Enhancing Export of Fruit and Vegetables to EU markets

1. Enhancing Export of Fruit and Vegetables to EU markets Jose-Maria Garcia-Alvarez-Coque Polythecnic University, Valencia

2. The EU market for fruit and vegetables • One of the world largest markets: • 10.5 per cent of the world consumption • 29 million tons of fruits • 41 million tons of vegetables • Moderate import growth: • Total imports growing at 1.5 per cent per year. • Significant changes in product composition. • Though protected, still a large importer from non-EU countries.

3. Why would Syria be interested in the EU market? • Syria is a horticultural exporter. Shares in total Syrian agricultural export value: • Fresh vegetables: 28 % • Fresh fruit: 15 % • Processed F&V 3.5 % • The import EU market is still growing for some products of export interest for Syria. • Potatoes, onion, garlic, table grapes, apples, cherries, apricots, tomatoes.

4. The Association Agreement will open: • New market opportunities. • Stable framework for trade. • Syrian exports are over-specialized on AFTA markets • Except for potatoes and garlic, the EU destination accounts for < 1 % of total Syrian export value.

5. Structure of Syrian exports 1998-2000 (%) Source: Customs Department, NAPC.

6. Factors of success for fruit and vegetable exports: Comparative advantage for fruit and Vegetable production Market access in the EU Adaptation to EU distribution and consumer trends

7. Farm-price comparisons • Monthly price comparisons were performed between Syria and 5 EU countries for 1998-2000. Percentage of observations where Syrian prices undercut farm-prices in EU countries: Why low prices?

8. Factors of success for fruit and vegetable exports: Comparative advantage for fruit and Vegetable production Market access in the EU Adaptation to EU distribution and consumer trends

9. The EU market-access issue • For most fruits and vegetables extra-EU sources sharply reduced in some parts of the year: import substitution. On what depends the benefits of the Association Agreement? • Seasonal pattern of the entry price system. • Extent of quantitative limits and calendars. • Management of non-tariff barriers. • Adaptation of Syrian harvesting seasons to EU concessions.

10. The agricultural protocols. The tomato case • Percentage of Syrian tomato harvest: • From December to March: 25 % • From October to April: 48 %

11. The entry price. Seasonal variations

12. Factors of success for fruit and vegetable exports: Comparative advantage for fruit and Vegetable production Market access in the EU Adaptation to EU distribution and consumer trends

13. What EU consumers demand. • Products are not classified by botanic varieties… • but by emerging consumer goals: • Convenience: take-away, eating in front of TV, meals solutions. • Snacking: “eating on the move” • Health and environment. • Contradictory consumer behavior: • Quick to prepare but also healthy • Authentic, but also of convenience • Cheap but available the whole year • Unusual but with affordable price • Homogeneous in appearance, but ecological.

14. The modern distribution. • The first European group (Carrefour) has a turnover of 50 billion € (Wal-Mart more than doubles this figure). The “Top 5”

15. Implications for horticultural traders • Number of suppliers is reducing, with greater volumes. • Relations based on trust and reputation. • Specialized working teams per customer. • Quality becomes not a factor of differentiation, but a precondition. • Supply chains enforce internal relations and develop wide incentives for assuring timely production and delivery. They are based on shared information and reciprocal scheduling, product quality assurances and transaction volume commitments.

16. Farmers Wholesale market Commissioners Local commissioners Exporters Packing houses Foreign market The traditional marketing

17. The publicrole in breaking the vicious circle