market research – eastern europe

..........

Market Research – Eastern Europe

. . . . . . . . . .Tropical fruit in Poland

Proexport – Colombia Equipo de Trabajo

Dirección de Información Comercial

Jorge Luis Gutiérrez – Director

Fernando Piñeros – Subdirector Proyectos Especiales

Bibiana Gutiérrez – Analista de Inteligencia de Mercados

[email protected]

www.proexport.gov.co

www.proexport.com.co

Calle 28 No. 13ª – 15, Piso 35

Tel: (571) 5600100

Fax: (571) 5600118

Bogotá, Colombia

GRUPO CONSULTOR EUNITE, Nederland

Todos los derechos reservados. Ni la totalidad ni parte de este documento puede reproducirse o transmitirse por ningún procedimiento electrónico o mecánico, incluyendo fotocopias, impresión o grabación.

Estimado Empresario:

La búsqueda de acuerdos comerciales que nos permitan como país ampliar los escenarios y mercados de exportación, nos reta como PROEXPORT a apoyar en forma directa a los empresarios en sus iniciativas exportadoras, ofreciendo servicios dentro de un modelo del gestión comercial y compartiendo un conocimiento más detallado sobre los mercados y sus oportunidades.

Para lograr lo anterior, PROEXPORT, con inversión de recursos propios y de cooperación técnica no-reembolsables del BID-FOMIN, emprendió una labor de recolección y análisis de información de primera mano en los principales mercados de interés a través de la contratación de consultorías internacionales especializadas en investigaciones de mercados. Los resultados de estos trabajos permitieron analizar y conocer la dinámica comercial de los sectores en los cuales existe un potencial para nuestras exportaciones, así como detallar aspectos de competitividad, información valiosa para la orientación de las iniciativas exportadoras de nuestros empresarios.

La información que contiene este estudio, sobre la dinámica del sector, la demanda y consumo, la situación competitiva de los productos, estructura y características de la comercialización y logística de acceso al mercado, es una contribución e invitación a profundizar y conocer aspectos que nos permitan avanzar en la realización de negocios en escenarios internacionales.

Cordialmente,

Luis Guillermo Plata P. Presidente PROEXPORT

Contents

1. Introduction ...............................................................................................................................71.1 Introduction...........................................................................................................71.2 Methodology.........................................................................................................7

2. General sector data ..................................................................................................................92.1 Current market developments within the specified sector ....................................92.2 Sector’s participation in total GDP......................................................................102.3 Sector’s participation in employment..................................................................122.4 Developments in production...............................................................................142.5 Sales-, import- and export activities ...................................................................172.6 Available data about the sub-sectors .................................................................26

3. Market composition and characteristics ..............................................................................293.1 Market size .........................................................................................................293.2 Analysis of the apparent consumption dynamics ...............................................303.3 Governmental plans and programs ....................................................................313.4 Demand in the market ........................................................................................323.5 Recommendations .............................................................................................33

4. Competition analysis..............................................................................................................354.1 Main trademarks available in the market............................................................354.2 Features of the commercialized products...........................................................354.3 Marketing and advertising strategies..................................................................354.4 Quality of the product .........................................................................................394.5 Expansion plans .................................................................................................394.6 Pricing strategy...................................................................................................404.7 Segmentation of enterprises by sectors and its categorization ..........................454.8 Recommendations .............................................................................................51

5. Distribution channels .............................................................................................................535.1 Distribution channels ..........................................................................................535.2 Recommendations .............................................................................................60

6.1 Preferential Tariffs ..............................................................................................616.2 Tariffs imposed by major competitors.................................................................626.3 Norms of origin ...................................................................................................626.4 Barriers...............................................................................................................646.5 Licences .............................................................................................................646.6 Quotas................................................................................................................686.7 Approvals & Technical Standards ......................................................................696.9 Packaging...........................................................................................................746.10 Required documentation for import ....................................................................786.11 Import modalities or regimes involved in the process.........................................866.12 Requirements for import of samples and accompanied luggage .......................896.13 Website links to rules and regulations................................................................896.14 Flow chart of the process and related costs .......................................................906.15 Recommendations .............................................................................................91

Proexport Colombia 5

6. Commercial Access Guide .........................................................................................................61

Market Researches in Eastern Europe

7. Physical Access......................................................................................................................937.1 Available transportation infrastructure................................................................937.2 Identification of ports, airports, roads – border passes – railways, waterways.1017.3 Description of status, operation, security, costs, distances, transportation arrangements and intercommunity customs.................................................................1027.4 Identification of other handling and distribution infrastructure ..........................1037.5 Identification of carriers that transport goods imported from Colombia ............1067.6 International Freight or Transportation Costs ...................................................1077.7 Physical distribution services address book.....................................................112

8. Recommendations to the exporter .....................................................................................115Annexes..........................................................................................................................................117

Annex 1: Foodprices on wholesale markets.................................................................117Annex 2: Certificate of origin form A.............................................................................125Annex 3: Plant health movement document.................................................................126Annex 4: Phytosanitary certificate ................................................................................127Annex 5: DV1 Form......................................................................................................129Annex 6: Single Administrative Document (SAD).........................................................131Annex 7: Photo documentation ....................................................................................132Annex 8: Companies Directories ..................................................................................141

6 Proexport Colombia

1. Introduction

1.1 Introduction

This report aims at providing in-depth information on the fruit sector in Poland. The report has been composed for PROEXPORT Colombia to provide Colombian exporters with a practical guidebook on how to approach the Polish market. The report will focus on all relevant aspects regarding market entry and has been drawn up in accordance with the Terms of Reference. The main objective of the report is to offer detailed information about the Polish market to Colombian entrepreneurs, gathering and analyzing market information about the fruit sector development within the market as well as market access, product requirements, legal affairs and product competitiveness, that is, useful information in order to identify the market’s general trends and opportunities.

1.2 Methodology

Information for the research was gathered by means of official information sources in Poland, such as the Ministry of Agriculture and Rural Development, Ministry of Finance, Ministry of Infrastructure, Central Statistical Office, State Plant Heath and Seed Inspection Service, Agricultural Market Agency, Foreign Trade Database,internet sites of branch organizations, internet sites of companies present on the market, field research as well as information from our contacts.

The data presented here has attempted to create a very diverse picture of the Polish fruit market. One must be aware that the fruit sector is not one of the most important branches of Polish agriculture. Official sources such as the Central Statistical Office or Ministry of Finance provide limited and general information concerning this market. Therefore there is no information on share of fruit sector in total GDP and employment.

More detailed information is presented by professional reports, like for example the analysis prepared by Boss Rolnictwo or Poradnik Handlowca periodicals. However, this information is usually based on estimations and knowledge of professionals active in the fruit market. As for branch organizations, they mainly represent local producers and have an exclusive knowledge of the Polish fruit.

Where possible, this report combines data from both nationwide institutions and professional organizations, sometimes showing the difference in figures given by these two sources.



However, it must be underlined that available data is very limited and there are no official reports and in-depth analysis devoted to fruit. This stems from the fact that tropical fruit is not very popular on the Polish market. The biggest effort was made to provide as much information as possible, however, some requested information was neither possible to gather or estimate.

All numbers stated in the report are, where possible, in Euros or otherwise in PLN. On 17 October 2005 the exchange rate was 1 EUR = 3, 90211 PLN.


2. General sector data

2.1 Current market developments within the specified sector

The structure of Polish economy has changed dramatically during post-communist transformation. This relates also to the agro-food chain. During the socialist period, 75% of land was owned by private persons, which was a unique phenomenon in the Soviet block. State control over the farm sector had been imposed with several measures: price control, establishing area limits to agricultural holdings, collectivization (turning private property into state property and cooperative property) of upstream and downstream sectors, administrative rationing of industrial inputs for farms etc. Wholesale and retail trade of agro-food products was controlled by state and cooperative companies, subordinated to the central planning bodies.

Before the beginning of the transformation process in the early nineties, the private agricultural sector consisted for 76% of farmland, while 23% of farmland was in the so-called socialized sector (19% in state farm sector and about 4% in the cooperative sector).

Due to the liberalization process, traditionally export-oriented large state companies lost their dominant position. The fall of eastern markets in the former Soviet Union created the necessity to look for new foreign partners. In addition, growing home demand for processed fruit and vegetables at the beginning of the nineties allowed for an emergence of many small processing plants. Processed fruit and vegetable production increased in Poland since the beginning of the nineties. The most dynamic development was observed since the mid nineties due to increased foreign investment (both as a result of green field investment and due to privatization of state companies).

During the transition period, distribution networks at the fruit market could be characterized as unorganized, with a dispersed structure of purchasers. In the nineties, the number of purchasers has increased and in general the way of selling has changed. New kinds of purchasers, like super- and hypermarket chains and new processing companies, entered the market, which has changed conditions substantially. Fruit exchanges stopped to play an important role, while platforms of market chains took over their tasks. Also, producers started to sell directly to supermarket chains and to fruit processing companies.

During the first years of the transformation period, the most important problems of producers, processing companies and distribution network on the fruit market were low level of stability on the market and inefficient institutional environment. For example, foreign companies investing in Polish fruit and vegetable-processing



sector are Eckes Granini, Gerber, Heinz, Bank of America, and Enterprise Investors.

Fruit and vegetable production is an important branch of agricultural sector in Poland. It amounts to around 12% of total agricultural production for sale. Arable land under fruit and vegetable growing covers around 640 thousand ha (4% of total farmland in Poland) including orchards of 270 thousand ha (around 1.6% of total farmland). Apple production is dominating. It is conducted on over 50% of orchards‘ area. Apple crops reach 1.6-2.4 million tons per year. In July 2004 strikes of fruit producers were organized by Polish Fruit-Growers Association (Zwi zekSadowników Rzeczypospolitej Polskiej). Because of a sharp decrease of fruit prices (mostly cherries and berries) farmers decided to organize protests and they blocked the entrance ways to several fruit processing companies in many regions in Poland. The Association gained support of the Senate and organized a meeting with the Minister of Agriculture and representatives of fruit-processing companies. They agreed to price negotiations, which let to a set level of minimum prices for various kinds of fruit

Table 2.1.1 State of Polish agriculture in comparison with the EU and other European countries

Item Poland Spain EU ItalyArable land (in million ha) 18,2 25,4 131,6 15,4

Employment in agriculture (in million) 2,7 10 6,8 1,1Share of agriculture in GDP (in %) 2,9 3,3 2,0 2,6

Average farm (in ha) 9,3 21,2 18,4 6,4Production of fruit and vegetables (in million tons) 8 21,5 85,0 24,5Source: www.polskiesadownictwo.pl

2.2 Sector’s participation in total GDP The total gross domestic production (GDP) of Poland is about 36 % of that of all the CC-12 together and would amount to 3.6 % of EU-27.1 The GDP per capita reaches 38.7 % of the EU-15 average. Data on Poland’s GDP are presented in the tables below.

Table 2.2.1 GDP in Poland 2002-2004 (current prices million €) 2002 2003 2004GDP 195278.1 203730.6 220914.5

Source: Central Statistical Office (GUS)

1 EU-25 including Romania and Bulgaria


Tropical fruit in Poland

Table 2.2.2 Dynamic of GDP growth in Poland 2002-2004 (annual average prices from previous year)

2002 2003 2004GDP 101,4 103,8 105,3Source: Central Statistical Office (GUS)

Table 2.2.3 Gross and Market Agricultural output in million EUR Specification 1995 2000 2002 2003Crop output 2138.9 3135.3 3365.8 3652.3

Fruit 331.1 459.2 576.3 810.5Source: Central Statistical Office (GUS)

Table 2.2.4 the role of the agricultural sectorUtilized Gross Value Added of Agricultural Food

Agricultural Agriculture(1) Employment(1) Expenditure000 ha %of million Share of 000 % of % of total

(2) total EUR Agriculture Employ-area in GDP (%) ment

Year 2000 1998 Poland 18,220 58.3 4,965 d 2.9* 2,698 18.8 36.9CC-12 58,808 54.1 18,552* 4.5 8,950 * 22.0 39.1EU-15 131,619 40.6 167,197 2.0* 6,767 4.3 17.4 (3)

EU-27 190,427 44.0 185,748 2.2 15,717 7.9 19.5Poland in % 31 26 30Poland in % 13 3.0 39

Poland in 9.6 2.7 17(1): Including Forestry, Hunting and Fishing sector (2): Utilized Agricultural Area (3) = 1997 * = estimate

Sources: EUROSTAT, DG ECFIN, OECD, FAOSTAT, DG AGRI G2

The fruit sector as such is not detailed in national accounts. The only information on general participation in GDP of “agricultural, hunting and forestry” sector is given by the statistical office. The share of this sector in total GDP amounted to€ 5.3 billion in 2002 and € 5.2 billion in 2003. However the major contribution to these values was brought by the cultivation of crops, fruit and vegetables.



Chart 2.2.5

Share of main branches in generation of gross value added in Polish economy in 2002

agriculture 3%

construction 7%

manufacturing 24%

trade 21%transport & communication

8%

other branches 37%

Source: Przemiany 2004, p. 13

During the transition period, the share of agriculture in gross domestic product decreased from 14.5% in 1988 to 3.9% in 2002. In the same time, food processing and trade have been developing quickly. Food industry belongs to the biggest in the Polish economy. Its share in nation‘s gross production in 2002 reached 6.7%. Food industry (including beverages and tobacco) is the largest branch of Polish manufacturing sector with a share of almost 20%.

Agri-food is an important industrial sector in Poland. Production is rapidly increasing and investment in the sector has doubled in 1993-95. The food industry features Poland's biggest companies; ninety agri-food enterprises are amongst the top 500 Polish companies, most in public ownership. The privatization program is due to be completed within the next three years. The sector is one of the most dynamic of Polish industry, attracting considerable interest through FDI. The Polish food industry in 1998 accounted for 4.1 % of GDP and 14.8 % of manufacturing GVA.

2.3 Sector’s participation in employment

More than 2.6 million people work in agriculture, fishery and forestry, corresponding to 18.8 % of total civilian employment (EU-15 4.3 %). This is a decline of the share of employment in agriculture and forestry from 22.1 % in 1996 to 18.8 % in 2000. After Romania (4.8 million) and before Italy (1.1 million) Poland will have the second highest employment in agriculture in the EU-27 and will contribute to 17.2 % of the agricultural labor force in the EU-27.



Table 2.3.1 Employed persons as of 31 December (in thus.)

Employed persons as of 31 December 2000 2002 2003Total 15488,8 14923,7 14802

Agriculture 4245,9 4229,4 4209,2Private farms in agriculture 4073,6 4073,6 4073,6


Table 2.3.2 Employment in agriculture and in the other sectors according to type of employment: structures compared (2003)

% %Numbers(1000) paid workers self-

employed full-time

men women men women men women men womenAgriculture EU-25

Poland65261426

35561059

25,18,9

10,03,2

45,054,4

20,033,5

57,146,8

25,430,1

Industry EU-25Poland

415192810

126871089

66,665,2

21,826,6

10,37,1

1,21,1

74,569,4

19,026,0

Services EU-25Poland

599573183

674554090

38,734,9

48,250,9

8,58,9

4,55,3

43,040,7

35,950,3

%part-time

men women7,6

10,69,9

12,52,12,7

4,41,9

4,03,0

17,15,9

Source: European Commission, Eurostat (Community labor force survey)

Table 2.3.3 Employment in agriculture and in the other sectors according to age (in %): structures compared (2003)

younger than 25

25-34 35-44 45-54 55-64

men women men women men women men women men women

Agriculture EU-25Poland

5,65,9

2,02,9

11,911,1

5,27,6

16,414,1

8,911,4

15,615,7

10,011,8

10,46,8

6,35,4

Industry EU-25Poland

8,47,4

2,52,5

19,722,0

6,58,5

22,120,6

6,87,8

18,018,2

5,68,3

7,93,7

1,80,8

Services EU-25Poland

4,74,2

6,15,2

11,912,9

13,415,5

13,111,6

15,216,1

11,210,8

12,915,9

5,53,7

5,03,1

65 and over men women4,83,8

2,93,5



0,50,2

0,10,1

0,70,6

0,50,5

Source: European Commission, Eurostat (Community labor force survey)

Similarly, sector of fruit as such is not detailed in employment accounts. The Polish food industry accounted for 5.3 % of national employment and 15.4 % of employment in the manufacturing sector.

Table 2.3.4 Structure of the Polish fruit and vegetables sector (% of food industry total)

1997 Shares % Total growth 1993-97 %Output Employment Output (Euro) Employment

Fruit & vegetables

5.6 8.3 58.5 12.8

Source: European Commission, Eurostat

2.4 Developments in production Poland has an extensive domestic production of fruit and vegetables. However, the temperate - and often unstable - climate of northern Europe limits the production of various fruits and vegetables. Production in greenhouses partly compensates for the restrictive climatic conditions, but, for bananas and a wide range of exotics, there exists a big and developing market, which cannot, or only insufficiently, be supplied by domestic production. However, greenhouses are not able to fulfill the total fruit demand as they are not determined for growing consumption fruits. Greenhouses can mainly be found in botanic gardens in schools and universities, where they are usually used for science and study. Therefore, they are hardly used for producing tropical fruits for consumption. Virtually all these fruits are imported. The Victoria Greenhouse at the Jagiellonski University in Krakow is the largest greenhouse in Poland that grows citrus fruits. This greenhouse is a botanic garden as well, open for visitors. Considering this, greenhouses are not expected to develop into competitors for Colombian exporters on the longer term.

The Polish market is partly supplied in citrus fruit and bananas by the internal EU market. European producers are competitors for Colombian producers, as internal EU trade is not limited.

Fruit growing and fruit processing are important branches of agricultural and food sectors in Poland. The fruit production constitutes 6,3% of the total value of agricultural production. However, the fruit market can be characterized by the high level of dispersion and competition (both between producers, brokers and processing companies), as well as a highly fluctuating supply and prices. It also has quite a low level of organization.



The high level of dispersion production, processing and distribution sectors of fruit causes that cooperation between producers, brokers and fruit-processing companies is characterized by high transaction costs (like costs of negotiations, gathering information and agreements‘ monitoring). Therefore, trade is very often time-consuming, unforeseeable and ineffective.

In the years 1992-2000, around 40% of total fresh fruit production in Poland was delivered directly for consumption, around 40% was processed and 10% was exported. The remaining 10% of total fresh fruit production was spoiled or used for non-consumption purposes. However, the share of processed fruit is increasing. In 2001, it reached 50% of total fresh fruit production and currently it amounts to around 60% of total fruit crops. Currently, the production of fruit is very dispersed. Small farms constitute the majority of fruit-growing farms while most of orchards‘ land belongs to larger farms (having over 5 ha).

The number of fruit-growing farms diminished by 20% in comparison to a former Agricultural Census in 1996 (from around 400 thousand). At the same time the average size of an orchard increased from 0,60 ha in 1996 to 0,86 ha in 2002. According to forecasts, till 2010, the number of fruit-growing farms will diminish further (and will reach around 250 thousand farms) with an increasing total area under fruit production and increasing average area of fruit-growing farms.

Chart 2.4.1

Share of farms having an orchard according to farm area (in % of total number of farms with an orchard)

27,5%

15,6%

9,2%13,3%

18,8%

7,9%3,4% 2,5% 1,2% 0,2% 0,4%

0,0%5,0%

10,0%15,0%20,0%25,0%30,0%

0-1ha

1-2 2-3 3-5 5-10 10-15 15-20 20-30 30-50 50-100

over100ha

Source: on basis of PSR 2002, GUS, Warszawa

The majority of land under fruit production belongs to the private sector. In 2000 96.8% of the orchards‘ area belonged to private owners and 3.2% to the state sector. Cooperatives operated 0.6% of orchards‘ area, foreign owners - 0.1%, individual farmers - 92.6%.



The total EU production of fresh fruit amounted to almost 65 million tons in 2004.2

The leading EU producers of fruit are, by far, Italy (17.1 million tons) and Spain (16.9 million tons). The ten new EU member states have a competitive advantage in several sub sectors, like berries in Poland. In 2004, the new member countries produced a total amount of almost 6.3 million tons of fruit, of which Poland accounted more than the half. Important fruit species produced within the region are apples, grapes, sour cherries and plums. The data about the amount of the fruit production presented below concerns fruit produced in Poland that is competitive to tropical fruit in this aspect that it is preferred by Polish customers, firstly, due to its taste, secondly, to its cheaper prices.

Table 2.4.2 Area, yield and harvested production of fruits in Poland (excluding citrus) Area Yield

1000 ha % TAV 100 kg/ha % TAV 2000 2001 2002 2003 2003/2002 2000 2001 2002 2003 2003/2002

All fruit ApplesPears

Peaches Apricots

-1651810-

402166187-

3761681442

3641591542

-3,1-5,41,1-8,8

-14,1

-884519-

851464221-

81129643622

91152533329

12,218,5-17,1-8,531,5

Harvested production 1000 tons % TAV

2000 2001 2002 2003 2003/2002 All fruit ApplesPears

Peaches Apricots

-1 450

8220-

3 406 2 434

7716-

3 044 2 168

92154

3 308 2 428

77125

8,712,0-16,2-16,513,0

Source: European Commission (Eurostat)

In 2003, fruit crops in Poland were 9,6% up from the previous year and totaled 3,3 million tons. The increase concerned the production of apples, cherries, berries, plums and sweet cherries, while a decline was observed in the case of pears, raspberries, gooseberries and strawberries. Strawberry crops declined to the lowest level since the last 20 years. The total production of fruit and vegetable products in the 2003/04 season totaled 2,7 million tons, which was 4% up from the previous season. A growth was observed in the case of all products, with the highest rate in the production of frozen vegetables and concentrated soft fruit juices. Sale prices of the majority of products declined, which resulted in narrowing processing margins.

Overall, the production of fruit and vegetable products in the 2004/05 season amounted to about 3 million tons, which was 5% up from the previous season. The increase concerned all products except of concentrated apple juice. Sales prices slightly increased as compared to 2003/04. A decline took place in sales 2 FAO, 2004



prices of frozen fruits. In that season, Poland strengthened its position of the largest producer of frozen fruits and concentrated fruits juices and third largest (behind Belgium and Spain) producer of frozen vegetables.

The Polish fruit production is dominated by apples (on average 70% in the years 2002-04), strawberries (5%), currants (6%), cherries (6%) and plums (4%). In 2002 the fruit production took place in approximately 513 thousand farms, including 12% farms larger than 1 ha. The number of farms with large production is estimated at 40-50 thousand. The highest share in the production has voivodships3: lubelskie, mazowieckie, ódzkie and wi tokrzyskie (about 70% of crops).

Table 2.4.3 Fruit crops in Poland in the years 2002-2004 Item 2002 2003 2004Fruit 3018 3309 3521

including: Apples 2168 2428 2522Pears 92 77 87Plums 103 110 133

Cherries 173 191 202Sweet cherries 41 44 48Strawberries 153 26 186Raspberries 45 131 57

Currants 158 43 194Gooseberries 22 192 20

Source: GUS

The fruit crops fluctuate strongly in particular years. This results in very changeable supply and periods of surpluses and shortages on the domestic market. The crops’ fluctuations and economic changes on the markets cause a large variability of prices. In the recent 10 years the purchase prices of fruit in 5 particular years grew more than inflation. Moreover, in some periods a nominal decrease in prices took place.

2.5 Sales-, import- and export activities SalesAs shown by the table below the sales of fruit in Poland have taken a rise in the past few years, with an increase of almost € 120 million over a period of eight years.

Table 2.5.1 Procurement of agricultural products (current prices in mln €) Specification 1995 2000 2002 2003

Crop products 1063.3 1872.2 1882.3 2083.5Fruit 93.1 175.7 191.7 304.5


3 Poland is territorially divided into 16 voivodships – regions.



The chart below shows the Polish sales of fruit distinguished by sub sector.

Chart 2.5.2 Sales of fruits in Poland

Structure of the saled production 2003/2004 (by the value)

Juices and drinking beverages

37%

Jam, marmalade11%

Frozen fruit28%

Other2%

Condensed Juices22%

Source: “Fruit and vegetable market” (“Rynek owoców i warzyw”), IERiG (Instytut Ekonomiki Rolnictwa I Gospodarki ywno ciowej - Institute of Agricultural and Food Economics), November 2004

Foreign trade In 2004-2005, incomes from the prepared fruit and fresh fruit export decreased in comparison with the last season by 15% (app. 608 mln Euro (15% agri- food exports)). Imports increased by 3% to app. 632 mln Euro. The turnover balance was at the minus in comparison with the plus at 103 millions Euro balance of the last season 2003/2004. The table below shows Poland’s foreign trade balance, including fruit.

Table 2.5.3 Poland’s foreign trade, including fruit (in million Euros)

Specification 2002 2003 2004 2002/2003

2003/2004

2004/2005

Total export 618 694,4 614 649,3 718,9 608

Fruit export 114 133,9 122 115,5 141,4 130Total import 641 619,7 628 610,6 615,9 632

Fresh fruit import 506,5 488,9 495 482,7 479,5 495Total turnover balance -23 74,7 -14 38,7 103 -24

Fresh fruit turnover balance -392,5 -355 -373 -367,2 -338,1 -365Source: “Fruit and vegetable market”, IERiG , November 2004



Polish import of fruit The Polish fruit import is dominated (app. 60%) by southern fruit, mainly citruses and bananas. An important role plays also concentrated fruit juices, used in domestic juice production. Moreover, there is a high share of processed southern fruit (6% of total Polish imports) – mainly peaches, pineapples and peanuts. The share of other fresh and processed fruit in import does not exceed 2%. Import is dominated by products from other climatic zones (80%), mainly pineapples, peaches and bananas. The structure of imports is not changing significantly. However, recently the share of bananas and concentrated juices in import has dropped visibly, whereas the share of frozen fruit increased. The table below shows the imports of both fresh and processed fruits into Poland. Unfortunately, no exact details are available about the imports of tropical (processed) fruits.

Table 2.5.3 Import of fresh and processed fruit to Poland

Import (in thousand tons) Products Average in the

years 1991-95 Average in the

years 1996-2000 2000 2001 2002

Fresh fruits citruses bananas apples

575,0260,6184,124,1

911,9343,2292,023,6

974,5402,4284,816,3

982,1399,6269,821,6

935,1397,0240,6

6,4Processed fruits

frozen fruit concentrated

juices dried fruit

canned fruit

46,41,116,31,521,6

118,05,753,53,650,1

136,89,662,04,555,2

164,710,666,95,764,7

137,213,454,25,160,6

Source: www.ho.haslo.pl

Im- and exports of frozen fruit The market of frozen fruit is considered to be one of the most quickly developing food sectors. The frozen fruit sector grows wider and wider. It is estimated that 54% of the Poles are already consumers of frozen products. However, their popularity differs per season. Frozen fruits are mainly bought from autumn to spring, whereas in summer fresh fruit is preferred. As tropical fruits are still considered luxury products, they are sometimes bought frozen in order to use small parts of the fruits, for example for garnish desserts. Most frozen fruits available on the market are soft fruits like berries, as well as tropical fruits, like pineapples and kiwi’s. The main factor influencing the purchase of frozen fruit and vegetables, apart from their type, is quality, price and availability in retail. Frozen products are mostly sold in small local shops and supermarkets, which are located close to living places of consumers. This is caused by the fact that consumers do not want to unfreeze the products. Shopping in hypermarkets take longer time as they are further located, so the products can unfreeze and their consumption after refreezing can be dangerous (the products are not always consumed at once). The



countries that Poland is importing frozen fruit from are Ukraine, Germany, Greece, China, Belarus, Hungary, Netherlands, Russia, Spain, Morocco, and Chile.

Im- and exports of processed fruits and juices The segments of sweet processed fruit constitute mainly jams, but also confitures, preserves, marmalades and roasted fruit. In volume, jams generate nearly 70% of the market, whereas marmalades, preserves and confitures make about 10% each.) The market is dominated by jams made of single fruit, but there are also mixes of fruit, especially of forest fruit, such as blackberries, raspberries, wild strawberries and berries. Jams are bought by 64,5 % of adult Poles, they usually eat jams less than once a week (41%), once a week (21,9%) or twice a week (21,4%). The sales of jams is very seasonable, the demand decreases in summer and autumn. In the year 2004/2005 the value of the fruit and processed fruit import increased in comparison to previous years. Import of citrus fruit (the number one in the Polish import of fruit) increased from €198 to € 202 mln. Bigger imports resulted in higher expenses on the fruit import from € 23 to € 30 mln. Prices of grapefruits, watermelons and kiwifruit did not change a lot comparing with the last season. Total value of import of these fruit increased by about 2% to € 111 mln. Average prices of nuts import were lower, from € 2,1 to € 1,9 per kg. The imports of bananas decreased from 252 to 230 thousands tons. Because of the increased prices, bananas import expenses increased from € 91 to € 93 mln. The market of fruit and vegetable juices and drinks is now close to achieving its level of saturation. Currently, the highest rate of growth characterizes the sales of drinks manufactured on the basis of fruit juices, and carrot-and-fruit juices. Poland imports processed tropical fruits like banana, mango and pineapple for processing into juices. Processed fruits are also used for making ice-cream or for filling farinaceous products, like cakes.

Table 2.5.4 Processed fruit import (in million Euro)

Specification 2002 2003 2004 Bananas 113,6 97,7 94,0Oranges 62,6 55,7 58,0Citrons 53,3 57,3 56,0

Kiwifruits 14,5 16,7 17,0Nectarines 16,6 14,1 12,0

Nuts 33,0 29,8 31,0Other fruit 15,4 15,3 17,0

Prepared pineapples 7,9 8,7 9,0Prepared peaches 15,9 15,4 15,0

Source: Statistical yearbook of the foreign trade 2004

Leaders among suppliers are Ecuador, Panama, Colombia (bananas), Brazil (concentrated orange juice), Israel (concentrated citrus juices), Thailand (processed pineapples) and Turkey (citruses, grapes, nuts).



In table 2.5.5 below, the import value and quantity of imports of products grouped under CN 0810 is given. This category includes fresh strawberries, raspberries, blackberries, black, white or red currants, gooseberries and other edible fruits, such as tamarinds, cashew apples, lychees, jackfruit, sapodillo plums, passion fruit, carambola and pitahaya. Unfortunately, more detailed information, distinguishing in specific kinds of tropical fruits, is not available. Several investigations with customs offices showed that most tropical fruits are categorized under the category “others”. Due to the small import amounts and relatively low popularity, no statistical data are available for each type of tropical fruits seperately. Therefore, data are given for the tropical fruit sector as a whole.

Table 2.5.5 Import value and quantity of 0810 into Poland 2004 Measures Import Value

(1000 EURO) Import Qty (1000 kg)

PartnersArgentina 23.380 22Bahamas 0.660 0.9

Brazil 0.680 0.6Chile 216.190 244

Colombia 8.990 1.4Costa Rica 0.100 0.2

Egypt 13.050 6.9India 7.630 4.1

Indonesia 0.520 0.3Israel 22.750 12.6

Madagascar 7.060 5.2Malaysia 13.980 4.3Mexico 0.170 0

Morocco 27.510 25.2New Zealand 266.390 365

Peru 1.140 2South Africa 8.500 6.6

Thailand 21.890 8.4Tunesia 1.800 0.9Turkey 57.490 64Ukraine 1 705.310 1 475.5

United States 1.080 0.8Vietnam 4.840 3.1Cyprus 24.610 46.1

Czech Republic 55.240 38.4



Measures Import Value(1000 EURO)

Import Qty (1000 kg)

Partners France 420.770 537.4

Germany 767.610 2 698.6Greece 3 129.220 2 779.8 Hungary 103.820 257.7

Italy 12 024.550 20 250.199 Netherlands 2 147.440 2 995.3

Spain 2 387.670 2 091.8 Source: DG Trade

Table 2.5.6 below shows the main country providers of the most popular imported (tropical) fruits to the EU. Such detailed data about particular types of fruit imported to Poland are not available. However, the size of imports to Poland can be estimated on the basis of the EU imports and the fact that Poles consume half of fruit consumed in Western Europe and have lower incomes. Therefore in Poland, imports of fruit are lower than in Western European countries, especially imports of tropical fruit, which is less popular. Imports of tropical fruit into Poland are specified in table 2.5.7.

Table 2.5.6 Origin of imported fruits in the EU (in %)

Fruit Main country providers and share in imports Bananas Ecuador (17%) Costa Rica (15%) Colombia (14 %) Oranges Spain (53%) South Africa (9%) Morocco (5%) Lemons Spain (46%) Argentina (25%) Brazil (4%)

Grapefruits USA (20%) South Africa (17%) The Netherlands (13%)

Melons Spain (45 %) Brazil (16 %) Costa Rica (6 %) Pineapples Costa Rica (29 %) Ivory Coast (8 %) Ghana (8 %) Avocados South Africa (19

%)Spain (16 %) Mexico (13 %)

Guavas Brazil (34%) Peru (6%) South Africa (6 %) Mangos Ivory Coast (5%) n/a n/aDates Tunisia (41 %) Israel (19%) Algeria (10%)

Tamarinds Madagascar (40%) South Africa (23 %)

France (11 %)

Lychees Thailand (6 %) n/a n/aPapayas Brazil (53 %) India (5 %) Pakistan (4 %)

Passion fruit Malaysia 23 %) Kenya (13 %) Colombia (5 %) Source: DG Trade



Table 2.5.7 Imports of (tropical) fruits into Poland in 2003 (tons)Fruits Import

quantity Melons, watermelons and papayas, fresh 19.707

Apricots, cherries, peaches, plums and sloes, fresh 26.929 Frozen fruit 17.395

Coconuts, brazil nuts and cashew nuts, fresh or dried 6.416Bananas, fresh or dried 89.686

Dates, figs, pineapples, avocados, mangos fresh or dried 5.062Citrus fruit, fresh or dried 18.143

Source: Statistical yearbook of the foreign trade 2004

This table shows that bananas are by far the most popular tropical fruits in Poland. Second ranking are apricots, peaches and cherries. Real tropical fruits like pineapples, avocados, mangos and coconuts are not as popular and well-known as for example bananas, but the trend is they become more common every year, so their share in imports will probably raise as well. Statistical data over 2004 are unfortunately not available.

Export of fruit Poland is mainly an exporter of frozen fruit and concentrated juices. Among frozen fruits, the most important ones are strawberries and cherries.

Table 2.5.8 Value and structure of fruit export Export

Average in the years 1996-2000 2001 2002 Products

million USD % million USD % million USD %Fresh fruits

apples berries

102,132,137,1

16,85,36,1

79,127,645,4

12,64,47,3

107,850,533,5

13,96,54,3

Processed fruits

frozen fruit juices

apple juice jams

marmalades dried fruit

371,5218,1125,698,021,93,8

61,135,820,616,13,60,6

379,8182,8160,0110,231,34,8

60,729,225,617,65,00,8

475,7229,6193,9128,644,46,8

61,429,625,016,65,70,9


An important role in export is played by apples, berries and soft canned fruit. Raw products (apples, soft fruit, plums, frozen fruit, concentrated juices, and canned fruit) for processing companies amounted to 75%. The share of fresh fruit among products for direct consumption amounted to 5% (mainly apples). Those apples are usually of quite a low quality and used as dessert apples.



Chart 2.5.9

Export of fresh and processed fruits to the new EU member countries in 2003

0 20 40 60

canned fruits

jams

juices

frozen fruits

berries

plums

cherries

apples

in thousand tons

80


The larger purchaser of fresh and processed fruit from Poland is Germany, where half of the Polish export of processed fruit is exported to.

Table 2.5.10 Directions of Polish export of fresh and processed fruit and vegetables

Value of export 1999 2000Importers

million € % million € % In total 475.8 100,0 630.2 100,0

EUGermany

The Netherlands

360.4192.453.6

75,840,411,3

427.2236.749.2

67,837,67,8

CEFTA The Czech Republic

Slovakia

24.913.83.8

5,22,90,8

53.828.48.9

8,54,51,4

Middle and Eastern Europe Lithuania, Latvia, Estonia

RussiaUkraine

63.78.128.58.9

13,41,76,01,9

97.832.850.75.7

15,55,28,10,9

OtherUSA

CanadaSwitzerland and Norway

26.76.62.88.5

5,61,40,61,8

51.415.48.88.1

8,22,51,41,3




Prices of Polish export fruit products do not grow and fluctuate strongly (mainly prices of fresh fruit) in particular years as a result of supply changes in Poland and on European markets. In consequence, the incomes from sales abroad also change. In the years 1995-2001 the income amounted to € 497-537 million annually. Exceptionally good effects in 2002 – € 630 million – stemmed from beneficial prices of cooled and processed soft fruit.

Where it concerns the fruits categorized under CN 0810, Poland mainly exports them to the Netherlands, Germany and Austria. However this exclusively concerns strawberries, gooseberries etc. and not the ‘real’ tropical fruit such as pitahayas, which are not grown in Poland, due to the unsuitable climate.

Table 2.5.11 Export value and quantity of 0810 from Poland 2004

Measures Export Value(1000 EURO)

Export Qty (1000 kg)

PartnersBelarus 1 061.150 3 802 Kuwait 29.060 24

Moldova ,Republic of 54.840 83.2Norway 109.240 52.3

Russian Federation 2 215.610 4 012.1 Ukraine 668.640 844.3Austria 6 059.660 10 727 Belgium 3 806.060 6 644.5

Czech Republic 1 251.010 2 330 Estonia 235.270 426.8France 250.280 337.8

Germany 16 691.330 23 887.5 Hungary 277.350 683.7

Italy 348.270 165.5Latvia 430.610 594.7

Lithuania 295.720 624.1Netherlands 8 741.260 14 004.9

Slovakia 35.590 105.9Sweden 1 244.930 744.2

United Kingdom 4 477.230 1 329 Source: DG Trade



2.6 Available data about the sub-sectors The assortment of imported fresh fruit and vegetables can be classified according to the following table.

Table 2.6.1 Classification of fresh fruit imported

FRESH FRUITA Temperate B Tropical and subtropical

(incl. exotics)• apples / pears • bananas

• grapes • citrus fruit • deciduous fruit (peaches, nectarines, • pineapples

apricots, cherries, etc.) • avocados

• berries (strawberries, raspberries, • mangos blueberries, etc.) • lychees

• melons / water melons • papayas • others: passion fruits, carambolas,

durian, dates, figs, etc. Source: EU Market Survey 2005, CBI – Center for Promotion of Imports from Developing Countries

As mentioned before, unfortunately, no statistical data for each type of tropical fruits seperately are available. Due to the small import amounts and relatively low popularity in Poland, most tropical fruits (other than the more common citrus fruits, bananas and pineapples) are categorized under the category “others”, so no separate trade statistics for tropical fruits like pitahaya, sapodillo etc. is available.

Tropical and exotic fruits The temperate fruit assortment offered to the European consumers consists of products that are not, or only occasionally, supplied from outside Europe. For more details, please refer to paragraph 2.5.6. The main imported product group within this category consists of citrus fruit. The citrus assortment on the European Union market consists of numerous varieties of oranges, mandarins, grapefruit and lemons. The most important orange varieties are Valencia’s, Navels and Salustianas, for which there is a great demand. As for the mandarin varieties, the Clementines are particularly popular. Many new citrus fruit varieties have been introduced, with great appreciation for the so-called "easy-peelers". In the case of grapefruit, the red and pink varieties are the most popular in the increasing market for the consumption of grapefruit. The exotics assortment consists of an extremely varied number of products, like mangos, papayas, pineapples and avocados, which have become reasonably well known on the European market during the past twenty years. These products originate in tropical and sub-tropical countries where they are considered as ordinary products. On the European market, they



are, however, regarded as special products because of their - seen through European eyes - exotic character. For information about the countries of origin of these fruits, please refer to paragraph 2.5.

Off-season products The assortment of imported off-season products consists of the fruits that are shipped mostly from overseas countries to the European markets during the European winter period. Apples and pears are the main fruit varieties of the off-season products. During the European spring/summer period large quantities of citrus fruit are imported into the European market from the southern hemisphere. Therefore, from a European point of view, citrus fruit also belongs to the off-season assortment. For products that can be kept well, like apples, the seasons of the northern and southern hemisphere more or less follow each other, or there is partly an overlap of the respective supply periods. It has to be noted, however, that overlapping periods occur more frequently than before. This is due to improved growing techniques and improvement in the storage life of the product. This means that the off-season period, in which the EU is highly dependent on suppliers from outside Europe, is becoming shorter. However, the demand in this period is increasing.

Table 2.6.2. Off-season fruit

When are products off-season in the European Union? product March -

AprilMay-July

August -October

November -February

Avocado X XCarambola X X X

Citron X XGuava and X X

Melon X XOrange XPapaya X X

Passion fruits X XPepino X X X

Pineapple X X XPitahaya X X XTamarind X X X

Source: EU Market Survey 2005, CBI – Center for Promotion of Imports from Developing Countries

It can be concluded that the opportunities for fruit producers in third countries on the European market can mainly be found in products that are hardly grown anywhere in Europe, i.e. tropical and subtropical products (exotics) and the so-called off-season products.



2.7 Recommendations

Import demand for both fresh and processed fruit and nut products, such as ready-to-serve and ultra-fresh fruits, canned products and juices, is expected to continue to increase substantially. Therefore, exporters have a significant opportunity to expand their market shares in the increasingly competitive international markets, provided they can meet a number of critical requirements of importers, processors, retailers and consumers. These include the regular supply of consistently high-quality products, strict compliance with the phyto-sanitary regulations imposed by the governments of importing countries, and the competitiveness of their products in terms of the quality/price ratio.

Certain exporters could also specialize in supplying tropical fruit pulps and concentrates to niche markets, which are expected to have a sustained growth. These markets import deep-frozen tropical fruits (pineapple, mango, papaya, etc.), that are used as ingredients in the manufacture of baby food, bakery products, milk products and fruit salads.

Generally speaking, Colombian exporters can make use of the growing fruit import through ensuring high quality products and regular supplies. There is large potential demand for tropical fruit, which is not grown in Europe. Exporters should concentrate on fresh fruit and canned fruit, and acquire contacts with importers of these types of fruit, as well as with plants producing fruit pulps and concentrates, such as juice and yoghurt producers, who buy already processed fruit.


3. Market composition and characteristics

3.1 Market size The international tropical fruit market is expected to grow 3-5% annually the upcoming years. The European Union will continue to be the largest market, accounting for more than 39% of the volume of world trade, followed by the United States, which will be the most important destination for fruit from Southern- America and the Caribbean.

World import trade in fruit and nut products averaged € 35.6 billion per year between 1995 and 1999, out of which 71% consisted of fresh and dried products, 15% were preserved and prepared products and 14% fruit juices. The world production of tropical fruits in 1999 was estimated at 57.5 million tons, a 5.5% increase over 1998. The worlds' largest markets are the EU and US. Asian markets are also big importers of fruits. Major importing countries in Asia are Hong Kong, Japan, Malaysia etc.

Fresh and dried fruits sold in the world market can be segmented according to their type -tropical and temperate. The largest market by value is fresh temperate fruit. The major products are oranges, other citrus, apples and grapes. In the tropical fruit market the major products are bananas followed by smaller amounts of pineapples, mangos, avocados and papayas. The Polish market for fresh tropical and temperate fruits is growing rapidly driven by the Poles' interest in healthy eating throughout the year. There is a year-round demand for tropical and exotic fruits such as bananas, pineapple, mangos, avocados, baby bananas, lychees, rambutan, etc., and off-season (November to March) demand for temperate products such as citrus, melons, berries, grapes and stone fruits. Customers buy occasionally tropical fruits on the markets, in the hypermarkets or they only eat them in restaurants.

Demand prospects for tropical fruits are favorable over the medium term. The global average annual demand growth for the five fruits, which represent three-quarters of the world output of fresh tropical fruits and nearly 90% of the global exports - namely bananas, pineapples, mangos, avocados and papayas - is expected to range from 3% to 4.5%.

In Poland, a similar growth in demand can be seen, although the Polish demand is still below the level of Western-European countries. Furthermore, Poland’s imports consist for the large majority of bananas. The popularity of pineapples, mangos, avocados and papayas is, although increasing, still low in comparison with Western European countries.

The bulk of the increase in fresh pineapple and avocado import demand would be in the developed markets. Imports of mango and papaya are expected to grow in both developed and developing countries (in particular in countries lacking available land resources, such as Singapore, Hong Kong, China and the Middle East). The growth in



import demand for other tropical fruits, such as mangosteen, rambutan, lychee or guava, will continue to be driven mainly by Asian developing countries.

The main problem exporters can expect to face in the tropical fruits market is that there are already large numbers of developing country suppliers who have successfully penetrated the importing markets. Countries such as Brazil, Mexico, Philippines and Malaysia dominate the market for major tropical fruits. They have also improved their packaging and processing industries, that gives them an added advantage over the LDCs (low developed countries).

The Polish market for fresh temperate fruits is also on the increase. Improved preservation and transport by sea have enabled citrus fruits and apples to be transported economically world-wide. Apart from Southern American countries, also South Africa, Israel and New Zealand are major suppliers to the EU. These major markets are probably out of reach of the majority of the LDCs because they do not have the scale and transport infrastructure to compete. However, as proved by Zimbabwe, Kenya and other developing countries, there are attractive markets, out of season for air freighted export of strawberries, grape, stone fruits and melons in the EU and the USA. This is an opportunity that has already been exploited by LDCs such as Sudan and Zambia.

3.2 Analysis of the apparent consumption dynamics

The fruit consumption in Poland in 2005 was 56.0 kg/capita. Compared to 2000, the Polish fruit consumption has risen with 9.6%.

Table 3.2.1 Consumption of fruit in Poland in the years 1999-2005 per capita

Item 1999 2000 2001 2002 2003 2004 2005Fruit in

kg / year

53,7 51,1 57,7 56,7 54,5 55,0 56,0

Source: bulletin of Agricultural Market Agency

Apparent consumption dynamics of tropical fruit is presented below. The table specifies the price and amount of specific tropical fruits imported into Poland in 2004. Apparent consumption = production + import – export. Since there is no local produce of tropical fruit and therefore no export of the product to third countries, Poland’s apparent consumption is shown by amounts and prices of the tropical fruits’ import specified in table 3.2.2.

It shows that the actual quantities of tropical fruit entering Poland, and therefore its apparent consumption, are rather small. Very detailed statistics are therefore not available. As tropical fruits are only very recently becoming popular, the trade statistics over 2004 are the first statistics available.



Table 3.2.2 Amount and import price of imported fruits into Poland in 2004; apparent consumption

Fruit Amount PricePapaya (fresh or frozen) 92 360 kg € 153.388

Fresh passion fruit, carambola and pitahaya

54 724 kg € 174.880

Fresh tamarind, lychee and sapodillo

34.068 kg € 90.080

Source: Polish Customs Office

3.3 Governmental plans and programs In 1998 the expenditure on the fruit and vegetable sector amounted to 4% of the EU agricultural budget.

Chart 3.3.1

Role of fruit and vegetables' sector in creation of end agricultural Production of EU15 and its share in expenditures of the Brussels'

budget

18, 8% 18, 0%

9, 2% 6, 6%3, 0% 2, 0% 2, 0%3, 6%

8, 0%

43, 6%

13, 0%

2, 0%5, 1%3, 5%

15, 0%5, 2%

0, 0%5, 0%

10, 0%15, 0%20, 0%25, 0%30, 0%35, 0%40, 0%45, 0%50, 0%

fresh fruitand

vegetablesmilk beef cereals wine andmust sugarbeetrootmutton and

goatolive oil

share in production in % in 1998 share in expenditure in % in 1999

Source: www.polskiesadownictwo.pl

The growers of fruit and vegetables in Poland can use the same direct subsidies in the years 2004-2006, with the possibility of extension for further two years, as farmers from the other European Union member states. The subsidies will be paid according to the area of arable land owned by farms larger than 1 ha. In the EU, fruit and vegetables producers do not get direct subsidies. The basic regulation mechanism on the fruit market is that producers’ organizations get the total financial support, which they divide amongst individual producers.

In Poland there are also acts regulating the market of fresh fruit and vegetables, adjusting it to the solutions existing in the EU. These are:

Act on organization of the market of fruit and vegetables from 29th

November 2000 (Dz.U. nr 3, poz. 19); Act on Groups of Agricultural Producers and their Associations from 15th

September 2000 (Dz.U. nr 88, poz. 983).



As for the programs on the EU internal market, the level of concentration of production does not exceed 40%, therefore it is planned to raise this percentage in order to manage the markets effectively and increase the competitiveness of producers. In the recent years the funds for the fruit and vegetables’ sector that have not been used amounted to 25% of the total sector’s budget.

There are also promotional campaigns for fruit and vegetables, organized both by the EU and by the Polish health promotion institutions. They mention the importance of healthy food and show fruit as healthy products.

3.4 Demand in the market In 2004 an average Pole consumed over 55 kg of fresh and processed fruit. The preferred type of fruit is Polish fruit, which taste meets customers’ expectations. It is also the cheapest, which is very important on the price driven market. The highest demand in autumn and winter is for apples, in summer for strawberries, sweet cherries, cherries and berries. Citrus fruits are also very popular, as they are considered a good source of vitamins in winter, when Poles have a lack of domestic fruit. Bananas are also very popular in Poland. Other types of fruit, exotic and tropical ones, are not very popular. They are bought only by a small part of population and especially by those with higher incomes. Among those who buy tropical fruit, an individual person buys approximately one piece of tropical fruit per week or per month, which makes several to a dozen tropical fruit per year. Certain demand stems from hotels and restaurants, that prepare exotic drinks and desserts as well as from producers of canned fruit, juices and ice-cream. Mainly, these hotels and restaurants are in the upper segment of the market and are considered luxury hotels, most of them belong to international chains of hotels and restaurants and are located in the capital. (Contact) details of the most important hotels and restaurants using tropical fruits are given below.

Hotel Rialto Ul. Wilcza 73 Telephone: (0-22) 584-87-00 Warsaw

Hyatt Regency WarsawUl. Belwederska 23 Telephone: (0-22) 558-12-34 Warsaw

Le Royal Meridien Bristol Ul. Krakowskie Przedmie cie 42/44 Telephone: (0-22) 551-10-00 Warsaw

Radisson SAS Ul. Grzybowska 24 Telephone: (0-22) 321-88-88 Warsaw

The Westin Warsaw



Al. Jana Paw a II 21 Telephone: (0-22) 450-80-00 Warsaw

Hotel Marriott Al. Jerozolimskie 65/79 Telephone: (0-22) 630-63-06 Warsaw

The demand for tropical fruit is higher in December, as Poles tend to buy more exotic fruit for Christmas. At present, tropical fruit is not available in several hyper- and supermarket chains. Wholesalers also do not buy much tropical fruit, as they encounter problems selling it – they buy for example 20-50 boxes or half a pallet, but they sometimes sell only 10% of it.

Exotics and off-season products A remarkable increase can be seen in the consumption of exotic fruits and off-season products like mangos, papayas, passion fruit and avocados. Until the 1970s, there was hardly any consumption of exotics, though small quantities were imported to meet the demand of ethnic minority groups. The increase in ethnic minorities living in the EU is considered to be responsible for the initial increases in sales of all kinds of exotic and tropical fruits. Once the products were on the shelves, other groups became inclined to buy them. If trade in lesser-known exotic products is considered, marketing strategies should specifically take into account minorities familiar with these products.

In their search for products with more added value, some importers, like Chiquita Poland, Fresh World International Ltd and Tropicana sp. z o.o., are now promoting lesser-known exotics like kumquats, rambutan and mangosteen. More details about these importers are given in paragraphs 4.7 and 5.1. Complying with the demand for convenience, they provide the exotics in easily recognizable packages, containing small amounts and with practical product information. This makes it easier for European consumers to become familiar with these relatively new and unknown products. Supermarkets are increasingly interested in selling exotics in these standardized packages.

The production of some categories, for example bananas, is overwhelmingly in the hands of (large) multinational companies, like for example Chiquita. This means that exporters should seek market segments in which small amounts of the product can be traded and in which they are able to compete. In this sense, market opportunities in the EU for exporters lie in the production of tropical and subtropical products (exotics) which are hardly grown in Europe and off-season fruit.

3.5 Recommendations

A strong tendency towards concentration and consolidation can be noticed in the horticultural trade, both on the buyers’ and suppliers’ level. As a result, the demand



for consistent volumes and qualities of fresh produce increases, causing firms to introduce procurement methods that manage the supply chain more efficiently. Importers, trade fairs and increasingly the Internet are valuable sources for finding trading partners in the EU. Contact details of trade fair organizers are listed in this report.

Opportunities for developing country exporters could lie in the trade of fresh fruit and vegetables, in which developing countries play an important role as suppliers and in the trade of exotics and off-season fresh fruit and vegetables. If trade in lesser-known exotic products is considered, marketing strategies should specifically take into account ethnic minorities, living in the target market, who are familiar with these products. The organic food market could also be interesting for growers in developing countries, although it should be realized that certification can be a valuable and demanding process.

Although exporters to the EU are not yet obliged to have an HACCP (Hazard Analysis Critical Control Point) system and their system will not be subject to control by the food inspection service in the importing country, the adopting of an approved HACCP system, or working according to a similar principle of quality control, will be a very positive argument in export business. It should be noted, however, that as from 2006, developing country exporters will also be obliged to have HACCP system.

There are promising prospects for the fresh fruit market in Poland. The Polish average income has been increasing over the studied period. This has created a bigger disposable income that is being used for the purchase of goods that contribute to secondary needs, such as tropical fruit. The changing lifestyle of the Poles, such as paying more attention to health, has also boosted the demand for fruit.


4. Competition analysis

4.1 Main trademarks available in the market

Because of the type of product that is concerned in this paper, there is no particular trademark to be distinguished. The most recognized fruit producer that Polish exporters mention is Del Monte. The brand has been present on the Polish market for several years. Del Monte Foods Poland imports bananas, pineapples, melons, grapes and apples, as well as canned fruit (among others, tropical fruit: papaya, mango, lychee in syrup). The company is know from the fact that is has plantations all over the world, so it can provide fruit all years long, not being dependent on seasons. Another known brand is Outspan.

As for bananas, the ones that can be bought in Poland (and in most of Europe), come mainly from Ecuador. The Polish banana market is dominated by the brand Chiquita. The brand’s owner has bought out one of the largest fruit importers in Poland - the company Darex that has been a distributor of Chiquita in Poland.

Importers do not pay much attention to brands – they usually choose the cheapest products of good quality. As for wholesalers, they do not have much choice, as importers usually do not have several brands of one type of tropical fruit, due to their low popularity. Wholesalers usually cooperate with one or two importers and buy products from them. For tropical fruit these are small quantities: 20-50 boxes, half or one pallet. In total import of tropical fruit can be estimated at about one container for the whole country.

4.2 Features of the commercialized products Similarly to the situation with trademarks, fresh fruit is not sold in any particular packages. Importers and wholesalers usually buy it in pallets and cartons, whereas retail customers buy fruit in pieces (loose) or in baskets and nets (kiwifruits, mandarins etc). Tropical fruit is usually sold per piece. When products are sold loose, they usually have stickers with producers’ names on them. Photos of various types of fruit packaging are enclosed in the annexes.

4.3 Marketing and advertising strategies Advertising in magazines related to the fruit sector (or agricultural market in general) is a popular way of promoting this product. The table below presents magazines devoted to, among other products, the fruit market.



Table 4.3.1 Fruit and agricultural market – magazines

Name / WWW Address of editor’s office Contact details

PORADNIK ROLNICZYhttp://www.poradnik.net.pl/

ul. Londy ska 25 03-921 Warszawa

[email protected]

tel. (22) 672 73 79 fax (22) 672-73-79

AGROBAZAR Agencja Wydawniczo-

Reklamowaul. Wspólna 30

00-930 Warszawa

tel.623 22 02 623 25 59 623 12 18

fax 623 20 03

AGROPRZEMIANY ul. Dola skiego 2 00-215 Warszawa tel. (022) 635 80 09

AGRO SERWIS ul. wi tokrzyska 2000-002 WARSZAWA tel./fax (022) 827 24 01

AGROTRENDY Top Consulting ul. urawia 22

00-515 Warszawa

tel.: (+48 22) 438 93 80fax: (+48 22) 438 93 92

e-mail:[email protected]

BOSS-Rolnictwo ul. Aleje Jerozolimskie 87 00-001 Warszawa

tel. (022) 331 07 16 fax (022) 331 07 20

DZIA KOWIEC ul. Wspólna 30 00-930 Warszawa

tel. (022) 623 21 21 fax 629 55 88

FARMER pl. Starynkiewicza7/9 02-015 Warszawa

tel. (022) 629 05 70 fax 621 51 55

OBSERWATOR ul. Nowogrodzka 84/86 02-018 Warszawa

tel./fax (022) 621 74 19

OGRODNICTWOHORTPRESSSpó ka z o.o.

ul. Kopernika 34 00-336 WARSZAWA

tel.(022) 826 16 26 tel./fax 826 43 62

OGRODY Czerska 8/10 00-732Warszawa

tel.: 022 555 68 80 fax.:022 555 66 74

OWOCE, WARZYWA, KWIATY

HORTPRESSSpó ka z o.o.


tel.(022) 826 16 26 tel./fax 826 43 62

POLISH FOODMRIRW

ul. Wspólna 30 00-930 WARSZAWA

tel. (022) 623 20 68 623 11 75

fax (022) 623 15 00 PORADNIK

GOSPODARSKIul. Mickiewicza 33 60-837 POZNA

tel. (061) 847 60 01 wew.225

PRZEMYSSPO YWCZY;

PRZEGL DFERMENTACYJNY I

Sigma-Not Sp. z o.o. ul. Mazowiecka 12

00-950 Warszawa, skr. 1004

tel./faks: (0 22) 827 43 66, 826 80 16

e-mail: [email protected]



Name / WWW Address of editor’s office Contact detailsZBO OWO-WARZYWNY;

PRZEGL DGASTRONOMICZNY

TECHNIKA ROLNICZAHORTPRESSSpó ka z o.o.


tel. (022) 826 16 26 tel./fax (022) 826 43 62

TOP AGRAR POLSKA ul. Reymonta 9 60-952 POZNA

tel. (061) 861 65 11 tel./fax (061) 861 66 23

WIE I DORADZTWOMa opolskie Stowarzyszenie

Doradztwa Rolniczego ul. Czysta 21

31-121 KRAKÓW

tel. (012) 634 31 90 fax (012) 633 15 61

WIE I ROLNICTWOPAN

ul. niadeckich 8 00-656 WARSZAWA

tel. (022) 628 87 77

Source: Ministry of Agriculture and Rural Development

The five most popular magazines are shortly described below: 1) The magazine “Owoce, warzywa, kwiaty” provides professional information for

fruit, vegetable and flower producers. It is published in the whole country. 2) “Agrobazar” - a magazine about fruit, vegetables, flowers and trees published

monthly.3) “Przemys spo ywczy” (Food Industry) - A magazine with information about the

polish food industry, which shows economy, organization, marketing and management of Polish food market.

4) “Przegl d Fermentacyjny i Zbo owo-Warzywny” (Fermentation and Corn-Vegetable Review) - magazine published for the staff of beer, wine and juice producers, trade and services companies and vocational schools.

5) “Przegl d gastronomiczny” (Gastronomical Review) - the magazine is published for small, medium and big restaurants, bars, coffee shops, hotel restaurants, owners, directors and kitchen chefs.

Advertisements in the above mentioned magazines are directed mainly at importers and wholesalers of fruit. However, the important thing is to make tropical fruit popular among Polish consumers. This could be done through an importer or a representative of a Colombian exporter in Poland – advertisements could be placed in TV and in many various magazines directed at different customers’ groups: in news and politics’ magazines, in magazines about health, in magazines for women. Advertisements in such magazines could be in the form of sponsored articles promoting tropical fruit and stating, why their consumption is beneficial, healthy etc. In cooking magazines one could place sponsored receipts for exotic desserts and drinks. For example, Chiquita, which is at the moment strongly present on the Polish market and widely recognized by consumers, advertises in TV and in many magazines.



A form of promotion mentioned by some wholesalers was giving several free containers of tropical fruit to potential customers and organizing tasting promotions in hypermarkets, which is a very popular way of promoting food products in Poland. This way customers could get to know more of tropical fruit, its taste and characteristics. Internet advertising is also gaining popularity in Poland. Still more and more people have a computer and an Internet connection. Banners on websites or in communication programs are mostly directed at young people, who are ready to try new interesting products.

Participation in trade fairs and exhibitions is also a common way of promoting companies and their products. Trade fairs are also important meeting points for developing countries’ exporters and EU importers. A trade fair is a good opportunity for personal contact between business partners. A list of the biggest events related to the fruit market in Poland, are presented below.

International Agricultural Fair POLAGRA-FARM; 6 - 9 October 2005 atthe Pozna International Fair grounds; http://www.polagra-farm.pl//en; the largest agricultural fair not only in Poland, but also in Central and Eastern Europe. Last year’s edition grouped a total of almost 1300 exhibitors from 22 countries. The exhibition area covered 30 thousand m2 and to top it all, it was visited by nearly 85 thousand people. AGF Totaal – One of the biggest fruit and vegetable trade fairs in Europe.In November 2004 the first edition of the trade fairs AGF Totaal was held – AGF Totaal is a well-known and high classed Dutch International exposition of fruit and vegetable market.AGF Polska is a trade fair of the fruit and vegetable market with its beginning at production, food processing industry across transport and distribution to the sale of fresh and prepared fruit and its marketing, with case-sensitive technical services. 87 exhibitors from 11 countries participated in the trade fair: Poland (56%) and foreign countries (44%): Holland, Great Britain, Germany, France, Belgium, Spain, Brazil and Colombia. The trade fair was visited by approximately three thousand people. Main subjects of the trade fair were: fruit and vegetables, herbages and mushrooms, seeds and nuts, food processes, packaging and technical equipment and services for the sale outlets, freezing, plant maintenance, fertilizers, fresh and prepared fruit products, products, transportation, safe keeping.POLAGRA-FOOD - International Trade Fair for the Food Industry, tailoredfor companies working in the food processing industry. FRUIT LOGISTICA - International Trade in Berlin. Fruit Logistica is one of the biggest trade fairs in Europe, which was visited by 22000 specialists from 90 countries in 2004.ECOLIFE 2005 - XXI Targi Zdrowego ycia i ywno ci (XXI Health Life and Food Trade)HORTI EXPO - Mi dzynarodowe Targi Ogrodnictwa,



Rolnictwa i Sadownictwa (International Gardening, Agricultural and Fruit-growing Trade). Specification: flowers, trees, fruit, vegetables, packaging, ecology

ROLPOL 2005 - XI Targi Rolno-Przemys owe (XI Agro- Industrial Trade). Specification: tools and machines, fruit, vegetables, accessories

Polish companies also visit European trade fairs, especially those located close to Poland – for example, in Germany. Fruit trade fairs are organized in many European Union countries.

4.4 Quality of the product

Tropical fruit in Poland is still considered to be quite an exotic product. During the socialist area there was no tropical fruit available in Poland and therefore they are now slowly getting used to f.e. kiwis, pitahayas and mangos. All tropical fruits sold in Poland are quite colourful, ranging from yellow to red to purple. For information about the countries of origin of these tropical fruiits, please refer to paragraph 2.5.

PackagingPineapple 6-8-10-12 pieces / package Granadilla 18 pieces / package

Papaya 4 giant – 18 normal ones / package Passion fruit 2 kgs of fruit / package

Physalis 8 x 125 g / package Pitahaya (yellow) 10 pieces / package

Pitahaya (red) 12 pieces / package Mango 6 – 14 pieces / package

The fruits mentioned above are usually used as toppings for cakes, cocktails and dishes made of fruit. They are rarely consumed as usual fruits, mainly because their price is too high to be consumed in large portions. Mainly luxury restaurants and hotels buy tropical fruits for preparing desserts or garnish their pastries. Contact details of these restaurants and hotels are given in paragraph 3.4.

Tropical fruits are also used to prepare fruit cocktails, which are preserved canned fruit juices. The price of these juices is not as high as fresh tropical fruits, therefore, these drinks are also consumed as desserts. For photo material of tropical fruits sold in Poland, please refer to the annexes.

4.5 Expansion plans In the 1990’s, the agro-food industry belonged to the main targets of foreign direct investments (FDI). FDI in the Polish food industry jumped from € 1.5 billion in 1994 to € 5.2 billion in 20024. These amounts include only investments over € 810.000. 4 Source: Przemiany 2004, s. 110



Growth of FDI in last three years (2000-2003) is slowing down. The value of FDI in fruit and vegetable processing (up to the end of 2002) was € 259 million. There are no officially known future FDI projects in the Polish fruit market, but, considering the growing popularity of tropical fruits, a growth in the fruit sector can be expected. As frozen and processed fruits have seen an increase in demand the past few years, an expansion in this sector can be expected.

4.6 Pricing strategy Domestic, import and export prices of fresh fruit and vegetables are dependent on several factors, such as the total supply of the products, the type of the product, its origin. In the case of commodity products like pineapples and bananas, the highly changeable harvests of fresh fruit and vegetables are an important determinant of price fluctuations of fruit and vegetables. Prices of fresh products are set on a global level, and speculation on the harvests can cause rapid changes in the price level of the fresh fruit and vegetables. Other important factors can be the size of the order, the quality of the product and the inflation and exchange rate.

Margins in the international trade in fresh fruit and vegetables are under pressure. Margins for European importers for instance are typically below 10%. There is a number of reasons why it is not possible to give an accurate picture of the margins for all product and all parties in the import trade, wholesale and retail trade: The wide range in the fruit assortment; The great differences between the various product groups (temperate

products and tropical, subtropical products and specialties).

Prices for fresh fruit and vegetables vary considerably. Therefore, it is recommended to monitor world markets and price movements, in order to be able to set a realistic price.

Table 4.6.1 Wholesale Polish market prices of a selection of products, by country of origin, January 2005, in euros

Unit Germany France The United

Netherlands KingdomBANANAS

Côte d'Ivoire (air/Red) Kg - 3.50 - -Kenya (air/Red) Kg - - 4.50 -

Colombia (air/Small) Kg - 5.50 - -Ecuador (air/Small) Kg - - 5.33 -Ecuador (sea/Small) Kg - - 1.87 -

PINEAPPLESBenin (air/Smooth Cayenne) Kg - 1.80 - -

Côte d'Ivoire (air/Smooth Cayenne)

Kg - 1.65 - -




Netherlands KingdomCôte d'Ivoire (air/Victoria) Kg - 2.80 - -

Mauritius (air/Victoria) Box - 9.50 -Reunion (air/Victoria) Kg - 3.38 - -

South Africa (air/Victoria) Box 11.00 - 9.00 -Costa Rica (sea/MD-2) Box 12.63 - 13.36 -Costa Rica (sea/MD-2) Kg 1.15 - -

Côte d'Ivoire (sea/Smooth Cayenne)

Box 6.50 - 8.50 9.82

Côte d'Ivoire (sea/Smooth Cayenne)

Kg - 0.80 - -

Ghana (sea/Smooth Cayenne)

Box 6.50 - - -

MANGOSBrazil (air/Kent) Kg - 3.85 - -Peru (air/Kent) Kg - 4.25 - -Thailand (air) Kg 4.00 - - -

Brazil (air/Palmer) Kg 2.69 - -Brazil (sea/Atkins) Kg 0.48 0.97 0.56 0.89

Ecuador (sea/Atkins) Kg 0.29 - 0.44 0.85Peru (sea/Atkins) Kg - - 0.50 0.89Brazil (sea/Keitt) Kg 0.29 - - -

Ecuador (sea/Keitt) Kg 0.29 - - -Brazil (sea/Kent) Kg 0.56 1.23 1.40 -

Ecuador (sea/Kent) Kg - - 0.63 -Peru (sea/Kent) Kg 0.63 1.13 0.73 -

LYCHEES Reunion (air) Kg - 6.00 - -

Madagascar (sea) Kg 1.69 1.45 1.13 1.97Mauritius (sea) Kg - - - 1.96

South Africa (sea) Kg 1.90 2.90 2.25 2.68LIMES

Mexico (air) Kg - 6.00 - -Brazil (sea) Kg 0.84 1.75 1.07 1.81

Mexico (sea) Kg 1.23 2.58 1.31 2.00AVOCADOS




Netherlands KingdomIsrael (sea/Ettinger) Box - 4.36 5.00 -Israel (sea/Fuerte) Box - 4.38 4.50 -Israel (sea/Hass) Box - 5.75 5.75 -

Mexico (sea) Box - 6.25 - -Israel (sea) Box - - - 5.72

Israel (sea/Pinkerton) Box 5.56 4.46 5.25 -Brazil (sea/Tropical) Box - 12.40 - -Spain (truck/Fuerte) Box 5.25 4.90 - -Spain (truck/Hass) Box - 7.25 8.16 -

Spain (truck) Box - - 4.50 6.07PASSION FRUIT Brazil (air/Purple) Kg - - - 2.23

Colombia (air/Purple) Kg - - 4.47 -Israel (air/Purple) Kg - - - 4.76Kenya (air/Purple) Kg 4.00 5.60 4.38 4.47

Reunion (air/Purple) Kg - 9.20 - -South Africa (air/Purple) Kg 5.00 5.25 - -Zimbabwe (air/Purple) Kg - 5.65 4.50 4.29

Source: EU Market Survey 2005, CBI – Center for Promotion of Imports from Developing Countries

Currently, the Polish market is very much price driven. Super- and hypermarkets dominating in the fruit trade are forcing Polish importers to concentrate only on the cheapest products, while at the same time requiring high quality. This trend is also evident in the retail sector. Table 4.6.2 below shows the wholesale prices for grapefruits and bananas. Unfortunately, tropical fruit is not quoted in price lists of the agricultural markets, due to its low popularity.

Table 4.6.3 Minimum and maximum wholesale prices of fruit in the second quarter of 2003 and 2004

Price (in € /kg) April May JuneProduct

2003 2004 2003 2004 2003 2004 Grapefruit 0.75-1.25 0.80-1.51 0.63-1.75 0.80-1.50 0.63-1.20 0.80-1.75 Bananas 0.68-0.81 0.63-0.88 0.63-0.76 0.78-1.04 0.49-0.75 0.75-1.00

Source: Zak ad Ekonomiki Ogrodnictwa IERiG

The prices of tropical fruit in some European countries are presented in the tables below.



Table 4.6.4 Prices of GRANADILLA per kg EURO

Market Origin L-price H-priceFrance Colombia 7,50 8,40

Germany Colombia 7,45 7,55Holland Colombia 7,00 7,10

United Kingdom Colombia 5,87 6,02Source: “Fresh tropical and off-season fruit and vegetables”, Europe 2003, Issue No 7, 20th

February 2003, Market News Service, International Trade Centre, UNCTAD/WTO

Table 4.6.13. Prices of PASSION FRUIT and MARACUYA per kg EURO

Market Origin L-price H-priceFrance Kenya 4,85 4,95France Zimbabwe 5,00 5,90Holland Kenya 4,50 4,75Holland Zimbabwe 4,50 4,65

United Kingdom Kenya 4,01 4,16United Kingdom Zimbabwe 4,38 4,53

Source: “Fresh tropical and off-season fruit and vegetables”, Europe 2003, Issue No 7, 20th


Table 4.6.14. Prices of PITAHAYA per kg EURO

Market Origin L-price H-priceFrance Colombia 8,35 8,45

Germany Colombia 9,95 10,05Holland Israel 7,75 7,85Holland Vietnam 7,30 7,35

United Kingdom Colombia 9,44 9,58Source: “Fresh tropical and off-season fruit and vegetables”, Europe 2003, Issue No 7, 20th


Due to the low popularity and the fact that these fruits are very unknown in Poland, there are no official statistics or price quotations of tropical fruit for Poland. However, through investigantions has been found out that one piece of granadilla costs app. € 0.63, 0, 1 kg of uchuva costs between € 0.75 and 1.00 and one piece of passion fruit costs between € 0,54 and € 0,75. Pitahayas are seldom bought, so no retail prices are available.

In 2003 fruit procurement prices in most cases were significantly above the level observed in 2002. The increase resulted from growing demand on foreign markets - mainly in the EU-15 (following a decline in production in 2003). Only the prices of black currants declined and the prices of plums remained unchanged. The prices of strawberries reached a record level. Comparing to a low average level calculated for three last seasons the prices of table and processing apples increased. Anticipated increase in demand for fruit and fruit products on foreign



markets contributed to rising prices of majority of fruits. Procurement prices of majority of fruits fell significantly below the level observed in 2003. A sharp decline concerned soft fruit prices - strawberries, raspberries, cherries and mainly blackcurrant. In 2004 the production profitability of soft fruits fell below the breakeven point as well.

The fruit prices usually grow in March-April-May as a result of higher supply, both of domestic and imported fruit. The fruit prices’ increase was higher than the rise of food prices and than inflation. A decline in the pace of price increases took place in June 2004, when prices grew only by 0, 5 % from May. This stemmed from higher supply of 2004 crops. In June and July 2004 the prices were lower than in the same period of 2003, due to very high crops of soft fruit.

Table 4.6.4 Indicators of retail prices of fresh and processed fruit in Poland (previous year = 100)

Item 2001 2002 2003I - VII 2003

I - VII 2004

Goods and services in total 105,5 101,9 100,8 100,5 102,8FOOD 105,0 99,3 99,0 97,6 105,0

FRUIT (fresh, cooled and frozen) 105,2 100,9 108,7 107,7 106,4Fruit of trees, shrubs and berry

plants, including: 105,0 100,9 112,9 111,8 103,9

- apples 87,0 89,8 110,9 107,3 103,8- pears 140,6 96,3 140,5 110,5 117,2- plums 120,6 140,1 97,5 98,5 92,6- other 111,2 104,3 112,5 114,2 96,9

- berries 147,2 116,8 119,8 121,3 109,3- nuts 102,2 95,7 97,6 95,5 99,1

Southern fruit 106,1 101,2 104,5 103,5 109,6- citrus 107,8 99,1 114,0 109,1 111,3

- bananas 107,9 107,6 92,1 97,8 114,3- other 84,7 91,9 82,0 82,4 79,7

Processed fruit 100,0 99,3 102,5 102,2 104,1Source: GUS

Table 4.6.5 Wholesale prices of fresh fruit, domestic and imported, on chosen wholesale markets in Poland in PLN5

Place Bronisze Kielce Lublin Pozna Sandomierz Wroc aw Date of quotation 2005-07-21 2005-07-21 2005-07-19 2005-07-21 2005-07-21 2005-07-21

Fruit Unit Min Max Min Max Min Max Min Max Min Max Min Max Pineapples 1 piece 6,00 7,00 2,60 3,00 4,00 6,00 3,00 5,00 5,00 7,00

Watermelons kg 0,90 1,30 1,00 1,20 1,10 1,60 1,00 1,20 1,20 1,40 1,00 1,20Bananas 3,00 3,55 3,50 4,00 3,00 3,50 3,06 3,60 3,30 3,50 3,60 4,00Peaches kg 2,80 3,88 4,20 4,70 3,00 3,50 3,20 3,50 3,00 3,50Lemons kg 3,20 4,20 3,60 4,00 3,10 4,50 3,40 4,00 3,80 4,00 3,50 3,80

5 € 1 = 4,0 PLN



Place Bronisze Kielce Lublin Pozna Sandomierz Wroc aw Date of quotation 2005-07-21 2005-07-21 2005-07-19 2005-07-21 2005-07-21 2005-07-21

Grapefruits kg 4,50 6,00 4,00 4,40 4,80 6,00 4,40 5,00 6,00 6,10 4,50 4,50Pears kg 3,50 5,50 3,80 4,20 4,20 4,50 4,00 4,40 3,80 4,00Apples kg 3,50 4,00 2,30 4,40

Kiwi fruits kg 2,50 6,00 6,00 7,00 5,80 6,00Mandarins kg 3,00 5,50 4,00 4,20 4,00 6,00 4,00 4,50 5,50 6,00 5,00 5,00Apricots kg 5,00 6,50 3,80 4,00 6,20 6,50 5,00 5,00

Nectarines kg 2,80 4,50 3,80 4,00 3,20 3,50 3,50 4,50Oranges kg 3,00 4,00 4,00 4,80 3,00 4,50 3,50 4,00 3,00 3,10 3,00 3,50Grapes kg 7,00 9,00 6,00 7,00 6,00 10,00 9,50 10,00 7,00 10,00

Source: www.netbrokers.pl, data of the Ministry of Agriculture and Rural Development

The detailed prices on particular wholesale markets are enclosed in the annexes. It is important for Colombian exporters who already have some experience in Western Europe, to offer lower prices on the Polish market, than they are used to offer in for example Germany or the Netherlands.

4.7 Segmentation of enterprises by sectors and its categorization

Importers/ wholesalers There are several dozens of fruit wholesalers on the market, most of them quite small. Only 5 or 6 fruit importers are of significant importance. These are listed below. There are also several large hyper- and supermarket chains, some of which import fruit themselves and some buy it from importers. Most of importers and distributors are Polish companies, whereas most of retails chains are foreign.

The most important importers/ wholesalers are :

Fresh World International Sp. z o.o.

Location: Bronisze, near WarsawBeginning of activity: 1997

Description: Fresh World International is related to the Valstar Group in Holland. It has built its reputation on its commitment to quality and prompt and reliable service. Fresh World International imports fresh fruits and vegetables from all over the world directly and distributes them. The export from Polish



produce is mainly going to the European Union. The company has modern refrigerating facilities, 6 bananas ripening rooms, a packaging machine for citrus and their transport. The customer structure is mainly composed of supermarket chains and wholesale distributors. Fresh World International is located in Bronisze near the Warsaw wholesale market in a 3000 m2 modern warehouse.

Bury sp. z o.o.

Location: LublinBeginning of activity: 1995

Description: During 10 years of activity the company has become one of the biggest and most effective fresh fruit and vegetable distributors. They have been co-operating successfully with leading producers from Spain, Holland, Italy, Greece, South Africa, South America, Yugoslavian Republics and Hungary, therefore they can offer best quality and favorable prices.

Darex S.A.

Location: Katowice Beginning of activity: 1990Number of employees: 20

Description: Darex SA - the leading banana importer to the Polish market. Within a short period of time the company became the biggest banana supplier and the leader in importing and exporting of a wide range of fruit and vegetables. The fast developing market as well as still expanding distribution network was an impulse to look for a more efficient form of operations.



Tropicana sp. z .o.o.

Location: KrosnoBeginning of activity: 1991

Description: From the beginning of the company operations, main emphasis was put on professional service of wholesalers and retailers of different sizes. The Company has got chambers for ripening bananas, machines for cleaning and packing fruits and vegetables, and fleet of specialized vehicles for distribution of goods.

Horimpex sp. z o.o.

Location: Kraków Beginning of activity: 2001

Description: HORIMPEX Sp. z o.o. is a company dealing with export and import of the best quality fruit and vegetables of national and foreign origin. The company cooperates with the largest suppliers and recipients of this branch of trade from all over the world. They guarantee quickness in their activity and offer new trade solutions.



Chiquita PL

Location: Kraków

Description: Chiquita Brands International belongs to the largest companies in bananas branch in the world. The Chiquita subsidiary company is in the Krakow. Many companies are conducting a fusion process with the Chiquita Company (i.e. Darex). Its main target is to give the best quality and the best standard for the customers. Chiquita was the first company which used ships with freezers, to keep them fresh for clients, and has developed special cartons for safer transportation.

Other importers of tropical fruits worth mentioning are:

AgroCentrum, Amasol sp z o.o., BERITAS, Bury sp. z o.o., CMC, Krzysztof Cz pi ski, EKOFRUT sp. z o. o., Jarys, Forte sp. z o.o., FRUCTOP Topolscy s.j., INTER AGRO s.j., NET Artur Sznajder, NET-PROFIT Spó ka z o.o., Nowalijka s.c., OWOGEO sp. z o.o., POLMEX sp z o.o., RENEX s.j., FH Romto sp. z o.o., SZPEX sp. z o.o., Targ-Ban sp. z o.o., Quiza PUH, Gomolava Polska sp z o.o., Ex-food



Retails chains The most important retail chains that purchase citrus fruits and tropical fruits are:

Real sp. z o.o.

Location: Warszawa Beginning of activity: 1995Number of employees: 18700Turnover: 2, 74 milliard EuroContact details: Real,- Sp. z o.o Warszawa 02-183 , al. Krakowska 61 0048 (22) 500 00 00

Description: The chain of hypermarkets Real belongs to the Metro Group, present in 30 countries, in Poland since the mid-90-ties. The group’s headquarters are located in Düsseldorf (Germany). It is a leader in the Polish trade branch, owns 92 large-area shops. Metro Group is the largest employer in the branch and ranks fourth among the largest Polish companies, third among European trading concerns and fifth among world ones. It is an owner of 5 distribution chains:

Makro Cash & Carry – centers of retail supply (in Poland – 21); Real – food and industrial hypermarkets (27); Media Markt – electronic markets (21); Saturn – electronic markets (2); Praktiker – building markets (16);

managed by 5 service partnerships.

Hypermarkets Real deal with retail sales of a range of 45 000 products in the food, cosmetic/chemical and industrial branches. It offers also its own brands: TiP (Tanie i Pewne – Cheap and Safe – food, cosmetics, chemicals), Watson (radio and TV appliances) and Alaska (household appliances). Real was created in 1992 in Germany as a results of joint-venture of 5 chains: divi, basar, Continent, esbella and real-kauf. Later it was joined with other regional chains: massa, massa-mobil, Mister, BLV, Huma and Suma, and in 1998 with 94 allkauf hypermarkets and 20 Kriegbaum group hypermarkets. Real’s latest purchases of 1999 are 5 markets extra. Today Real is Germany’s largest retail chain with 255 shops. In Poland it started operating in 1995 and opened the first hypermarket in 1997 in Szczecin. At the moment there are 27 hypermarkets Real of 8.200 m² space in Poland.



Geant Polska Sp. zo.o.

Location: WarsawBeginning of activity: 1996Number of employees: 8500Turnover: 3 678 469 460 PLNContact details: Géant Polska Sp. z o.o., Warszawa 02-801 , ul. Pu awska427,0048 (22) 545 53 00

Description: Casino Group is an owner of hypermarkets Geants and supermarkets Lider Price. Total sales area amounts to 10.000 m². Each hypermarket Geant offers about 40 000 products, 90% of which are of Polish origin.

Auchan Polska Sp. z o.o.

Location: PiasecznoBeginning of activity: 1996Number of employees: 9700Turnover: 30 billion Euros all over the worldContact details: AuchanPiaseczno 05-500 , ul. Techniczna 2 0048 (22) 703 86 00, 703 82 00

Description: For its first site in central Europe, Auchan chose Poland, and in 1996 began trading in Piaseczno on the outskirts of Warsaw. The development of Auchan is fast: 8 stores opened in 5 years, including 4 stores in the last quarter of 2000.



Other retail chains worth mentioning are

Carrefour Polska Warszawa 03-734 , ul. Targowa 72 0048 (22) 517 21 10

LiDL Polska Sp. z o.o. Jankowice , 62-080 Tarnowo Podgórne , ul. Pozna ska 48 0048 (61) 896 76 47

Biedronka. Jeronimo Martins Dystrybucja sp. z o.o., Kaufland Polska sp. z o.o., miniMAL sp.z o.o., Leclerc, Zatoka S.A., Ahold Polska sp. z o.o., SPAR Polska sp. z o.o., Intermarche (MGI Polska), Bomi

4.8 Recommendations

Contacting the right importer will help a business enter the Polish fruit market. Most supermarkets, hypermarkets and specialty shops buy a majority of their fresh produce through wholesalers, set up through large importers which have their own distribution channels and marketing contacts. The most important potential clients of Colombian exporters are large fruit importers and hyper- and supermarket chains.

In the early 90's several large importing firms existed on the Polish market. In addition to these market leaders, there were 20 to 30 smaller, local importers/distributors of fruit. This market organization was maintained until the year 2000. During 2000, huge market changes occurred in the area of fresh fruit and vegetable distribution. This change occurred due to the worsening economic situation in Poland at that time. In addition, some of the larger super and hypermarket chains operating in Poland organized their own import/distribution departments. Currently, there are 5-6 large importers of fruits and vegetables on the Polish market.

A good way to promote products and gain first-hand information on the chosen market is by participating in trade fairs, also described in this chapter. The most recommendable is the trade fair in Pozna (which is traditionally a spot for trade fairs in Poland).

Differences between maximum and average prices as well as between maximum and minimum prices quoted on main stock markets are significant therefore potential gains can be considerable.



It is important to enter the market with products of high quality and reasonable prices, preferably supported by large promotional campaigns in various media.


5. Distribution channels

5.1 Distribution channels

Changes in fruit and vegetable distribution in Poland were influenced, to a large extent, by transformation process and integration process with the European Union. Important factors were also levels of production concentration and specialization, which were regionally differentiated. As well as in the case of production and processing sector, a high level of dispersion characterizes wholesale and retail trade of fruit and vegetables. Due to deregulation of storage sector at the beginning of 1990s there was a dynamic development of the small, independent wholesale companies, which are currently dominating on the market. According to the Central Statistical Office data, there are around 3800 companies for which fruit and vegetable trade is the main activity. The small wholesale companies are usually delivering fruit and vegetables to fruit-processing companies, as well to local market-places in towns. After a booming development of small local market-places at the beginning of 1990s, resulting from liquidation of traditional distribution channels, their role is currently diminishing.

The method of direct trading lines between producers/exporters and large retail chains is, in some European countries, partly eroding the function of the specialized importers. This leads to those same importers functioning to a certain extent as logistics service providers, quality controllers and co-coordinators of the stream of goods.

From the producer to the consumer, fresh fruit and vegetables exported to the EU pass through four sales levels:

production level

wholesale level

retail level

consumer level



Production level parties involved scope of work

Producer fresh fruit production pre-harvest treatment first processing level

quality control large-scale packaging

Private and co-operative export organization

goods treatment (washing, sorting, etc.) packaging goods for export, often in customer’s packaging (with price tags)

sales and marketing in their own name or on behalf of their members

Fruit combines (plantations) fresh fruit production, in some cases buying from other producers

quality control packaging goods for the exporter

sale of goods for the exporter in their own name to contract importers

Chart 5.1.1 Distribution channels of the fresh fruit and vegetables trade in the European Union

Fruit and vegetable wholesalers

Consumer

ProducersFruit combines’ plantations

Transit trade and re-export

Food service ( restaurants, canteens)

Private and co-operative export organisation

Fruitcombines

Supermarkets Retailers (excl. supermarket):specialised shop, open-air market

Importer/Agent



Wholesale level/ importers Most importers (importing wholesalers) take care of the import formalities and process the imported goods for further distribution in the importing country or for re-export to other countries. They also perform additional tasks such as ripening bananas, portioning and packaging fresh fruit for self-service, or repalletizing goods on to different sized pallets. In most cases, importers have long-standing contacts with their suppliers. Importers also advise the suppliers on issues such as quality, size and packaging. In some cases, importers also make use of agents. The most important importing wholesalers are:

1. Bury Sp. z o.o. – Jacek and Bogdan Bury, 0048 (81) 446 60 41 2. Geant – Mazurek Przemys aw, 0048 (22) 545 53 003. Quiza – Bart omiej Szatkowski, 0048 (58) 629 79 00 4. Darex – S awomir Cyganek, 0048 (32) 73 11 941 5. Renex – import fruit from all over the world, 0048 (52) 360 48 00

These are also mentioned in chapter 4

Fruit combines run their own plantations and buy additional products from private producers if necessary. They mostly run their own fleets of ships. The combines’ businesses are mainly situated in North, Central and South America. The significance of the fruit combines and their contract importers is expected to increase in the future, because professional marketing directed at consumers and retailers is becoming more important.

In Europe, the strong growth of large retail chains reflects the strong tendency in the trade towards concentration and thinking and operating in ‘straight lines’. The method of direct trading lines between producers/exporters and the large retail chains is, in some European countries, partly eroding the function of the specialized importers. This leads to those same importers functioning partly as logistics service providers, quality controllers and co-coordinators of the stream of goods. In general, the importers still play an individual and specific role in the chain, because they have a strong relationship with their suppliers and because they play an indispensable role as collectors of a broad package of products.

The present situation in the European distribution structure forces fruit and vegetable exporters in developing countries to be highly aware of and attentive to the demands set by the large retail chains on the import trade and to cater fully to them. The leading implication here is that the large retail chains aim at trade on a large scale. This demands uniform quality and volume on the side of the exporter. At the same time, large catering establishments have moved towards centrally controlled systems of purchasing, which are more economic in terms of both time and money because of direct supply from the producer sector.

This consolidation of buyers is occurring throughout the food distribution system. As a result, demand for consistent volumes and qualities of fresh produce increases, causing firms to introduce procurement methods that manage the



supply chain more efficiently. Buyers are increasingly developing partnerships with preferred suppliers, in order to ensure availability of produce, which meets their specifications on a week-in, week-out basis. Buyers of larger volumes are the power behind consolidation at the supplier level, forcing shippers to attempt to match the scale of their customers in order to serve them efficiently.

The emergence of larger scale suppliers implies that only a limited number of firms has sufficient financial resources and backing, and is able to bear the costs and risks associated with producing crops in several regions or countries over extended periods.

For example, a number of Spanish growers is producing in more than one region of Spain, as well as in the Canary Islands and in Morocco, in order to extend seasons. Consistency of supply over extended seasons has, in and of itself, become a source of strategic competitive advantage for many shippers.

Specialized agents The role of agents is growing in all European countries and in Poland as well. Agents function as intermediaries for establishing contacts between exporters and importers. They do not trade products on their own account. They maintain contacts with foreign suppliers and procure produce for their customers, who are generally wholesalers. Most agents work on the basis of a commission of the sales price. The number of agents in Poland is growing, but still very small. Besides this, most agents are working alone and are not registered. The number of agents active in the market changes frequently. Due to this, it is very hard to provide detailed information about the most important agents on the market

Retail level Marketing and sales to the public are the most important functions at the retail level. The structure of the retail trade for fruit and vegetables offers the consumer the possibility to make a choice from various points of sale, the most important being:

specialized fruit and vegetables shops; hyper / supermarkets; open-air markets; producers/farmers.

The traditional trade channels, i.e. the markets and greengrocers, continue to sell a significant share of the fresh products in most of the key markets. Hypermarkets and supermarkets are also at the forefront of the increasing sales of pre-packed produce. The fruit and vegetable product assortment in the supermarkets and hypermarkets has become increasingly diversified. The development of so-called mini-products illustrates only one example of the many initiatives to adapt to the changing household composition of today’s consumer. In this respect, retailers and



breeders (product development companies) are increasingly collaborating in order to develop new and innovative product concepts.

A lot of effort goes into the design of the fresh produce departments to appeal to the consumer, both in terms of convenience and product variety. Supermarket organizations have also increasingly penetrated the function of the specialized wholesale trade for fruit and vegetables and have founded their own distribution centers in order to collect the products and supply their own stores. Apart from that, a tendency can be noticed whereby the fruit and vegetables departments of the superstores try to imitate the typical characteristics of the (small) specialist shop.

Supermarket chains increasingly seek to ensure their supplies through direct contact with growers and grower associations, especially for bulk tropical fruit and vegetables, which already have a considerable market. This has resulted in sellers of fresh fruit and vegetables facing fewer, but larger buyers. The growing market share of big supermarket chains and their increasing international co-operation have major implications for exporters of fresh fruit in developing countries. Because of this growth in supermarkets, spurred on by changes in shopping habits - consumers increasingly prefer one-stop shopping and superstores - fruit is increasingly channeled through large and sophisticated handling companies, skilled in all aspects of importation and distribution.

Chart 5.1.2

Number of companies specialized in fruit and vegetable wholesale activity

1767

27493123 3228 3321

3620 3775 3853

0500

10001500200025003000350040004500

1992 1993 1994 1995 1996 1997 1998 1999

Source: “Rynek owoców w Polsce i wybranych krajach Unii Europejskiej – uj cie teoretyczne i empiryczne”, W. Pio, Wydawnictwo SGGW, Warszawa, 2001, p. 88

The entrance of super- and hypermarket chains has increased competition process in the distribution sector. The super- and hypermarket chains strongly influenced the position of wholesale companies, since they started to purchase products directly from producers and to import directly from countries of origin with



neglecting ‘home’ wholesale companies. They also often invest in construction of their own logistic platforms. According to specialists, super- and hypermarket chains in Poland are not able to compete with small local market-places of fresh fruit and vegetables, because of low diversity of assortment especially during summer season. However, their share in total retail turnover of fruit is increasing and is currently estimated to reach 25%. Super- and hypermarket chains also present good opportunities to large fruit and vegetable producers (or producers’ groups) to increase their production and sales.

Concerning retail trade, it is estimated that the role of super- and hypermarket chains will increase significantly and reach a 50% share of total fruit retail turnover before 2010. The share of general alimentary and specialized vegetable and fruit shops in the retail turnover will diminish. In general, rationalization of distribution network of fruit will lead to shortening the way from producers to consumers by eliminating unnecessary brokers and by strengthening large and modern entities. This is especially important in case of super- and hypermarket chains and in export turnover. 845 thousand retail sales outlets could be found in Poland in 2002, including 40 thousand shops. This represents 45 people per outlet and 85 people per shop. Additionally, there are 145 thousand shops selling food and beverages.

Structure of food retail trade in 2002: 1. Grocery stores – 145 thousand 2. Meat stores – 15,4 thousand 3. Large chain stores – 2955 Average area of a large store – 1558 m2

3. a) Hypermarkets – 293 Average area of a hypermarket – 7435 m2

3. b) Supermarkets – 2043 Average area of a supermarket – 722 m2

Share of foreign ownership – 50%.

The share of modern distribution channels in retail sales that includes hypermarkets, supermarkets and discount stores has been increasing quickly. This share increased from 18% in 1998 to 32% in 2002. According to predictions made by experts, retail chains will control 50-60% of retail sales in 3-4 years. In 2002 the biggest turn-over (ranging from € 2.724 million to € 566 million) was achieved by the following groups: Metro, Geronimo Martins, Casino, Carrefour, Auchan Tesco, Rewe, Ahold and Tangelmann. In the period 1996-2000 112 hypermarkets started their operation in Poland. In Spain, which represents a similar size of population, it had taken 20 years to establish that number of hypermarkets. It is estimated that in 2010 the share of big retail networks reached 75-80% of retail trade, as it is now in West European economies.



Distribution channels for developing country exporters The most interesting distribution channels for developing country exporters of fresh fruit and vegetables are importers. Importers not only have experience and knowledge of the international market, they also have strong relationships with suppliers and buyers all over the world. In regard to serving supermarket organizations, the importer will now more and more emphasize his function as co-coordinator of the stream of goods to final destinations. He has to play a more specialized role as quality controller and also as logistics service provider. Therefore, developing country exporters are advised to contact and co-operate with specialized importers for the distribution of their products. This applies especially to cases where it concerns tropical fruit varieties and off-season products. Besides that, importers do not only focus on the demand of the home market. Because of their favorable, geographical location, many EU importers have the possibility to export imported products to all other European countries.

Developing-country exporters of organically grown products can get themselves listed as suppliers on http://www.green-tradenet.de and on http://www.greentrade.net, two Internet sites where suppliers and buyers of organic products come together on a market place. Suppliers can specify their offer and company name.6 In Poland fresh fruit, meant for direct consumption, is being sold for about 40% on local fruit and vegetables’ markets. The share of wholesale markets and goods exchanges (areas equipped with technical means and infrastructure) amounts to 20%. Direct sales to the retail network makes 25%, including 10% of sales to supermarkets. The rest 15% is sales in farms and other forms (sales by roads, sales from vans). The sales structure differs due to the scale of production in particular farms.

Table 5.1.3 Structure of distribution channels of fruit for direct consumption

Distribution channel Share in % Local markets 40

Wholesale markets and exchanges 20Retail network 25

Directly in farms 10Other sales forms 5

Source: Polska wie w Europie, Produkcja owoców i warzyw, Bo ena Nosecka, Instytut Ekonomiki Rolnictwa i Gospodarki ywno ciowej

The above mentioned channels regard local fruit. The distribution of tropical fruit, which is less popular, differs significantly – it is mainly sold in super- and hypermarkets. There is low demand for it on wholesale markets.

6 Please see the annexes for the contact details of Green Trade Net and GreenTrade.



5.2 Recommendations

It is recommendable for Colombian suppliers of fresh fruit to establish a form of cooperation with Polish importers and wholesalers and in that way enter the Polish market. It must also be underlined that the vast majority of trade in tropical fruit is done through wholesalers and hyper- and supermarket chains. Establishing contacts with these parties is therefore highly recommendable. Wholesale markets, which play an important role in fruit trade in general, are of less importance in case of tropical fruit.


6. Commercial Access Guide

6.1 Preferential Tariffs All goods entering the EU are subject to import duties. External trade conditions are mostly determined by EU regulations. Poland also uses the EU´s Harmonized Tariff Schedule (Nomenclature) on the TARIC (Integrated Tariff of the European Community) which is issued by the Commission and the Member States for the purpose of applying Community measures relating to import and exports. The level of the tariffs depends on the country of origin and the product. If there is not a special trade agreement in force, the general import tariff (conventional duty) applies.

In January 2005 Commission Regulation (EC) No 1810/2004 entered in force which is binding in all Member States. In its Part Two “Schedule of Customs Duties”, Section II “Vegetable products” Chapter 8 deals with ”Edible fruits and nuts; peel of citrus fruits or melons”. The section 0810 ‘Fruits’, and its category 081090 ‘Others’ contain the fresh tropical fruits relevant for this report, with the subcategories 08109030 ‘Tamarinds, cashew apples, lychees, jackfruit, sapodillo plums’ , 8109040 ‘Passion fuit, carambola and pitahaya’ and 8109095 ‘Other’ .

Colombia is included in the general system of preferences – GSP. This agreement allows products originating in the countries concerned to be imported at preferential tariffs or, for the least developed countries, duty-free. A “Certificate of Origin Form A” has to be filled in by the exporter and issued by the competent authorities. Tariff contingents and tariff ceilings do not exist anymore.

According to international agreements Colombia is included in the SPGE group of preferences and therefore benefits from 0% tariff preference on the basis on Regulation (EC) No 2501/2001 and Commission Regulation (EC) No 2331/2003. Until July 1st 2005, this meant that Colombian exporters could introduce so-called “non-sensitive” products at a 0% tariff rate and “sensitive” products, such as all products under nomenclatures code 0810 at a 3.5% reduced rate.

However since July 1st 2005, Colombia is a member of the GSP Plus program, which assists the countries of the Andean Community, such as Colombia, in their battle against drugs. The GSP Plus will officially enter into force on the 1st January 2005, but has already started to run in its preliminary form for 14 countries on the 1st July 2005. Exporters based in one of the GSP Plus programs are also exempt from duties on sensitive products. Therefore all tropical fruits can be imported into the European Union from Colombia duty free.



6.2 Tariffs imposed by major competitors

Major Colombian competitors in the tropical fruit market are Italy, Greece, Spain and the Netherlands. Since they all are European Union member states they do not face tariffs of any kind. Other non- EU competititors are the Ukraine, New Zealand and Chile also face a 0% tariff rate. The conventional rate for third countries that not have a general system of preferences with the European Union is also 0%, since there is no inter-European Union competition in this market, because none of the EU member states are producing tropical fruit.

6.3 Norms of origin

To be able to benefit from the GSP Plus 0% duties on sensitive and non-sensitive products it is necessary to prove that the product that is being imported is really from Colombia or another GSP (Plus) country. Some products clearly originate in a given country, e.g. because they are grown there from local seed. These are called “wholly obtained” goods. But increasingly in today’s world, others are not produced in a single country. In general terms, products are wholly obtained in a particular beneficiary country (or in the EC, in the case of cumulation) if only that country has been involved in their production. Even the smallest addition or input from any other country disqualifies a product from being "wholly obtained". In the case of fruit this means that the fruit has to be grown and harvested within Colombia. In practice, except for naturally-occurring and related products, situations where only a single country is involved in the manufacture of a product are relatively rare. Globalization of manufacturing processes has resulted in many products being made from parts, materials etc. coming from all over the world. Such products are not, of course, wholly obtained, but they can nevertheless obtain originating status.

The condition is that the non-originating materials used (in practice: the materials imported into the beneficiary country) have undergone "sufficient working or processing". It must be stressed that only the non-originating materials need to be worked or processed sufficiently. If the other materials used are by themselves already originating (either by virtue of being wholly obtained, or by having been worked or processed sufficiently), they do not have to satisfy the conditions set out. What can be considered as sufficient working or processing, depends on the product in question. For the products that belong under Chapter 8, all edible fruits and nuts, the requirements are that the working or processing carried out on non-originating materials, which confers originating status is manufacture in which:

- All materials of Chapter 8 used are wholly obtained and - The value of any materials of Chapter 17 used does not exceed 30% of the ex-

works price of the product



Figure 6.3.1 sufficient working or processing requirements

Source: Official Journal of the European Union7

There are three principal forms of proof used in the context of the EC GSP:

The certificate of origin Form A8, used as proof of origin at import into the EC and in regional cumulation.

o Regional cumulation can be present between the countries of one of the regional groups recognized by the EC GSP4.9 Materials originating in one country of the group which are further worked or processed in another beneficiary country of the same group are considered to originate in the latter country.

The Invoice Declaration, which can be used for goods whose total value does not exceed € 6000 (Article 89).

The Movement Certificate EUR1, which may be used as may an invoice declaration, when goods are exported to beneficiary countries from the EC in the context of bilateral cumulation. (Article 90a).

o Under bilateral cumulation, materials originating in the EC, within the meaning of the EC GSP RoO, and further worked or processed in a beneficiary country, are considered to originate in the beneficiary country.

The period of validity of a proof of origin is 10 months.

7 Chapter 17 contains all types of sugar products 8 We kindly refer you to the annexes for an example of Form A 9 The regional groups (listed in Article 72) are: - Group I: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam; - Group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela;- Group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.



6.4 Barriers

Levying of any customs duty or charge having an equivalent effect and the application of any quantitative import restriction or measure having an equivalent effect are prohibited in trade with third countries.

For exporters in developing countries legislative standards enforced through EU legislation and possibly through EU member states, increasingly pose obstacles when exporting to the EU. Although standards are developed in order to protect consumers, environment or improve the harmonization of the internal EU market; they are often seen as technical, non-tariff barriers to trade or as a green wall protecting the fortress of Europe when looking at environmental standards.

When looking at the situation of exporters in developing countries who would like to access the EU market, there are many differences to overcome. Differences between the EU and third countries in their technical regulations and conformity assessment procedures are based on legitimate origins, such as differences in local preferences regarding health, safety and the environment, and differences in levels of income and labor conditions.

Moreover, exporters in developing countries often are critically constrained by the lack of important issues such as: - Access to credit and insurance and investment climate - Human and physical capital, management and marketing skills - Sufficient facilities for transport and storage infrastructures - Transparent legal and regulatory framework - Awareness and knowledge - Participation in the development of standards - Certifying bodies, test laboratories, standardization institutes etc.

Therefore, the standards in the EU could be seen as obstacles when accessing the EU market, though official barriers do not longer exist.

6.5 Licences

Plant Health Control

The imports into the European Union (EU) of plants, plant products and any other material capable of harboring plant pests (e.g. wooden products and containers, soil, etc) may be subject to the following protective measures, as established by Directive 2000/29/EC:

1. Import Bans; 2. Phytosanitary certificate and/or phytosanitary certificate for re-export;3. Customs Inspection and plant health checks;4. Importers Register;



5. Advance notice on imports.

These phitosanitary measures are intended to prevent the introduction and/or spread of pests and organisms harmful to plants or plant products across the EU boundaries. Those measures enforce the International Plant Protection Convention (IPPC)–FAO, to which EU Member States are contracting parties and which sets out the basic rules and control procedures to secure a common and effective action to protect the countries' agricultural and forestry resources.

The IPPC requires every contracting country to establish a national plant protection organization to inspect growing crops and to report on pests and control them. A complete listing of the national plant protection organizations (NPPOS) can be found at the official website for the IPPC (http://www.ippc.int/). Also on this site, the phytosanitary document can be downloaded

French Overseas Departments and Spanish Canary Islands, in view of its agricultural and ecological characteristics, may request additional conditions to those laid down in the Directive assuming they are justified on grounds of the protection of health and life of plants in their territories.

Directive 2000/29/EC establishes several exemptions for each phitosanitary measure (e.g. plants and plant products for trial, scientific purposes, work on varieties selection; internal transit; small quantities that do not pose a risk of spreading harmful organisms etc.). They are usually granted for a limited period, subject to special import conditions and to a specific license.

All licenses are required documents can be found and downloaded on the following websites:www.signform.pl/browse.php?scat=255 www.europa.eu.int www.ippc.int

1. Import bans10

Member States shall ban the introduction into their territory of: A. Certain particularly dangerous harmful organisms, which are listed in

Annex I, Part A.B. Plants and plant products listed in Annex II, Part A, where they are

contaminated by the relevant harmful organisms listed in that part of the Annex.

C. Plants or plant products listed in Annex III, Part A, where they originate in the relevant countries referred to in that part of the Annex.

D. Plants, plant products and other objects listed in Annex IV, Part A, except for those meeting the special requirements indicated in that part of the Annex.

10 All appropriate annexes can be found at http://export-help.cec.eu.int/



In relation to wood packaging, the new provisions introduced by Directive 2004/102/EC establish that wood packages of any type (cases, boxes, crates, drums, pallets, box pallets and other load boards, pallet collars, etc) shall go through one of the approved treatments specified in Annex I to FAO International Standard for Phitosanitary Measures No. 15 and bear the corresponding mark as specified in Annex II.

Decision 2005/51/EC, OJ L-21 25/01/05, authorizes Member States to provide derogations with regard to the prohibitions referred to in point 14 of Annex III Part A and point 34, section I, Part A, Annex IV above mentioned for soil originating in certain third countries under specific conditions provided for in the Annex of the same Decision and destined for treatment in dedicated hazardous-waste incinerators. Certain areas of the EU, that are free from plant pests established elsewhere in the EU, have been designated as “protected zones” and may be affected by special bans and requirements to prevent spreading of harmful organisms to particular crops (Annex I Part B; Annex II Part B; Annex III Part B and Annex IV Part B) .

2. Phytosanitary certificate and/or phytosanitary certificate for re-export.11

Imports of plants and plant products listed in Annex V, Part B must be accompanied either by an official “phitosanitary certificate” or a ”phitosanitary certificate for re-export” (in case the consignment after being dispatched from a third country, has been stored, repacked or split up in another non-EU country).

Those documents certify the phitosanitary conditions of plants and plants products, and also that the shipment has been officially inspected, complies with statutory requirements for entry into the EU and is free of quarantine pests and other harmful pathogens.

They shall be at least in one of the official languages of the EU and shall be issued by the designated authorities of the third country of export or re-export and made out not more than 14 days before the date on which the plants, plant products or other objects covered by it have left the country of issuance.

Phitosanitary certificates shall be issued in compliance with the provisions of the IPPC and taking into account the FAO International Standard for PhitosanitaryMeasures No 12 on Guidelines for phitosanitary certificates. 12

3. Customs inspection and plant health checks.

In addition to the above mentioned certificates, the plants and plant products listed in Annex V, Part B shall, from the time of their entry in the EU, be subject to customs inspections and supervision by the responsible official bodies.

11 The form can be downloaded on the website of the International Phytosanitary Portal: http://www.ippc.int/ 12 For a sample of a phytosanitary certificate, please see the annexes



The inspections shall consist in:

Documentary checks establishing that the required certificates, alternative documents or marks have been issued or satisfied Identity checks establishing that the plants, plant products or other objects conform to the ones declared on the required documents and Plant health checks establishing that the plants, plant products or other objects, including their wood packing material if any, comply with the specific requirements and phytosanitary measures specified in Directive 2000/29/EC and can be imported into the EU.

The inspections must be made at the point of entry into the EU at the proper Member State’s border inspection post (BIP). However, identity checks and plant health checks may be carried out at the place of destination provided that there is satisfaction of specific guarantees and documents regarding transport of plants and plant products determined for each particular case

4. Importers register

Importers, whether or not producers, of plants, plant products or other objects, listed in Annex V, Part B, must be included in an official register of a Member State under an official registration number.

5. Advance notice on imports

Member States may require airport authorities, harbor authorities, importers or operators to give, as soon as they are aware of the imminent arrival of a consignment of plants, plant products and other objects advance notice to the customs office of point of entry and to the official body of point of entry.

In addition and without prejudice to provisions of Directive 29/00, plants, plant products and any other material capable of harboring plant pests may be subject to emergency measures.

Additional information for Poland

Inspection Procedure

Imports of plant and plant products can only be done through the authorized points of entry and from the time of their arrival will be subject to the supervision of the officials of the competent authorities under customs surveillance.

The points of entry are situated at:

Szczecin, Swinoujscie, Gdynia and Gdansk (maritime transport)Braniewo (railway transport)



Bezledy (road transport)Kuznica Bialostocka (road and railway transport)Bobrowniki (road transport)Koroszczyn (road transport)Malaszewicze (railway transport) Dorohusk (road and railway transport)Hrubieszowie (railway transport)Warsaw (air transport)

The importer or its representative must give advance notice of the arrival and submit a request for inspection that should at least contain:

The “Taric” code (the product identification in the European Integrated Tariff Nomenclature) An statement indicating that the consignment contains produce of phytosanitary relevanceReference number(s) of the required phytosanitary documentationOfficial registration number of the importer

The inspections will consist in documentary checks, identity checks and, when judged necessary by the competent officials, also plant health checks. Release from customs can only be done after a favorable result.

Competent authority / competent bodies

Ministerstwo Rolnictwa i Rozwoju Wsi (Ministry of Agriculture and Rural Development)Panstwowa Inspekcja Ochrony Roslin i Nasiennictwa (PIORiN) (State Plant Health and Seed Inspection Service)

ul. Wspólna 30 PL-00-930 Warsaw Tel: (+48) 22 623 23 02 Fax: (+48) 22 623 23 04 E-mail: [email protected]: http://www.piorin.gov.pl

6.6 Quotas

Quotas have been assigned by the European Union to specific countries for specific products, which allow for the controlled importation of specific products. There are however no quotas for any of the products under Chapter 8 originating from Colombia.



6.7 Approvals & Technical Standards

Health control of foodstuff of non-animal origin Imports of foodstuffs of non-animal origin into the European Union (EU) must comply with general conditions and specific provisions designed to prevent risk to public health and protect consumers' interests. The general rules applicable to these products are as follows:

1. General rules of hygiene for foodstuffs 2. General conditions concerning contaminants in food 3. Special provisions on Genetically Modified (GM) food and Novel food 4. General conditions of preparation of foodstuffs5. Official control of foodstuffs

Besides, in view of fulfilling food and feed safety conditions in the EU, specifically in relation with requirements for traceability, importers are required to keep documentation available in order to identify the exporter in the country of origin, as established by Regulation (CE) 178/2002.

1. General rules of hygiene for foodstuffs

The general rules of hygiene for foodstuffs and procedures for verification of compliance with these rules are laid down in Directive 93/43/EEC (OJ L-175 19/07/1993).

All imported foodstuffs must comply with these rules so that they ensure their safety and wholesomeness. These measures cover preparation, processing, manufacture, packaging, storage, transport, distribution, handling, sale and supply of foodstuffs.

Member States may introduce more specific hygiene provisions if they are not less stringent and do not constitute a restriction to trade in foodstuffs.

If a hygiene problem likely to pose a serious risk to human health arises or spreads in the territory of a third country, the European Commission may suspend imports from all or part of the third country concerned or take interim protective measures regarding the foodstuffs concerned, depending on the seriousness of the situation.

EU legislation on protective measures

2. General conditions concerning contaminants in food



Contaminant substances may be present in food as a result of the various stages of its production and marketing or due to environmental pollution. Since they represent a real risk for food safety, the EU has taken measures to minimize the risk by setting maximum levels for certain contaminants in foodstuffs.

a) Maximum levels of certain contaminants in foodstuffs

Certain foodstuffs (i.e. fruit, vegetables, nuts, cereals, fruit juices, etc…) must not, when placed on the market, contain higher contaminant levels than those specified in Regulation (EC) 466/2001

This Regulation covers four different categories of contaminants: nitrates, aflatoxins, heavy metals (lead, cadmium, mercury) and 3-monochloropropane-1,2diol (3-MCPD).

The maximum contaminant levels relate to the edible part of the foodstuffs but apply also to the ingredients used for the production of compound foodstuffs.

b) Maximum levels of pesticide residues in and on food

Member States may restrict the putting on the market within their territories of certain products containing pesticide residues if the quantity of these residues exceeds the maximum levels permitted. These limits depend on the toxicity of the substance in question.

Pesticides residues in food are regulated by three Council Directives 76/895/EEC (OJ L-340 09/12/1976) 86/362/EEC (OJ L-221 07/08/1986) and 90/642/EC (OJ L-350 14/12/1990) which cover the following products: fruit and vegetables, cereals and other products of plant origin.

This legislation is also applied to the same products after being dried or processed or after their inclusion in a composite food in so far as they may contain pesticide residues.

c) Maximum levels of radioactive contamination of foodstuffs

Regulations (EC) 3954/1987 (OJ L-371 30/12/1987) and 944/1989 (OJ L-101 13/04/1989) lay down the maximum permitted levels of radioactive contamination of foodstuffs (either immediately or after processing) which may be placed on the market following a nuclear accident or any other case of radiological emergency.

There is a list of minor foodstuffs (i.e. those which are consumed least) for which the maximum permitted levels are considerably higher (ten times higher)



d) Materials intended to come into contact with foodstuffs

Materials and articles intended to come into contact with foodstuffs must be manufactured so that they do not transfer their constituents to food in quantities which could endanger human health, change the composition of the food in an unacceptable way or deteriorate the taste and odor of foodstuffs.

The Regulation (EC) 1935/2004 establishes a list of groups of materials and articles (such us plastics, ceramics, rubbers, paper, glass, etc.) which may be covered by specific measures that include a list of the authorized substances, special conditions of use, purity standards, etc. Specific measures exist for ceramics, regenerated cellulose and plastics.

3. Special provisions on Genetically Modified (GM) food and Novel food

In order to ensure the highest level of protection of human health, EU legislation provides for a single authorization procedure for the placing on the market of food containing, consisting of or derived from Genetically Modified Organisms.

An application must be sent to the competent authority of a Member State and then referred to the European Food Safety Authority (EFSA) which carries out a risk assessment.

On the basis of the opinion of EFSA, the Commission drafts a proposal for granting or refusing the authorization, which must be approved by the Standing Committee on the Food Chain and Animal Health. The authorized food and feed are entered in the Community Register of GM food and feed.

GM food lawfully placed on the EU market prior to 18 April 2004 may continue to be placed on the market, used and processed provided that they are notified to the Commission before 18 October 2004.

Novel foods (i.e. foods and food ingredients that have not been used for human consumption to a significant degree within the EU before 15 May 1997) must also undergo a safety assessment before being placed on the EU market.

Companies that want to place a novel food on the EU market must submit their application to the competent body of a Member State for risk assessment purposes. As a result of this assessment, an authorization decision may be taken. The authorization decision defines the scope of the authorization, the conditions of use, the designation of the food or food ingredient, its specification and the specific labeling requirements.

Novel foods or novel food ingredients considered by a national food assessment body as substantially equivalent to existing foods or food ingredients may follow a simplified procedure, only requiring notifications from the company.



4. General conditions of preparation of foodstuffs

EU legislation lays down the rules relating to treatment of foodstuffs, food ingredients and their conditions of use in order to protect the health of consumers and guarantee the free circulation of foodstuffs in the European Union market.

Moreover, specific provisions for groups of foods are laid down in specific Directives. These include compositional requirements, hygiene requirements, list of additives, purity criteria, specific labeling requirements, etc

a) Authorized food additives and flavorings

The scope of the Directives covers food additives and flavorings used as ingredients during the manufacture or preparation of food and which are part of the finished product.

The only substances which may be used as food additives are those included in the approved common lists and then only under the conditions of use mentioned in those lists (e.g. colorants, sweeteners, preservatives, emulsifiers, stabilizers, raising agents, etc…).

b) Preparation and treatments of certain foodstuffs

Rules in relation with the manufacture, marketing and importation of foods and food ingredients that are subject to specific treatments (e.g. ionizing radiation or quick-freezing) must be fulfilled.

c) Specific provisions for certain groups of products and for foodstuffs for particular nutritional purposes

Specific provisions are applied to certain groups of products (such as cocoa, sugar, etc.) and to foodstuffs intended for particular nutritional uses (baby foods, dietary foods, gluten-free foods...). These may include specific requirements on composition, hygiene, labeling (e.g. declaration of the energy value, carbohydrate, protein and fat content), list of additives, purity criteria, etc.

The Directives establish the procedures to be followed if a particular foodstuff, though complying with the relevant specific Directive, is believed to endanger human health.

5. Official control of foodstuffs.

Directive 89/397/EEC (OJ L-186 30/06/1989) provides for official inspections of foodstuffs, food additives, vitamins, mineral salts and other elements as well as materials or articles intended to come into contact with foodstuffs to ensure that



they comply with the provisions designed to protect the health and interests of consumers.

The control may apply to import into the EU and/or to any other stage of the food chain (manufacture, processing, storage, transport, distribution and trade) and may include inspection, sampling and analysis, inspection of staff hygiene, examination of written and documentary material, examination of verification systems set up by the food operator and of the results obtained.

Inspection will be carried out by the Member State competent authorities regularly, and/or where non-compliance is suspected.

The general methods of sampling and analysis that must be carried out by official laboratories for the monitoring of foodstuffs are established in Directive 85/591/EEC (OJ L-372 31/12/1985) and their implementing measures.


Control Procedure

Health controls are carried out at designated control points.

The importer, or his representative, must request a health inspection by submitting the first part of the application form, together with the documents related to the consignment.13

Depending on the cases, the product may also go through a documentary check, an identity check and/or a physical inspection, which may lead to sample taking for analysis.

The result of the inspection is reflected in the second part of the application form. The product can only be released for consumption after favorable result.


Glówny Inspektor Sanitarny (Chief Sanitary Inspectorate)

ul. Dluga 38/40 PL-00-238 Warsaw Tel: (+48) 22 635 45 81 Fax: (+48) 22 635 61 94 E-mail: [email protected]: http://www.gis.gov.pl

13 Please see the annexes for an example of a Polish plant health movement document



6.9 Packaging

Packaging EU

Care must be given to the packaging of products if one intends to export to the EU countries. It is obvious that the packaging must be travel-resistant. As required, products should also be protected against the elements, changes of temperature, rough handling and theft. Besides these basics issues, some importers may have specific demands concerning packaging, like information concerning the order printed on the boxes (order number, box number, name department or contact person etc.).

For environmental reasons packaging made from materials like PVC is less popular with consumers and in some cases is or will be forbidden by governments. Exporters in developing countries should be prepared to discuss this issue with potential clients and should anticipate the cost of special packaging in their selling price, if required.

The European Directive on Packaging and Packaging Waste (94/62/EC) establishes overall legislation for the treatment of packaging waste, consisting of quantitative objectives to be achieved by each of the EU member states. The member states have the responsibility to translate the Directive into national legislation.

It is becoming increasingly difficult and expensive to dispose of waste in Europe. In principle, the importer is held responsible for disposal of the packaging waste for all goods from outside the EU. It is therefore crucial, when planning exports to the EU, to take the packaging of your products (both sales packaging and transport packaging) into consideration. To fulfil the requirements of the target market, good communication with the importer about packaging is necessary.

Outer containers should bear the consignee's mark and port mark and be numbered, in accord with packing list, unless the contents can be otherwise readily identified. The following items must appear on the two vertical sides of each outer container:

the sales contract numberthe consignee's instruction numberthe import licence number (if applicable) gross and net weights

A number of issues must be addressed when selecting packaging. Broadly, they can be grouped into questions of containment for the logistics of distribution; protection to ensure the produce arrives at the point of sale in the best possible condition; marketing to present the produce in a preferred style; and environmental impact relating to the handling of the used packaging.



The manual on the Packaging of Fresh Fruit and Vegetables ITC UNCTAD/GATT introduces overseas exporters to the packaging requirements of the European markets. In particular, it deals with the questions of containment, protection and marketing which have hitherto dominated the requirements of the trade. There is now increasing pressure to create a more environmentally friendly means of handling packaging waste. Some EU governments, rather than wait for an EU wide directive, have already enacted legislation regarding packaging and packaging waste. Their common objectives include the minimisation of waste, re-use by re-cycling and safe disposal where no other use is possible.

Labeling14 All foodstuffs marketed in the European Union (EU) must comply with EU labelling rules, which aim at ensuring that consumers get all the essential information to make an informed choice while purchasing their foodstuffs.

Hence, the applicable labelling provisions are as follows:

General rules on food labellingSpecific provisions for certain groups of products:

o Labelling of Genetically Modified (GM) food and Novel Foodo Labelling of foodstuffs for particular nutritional purposeso Labelling of materials intended to come into contact with foodo Labelling of particular foodstuffs

Besides these mandatory rules, there is also additional information that may be included by the manufacturers on a voluntary basis provided that it is accurate and does not mislead the consumer. For example, nutritional labelling is not obligatory unless a nutritional claim (e.g. "low fat", "high fibre") is made on the label or in advertising material. In this case, nutritional claims must comply with a standardised format, pursuant to Council Directive 90/496/EEC (OJ L-276 06/10/1990). Similarly, Council Regulation (EEC) 2092/91 (OJ L-208 24/07/1992) sets out rules governing the use of the organic label.

General rules on food labeling

Labels of foodstuffs according to the general rules laid down by Council Directive 2000/13/EC must contain the following particulars:

The name under which the product is sold. No trademark, brand name or fancy name may substitute the generic name but rather may be used in addition. Particulars as to the physical condition of the foodstuff or the specific treatment it has undergone (powdered, freeze-dried, deep-frozen, concentrated, smoked, irradiated or treated with ionizing radiation) must be included where omission of such may confuse the purchaser.

14 Source: DG Trade



The list of ingredients, preceded by the word "Ingredients", must show all ingredients (including additives) in descending order of weight as recorded at the time of their use in the manufacture and designated by their specific name. In the case of those products that may contain ingredients liable to cause allergies or intolerances, such as alcoholic beverages, a clear indication should be given on the label by the word “contains” followed by the name of the ingredient. However, this indication will not be necessary provided the specific name is included in the list of ingredients.The net quantity of pre-packaged foodstuffs in metric units (litre, centilitre, millilitre) for liquids and (kilogram, gram) for non-liquids. The date of minimum durability consisting of day, month and year in that order and preceded by the words "best before" or "best before end" or the "use by" date for highly perishable goods.Any special conditions for keeping or use.The name or business name and address of the manufacturer, packager or importer established in the EU.Place of origin or provenanceInstructions of use, where appropriate.Indication of the acquired alcoholic strength for beverages containing more than 1.2% by volume.Lot marking on pre-packaged foodstuffs with the marking preceded by the letter "L".

These particulars must appear on the packaging or on a label attached to pre-packaged foodstuffs. In the case of pre-packaged foodstuffs intended for mass caterers (foodstuffs sold in bulk), the compulsory labeling particulars must appear on commercial documents while the name under which it is sold, the date of durability or use-by-date and the name of manufacturer must appear on the external packaging. The labeling must not mislead the purchaser as to the foodstuff’s characteristics or effects nor attribute the foodstuff special properties for the prevention, treatment or cure of a human disease. The information provided by labels must be easy to understand, easily visible, clearly legible and indelible and must appear in the official language(s) of the Member State where the product is marketed. However, the use of foreign terms or expressions easily understood by the purchaser may be allowed.

Specific provisions for certain groups of products

There are also labeling provisions which apply to specific groups of food products in order to give the consumers more detailed information on the contents and the composition of these products:

Labeling of Genetically Modified (GM) food and Novel food

Products consisting of or containing Genetically Modified Organisms (GMOs) and food products obtained from GMOs which have been authorized for the placing on



the EU market are subject to labeling requirements pursuant to Regulations (EC) 1829/2003 and 1830/2003. In the case of pre-packaged products, operators are required to state on a label that “This product contains genetically modified organisms”. This labeling obligation also applies to highly refined products (e.g. oil obtained from genetically modified maize) as well as GM additives and flavorings.

Labeling of foodstuffs for particular nutritional purposes

In addition to the rules applicable to foodstuffs in general, specific provisions (e.g. declaration of the energy value, carbohydrate, protein and fat content, etc.) for groups of foods for particular nutritional uses (baby foods, dietary foods for special medical purposes, foods for weight reduction, foods for sportspeople, etc.) are laid down in specific Directives. These products must be suitable for their claimed nutritional purposes and marketed in such a way as to indicate their suitability.

Labeling of materials intended to come into contact with food

According to Regulation 1935/2004, articles intended to come into contact with foodstuffs, including packaging materials and containers shall be labelled "for food contact" or shall bear the symbol with a glass and fork.


The contents of the label must be at least in Polish. The compliance with the labeling requirements and the accuracy of the information contained in the label can be checked at any stage of the distribution chain (e.g. customs clearance, distributor’s warehouses, wholesalers or retailers outlets …).


Ministerstwo Zdrowia (Ministry of Health) ul. Miodowa 15 PL-00-952 Warsaw Tel: (+48) 22 634 96 00 Fax: (+48) 22 634 92 13 E-mail: [email protected]: http://www.mzios.gov.pl/

Glówny Inspektorat Jakosci Handlowej Artykulów Rolno-Spozywczych (The Agricultural and Food Quality Inspection) ul. Wspólna 30 PL-00-930 Warsaw Tel: (+48) 22 621 64 21 Fax: (+48) 22 621 48 58 E-mail: [email protected]: http://www.ijhar-s.gov.pl



6.10 Required documentation for import When importing products from a third country, like Colombia, into the European Union six different documents are required;

1) Commercial invoice

The commercial invoice is a record or evidence of the transaction between the exporter and the importer. Once the goods are available, the exporter issues a commercial invoice to the importer in order to charge him for the goods. The commercial invoice contains the basic information concerning the transaction and it is always required for customs clearance. It is similar to an ordinary sales invoice, though some entries specific to the export-import trade are added. The minimum data generally included are the following:

Information on the exporter and the importer (name and address)Date of issueInvoice numberDescription of the goods (name, quality, etc.)Unit of measureQuantity of goodsUnit valueTotal item valueTotal invoice value and currency of payment. The equivalent amount must be indicated in a currency freely convertible to EUR or other legal tender in the importing Member StateThe terms of payment (method and date of payment, discounts, etc.)The terms of delivery according to the appropriate IncotermMeans of transport

No specific form is required. The commercial invoice is to be prepared by the exporter according to standard business practice and it must be submitted in the original along with at least one copy. It generally needs not be signed. In practice, the original and the copy of the commercial invoice are often signed. The commercial invoice may be prepared in any language. However, a translation into English is recommended.

2) Customs Value Declaration

The Customs Value Declaration is a document which must be presented to the customs authorities where the value of the imported goods exceeds EUR 10 000. The Customs Value Declaration must be drawing up conforming to form DV 115,

15 Please see the annexes for a sample of a DV1 form. The form can also be downloaded from the website www.europa.eu.int



laying down provisions for the implementation of the Community Customs Code. This form must be presented with the Single Administrative Document (SAD).

The main purpose of this requirement is to assess the value of the transaction in order to fix the customs value (taxable value) to apply the tariff duties.

The customs value corresponds to the value of the goods including all the costs incurred (e.g.: commercial price, transport, insurance) until the first point of entry in the EU. The usual method for establishing the Customs value is using the transaction value (the price paid or payable for the imported goods).

In certain cases the transaction value of the imported goods may be subject to adjustment which involves additions or deductions. For instance:

commissions or royalties may need to be added to the price;the internal transport (from the entry point to the final destination in the

Community Customs Territory) must be deducted.

The customs authorities shall waive the requirement of all or part of the customs value declaration where:

the customs value of the imported goods in a consignment does not exceed EUR 10 000, provided that they do not constitute split or multiple consignments from the same consignor to the same consignee,or

the importations involved are of a non-commercial nature; orthe submission of the particulars in question is not necessary for the application of the Customs Tariff of the European Communities or where the customs duties provided for in the Tariff are not chargeable pursuant to specific customs provisions.

3) Freight insurance

The insurance is an agreement by which the insured is indemnified in the event of damages due to a risk covered in the policy. Insurance is all-important in the transport of goods because of its exposure to risks during handling, storing, loading or transporting cargo, and other rare risks, such as riots, strikes or terrorism.

There is a difference between the goods' transport insurance and the carrier's responsibility insurance. The transport insurance is a contract whose covered risks, fixed compensation and indemnity are let to the holder's choice. Nevertheless, the hauler’s responsibility insurance is determined by different regulations depending on the means of transport, indemnity is limited by the weight and value of the goods and is only given if the transporter was unable to evade



responsibility. The insurance invoice is required for customs clearance only when the relevant data do not appear in the commercial invoice indicating the premium paid for insuring the merchandise. The standard extent of the transporter's responsibility is laid down in the following international conventions:

1. Road freight

International transport of goods by road is governed by the Convention for the Contract of the International Carriage of Goods by Road (CMR Convention) signed in Geneva in 1956.

Under this Convention, the road hauler is not responsible for losses of or damages to the goods if he proves that they arise from:

the merchandise's own defect(s);force majeure;a fault by the loader or consignee.

There is no European Union's regulation regarding indemnifications for road freight.

2. The rail carrier

International transport of goods by rail is regulated by the Conventionconcerning Intercarriage by Rail (CIM Convention), signed in Bern in 1980.

The rail carrier is not responsible for losses of or damages to the goods if he proves that they arise from:

the merchandise's own defect(s);force majeure;a fault by the loader or consignee.

With reference to compensation, there is currently no European regulation. Indemnification is normally limited to a maximum amount per gross kilo lost or damaged. This system means that, for the most part, the company is unlikely to receive anything approaching the value of its goods.

3. The shipping company

The 1968 International Convention on Bill of Lading, better known as "The Hague Rules" or the "Brussels Convention" dictates the marine carrier's responsibilities when transporting international goods.

The shipping company is not responsible for losses of, or damage to, the goods if it proves that they arise from:



the merchandise's own defects and loss in weight during transport;a nautical mistake by the crew;a fire;if the ship is not seaworthy;force majeure;strikes or a lock-out; a mistake by the loader;hidden defects on board ship, which went unnoticed during rigorous inspection;an attempt to save lives or goods at sea.

As far as compensation is concerned, there is currently no harmonization at the European Union level. It is normally limited to a certain sum per kilogram of lost or damaged goods. This system causes the same problems as with rail accidents, the exporter is likely to lose much of the value of the goods.

4. The air carrier

The 1929 Warsaw Convention as well as the Montreal draft Treaty of 1975determines that the air carrier is not responsible for damages or loss of goods if it is proved that:

the carrier and associates took all the measures necessary to avoid the damage or that it was impossible for them to be taken (force majeure);the losses arise from a pilotage or navigation mistake;the injured party was the cause of the damage or contributed to it.

Concerning the injured party's indemnification, there is no European standard. Compensation is normally limited to a set amount per gross kilogram of damaged or lost goods.

The air carrier can state specific reservations at the time of receiving the cargo. These reservations will be written on the air consignment note (ACN) (air transport contract) and will be used as evidence. However, airlines will normally refuse dubious packages or those not corresponding to the ACN.

4) Customs Import Declaration (SAD)

All goods imported into the European Union (EU) must be declared to the customs authorities of the respective Member State using the Single Administrative Document (SAD)16, which is the common import declaration form for all the Member States, laid down in the Community Customs Code (Regulation (EEC) 2913/92.

16 See annexes. The form can also be downloaded from the website www.europa.eu.int.



The declaration must be drawn up in one of the official languages of the EU which is acceptable to the customs authorities of the Member State where the formalities are carried out.

The SAD may be presented either by:

Using an approved computerised system linked to Customs authorities; orLodging it with the designated Customs Office premises.

The main information that shall be declared is:

Identifying data of the parties involved in the operation (importer, exporter, representative,....)Custom approved treatment (release for free circulation, release for consumption, temporary importation, transit,....) Identifying data of the goods (Taric code, weight, units), location and packagingInformation referred to the means of transportData about country of origin, country of export and destinationCommercial and financial information (Incoterms, invoice value, invoice currency, exchange rate, insurance...) List of documents associated to the SAD (Import licenses, inspection certificates, document of origin, transport document, commercial invoice...) Declaration and method of payment of import taxes (tariff duties, VAT, Excises, etc)

The SAD set consists of eight copies, the operator completes all or part of the sheets depending on the type of operation.

In the case of importation generally three copies shall be used: one is to be retained by the authorities of the Member State in which arrival formalities are completed, other is used for statistical purposes by the Member State of destination and the last one is returned to the consignee after being stamped by the customs authority.

Documents associated to the SAD

According to the operation and the nature of the imported goods, additional documents shall be declared with the SAD and shall be presented together with it. The most important documents are:

Documentary proof of origin, normally used to apply a tariff preferential treatmentCertificate confirming the special nature of the productTransport DocumentCommercial Invoice



Customs Value Declaration Inspections Certificates (Health, Veterinary, Plant Health certificates)Import LicensesCommunity Surveillance DocumentCites CertificateDocuments to support a claim of a tariff quotaDocuments required for Excises purposesEvidence to support a claim to VAT relief

5) Freight documents

Depending on the means of transport used, the following documents are to be filled in and presented to the customs authorities of the importing European Union (EU) Member State (MS) upon importation in order for the goods to be cleared:

Bill of LadingFIATA Bill of LadingRoad Waybill (CMR) Air Waybill (AWB)Rail Waybill (CIM)ATA Carnet TIR Carnet

Bill of Lading

The Bill of Lading (B/L) is a document issued by the shipping company to the operating shipper which acknowledges that the goods have been received on board serving as proof of receipt of the goods by the carrier obliging him to deliver the goods to the consignee. It contains the details of the goods, vessel and port of destination. It evidences the contract of carriage and conveys title to the goods, meaning that the bearer of the Bill of Lading is the owner of the goods.

The Bill of Lading may be a negotiable document. A number of different types of bills of lading can be used. "Clean Bills of Lading" state that the goods have been received in an apparent good order and condition. "Unclean or Dirty Bills of Lading" indicate that the goods are damaged or in bad order, in this case, the financing bank may refuse to accept the consignor's documents.

FIATA Bill of Lading

The FIATA Bill of Lading is a document designed to be used as a multimodal or combined transport document with negotiable status which has been developed by the International Federation of Forwarding Agents' Associations (FIATA).



Road Waybill (CMR)

The road waybill is a document containing the details of the international transportation of goods by road, set out by the Convention for the Contract of the International Carriage of Goods by Road 1956 (the CMR Convention). It enables the consignor to have the goods at his disposal during the transportation. It must be issued in quadruplicate and signed by the consignor and the carrier. The first copy is intended for the consignor; the second remains in the possession of the carrier; and the third accompanies the goods and is delivered to the consignee. Usually, a CMR is issued for each vehicle.

The CMR note is not a document of title and is non-negotiable.

Air Waybill (AWB)

The air waybill is a document proving the transport contract between the consignor and the carrier's company. It is issued by the carrier's agent and falls under the provisions of the Warsaw Convention. A single air waybill may be used for multiple shipments of goods; it contains three originals and several extra copies. One original is kept by each of the parties involved in the transport (the consignor, the consignee and the carrier). The copies may be required at the airport of departure/destination, for the delivery and in some cases, for further freight carriers. The air waybill is a freight bill which evidences a contract of carriage and proves receipt of goods...

The IATA Standard Air Waybill is used by all carriers belonging to the International Air Transport Association (IATA) and it embodies standard conditions associated to those set out in the Warsaw Convention.

Rail Waybill (CIM)

The rail waybill (CIM) is a document required for the transportation of goods by rail. It is regulated by the Convention concerning International Carriage by Rail 1980 (COTIF-CIM). The CIM is issued by the carrier in five copies, the original accompanies the goods and the duplicate of the original is kept by the consignor and the three remaining copies are intended for internal purposes of the carrier. It is considered the rail transport contract.

ATA Carnet

ATA carnets are international customs documents issued by chambers of commerce in most major countries throughout the world for the purpose of allowing the temporary importation of goods, free of customs duties and taxes. ATA carnets can be issued for the following categories of goods: commercial



samples and advertising film, goods for international exhibition and professional equipment.17

TIR Carnet

TIR carnets are customs transit documents used for the international transport of goods a part of which has to be made by road. They allow the transport of goods under a procedure called the TIR procedure, laid down in the 1975 TIR Convention, signed under the auspices of the United Nations Economic Commission for Europe (UNECE)18

The TIR system requires that the goods travel in secure vehicles or containers, all duties and taxes at risk throughout the journey are covered by an internationally valid guarantee, the goods are accompanied by a TIR carnet, and customs control measures in the country of departure are accepted by the countries of transit and destination.

6) Packing list

The packing list (P/L) is a commercial document accompanying the commercial invoice and the transport documents, and providing information on the imported items and the packaging details of each shipment (weight, dimensions, handling issues,etc.)

It is required for customs clearance as an inventory of the incoming cargo.

The data generally included are:

Information on the exporter, the importer and the transport companyDate of issueNumber of the freight invoice Type of packaging (drum, crate, carton, box, barrel, bag, etc.)Number of packagesContent of each package (description of the goods and number of items per package)Marks and numbersNet weight, gross weight and measurement of the packages

No specific form is required. The packing list is to be prepared by the exporter according to standard business practice and it must be submitted in the original along with at least one copy. It generally needs not be signed. However, in practice, the original and the copy of the packing list are often signed. The packing 17 Further information may be obtained in the International Chamber of Commerce's website: http://www.iccwbo.org/index_ata.asp18 Website; http://www.unece.org/trans/bcf/tir/welcome.html.



list may be prepared in any language. However, a translation into English is recommended.

6.11 Import modalities or regimes involved in the process

Phitosanitary inspections on tropical fruit can only take place at certain border points. The relevant crossing points are shown below.

Table 6.10.1 Border crossing points where phitosanitary inspections of plants can take place

Voivodship Bordercrossing

point

Address of local office

Phone/fax/e-mail Workinghours

Szczecin(shipping)

70-603Szczecinul. Bytomska 14

tel. 0-91 430-83-48 0-91 462-48-32 fax 0-91 [email protected]

Monday–Sunday:7.30-19.30

zachodniopomorskie

winoujscie (shipping)

72-600Swinoujscie ul . Dworcowa 1

tel./fax 0-91 321-50-26 [email protected]

On call

Gdansk(shipping)

80-563Gdanskul. Oliwska 21/23

tel. 0-58 343-15-78 fax 0-58 [email protected]

Monday–Sunday:7.30 - 19.30

pomorskie

Gdynia(shipping)

81-336Gdyniaul . Dokerów 5

tel. 0-58 620-40-92 tel./fax 0-58 [email protected]


Braniewo(railwaytransport)

14-500BraniewoPlacPilsudskiego 2


Monday - Friday:7.30-15.30on call

warminsko-mazurskie

Bezledy(roadtransport)

11-220Bezledy



podlaskie KuznicaBialostocka(railway and roadtransport)

16-123KuznicaBialostockaul . Grodzienska

tel./ fax 0-85 [email protected]

24 hours a day



Voivodship Border crossing

point

Address of local office

Phone/fax/e-mail Working hours

4Bobrowniki(roadtransport)

16-040Gródek

tel./fax 0-85 718-03-46 24 hours a day

Koroszczyn (roadtransport)

Malaszewicze (railwaytransport)

21-540Malaszewiczeul . Kolejarzy 19

tel./fax 0- 83 [email protected]

tel./fax 0-83 [email protected]


Dorohusk(railway and roadtransport)

22-175Dorohusk

tel./ fax 0-82 [email protected]


lubelskie

Hrubieszów(railwaytransport)

22-500Hrubieszówul. Nowa 100

tel./fax 0-84 [email protected]


podkarpackie Korczowa(roadtransport)

37-552 Mlyny tel./fax 0-16 [email protected]

24 hours a day

mazowieckie (air transport) 02-158Warszawaul . Wirazowa 35

tel./fax 0-22 606-93-03tel./fax 0-22 [email protected]

Monday– Friday: 7.30-15.30Saturday:8.00-13.00SundayandHolidays– on call

Source: State Plant Heath and Seed Inspection Service (pl. Pa stwowa Inspekcja Ochrony Ro lin i Nasiennictwa)

What might be interesting for exporters of goods to the EU to know, is the fact that there are so called free zones. These are special areas within the customs territory of the Community (EU). Goods placed within these area are free of import duties, VAT and other import charges. Free zone treatment applies to both Community and non-Community goods. Non-Community goods stored in the zone are perceived as not yet imported into the Customs territory.



With regards to the import of goods, free zones are mainly destined for storage of non-Community goods until they are released for free circulation. No import declaration has to be lodged as long as goods stay at free zone storage. In addition, there may be special relieves available in free zones from other taxes, excises or local duties. The free zones are mainly a service for traders to facilitate trading procedures by allowing fewer custom formalities.

List of free trade zones in Poland can be found on the website:http://europa.eu.int/comm/taxation_customs/customs/procedural_aspects/imports/free_zones/index_en.htm and also in the table beneath:

Table 6.10.2 Free zones in Poland

FREE ZONE (CONTROL TYPE 1) ADDRESS OF CUSTOMS AUTHORITY (ART.804 CCIP)

WOLNY OBSZAR CELNY na terenie Mi dzynarodowego Portu Lotniczego Warszawa Ok cie ul. Zwirki i Wigury 1 PL-00-906 WARSZAWA

Izba Celna w Warszawie ul. Modli ska 4 PL-03-016 WARSZAWA

WOLNY OBSZAR CELNY w Gliwicach ul. Portowa 28 PL-44-100 Gliwice

Izba Celna w Katowicach Plac Grunwaldzki 8-10 PL-40-127 Katowice

WOLNY OBSZAR CELNY w Terespolu ul. Wojska Polskiego 47 PL-21-550 Terespol

Izba Celna w Bia ej Podlaskiej ul. Pó nocna 19 PL-21-500 Bia a Podlaska

WOLNY OBSZAR CELNY w Szczecinie ul. Bytomska 7 PL-70-603 Szczecin

Izba Celna w Szczecinie ul. Energetyków 55 PL-70-952 Szczecin

WOLNY OBSZAR CELNY w winouj ciuul. Jana Soltana 1 PL-72-602 winouj cie

Izba Celna w Szczecinie ul. Energetyków 55 PL-70-952 Szczecin

WOLNY OBSZAR CELNY w Gda sku ul. Zamkni ta18 PL-80-955 Gda sk

Izba Celna w Gdyni ul. Polska 8 PL-81-339 Gdynia

WOLNY OBSZAR CELNY w Mszczonowie ul. Fabryczna 6/10 PL-96-320 Mszczonów

Izba Celna w Warszawie ul. Modli ska 4 PL-03-016 WARSZAWA

Source: www.europa.eu.int



6.12 Requirements for import of samples and accompanied luggage

The requirements for the import of samples are the same as for the general importof tropical fruit, because fruit is a consumable product.19

6.13 Website links to rules and regulations

http://europa.eu.int/comm/taxation_customs/dds/en/qotcau.htm- The quotas page of EU

http://www.cs.mfcr.cz/info/taric/taric2005.pdf EU Tariff schedule – TARIC - Integrated Tariff of the European Community

http://europa.eu.int/comm/taxation_customs/dds/cgi-bin/tarchap?Lang=EN - The page of TARIC provides calculation of duty rates

http://europa.eu.int/comm/taxation_customs/customs/customs_duties/rules_origin/index_en.htm

http://www.srs.cz- The State Phytosanitary Administration

http://europa.eu.int/scadplus/leg/en/lvb/l11060.htm- Common Organization of the Agricultural Markets

http://www.maxhavelaar.nl- Max Havelaar Foundation

19 Source: Dutch Customs Office



6.14 Flow chart of the process and related costs

Figure 6.14.1 Flow chart of the process and related costs

Customs guarantee

Source: Calculation by EUNITE BV

In general, only EU entities can clear goods for customs in Poland. Non-EU entities can carry out customs proceedings only on goods under the transit regime or under temporary admission. In other cases, foreign entities can clear goods for Polish customs only in exceptional cases with the permission of the Customs Office.

A foreign company exporting to Poland and wishing to import into the country must either establish a Polish subsidiary to handle importation or engage a customs agent to handle customs proceedings. It is usual practice that the Polish purchaser of imported goods will handle the customs proceedings.

When imported goods reach the EU border, they are released to the transit regime. The customs debt (all import duties that would apply on import under free circulation) must be secured with a customs guarantee at this time. The goods must then be transported to the inland Customs Office of final destination without delay. Here the goods are declared for the chosen customs regime based on the customs declaration filed by the importer (or his customs agent). The final customs debt assessed by the Customs Office is either paid or guaranteed, depending on the import regime and the conditions negotiated with the Customs Office.

Goods

and

Customs agent or Polishsubsidiary

Handling of customs proceeding

Declarationfor the chosencustoms regime

The duties are paid or the custom debt is secured

Confirmation ofcustoms declarationthat serves as VATdocumentation

Transportation of goods to the inland Customs Office

Importdocuments



If import duties are properly paid (or the customs debt is secured), the Customs Office issues a confirmed customs declaration, which serves as a VAT document for the reclaiming of import VAT. In general, import VAT is applied on the total declared customs value of imported goods and the applicable amount of customs duty and any other charges levied by the Customs Office (e.g., excise duty).

From 1 January 2005, importers can reclaim the amount of import VAT paid, by including the amount in their regular VAT returns, provided the importer is registered for Polish VAT.

VAT rates are the same as for domestic products, currently 22%, 7% or 3%). Importers registered for Polish VAT can normally recover import VAT costs, provided a valid customs declaration (tax document) is obtained from the Customs Office.

Information on tariffs is given in paragraph 6.2.

Table 6.14.2 Polish VAT rates for tropical fruit

CN Code Tropical fruit VAT Rate 080450 Guavas, mangos etc. 7%080720 Papayas 7%

08109040 Passion fruit, carambola and pitahaya

22%

Source: Polish customs office

6.15 Recommendations

Colombian suppliers need to be aware that they have to possess a sanitary certificate from the country of origin to be able to import their produce into Poland. Transportation is very significant as well and has to be arranged in such a way that fruit enter Polish territory through a cross border point where a sanitary inspection is held.

Documents requested to export goods to Poland are: invoice, certificate of origin and (phitosanitary) certificate of health issued by Colombian authorities. On the Polish customs clearance all the documents will be verified and necessary customs duties and taxes will be calculated. The customs office has the right to take samples for testing. Procedure of custom clearance is finished when all taxes and tariffs are paid.

The paragraph mentioned above consists of the most important information about the documents and law requirements for Colombian fruit exporters.


7. Physical Access

7.1 Available transportation infrastructure

Poland has developed all types of transportation infrastructures: roads network, railways, airports connections as well as sea ports.

Picture 7.1. Polish roads network

Source: www.gddkia.gov.pl



Picture 7.1.2. Polish roads - January 2005


Picture 7.1.3. Polish roads – executed projects and plans




Picture 7.1.4. Polish railroads network

Source: PKP (Polish State Railroads)



Picture 7.1.5. Airports in Poland

Source: http://www.lemon.travel.pl/samoloty/lotniska/polskie.jpg

International airport im. Fryderyka Chopina in Warsaw ul. wirki i WiguryWarszawatel.: +48 (22) 650 42 20

www.lotnisko-chopina.pl

International airport im. Jana Paw a II Kraków - Balice Sp. z o.o.ul. Kpt. M. Medweckiego 1 32-083 Balice tel.: +48 (12) 639 30 00 fax: +48 (12) 411 79 77

www.lotnisko-balice.pl

Górno l skie Towarzystwo Lotnicze S.A. Internation Airport KatowiceAl. Korfantego 3840-161 Katowice tel.: +48 (32) 201 06 33 fax: +48 (32) 201 06 34

www.gtl.com.pl



Airport Pozna - awica Sp. z o.o.ul. Bukowska 285 60-189 Poznatel.: +48 (61) 849 20 00 fax: +48 (61) 849 23 17

www.airport-poznan.com.pl

Airport Gda sk Sp. z o.o.ul. S owackiego 200 80-298 Gda sktel.: +48 (58) 348 11 54 fax: +48 (58) 345 22 83

www.airport.gdansk.pl

Airport ,,Mazury-Szczytno'' Sp. z o.o. w SzczytniePort Lotniczy Szczytno-Szymanyul. Wielbarska 5 12-100 Szczytno tel.: +48 (89) 624 32 81 fax: +48 (89) 624 22 94

www.airport.szczytno.pl

Airport Wroc aw S.A.ul. Skar y skiego 3654-530 Wroc awtel.: +48 (71) 358 11 00, 358 13 10fax: +48 (71) 357 39 73

www.airport.wroclaw.pl

Lublinek Sp. z o.o.ul. Gen. S. Maczka 35 94-328 ódtel.: +48 (42) 688 84 14 fax: +48 (42) 688 83 84

www.airport.lodz.pl

Airport Zielona Góra-Babimostskr. pocztowa 4 6-110 Babimost tel.: +48 (68) 351 23 00 fax: +48 (68) 351 27 29

Airport Rzeszów-Jasionka36-002 Jasionka 942 tel.: +48 (17) 852 00 81 fax: +48 (17) 852 07 09



Airport Bydgoszcz S.A.ul. Grodzka 12 85-109 Bydgoszcz tel.: +48 (52) 345 95 96 fax: +48 (52) 322 52 32

Airport Szczecin-Goleniów Sp. z o. o.72-100 Goleniów tel.: +48 (91) 418 28 64 fax: +48 (91) 418 33 83

www.airport.com.pl

There are 4 big marine ports in Poland: Gda sk, Gdynia, winouj cie, Szczecin and 8 small ones: Dar owo, Elbl g, Hel, Ko obrzeg, eba, Police, W adys awowo, Ustka.

Chart 7.1.6. Cargo handling In Polish marine ports

Cargo handling 2003 [thous. tons]

Coal:

Gda sk 5926

Gdynia 1442

Szczecin i 5943winouj cie

Total: 13311

Ore:

Gda sk 99

Gdynia 0




Total:2107

Other mass:

Gda sk 2582

Gdynia 1776


Total: 6332

Corn:

Gda sk 397

Gdynia 872


Total: 2248

Wood:

Gda sk 2

Gdynia 162


Total: 197



Package freight:

Gda sk 2295

Gdynia 7107


Total: 13986

Liquid fuels:

Gda sk 9991

Gdynia 297


Total: 10413

Source: Central Statistical Office (GUS), 2003

Chart 7.1.7.Nr. of Ships entering Polish marine ports in 2002 Gda sk 2506

Gdynia 3483

Ko obrzeg 353

Police 269

Szczecin 3493



winouj cie 9950

Total: 30212Source: Central Statistical Office (GUS), 2003

7.2 Identification of ports, airports, roads – border passes – railways, waterways

Freight from overseas importers of tropical fruits is often shipped to one of the big European ports and then forwarded to Poland by land. The transportation from Colombia to the Polish ports Gdansk, Gdynia and Swinoujscie takes approximately 27 days.

Table 7.2.1. Methods of transportation from Colombia

Method of Transportation

Time of delivery

Security Factor

CostFreight

Capacity

Air freightSea freightBy sea/air

2 days

28-30 days

18-20 days

Excellent

Insufficient

Excellent

Expensive

Cheap

Expensive

Often difficult

Sufficient

Not always Source: www.usergioarboleda.edu.co

Rotterdam in the Netherlands and Bremerhaven in Germany are two big centers where fruit is sold. Two terminals for fresh fruit are located in Bremerhaven, where reefer ships and containers can be dispatched. Besides of distribution services, fruit requires temperature control. In Bremerhaven special ships, containers, railcars and trucks are available for fruit transport. Coldstores are used and the grade of ripening is monitored. Controlled atmosphere, created by adding nitrogen to the air in cooling chambers, influences the ripening process to meet the demand of the market. If required, ripening chambers of Bremerhaven Banana Terminal can speed-up ripening.

Transport of fruit in reefer containers by and train can be an alternative for the transport of fruit by road. Another advantage is that combined transport is a closed chain, which ensures the freshness of the products. It is estimated, that the use of reefer containers in closed logistical chains will continue to increase the coming years. Because the durability of products is extended, the need of fast transport decreases. As a result, for the transport of fresh products deep sea is chosen more often.



Figure 7.2.2.1 Distances from the most important logistic places in the Netherlands and Germany to Warsaw.

Place Country Distance to Warsaw (km) Driving time

Rotterdam The Netherlands 1301 13 h. 35 min

Hamburg Germany 747 7 h. 43 min

Bremerhaven Germany 840 8 h. 36 min Wilhelmshaven Germany 883 9 h. 19 min

Transportation by trucks within Europe is very popular due to its low costs. The transportation from the Netherlands to Poland takes approximately two days. Dutch and Polish truckers operate a vast network of cooling trucks with numerous daily departures. Virtually all European competitors use roads and rails to transport their goods within the EU. The Polish transportation infrastructure is below the level of the Western countries, however still reliable and secure.

7.3 Description of status, operation, security, costs, distances, transportation arrangements and intercommunity customs

It is also possible to use air transportation for tropical fruit products from Colombia to Poland.

LOT, the Polish airlines, is able to arrange all the flights from Colombia to Poland. The air freight would approximately take 17 to 26 hours from Bogota, via New York to Warsaw or Cracow. The loading takes place in one of the two available airports in NY: JFK Airport or EWR Newark Airport. The shortest recommended operating time needed for the transit in NY is 4 hours. The trans-shipment is organized by handling agents, specialized companies that deal with loading and redirecting it. The transportation order should be delivered to the company that deals with the logistics. This is usually Cargo Agent or Airfreight Forwarder. The route of the transport should be included in the order, with the indication of each involved carrier. The sender as well as the receiver of the transported goods is obliged to possess permissions, export/import licenses that are subjects to customs law and sanitary rules in each country of transit.

Rates and charges published by the airline are based on the units of measurement. They cover only the carriage of consignment between airports. Such charges do not include the following services and charges: pick-up and delivery, storage, insurance, customs clearance, disbursements, airport taxes and charges, expenses for the repairing of faulty packing and other similar advanced charges. These arrangements and costs are negotiated separately on the basis of an individual order. Prices depend on the amount of the transported goods, weight, frequency of orders, but also on the person negotiating the rates. Agents



from the logistics centres are the most suitable persons to arrange these rates with.

The other airline, KLM Cargo is operating on the route Amsterdam – Warsaw. KLM as well as LOT offers flights from Amsterdam to Warsaw 3 times a day. The rates and general conditions from KLM Cargo are valid on the services within the current KLM Cargo network. All shipments are governed by the General Conditions of KLM Cargo. KLM states that the amount of goods transported from Amsterdam to Poland by air is very limited due to the high air cargo transport cost versus the low trucking costs. The transportation costs are less than 25% of the air cargo costs. Furthermore, there is no container air cargo capacity between Amsterdam and Warsaw, only loose belly capacity. The operating time by air is 2 hours.

7.4 Identification of other handling and distribution infrastructure

The sea connections from Colombia to Poland:

The sea service is provided by domestic companies only for the route Poland-Colombia. It is the international operators that deal with the transportation from Colombia to Europe.

Table. 7.4.1. Sea connections from Gda sk port to Colombia

Destination Carrier Frequency Type of cargo AgentBarranquilla Venbulk

ServiceGmbH

Every 6th

weekContainers/package

freightMAG

Source: www.portgdansk.pl

Table. 7.4.2.Sea connections from Gdynia port to Colombia

Destination Carrier Frequency Type of cargo

Agent

Cartagena Conti Lines Month Conv. OkmaritBarranquila Spliethoff Month Conv. Pomorscy

Maklerzy Okr towi

Turbo Spliethoff Month Conv. Pomorscy Maklerzy Okr towi

Source: www.port.gdynia.pl

These Polish agents arrange transportation of goods such as steel and metal equipment. This is called conventional cargo and is packed as loose cargo and transported on pallets not in the containers. Transportation by sea from Colombia to Poland is offered by:



Maersk Sealand. As a leading, world-class ocean carrier, they offer second to none door-to-door transportation service. With more than 300 container vessels, one million containers and own terminals, trucks and trains they ensure getting a reliable worldwide coverage. Their offices in more than 125 countries ensure that the cargo will receive an excellent service in all corners of the world.

Table 7.4.3. Transit time and possible schedule from Cartagena to Gdynia

LOCATIONS SCHEDULE 1 SCHEDULE 2

Cartagena,CO

Dep.:By:Lloyds no.: Voyage no.: Build year:

30.Jun.05(Thu)AURETTE A924228505202002

08.Jul.05(Fri)ROTHORN9126986 05201996

Manzanillo, PA Arr.:

Dep.:By:

Lloyds no.: Voyage no.: Build year:

02.Jul.05(Sat)

04.Jul.05(Mon)JEPPESENMAERSK921516505102001

09.Jul.05(Sat)

11.Jul.05(Mon)OLIVIA MAERSK

9251638 05102003

Bremerhaven,DE

Arr.:

Dep.:By:Lloyds no.: Voyage no.: Build year:

20.Jul.05(Wed)

26.Jul.05(Tue)FELICITAS

05231996

27.Jul.05(Wed)

02.Aug.05(Tue)FELICITAS

05251996

Gdynia, PL Arr.: 28.Jul.05(Thu) 04.Aug.05(Thu)Transit time: 28 days 27 days Container type: Dry, Reefer Dry, ReeferSource: www.maersksealand.com



Picture 7.4.4. The route from Colombia to Poland

Source: www.maersksealand.com

MSC Mediterranean Shipping Company S.A., of Geneva, Switzerland is a privately owned shipping line, founded in 1970, which has rapidly grown from a small conventional ship operator to become one of the leading global shipping lines of the world. During recent years MSC's maritime fleet has expanded substantially to consolidate its position in 2003 as the 2nd largest carrier in respect of container slot capacity and of the number of container vessels operated. MSC operates in excess of 255 container vessels with an intake capacity of 670,000 TEUs. MSC provides an unparalleled service network via dedicated own offices throughout the world and remains a truly independent and private company able to respond quickly to market changes and implement long term plans, without unnecessary interference or delay. With a streamlined management structure in Geneva, MSC has become a leading customer focused and cost effective global transportation solution for many shippers.

MSC prices are slightly higher than Maersk Sealand rates.



7.5 Identification of carriers that transport goods imported from Colombia

The providers of air connections from Colombia to Poland and from the Netherlands to Poland are:

LOT – Polish Airlines KLM – Royal Dutch Airlines

The providers of road transportation throughout Europe are:

Fresh logistics (Raben-Group) - developed, as one of the first logistic companies, a special dedicated system for fresh products. The quality of performed services was confirmed by obtaining a HACCP certificate. The modern solutions guarantee the highest quality of servicing the market, flexible reaction to its needs, faster and prompt deliveries, professional stock management and detailed administration. Fresh Logistics delivers goods of various volumes to indicated addresses - from one consignment to full truck loads. Domestic deliveries to retail-, wholesale- and network consignees are executed on the next working day. The company offers services of international forwarding of consignments:

- groupage loads from 50 to 3 000 kg (fresh products from +2 to +6°C)- part loads over 3 000 kg (fresh products from +2 to +6°C)- full truck loads (frozen products, fresh products from +2 to +6°C, food products with various temperature ranges: -18°C; +12°C; +18°C)For more information please see: www.freshlogistics.com or the carrier website www.raben-group.comCargo Sped - Cargo Sped specializes in forwarding of all types of freights. They offer road, railway and sea transportation services for export, import, transit and domestic traffic. The trans-shipment services at the borders, in the harbors and terminals are also offered. It also arranges agency services in customs and administrative matters, cargo insurance and customs securities.AXA – AXA company was established in the year 1991, and since then it developed and improved the quality of services that are offered to customers. The experienced personel and the variety of transportation which might be suitable to the individual needs of clientele are some of the features they provide. Known as reliable, dynamic company. Promptness in picking up the cargo from the loading up places and delivering it to their destinations is company goal. It specializes in the transportation all over Europe and CIS countries.



7.6 International Freight or Transportation Costs

SEA TRANSPORTATION: The costs of transportation are based on the container’s size. Maersk Sealand offers containers as follows:

Table 7.6.1 Description of containers

Dry/steel

Type Size m3 ft3

» 20' standard 20' x 8' x 8'6" 33 1,170

» 40' standard 40' x 8' x 8'6" 67 2,390

» 40' high 40' x 8' x 9'6" 76 2,714

» 45' high 45' x 8' x 9'6" 85 3,040

Dry/aluminium

Type Size m3 ft3

» 45' high 45' x 8' x 9'6" 86 3,071


Maersk Sealand's dry containers come in several sizes and designs: 20' with a payload of up to 28.3 metric tonnes40' - both 8'6" and 9'6" high cube - with a payload of up to 30.4 metric tonnes45' - 9'6" high cube - with a total capacity of 86 cubic metres



Table 7.6.2 the base freight for the routes from Colombia to Poland for 20’container

Siz. BaseFreight Orig Dest Comm Exp. Date

20 €1373.98

BARRANQUILLA (port), COLOMBIA

GDYNIA (port),

POLAND

DRY CARGO : CLASS 1 COMMODITIES 31Jul2005

20 €1382.11

CARTAGENA (port), COLOMBIA

GDYNIA (port),

POLAND


20 €1463.41


GDANSK (port),

POLAND


20 €1463.41

BUENAVENTURA (port), COLOMBIA

GDYNIA (port),

POLAND


20 €1382.11


SZCZECIN (port),

POLAND


20 €1544.72


GDANSK (port),

POLAND


20 €1439.02


GDANSK (port),

POLAND


20 €1382.11


SZCZECIN (port),

POLAND


20 €1463.41


SZCZECIN (port),

POLAND



Table 7.6.3 Additional charges Ocean Freight € 1382.11 per Container

Redefining Basic Ocean Freight TLI Rate CARRIER SECURITY CHARGE € 4.88

BAF-NCSA To Europe (BAF) € 56.91 PORT SECURITY CHARGE € 2.44

DOCUMENTATION FEE - DESTINATION € 12.20 DOCUMENTATION FEE - ORIGIN € 40.65

=========== Total Charges € 1501.75

Source: www.maersksealand.com, charges as of 27 July 2005

The above rate quotation is valid for 30 days. All rates published in the tariff at the time of receipt of cargo will be applicable and supersede the above quoted rates. Rate quote may not include local destination charges such as but not limited to:



Cleaning, Port fees, Primage, Overweight charges, Documentation fees, or Customs inspections. These fees may be assessed to and settled locally by the cargo receiver.

Seagoing vessels in Gda sk port:

Tonnage Dues for Seagoing Vessels in Gda sk port are described below: (for more information see http://www.portgdansk.pl/index.php?id=charges&lg=en )Tonnage dues for entry of seagoing ship to port and departure of ship from port, transit through port area, and assurance of ship waste reception for recycling or treatment (excluding ships specified in § 5) per 1 GT:

No. Ship size and type Fee(EUR/1 GT)

1 Car carrier 0.142 General cargo vessel 0.453 Reefer carrier 0.524 Container vessel 0.225 "Ro-Ro" ship 0.206 Bulk carrier 0.517 Passenger ship 0.138 Ferry 0.099 Passenger - cargo ship 0.0910 Tanker up to 38.000 GT 0.5711 Tanker over 38.000 GT 0.6412 Towing and pushing vessels 0.4813 Other seagoing ships 0.45

Tonnage dues for line shipping and ferries entering port: at least 8 times a week amount to 40% at least 6 times a week amount to 45% at least 4 times a week amount to 50% 3 times a week amount to 60% 2 times a week amount to 65% 1 once a week amount to 70% less than once a week amount to 75%



of the pertinent fee rate specified in clause 1.

For seagoing new buildings and newly constructed hulls leaving port or shipyard, arriving for repair, conversion, dismantling, scrapping, performance of towing power tests or bunkering fuel or provisions or equipment, and not involved in commercial activity, if their stay in port or shipyard is limited to the time necessary to perform these action, the charge amounts to 25% of the pertinent fee rate specified in clause 1. For vessels staying in the roadstead for loading or discharging cargo or for passenger clearance the charge is 50% of the fee stipulated in clause 1. For seagoing ship entering the port for other than commercial purposes the charges amount to 25% of the pertinent rate specified in clause 1. For ships passing in transit through the port area and not conducting commercial activity, fees are charged for one way passage and amount to 50% of the pertinent fee rate specified in clause 1. Seagoing ships involved in commercial activity and next proceeding to the shipyard, or involved in commercial activity on leaving the shipyard, are charged with full tonnage dues.

Tonnage Dues for Seagoing Vessels in Gdynia port are described below20:

1. The following are the tonnage due charged for:No. Type and size of vessel Amount of due [EUR/1

GT]1. Car carriers 0,182. General cargo vessels 0,493. Reefer vessels 0,494. Container vessels 0,315. "Ro-ro" vessels 0,266. Bulk carriers 0,527. Passenger and cruise vessels 0,138. Ferries 0,139. Tankers 0,5910. Tugs, pusher-tugs, push trains and towing

trains0,40

11. Fishing vessels and boats less than 35 m 0,00

12. Other seagoing vessels 0,49

2. Tonnage due for seagoing liners and ferries entering the port: a) at least 8 times a week amount to 40%, b) at least 6 times a week amount to 45%, c) at least 4 times a week amount to 50%, d) 3 times a week amount to 60%, e) twice a week amount to 65%,

20 For more information see www.port.gdynia.pl110 Proexport Colombia


f) once a week amount to 70%, g) less than once a week (but not less than once a month) amount to 75% of the relevant rate of dues specified in § 3 Section 1.

3. The amount of the tonnage due charged for the seagoing vessels carrying homogeneous cargo to/from Gdynia and with a frequency of not less than 8 calls a quarter - is 80 % of the relevant rate of the due specified in § 3 Section 1. The reduction of dues is granted, provided that the Port accepts the service declared by the ship operator.

4. For the seagoing vessels which are newly built and for the vessels calling at the port or at a shipyard with the purpose of repair, conversion, demolition, ship breaking, refuelling, replenishment of provisions or equipment materials or crew replacement and which do not perform any commercial operations - if they stay in port or in shipyard is only for the time necessary to perform the above mentioned operations - the amount of due charged is 25% of the relevant rate specified in Section 1 above.

5. For the seagoing vessels calling for a stay in the port without performing any commercial operations, the amount of due charged shall be 25% of the rate specified in Section 1 above.

6. The seagoing vessels which perform commercial operations in the port and then go to a shipyard or the other way around, shall be charged the full tonnage due.

AIR TRANSPORTATION: The arrangements and costs are negotiated separately on the basis of an individual order. General costs of air freight in LOT Cargo, from Amsterdam to Warsaw are calculated in the following way:

Based cost B is EUR 34,03 which is a fixed cost Each kilogram of the parcel is counted EUR 1,56.

In the case of a long-term partnership there is a possibility to negotiate the prices.

ROAD TRANSPORTATION:

Following prices (per truck) and time of the delivery for the distance from the Netherlands to Poland:

Amsterdam – Warsaw EUR 1000 Amsterdam – Pozna EUR 1200



7.7 Physical distribution services address book

SEA TRANSPORTATION:

1. MSC Poland Plac Kaszubski 8 81-350 Gdynia

Phone: +48 58 666 1000 Fax: +48 58 666 1001 E-mail: [email protected]

www.mscgva.ch/index.html

The worldwide agents may be found at: www.mscgva.ch/contact/contact_page.html

COLOMBIACity Company Phone FaxBogota MSC Colombia +57 1 611 2787 +57 1 610 7347 Buenaventura MSC Colombia +57 2 241 8926 +57 2 241 7809 Cartagena MSC Colombia +57 5 667 1111 +57 5 667 0953

2. Maersk Sealand Ul. Kwiatkowskiego 60 81-127 Gdynia

Phone: +48 58 660 39 39 Fax: +48 58 660 39 38 E-mail: [email protected]

www.maersksealand.com

COLOMBIACity Company Phone FaxBogota Maersk Colombia S.A +57 1-6449600 +57 1-3760960Cali Maersk Colombia S.A. +57 2-6618217 +57 2-6534871Medellin Maersk Colombia S.A. +57 4-3134865 +57 4-3136884Buenaventura Maersk Colombia S.A. +57 2-2411400 +57 2-2418683Cartagena Maersk Colombia S.A. +57 5-6502405 +57 5-6502407Barranquilla Maersk Colombia S.A. +57 5-3602936 +57 5-3607315

POLANDCity Company Phone FaxGdynia Maersk Polska Sp. z o.o. +48 58 6603939 +48 58 6603938



Krakow Maersk Polska Sp. z o.o. +48 12 4212006 +48 12 4228727Warsaw Maersk Polska Sp. z o.o. +48 22 5414250 +48 22 5414251

Polish sea operators:

2. MAG (Morska Agencja Gdynia Sp. z o.o.) ul. T. Wendy 15 81-341 Gdynia Phone: (+48 58) 661 41 41 Fax: (+48 58) 621 06 08 E-mail: [email protected]

3. Okmarit Sp. z o.o. Armii Krajowej 30 street 81-366 GdyniaPhone: (+48 58) 661 22 61Fax: (+48 58) 661 69 65E-mail: [email protected];www.okmarit.com.pl

4. Pomorscy Maklerzy Okr towi Sp. z o.o. ul. Chopina 6 81-752, Sopot Phone: (+48 58) 550 20 62 Fax: (+48 58) 550 20 18 E-mail: [email protected]

AIR TRANSPORTATION:

4. LOT Cargo agent in the Netherlands:

www.lot.com

Zygene European Freight Consult BV.Flamingoweg 31, room 316,1118 EE Schiphol-Zuid, The NetherlandsTel : 31-(0)-20-6530007Fax : 31-(0)-20-6530581E-Mail : [email protected]

5. KLM Cargo in the Netherlands:

www.klmcargo.com



Schiphol AirportBuilding 551 PO Box 7700 1177 ZL Tel.: (31) 206498000 Fax.: (31) 206494553 E-mail: [email protected]

RotterdamArlandabaan platformzijde 52 3045 AB PO Box 12039 3004 GA Tel.: (31) 104379455 Fax.: (31) 104370731 E-mail: [email protected]

ROAD TRANSPORTATION: 6. Raben Transport Spó ka z o.o.

ul. Pozna ska 71 62-023 G dki k/Poznania tel.: +48 (61) 650 65 00 fax: +48 (61) 650 65 01 e-mail: [email protected]

7. Cargo Spedul. Bokserska 66 02-690 Warszawa tel.: +48 22 455 76 00 e-mail: [email protected] www.cargosped.com.pl

8. AXA ul. Bukowiecka 92 03-893 Warszawa tel.: +48 22 678 88 22 e-mail: [email protected] www.axa.waw.pl


8. Recommendations to the exporter

On the basis of the information presented above the following conclusions can be drawn: Poland is a large fruit producer, however, these are completely different types of fruit than the ones offered by Colombian exporters. Poland does not offer domestic tropical fruit and neither do other EU countries, due to moderate climate. This creates a market opening for tropical fruit on the Polish consumer market.

Poland is a country with nearly 40 million inhabitants. The market economy is showing an upward trend, which results in higher incomes of people, and therefore – higher consumption. With the rising incomes grows the interest in exotic products, such as tropical fruit. The European Union is a large importer of tropical fruit. It is expected that Poland, which fruit consumption is much lower and thus has still place for growth in the market, will follow. The consumption patterns are becoming more beneficial for exporters of fruit – customers are more and more aware of health and the impact of healthy diet and fruit on their condition. There are also promotional campaigns encouraging people to eat at least 5 portions of fruit and vegetables a day.

The fruit consumption in Poland is about 55 kg per years, which is half of what is eaten in the EU. Therefore, it is still expected to grow. The consumption is showing a slow, but steady grow. The demand is the largest for domestic fruit, the best familiar to polish consumers. However, citrus fruit is also very popular, which gives a hope that tropical fruit can also become more popular, when well promoted.

At the moment tropical fruit is not being bought in large quantities, so it is advisable to boost the demand for them through strong promotional campaigns. Then the trade in them will be more profitable, due to larges quantities imported. Tropical fruit is mostly bought by importers, wholesalers and hyper- and supermarket chains, and at the retails level – by hotels and restaurants. These are the parties that should be contacted by Colombian fruit producers. It is a good idea to establish a long-lasting relationship with a Polish distributor, who will help a Colombian exporter to organize advertising campaigns and promotions in retails outlets. There are no quotas limiting the import of tropical fruit into Poland, which makes it easier to expand the trade. The imported fruit requires only a phytosanitary certificate, so the only barrier is quality of the products. Another one, not regulated anywhere, is low demand and recognizability of tropical fruit on the Polish market. But this can be easily changed in the future.

To sum up, there is a large potential for tropical fruit on the Polish market, which is not saturated yet. The growing incomes of consumers and rising consumptions of fruit, together with higher health conscience give good prospects for Colombian



exporters of tropical fruit. Promoting tropical fruit on the Polish market can be very profitable.


Annexes

Annex 1: Foodprices on wholesale markets

Prices (in PLN) of fruit quoted at the Warsaw Agra-Food Wholesale Market Plc (pl.Warszawski Rolno-Spo ywczy Rynek Hurtowy Bronisze SA) on 25th July 200521

Name Packaging Min. price (PLN)

Max. price (PLN)

Average prices (PLN)

Domestic fruit Blackberries kg 10,00 12,00 11,00

Peaches kg 3,00 3,80 3,50Sweet cherries kg 3,50 6,00 4,50Apples Alwa kg 1,00 1,33 1,20

Apples Boiken kg 1,00 1,33 1,20Apples Close kg 0,80 1,20 1,10

Apples Cortland kg 1,10 1,33 1,25Apples Early

Geneva kg 1,60 2,00 1,80

Apples Gala kg 1,10 1,35 1,20Apples Gloster kg 1,10 1,33 1,25Apples Golden

Delicius kg 1,33 1,66 1,45

Apples Jonagold kg 1,10 1,33 1,25Apples Jonagored kg 1,10 1,33 1,25

Apples Jonica kg 1,00 1,33 1,25Apples Ligol kg 1,33 1,50 1,40Apples Lobo kg 1,00 1,33 1,25

Apples Papierówka kg 1,50 1,80 1,66Apples Sampion kg 1,10 1,45 1,33

Forest berries kg 9,00 10,00 9,50Raspberries kg 5,00 7,00 6,00

Apricots kg 4,00 5,00 4,50Currants kg 4,50 5,50 5,00Plums kg 2,00 4,00 3,00

21 € 1 = 4,0 PLN



Average prices Min. price Max. price Name Packaging (PLN) (PLN) (PLN) Strawberries kg 7,00 9,00 8,00

Cherries kg 2,80 3,30 3,00Imported fruit

Decorativepineapples piece 6,00 7,00 6,50

Honey pineapples piece 12,00 16,00 14,00Watermelons kg 0,90 1,30 1,00

Bananas kg 3,00 3,55 3,30Peaches kg 2,80 3,88 3,30Lemons kg 3,20 4,20 3,80

Grapefruits kg 4,50 6,00 5,50Pears kg 3,50 5,50 4,80Apples kg 3,50 4,00 3,90Kiwifruit kg 2,50 6,00 5,00

Mandarins kg 3,00 5,50 4,50Apricots kg 5,00 6,50 6,00

Nectarines kg 2,80 4,50 3,50Oranges kg 3,00 4,00 3,50

White grapes kg 7,00 9,00 8,00Source: www.bronisze.com.pl

Prices (in PLN) of fruit quoted at the The Wielkopolska Agra-Horticultural Wholesale Market Plc in Pozna (pl. Wielkopolska Gildia Rolno-Ogrodnicza S.A., abbr. WGRO S.A.) on 25th July 2005

Name Group Packaging Min. price (PLN)

Max. price (PLN)

Gooseberries Domestic fruit Box 5 kg 20.00 20.10

Pineapples Imported fruit 1 piece 4.00 5.00

Watermelons Imported fruit Carton 20 kg 20.00 24.00

Bananas Imported fruit Carton 18 kg 58.00 64.00

Blueberries Domestic fruit Container 1 kg 11.00 14.00

Peaches Domestic fruit Box 5 kg 14.00 15.00

Peaches Imported fruit Container 1 kg 3.00 3.50




Max. price (PLN)

Lemons Imported fruit Carton 10 kg 30.50 40.00

Black currants Domestic fruit Container 5 kg 10.00 10.50

Sweet cherries Domestic fruit Box 5 kg 17.50 35.00

Currants Domestic fruit Container 2 kg 4.00 4.60

Grapefruits Imported fruit Carton 14 kg 61.60 70.00

Pears Imported fruit Carton 18 kg 72.00 79.20

Apples Imported fruit Carton 18 kg 41.40 72.00

Apple Close Domestic fruit Box 15 kg 25.00 30.00

Apple Gloster Domestic fruit Box 15 kg 20.00 25.00

Apple Golden Delicious Domestic fruit Box 15 kg 25.00 30.00

Apple Idared Domestic fruit Box 15 kg 15.00 22.00

Apple Jonagold Domestic fruit Box 15 kg 20.00 25.00

Apple Jonagored Domestic fruit Box 15 kg 20.00 25.00

Apple Ligol Domestic fruit Box 15 kg 20.00 24.00

Apple Lobo Domestic fruit Box 15 kg 18.00 25.00

Apple Papierówka Domestic fruit Box 15 kg 40.00 45.00

Apple Sampion Domestic fruit Box 15 kg 20.00 23.00

Bilberries Domestic fruit Container 2 kg 18.00 20.00

Blackberries Domestic fruit Container0,5 kg 10.00 10.10

Kiwifruit Imported fruit Palett 33 pieces 21.50 23.00

Blue poppy Domesticssweetmeats Sack 5 kg 24.50 25.00

Raspberries Domestic fruit Container 5.00 5.80




Max. price (PLN)

0,5 kg

Mandarins Imported fruit Box 10 kg 43.00 50.00

Apricots Domestic fruit Box 5 kg 22.50 27.50

Apricots Imported fruit Carton 5 kg 30.00 32.50

Nectarines Imported fruit Container 1 kg 3.00 3.50

Oranges Imported fruit Box 10 kg 38.00 42.00

Plums Domestic fruit Box 5 kg 13.50 17.00

Strawberries Domestic fruit Container 2 kg 12.90 13.00

Grapes Domestic fruit Box 5 kg 15.00 16.00

Grapes Imported fruit Box 7 kg 43.00 49.00

Cherries Domestic fruit Box 5 kg 14.90 15.00Source: www.wgro.com.pl

Prices (in PLN) of fruit quoted at the Prague Food Wholesale Market Agro-Technika Plc in Z bki near Warsaw (pl. Praska Gie da Spo ywcza Agro-Technika S.A.) on 25th July 2005

Name Min. price (PLN)

Max. price (PLN)

Unit of measure

Domestic fruit Sweet cherries 3,5 5,0 kg

Pears 4,00 6,00 kgApples Antonówka 0,80 1,00 kg

Apples Celeste 1,00 2,00 kgApples Champion 1,00 1,80 kgApples Cortland 1,00 1,30 kgApples Delikates 1,00 1,30 kg

Apples Ligol 1,30 2,00 kgApples Lobo 1,00 1,60 kg

Hazelnuts 6,00 6,50 kg



Name Min. price (PLN)

Max. price (PLN)

Unit of measure

Walnuts 3,00 6,00 kgStrawberries 2,5 3,0 kg

Imported fruit Decorative pineapples 6,00 7,00 piece

Avocados 2,50 3,30 pieceBananas 4,20 5,20 kgLemons 4,00 4,50 kg

Grapefruits 5,70 7,90 kgPears 4,00 6,00 kg

Green apples 0,80 1,20 pieceKiwifruit 0,80 1,00 piece

Mandarins 4,40 6,00 kgOranges 4,00 5,00 kg

White grapes 6,00 11,00 kgDark grapes 6,00 11,00 kg

Source: www.agrotechnika.com.pl

Prices (in PLN) of fruit quoted at the Pomeranian Wholesale Agra-Food Center Renk Plc in Gda sk (pl. Pomorskie Hurtowe Centrum Rolno-Spo ywcze Renk S.A.) on 25th July 2005

Name Group Packaging Price (PLN)Pineapples imported 10, 12 pieces 4,50 / 1 piece

Avocados imported 18, 20, 22 pieces 1,50 / 1 piece

Bananas imported 18 kg 4,33 / kg

Lemons imported 0,5 kg, 1 kg, 10 kg, 15 kg 3,00 – 3,40 / kg

White grapefruits imported 15 kg 4,00 / kg Read grapefruits imported 15 kg 4,00 / kg Pears Lukasówki domestic 6 kg 3,00 / kg Apples Gloster domestic 13 kg 1,80 / kg

Apples Jonagored domestic 13 kg 1,60 / kg Apples Ligol domestic 13 kg 1,70 / kg

Apples Shampion domestic 13 kg 1,70 / kg



Name Group Packaging Price (PLN)Kiwifruit imported 1 kg 3,30 / kg Kiwifruit imported 10 pieces 0,74 / 1 piece Oranges imported 10 kg 2,80 / kg

Dark grapes imported 4,50 kg 7,00 / kg White grapes imported 4,5 kg, 10 kg 11,00 / kg

Source: www.renk.pl

Prices (in PLN) of fruit quoted at the ódz Trade Center “Zjazdowa” Plc in ód (pl. ódzkieCentrum Handlowe Zjazdowa S.A.) on 25th July 2005

Name Packaging Min.price(PLN)

Max. price (PLN)

Domestic fruit

Gooseberries Container 1 kg 3,30 3,50

Blueberries Container 0,25 kg 3,50 3,50

Peaches Kg 3,00 4,00

Sweet cherries Box 15 kg 60,00 90,00

Apples Cortland Box 15 kg 8,00 22,00

Apples Champion Box 15 kg 10,00 22,00

Apples Eliza Box 15 kg 12,00 22,00

Apples Jonagored Box 15 kg 8,00 20,00

Apples Ligol Box 15 kg 12,00 25,00

Apples Lobo Box 15 kg 9,00 24,00

Berries Kg 1 kg 9,00 9,00

Raspberries Container 0,5 kg 3,00 3,50

Black currants Kg 2,00 2,00

Currants Container 1 kg. 1,75 1,75

Plums Box 15 kg 30,00 45,00

Cherries Basket 3 kg 9,00 12,00

Imported fruit

Pineapples 1 piece 4,00 5,00

Watermelons Kg 1,30 1,40



Name Packaging Min.price(PLN)

Max. price (PLN)

Avocados 1piece 2,00 2,50

Bananas Carton 18 kg 60,00 68,00

Peaches Basket 1 kg. 3,30 3,40

Peaches 1 palett 0,80 1,10

Lemons "Argentina" Carton 18 kg 68,00 70,00

White grapefruits Carton 16 kg 55,00 60,00

Red grapefruits Carton 16 kg 75,00 90,00

Pears "Argentina" Carton 15 kg 40,00 42,00

Green apples Carton 18 kg 70,00 75,00

Kiwifruit Container 1 kg 6,00 6,00

Kiwifruit Carton 100 pieces 80,00 85,00

Limes 1 kg 11,00 12,00

Mandarins scattered Box 10 kg 44,00 45,00

Mandarins arranged Box 10 kg 42,00 47,00

Mangos 1 piece 4,00 4,50

Melons 1 piece 5,00 8,00

Apricots loose Carton 5 kg 20,00 30,00

Apricots Basket 1 kg 3,50 3,50

Nectarines Basket 1 kg. 3,00 3,50

Oranges "Republic of South Africa"

Carton 15 kg 45,00 72,00

White grapes "Italy" Box 7 kg 42,00 45,00

Dark grapes "Italy" Box 8,2 kg 50,00 55,00Source: www.zjazdowa.com.pl


Annex 2: Certificate of origin form A



Annex 3: Plant health movement document



Annex 4: Phytosanitary certificate



Annex 5: DV1 Form



Annex 6: Single Administrative Document (SAD)




Annex 7: Photo documentation

Citrus fruit in nets (lemons, mandarins and oranges):



Fruit in plastic boxes and in nets (peaches, kiwifruit and nectarines):



Blueberries in a plastic box:

Raspberries in a cardboard box:



Loose fruit with stickers with names of producers on them (kiwifruit, yellow melon, bananas, melon galia):



Fruit in pallets:



Cardboard boxes and pallets:



Examples of package labels:


Annex 8: Companies Directories

Companies Directory Country: Poland Sector: Tropical Fruit Página Web Idioma Idioma del

Contenido Información General de Empresas

Disponible sin Costo Requiere Registro

Información Adicional con

Costo Directorios Europeos http://www.kompass.com/ E E; I; O Contenido: Nombre de la empresa;

País; Dirección; Teléfono; Fax; Sitio Web; Numero de empleados; Fecha de constitución; Capital; No de registro; Identificación del IVA.Descripción: Información de empresas para 70 Países.Opciones de Búsqueda: País; Productos/Servicios; Empresa; Sector; Subsector; Marcas; Dirigentes; Códigos.

SI SI

http://worldyellowpages.com/ I I Contenido: Nombre de la empresa; País; Dirección; Teléfono; Fax; E-mail; Sitio Web; Descripción corta de la empresa y sus productos. Descripción: Paginas amarillas - Lista alfabética de productos y servicios; lista de empresas; Permite acceder a las páginas amarillas de cada País; Acceso a una pagina de Información de negocios con algunos Países entre los que se encuentran Polonia y Republica Checa. Opciones de Búsqueda: País;Productos/Servicios; Empresa; Listado de productos; Listado de países; Oportunidades de negocio con algunos países.

SI NO

http://www.europages.com/ E; I; O E; I; O Contenido: Nombre de la empresa; País; Dirección; Teléfono; Fax; Sitio Web; Productos/Servicios. Descripción: Directorio en línea (en 25 idiomas) de la empresas europeas mas dinámicas; Consulta gratuita de las licitaciones publicadas en el diario oficial de la Unión Europea; Directorio impreso (en 6 idiomas) de los compradores europeos mas dinámicos; Directorio en CD-Rom (en 14 idiomas) de la empresas europeas mas dinámicas. Permite contactar las empresa vía intra mail. Opciones de Búsqueda:Productos/Servicios; Empresa; Temática; País; Sector.

SI SI

Directorios Polacos http://www.teleadreson.pl/ P; I P; I Contenido: Nombre de la empresa;

Nombre corto; Dirección; Ciudad; Zip Code; Nombre del contacto; Teléfono; Fax; Tipo de entidad; Estatus legal; E-mail; Sitio Web; Empleados; Año de fundación; NACE (No de Actividad de la Comunidad Europea); SIC(Clasificación Industrial Estándar). Descripción: Permite elegir los capítulos arancelarios como criterio de búsqueda de las empresas. Opciones de Búsqueda: Texto; NACE (No de Actividad de la

NO NO








Costo Comunidad Europea); SIC (Clasificación Industrial Estándar); Estado; Tipo de entidad; Año de Fundación; Numero de empleados.

http://www.panoramafirm.pl/ - http://www.pf.pl

P P Contenido: Nombre de la empresa; Dirección; Teléfono; Fax; Sitio Web; E-mail; Productos/Servicios. Descripción: Información de empresas polacas. Permite contactar las empresa vía mail.Opciones de Búsqueda: Texto; Sector (Categorías temáticas).

NO NO

http://www.polishproducts.gov.pl/ - http://www.polishproducts.gov.pl/

P P Contenido: Nombre de la empresa; Categoría; País; Dirección; Teléfono; Descripción. Descripción: Portal de promoción de exportaciones del ministerio de comercio polaco.Opciones de Búsqueda: Texto; País; Categoría.

NO NO

http://www.polandcompany.com/ P; I; A I; W Contenido: Descripción corta de la empresa y sus productos; Link al sitio Web de cada empresa. Descripción: Portal descriptivo de las empresas polacas, clasificadas por Categorías de productos. Opciones de Búsqueda: Sector.

NO NO

www.pkt.pl P P; I Contenido: Nombre de la Empresa; Dirección; Teléfono; E-mail; Sitio Web; Sector; Productos/Servicios; Códigos; Mapa. Descripción: Información de empresas polacas. Permite contactar las empresa vía intra mail Opciones de Búsqueda: Texto; Sector; Productos/Servicios; Empresa

NO SI

http://www.infodata.pl/ P; I P; I Contenido: Nombre; Ciudad; Actividad o sector; Códigos de Identificación; VAT; Código postal; Teléfono: Fax; E-mail; Contacto; Sitio Web.Descripción: Base de datos de empresas polacas - InfoData. Opciones de Búsqueda: Negocios - Base de datos; Nombre de la empresa; Ciudad; Actividad.

NO NO

Directorios por Sector http://www.foodtrader.com/ I I Contenido: Información sobre

potenciales compradores. Descripción: Pagina especializada en las industrias de alimentos y agricultura.Opciones de Búsqueda:Productos/Servicios; Categorías

SI SI







Costo http://www.foodnet.cz/ C; I C; I Contenido: Nombre de la empresa;

Dirección; Teléfono; Fax; E-mail; Sitio Web; Numero de Identificación; Contacto; Cargo del contacto; Teléfono del contacto; E-mail del contacto; Campos de negocio; Links; Fecha de registro; Fecha de constitución; Descripción; Tipo de empresa.Descripción: Pagina de la Federación Checa de Alimentos y Bebidas (FFDI). Se encuentra la Información de las empresas miembro de la FFDI. Opciones de Búsqueda: FFDI DR; Lista de miembros; Empresas

NO NO

http://www.foodnavigator.com/ I I Contenido: Descripción corta de la empresa y sus líneas de productos; Sitio Web. Descripción: Página de noticias de Alimentos y Bebidas en Europa. Hay una suscripción gratuita para recibir vía e-mail noticias sobre las 100 empresas top de la industria de bebidas y alimentos. Opciones de Búsqueda: Noticias de Productos y proveedores; Por patrocinador.

NO NO

http://www.efosz.hu/ H; I H; I Contenido: Nombre de la empresa; Sitio Web. Descripción: Pagina de la Federación Húngara de la Industria de Alimentos. Cuenta con un listado reducido de empresas con su sitio Web, sin ninguna Información adicional.Opciones de Búsqueda: Empresas de alimentos; Productos/Servicios.

NO NO

Idioma: E: Español; I: Ingles; A: Alemán; C: Checo; H: Húngaro; P: Polaco; O: Otros; W: Idioma del Sitio Web
