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Fresh table grapes: world demand and production estimates

In its latest report on world markets and trades for deciduous fruit, the FAS also said global trade in fresh table grapes is likely to remain steady at about 2.7 million tons in the 2015/16 marketing year, though both Peru and China are poised to increase their shares.

Global consumption of fresh table grapes is set to rise for the 6th consecutive year, going from just over 15.6 million tons in 2009/10 to an expected 20.9 million tons in 2015/16, amounting to growth of nearly 34%.

China, India, the EU, Turkey and Brazil are the top 5 consumer markets.

Production
Meanwhile, world table grape production is also headed up, by 479,000 tons to 21.1 million in 2015/16, as continued growth in China more than offsets declines in Turkey, according to new projections by the USDA Foreign Agricultural Service (FAS).

In its latest report on world markets and trades for deciduous fruit, the FAS also said global trade in fresh table grapes is likely to remain steady at about 2.7 million tons in the 2015/16 marketing year.

Both Peru and China are increasing their shares.

China: is the world’s biggest fresh table grape grower and consumer, accounting for about 46% of both global production and consumption.

China’s production is forecast to jump 800,000 tons to 9.6 million on higher area in 2015/16 and its exports to surge 35,000 tons to 165,000 as lower prices and good quality fruit boost exports to neighboring Asian markets. Imports into China are expected to rise 24,000 tons to 250,000 on higher shipments from top suppliers Chile and Peru.

Chile: the top table grape exporter, with a 27% share of the global market, Chile faces a slight contraction in production to 925,000 tons on continued low yields following last year’s March floods and July snow, which affected orchards in the north.

Before the bad frost of 2013/14, Chile’s production had been above the million ton mark. Its 2015/16 exports are forecast down 10,000 tons to 740,000 on lower exportable supplies.

United States: production is forecast up 29,000 tons to 984,000 on higher yield in California despite drought being a concern for many growers. Exports are forecast to remain flat at 390,000 tons on unchanging demand from top markets Canada and Mexico. Imports are forecast to slip 7,000 tons to 540,000 on lower availability from top supplier Chile, the FAS says.

Peru: production is forecast to rise a modest 10,000 tons to 510,000 as new plantings, driven by strong foreign demand, continue to come into production. Exports are forecast to rise 15,000 tons to 295,000 as market share continues to expand in top markets China and the EU. Peru ranks third after Chile and the US for fresh table grape exports, holding an 11% slice of the world market.

Turkey: is the world’s third biggest fresh table grape grower (and ranks fourth as a consumer) but production is forecast to drop 345,000 tons to 2 million tons as the main growing region of Western Turkey was hit by a spring frost. Exports are forecast to drop 78,000 tons to 179,000 on lower output and reduced shipments to top market Russia, where a ban on certain Turkish imports goes into effect January 1, 2016.

EU: imports into the EU, the world’s number one fresh table grape import market, are projected down slightly to 600,000 tons on stable demand and higher domestic production.

EU production is forecast up 49,000 tons to 1.7 million on increased output in Spain. Despite the Russian ban, exports are expected to remain stable at 105,000 tons on sustained exports to new markets in North Africa and the Middle East.

Russia: imports are forecast to fall 51,000 tons to 250,000 as consumer purchasing power continues to fall, consumption declines, and shipments from Turkey are reduced following Russia’s ban. Russia’s production is forecast down 9,300 tons to 90,000 on reductions in both commercial and household production.

Source: “Fresh Deciduous Fruit: World Markets and Trade (Apples, Grapes, & Pears)” December 2015, USDA Foreign Agricultural Service.

NB: The United States and Mexico are on a May-April marketing year for table grapes. All other Northern Hemisphere countries are on a June-May marketing year. Southern Hemisphere countries of Argentina, Chile, and New Zealand are on a calendar year indicated as the second year of the split year; South Africa is on an October-September marketing year (adjusted from calendar) on the first year of the split year. Some countries may include raisin-type and/or table-type grapes.

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EU says will review CBS situation before next citrus export season

The European Commission, together with Member States, says it will review the situation with citrus black spot CBS interceptions well before the next export season and non-EU countries with recurrent interceptions will be approached on how to comply better with the EU requirements.

The European Commission says, together with Member States, it will review the situation with citrus black spot (CBS) interceptions well before the next export season. Non-EU countries with recurrent interceptions will be approached on how to comply better with the EU requirements. Furthermore, specific audits to evaluate the system of official controls and certification of citrus fruit for export to the EU are planned by the Food and Veterinary Office in 2016, including to South Africa and Argentina.

This is among the information provided on behalf of the Commission by EU Chief for Health and Food Safety, Vytenis Andriukaitis. He was responding to a written question in the European Parliament from Spanish MEP Clara Aguilera García (S&D). Aguilera had raised concerns about cases of the disease in citrus imports from South Africa and Argentina, asking how the Commission planned to prevent CBS spreading to the EU.

Andriukaitis said due to the recurrent number of interceptions of this pest on citrus fruit from South Africa during the 2015 import season, the possible need to revise Decision 2014/422/EU was discussed with Member States. “They agreed to maintain the current emergency measures requesting an increased vigilance to South Africa for the 2015 season.

“From 9 October onwards, South African authorities have unilaterally decided to ban the export to the Union of citrus fruit originating in areas where Phyllosticta citricarpa is present. Finally, the number of import interceptions from South Africa has decreased in 2015 compared to previous years,” he said.

He went on to say the situation would be reviewed before the next export season.

Image: By Cesar Calderon (USDA APHIS PPQ, Bugwood.org) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

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DIA expands its online business in Barcelona

DIA says its online shop includes a range not available in certain high street stores and is the cheapest establishment in the entire company, thanks to its aggressive rates and promotional discounts.

DIA has expanded its online shopping business with the launch of an online platform in Barcelona,

In a press release, DIA said that having rolled out this experience in Madrid and Málaga, it is now making its online business available to reach a potential 4 million consumers in Barcelona.

“DIA’s online shop, which includes a range that is not available in certain high street stores, has become the cheapest establishment in the entire company, thanks to its aggressive rates and promotional discounts.,” it said.

Delivery will be made from 7 DIA shops, where the number of staff has been increased, with a total of 14 new hires, and is free for orders over €50. If the order is made before midday, it can be delivered that same day, and an SMS is sent to customers 20 minutes prior to delivery.

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Why Freshfel wants a new European strategy to facilitate exports

“Stimulating consumption should remain the main priority for the sector.”

Interview with Freshfel Europe chairman Luc Clerx

What is your assessment of European trade over the past 3 years?

Last year, the European fruit and vegetable trade was confronted with the far reaching implications of the Russian embargo. While Russia, overall, only represented 2% of the total European fresh fruit and vegetable business, its impact was significant because exports to Russia also accounted for around 40% of EU exports to non-EU countries. The sector responded promptly, repositioning itself in other non-EU country markets (Asia, Latin America, North Africa), but also took innovative measures to stimulate consumption in the domestic market. Freshfel and its members were also active in addressing market access hurdles to further open new markets. Overall, while the flow of produce remained stable, the main challenge for many commodities was on prices, which recorded a decline from which they have not yet recovered.

What are the latest possibilities for progress over access, particularly to the US and Asian markets?

Within Freshfel, we are adamant about setting up a new European strategy to facilitate exports. We are convinced that greater coordination under the leadership of the Commission would help to facilitate the opening of a number of markets which currently remain closed or which impose restrictive and excessive barriers, mainly in the SPS (sanitary & phytosanitary) area. A pilot project is currently in place to introduce a system approach for 8 EU member states to export apples and pears to the US. The discussion is hopefully now in its final stage and could govern the framework for exports as of next season. The main objective is to avoid the costly pre-clearance system and have the EU recognized as a single entity. This would avoid having to negotiate market access product by product and member state by member state. The model used for the US could serve as a basis for other destinations, Mexico and Chile being the next two where such a scheme could be tested. 

School schemes and promotions: the actions implemented use far less than the available EU funding. How can the sector be mobilised into making full use of it? 

The school fruit and vegetable scheme is an important tool that can help to educate young consumers on the taste, texture and diversity of fruit and vegetables. Freshfel has been working actively to keep the system, which at one stage was challenged by the Juncker Commission. Freshfel was successful not only in securing the ongoing availability of the scheme but also in managing to convince the EU to further increase the budget available for the scheme, from €90 million to €150 million, with a view to covering the accompanying measures as well. Usage of the budget was quite high with the €90 million budget, as almost 80% of the available funds were effectively used. Today the level of usage has indeed fallen to 65%, but it is 65% of the increased budget. Consequently more money is effectively being used, as the funds spent on the scheme are now approaching €100 million. As the rules for the accompanying measures become clearer, it is expected that the budget used will continue to increase and will get closer the €150 million available.

With regard to promotion, the fruit and vegetable sector is the main user of the funds available for EU agricultural products. Around a total of €25 million is usually granted for sector projects to support sales in both the domestic and non-EU markets. The EU has now embarked in a reform of its promotion policy, which will progressively come into force next year. The EU wants to focus more on non-EU markets but will also provide a bigger budget. Over time the budget will move from the current €80 million towards a €200 million package for all agricultural products. The new rules are challenging, but this will still represent an excellent opportunity for the sector to get access to budgets to boost the promotion, marketing and image of fresh fruit and vegetables and provide information on them.

Are greater restrictions on access to the EU market envisaged by the Commission or desired by European producers? 

The EU has always been an open market and, as a matter of fact, it remains the leading world importer of fruit and vegetables. The EU imports around 12 million tons of fruit and vegetables on a yearly basis. However, the world is rapidly changing and demand in many other regions is growing, particularly in Asia, Africa and Latin America. There is therefore more competition on the world market. As regards access to the EU, a number of factors influence nonEU country exporters’ decisions to export or not export to the EU. The exchange rate is an important factor, so are market demand and prices, and also some market access conditions. EU food safety legislation and European customers’ requirements remain demanding, making the EU market the safest for its consumers. Besides, following multiple instances of non-compliance with the EU plant health legislation (more than 7,000 per year – including close to 2,500 in the fruit and veg sector), the EU is taking action to secure compliance with it. The EU is also reshaping its plant health policy and new rules might apply as of 2018. It is therefore important for suppliers to the EU to take the plant health legislation seriously and implement the necessary corrective measures to remedy possible non-compliance in order to guarantee supply stability.

Any other hot topics? 

Stimulating consumption should remain the main priority for the sector. Too many member states consume less than the minimum WHO recommendations and the long term trends are indicating a decline in consumption. Some encouraging signals were noted in the aftermath of the Russian embargo, but need to be confirmed and consolidated. The sector and its produce have numerous advantages for nutrition, the environment and the economy which need to be appreciated better. The sector needs to understand and know its consumers better and needs to build on the pillars of a healthy diet to stimulate consumption. Just increasing consumption by a few grams per capita per day will assist in balancing the market situation better and moving the sector forward with a bright outlook for the coming years. 

PE 

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Consumer Trends from edition 140 of Eurofresh Distribution magazine

Read about some of the latest new products and services in fresh produce.

This edition of Consumer Trends appeared on page 4 of edition 140 (Nov-Dec 2015) of Eurofresh Distribution magazine. Read that issue online here.

Cooler every year: kohlrabi

Touted as the next ‘it’ veg, kohlrabi is as versatile as it is trendy. Time Magazine describes its texture and flavour as similar to broccoli, but said it is sweeter. Popular in its native Germany, kohlrabi can be cooked, added to soups, eaten raw in salads or as a crunchy snack, and even fermented. This brassica, which comes in white and red varieties, is becoming popular in avant-garde restaurants and now being discovered by consumers in North America and wider Europe. Suppliers will increasingly be using chefs to entice consumers to try this veg, which also has health benefits including being high fibre and in Vitamin C and other antioxidants, and low in calories.

 

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Koppert Spain building new R&D centre in Almería

Research into microorganisms that are beneficial to agriculture will be one of the key activities to be developed at Koppert's new R&D centre.

Koppert Biological Systems, recently laid the foundation stone for a sustainable building in the Spanish town of Vícar and hopes to bring microbiological solutions closer to growers around the world.

In a press release, the company’s local sales director Valter Ceppi said the building is much more than an economic investment. “It represents Koppert’s commitment to agriculture and reflects our interest in working side by side with farmers to improve the competitiveness and commercial value of their crops.”

The Mayor of Vícar in the province of Almería, Antonio Bonilla, and Councillor María Fernández, were present at the stone laying ceremony for the new 300 m2 R&D centre which Koppert Spain is building on this site.

Commitment to natural solutions

Research into microorganisms that are beneficial to agriculture will be one of the key activities to be developed at the new R&D centre. This will strengthen Koppert’s commitment to microbiology, a field of research in which the company has already achieved major successes.

The identification of fungi and bacteria which naturally increase the growth and productivity of plants, while strengthening the natural resilience of crops against diseases that are mainly transmitted through the root, form the basis for a range of Koppert’s seed, soil and plant enhancement products.

There will be a second laboratory for entomological research (insects) and an area devoted to quality control for all the biological products which Koppert sells in Spain. The new facilities, which will open in about six months, will also have offices for researchers, a meeting and training room, a kitchen, and communal areas.

The new R&D centre will have sufficient space to accommodate both permanent staff and visitors.

The new building will be self-sufficient in terms of energy, relying on solar and wind power, and will be constructed with materials that take maximum advantage of the light and Mediterranean climate to minimise its environmental impact.

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Positive results for TOMRA Sorting Food in first three quarters of 2015

TOMRA Sorting Food, formerly BEST and ODENBERG, designs and manufactures sensor-based sorting machines for the food industry. Over 9,000 systems are installed at food growers, packers and processors worldwide.

TOMRA Sorting Food has enjoyed a ‘positive’ performance for the year to end September.

The leading food sorting systems manufacturer is reaping the benefits of the successful launch of a number of new products and ongoing investment in research and development (R&D), said Ashley Hunter, head of TOMRA Sorting Food.

“TOMRA Sorting Food’s ongoing success has been driven by all of our new products – including Blizzard, Nimbus BSI and Sentinel II – being very well received by new and existing customers. Our biometric signature identification (BSI) technology, which has long been used by TOMRA’s recycling business, has also been an excellent addition to our portfolio enabling us to lead the industry in nut sorting.

“We are excited about the technology advancements made by our R&D team this year, and are looking forward to launching further sorting innovations with additional customer benefits in 2016,” Hunter said.

Opportunities for growth in developing countries

TOMRA Sorting Food continues to expand its presence in the Middle East, China, Southeast Asia and India.

“Population growth, increased food safety and quality demands in developing countries, as well as an increased desire for convenience food, mean a greater requirement for our sorting machines and technologies in these regions.

“A good example of this is the Chinese government’s announcement regarding its focus on the country’s food supply system which will review automation, technologies and safety. In India, for example, we are seeing the development of the refrigerated food supply chain and the related increase in demand for frozen food. “This creates opportunities for our Blizzard machine in the individually quick frozen vegetable and fruit processing market.

“We anticipate growth in developing countries as these above mentioned demand factors are aligned with us expanding from a lower base in these territories,” Hunter said.

TOMRA Sorting Food also aims to capitalise on a variety of global trends which further increase demand for its products in developed and developing nations.

“There is a worldwide requirement for improved food safety and robust traceability systems. Finite water and land resources, combined with an ever increasing population, mean we must obtain greater yields from our natural resources, including food,” Hunter said. “Labour scarcity in both developed and developing countries, where people either do not want to undertake food processing work or move away from rural agricultural areas to cities, also presents us with opportunities to introduce our machines.

“Advancements in technology mean that the use of satellite imagery and real-time data will increasingly be utilised to enhance the efficiency of the journey from field to fork. We are constantly evaluating ways to utilise these trends and technologies to the benefit of our customers and the environment,” he said.

The business recognises that the global marketplaces it serves are not without challenges, with a number of political and economic situations requiring particular attention.

“Russia’s continued food sanctions on the West, Greece’s economic crisis and China’s recent market instability all bring their distinct set of issues which we must address. We do this by remaining agile and responsive to market and territory conditions. There are always opportunities to be identified within these situations and we will continue to seek them out for the benefit of our customers.

“There are a variety of opportunities and challenges for us to face for the rest of this year and beyond into 2016. We are well equipped to deal with both scenarios and the team at TOMRA will continue to deliver our promise of leading the resource revolution in food.”

About TOMRA Sorting Food

TOMRA Sorting Food, formerly BEST and ODENBERG, designs and manufactures sensor-based sorting machines for the food industry. Over 9,000 systems are installed at food growers, packers and processors worldwide.

Its headquarters are in Belgium and it is part of TOMRA Sorting Solutions which also develops sensor-based systems for the recycling, mining and other industries.
The company provides high-performance optical sorters, graders, peeling and process analytics systems for nuts and seeds, dried fruits, potato products, fruits, vegetables, meat and seafood. The systems ensure an optimal quality and yield, resulting in increased productivity, throughput and an effective use of resources. TOMRA Sorting is one of the most advanced providers of sensor-based sorting solutions in the world, with over 14,000 of its systems installed globally.

TOMRA Sorting is owned by Norwegian company TOMRA Systems ASA, which is listed on the Oslo Stock Exchange. Founded in 1972, TOMRA Systems ASA has a turnover around €550m and employs over 2,400 people.

For more information on TOMRA Sorting Food visit www.tomra.com/food

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500-600ha less pepper production in Israel

Israel's Arava pepper growing area has declined from 1,600-17,00 ha in 2014 to 1,100 hectares this year, a decrease of about 35%.

Israel’s Arava pepper growing area has declined from 1,600-17,00 ha in 2014 to 1,100 hectares this year, a decrease of about 35%.

This has occurred as part of a government-sponsored programme to convert pepper crops for export to crops for the domestic market.

Arava Regional Council agricultural director Hemi Barkan said about 90 pepper growers have joined the programme. “Out of a budget of INS 80 million, INS 70 million were used,” he said.

Pepper growers in Israel suffered from sharp drop in profit last year, due to declines in the ruble and euro, and the sanctions imposed by Russia and the EU.

The assistance program will continue till the end of 2016. Most growers are converting from growing peppers to growing Majhoul dates, eggplants, squash and coloured cherry tomatoes.

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‘Local Harvest’ supply chain on display at SIAL ME 2015

Abu Dhabi Farmers’ Services Centre (ADFSC) – through its retail brand Local Harvest - is using the international food industry event SIAL ME 2015 – being held December 7-9 in Abu Dhabi National Exhibition Centre, UAE – as a platform to reassure purchasers and other industry players about the quality and safety of ADFSC’s plant and animal products.

Food safety and quality are important subjects not just in the home, but also for retailers, wholesalers and suppliers alike, says the Abu Dhabi Farmers’ Services Centre (ADFSC).

The centre – through its retail brand Local Harvest – is using the international food industry event SIAL ME 2015 – being held December 7-9 in Abu Dhabi National Exhibition Centre, UAE – as a platform to reassure purchasers and other industry players about the quality and safety of ADFSC’s plant and animal products.

“This global B2B event is a perfect opportunity for Abu Dhabi Farmers’ Services Centre to demonstrate how the agriculture sector has developed over the past five years and how the centre has improved the effectiveness and efficiency of the production chain,” said ADFSC’s communications section manager Ahmed Al Suwaidi.

The event theme ‘Trust throughout the Local Harvest Supply Chain’ promises to give visitors an insight into the modern and innovative agricultural techniques that have been adopted to promote local produce in the emirate.    

Delivery of Local Harvest produce begins with the production planning stage where customer requirements are agreed and new crops introduced. The final approved production plan is distributed to farmers in Abu Dhabi, via the ADFSC’s team, which also provides technical assistance to ensure farmers are correctly using water, fertiliser and other farm inputs.

“Local Harvest sells only the highest quality, safe produce. Our team of technical and quality specialists constantly monitor and advise on all aspects of production, farm practices, selection and packing. These quality assurance measures ensure our produce meets or exceeds the expectations of UAE consumers,” Al Suwaidi said.

Abu Dhabi Farmers’ Services Centre produce is available at retail shops in Abu Dhabi and Al Ain, through most major hypermarkets and supermarkets. The centre provides technical and operational support services to farmers, helping them grow and market their produce.

ADFSC was established in 2009 to bring strategic agricultural reform to Abu Dhabi, especially by introducing and encouraging the conservation of natural resources. The organization was formed under Law No. (4) 2009, issued by HH Sheikh Khalifa bin Zayed Al Nahyan, to work in partnership with the Abu Dhabi Government in order to implement reform in farming practices.

Visit www.adfsc.ae for more information on Abu Dhabi Farmers’ Services Centre.

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The Russian embargo and Turkey’s fruit and vegetable exports

In 2014, 43% of all the volume of tomatoes exported from Turkey went to Russia (336,000 tons).

Since January 2015, Turkey had exported to Russia food valued at $1 billion, or 4% of all Russia’s food imports, according to Russian Customs statistics.

The leading export products were tomatoes (292,800 t) and citrus fruit. Russia also imported grapes (68,000 t), peaches (26,000 t), apricots (28,800 t) and other fruit.

During the fruit season, the share of some Turkish products (for example, citrus) reached 50%.

In 2014, 43% of all the volume of tomatoes exported from Turkey went to Russia (336,000 tons).

“We can substitute Turkish tomatoes with those from Iran, Morocco, Israel, Azerbaijan and Tajikistan,” said Aleksander Tkachev, Russian Minister of Agriculture.

As for Turkish citrus fruit (250,000 tons imported in 2014), they can be substituted by ones from the RSA, Morocco, China, Argentina, Israel, Abkhazia and Georgia, he said.

It is possible that the embargo for Turkish tomatoes, in particular, will lead to price rises; however it is unlikely that the prices will be higher than last winter. In January 2015, 1 kg of tomatoes cost about $3; if it costs more, the demand will slump.

The government has ordered the Ministries of Trade and Agriculture to track price trends; and the Ministry of Agriculture to see how it can support Russian producers.

At the same time, the embargo does not extend to some specific products, such as lemons, lettuce, figs, etc.

NB