WC MI growers meeting 2005

EU Tree Fruit Production and Trends: 

EU Tree Fruit Production and Trends Mollie Woods Department of Agricultural Economics, MSU West Central Spring Horticulture Meeting February 24, 2005

What is the EU?: 

What is the EU? A group of democratic countries in Europe that cooperate economically and have partially shared governance European integration was first conceived in 1950 to prevent atrocities and destruction of WWII from happening again Five Primary institutions of governance Include parliament, “congress”, executive body, legal body, and ombudsman

Slide3: 

The EU-25 Copyright 2005 European Commission; http://europa.eu.int/abc/maps/index_en.htm#top

EU-25 Member Countries: 

EU-25 Member Countries Original Members Belgium, France, Germany, Italy, Luxembourg, Netherlands 1973 Denmark, Ireland, UK 1981 Greece, Portugal, Spain 1995 Austria, Finland, Sweden 2004 Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia Applicant Countries Bulgaria Croatia Romania Turkey

Overview of World Trade: 

Overview of World Trade % share of total trade

What is the CAP? : 

What is the CAP? Common Agricultural Policy Unified Ag policy applicable to all members of the EU Aim “…is to provide farmers with a reasonable standard of living and consumers with quality food at fair prices.” Mid-2003 CAP changed from production subsidies to direct payments for compliance with new standards on the environment, animal welfare, hygiene, and rural preservation

Trade in the EU - 2003 % share of total trade: 

Trade in the EU - 2003 % share of total trade

Slide8: 

The 2002 World Fruit Pie

Selected Fruits of the EU: 

Selected Fruits of the EU Apples Peaches Plums Tart Cherries Sweet Cherries Currents Gooseberries Blueberries Raspberries Strawberries Pears

Apples: 

Apples EU produces 14% of world total (2004, FAOstat) U.S. 7%; China 35% In 2003, Poland was #4 producer of apples in the world When separated from EU, with China #1 and U.S. #2 Total production in 2003 was 5,339 mil lbs (Eurostat) 2004 production was 5,546 mil lbs

Apple Production (mil. lbs): 

Apple Production (mil. lbs)

Apple Acreage(1000 Acres): 

Apple Acreage (1000 Acres)

Cherries: 

Cherries Distinction between tart and sweet not so clear in Europe Morello varieties are consumed fresh, along with other sweet varieties European data does not distinguish between two

World Tart Cherry Production: 

World Tart Cherry Production Germany 204 Iran 105 Turkey 259 Poland 365 U.S 239 Serbia & M 145 Hungary 10 Russian Fed 380 1999-2003 Annual Average (mill. lbs.) (selected countries: approx 95% of world total production) Source: FAO DataSTAT

Tart and Sweet Cherries in the EU: 

Tart and Sweet Cherries in the EU Poland is largest producer in the EU Poland’s largest customer is Germany Currently the 2nd largest producer worldwide; U.S. is 4th (tarts) Very concerned about China’s entry into the market Turkey Accession country with large amount of production

World Tart Cherry Production with Poland and U.S. Shares: 

World Tart Cherry Production with Poland and U.S. Shares Source: FAOSTAT, 2005 Poland U.S.

All Cherry Production in the EU(mil. lbs): 

All Cherry Production in the EU (mil. lbs)

EU Cherry Acreage(1000 Acres): 

EU Cherry Acreage (1000 Acres) Source: Eurostat

Peaches(mil. lbs): 

Peaches (mil. lbs)

World Peach & Nectarine Production 1999-2003 Annual Average Share: 

World Peach & Nectarine Production 1999-2003 Annual Average Share China 37 EU 36 U.S. 13 South America 6 Turkey 4 Iran 3 South Africa2 Selected countries and regions: approx. 84% of world total production Source: FAOSTAT data, 2004

Plums: 

Plums Spain, Italy, and France are the largest producers in the EU Romania – Accession country with 3x the production of Poland Production highly variable over last 5 years Turkey is also a player

Plum production in the EU(mil. lbs): 

Plum production in the EU (mil. lbs)

World Grape Production 1999-2003 Annual Average Share: 

World Grape Production 1999-2003 Annual Average Share EU 49 U.S. 12 South America11 China7 Turkey 7 Iran 5 Australia3 South Africa3 India 2 Egypt 2 Selected countries and regions approx. 84% of world total production Source: FAOSTAT data, 2004

Other items of interest: 

Other items of interest Cucumbers Netherlands and Poland lead the EU in production In 2004 turkey produced 3.7 billion lbs of cucumbers, more than the two combined Strawberries Spain leads in fresh market production, Poland is a major freezer Pears Italy and Spain are the largest producers; Shrinking production in Poland, unclear trend in Turkey

Trends: 

Trends Juice consumption in the EU may have peaked- 46.6 litres (12.3 gal) pc/py in Germany in 2003, declined in 2004 Average 17.1 litres (4.5 gal) pc/py in the EU More and more countries looking toward accession Ukraine CIS?

Trends: 

Trends Polish food exports to the EU rose 77.5% in the two months following accession Poland has entered the blueberry market; China is biding its time Serbian juice maker won the World Juice Innovation Award for 2004 for 100% raspberry Juice Also manufactures “Crushed Cherry” juice Fancy foods show in CA – cherries from SCM and dried from CHINA

Conclusions?: 

Conclusions? Clearly Poland and Turkey are the horticultural centers of the EU and the CEEC Hungary and Romania are important newer players Italy, Spain, France, and Germany continue to produce key items

Conclusions?: 

Conclusions? EU is getting bigger Accession and accession talks mean less cost to trade More consumers with more money and expanding preferences