SITUATION AND PROSPECTS SITUATION AND PROSPECTS OF THE SZEGED-DOROZSMA OF THE SZEGED-DOROZSMA

WHOLESALE MARKETWHOLESALE MARKET

CEI WMF WORKSHOPCEI WMF WORKSHOP

APRIL 8, 2013 APRIL 8, 2013

BELGRADEBELGRADE

MARKET LOCATIONMARKET LOCATION

NEXT TO THE HIGHWAY WHICH IS PART OF NEXT TO THE HIGHWAY WHICH IS PART OF THE EUROPEAN ROUTE E-75, AND THE THE EUROPEAN ROUTE E-75, AND THE EUROPEAN CORRIDOR VIIEUROPEAN CORRIDOR VII

ON THE HUNGARIAN-SERBIAN-ROMANIAN ON THE HUNGARIAN-SERBIAN-ROMANIAN BORDER, AND CLOSE TO CROATIABORDER, AND CLOSE TO CROATIA

DISTANCES FROM OTHER WHOLESALE DISTANCES FROM OTHER WHOLESALE MARKETS: BUDAPEST 160 KM, BELGRADE MARKETS: BUDAPEST 160 KM, BELGRADE 230 KM, TIMISOARA 120 KM, OSIJEK 180 KM230 KM, TIMISOARA 120 KM, OSIJEK 180 KM

DOROZSMA WM - FEATURESDOROZSMA WM - FEATURES

OWNER: THE MUNICIPALITY OF SZEGEDOWNER: THE MUNICIPALITY OF SZEGED AN ASSEMBLY MARKET, IN THE MIDDLE OF AN ASSEMBLY MARKET, IN THE MIDDLE OF

THE MAIN VEGETABLE GROWING AREATHE MAIN VEGETABLE GROWING AREA THE TYPICAL TRANSACTION: GROWERS THE TYPICAL TRANSACTION: GROWERS

SELLING TO WHOLESALERSSELLING TO WHOLESALERS SHARE OF PRODUCERS IN TOTAL SALES: 85% SHARE OF PRODUCERS IN TOTAL SALES: 85%

(BUDAPEST WM: 40%)(BUDAPEST WM: 40%) ANNUAL SALES VOLUME: 300 THOUSAND TONS ANNUAL SALES VOLUME: 300 THOUSAND TONS

(BUDAPEST WM: 400 THOUSAND TONS)(BUDAPEST WM: 400 THOUSAND TONS) A STRONG SUMMER SEASON (MAY-SEPT), A STRONG SUMMER SEASON (MAY-SEPT),

AND A WEAKER WINTER SEASONAND A WEAKER WINTER SEASON

BUYERS FROM ROMANIABUYERS FROM ROMANIA

VERY IMPORTANT FOR THE MARKET: THEIRVERY IMPORTANT FOR THE MARKET: THEIRSHARE IN TOTAL PURCHASES: 60% IN VOLUME, SHARE IN TOTAL PURCHASES: 60% IN VOLUME, 45% IN VALUE45% IN VALUE

MOST BUYERS DRIVING FROM 100 TO 150 KM MOST BUYERS DRIVING FROM 100 TO 150 KM DISTANCES, BUT A FEW FROM 600 TO 800 KMDISTANCES, BUT A FEW FROM 600 TO 800 KM

THEY ARE PRICE-ORIENTED BUYERSTHEY ARE PRICE-ORIENTED BUYERS

MARKET FACILITIESMARKET FACILITIES

A TRADITIONAL OPEN-AIR MARKET, A TRADITIONAL OPEN-AIR MARKET, WITH FAIRLY SIMPLE FACILITIESWITH FAIRLY SIMPLE FACILITIES

TOTAL AREA: 8,4 HECTARESTOTAL AREA: 8,4 HECTARES

16 STORING UNITS OF 100 TO 200 M2, 16 STORING UNITS OF 100 TO 200 M2, RENTED BY WHOLESALERSRENTED BY WHOLESALERS

ADVANTAGES OFFERED BY ADVANTAGES OFFERED BY DOROZSMA WM FOR BUYERSDOROZSMA WM FOR BUYERS

MODERATE PRICE LEVELMODERATE PRICE LEVEL

BROAD ASSORTMENTBROAD ASSORTMENT

FRESHNESS OF PRODUCEFRESHNESS OF PRODUCE

GOOD QUALITYGOOD QUALITY

COMPARISON OF WM PRICE LEVELSCOMPARISON OF WM PRICE LEVELS

AUGUST 2012; DOROZSMA = 100AUGUST 2012; DOROZSMA = 100

BUDAPEST: FRUITS 133, VEGETABLES 155BUDAPEST: FRUITS 133, VEGETABLES 155

BELGRADE: FRUITS 111, VEGETABLES 162BELGRADE: FRUITS 111, VEGETABLES 162

OSIJEK: FRUITS 174, VEGETABLES 181OSIJEK: FRUITS 174, VEGETABLES 181

PRODUCER BACKGROUNDPRODUCER BACKGROUND

7000 GROWERS SUPPLYING THE MARKET, 7000 GROWERS SUPPLYING THE MARKET, OF WHICH 2500 FROM WITHIN 25 KM DISTANCEOF WHICH 2500 FROM WITHIN 25 KM DISTANCE

MAINLY SMALL PRODUCERS, MAINLY SMALL PRODUCERS, ARRIVING WITH 1 TO 1.5 TONS OF PRODUCEARRIVING WITH 1 TO 1.5 TONS OF PRODUCE

F+V PRODUCTION TRENDS: HUNGARY F+V PRODUCTION TRENDS: HUNGARY DECLINING, DOROZSMA-REGION INCREASINGDECLINING, DOROZSMA-REGION INCREASING

A SELECTION PROCESS: LESS BUT BIGGER AND A SELECTION PROCESS: LESS BUT BIGGER AND STRONGER PRODUCERS; AVERAGE STRONGER PRODUCERS; AVERAGE PRODUCTION PER FARM IN THE REGION:PRODUCTION PER FARM IN THE REGION:2000: 18 TONS FOR VEGS, 5 TONS FOR FRUITS2000: 18 TONS FOR VEGS, 5 TONS FOR FRUITS2011: 54 TONS FOR VEGS, 10 TONS FOR FRUITS2011: 54 TONS FOR VEGS, 10 TONS FOR FRUITS

BREAKDOWN OF SALES IN DOROZSMABREAKDOWN OF SALES IN DOROZSMA

PRODUCERS TO RETAILERS IN THE REGIONPRODUCERS TO RETAILERS IN THE REGION(15% OF TOTAL SALES)(15% OF TOTAL SALES)

PRODUCERS TO DOMESTIC WHOLESALERS (10%)PRODUCERS TO DOMESTIC WHOLESALERS (10%)

PRODUCERS TO WHOLESALERS PRODUCERS TO WHOLESALERS FROM ROMANIA (60%)FROM ROMANIA (60%)

WHOLESALERS TO DOMESTIC WHOLESALERS WHOLESALERS TO DOMESTIC WHOLESALERS AND RETAILERS (TROPICAL FRUITS; 15%)AND RETAILERS (TROPICAL FRUITS; 15%)

OPPORTUNITIES IN INTERNATIONAL OPPORTUNITIES IN INTERNATIONAL TRADE - COMPLEMENTARITYTRADE - COMPLEMENTARITY

SELF-SUFFICIENCY RATIOS, FRUITS AND VEGS:SELF-SUFFICIENCY RATIOS, FRUITS AND VEGS:

HUNGARY HUNGARY 150%150%

SERBIA SERBIA 105%105%

ROMANIA ROMANIA 90% 90%

CROATIA CROATIA 70% 70%

OBSTACLES TO INTERNATIONAL TRADEOBSTACLES TO INTERNATIONAL TRADE

STILL HIGH IMPORT TARIFS IN 2012:STILL HIGH IMPORT TARIFS IN 2012:

CROATIAN TARIFS FOR IMPORTS FROM CROATIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 43%, ONIONS 41%, HUNGARY: TOMATOES 43%, ONIONS 41%, PEPPERS 31%; APPLES 37%, WATERMELONS 65%PEPPERS 31%; APPLES 37%, WATERMELONS 65%

HUNGARIAN TARIFS FOR IMPORTS FROM HUNGARIAN TARIFS FOR IMPORTS FROM SERBIA: APPLES 33%, PEACHES 29%, PLUMS 20%SERBIA: APPLES 33%, PEACHES 29%, PLUMS 20%

SERBIAN TARIFS FOR IMPORTS FROM SERBIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 24%HUNGARY: TOMATOES 24%

GOOD OPPORTUNITIES OPENING GOOD OPPORTUNITIES OPENING IN DOROZSMA WITH THE DEMOLITION IN DOROZSMA WITH THE DEMOLITION

OF IMPORT PROTECTIONOF IMPORT PROTECTION FOR CROATIAN BUYERSFOR CROATIAN BUYERS

FOR SERBIAN SELLERS (FRUITS, ESP. BERRIES)FOR SERBIAN SELLERS (FRUITS, ESP. BERRIES)

FOR SERBIAN BUYERS (VEGETABLES)FOR SERBIAN BUYERS (VEGETABLES)

2012: SELLERS FROM 1 COUNTRY, 2012: SELLERS FROM 1 COUNTRY, BUYERS FROM 2 COUNTRIESBUYERS FROM 2 COUNTRIES2020: SELLERS FROM 2 COUNTRIES, 2020: SELLERS FROM 2 COUNTRIES, BUYERS FROM 4 COUNTRIES?BUYERS FROM 4 COUNTRIES?

WEBPAGE: www.dornagypiac.huWEBPAGE: www.dornagypiac.hu