WORLD MARKETS FOR FRESH FRUIT AND VEGETABLES Claudia Marín D. Daniel Medina B. Cristina Macarrón C. Rodrigo Valdés S. May Faculty of Agricultural Sciences Georg August University of Goettingen

Overview of international F & V market Overview of international F & V market  Involve 1274 mill. tons. with 56% of growth rate between  Consumption reach mill. U$ in 2007 with 12% of development rate respect 2006  China is the world leader in production followed by LA and Caribbean  India, China are almost net consumers and Mexico with LA are exported oriented  Existence of transnational suppliers.  Supply ensured by all year around

Producer/Exporter Broker Importer Distributor/Wholesaler Supermarkets Distribution channels for F and V products Dominant- - - Less usual

World Production of F & V Source: Faostat (2003)

World exporters and importers of F &V Source; Diop and Jaffee (2005)

PRODUCTION

Highest value fruits and vegetables production Chile Chile Ecuador Ecuador Italia Italia Egypt Egypt

Main products Chile : Quantity(Mt) Value (000US$)Chile : Quantity(Mt) Value (000US$) Grapes Apples Fruit Prepared Kiwi Fruit

Ecuador: Quantity(Mt) Value (000US$)Ecuador: Quantity(Mt) Value (000US$) Bananas Bananas Cocoa Beans Fruit Prepared Fruit Prepared Pineapples Pineapples

Italy: Quantity(Mt) Value (000US$)Italy: Quantity(Mt) Value (000US$) Grapes Apples Apples Fruit Prepared Peaches and Nactarines and Nactarines Kiwi

Egypt : Quantity(Mt) Value (000US$)Egypt : Quantity(Mt) Value (000US$) Oranges Vegetables Frozen Vegetables Frozen Vegetables Dehydrated Vegetables Dehydrated Seeds Fruits Spores Seeds Fruits Spores

CONSUMPTION

Growth rate and market share for world fruit and vegetable exports average (%)

Destination of fruit and vegetable exported by the world’s 30 top exporters average Source: Huang, 2004

Per capita consumption of fresh fruit and vegetable in selected countries (2006) Source: USDA, 2003 & European Commission, 2007

MARKET TRENDS

Prospect of the Worldwide Fruit Market Key Factors:Key Factors: Population GrowingPopulation Growing Global WarmingGlobal Warming New Consume TendencesNew Consume Tendences Prospect of the Worldwide Fruit MarketProspect of the Worldwide Fruit Market According to the ZMP (Central Market and Price Reporting Office for Agricultural, Forest and Food Industry Products), nearly 800 million tonnes of vegetables and 650 million tonnes of fruit were produced worldwide in 2006.According to the ZMP (Central Market and Price Reporting Office for Agricultural, Forest and Food Industry Products), nearly 800 million tonnes of vegetables and 650 million tonnes of fruit were produced worldwide in around 10% of the worldwide production of major fruit varieties is sold on international markets.around 10% of the worldwide production of major fruit varieties is sold on international markets. Only between 3-4% of the vegetables produced worldwide are sold internationally. The EU is the world's primary import region for fresh fruit and vegetables, followed by North America, Japan and RussiaOnly between 3-4% of the vegetables produced worldwide are sold internationally. The EU is the world's primary import region for fresh fruit and vegetables, followed by North America, Japan and Russia

Evolution of Fruit Production Worldwide

Prospects  Vegetables Especially leafy vegetables, will rise sharply in the phase due to changes in population structure, customer preferences, people’s income.Especially leafy vegetables, will rise sharply in the phase due to changes in population structure, customer preferences, people’s income. Demand for potato and other root vegetables might rise by only 7% - 8%.Demand for potato and other root vegetables might rise by only 7% - 8%. Fresh vegetable prices will go up due to increase in demand but processed vegetable prices will just rise slightlyFresh vegetable prices will go up due to increase in demand but processed vegetable prices will just rise slightly The need for import of vegetable is estimated to rise by around 1.8% annually (US Department of Agriculture (USDA, 2007).The need for import of vegetable is estimated to rise by around 1.8% annually (US Department of Agriculture (USDA, 2007).  Tropical fruits Global import of fruits will hit US$4.3 million tons in the year In which 87% or 3.8 million tons will be imported by developed countries.Global import of fruits will hit US$4.3 million tons in the year In which 87% or 3.8 million tons will be imported by developed countries. The US and the EU market will represent 70% of global import of tropical fruits.The US and the EU market will represent 70% of global import of tropical fruits. The EU will remain to be the largest tropical fruit importer with the major consumer of France and the main transshipment port of the Netherlands. In addition to the US, the EU, and Japan, Canada and Hong Kong are also large tropical fruit importers (US Department of Agriculture (USDA, 2007).The EU will remain to be the largest tropical fruit importer with the major consumer of France and the main transshipment port of the Netherlands. In addition to the US, the EU, and Japan, Canada and Hong Kong are also large tropical fruit importers (US Department of Agriculture (USDA, 2007).

 Citrus fruits Production rises quickly while demand increases just slowly leading to lower prices of fresh as well as processed citrus fruits.Production rises quickly while demand increases just slowly leading to lower prices of fresh as well as processed citrus fruits. Growing area of these fruits thus has been narrowed considerably and output will grow at low rate in the coming years. Saul Paulo of Brazil and Florida of the US will remain to be the biggest suppliers of citrus fruits in the world market (USDA, 2007). Growing area of these fruits thus has been narrowed considerably and output will grow at low rate in the coming years. Saul Paulo of Brazil and Florida of the US will remain to be the biggest suppliers of citrus fruits in the world market (USDA, 2007).  Banana Global import of banana will total 14.3 million tons in the year % lower than exported volume due to losses during transportation.Global import of banana will total 14.3 million tons in the year % lower than exported volume due to losses during transportation. Import of banana into developing and transitional countries will rise at higher rate than developed countries. Import of banana into developing and transitional countries will rise at higher rate than developed countries. Developing and transitional countries will represent nearly 50% of the world import of banana in 2010 instead of the current 25%. Developing and transitional countries will represent nearly 50% of the world import of banana in 2010 instead of the current 25%. Banana import of developed countries is forecasted to rise by 1% - 2% in the coming years. 80% of the increase will be represented by Canada and the US. However, the EU will remain to be the major banana importer (USDA, 2007).Banana import of developed countries is forecasted to rise by 1% - 2% in the coming years. 80% of the increase will be represented by Canada and the US. However, the EU will remain to be the major banana importer (USDA, 2007).

References Cook, R. (2003). The Evolving Global Marketplace for Fruits and Vegetables. Department of Agricultural and Resource Economics University of California, Davis. Diop, N.; Jaffee, S. Fruits and vegetables: global trade and competition in fresh and processed product markets. In: Aksoy, M.; Benghin, J. (Eds.) (2005), Global Agriculture Trade and Developing Countries, Manas, New Delhi: European Commission. (2007). Fruit and vegetable reform. Brussels. Garibay, Salvador (2008), Organic retailer development in Latin America(general trends) Huang, S. (2004). Global Trade Patterns in Fruits and Vegetables. USDA, ERS Lucier, G; Pollack, S; Ali, M; Perez, A. (2006). Fruita and vegetables backgrounder. Outlook report No. VGS USDA. Richter, (2008). Retailing Organ IC Foods and Trends in Europe, Latest Trends in Distribution Channels and driving forces. Willer, H; Yussefi, M. (Eds) The world of organic agriculture: statistics and emerging trends IFOAM, FiBL, Bonn and Frick: 250p