COST meeting Zagreb, 25th February 2016
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1 COST 1104 Sustainable production of high-quality cherries for the European market COST meeting Zagreb, 25th February 2016 Mario Njavro University of Zagreb Faculty of Agriculture Department of Management and Rural Entrepreneurship
2 Sustainable production of high-quality cherries for the European market Objectives Development of strategies to safeguard European cherry production Adaptation of cherry cultivation to climate change Promotion of sustainable agriculture Promotion of high-quality fruits for European consumers
3 Working Group 4 Conduct an economic assessment of the European cherry sector Identify major economic constraints for cherry producers and consumers Provide information and transfer knowledge to end-users Identify novel market niches or opportunities for the cherry sector
4 WG 4; meetings and dissemniation Pitesti, Romania Bordeaux, France Crete, Greece Njavro. M Managing Value Chains in Cherry Production, Freskon (International trade show for fruit and vegetables), International Cherry Congress, Thessaloniki, Greece, April 2015
5 Zagreb meeting: European cherries: competitiveness, markets and rural development (ovo je prijedlog). Goal of the meeting is discussion of the cherry production systems around EU (farms, cooperatives, agribusiness), competitiveness, management and marketing aspects, cherry value chain development, R&D and technology transfer. Topics: Production systems and business efficiency Marketing of cherries EU CAP and national agricultural policies for fruit, namely cherry sector Value chain analysis (processing, storing, logistics, wholesale and retail structure) R&D
6 Cherry market Global trends in cherry production, prices and trade Economics of chery production Value chain analysis approach Opportunities for small fruit producers- unlock the market!
7 FFV supply chain was estimated at more than 120 billion Euro p.a. with approx. 550,000 employees and 1.4 million farm holdings Innovations in production and post harvest technology (packaging, grading ) High value products Consumer behavior Livelihoods and employment, increased incomes Power of retail chains Small farms to huge commercial enterprises with large holdings of greenhouse and field crops and extensive orchards. Supply chains
8 Fruit production-world Source: FAO ,60 Area of production ,
9 Production-cherries , , , ,00 Cherries Cherries, sour Area, ha Average Source: FAO ,00 0,00 Africa Americas Asia Europe Oceania World ,74 Area, World, ha Source: FAO World - Cherries World - Cherries, sour ,20
10 Yield Cherries , , ,00 Yield, hg/ha Average Source: FAO , , ,00 Cherries Cherries, sour , ,00 0,00 Africa Americas Asia Europe Oceania World Yield, World, ha Source: FAO Cherries Cherries, sour World
11 Romania Netherlands Turkey Germany (until Belgium Denmark Greece Poland France European Union Italy Hungary Spain Norway Czech Republic Luxembourg United Kingdom Slovakia Cyprus Portugal Croatia Bulgaria Sweden Latvia Estonia Lithuania Production, EU 90,00 80,00 70,00 60,00 50,00 40,00 30,00 20,00 10,00 0,00 Area, 1000 ha Average Source: Eurostat Yield, 100 kg/ha Source: Eurostat
12 Trade World Cherries - Export Value Cherries - Export Value Cherries - Import Value Export and import values, USD Average Source: FAO 0 Export Value Import Value Export Value Import Value Cherries Cherries, sour Europe World
13 Producer Prices Greece Italy Poland Serbia Spain Turkey Source: FAO Unit: USD/t
14 Prices- selling channels 3,5 3 2,5 2 1,5 1 0, WS RS Farm gate Wholesale (WS), city markets (RS) and farm gate cherry price in Croatia, in Euros Source: Croatian Bureau of Statistics and Market Information System in Agriculture
15 Price It is not [only about] annual averages! weekly average Wholesale (weekly) prices in Croatia, in Euros Source: Market Information System in Agriculture
16 Farm Economics-Gross Margin France Bulgaria Slovenia Croatia Yield , , , ,00 Price 2,20 1,02 2,00 0,97 Other revenues 153,39 669,00 286,18 Total revenues , , , ,18 Variable costs , , , ,55 GROSS MARGIN 2.909, , , ,63 Cost price 1,96 0,39 1,52 0, , , , , ,00 France Bulgaria Croatia Slovenia 0,00 Total revenues Variable costs GROSS MARGIN
17 Challenges for Cherry producers and fruit farmers Competitiveness? product development or quality strategy a cost reduction / market penetration or market development strategy a (foreign) investment strategy (mainly for market penetration) a value redistribution strategy
18 Opportunities for Cherry producers Value chain management: partners, trust, transparency, and decisionmaking; Strategies for product differentiation, branding, and regional and local identity, PDO and PGO! Short value chains and tourism Development of clusters Post harvest and processing, Quality control Risk Management (Climate change, Crop Insurance)
19 Book- light version 1. Introduction Social, political, technological and economic market drivers in fruit (cherry) production 2. Cherry production and market (sweet and sour) World production (area, production and yield per country) Trade: export and import Prices and value of production Trends in consumption 3. Socio-economics characteristics of cherry production Characteristics of cherry farms in EU (farm size, demography, employment...) Cherry economics- theoretical background + few gross margin budgets collected on the Cost project. 4. CAP and fruit (cherry) production within CAP. 5. Conclusions
20 THANK YOU FOR YOUR ATTENTION! QUESTIONS?
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