European Union Horticulture Markets - Considerations for Ukraine

1. European Union Horticulture Markets - Considerations for Ukraine Roundtable Hotel Zvezdnaya, Simferopol Thursday 7th July 2011

2. European Union Horticulture Markets - Considerations for Ukraine 15% of value of EU agricultural production comes from horticulture Worlds 2nd biggest global producer (10% of total) 40 billion EUR trade value per annum Majority of production on land areas less than 4 ha Traceability Fair trade ethics Private standards and supermarket power Climatic change, food miles, carbon “footprint” Healthy eating WTO agreements Logistics and e-commerce Most horticulture is labour intensive Smaller holdings can produce better quality produce Fruit and vegetables are living products that start to deteriorate after picking

3. European Union Horticulture Markets - Considerations for Ukraine European Union Horticulture has never received direct production subsidy payments. Since 2008 focus has been upon support to: • Producer Organisations (POs) • Crisis Management • Inclusion of fruit and vegetables in the Single Payment Scheme (SPS) • Environmental measures • Encouraging greater consumption • Transitional soft fruit payment for processing • Separate fruit and vegetable payments for SAPS countries (Balkans/Turkey)

4. European Union Horticulture Markets - Considerations for Ukraine EU Regulations: Commission Regulation (EC) No 1580/2007 Fruit and Vegetable Sector Commission Regulation (EC) No 1221/2008 Fruit and Vegetable Marketing Standards

5. European Union Horticulture Markets - Considerations for Ukraine • Provisions regarding tolerances • Provisions regarding presentation • Uniformity • Packaging • Presentation • Provisions regarding marking • Identification • Nature of produce • Origin of produce • Commercial Specification General Marketing Standards • Definition of produce • Provisions regarding quality • Minimum quality requirements • Minimum maturity requirements • Classification (Extra, Class 1, Class 2) • Provisions regarding sizing Some significant products excluded from marketing standards such as : potatoes ,sweetcorn, wild mushrooms, chilli peppers, capers, brazil nuts bitter almonds, shelled almonds, shelled hazelnuts, shelled walnuts, olives, bananas, saffron, ginger, peanuts, sweet potatoes , yams.

6. European Union Horticulture Markets - Considerations for Ukraine • A growing local demand for vegetable raw materials (fresh and processed) • Large percentage of marketed production from household producers • Wide yield variations between growers • Lack of proactive strategies implemented to overcome high price variabilities through and between seasons • Low level of application of a complete range of modern farm management techniques • Undeveloped/unexploited market for niche and added value production • Level of understanding, or measurement of, harvest and post-harvest losses • Disorganised fresh vegetable/fruit markets • Low use of advanced technologies for production/harvest/post harvest/marketing • Low level of grower organisation and networking • Little quality differentiation/incentives or branding • Concerns regarding water availability/quality and management • Insufficient access to seasonal and medium term credit for many growers • Low levels of crop/farm insurance • A lack of reliable or relevant vegetable production or marketing research or commercial horticulture training/advice available locally

7. European Union Horticulture Markets - Considerations for Ukraine Production • Variety selection (early/late varieties) • Planning planting calendars/ scheduling • Yields (seedlings/saplings propogation, planting/cultivation techniques, good agricultural practices) • Protected cultivations Post Harvest Technologies • In field techniques (picking/trimming/cooling/grading/curing/ handling/packing etc • Transport and logistics and infrastructure • Storage, chilling, freezing, ripening • Grading and packing

8. European Union Horticulture Markets - Considerations for Ukraine Marketing • Information • Proactive selling • Buyer linkages/contracting/processors/supermarkets • Farmer/assembly and wholesale markets • Specifications and standards • Promotion and branding • Specialist agents and intermediaries Management Approaches • Organisation and innovation • Record keeping • Gross margin analyses/cash flow/financial analsyses • Electronic commerce

9. European Union Horticulture Markets - Considerations for Ukraine • Commercial producer marketing organisations (PMOs) • Effective farmer extension • Commercial and specific focus • Farmer to farmer • Research/commerce links • Participatory approaches and team building • Improved investment climate

10. European Union Horticulture Markets - Considerations for Ukraine Some international websites: www.freshinfo.com www.eurofruitmagazine.com www.eurep.org www.fruitnet.com www.farmline.com www.ghvi.co.nz www.asiafruitmagazine.com www.thegrower.org www.fruitandveggie.com www.marketfresh.com.au Software and Services www.freshware.co.uk www.hplgroup.com Training materials www.frelectra.gr EU Swap-Rural Programme in Ukraine 16-A Mechnykova Str. Office 916 01023 Kiev www.swap-rural.org.ua Tel: +380 44 3550178