Packinghouse Report

Vegetable Packinghouse

Design

Agribusiness Development Project

Vegetable Packinghouse Design Project—Final Report

1

Table of Contents I. Executive Summary ………………………..……………………..………………….……. 2

II. Packinghouse Designs ……………..………………………………………………..……. 2

Model A—Renovation Project ………………………………………………………….…… 4

Model B—Greenfield Project ……………………………………………………………….. 5

Model C—Greenfield Project w/Tomatoes and Peppers ………………………………… 6

III. Packinghouse Narrative ...………………………………………………………………… 14

IV. Financial Summaries ……...………………………………………………………………. 25

Model A—Renovation Project ………………………………………………………….…… 25

Model B—Greenfield Project ……………………………………………………………….. 26

Model C—Greenfield Project w/Tomatoes and Peppers ………………………………… 28

V. Turnkey Implementation Plan .…………………………………………………….……… 29

VI. Marketing Opportunities …………………………………………………………….…….. 30

VII. Financing Opportunities …………………………………………………………….…….. 30

VIII. Refrigeration/Construction Observations and Working Assumptions ….……...… 33

IX. Postharvest Observations ………………………………………………………………… 34

X. Acknowledgements ……………………………………………………………….…….…. 43

XI. Addenda …………………………………………..…………………………………....…… 43

Financial Exhibits ……………………………………………………………………………. 43

Supplier Database …………………………………………………………………………… 43

Team Activities ………………………………………………………………………………. 43

Contacts ………………………………………………………………………………………. 43


2

I. Executive Summary

The packinghouse team was charged with the task of designing and preparing complete financial models for two alternative vegetable packinghouses in Moldova. One would be based upon an existing facility, and one would be constructed on a “Greenfield“ basis.

The team spent the initial part of the trip traveling in Moldova and interviewing growers, packers, and shippers of vegetables, as well as several design and construction engineering firms. They also visited with leaders from groups of cooperatives, trade associations, and appropriate government agencies. The packinghouse designs and financial models were then executed based upon the information gathered from these interviews.

It was evident from the work done that it would be very difficult to construct a new packing and storage facility that would be focused on the traditional storage crops, such as carrots, beets, potatoes, and onions. However, the financial viability increases as the percentage of high value vegetables increases. These products include tomatoes, bell peppers, and cucumbers. In addition, the specific renovation design and financial modeling analysis found that there can be positive economics in the renovation of existing facilities in some cases.

The team concluded that Moldova has several production and marketing advantages that indicate that investments in high value fresh vegetable production and packing assets could be good investments. However, there are certain impediments, such as an inhospitable banking system and no tradition of modern postharvest handling and packaging that will meet current sanitary and phytosanitary standards. Given all of these circumstances, the Team recommended that USAID support the construction of a model vegetable packinghouse facility; that expert assistance be provided in the areas of engineering and postharvest practices during the implementation of this model; that USAID assist Moldova to move toward EurepGAP compliance; that an analysis of the viability of heated greenhouse production of vegetables be conducted; that additional packinghouse construction and financial models be investigated that involved the packing of fruit as well as vegetables in the facility, given that fruit represents over 90% of the horticulture sector of Moldova; and that USAID assist Moldova in increasing the diversity of its vegetable products, as well as moving toward value-added vegetable products that can take advantage of the competitive wage rates of Moldova.

II. Packinghouse Designs The layouts of the packinglines and storage facilities were based upon the following general considerations:

1. Product mix a. Warm season, chilling-sensitive vegetables include tomatoes, peppers, cucumbers,

and eggplant. Ideal temperature ranges from 7.5-12.5ºC depending on the particular product, but a reasonable storage temperature range for all products in a single storage room is 10-12ºC. It is expected that these products would be held four days at most before shipping.

b. Cool season vegetables for storage include onion, cabbage, carrots, and red beets. These require 0-1ºC with high humidity (95%) and depending on initial quality can be stored for three to six months with good pack-out quality.

c. Cool season vegetables that are cooled (0-5ºC) and shipped with minimal storage (few days) include small volumes of green onions, leeks, and cauliflower.


3

2. Maximum volumes of warm season vegetables currently occur in September and October; maximum volumes of storage vegetables occur in October and November.

3. Product needs to be harvested and transported to the packinghouse as soon as possible

and held in the shade until packed. Coordination of harvesting and packing operations is needed to avoid unnecessary delays which will reduce product quality.

4. A simple packinghouse that allows for versatility and reconfiguration of the packing lines

because of the range of products and product volumes is optimal. It should allow for segregation of products (i.e. organic vs. conventionally produced vegetables).

5. Appropriate toilets and hand washing stations should be present to ensure good worker

hygiene.

6. Opportunities for future expansion of facilities, improvement of packingline equipment (automated sizers), and increased through-put should be available. The latter may involve two work shifts in the packinghouse.

7. The ideal packinghouse situation is one in which product is handled as little as possible

under the cleanest conditions possible. Therefore, field crates must be cleaned on a regular schedule. The packinglines need to be cleaned frequently.

8. Water, if used, must be of potable quality. It is very difficult to consistently and effectively

sanitize reused water and, therefore, no reuse of water should be considered.

9. The availability of labor and the variable product mix and volumes permit substantial manual handling of product. However, to achieve high quality, consistently-packed product, worker training is essential. Each packinghouse requires a supervisor on site.

10. Appropriate packingline components and operations may include the following (the

photos and diagrams of some equipment components are not meant as an endorsement of any particular company but strictly to provide a visual example): a. Unload field crates and store temporarily inside packinghouse (1-2 persons). b. Dump field crates onto a mechanized conveyor that allows for presorting (defect

removal); conveyor speed should be adjustable for variable volumes (1-2 persons) (Figure 1). To empty storage bins, a bin dumper is needed (fixed or moveable).

c. Brush bed washer with overhead water spray of single use of potable water (only necessary if product is dusty or dirty). Forced air (high speed ventilation) drying (only if product is washed). (Figure 2)

d. Roller conveyor (mechanized) for manual sorting and sizing into two to three categories (four to six persons). (Figure 3) Adequate lighting is essential to ensure good sorting and classifying. A divider can be placed towards the end of the line and workers move product to one side or other of the conveyor to create the categories. Classified product is subsequently moved to the packing tables on a flatbed conveyor. Figure 6 shows different types of mechanized and automated classifying systems.

e. Packing stations. Product is moved on the flat bed conveyor, and guides channel the product so that it gently rolls down onto the pack tables. A single long inclined padded accumulation table can be subdivided into two or three tables for product categories of size, grade, or color (Figure 4).

f. Carton boxes are placed on small tables or benches next to accumulation tables. When workers finish packing product into the boxes, they slide the packed carton


4

onto a gravity fed roller conveyor. The roller conveyor can be two or three tiers (empty wooden and carton boxes on top tiers; packed product on lower tier) (Figure 5).

g. Cartons are palletized and strapped to stabilize the pallet. Boxes must be perfectly aligned because the stacking strength of carton boxes resides in the corners. If product volumes are high and pallets are completed quickly, product can be palletized in the packinghouse, and then pallets moved to the cooler. If volumes are small, it is preferable to palletize inside the cooler.

h. Temperature management is essential for postharvest handling of perishable products. Cooling the product to remove initial field heat, and storing and transporting products at near optimum temperatures are desirable to maintain quality and achieve adequate storage or shelf-life. Forced air cooling is a versatile cooling method. Products such as grapes, strawberries, peaches, peppers, tomatoes, cauliflower, and mushrooms are routinely and effectively forced-air cooled. To obtain maximum benefit from cooling, product needs to be cooled quickly after harvest. A good rule of thumb is that one day of shelf-life is lost for every hour of delay to cool. Shipping dock should be enclosed and refrigerated. For forced-air cooling, selection of evaporator, compressor, and condenser equipment requires calculating peak refrigeration demand. One must know or estimate product arrival times during the day and the temperature of incoming product in order to ensure an acceptable cooling rate (varies depending on product, packaging, and pallet stacking). Typically product is removed from the cooler when it has reached 7/8 cooling. The amount of refrigeration capacity needed is based on several factors including initial product temperature, final temperature, rate of cooling, amount of product, and the type of product (specific heat of fruits and vegetables varies from 0.85 to 0.95 BTU/pound/°F). One ton of refrigeration = 12,000 BTU/hr = ~3.5 kW refrigeration. BTUs of heat removed = product weight x specific heat x temperature difference. Total refrigeration load equals product cooling load plus heat from miscellaneous sources such as fan motors, lift trucks, lights, people, and conduction through the walls. Generally it is considered that these miscellaneous heat loads equal 25% of the product load. An extra 10-15% of the total heat load is added as a safety factor to account for facility use above expectations (from Thompson, J.F. et al. (2000). Commercial cooling of fruits, vegetables, and flowers. Univ. California Agric. Natl. Res. Publication 21567).

Model A—Renovation Project (Lefcons)

1. The existing facility is a standard L-shaped layout with efficient product flow (Figure 7A). The building appears to be solid masonry with a new metal roof on wood joists. A suspended ceiling needs to be installed where fresh product is being handled. Floors need to be leveled and pitched to drain where required. Walls need to be smooth and impervious for sanitation. Non-weight bearing interior walls should be eliminated. The packinghouse, forced-air cooler, storage room, and shipping docks would be 246, 93, 130 and 21 square meters, respectively. The cooler and storage areas are undersized for the expected product volumes. It is assumed that the floor over the basement is capable of supporting the cold storage and cooler. It is assumed that adequate electrical power is available, and that there is adequate water quantity, pressure and quality as stated by owner. Site will need new septic field and roads to receiving and shipping areas. Facility could be expanded from the cooler and cold storage area; packinghouse could run two shifts per day.


5

2. Maximum production is in September for tomatoes (12.5 ton/day), peppers (4.2 ton/day), cucumber (2.5 ton/day), and eggplant (2.5 ton/day). Tomatoes are harvested six days for four weeks and other vegetables are harvested three days for four weeks; estimated pallet weights of 12 x 12 carton boxes (30 x 40 x 13 cm) of 864 kg net for tomato and cucumbers, and 720 kg net for eggplant and peppers. Products should be cooled to 10-12°C and stored a maximum of four days (ideal temperatures vary from this range, but for short-term storage and transport this temperature range would be adequate).

3. Maximum storage volumes (300 kg bins) of 167, 80, 200, and 17 bins of onions,

cabbages, carrots, and leeks, respectively. 4. A potential packinghouse layout is diagrammed in Figure 7B. A shed-roof should be

added to the receiving area to provide shade and protection from rain. The packinghouse consists of three lines: • #1 and #2 (tomatoes, peppers): dump and presort, brush washer, dryer, manual sort

and size conveyor, pack tables, roller conveyors of packed cartons to the pre-cooler. A bin dump is included in cost estimates and could be installed for seasonal use (i.e., for pack-out of cabbages and other stored products).

• #3 is a manual pack area for small volumes of odd lots (green onions, cabbage, etc.).

5. An area for quality control should be delineated and added to the layout. 6. Forced air pre-cooler for tomatoes, peppers, cucumbers and eggplants; two tunnels for

17 tons of product. After cooling, product could be held at 10-12°C in the storage room. Since product is palletized in pre-cooler, cooling needs should be reduced. Room is undersized for expected volumes.

7. Cabbage and carrots go directly to the cold storage; Cold storage designed for 385 bins

stacked five high with a central aisle (4 bins x 11 rows, 3 bins x 11 rows).

8. In October, the low volumes of warm-season vegetables will be held in the forced-air cooler after cooling since the temperature of the single storage room will be reduced to 1ºC for the arrival of considerable volumes of cool season vegetables.

9. Product is shipped from an enclosed refrigerated dock.

10. Crate washing equipment or area will be on the outside of the packinghouse.

11. Wood and carton boxes need to be stored in a clean area, possibly in the basement in

this case. Small areas are provided in the packinghouse layout for carton make-up and temporary holding of wooden boxes.

Model B—Cemcam Cooperative Greenfield Project

1. The facility is designed in a straight-through layout with a central corridor three meters wide, terminating at the shipping dock (Figure 8A). The building will be masonry construction in non-refrigerated areas and insulated metal sandwich panels for refrigerated areas. Allowances for roads and paving are included in estimates; site utilities are included in allowances. The floor will be level with floor drains only in the packinghouse area. The total facility is 1728 square meters (23 x 72m), with packinghouse, cooler, storage, and shipping areas of 528, 240, 864, and 96 square


6

meters, respectively. Receiving dock is enclosed. Shipping dock is enclosed and refrigerated. Facility could be readily expanded.

2. Maximum production is in September for tomatoes (12.5 ton/day) and peppers (5.9

ton/day); tomatoes are harvested six days for four weeks and peppers are harvested three days for four weeks; estimated pallet weights are 12 x 12 carton boxes (30 x 40 x 13cm), 864 kg net for tomato and 720 kg net for peppers; product is cooled to 10-12C and stored up to 4 days.

3. Maximum storage volumes (300 kg bins) of 2100, 467, and 467 bins are estimated for

cabbages, carrots, and red beets, respectively.

4. Forced air pre-cooling will require two rooms with two tunnels per room, each with capacity of 17 tons of product per room per day. Rooms are separated by the central corridor and offer the option of being operated at two temperatures.

5. Cold storage consists of four rooms each capable of holding 760 bins of cabbage,

carrots, and/or beets for a total of 228 tons of product per room; bins are stacked seven high. The four rooms allow versatility regarding storage temperatures, product mix (do not store ethylene producing products with ethylene-sensitive products), and product volume (shut down rooms as volumes decrease).

6. A potential packinghouse layout is diagrammed in Figure 8B. The area dedicated to the

packinghouse is relatively large for the volumes cited, but expansion with an additional line or reconfiguration to include other equipment would be possible. The packinghouse consists of four lines: a. #1 and #2 (tomatoes, peppers): dump and presort, brush washer, dryer, manual sort

and size conveyor, pack tables, roller conveyors of packed cartons to cooler. b. #3 would have a mechanized grader that would permit more specific grading by size,

weight, or color for higher value pack-outs and could be used for various products. It includes a bin dump.

c. #4 is a manual pack area for small volumes of odd lots.

7. Crate washing equipment is situated on the receiving dock. 8. Wood and carton boxes need to be stored in a clean area, such as an enclosed room on

the receiving dock. Small areas are provided in the packinghouse layout for carton make-up and temporary holding of wooden boxes.

9. A quality control area should be added to the packinghouse layout.

Model C—Cemcam Cooperative Greenfield Project for Tomatoes and Peppers

1. The facility is designed in a straight-through layout with a central corridor three meters wide, terminating at the shipping dock (Figure 9A). The building and site comments are the same as for Model B. The total facility is 735 square meters (23 x 72m), with packinghouse, cooler, storage and shipping areas of 528, 240, 864, and 96 square meters, respectively. Receiving dock is enclosed. Shipping dock is enclosed and refrigerated. Facility could be readily expanded.

2. Maximum production is in September for tomatoes (12.5 ton/day) and peppers (5.9

ton/day); tomatoes will be harvested six days for four weeks and peppers will be harvested


7

three days for four weeks; pallet weights of 12 x 12 carton boxes (30 x 40 x 13cm) of 864 kg net for tomato and 720 kg net peppers; products are cooled to 10-12C and stored maximum four days.

3. One forced-air cooling room with internal pass-through aisle; two tunnels, 17 tons of product

per day.

4. Cold storage capacity (10-12ºC) of 100 pallets 39 tons of product with pass through aisle to refrigerated enclosed shipping area.

5. A potential packinghouse layout is diagrammed in Figure 9B. The area dedicated to the

packinghouse is large for the volumes of tomatoes and peppers, but allows for expansion and versatility in types of product presentations. The packinghouse consists of four lines: a. Line #1 (tomatoes, peppers): dump and presort, brush washer, dryer, manual

sort/size conveyor, pack tables, roller conveyors of packed cartons to the cooler. b. Line #2 would have a mechanized grader that would permit more specific grading by

size, weight, or color.

6. Crate washing equipment is situated on the receiving dock. 7. Wood and carton boxes need to be stored in a clean area, such as an enclosed room on

the receiving dock. Small areas are provided in the packinghouse layout for carton make-up and temporary holding of wooden boxes.

8. A quality control area should be added to the packinghouse layout.


8

Figure 1

A = Dump field crates and PresortA = Dump field crates and PresortB = Brush bed washer single use water (optional)

C = Forced air dryer (optional)

D = Roller conveyor for sorting & sizing

E = Pack table

F = Pack table of 2nd size or quality

G = Gravity fed conveyor for packed cartons

H = Palletize inside the forced air cooler

Kitinoja & Kader, 2002. A small-scale postharvest handling manual.

http://www.marchantschmidt.com

Example of 500-1000 kg bin dumper

Figure 2

http://www.agriculturalinstallations.com/

A = Dump field crates and Presort

B = Brush bed washer single use water (optional)B = Brush bed washer single use water (optional)

C = Forced air dryer (optional)C = Forced air dryer (optional)D = Roller conveyor for sorting & sizing

E = Pack table




http://www.thomasmoore.com/


9

Figure 3


B = Brush bed washer single use water (optional)


D = Roller conveyor for defect sorting, but mostly color and sizD = Roller conveyor for defect sorting, but mostly color and size sortinge sortingE = Pack table




Figure 4





E = Pack tableE = Pack table

F = Pack table of 2F = Pack table of 2ndnd size or qualitysize or qualityG = Gravity fed conveyor for packed cartons


Flat bed conveyor to packing tablesMobil stands for cartons next toPack table


10

Figure 5





E = Pack table


G = Gravity fed conveyor for packed cartonsG = Gravity fed conveyor for packed cartonsH = Palletize inside the forced air cooler

3-tier roller conveyor; lower level usedFor packed cartons

Packed product on roller conveyor Entering palletizing area

Figure 6

http://www.kerianmachines.com/ Gttp://www.greefa.nl

http://www.aweta.nl/ http://www.durand-wayland.coml

Mechanized sorting

Computerized automatic classification


11

Figure 7A. Site map for Lefcons Packing and Cooling Facility (Model A).

Figure 7B. Packinghouse Layout for Lefcons (Model A). Packinglines 1 and 2 have manual crate dump (A), brush washer (B), dryer (C), manual sorting on roller conveyor (D), 2 packing tables (E, F), gravity fed roller conveyer (G), and palletization in the cooler (H). Pack area 3 is for small volumes.


12

Figure 8A. Site map for Cemcam Coop Packing and Cooling Facility (Model B).

Figure 8B. Packinghouse Layout for Cemcam Coop (Model B). Packinglines 1 and 2 have manual crate dump (A), brush washer (B), dryer (C), manual sorting on roller conveyor (D), 2 packing tables (E, F), gravity fed roller conveyer (G), and palletization in the packhouse (H). Packingline 3 has a mechanized or automated sizer. Pack area 4 is for small volumes of product.


13

Figure 9A. Site map for Cemcam Coop Packing and Cooling Facility for Tomatoes and Peppers only (Model C).

Figure 9B. Packinghouse Layout for Cemcam Coop for Tomatoes and Peppers (Model C).

Packingline 1 has manual crate dump (A), brush washer (B), dryer (C), manual sorting on roller conveyor (D), 2 packing tables (E, F), gravity fed roller conveyer (G), and palletization in the packinghouse (H). Packingline 2 has a mechanized bin dump and a mechanized or automated sizer.


14

III. Packinghouse Narrative

A packinghouse is one component of a postharvest handling system. The following describes important considerations for the harvest, grading, packing and cooling of fresh fruit and vegetable products to ensure good pack-out quality and good market arrivals. For all fresh produce, variety selection, climatic conditions, and growing practices will greatly affect the quality at harvest. Successful marketing of fresh fruits and vegetables depends on maintaining the quality harvested. Fresh products are alive and respire (e.g. enzymatically converting sugars and acids in the presence of oxygen to carbon dioxide and heat). Careful postharvest handling aims to reduce the rate of respiration and the rate of other processes that cause deterioration and quality loss (water loss, many biochemical changes, softening, etc). Careful, clean, and efficient handling is more important than the sophistication of the postharvest equipment used. Harvest ought to occur at the optimum maturity for best eating quality. Immature products have higher postharvest water loss and shrivel during marketing. Harvesting fruits such as apples, tomatoes, and melons too soon results in non-uniform ripening and poor flavor. Harvesting products that are over mature may cause toughness (asparagus, beans), rapid yellowing (cucumbers), undesirable starchiness (sweet corn) or other undesirable flavors (bitterness in lettuce), or short shelf-life (apples, peppers). Harvesting fruit vegetables too ripe (tomatoes) makes physical injury more likely and reduces shelf-life. Harvest ought to occur during the coolest part of the day. The product is coolest at sunrise, and harvesting when it is cool minimizes deterioration and water loss. It is easier and cheaper to keep a product cool then to cool a product that has heated up. To minimize the spread of disease, harvest should begin once the foliage has dried. Use clean harvest containers, cutting equipment and gloves. Keep harvested products out of the sun (use an empty container, shade cloth, or other protection) to avoid direct sun injury and unnecessary heating of the product. One must harvest and handle gently. Injured areas on products lead to increased postharvest decay and water loss. Significant quality losses occur because of cuts, punctures, abrasions, crushing, and bruising. In some cases, products may appear undamaged, but may be bruised internally (melons, apples). Reduce physical damage by reducing the number of steps in which the product is directly handled. The ideal situation is to harvest and directly pack the product into the container in which the product will be marketed (strawberries is the classic example). For most crops, harvest into the shipping container is not feasible, but at least the number of steps in which the product is handled should be minimized. Preparation for market often involves cleaning, trimming, washing, and grading. This should be done in a protected or shaded area, whether it is a permanent, temporary, or mobile packinghouse. The packing facility should be located as close to the production area as possible. Field and packinghouse roads should be well maintained to minimize physical injuries to the product transported in the harvest containers. The packinghouse should be raised above ground level to facilitate drainage of water and to allow for raised receiving and shipping docks. The packinghouse should be designed to facilitate product movement in one direction. Culls and plant debris should be removed periodically for good sanitation. A straight through packingline is the most efficient and avoids cross-traffic between packingline workers and fork lifts. It also helps ensure that clean product does not come in contact with less clean product. Adequate lighting is essential for worker safety but also for efficient sorting and defect removal. Lights should be placed over conveyors so that there are about 500 to 1000 lux at the work surface. Packing materials should be easily accessible to the packers. Water should be clean (potable) and if reused, a sanitizer should be added to prevent pathogen buildup and contamination. The less brushing, washing, and physical handling needed, the


15

better. Cleaning may remove the surface waxes; waxing may then be needed to replace the product’s own natural protection. Typically the sorting is done on roller bar conveyors which are commonly white, but gray and other dark colors are increasingly being used as they improve the ability to distinguish defects and reduce eyestrain. Sizing may be done manually, but simple equipment using diverging bar rollers or belt sizers may be useful; automated color and size sorting equipment is increasingly being used. Again, the less handling the better; avoid unnecessary drops, finger damage, abrasions, etc. Pad and cushion hard surfaces. Keep all parts (conveyors, tables) of the packing line smooth-surfaced and clean (wash frequently to remove sand, dirt). For food safety considerations, cleanliness of the product, packingline, and employees are all important. Ensure that clean toilet facilities with water and soap for hand washing are always available for all workers. The schematics in Figure 10 show some aspects of a possible manual packing operation. Pack carefully: do not overpack or underpack. Packing too tightly causes compression bruises; packing too loosely causes vibration and abrasion injuries. Keep containers clean. If packing in reusable plastic containers (RPCs), wash and sanitize (often with a dilute chlorine or bleach solution) the container to remove decay-causing organisms and sand and dirt that can injure the product. If using fiberboard cartons, remember that most of the stacking strength is at the corners of carton boxes; therefore, stack and align cartons properly. Containers need vents (about 5% of the surface area) for air flow and cooling. Use thin perforated plastic liners in carton boxes to reduce shrivel on products highly susceptible to water loss (delicate leafy greens, summer squash). Paper pads on the bottom and top of plastic-lined boxes will absorb excess moisture and reduce decay. Although sealed plastic bags also reduce water loss, they are risky since if the product is not kept continually cold, depletion of oxygen and development of off-odors can occur. If plastic bags or liners are used, it is best to cool the product before packaging. Cool the product as soon as possible after harvest. Temperature is the most important factor determining deterioration rate. Decreasing the temperature reduces the product’s metabolism (respiration and ethylene production), water loss, and the growth of decay-causing fungi and bacteria. Mechanical refrigeration is the basis for most cooling methods. Room cooling (placing products in a refrigerated room) is a relatively low cost, but also a slow method. The cold air needs to circulate around the product to remove heat, so leave space between boxes and between pallets. Forced-air cooling pulls the cold air through the containers and greatly increases the rate of cooling. A cold room can be modified with portable and fixed forced-air handlers to increase cooling rates. Hydrocooling (by submersion or spraying cold water) products that tolerate wetting provide fast cooling and avoid water loss. However, it takes much longer to hydrocool packed product, and special shipping containers are required (wood or waxed boxes). Sanitation of the hydrocooling water (usually by chlorination) is critical to prevent contamination. Some products tolerate contact with ice; crushed or flaked ice can be applied directly or as water slurry. Tables 1 to 6 describe different handling options for a range of vegetables for fresh market. For any given vegetable for the fresh market, there may be many handling variations which can provide equally good final product quality. The flow charts for different vegetables describe the typical operations necessary for product preparation and include steps for field packing and preparation in a packinghouse. Although water for washing and cooling can be useful, it is now considered problematic because of microbiological sanitation issues and its use should be minimized. If product is harvested and handled carefully, it should not need to be washed. Forced air cooling is preferable over other cooling methods using water or ice. Table 7 and Table 8 deal with tomato ripeness stages (U.S. six-point scale) and the impact of temperature on the ripening rate of tomatoes. Freshness is a very important quality attribute. Freshness can be maintained by expedited marketing, but can also be achieved by storing for short periods (days) under the proper conditions. The longer the period from harvest to consumption, the greater the need to emphasize good


16

temperature management. If products are stored for long periods (weeks), they need to be kept as close as possible to their ideal storage temperature to minimize quality loss. Once the product has been cooled, use low rates of air circulation to reduce water loss during storage. Many vegetables (broccoli, lettuce, carrots, celery, etc.) require a low storage temperature, as close to 0°C as possible (Table 9). Many other vegetables (basil, cucumbers, eggplants, tomatoes, peppers, melons) are chilling sensitive and need to be stored at intermediate temperatures (Table 9). Most vegetables (except onions and garlic) require high humidity during storage. Ethylene is a natural gas produced by all products. However, leafy and root vegetables produce very little ethylene and are damaged by ethylene (russet spotting, bitterness in carrots, loss of leaves in cabbage, yellowing of leafy greens). Many fruits, including fruit vegetables such as tomatoes and melons, produce high amounts of ethylene during ripening. Avoid storing ethylene-incompatible fruits and vegetables together. Use adequate transport vehicles. Secure (brace) the load to reduce vibration injury; drive slowly; cover the product to prevent exposure to the sun and excessive water loss. For transporting product to market, use an insulated truck if a refrigerated vehicle is not available. Refrigerated trucks have sufficient refrigeration capacity but often lack air flow capacity for cooling; they can only maintain product temperatures, so products should be pre-cooled before transport. Stack containers on pallets away from the truck walls and leave channels so the cold air can flow around the containers. Avoid temperature fluctuations during loading and unloading since moisture condensation will increase decay. Therefore, docks should be enclosed and preferably refrigerated. During display for market, protect the product from high temperatures, high air velocities, and low relative humidity. Where appropriate, mist with clean water. Display products in their containers to reduce handling injury. Ten Important Guidelines for Postharvest Handling of Fresh Fruits and Vegetables

1. Maturity. Harvest the product at the correct stage of maturity for the intended market. 2. Reduce Injuries. Reduce physical handling to a minimum; every time the fresh product is

handled, it is damaged, and many injuries are not easily seen. 3. Protect Product. Protect the harvested product from the sun; bring it rapidly from the

field/exposed area to the packing station and keep out of the direct sun. Transport carefully. 4. Cleanliness & Sanitation. Keep the packing line as simple as possible, and keep it clean. If

water is used, use clean water or a sanitizer if the water is reused. Maintain strict worker hygiene.

5. Pack Carefully. Sort, classify, and pack the product carefully to achieve uniformity and to

prevent damage (compression, scrapes, etc.) which causes decay and inferior quality; use an adequate box or container. Packaging can also be informative.

6. Palletize. Insure that the boxes are perfectly aligned on the pallet, and that the pallet is

strapped. 7. Cool. Cool the product as soon as possible after harvest; generally for every hour of delay

from harvest to cooling, one day of shelf-life is lost. Lowering product temperature is the most important way to reduce deterioration.

8. Know Product. Know the expectations of the market (size, ripeness, etc.) and the product

handling requirements (temperature, RH, shelf-life, etc.) to ensure good arrivals.


17

9. Coordination. Always try to coordinate the postharvest handling so that it is efficient and rapid. Good postharvest handling maintains the quality of a product, but it cannot improve it.

10. Training. Train and compensate well the workers involved in critical postharvest handling

steps; make sure that workers have the necessary tools to facilitate their work.


18

Table 1. Postharvest handling operations for root and tuber vegetables. Prepare for harvest (undercut, roll; remove tops)

⇓ Harvest (Mechanical or manual)

⇓ Load into field bins, trailers

⇓ Transport to packinghouse

⇓ For immediate marketing

⇓ Bins into storage

⇓ Unload (water flume, dry dump) Unload from storage

⇒ ⇒ ⇒ Wash ⇐ ⇐ ⇐ ⇓

Sort and grade ⇓

Size ⇓

Hydrocool option (carrots, small radish) ⇓

Pack (consumer packages/shipping containers) ⇓

Temporary cold storage ⇓

Load into transport vehicles

Table 2. Postharvest handling options for onions and related vegetables.

Prepare plant for harvest (roll tops, undercut) ⇓

Harvest (manual or mechanical) Clip roots and tops

⇓ FIELD PACKING PACKINGHOUSE

⇓ ⇓ ⇓ Field cure Field cure in windrow Load into bins

(in sacks/bins) ⇓ ⇓ ⇓

Sort and grade on Load into trailers/trucks Cure mobile packing unit

⇓ ⇓ ⇓ Pack (bag or boxes) Transport to packing house Store Load onto trailers ⇒ ⇒ Dry dump ⇐ ⇐

⇓ ⇓ Temporary storage/curing Sort and grade, size

at shaded or covered storage ⇓ Pack (bags or boxes)

⇓ ⇓ Temporary storage area with fans, high air flow

⇓ Transport to market


19

Table 3. Postharvest handling operations for leafy vegetables, lettuce, and green onions. Harvest (manual)

FIELD PACKING PACKINGHOUSE HANDLING ⇓ ⇓

Cut, trim, sort, and size manually Load into bulk bins or trailers ⇓ ⇓

Mobile packing platform Transport to packinghouse ⇓ ⇓

Wrap individual units Unload ⇓ ⇓

Pack into shipping containers Trim (manual or mechanically) ⇓ ⇓

Palletize Wash (green onions) ⇓ ⇓

Transport to Cooling facility Sort and grade ⇓ ⇓ Pack and palletize

Cool (vacuum, forced-air, hydrocool) ⇓

Temporary Cold Storage ⇓

Load refrigerated vehicle ⇓

Top-ice (common for some products, but not advised) ⇓

Transport to market

Table 4. Postharvest handling operations for vegetables such as broccoli and cauliflower.

Harvest (by hand) FIELD PACKING PACKINGHOUSE HANDLING

Cut, trim and size manually Load into bulk bins or trailers Workers on mobile packing unit ⇓

Transport to packinghouse ⇓ ⇓

Wash cauliflower with chlorinated water (optional) Unload (mechanically or manually) ⇓

⇓ Trim leaves Wrap head (cauliflower) ⇓ Tie or band (broccoli) Wash cauliflower (optional)

⇓ ⇓ Pack by count (waxed/wood boxes if hydrocool/ice) Tie or band (broccoli); Wrap head (cauliflower)

⇓ ⇓ Palletize cartons Size manually

⇓ ⇓ Transport to cooler Pack by count and palletize

⇓ ⇓ Cool (broccoli liquid-ice; cauliflower forced air )

⇓ Temporary cold storage

⇓ Load into refrigerated transit vehicles

⇓ Transport to markets


20

Table 5. Postharvest handling operations for fruit vegetables such as summer squash, eggplant, cucumbers, and peppers.

Hand harvest, eliminating defective fruit that cannot be packed

Place fruit into clean plastic trays, totes or buckets ⇓

Field-Packed Packinghouse ⇓ ⇓

Stack totes on trailer for transport to packing area ⇓

Fruit often not cleaned; Can be immersed in clean water, spray-wash or wiped

with a moist clean cloth De-stack trays and spray-wash or immerse in clean water ⇓ ⇓

Select and Classify by size, maturity and defects Apply protective wax or vegetable oil by spray application or wiping fruit (optional)

⇓ ⇓ Pack by weight or count into shipping containers Select and Classify by size, maturity and defects

⇓ ⇓ Palletize and transport to Cooler Pack by weight or count into shipping containers

⇓ ⇓ Cool to 7-13ºC (45-55°F) Cool to 7-13ºC (45-55°F)

⇓ ⇓ Transport to distribution center

(7-13ºC = 45-55°F) Transport to distribution center

(7-13ºC = 45-55°F)

Table 6. Postharvest handling system for vine-ripe tomatoes.

Hand harvest, eliminating defective fruit that cannot be packed ⇓

Place fruit into clean vented plastic trays or totes; Stack trays for transport to packing area or packinghouse

⇓ De-stack trays and wash tomatoes if necessary;

Submerge briefly into single-use clean water and/or chlorinated water Or shower wash or use a moist clean cloth to remove dust

⇓ If washed, force-air dry fruit before further handling

⇓ Manual or mechanized classification for color and/or size

⇓ Packer selects fruit & further classifies (by size or color stage)

⇓ Place fruit into shipping container (single or double layer carton box; paper or foam pad between layers)

⇓ Open containers move by gravity conveyer and are palletized after inspection for final quality and closing of carton;

⇓ Pallets are strapped vertically to reduce vibration injury during transport

⇓ Palletized fruit are cooled to 10-13ºC as soon as possible (room cooling or forced-air cooling) and transported at that

temperature


21

Table 7. Maturity and ripeness stages of fresh market tomatoes. Green. The tomato surface is completely green. The shade of green may vary from light to dark. Breakers. There is a definite break of color from green to bruised fruit. Tannish-yellow, pink or red or 10% or less of the tomato surface.

Turning. Tannish-yellow, pink or red color shows on over 10% but not more than 30% of the tomato surface. Pink. Pink or red color shows on over 30%, but not more thank 90% of the tomato surface. Light Red. Pinkish-red or red color shows on over 60% but, red color covers not more than 90% of the tomato surface. Red. Red means that more than 90% of the tomato surface, in aggregate, is red. http://www.tomato.org http://www.foridatomatoes.org

Table 8. Effect of temperature on the average ripening rate of mature-green, breaker, turning and pink tomatoes of conventional varieties. Greenhouse varieties with ripening mutant genetics will likely require longer to complete ripening.

Days to table-ripe stage at indicated temperature

°C 12.5 15 17.5 20 22.5 25 Ripeness stage

Breaker (10% color) 16 13 10 8 6 5 Turning (10-30% color) 13 10 8 6 4 3 Pink (30-80% color) 10 8 6 4 3 2

Table 9. Recommended Storage And Transit Conditions For Vegetables.

Product

Storage Temp.

oC

Freezing Point oC

Relative Humidity

%

Maximum Shelf-life days

Capacity to Produce Ethylene1

Sensitivity

to Ethylene2

Harvest Quality

Artichoke, globe 0 -1.2 90-95 10-16 VL L Size, tender bracts

Asparagus 2.5 -0.6 90-95 14-21 VL M Bracts at tip closed; size

Basil 12.5 -0.5 95 7-14 VL M Fresh, tender leaves


22

Beans, snap or green

7.5 -0.7 90-95 10-14 L M Crisp pods, small seeds

Beets, with leaves

0 -0.4 90-95 10-14 VL L Firm roots; fresh leaves

Beets, roots 0 -0.9 95-100 90-150 VL L Firm, root typical color

Belgian endive 0 -- 95-100 14-28 VL L Firm head, buds not open

Broccoli 0 -0.6 90-95 10-14 VL H Crisp, firm, compact head

Brussels sprouts 0 -0.8 90-95 21-35 VL H Buds firm, bright green

Cabbage, Chinese

0 -0.9 95-100 30-60 VL H Firm heads, fresh leaves

Cabbage, green, red

0 -0.9 95-100 90-180 VL H Firm heads, fresh leaves

Carrots, topped 0 -1.4 95-100 28-180 VL H Tender, crisp, sweet roots

Cauliflower 0 -0.8 90-95 20-30 VL H Compact, white curds

Celeriac 0 -0.9 95-100 180-240 VL L Firm defect-free root

Celery 0 -0.5 90-95 14-28 VL M Crisp, tender petioles

Chard 0 -0.1 95-100 10-14 VL H Fresh, tender leaves

Collards and kale

0 -0.8 90-95 10-14 VL M Fresh, tender leaves

Corn, sweet 0 -0.6 90-95 4-6 VL L Tender sweet kernels

Cucumbers 10 -0.5 90-95 10-14 L H Crisp, green, firm, size

Eggplant 10 -0.8 90-95 10-14 M L Seeds small, shiny, firm

Endive, Escarole 0 -0.1 95-100 14-21 VL M Fresh crisp, tender leaves

Garlic 0 -0.8 65-70 140-210 VL L Well cured skins & neck

Herbs, culinary 0 -0.2 95-100 10-14 VL H Fresh crisp, tender leaves

Kohlrabi 0 -1.0 95-100 25-30 VL L Firm, green, size

Leeks 0 -0.7 95-100 60-90 VL M Size, firm, green leaves

Lettuce, head, romaine

0 -0.2 95-100 14-21 VL H Firm, crisp, tender leaves


23

Melon, cantaloupe

2.5 -1.2 90-95 10-21 H M Stem ‘slips’; color; sugar

Melon, honeydew

7.5 -1.0 85-90 21-28 M H Waxy, white peel; heavy

Mushrooms 0 -0.9 90-95 12-17 VL M Fresh, white, firm

Okra 10 -1.8 90-95 7-14 L M small, bright green

Onions, dry 0 -0.8 65-75 30-180 VL L Firm bulbs, tight necks

Onions, green 0 -0.9 95-100 7-10 VL M Size, bright green shoots

Parsley 0 -1.1 95-100 30-60 VL H Fresh crisp, tender leaves

Parsnips 0 -0.9 95-100 120-150 VL H Size, firm roots

Peas 0 -0.6 90-95 7-10 VL M Tender seeds; green pods

Peppers, bell 7.5 -0.7 90-95 12-18 L L Firm, shiny appearance

Peppers, chili 7.5 -0.7 90-95 14-21 L L Firm, shiny appearance

Potatoes, early crop

10 -0.8 90-95 10-14 VL L Size, defect-free tubers

Potatoes, late crop

7.5 -0.8 90-95 56-175 VL M Size, defect-free tubers

Potatoes, for seed

5 -0.8 90-95 84-175 VL M Firm, mature

Pumpkins 12.5 -0.8 70-75 84-160 M L Hard rind, color, heavy

Radishes, no tops

0 -0.7 95-100 21-28 L L Firm, crisp, green leaves

Rhubarb 0 -0.9 95-100 14-21 VL L Stalks crisp, red color

Rutabagas 0 -1.1 95-100 60-120 VL L Roots firm and smooth

Spinach 0 -0.3 95-100 10-14 VL H Fresh crisp, tender leaves

Product

Storage Temp.

oC

Freezing Point oC

Relative Humidity

%

Maximum Shelf-life days

Capacity to Produce Ethylene1

Sensitivity

to Ethylene2

Harvest Quality

Squash, summer 10 -0.5 90-95 7-14 L M Firm, shiny, right size

Squash, winter 12.5 -0.8 70-75 84-150 L M Hard rind, corked stem

Sweetpotatoes 12.5 -1.3 85-90 90-180 VL L Firm, defect-free roots

Tomatoes, mature-green

12.5 -- 90-95 21-28 L H Firm, jelly present, color


24

Tomatoes, ripening

12.5 -0.5 90-95 7-14 M H Firm, uniform coloration

Turnip roots 0 -0.5 95-100 60-120 VL L Firm heavy roots

Turnip greens 0 -1.0 95-100 10-14 VL H Fresh crisp, tender leaves

Watercress 0 -0.3 95-100 4-7 VL H Fresh crisp, tender leaves

Watermelon 10 -0.4 85-90 14-21 L H Crisp, flesh color, heavy

1 C2H4 Production: ML=very low (0.1 µl/kg-h); L=low (0.1-1.0); M=moderate (1-10); H=high (10-100); VH=very High (>100). 2 Sensitivity to detrimental effects of C2H4: H=high; M=moderate; L=low; N=none. Compiled from Kader et al., ‘Postharvest Technology of Horticultural Crops’, UC Davis Publication 3311, 2002; “A Commitment to Excellence in the Shipment of Perishable Commodities”, Sea-Land Service, Inc., Elizabeth, N.J., 1980. 19 p; Tropical Products Transport Handbook, USDA Agric. Hdbk 668, 1987; and Cantwell, unpublished data. Figure 10. Schematic of work area for a packing operation that involves hand sorting and packing. From Thompson et al. Ch. 8 in Kader, A.A. 2002. Postharvest Technology of Horticultural Crops, Univ. California

Div. Agric. Natl. Res. Publication 3311.


25

IV. Financial Summaries Model A—Profit & Loss Statement, US Dollars

Model A—Balance Sheet, US Dollars

2006 2007 2008

Tons Sold 1,408 1,759 2,199

Gross Revenue 349,883 437,354 546,693

Cost of Product 132,451 165,564 206,955Packing Materials 54,319 67,899 84,874Packing Labor 5,837 7,296 9,120

Sub-Total 192,607 240,759 300,948Gross Margin 157,276 196,595 245,744

General & Administrative Expenses 20,975 27,267 35,447

Depreciation 32,500 65,000 65,000Interest 58,938 69,002 54,602

Profit Before Taxes 44,864 35,326 90,695

$1=Lei 12.85

2006 2007 2008

Current Assets

Cash 79,631 73,497 149,192

Fixed Assets

Building 475,000 448,000 421,000Equipment 190,000 152,000 114,000Total Assets 744,631 673,497 684,192

Liabilities

Bank Loan 449,805 343,346 263,346

Retained Earnings 44,864 80,190 170,885Shareholders Contributions 149,961 149,961 149,961USAID Grant 100,000 100,000 100,000Total Liabilities 744,631 673,497 684,192

$1=Lei 12.85


26

Model A—Cash Flow, US Dollars

Model B—Profit & Loss Statement, US Dollars

2006 2007 2008

Sources

Net Profit 44,864 35,326 90,695

Depreciation 32,500 65,000 65,000Bank Loan 449,805USAID 100,000Equity 149,961Total Sources 777,131 100,326 155,695

USESInvestment 665,000Bank Loan 26,459 80,000 80,000

Working Capital 85,671 20,326 75,695Total Uses 777,131 100,326 155,695

$1=Lei 12.85

2006 2007 2008

Tons Sold 2,020 2,525 3,156

Gross Revenue 481,372 601,714 752,143





Profit Before Taxes -335,824 -348,742 -219,344

$1=Lei 12.85


27

Model B—Balance Sheet, US Dollars

Model B—Cash Flow, US Dollars

2006 2007 2008

Current Assets 103,748 -458,560 -815,471Cash 103,748 -458,560 -815,471

Fixed Assets

Building 2,010,000 1,879,333 1,672,667Equipment 380,000 304,000 228,000Total Assets 2,493,748 1,724,773 1,085,196

Liabilities

Bank Loan 2,229,572 1,809,339 1,389,105

Equity

Shareholder Funds 500,000 500,000 500,000Retained Earnings -335,824 -684,565 -903,909

USAID Grant 100,000 100,000 100,000Total Liabilities 2,493,748 1,724,773 1,085,196

$1=Lei 12.85

2006 2007 2008

Sources

Net Profit -335,824 -348,742 -219,344

Depreciation 206,667 206,667 206,667Bank Loan 2,334,630 0 0USAID 100,000 0 0Equity 500,000 0 0Total Sources 2,805,474 -142,075 -12,677

USESInvestment 2,390,000 0 0Bank Loan 105,058 420,233 420,233

Working Capital 310,415 -562,309 -432,911Total Uses 2,805,474 -142,075 -12,677

$1=Lei 12.85


28

Model C—Profit & Loss Statement, US Dollars

Model C—Balance Sheet, US Dollars

2006 2007 2008

Tons Sold 1,110 1,388 1,734

Gross Revenue 259,582 324,477 405,596





Profit Before Taxes -142,827 -144,168 -77,722

$1=Lei 12.85

2006 2007 2008

Current Assets

Cash 286,745 14,677 -140,944

Fixed Assets

Building 650,000 610,000 520,000Equipment 250,000 200,000 150,000Total Assets 1,186,745 824,677 529,056

Liabilities

Bank Loan 1,035,019 817,121 599,222

Equity

Shareholder Funds 194,553 194,553 194,553Retained Earnings -142,827 -286,996 -364,718

USAID Grant 100,000 100,000 100,000Total Liabilities 1,186,745 824,677 529,056

$1=Lei 12.85


29

Model C—Cash Flow

V. Turnkey Implementation Plan

A private investor approaching this project should proceed in the following manner.

1. The first step would be to conduct a thorough marketing/production study. The marketing study should be conducted both domestically and in nearby international markets. The purpose of this would be to determine the demand for all of the candidate products, the rhythms of the demand during the year, the preferred packaging methods, and the expected selling prices CIF marketplace. The prices should be by variety, by size, and by quality level. The production study would be designed to verify the cost of producing each of the candidate products delivered to the packing plant. The packing and packaging costs would also be determined, as well as the cost of delivering the product to the marketplace, if the products are not sold at the plant.

2. The next step would be to determine the appropriate site to locate the packinghouse.

This will be determined primarily by access to large volumes of product (the economics of a packinghouse are driven primarily by volumes), but also should examine the quality of the land and availability of water in the area, access to transportation (both road and rail), and access to the required number of employees.

3. The third step would be to execute a very good feasibility study/business plan. This will

involve making the critical assumptions on the products to be handled and the volumes of each, executing a very good packinghouse design based upon the volume assumptions, and then developing a financial model which will include the assumptions on general and administrative expenses, as well as a certain capital structure and the related costs.

4. The last steps would be to secure the necessary financing, secure the site, tender the

engineering/construction bids, and go to work.

2006 2007 2008

Sources

Net Profit -142,827 -144,168 -77,722

Depreciation 90,000 90,000 90,000Bank Loan 1,089,494 0 0USAID 100,000 0 0Equity 194,553 0 0Total Sources 1,331,219 -54,168 12,278

0 0 0USES 0 0 0Investment 900,000 0 0Bank Loan 54,475 217,899 217,899

Working Capital 376,745 -272,067 -205,621Total Uses 1,331,219 -54,168 12,278

$1=Lei 12.85


30

VI. Marketing Opportunities The marketing opportunities for Moldova can be divided into four basic categories:

Domestic Market

The domestic market for vegetables is characterized by poor product quality (except for some of the imported product), poor packaging, a lack of product diversity, nearly a total absence of value-added product, and unreasonably high percentages of imported product. For instance, imported products represent over 19% of the total availability of carrots, and over 23% of the onion availability. In addition, the supermarket buyers that we interviewed said that they would like to buy significantly more product from domestic suppliers. However, they were unable to source the volumes and quality that they needed, and the packaging was consistently inadequate. This all represents opportunities for the Moldovan vegetable growers. Export Market Moldova has good access to nearby export markets, such as Romania, Ukraine, Belarus, and Russia. The transportation systems are good, and the reputation of Moldova as an agricultural supplier (primarily in fruits, however) is very good. We met several growers who were shipping into these markets, and there seems to be no reason why this effort cannot be expanded significantly. However, it will require an investment in superior packing facilities and an upgrading of packing and packaging practices, particularly as some of these markets begin to demand EU sanitary and quality standards. Product Diversity The vegetables produced locally are confined to a very limited range of products. Other than the storage crops (potatoes, carrots, cabbage, onions, beets, etc.), just three products — tomatoes, cucumbers, and bell peppers — represent over 95% of the high value vegetables produced. This means that there are significant opportunities to expand into additional high value vegetables, both for domestic consumption and export, as addressed in the “Postharvest Opportunities“ section. Value-Added Vegetables Given the competitive wage rates in Moldova, there is a very real opportunity to explore adding value to fresh vegetables, particularly for the food service arena. Turning the large quantities of cabbage available into prepared coleslaw for hotels and restaurants, both in Moldova and Romania, is an example of this. This is also addressed in the “Postharvest Opportunities“ section.

VII. Financing Opportunities

Overview Of Moldova’s Financial Sector

Presently, Moldova’s banking system comprises approximately 15 commercial banks and three leasing companies. In terms of total assets ($1.3 billion) and total loans ($758 million), the commercial banks have limited capacity to meet the current and growing demands for credit. A few ratios confirm that the commercial banking sector is operating at full capacity. These ratios, as of November 30, 2005 are loans to total deposits (78%), loans to deposits from individuals (146%) and liquid assets to total assets (34%) and, lastly, shareholder funds plus retained earnings to total assets (24%). The banking sector cannot meet the demand placed on them by the growing commercial and consumer sectors of the Moldovan economy.


31

The liability structure, particularly of the industry’s deposits, poses a major constraint in terms of providing appropriate loans structures for capital investments that require longer payback periods. The deposits from the commercial and private sector remain very short, usually taking of the form of demand deposits. As such, the banks are obligated to maintain higher than normal levels of liquidity in order to meet uncertain deposit withdrawal levels. Therefore, extending loans with tenors beyond one year becomes problematic under current circumstances. This feature can be prudently changed only when the commercial banks can access deposits or other funding sources that extend out over longer time periods. Ideally, the development of such sources will consist of time deposits (one to five years) and bond issuance (five to ten year maturities). Thus far, these developments have not occurred. On the positive side, depositors are freely allowed to have accounts in various currencies, usually Lei, USD, and Euro. In fact, Moldova Agroindbank (MAIB) indicated that the split between Lei and foreign Currency is approximately 50/50. This allows the bank to extend foreign currencies loans without extensive hedging of FX risk. The appropriate borrowers with foreign currency cash flow, particularly from exports, this allows lower interest levels, Euro/USD lending rates at 11-12% vs. MDL rates at 18-22%. During our visit with the largest commercial bank, Moldova Agroindbank (MAIB) it was confirmed that Moldova’s experience with bonds is limited. There has been only one bond issued and that was by the Ministry of Finance on behalf of the Government of Moldova ($75 million). The bond was redeemed prematurely at a discount much to the dissatisfaction of the country. With such an experience, there are reservations concerning the creation of a domestic bond market, but this should be encouraged nonetheless. Moreover, since the economy is partially “dollarized,” there exists the possibility for the largest and most successful banks to access the capital market in Europe and/or the United States. Of course, such funding sources would be more expensive but value brought in the commercial banking sector in terms of stability of a longer dated liability structure should help provide appropriate lending structures for capital investment in the private sector. The leasing activities are relatively recent. MAIB founded the first leasing company three years ago. Presently, there are three leasing companies in operation. This is not surprising when one examines MAIB results in 2004 showing a growth in leasing activities of 57% after a previous year growth of 38%. We were not able to learn about the financial results on these activities (ROA, ROI, or Net Profit) but MAIB indicated that they are very satisfied. Presently, the leasing activities (operating and finance leases) are directed at the consumer and commercial sectors with autos, buildings, land, and commercial equipment representing the lease assets. In the team’s opinion, the medium term leasing activities in Moldova could be extended to the agricultural sector. Specifically, trucks, tractors, forklifts, and packing line equipment are all farm and agricultural processing equipment that could qualify. In light of the aforementioned factors, we found the terms and conditions required to qualify for loans from the commercial banking sector are predictably onerous and for the most part uniformly applied. This is even more so for the perceived higher risk agricultural sector, and these perceptions amplify when looking at the perishable food sector such of fresh vegetables. CNFA’s Agribusiness Credit Specialist, Valeria Ciobanu, has compiled a comprehensive comparison of these terms and conditions with the salient points being:


32

1. The maximum loan size is set by banking regulations at 10% of capital but lending into the risks associated with vegetable growing and/or processing will be done at much smaller amounts depending on the financial capacity of the borrower.

2. Grace periods are granted up to six months and occasionally up to 12 months (usually

only three months) but maximum term or tenor is very short. Depending on the project, we found this to be from 1.5 years to five years in exceptional cases. During our visit with MAIB (the largest bank with 21% of banking assets and 25% of total loans) we learned that the maturity structure of banking deposits are usually demand, i.e., very short term and uncertain. These conditions require a very conservative approach to lending for periods beyond one year. On the positive side, depositors are freely allowed to have accounts in various currencies, usually Lei, USD, and Euro. In fact, MAIB indicated that the split between Lei and foreign currency is approximately 50/50. This allows the bank to extend foreign currencies loans without extensive hedging of FX risk thereby they can be accommodative to projects that have cash flow is USD or EURO.

3. Repayment periods of principal are flexible, i.e., monthly, quarterly, semi-annually, but

interest payment periods seem to be uniformly set up at monthly intervals. Likewise, interest rates do not vary much between leading institutions where we found rates of loans in Lei set in a range of 18% to 22% with the agricultural sector at the high end of the range. In USD, the rates are lower but still reflect the imbalance between demand and supply. Generally, USD lending rates are approximately 12%.

4. While additional fees are uniform, but high by most standards and cover registrations,

notary and mortgage closure, it is common practice to charge a lending commission taken from the proceeds of the first usage that can be as high as 2.5% of the total loan amount. This pushes borrowing costs up significantly.

5. Lastly, it is uniform practice to require a high level of security in the form of real estate,

plant, equipment, machinery, cash and/or state valued paper (securities) valued at 130% of the loan amount. An exception to this requirement seems to be in cases where USAID’s Loan Portfolio Guaranteed program is used to support a particular loan (determined solely by the lending bank). In these cases, the security to loan amount ratio will be 100% which is still onerous.

Other Financing Opportunities

USAID’s Development Credit Authority LPG program has been very effective in Moldova in reducing the onerous security requirements imposed by Moldovan banks. It is gratifying to note the LPG program has now been extended to seven Moldovan institutions and should increase competitive lending practices to some extent especially for new borrowers. At the same time, the cost of entry into a borrowing relationship with any particular bank is so high that the likelihood of moving such a relationship is remote. The expansion of DCA program to include loan guarantees, portable guarantees and bond guarantees should be considered at this stage in Moldova’s development. EBRD’s activities have been welcomed and tried (MAIB is a case in point) but the results could not be meaningfully measured. This source of support for development should be continued. The Rural Investment and Services Project (RISP) has been extended to the Ministry of Finance, and we note that MAIB is acting as an intermediary in financing rural sector enterprises. This


33

program allows up to 36-month grace period and has the potential for significant impact is the development of the fresh vegetable sector.

VIII. Refrigeration/Construction Observations and Working Assumptions

1. Most facilities we visited were small due to privatization that occurred since 1992. It is

only recently that the size of the farms has started to increase in size again due to consolidation.

2. Most new facilities use packaged freon refrigeration due to the small size of the facilities.

Central refrigeration systems are not practical for small systems. 3. Most older, existing facilities are much larger and, therefore, use a central NH3

refrigeration system. Central NH3 systems when used properly will be less expensive to operate and more efficient.

4. Most of the facilities visited used expanded polystyrene (beadboard) insulation. This type

of insulation is less efficient than some of the newer insulations. 5. Some newer installations are using polyurethane sandwich panels which are more

efficient, but a little more expensive. 6. Most of the buildings visited used a minimum insulation thickness. This will result in a

higher operating cost for the facility. 7. Some of the businesses have very aggressive expansion plans. This was viewed as a

positive step. 8. Almost all of the facilities we visited would benefit from an upgrade in sanitation practices. 9. Most facilities do not have door and wall protection. It is recommended that bollards and

goalposts be used to protect the insulated doors and wall panels. 10. Because of the low cost of labor, not much money is invested in automation. The team

recommends that automation be introduced gradually into projects. 11. For the economy to continue to improve, larger and more efficient facilities will need to be

considered. 12. Consolidation of producers (growers) is needed to raise the efficiency of the facilities.

Also, if marketing is consolidated, it will reduce costs. 13. The team strongly recommends that a consultant familiar with the refrigeration/project

equipment and construction details attend the pre-bid meeting to convey the scope of work. He should also be available to answer questions during the bid phase and evaluate the bids.

14. A seminar covering maintenance of the facility and equipment should be made available

to local personnel.


34

15. The feasibility estimate was based on calculations for the number and quantity of products to be processed and stored in the facilities, plus the length of storage needed during peak months. From this information the footprints were developed for the number of bins or pallets stored, resulting in the space needed for receiving, processing, storing, and shipping of product.

16. Since the team was in the very early feasibility stage of the models, some allowances

were used along with estimates based on collaboration with local designers, CNFA staff and, the team’s past experience. The designers had been used by CNFA on previous projects.

17. Typical estimates in the feasibility phase of a vegetable cold store facility are in the range

of $80-$100 USD/ square foot for refrigerated spaces including building, site utilities, normal building utilities (non-process), refrigeration, electrical, and design. Normal feasibility studies for non-refrigerated spaces are in the range of $50 USD/square foot.

18. For Models A, B, and C the number, size, and capacity of each condenser and

evaporator are a part of the detailed design to be completed in the next step. We have assumed the use of decentralized refrigeration systems with at least two evaporator/condenser systems in each room (where practical) for both flexibility of design and defrost.

19. The thickness of the insulation panels will be a function of the final insulation panel

material selection, and the cost for the panels is included in the overall refrigerated building costs with consideration given for the dollars/square foot information given from MGM.

20. The assumptions for all of the projects are based on adequate electric power availability

and adequate water quantity, quality, and pressure. For Model A, the assumption that the first floor over the basement area will support the cold store and precool rooms will need to be further reviewed by a structural engineer (as we stated earlier). Models B & C also assume that adequate sewage capacity is available. All of the feasibility estimates take into account expandability and flexibility and were completed with the amount of information that was available to us during our time in Moldova.

IX. Postharvest Observations The following comments are based on fruit and vegetable products seen in cold storage rooms at Safranax and Avis-Nord, on imported and Moldovan products at the wholesale market, and on the quality of fruits and vegetables at Supermarket No. 1, Greenhills, and Metro Cash&Carry. At the time of our visits, there were limited quantities of vegetables in storage. Storage rooms and bins containing fresh products need to be cleaner. At one operation, workers were sorting small apples stored in slatted bins which were going for processing and larger apples for the fresh market. The sorting conditions were dirty and inefficient. The company could organize a better and cleaner sorting and packing area with a few tables that can be frequently cleaned. Both types of apples were fairly crisp (took samples and held overnight at room temperature before cutting and tasting) but neither type was particularly sweet or very attractive. They would not compete on typical international markets. It appears that the harvested apples are placed in the cold rooms without any presorting. We saw decaying leaves and decaying fruit. This not only leads to contamination of perfectly good product, but the decayed fruits will produce copious


35

amounts of ethylene which can cause quality loss of good apples (mainly softening). Either the apples should be sorted in the field at the time of placing into the 250-300 kg bins, or they should be run through a sorting line upon arrival at the cold storage. This step could reduce the volume of defective product (~20%?) and improve overall storage results. The company could charge for this value-added operation. The apple storage room had overhead sprinklers. The apples were relatively crisp for having been stored for over three months. The apple situation contrasts with what the team observed for the cabbages and onions. The cabbages had considerable leaf decay and yellowing. The leaves were easily detached from the heads which is useful for cleaning and preparation for market, but is also indicative of decay-induced ethylene which likely contributes to loosening of leaves (abscission). Typically in low temperature storage of cabbages, one sees some decay and cut butt darkening, but not yellowing. Yellowing is a clear indication that temperatures were too high in the storage room. The team did not ask for temperature records, but at the recommended temperature of 0-1°C, European type cabbages can typically be stored for three to four months without significant quality loss. The decay appeared to be a complex of fungi and bacteria. Pockets of high humidity and moisture, which favored decay development, could likely be attributed to insufficient air movement. The ideal situation is to have air flow rates that slightly dehydrate the surface because mold spores cannot germinate and proliferate under dryer conditions. This leads to the general recommendation for products such as cabbage: keep it cold and dry. The team observed cabbages being trimmed for market, but the butts were not trimmed as they should have been. The carrots were poor quality, over mature mostly, with plenty of roots that were poorly shaped (i.e., not a smooth surface) indicating production problems. Many of the carrots were dehydrated to a degree from which they cannot recover with freshening in a water bath (more than 5% weight loss). In addition there appeared to be considerable decay from Sclerotinia rot (we would need to plate out the organism and identify it to be absolutely sure), which can be a common decay organism on carrots (Figure 10). Sclerotinia rot is caused by the fungus Sclerotinia sclerotiorum. This fungus occurs in the field and develops on the carrots during storage. The amount of storage decay is an indication of the initial level of infection. The major sign of the disease is the presence of a white cottony fungal growth and small black grains (slerotia). This disease must be controlled in the field, which is typically done by fungicides. Rotation of fields is another strategy as the sclerotia persist for many years in the soil. Excessive nitrogen in the field can aggravate the appearance of the disease, as well as excessively weedy fields. There are no particular postharvest controls since this fungus can grow even at 0°C. For more information on long-term storage of carrots, see the Canadian website http://www.omafra.gov.on.ca/english/engineer/facts/98-073.htm. There were also brown onions in storage, and these presented high levels of sprouting. In another room, workers were sorting through the onions and preparing sacks for market. These onions would be expected to have little shelf-life remaining and would likely sprout within 1-2 weeks at room temperatures. Sprouting in onions is an indication that the dormant period is over. Different varieties have inherently different periods of dormancy, and if current varietal testing does not also include an assessment of storage life, this should be added to the protocols. It is my understanding that all varieties are tested before release to the growers. In addition to the natural differences in dormancy, the storage conditions will also be key to determining the rate of sprout development in storage. Onions should be held near 0°C with moderate humidity (65-70%). If onions are being stored with cabbages and other vegetables, those conditions are not being met. In sorting the onions, the bins were dumped on the floor, and workers hovered over the pile while seated. Some of the simple tables and equipment described in the packinghouse designs could be useful for this type of manual sorting. The stored onions also had considerable development of Botrytis (gray mold) on outer scales. This is not an uncommon problem but can indicate insufficient curing before storing and/or too high humidity during storage.


36

Figure 11. Healthy onions and onions with internal decay or ‘Sour rot’ of onions likely caused by Pseudomonas cepacia. Photo taken at Avis-Nord.

Figure 10. Sclerotinia rot on

stored carrots.

At another company the team observed similar problems with the cabbage, and it was indicated that 2005 was a ‘difficult’ year for some of the stored vegetables. The same comments above apply to the cabbage stored at this company. There were also red cabbages being stored and they were in excellent condition. These had been bought recently, and it would have been useful to identify their source and visit that storage. This company was trying some postharvest innovations such as using plastic liners in the bins to reduce moisture loss on the carrots, and it appeared to be working well. The quality of the carrots was below usual market expectations. They were over mature and not smooth and well shaped. They also had what appeared to be Sclerotinia rot, but they were firmer. Later at the wholesale market, we saw carrots imported from Poland in plastic bags that were sorted and well shaped. The production and harvest conditions for carrots in Moldova need to be evaluated more critically. The red beets at Avis-Nord were being held in plastic lined bins and were of typical quality (meaning they were overmature by most international standards of quality, but were probably acceptable for the local market; smaller beets should command higher prices). This company was also experimenting with higher value vegetables such as leeks and celeriac. The leeks were stored in the large 300 kg bins and although they had considerable decay on outer leaves, they were easily cleaned up. Since the leeks were stored with all leaves intact, but then trimmed for market, some of the excessive leaf material could be trimmed before placing in storage. This would reduce the amount of tissue that decays and would not detrimentally affect the quality of the leeks. Storage in smaller bins or containers might also be helpful to reduce decay development by getting more air flow through the product. Leeks have higher respiration rates than cabbages and need more air movement to reduce the heat of respiration. The celeriac roots were in plastic lined bins (plastic appeared to be a very thick 2 or 3 mm polyethylene) and were beginning to sprout, indicating that there was heat build up due to respiration and/or storage room temperatures were simply not kept low enough (should be near 0°C). Using perforated liners and/or thinner plastic liners would allow more air movement through the product and remove heat without notably affecting weight loss. At this company, there were separate bottom-air-flow bulk storages for onions. Fans periodically turned to move air through the pile. There appeared to be little Botrytis (gray mold) in these onions indicating the efficacy of the air movement conditons, but the onions had considerable internal decay. This was likely due to a bacterial rot called sour rot caused by Pseudomonas (Figure 11).


37

Sour rot has been reported from onion-growing areas all over the world. Losses often appear in stored onions, but infection usually begins in the field. Primary symptoms on onions include a slimy (but initially firm), pale yellow to light brown decay and breakdown of one or a few inner bulb scales. Adjacent scales may remain firm. Externally, bulbs appear sound, but the neck region may soften after leaves have collapsed. Control measures include proper maturing of the crop and quick drying after topping and harvest. Contaminated irrigation water has been implicated in the spread of the disease. Overhead irrigation will enhance the problem, while furrow irrigation will reduce it.

At the wholesale market there were many imported fruits and vegetables, most from Turkey. Some, such as the strawberries, were of excellent quality and would be competitive in any international market. Generally, the imported products were of very good quality (tomatoes, peppers, eggplants, cucumbers, citrus fruits, strawberries). Imported products are sorted for uniformity and packed into carton or wood boxes (lined with paper or cardboard to protect from rough slats). Some products, such as cucumbers, were packed with plastic liners to protect from water loss. The Moldovan products at the market were potatoes, carrots, cabbage, red beets, and a few salad greens (scallions, parsley, and parsley root). In general there was no special preparation of the stored products other than sizing of potatoes and onions. Most of these products are sold in sacks of about 40 kg. Moldovan carrots (bulk in crates) were of lower quality than imported Polish carrots (bulk in plastic bags). The salad greens were of very high quality and had been produced in small, local greenhouses. It would seem there would be more demand for such fresh, leafy vegetables, which would stimulate more production. At the wholesale market, an inspector demonstrated measurement of nitrates in loads of incoming product. Product is grated and a nitrate specific electrode is placed into a mound of juicy tissue. A chart indicates maximum allowable nitrate levels. The quality assessment of nitrates in vegetables is not done in the U.S., and it would be interesting to have more information about the origin and need for this quality analysis. No other quality inspections were being taken by the inspector. At this market, two techniques for short-term storage were observed: Cabbages were stored in straw-lined, unheated trucks while onions were stored in a propane-heated trailer.

At retail markets No. 1 and Greenhills, the displayed products were generally of good quality. Many products are presented on trays and overwrapped with food wrap. There were limited types of products and quantities at the two markets I visited (on Stefan cel Mare street). For example, neither store had apples (neither Moldovan or imported). The amounts and diversity of products at supermarket Fidesco were larger. At Metro (a warehouse type store) products were sold in large units (50 kg sack of potatoes, a whole 6kg box of mandarins). Moldovan product usually had less attractive appearance than imported product. Washing the carrots and potatoes would increase their appearance but, depending on how the washing is done, may reduce their shelf-life. Metro also handled some locally grown parsley, dill, and leeks. They were of poor quality compared to products on the wholesale market, mainly because they were placed on the shelves with no packaging (no plastic wrap) and suffered severe dehydration. The dill had lost at least 10% of its original weight. It appears Metro did not want to spend time preparing this product, representing an opportunity for a supplier to do this value-added preparation.

Opportunities to Improve the Quality of Moldovan Vegetables

The team’s impression of the quality of Moldovan vegetables is perhaps distorted since we only saw the stored products and a few salad greens at the end of January and beginning of February. The salad greens were of excellent quality, but in many cases were not packaged properly and quickly lost quality during marketing. The example of the severely dehydrated, locally grown dill in the Metro market is only one example. Simple packaging (plastic sleeves or bags) would add value and help maintain quality. Presentation is important to consumers everywhere.


38

Presentation involves product quality, but also product packaging. Many of the storage vegetables we saw (onions, cabbage, carrots, red beets) were not attractive. Product was not cleaned/washed, often not sized, and often not packaged attractively. Some of the products were overmature when harvested (carrots and red beets); younger, more tender product would command higher prices. Small improvements in these areas should have significant impact on buyers’ and consumers’ perceptions of locally produced vegetables. There are many opportunities to improve the merchandizing of vegetables. Investments in better packaging materials need to be accompanied by good technical information and training, especially for use of carton boxes. Wooden boxes can be used very successfully if paper or carton liners are used to reduce product rubbing. Wood boxes are strong, but applying labels can be difficult. Carton boxes are widely used internationally, the graphics are more attractive, but their quality must meet product needs. Fiberboard cartons may be made from new paper (has long fibers) or recycled product (shorter fibers). Such differences will affect water absorption and stacking strength on pallets. In addition, the liners and types of corrugations used will determine the box strength. Figures 12 to 16 illustrate some of the variations observed in packaging. The box from Holland was likely made with new paper, while the other two boxes were likely made from recycled paper fiberboard (paper was softer). The corners of the white box were not glued, and to do so would have increased its stacking strength. Considerable information on carton box standards is available from the Fibre Box Association (http://www.fibrebox.org) and on the ISO website (http://www.iso.org). Opportunities to Diversify Moldovan Fresh Market Vegetables

In general, the types of vegetables and fruits available were very limited in quantity, quality, and presentation. The imported vegetables include tomatoes, peppers, cucumbers, and eggplants. The Moldovan stored products included cabbages, onions, carrots, and red beets. There were small volumes of higher value items such as the salad greens. Diversifying the product mix could involve:

1. Adding completely new products to the offering. This is exemplified by the fruit category in which I saw mango, kiwano (did anyone really know what this was??!!), and other exotic products in the Moldovan supermarkets. For these products to be successful there must be aggressive marketing with recipes, tastings, etc. Other approaches should be explored first for the vegetables.

2. Add new types of well known products. In any product category (i.e. tomatoes), increased sales can be achieved by having greater diversity. For example, the offering is not just tomatoes, but includes round tomatoes, round tomatoes at different stages of ripeness, roma (plum) tomatoes, cherry tomatoes, tomatoes on the vine, and grape tomatoes. In the U.S. markets, tomato sales increased substantially once the category was diversified. It appears that Moldovan pepper production is diversified with over five types, but this could be even further diversified. This same concept can by applied to almost any vegetable. In U.S. supermarkets, a common vegetable such as carrots can be found in many presentations: 1, 2 or 5 pound polyethylene bags, as bunched carrots (true baby carrots), and processed, baby-peeled carrots (and these in turn are sold in different presentations). There are also many different types available in carrots (Figure 17). Other examples could be a greater variety of potatoes, both for cooking and chip production (Figure 18), and more types of beets, as well as offering bunched product (leaves and roots) (Figure 19).

3. Adding products that are ‘relatives’ of currently produced vegetables. Considering the ample traditional production of cabbages, onions, red beets, and carrots, it could be interesting to consider related products which would require similar production conditions.


39

In the cabbage family (besides white, red, and napa cabbages) there are cauliflower, broccoli, brussel sprouts, kohlrabi, bok choy, turnips, etc. In the onion family, there are shallots, leeks, chive, and immature garlic. Carrot relatives include celery, celeriac (already being tried by some growers), parsnips, and fennel. These products may not have an important internal market but would add diversity to the export mix. Both local mushrooms and herbs could be further diversified as these are very high value products (Fig. 20).

4. Organic production of vegetables. This option for increasing the diversity of vegetables produced in Moldova is already being considered. In the U.S., organically produced vegetables have increased, but total volumes are still relatively small (~5% of total production). Opportunities to market organically produced vegetables, in Western Europe may be very interesting.

5. Value-added vegetables, especially fresh-cut products. This category is increasingly

important in the U.S. because it adds convenience to many vegetables. This category as defined by the International Fresh-cut Produce Association (http://www.fresh-cuts.org): “Fresh-cut produce is any fresh fruit or vegetable or any combination thereof that has been physically altered from its original form, but remains in a fresh state. Regardless of commodity, it has been trimmed, peeled, washed and cut into 100% usable product that is subsequently bagged or prepackaged to offer consumers high nutrition, convenience and value while still maintaining freshness”. Examples include cut lettuce salads, trimmed lettuce heads, cut vegetable trays, ‘baby’ carrots, peeled garlic and onions, sliced mushrooms, and shredded cabbage (Figure 21). These products must be produced under strict sanitary conditions (usually inside a cold room) because they are prepared as ‘ready to eat’ products: 1) meticulous cleanliness of equipment, employees, and product ; 2) rigid adherence to refrigerated temperature handling conditions; 3) complete integrity of packages; 4) strict adherence to produce ‘use by’ dates and handling instructions. Although Moldova is not ready for this product category and must first gain expertise in improving quality, presentation and postharvest handling of intact vegetables, some of the infrastructure needed is similar (cold rooms). Although home cooking is treasured in Moldova, it would seem there could be foodservice opportunities for this product category.


40

Figure 12. Local wooden box, carton box for imported products from Turkey (blue box), and carton box from Romania for export of Moldovan vegetables (white box).

Figure 13. Close-up of corrugations of carton box for imported products from Turkey (blue box). Box corners are glued. No carton or box specifications indicated.

Figure 14. Corrugations of the carton box from Romania for export of Moldovan vegetables (white box). Box is folded into place but corners are not glued. No carton or box specifications indicated.

Figure 15. Carton box from Holland for peppers

indicating specifications. Box corners are glued.

Figure 16. Corrugations of the carton box from Holland.


41

Figure 17. Some of the color diversity among carrots. www.ars.usda.gov

Figure 18. Diversity in Potatoes.

There is tremendous di-versity in potatoes for regular cooking as well as chip production.

Figure 19. Diversity in Beets. In recent years, more types of fresh beets have appeared in the markets in the U.S. and have increased interest in this vegetable.

Figure 20. Diversity in Mushrooms.

Mushroom consumption has increased as more types of mushrooms are produced for retail marketing in the U.S. White button Brown button

EnokiOyster

Morel

Porcini

www.miva.com/products


42

Figure 21. Examples of fresh-cut vegetable products. A product such as romaine lettuce hearts has very good shelf-life compare to the cut lettuce products. Fresh peeled garlic (bottom right), pre-trimmed onions, and slices mushrooms and peppers are important in food service operations.


43

X. Acknowledgements

The team would like to extend its deep gratitude to Mark Grubb and the entire staff of CNFA in Moldova. We enjoyed a level of hospitality and cooperation that surpassed our expectations and previous experiences. A special thanks goes to Valentina Plesca, Victor Rosca, Oleg Brinza, Valeria Ciobanu, Carolina Grozav, Jackie Boardman, and Simion Boston, for putting together and then accompanying us on a very comprehensive schedule, which allowed us to accumulate the information necessary to complete the Scope of Work. We also appreciate the comments and assistance provided by Mark Smith, Anatoly Terzi and Viorel Gutu. Finally we thank all those persons and companies contacted for their time and for sharing their experiences with the team. XI. Addenda

A. Financial Exhibits

Gross Margin Sales—Model A Gross Margin Sales—Model B Gross Margin Sales—Model C

B. Supplier Database C. Team Activities D. Contacts

For copies of the report addenda, please contact the World Food Logistics Organization at 703 373 4300 (phone), 703 373 4301 (fax), or [email protected].

Packinghouse Report

Documents

Transcript of Packinghouse Report