SITUATION AND PROSPECTS OF THE SZEGED-DOROZSMA WHOLESALE MARKET CEI WMF WORKSHOP APRIL 8, 2013 BELGRADE

MARKET LOCATION NEXT TO THE HIGHWAY WHICH IS PART OF THE EUROPEAN ROUTE E-75, AND THE EUROPEAN CORRIDOR VII NEXT TO THE HIGHWAY WHICH IS PART OF THE EUROPEAN ROUTE E-75, AND THE EUROPEAN CORRIDOR VII ON THE HUNGARIAN-SERBIAN-ROMANIAN BORDER, AND CLOSE TO CROATIA ON THE HUNGARIAN-SERBIAN-ROMANIAN BORDER, AND CLOSE TO CROATIA DISTANCES FROM OTHER WHOLESALE MARKETS: BUDAPEST 160 KM, BELGRADE 230 KM, TIMISOARA 120 KM, OSIJEK 180 KM DISTANCES FROM OTHER WHOLESALE MARKETS: BUDAPEST 160 KM, BELGRADE 230 KM, TIMISOARA 120 KM, OSIJEK 180 KM

DOROZSMA WM - FEATURES OWNER: THE MUNICIPALITY OF SZEGED OWNER: THE MUNICIPALITY OF SZEGED AN ASSEMBLY MARKET, IN THE MIDDLE OF THE MAIN VEGETABLE GROWING AREA AN ASSEMBLY MARKET, IN THE MIDDLE OF THE MAIN VEGETABLE GROWING AREA THE TYPICAL TRANSACTION: GROWERS SELLING TO WHOLESALERS THE TYPICAL TRANSACTION: GROWERS SELLING TO WHOLESALERS SHARE OF PRODUCERS IN TOTAL SALES: 85% (BUDAPEST WM: 40%) SHARE OF PRODUCERS IN TOTAL SALES: 85% (BUDAPEST WM: 40%) ANNUAL SALES VOLUME: 300 THOUSAND TONS (BUDAPEST WM: 400 THOUSAND TONS) ANNUAL SALES VOLUME: 300 THOUSAND TONS (BUDAPEST WM: 400 THOUSAND TONS) A STRONG SUMMER SEASON (MAY-SEPT), A STRONG SUMMER SEASON (MAY-SEPT), AND A WEAKER WINTER SEASON

BUYERS FROM ROMANIA VERY IMPORTANT FOR THE MARKET: THEIR VERY IMPORTANT FOR THE MARKET: THEIR SHARE IN TOTAL PURCHASES: 60% IN VOLUME, 45% IN VALUE MOST BUYERS DRIVING FROM 100 TO 150 KM DISTANCES, BUT A FEW FROM 600 TO 800 KM MOST BUYERS DRIVING FROM 100 TO 150 KM DISTANCES, BUT A FEW FROM 600 TO 800 KM THEY ARE PRICE-ORIENTED BUYERS THEY ARE PRICE-ORIENTED BUYERS

MARKET FACILITIES A TRADITIONAL OPEN-AIR MARKET, A TRADITIONAL OPEN-AIR MARKET, WITH FAIRLY SIMPLE FACILITIES TOTAL AREA: 8,4 HECTARES TOTAL AREA: 8,4 HECTARES 16 STORING UNITS OF 100 TO 200 M2, 16 STORING UNITS OF 100 TO 200 M2, RENTED BY WHOLESALERS

ADVANTAGES OFFERED BY DOROZSMA WM FOR BUYERS MODERATE PRICE LEVEL MODERATE PRICE LEVEL BROAD ASSORTMENT BROAD ASSORTMENT FRESHNESS OF PRODUCE FRESHNESS OF PRODUCE GOOD QUALITY GOOD QUALITY

COMPARISON OF WM PRICE LEVELS AUGUST 2012; DOROZSMA = 100 BUDAPEST: FRUITS 133, VEGETABLES 155 BUDAPEST: FRUITS 133, VEGETABLES 155 BELGRADE: FRUITS 111, VEGETABLES 162 BELGRADE: FRUITS 111, VEGETABLES 162 OSIJEK: FRUITS 174, VEGETABLES 181 OSIJEK: FRUITS 174, VEGETABLES 181

PRODUCER BACKGROUND 7000 GROWERS SUPPLYING THE MARKET, 7000 GROWERS SUPPLYING THE MARKET, OF WHICH 2500 FROM WITHIN 25 KM DISTANCE MAINLY SMALL PRODUCERS, MAINLY SMALL PRODUCERS, ARRIVING WITH 1 TO 1.5 TONS OF PRODUCE F+V PRODUCTION TRENDS: HUNGARY DECLINING, DOROZSMA-REGION INCREASING F+V PRODUCTION TRENDS: HUNGARY DECLINING, DOROZSMA-REGION INCREASING A SELECTION PROCESS: LESS BUT BIGGER AND STRONGER PRODUCERS; AVERAGE PRODUCTION PER FARM IN THE REGION: A SELECTION PROCESS: LESS BUT BIGGER AND STRONGER PRODUCERS; AVERAGE PRODUCTION PER FARM IN THE REGION: 2000: 18 TONS FOR VEGS, 5 TONS FOR FRUITS 2011: 54 TONS FOR VEGS, 10 TONS FOR FRUITS

BREAKDOWN OF SALES IN DOROZSMA PRODUCERS TO RETAILERS IN THE REGION PRODUCERS TO RETAILERS IN THE REGION (15% OF TOTAL SALES) PRODUCERS TO DOMESTIC WHOLESALERS (10%) PRODUCERS TO DOMESTIC WHOLESALERS (10%) PRODUCERS TO WHOLESALERS PRODUCERS TO WHOLESALERS FROM ROMANIA (60%) WHOLESALERS TO DOMESTIC WHOLESALERS AND RETAILERS (TROPICAL FRUITS; 15%) WHOLESALERS TO DOMESTIC WHOLESALERS AND RETAILERS (TROPICAL FRUITS; 15%)

OPPORTUNITIES IN INTERNATIONAL TRADE - COMPLEMENTARITY SELF-SUFFICIENCY RATIOS, FRUITS AND VEGS: HUNGARY 150% HUNGARY 150% SERBIA 105% SERBIA 105% ROMANIA 90% ROMANIA 90% CROATIA 70% CROATIA 70%

OBSTACLES TO INTERNATIONAL TRADE STILL HIGH IMPORT TARIFS IN 2012: CROATIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 43%, ONIONS 41%, PEPPERS 31%; APPLES 37%, WATERMELONS 65% CROATIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 43%, ONIONS 41%, PEPPERS 31%; APPLES 37%, WATERMELONS 65% HUNGARIAN TARIFS FOR IMPORTS FROM SERBIA: APPLES 33%, PEACHES 29%, PLUMS 20% HUNGARIAN TARIFS FOR IMPORTS FROM SERBIA: APPLES 33%, PEACHES 29%, PLUMS 20% SERBIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 24% SERBIAN TARIFS FOR IMPORTS FROM HUNGARY: TOMATOES 24%

GOOD OPPORTUNITIES OPENING IN DOROZSMA WITH THE DEMOLITION OF IMPORT PROTECTION FOR CROATIAN BUYERS FOR CROATIAN BUYERS FOR SERBIAN SELLERS (FRUITS, ESP. BERRIES) FOR SERBIAN SELLERS (FRUITS, ESP. BERRIES) FOR SERBIAN BUYERS (VEGETABLES) FOR SERBIAN BUYERS (VEGETABLES) 2012: SELLERS FROM 1 COUNTRY, BUYERS FROM 2 COUNTRIES 2020: SELLERS FROM 2 COUNTRIES, BUYERS FROM 4 COUNTRIES?

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