המרכז הבינתחומי לניתוח ותחזית טכנולוגית ליד אוניברסיטת תל - אביב

1. Improving Quality Management in the Minimally-Processed (MP) Fruit and Vegetables Industy of theEuro-Med AreaMesagne (Brindizi), Italy, 12 – 15 December 2003Dr. Yona SidererThe Interdisciplinary Centre for Technological Analysisand Forecasting, at Tel-Aviv University, Israel המרכז הבינתחומי לניתוח ותחזית טכנולוגיתליד אוניברסיטת תל - אביב

2. DefinitionMinimally-processed fruits and vegetables are to be intended as horticultural products which are prepared and handled to maintain their fresh nature while providing convenience to the user (Cantwel, 1992). Other terms used to define MP products are:Fresh-cut, lightly processed, ready-to-use, or fresh-processed.

3. StatisticsFresh vegetables consumption in Israel totals about 2 billion Israeli Shekel annually(1$ US ~ 4.5 Israeli Sheqel);800 Million sheqel of those are vegetables for salad, about 40% of the fresh vegetables. Israeli annual vegetables consumption is 180 Kg/capita. Israel is at the first place worldwide in vegetable consumption per capita.

4. Data from Agrexco, Israeli Produce Exporters Ltd.

5. Data from Agrexco, Israeli Produce Exporters Ltd. (Cont.)

6. Data from Agrexco, Israeli Produce Exporters Ltd. (Cont.)

7. Production Organizations Companies and Farms involved in production of minimally processed Produce

8. Companies and Farms involved in production of minimally processed Produce

9. Companies and Farms involved in production of minimally processed Produce

10. Consumer concern and attitudes Consumer – “Yediot Aharonot” - Israeli daily newspaper, August 11, 2002 Cut vegetables in Europe are subject to long disinfection processes, which raise the question of how “fresh” can they still be called; In Israel the process is simpler. People are ready to pay more for the convenience and for not having to cut the vegetables for salad.

11. Consumer concern and attitudes Recently, the shelves in the food chains carry cut and chilled vegetables. Last summer, peeled, cut and chilled fruit have also appeared, peeled pomelo is the first of those.  In England, there was 20% increase in the cut vegetables niche. In Israel it had started slow with the entry of McDonald into Israel before more than 7 years. They needed cut vegetables to include in their salads menu.

12. Consumer concern and attitudes Mr. U. Pelach of The Blue Square (HaRibua HaKachol) chain says “Customers know to evaluate not only convenience.They get only net-net vegetables, without the large loss of material, without the need to wash, and with a fixed price all over the year, which is not much more expansive from the regular vegetables on the shelf”.

13. Are the vegetables fresh?Dr. Brian Cazin, Director of the National Food Service says that special procedures were written in his office for production and inspection of the cut, chilled vegetables. The office inspects level of cleanliness, not nutritional values. Mr. Cazin states that the vegetables maintain their nutritional values, mainly because they are kept in the cold chain. “Sometimes it is better from fresh vegetables which circulate in the markets and greengrocers until they reach the customer”.

14. Production organization Examples of few of the production companies are listed below: The largest plant for cut and chilled vegetables for salad is A.N.F. Sede Nitzan, who mainly produces for Coop Haribua HaKachol (ca. 200 ton), and also to airline companies, minimarkets and others. The treatment of carrot, for instance, is simpler than that in England: The carrot is picked up from the soil in Kibbutz Erez, is washed in the washing plant with its peel, disinfected against spoilage in the cold room, especially in summer, is kept chilled in 2°C for 24 hours and that transferred to the pilling machine and edge cutting.

15. Production organization (Cont.) Further on the carrot goes on a water free line to the cutting machine and later is bathing in cold water with disinfection substance called “strotap”, the only substance approved by the Ministry of Health, then it is washed again in clean water, dried and packed.  The farmer claims that the processes that the vegetables are subject to do not damage them, and that he has continuous tests of the laboratory of the Ministry of Health which document that the vegetables are in high (that is good) microbiological level. He says that the nutritional values are maintained as in fresh vegetables coming out of the ground, and that the cold chain helps in extending the shelf life of the product.

16. Production organization (Cont.) Strauss Ltd, enters the market of chilled vegetables The company, the second largest food company in Israel, will invest 2 million dollars in entering this market niche.  Strauss started selling cold salads under the label “Achla”. Strauss bought 51% of A.N.P. fresh vegetables production plant, and it estimates that this market niche will grow at least 100%. Estimated investment of Strauss in this cooperation is 4 million dollars.  Strauss will inaugurate 3 salads categories: Family salad, Personal salad and a variety of vegetables for cooking. As a first step, Strauss will run a market experiment in 50 sale points in the Sharon district.

17. Production organization (Cont.) Strauss Ltd, enters the market of chilled vegetables Strauss Ltd. product lines Achla Teva has the following salad mix in the family line: From all the garden: Iceberg lettuce, carrot, red cabbage Cabbage and other goodies: white cabbage, red cabbage, carrot Bags and decoration: lettuce, Iceberg lettuce, carrot, rocket leaves Other package: leaves of: rootbeet, mustard, rocket, rocola, spinach In the personal line: Easy Nicoise, Olimpic Greece, Health Salad, Ceaser’s hand Salad (4 different varieties) In the vegetables for cooking line: cabbage, brokoli, carrot (4 different varieties packages)

18. Production organization (Cont.) Strauss Ltd, enters the market of chilled vegetables Chilled vegetables are classified in the second place in the health perception, after the water category Strauss Ltd. evaluates at least 100% increase in this niche, whereas Staruss will be the leader as far as market share and innovation.  Penetration of the chilled vegetables niche is about 12%. Per capita consumption on the average is 1.2 $/year In the USA pentration is 84% and per capita consumption is 32 $/year. In Europe the market penetration is 30% and per capita consumption is 5 $/year.

19. Production organization (Cont.) Zoglobek Ltd. - 10 million Israeli Sheqel investment in chilled vegetables Zoglobek intends to get hold of 40% of market share of the chilled vegetables section which is expected to grow with the entrance of Strauss into this market.  In the USA the chilled vegetables sales are about 15% of the sales in the Americans supermarkets, but most of them are sold as salad bar, vegetables stands in which the customers collect the vegetables into transparent packaging trays as they choose. Attempts to sell vegetables in this way in Israel have failed, mainly due to the produce quality and its price.

20. Production organization (Cont.) Zoglobek Ltd. - 10 million Israeli Sheqel investment in chilled vegetables Cut vegetables for salad or soup take 3-5% of the sales. Any success in increased market share of the cut and chilled vegetables in the Israeli market may replace the frozen vegetables market share, said Mr. J. Ginzburg, General Manager of Club-Market.