SITUATION AND PROSPECTS SITUATION AND PROSPECTS

OF THE OF THE

BUDAPEST WHOLESALE MARKETBUDAPEST WHOLESALE MARKET

CEI WM FOUNDATION MEETINGCEI WM FOUNDATION MEETING

K IIV – LVIV 5 OCTOBER 2011

FRUIT AND VEGETABLE CONSUMPTIONFRUIT AND VEGETABLE CONSUMPTION

CONSUMPTION IS DECLINING, ESPECIALLY CONSUMPTION IS DECLINING, ESPECIALLY FROM FRUITFROM FRUIT

IN INTERNATIONAL COMPARISON, FRUIT IN INTERNATIONAL COMPARISON, FRUIT CONSUMPTION IS RATHER LOW,CONSUMPTION IS RATHER LOW,

VEGETABLE CONSUMPTION IS MEDIUMVEGETABLE CONSUMPTION IS MEDIUM

SUPPLY CONCENTRATION (COUNTERWEIGHT)SUPPLY CONCENTRATION (COUNTERWEIGHT) ADJUST SUPPLY TO DEMAND IN QUANTITY, ADJUST SUPPLY TO DEMAND IN QUANTITY,

QUALITY, TIMEQUALITY, TIME REDUCE PRODUCTION COSTSREDUCE PRODUCTION COSTS STABILISE PRODUCER PRICESSTABILISE PRODUCER PRICES PROMOTE ENVIRONMENT FRIENDLY FARMING PROMOTE ENVIRONMENT FRIENDLY FARMING

PRACTICESPRACTICES

POS CAN HAVE DIFFERENT LEGAL FORMS – POS CAN HAVE DIFFERENT LEGAL FORMS – COOPERATIVES, LTDS ETC.COOPERATIVES, LTDS ETC.

PO RECOGNITION CRITERIAPO RECOGNITION CRITERIA

EU: MIN. 5 MEMBERS AND MIN. 100 THOUSAND EUR EU: MIN. 5 MEMBERS AND MIN. 100 THOUSAND EUR MARKETED PRODUCTIONMARKETED PRODUCTION

HUNGARY: MIN. 8/15 MEMBERS AND MIN. 500 HUNGARY: MIN. 8/15 MEMBERS AND MIN. 500 THOUSAN / 1 MILLION EUR MARKETED THOUSAN / 1 MILLION EUR MARKETED PRODUCTIONPRODUCTION

AUSTRIA: MIN. 7.5 MILLION EUR SALES (FRUITS), AUSTRIA: MIN. 7.5 MILLION EUR SALES (FRUITS), MIN. 5.3 MILLION EUR (VEGETABLES)MIN. 5.3 MILLION EUR (VEGETABLES)

MARKETING CHANNELS FOR FRESH FRUITS MARKETING CHANNELS FOR FRESH FRUITS AND VEGETABLESAND VEGETABLES

HYPERMARKETS 19 %

SUPERMARKETS 13 %

DISCOUNTERS 13 %

SMALL FOOD SHOPS 12 %

RETAIL MARKETS 27 %

VEGETABLE SHOPS 14 %

OTHERS 2 %

TOTAL 100 %

TRATIDIONAL MARKETING CHANNELS STILL IN STRONG POSITIONS 55%

SMALL PRODUCERS IN THE BWMSMALL PRODUCERS IN THE BWM

AVERAGE DISTANCE FROM THE MARKET 94 KM

AVERAGE AREAS 17.6 HA OPEN AIR0,5 HA TUNNELS

AVERAGE SELLING PERION 8 MONTHS

AVERAGE TRUCK LOAD 1.5 TONS

SMALL PRODUCERS IN THE SMALL PRODUCERS IN THE BWM BWM

BUYER STRUCTUREBUYER STRUCTURE RETAILERS 55 %RETAILERS 55 % WHOLESALERS 34 %WHOLESALERS 34 % HORECA 9 %HORECA 9 % CONSUMERS 2 %CONSUMERS 2 %

SMALL PRODUCERS IN THE BWMSMALL PRODUCERS IN THE BWM

EVALUATION OF OWN POSITIONEVALUATION OF OWN POSITION 2008: 3,32008: 3,3 2011: 2,22011: 2,2 2016 FORECAST: 2,52016 FORECAST: 2,5

74 % OF THE PRODUCERS SELLING IN THE BWM 74 % OF THE PRODUCERS SELLING IN THE BWM IN 2011 ARE THINKING THAT THEY WILL BE IN 2011 ARE THINKING THAT THEY WILL BE PRESENT ALSO IN 2016PRESENT ALSO IN 2016

THE POSITION THE BWM IN THE THE POSITION THE BWM IN THE MARKETING SYSTEMMARKETING SYSTEM

TRADED VOLUME 450 THOUSAND TONS PER TRADED VOLUME 450 THOUSAND TONS PER YEARYEAR

THE SHARE OF PRODUCER SALES DECLINED THE SHARE OF PRODUCER SALES DECLINED FROM 60% TO 45%FROM 60% TO 45%

SHARE OF BWM IN TOTAL FRESH F+V SALES SHARE OF BWM IN TOTAL FRESH F+V SALES 40%40%

SHARE OF BWM IN TOTAL FRESH F+V IMPORTS SHARE OF BWM IN TOTAL FRESH F+V IMPORTS 55%55%