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    Supply Chain Analysis of Fresh Fruit and Vegetables in Germany
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    Abstract:
    With a population of 82.5 million, the German market is the largest in the EU and therefore of special interest for the trade partners. Despite an unsatisfying economic development in the last years (lowest GDP growth in the EU and rising unemployment, see Table 9 in the annex) Germany is still a very attractive market with well funded consumers. Although agriculture has a small and declining contribution to the country?s gross domestic product, in the wider definition of the agribusiness, it is still one of the most important sectors with regard to turnover and employment. Taking consumers? expenditure for food as a proxy for the total turnover of the agribusiness yields a figure of 240 billion – in 2003, nearly as much as the turnover of the car industry in Germany. In total, 4.5 million people are employed in the agribusiness, which is 11.6% of Germany?s total labour force. Among agricultural markets, the market of fruit and vegetables is of special interest for the trade with Mediterranean countries and also of special importance for the food industry and the food consumption. In 2003 consumers? expenditure for fresh fruit and vegetables were more than 10 billion ?. The processing industry of fruit and vegetables generated another 6.5 billion – turnover, demonstrating the importance of fruit and vegetables in Germany. Bearing in mind that the self sufficiency ratios for fruit and vegetables in Germany are low (13% respectively 50%), the extent of market opportunities for the Mediterranean countries become obvious. Against this background it is the objective of this report to analyse the supply chain of fresh fruit and vegetables in Germany. In the second chapter the current market situation is briefly presented with regard to production, consumption and trade in Germany. Other aspects covered in this chapter are the demographic structure in Germany, important consumer trends and food quality issues. The third chapter is devoted in depth to the analysis of the supply chains for both fruit and vegetables. In this chapter the different actors and market channels are described with regard to their task and importance in the supply chain. In the fourth chapter the overall institutional structure is analysed. After the conclusions in the fifth chapter extensive tables and figures can be found in the annex.
    Keywords:
    Agribusiness
    Consumption
    The paper describes how the Slovenian accession to European Union (EU) influenced the conditions on vegetable market in Slovenia. Slovenia remains the net importer of fresh vegetables. Annually, it imports larger quantities of vegetables than there are produced by agricultural holdings. The supply balance sheet for vegetables is the basis of an analysis of vegetable consumption on the level of entire country and allows the comparison with other countries. Data have shown that the degree of self-sufficiency varies a lot between years due to weather conditions. Although the conditions for vegetable growing in Slovenia are favourable, domestic production is too low to meet the domestic consumption. Many investigations have also shown that Slovenian people consume too small amounts of vegetables. This statement is supported by the supply balance sheet for vegetables. The human consumption per capita in Slovenia is gradually increasing, but it is still low in comparison with the EU countries.
    Accession
    Citations (0)
    The article examines the results of the impact of the COVID-19 pandemic on the global economy and the economy of the Russian Federation at the end of 2020. The quarantine measures introduced by the countries continue to negatively affect the economic situation in the world and the economies of individual countries. There is an acute shortage of seasonal workers in the agricultural sector of the countries of the world. The introduction of restrictions on the export of goods reduced the volume of imports. In Russia, the growth rate of imports from non-CIS countries has decreased. In January 2021, compared to January 2020, imports for food products and raw materials for their production decreased by 4.2%, and for vegetables – by 11.5%. According to the Federal Customs Service, the export of vegetables increased 3 times in terms of physical volumes and only 11% in terms of value. The growth in the physical volumes of export of products of the agro-industrial complex of the Russian Federation did not lead to a corresponding increase in revenue. The prices for vegetables imported into the country were 2.5-3.4 times higher than the prices for exported ones. Despite some difficulties, losses in this area due to the pandemic were minimal. The gross harvest of vegetables in the country as a whole amounted to 13.8 million tons, which is 1.7% below the level of 2019. At the same time, the gross harvest of vegetables in open ground decreased by 3.1%, vegetables in protected ground increased by 6.6%. Difficulties encountered in implementation. During the crisis period due to the COVID-19 pandemic, the demand for vegetables fell by 30%. Consumers, in an effort to improve their immunity, began to buy more environmentally friendly and healthy products, including vegetables. The demand for organic products has grown by 15-20%. To accelerate the economic recovery, it was necessary to take additional measures on the part of states to support producers and consumers, restore purchasing power and help businesses, expand access to credit resources, stimulate investment activity, and reduce the tax burden on businesses and the population. In Russia, financial support for the main measures of state policy in the field of the agro-industrial complex is carried out within the framework of the implementation of the State Program for the Development of Agriculture and the regulation of markets for agricultural products, raw materials and food.
    Pandemic
    Economic shortage
    Food consumption in Asia is projected to increase significantly toward 2050, with consumption patterns shifting from traditional diets oriented around starchy staples to more varied diets with larger quantities of higher-value and higher-protein foods. Although food production in Asia is also expected to increase, it will not be able to meet the growth in Asian consumption of many food products. In Japan and the Republic of Korea, growth in food consumption is projected to be limited through to 2050 because of projected declining populations and modest future income growth. The most significant rise in food demand is expected to occur in China toward 2050. The rise in food consumption in China will be characterised by significantly higher demand by urban consumers for high-value foods such as dairy products, beef, sheep and goat meat, fruit and vegetables. For rural consumers in China, growth in consumption of high-value commodities is also projected, but the increases on average are expected to be smaller than from urban households. India is one of the largest consumers and producers of grain in Asia and has a self-sufficiency policy. By 2050, India is projected to become a significant net importer of fruit, vegetables and dairy products. For the ASEAN (Association of SE Asian Nations) member states as a whole, imports of wheat, beef and dairy products are projected to rise toward 2050. Vegetable and fruit consumption in the ASEAN region is projected to nearly double by 2050. Australia needs to remain competitive to meet the opportunities provided by greater Asian demand for food. Apart from the role governments will play in reducing market barriers, contributions from the private sector will also be important. Strong working relationships with supermarkets and hypermarkets in Asia will facilitate food exports.
    Consumption
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    India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing. The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.
    Rupee
    Tamil
    Marketing channel
    Consumption
    Citations (47)
    The contribution deals with the evaluation of balance indicators development in the fruit and vegetable sector in last nine years in the European Union and in the last decade in Slovakia. In the European Union average areas and production were decreased, vive versa, production intensity was increased. The same situation was for fruit orchards. In the vegetable sector all indicators were decreased (areas, production and yield). In the Slovak Republic it was grown less fruit and vegetable than it was necessary for covering of consumption. Absence of production was replaced by import. In the analysed period, its volume was increased and it was resulted in an increased negative trade balance. The unfavourable situation was affected also by inadequate location of domestic production at the market and by low competitiveness as compared to foreign producers. As to fruit and vegetable growing, it flows from the analyse, that the producers organized in producer and marketing organizations reach best results. Positively can be evaluated an increase of fruit production in fruit orchards and consequently its higher share on the total fruits supply.
    Slovak
    Consumption
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    In Russia where the major volumes of vegetables are traditionally produced by household farms, the fruit and vegetable business started developing quite recently. 2009-2010 were favourable for farm producers: market prices for vegetables were relatively high, investing in the construction of vegetable storages began. 2011 was a year of good vegetable crop in Russia. The preliminary data for 2012 indicate the lowering of gross output of vegetables but they are still above the average figures for the 5 recent years. After the accession to WTO imports of vegetables and fruit will be growing.
    Citations (0)
    India is the second largest producer of fruits and vegetables in the world after China. Since the 1980s, the international trade in fruits and vegetables has expanded rapidly. The number of commodities as well as the number of varieties produced and traded have increased manifold during the past 25 years. There is an overall increase in the demand for fruits and vegetables for consumption both in the fresh and the processed form. Also there is a wide diversification in production pattern globally. Income in this sector is increasing which is indeed driving the supply. In spite of being one of the largest producers of fruits and vegetables in the world, the export competitiveness among the Indian producers remains low. But with new marketing initiatives, the post-harvest losses and the wastage due to poor infrastructure facilities, such as storage and transportation, have been reduced to a considerable extent. Yet a lot needs to be done in this sector. In an effort to overcome some of the problems associated with this sector, the case study of the successful SAFAL Market is presented in the paper. The study has observed a shift in cropping pattern in favour of horticulture in India in the past one-and-a-half decades. Analysis of the economic feasibility of this shift away from cereals to fruits and vegetable shows that its economically viable and beneficial to shift towards horticulture production, but this diversification needs to be planned in a systematic manner. Certain strategies and policies are also suggested in this regards. The study confirms the changing consumption patterns and diversification, along with the outlook for the next 15-20 years in the light of shortage of supply to increased domestic demand. The major exports from India are mango, grapes, orange, apple, banana, mosambi, onion, potato, tomato and pumpkins. The major share of Indias exports of fresh fruits and vegetables go to Bangladesh, Nepal, UAE, UK and Malaysia. The supply constraints, yield gaps and huge logistic costs affect our competitive and comparative advantage in world trade market. In this study the nominal protection coefficient and revealed comparative advantage are computed to check on the existing status. Study also identifies the potential states for the fruits and vegetables, for which India is globally competitive and has comparative advantage in production. These states should be targeted for enhancing the export potential of the country. The potential competing countries are also identified. Lessons from other developing countries focus on the growth of the horticulture sector through increased participation of small and marginal farmers in an organized manner and farmers being trained with entrepreneurial skills.
    Consumption
    Citations (26)
    ountry–of–origin labeling (COOL) provisions for fresh fruits and vegetables were included in the Farm Secu-rity and Rural Investment Act of 2002 (hereafter referred to as the 2002 Farm Bill) and would have required retailers to inform consumers of the country of origin for covered products in Oct. 2003. That law included fruits and veg-etables as well as beef, pork and lamb, fish, and peanuts. Covered commodities were to be exclusively produced and processed in the United States to be deemed of U.S. origin. The USDA issued voluntary guidelines for COOL on Oc-tober 11, 2002 as a step in the progression toward the man-datory program prescribed by the 2002 Farm Bill. After a great deal of debate over the costs and benefits of mandato-ry COOL, the FY 2004 Consolidated Appropriations Act delayed implementation of COOL until Sept. 30, 2006 for all covered commodities except wild and farm–raised fish and shellfish. It was delayed again in 2006 for another two years with passage of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Ap-propriations Act of 2006.The fruit and vegetable industry is an important com-ponent of the U.S. agricultural industry with cash farm receipts estimated at $40.5 billion in 2008 for vegetables, fruits and nuts. This represents 22.5% of all U.S. cash farm receipts for crops. Fruits and vegetables are grown through-out the United States with the largest acreages found in California and Florida. More than half the volume of all fresh fruits and vegetables reaches the consumers via super-markets and other retail establishments. Although per cap-ita consumption of fruits and vegetables has increased sig-nificantly over the last two decades, the average American still does not eat the 5—10 servings per day recommended by the Centers for Disease Control and Prevention. It is expected that consumption of fruits and vegetables will continue to grow.Because of the seasonality of domestic produce supplies, and a seeming preference for fresh produce among many households, imports are an important source of supply for many fruits and vegetables. Mexico, Canada, China and Costa Rica are the leading sources of imported fruits and vegetables. The major vegetable imports are fresh tomatoes, melons, onions and sweet peppers. Imports of fresh veg-etables totaled more than $6.3 billion in 2005. The major fruit imports are bananas, grapes, pineapples, berries and fresh citrus. Imports of fresh fruits totaled more than $7.8 billion in 2005. Because of the important role of imports, which do not directly compete with domestic supplies dur-ing some seasons, there are some unique aspects to COOL for this industry. Specifically, concerns about produce trade initiated some of the first state–based country of origin programs in the United States, and current debates on the U.S. program focus on some of the same economic issues.
    Cash crop
    Investment
    Citations (6)
    The need to improve the quality of the diet of Scottish consumers has increased the interest and efforts to understand the determinants of fruit and vegetables, as they may help to prevent a range of diet-related health problems. The purpose of this paper is to analyze the demand for fresh fruit in Scotland, with particular emphasis on the contribution of Mediterranean areas. A further motivation comes from depreciation of the GB Pound with respect to the Euro and the US Dollar following the UK's decision to exit the European Union (Brexit). This is particularly important in the case of fruit because about 80% of the fruit consumed in the United Kingdom is of foreign origin and therefore depreciation of the currency may increase the price of imported fruit. The demand for fruit was modelled as a two-stage budget to include fruit origin. The results indicate that the demand for fresh fruit is sensitive to changes in prices and the pass-through of GBP depreciation may impact negatively on the Scottish demand for fruit and the country's nutrition goals.
    Brexit
    Depreciation (economics)
    Liberian dollar
    Consumer Demand
    The U.S. fruit and vegetable industry accounts for nearly a third of U.S. crop cash receipts and a fifth of U.S. agricultural exports. A variety of challenges face this complex and diverse industry in both domestic and international markets, ranging from immigration reform and its effect on labor availability to international competitiveness. The national debate on diet and health frequently focuses on the nutritional role of fruit and vegetables, and a continued emphasis on the benefits of eating produce may provide opportunities to the industry. In the domestic market, Americans are eating more fruit and vegetables than they did 20 years ago, but consumption remains below recommended levels. In terms of per capita consumption expressed on a fresh-weight basis, the top five vegetables are potatoes, tomatoes, lettuce, sweet corn, and onions while the top five fruit include oranges, grapes (including wine grapes), apples, bananas, and pineapples. The industry also faces a variety of trade-related issues, including competition with imports. During 2002-04, imports accounted for 21 percent of domestic consumption of all fresh and processed fruit and vegetables, up from 16 percent during 1992-94.
    Cash crop
    Consumption
    Citations (31)