Enhancing Export of Fruit and Vegetables to EU markets Jose-Maria Garcia-Alvarez-Coque Polythecnic...
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Transcript of Enhancing Export of Fruit and Vegetables to EU markets Jose-Maria Garcia-Alvarez-Coque Polythecnic...
Enhancing Export of Fruit and Vegetables to
EU marketsJose-Maria Garcia-Alvarez-Coque
Polythecnic University, Valencia
The EU market for fruit and vegetables
One of the world largest markets: 10.5 per cent of the world consumption
29 million tons of fruits 41 million tons of vegetables
Moderate import growth: Total imports growing at 1.5 per cent per year. Significant changes in product composition. Though protected, still a large importer from non-EU
countries.
Why would Syria be interested in the EU market?
Syria is a horticultural exporter. Shares in total Syrian agricultural export value: Fresh vegetables: 28 % Fresh fruit: 15 % Processed F&V 3.5 %
The import EU market is still growing for some products of export interest for Syria. Potatoes, onion, garlic, table grapes, apples, cherries,
apricots, tomatoes.
The Association Agreement will open: New market opportunities. Stable framework for trade.
Syrian exports are over-specialized on AFTA markets Except for potatoes and garlic, the EU destination
accounts for < 1 % of total Syrian export value.
Structure of Syrian exports 1998-2000 (%)Region/
Product
AFTA
(%)
EU Central Europe
Rest of World
Total exports
(Metric Tons)
Tomatoes 84.72 0.06 0.04 15.17 155,428
Potatoes 36.25 61.99 0.03 1.73 31,415
Apples 99.59 0.01 0.00 0.40 19,125
Pears 99.94 0.01 0.00 0.05 10,165
Cherries 63.95 0.04 0.00 36.1 10,392
Oranges 97.33 0.01 0.05 2.61 16,093
Mandarins 97.57 0.03 0.16 2.25 13.088
Grapes 99.44 0.04 0.00 0.51 26.585
Source: Customs Department, NAPC.
Factors of success for fruit and vegetable exports:
Market access in the EUAdaptation to
EU distributionand consumer trends
Comparative advantage for fruit and Vegetable production
Farm-price comparisons Monthly price comparisons
were performed between Syria and 5 EU countries for 1998-2000.
Product %Apple 13
Pears 6
Oranges 22
Mandarins 42
Lemons 21
Grapes 87
Apricots 88
Cherries 91
Cucumbers 90
Potatoes 37
Onions 67
W.Melons 100
Percentage of observations where Syrian prices
undercut farm-prices in EU countries:
Why low prices?
Factors of success for fruit and vegetable exports:
Market access in the EUAdaptation to EU distribution
and consumer trends
Comparative advantage for fruit and Vegetable production
The EU market-access issue
For most fruits and vegetables extra-EU sources sharply reduced in some parts of the year: import substitution.
On what depends the benefits of the Association Agreement? Seasonal pattern of the entry price system. Extent of quantitative limits and calendars. Management of non-tariff barriers. Adaptation of Syrian harvesting seasons to EU
concessions.
The agricultural protocols. The tomato case
Country Calendar Tariff Quota (MT)
Jordan 1 December to 31 March -
Morocco 1 October to 31 March 150,676
5,000 in October
Tunisia 15 November to 30 April -
Egypt 1 November to 31 March -
Lebanon 5,000
Percentage of Syrian tomato harvest: From December to March: 25 % From October to April: 48 %
The entry price. Seasonal variationsPeriod Entry price
(Euro/MT)
Entry price
(Morocco)
(Euro/MT)
% of Syrian harvest
April 1126 6
May 726 2
June to September 526 50
1 October to
20 December
626 461 22
21 – 31 December 726 461 2
1 January to
31 March
846 461 18
Factors of success for fruit and vegetable exports:
Market access in the EUAdaptation to
EU distributionand consumer trends
Comparative advantage for fruit and Vegetable production
What EU consumers demand. Products are not classified by botanic varieties… but by emerging consumer goals:
Convenience: take-away, eating in front of TV, meals solutions.
Snacking: “eating on the move” Health and environment.
Contradictory consumer behavior: Quick to prepare but also healthy Authentic, but also of convenience Cheap but available the whole year Unusual but with affordable price Homogeneous in appearance, but ecological.
The modern distribution. The first European group (Carrefour)
has a turnover of 50 billion € (Wal-Mart more than doubles this figure).
The “Top 5”
Implications for horticultural traders Number of suppliers is reducing, with greater volumes.
Relations based on trust and reputation. Specialized working teams per customer. Quality becomes not a factor of differentiation, but a
precondition.
Supply chains enforce internal relations and develop wide incentives for assuring timely production and delivery. They are based on shared information and reciprocal scheduling, product quality assurances and transaction volume commitments.
The traditional marketing
Farmers
Local commissioners
Packing houses
Exporters
Foreign market
Wholesale marketCommissioners
The public role in breaking the vicious circle
EnhancedExport
Performance
EnhancedExport
Performance
ImprovedMarketingOrganizatio
n
ImprovedMarketingOrganizatio
n
CoordinationQuality policyTrainingCooperationSupply Chains
Market incentivesStable framework
Foreign Investment