192725.8 170564.6 178154.3 198047.1 EU 110499.1 127991.3 137959.1 124825.9 122682.2 134942.2


3 The representation of consumer expenditure on fruits and vegetables by countries is represented in the annex (Figure 2) at the end of the report.




Page | 39

EXTERNAL TRADE

The trade deficit of fresh and processed fruit and vegetables in the EU with third countries has grown in recent years. By 2011 it stood at 9.8 million Euros, according to a study by the Directorate General for Agriculture and Rural Development of the European Commission entitled "The EU and the leading global players in the fruit and vegetable trade," published in July.

The trade deficit of fresh and processed fruit and vegetables in the EU in 1999 was 7.6 million Euros and the year before was up to 9.8 million Euros.

In this study, the EU trade deficit with third countries is mainly due to deficits in tropical fruits particularly because of the increased imports of bananas and pineapples.

Imports of other fresh fruits such as table grapes and oranges from the countries of the south hemisphere also experienced strong growth; however the total deficit of the fruit sector is not as noticeable since the increase of these imports has been offset by the increase exports of other fresh fruits like apples and pears.

By contrast, vegetable trade between the EU and third countries, both fresh and processed is quite balanced. There was an increase in imports of vegetables from Mediterranean countries, including Morocco, which has coincided with a boom in exports of fresh vegetables to Russia. However, despite the fact that exports of fruit and vegetables from the EU to Russia have increased impressively in the last decade, the percentage of European Union participation in the Russian market is declining against Turkey and China. The expansion of tomato exports from Turkey to the former Soviet Union, particularly in Russia, has been impressive, according to the European Commission study. Turkey currently supplies Russia three times more tomatoes than EU.

The EU also faces competition from Turkey and China in the Russian market for cucumber. Although the EU had been the dominant supplier of cucumbers to Russia for the last decade, sales from Turkey and China in recent years outsold those of the EU.

As for China, the European Commission report says it has tripled its exports of fruit and vegetables throughout the world and especially to the EU. It highlights especially apple juice export. China is also the leading provider of EU fruit and vegetables, particularly tomatoes and mushrooms.

For FEPEX, the trade deficit behavior is caused by low protective tariff and non-tariff of the Community production, which contrasts strongly with sanitary barriers imposed on Community exports which shield the markets of other major areas of consumption.

The graph below represents the exports and imports of fruits and vegetables in Europe.


Page | 40


The graph above shows that both imports and exports have a growing trend in Europe4. Nevertheless, the imports dominate over exports.

PRICES The prices of apples and potatoes per kilo in Europe and the EU5 are represented in the table below.

Table 39. The Cost of Apples and Potatoes Per Kg in Europe and the EU

USD


Cost of Apples Per Kg Europe 1.6 2.0 2.2 2.1 2.1 2.3

EU 1.8 2.1 2.4 2.2 2.2 2.4

Cost of Potatoes Per Kg Europe 0.9 1.0 1.1 1.0 1.0 1.1

EU 0.9 1.0 1.2 1.1 1.1 1.2 Source: www.portal.euromonitor.com

The prices of apples and potatoes have a growing trend as it is seen from the table.

4 The foreign trade of fruits and vegetables by countries are represented in the annex (Figure 3) at the end of the report. 5 The costs of apples and potatoes per kilo by countries are represented in the annex (Figure 4) at the end of the report.

2006 2007 2008 2009 2010 2011

EXPORTS (fob) 62460.7 74419.2 83607.5 75615.1 79322.6 90401.6

IMPORTS (cif) 81848.3 97419.9 110582.3 97954.1 101945.6 115804.8

0

20000

40000

60000

80000

100000

120000

140000m

ln U

SD

Graph 5. The European Foreign Trade of Fruits and Vegetables




Page | 41


http://www.intracen.org/exporters/fruit-vegetables/european-market-news/

http://www.freshconveniencecongress.com/resources/documents/1308561709cindyvanrijswick.pdf

http://www.eufic.org/article/en/expid/Fruit-vegetable-consumption-Europe/


http://www.sciencedaily.com/releases/2012/10/121003082732.htm



http://www.freshconveniencecongress.com/resources/documents/1308561709cindyvanrijswick.pdf

http://www.eufic.org/article/en/expid/Fruit-vegetable-consumption-Europe/


http://www.sciencedaily.com/releases/2012/10/121003082732.htm

Armenian Development Agency

2012

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