The government’s decision on new quality requirements for the sale of fresh fruits and vegetables was published in the Official Gazette on Friday, February 11. The new rules are set in accordance with the standards adopted by the United Nations Economic Commission for Europe (CEE-ONU), MOLDPRES informs.

The document applies to a number of imported or domestic goods (potatoes, onions, garlic, cabbage, cauliflower, carrots, cucumbers, eggplants, marrows, melons, apricots, plums, cherries and sour cherries).

Read also: Moldovan government plans to sign an agreement on preferential fruit exports with Egypt

The purpose of the document is to provide the domestic market with local or imported fruits and vegetables that meet quality requirements and sanitary standards.

According to the project, product quality must be confirmed by a certificate of conformity issued by the National Food Safety Agency. Until now, only enterprises exporting fresh fruits and vegetables have requested such a document. Compliance with sanitary standards will be confirmed by tests in an accredited laboratory. Tthe obligation to have a safety certificate was canceled, and the document became optional.

Сообщение Moldova: new requirements for the quality of fruit and vegetable sales came into force появились сначала на EastFruit.

The Ministry of Agriculture and Food Industry (MAIA), together with the Ministry of Economy of the Republic of Moldova, is preparing a request to the European Commission to increase the preferential quota-2022 for the export of Moldovan plums to the European market up to 20 000 tonnes. Last year, the quota was 15 000 tonnes, in 2020 – 10 000 tonnes.

Earlier, several organizations of agricultural producers addressed the Moldovan government with a proposal to initiate a dialogue with the EU on further increase in export quotas (primarily for plums, and other fruit crops). The proposal was motivated by the fact that the volume of plum supplies to the European Union has increased significantly over the past five years. The only exception was 2018, when a little more than 12 000 tonnes were supplied to the EU from Moldova (in 2017 – almost 20 000 tonnes). However, in 2019 the European export of Moldovan plums returned to the level of 20 000 tonnes, and in 2020 it amounted to more than 22 000 tonnes.

In 2021, according to preliminary data from the Moldovan customs service, about 27 000 tonnes of plums were sent to the EU. As specialists of local associations of agricultural producers note, about 3 000-4 000 tonnes of these plums were exported to Romania for processing. According to them, the volume of exports to the European market of premium-quality Moldovan plums in small consumer packaging also increased.

Representatives of agrarian associations believe that there are good chances that the export of plums from Moldova to the European Union will exceed 20 000 tonnes this year.

Сообщение Moldova intends to negotiate an increase in the duty-free quota for plum exports to the EU появились сначала на EastFruit.

Unfortunately, the concerns expressed by EastFruit in the article dated 6 December about a possible ban on the imports of fruits and vegetables to Belarus are confirmed. The leadership of the republic decided to impose an additional tax on its own citizens and restrict their access to high quality fruit vegetables, berries, and nuts from January 1, 2022. The decree was published on December 7, 2021 on the National Legal internet-portal of the Republic of Belarus.

We note that Ukraine is not included in the list of countries from which the imports of fruit and vegetables is prohibited. Unexpected was the inclusion of non-EU countries in this list – not only the United States, Great Britain, Norway, Switzerland, Iceland and Northern Ireland, but also countries such as Albania, North Macedonia and Montenegro, which are not sanctioned by Russian. At the same time, Serbia, traditionally friendly to Russia, is not included in the list.

EastFruit experts analyzed who will benefit from the embargo and how it will affect the produce business of Belarus and Russia. After all, it has long been no secret that Belarus was a major transit point on the way of food banned in Russia to its stores. Thus, by prohibiting the import of fruits and vegetables from these countries, Belarus raises prices and limits the choice for its consumers, and deprives entrepreneurs in the fruit and vegetable trade of large additional income. By the way, in addition to vegetables, fruits, berries and nuts, Belarus also bans the import of meat and poultry, dairy products, meat products, confectionery and some other categories of goods.

The ban on the supply of fruits and vegetables from the EU to Belarus is beneficial to countries that did not fall under the embargo by providing better access to the Belarusian market and de facto banning their re-exports from the EU to Russia. This will pull up the prices for fruits and vegetables in Russia, although they are already close to record highs.

Who will lose on the Belarusian embargo?
The most affected will be the consumers of vegetables and fruits from Belarus and Russia. They will have to pay more for lower quality products.

Poland, Spain, the Netherlands, Belgium and Greece will suffer the biggest losses. The total losses of exporters of fruits and vegetables from the EU may amount to about $300 million per year. Finding alternative markets will not be too difficult for the countries except for Poland. However, it will be a sensitive loss for EU farmers.

The rest of the countries that have come under the ban will most likely not even notice the impact of the embargo on the fruit and vegetable business. Although the loss of $10 million in exports may be sensitive for small North Macedonia.

Who benefits from the embargo?

It may sound strange, but the decision is most beneficial for Ukraine, which will now be able to supply higher volumes of fruits, vegetables and potatoes to Belarus. Ukraine is neighboring Belarus and annually supplies it with fresh fruits and vegetables worth $20-30 million.

In the context of the crisis in the fresh apple market #freshapplecrisis, the embargo will be a real gift for Ukraine, because apple prices remain extremely low there, especially for outdated varieties that are in demand only in Russia and Belarus. Given the lack of competition from Poland, apple sales may grow from January 1. However, importers will try to import as many products from the EU as possible by the end of the year. Belarus is also actively importing carrots, potatoes, frozen vegetables and greenhouse tomatoes from Ukraine this year.

It must be taken into account that Ukraine can also be included in the decree at any time.

The embargo is no less beneficial for Moldova. As in the case of Ukrainian apples, there are many outdated varieties that will be easier to sell to Belarus now. Moldova will also be able to improve the sales of table grapes, although their stocks are quite low this year. In the summer season, many fruits and berries from Moldova will find their way to the markets of Russia and Belarus easier. An additional potential benefit is an increase in re-exports from the EU to Russia through Moldova.

The embargo will be beneficial for Serbia, as well. After all, Serbia is not on the list, which means that the apples imports to Belarus will slightly increase. However, the priority of this destination for Serbia is decreasing now. Serbia also supplies high volume of stone fruit and blueberries to the Russian market and, partially, to the Belarusian market. By the way, Serbia can become a re-export hub for Russia instead of Belarus, although there was a scandal on this matter a couple of years ago and the volume of re-exports has dropped sharply then.

The ban will also benefit the countries of Central Asia: Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan and Kyrgyzstan. However, the profitability will not be so obvious, since Belarus does not import much from them and logistics remains complicated and expensive. Given the lack of alternatives, Belarus may still increase purchases of stone fruits and early vegetables from Central Asian countries. To a much lesser extent, Georgia will receive its share of the benefits.

Turkey will receive multiple benefits from the embargo as it is the only country that can replace almost all the goods that Belarus will not be able to import from the EU. The situation on the Russian market may also become more favorable for Turkish suppliers. The situation is beneficial for Iran, too.

Citrus exporters from Morocco and Egypt will also be able to increase sales in the Belarusian market in the absence of competition from Spain, Greece and Italy.

Сообщение Belarus bans the imports of fruits, vegetables, and nuts from the EU, the United States and other European countries появились сначала на EastFruit.

According to expert estimates, the share of EU countries in the export structure of Moldovan apricots will increase to about 80-85% this year. Earlier EastFruit reported that in 2020 Moldova exported approximately 2 thousand tons of apricot. About half of it was sent to Ukraine, whereas only a little more than a hundred tons were sent to the EU.

The experts of the “Effective Agriculture of Moldova” project ARM/USAID believe that by the successful use of marketing tools of the “pandemic period” played a significant role in the reorientation of the Moldovan apricot export to the European market. Because of the limitations of traditional business contacts due to COVID-19 the fruit growers’ associations, supported by the project, have developed a series of online tours to the farms and post-harvest infrastructure of large agricultural companies in Moldova. Thanks to this, as well as to the certification of fruit-producing enterprises under GLOBAL G.A.P. and GRASP standards, these enterprises have significantly increased the export of apricots to the EU market this year. In particular, horticultural and trading companies from Moldova began to supply fresh apricots in large volumes to Germany for the first time.

Read also: Low prices for watermelons are expected in Moldova

In addition, some horticultural enterprises started exporting apricots to Hungary. Their leaders note that 70-80% of apricot orchards in this country have suffered from spring frosts this year. Moldovan apricots, although exported to Hungary fresh, is mostly redirected for processing – the production of distillate (apricot schnapps). In addition, Moldovan growers hope to increase the supply of late-ripening dessert apricots to the Romanian market.

The apricot harvest from 3.8 thousand hectares of fruiting plantations amounted to about 6.5-8 thousand tons last year in Moldova. In 2021, according to expert forecasts, the harvest will be at least 10-12 thousand tons.

Сообщение Moldova is stepping up apricot exports to the EU in 2021 появились сначала на EastFruit.

Fruit farmers need to use organic products to protect their orchards because the problem of pesticide residues in fruits is becoming increasingly urgent. This is especially true in the context of tightening requirements by retail chains in the European Union as well as the removal of a number of phytosanitary products from both European and national registries, MOLDPRES reports.

According to Vitali Gorincioi, the chairman of Moldova Fruct, producers should redirect their attention to buyer demands as soon as possible. “Chain stores do not accept fruits with residues exceeding the maximum allowable norms. We do not have much time to re-orient ourselves and see how we protect our orchards from diseases and pests while offering the consumer a high-quality and harmless product,” he said.

Read also: Is the domestic apple market in Moldova worthy of attention from Moldovan traders?

The Fruit Producers and Exporters Association of Moldova, also known as Moldova Fruct,  organized a discussion of this problem within the project “Climate Reform in the Republic of Moldova” funded by the International Finance Corporation (IFC), a member of the World Bank Group.

“The goal of our project is to help producers meet the needs of the EU market, enter this market, and stay on it. It is very important that these requirements are known to the production sector and importers of these products provide access to the required range of phytosanitary products,” said Felicia Prikop, an agribusiness specialist with IFC.

“The future of the system for protecting horticultural plantations from diseases and pests, obviously, focuses on the gradual reduction in the use of synthetic pesticides and their replacement with biological ones. The latter will not be cheap and this will undoubtedly lead to higher production costs. This is why growers need to focus on precision farming, innovation, and better planning for comprehensive disease and pest control schemes. Our common goal is for EU and other consumers to enjoy the special taste of Moldovan fruits and to ensure that these fruits are harmless and of high quality as well as provide satisfactory profit for producers,” concluded the Executive Director of the Moldova Fruct Yuriy Fale.

Сообщение Moldovan farmers urged to switch to organic products to protect orchards появились сначала на EastFruit.

At the end of last year citing the National Food Safety Agency (ANSA) and the customs service, Moldovan farmer organizations reported that in 2020 almost 23,000 tons of plums were exported from the country to the European Union and in 2019, nearly 20,000 tons. This fruit was exported to 14 countries: Romania (10,500 tons), Poland (3,200 tons), Germany (2,600 tons), and Croatia (1,500 tons) are the largest buyers of Moldovan plums on the European market. Compared to the data for 2019, supplies to Romania decreased by 14% but in the other three countries, they increased by 112%, 88%, and 136% respectively. Representatives from the Moldovan farmer organizations believe that the dynamics of export growth to the EU could have been higher if farmers had previously created a centralized system for product purchases to form large consignments of goods throughout the marketing season.

According to Andriy Zbanka, an expert with the Federation of Agricultural Producers of Moldova (FARM), plum production in Moldova is concentrated mainly on small farms of several hectares to several dozen hectares of plum orchards. Despite the total area of ​​plum plantations (22,700 hectares) being almost half the area of ​​apple orchards (50,000 hectares) in the country, the total number of plum growers is significantly greater than that of apple producers.

Read also: Prices falling in Moldova for roots, tubers, and onions due to overstocks

Traders specializing in plum purchases and exports have to conduct business with numerous small farmers. Yet, the volumes of products merchants put in refrigerated storage for subsequent external deliveries rarely exceed 500-800 tons. Meanwhile, many European buyers in the last two or three years have been interested in systematic supplies during the plum season of at least 1,000-2,000 tons.

“In the European market, a Moldovan plum can be quite competitive in terms of sensory characteristics. However, in order for this product to be remembered and preferred by consumers, sufficiently large deliveries are required strictly according to the schedule established by the retail network. We are not entitled to send to the buyer one batch of goods within the agreed period and the other with a delay of a week or two. During this delay, the consumer will switch to the products of other suppliers, and in the worst case, they will forget about us altogether,” says Andriy Zbanka.

According to the expert, the problem can and should be solved by the merger of farms and small agricultural enterprises into large business cooperatives. The management of such structures would be able to monitor the requirements of certain markets in terms of the quantity and quality of agricultural products, its assortments, residual pesticide content, packaging and labelling, etc. Thanks to such cooperatives, farmers would be able to participate in the formation of the “price chain” not only at the distance between the farm and the refrigerator but at all other stages as well.

Сообщение Cooperatives will help Moldovan plum producers occupy niche in EU market появились сначала на EastFruit.

Frutilia is a Georgian fruit and vegetable export company with 15 years of experience. Frutilia has been exporting to post-Soviet states, but it has been working towards establishing links in the European market ever since the EU signed an Association Agreement with its Deep and Comprehensive Free Trade Area with Georgia on 27 June 2014. Fast forward to 2020 and for the first time in the history of the company and the country, Georgian peaches and nectarines were exported to the European market in Poland.

This summer, EastFruit contacted Vakhtang Bezhitashvili, Founder of Frutilia, to clarify the details of this historic export.

According to him, the first cargo shipment containing 20 tons of Georgian peaches and nectarines arrived safely at the Polish border. Initially, the Polish importer was not able to accept the Georgian fruits due to some errors in the document issued by the phytosanitary service of Georgia. However, Frutilia promptly corrected the inaccuracies and presented the revised document to the Polish customs officers for re-examination.

Read also: Peach has risen in price in Russia and Poland, while prices for plums have collapsed everywhere. Stone fruit market overview for the 32nd week of 2020

At the time, Vakhtang Bezhitashvili hoped their Georgian products would reach their destination in time despite the unforeseen delay so as not affect the fruits’ quality. Also, according to the requirements for imported agricultural products from non-EU countries, perishable fruits must pass laboratory control in Poland.

“We have been trying for years to find partners on the European market, even though we have been unable to export Georgian agricultural products for a long time due to various reasons. Many years later, the first load! I think we shouldn’t give up trying to enter the European market and win our niche in Europe. 20 tons is a very small volume, but in this case, the main thing is that our product is tried in Europe. I am sure that the European buyer will appreciate the special taste of Georgian fruits. We have already prepared the second container for export and are just waiting for the confirmation of the first cargo. If everything goes well, then the second container will be dispatched immediately, and in 5-7 days, the cargo will be at its destination,” as explained by Vakhtang Bezhitashvili back in August.

Сообщение Georgian company Frutilia exported peaches and nectarines to EU for first time in 2020 появились сначала на EastFruit.

According to the associations of agricultural producers of the Republic of Moldova, by mid-October 2020, Moldova exported a little more than 43 thousand tons of plums of the new crop, that is, about the same (44 thousand tons) as at the same period last year. Meanwhile, this year the plum harvest in the country, according to expert estimates, is about 40% lower than last year’s level (109 thousand tons). And one more important fact: of the mentioned export volume of Moldovan plums of the harvest-2020, about half (almost 22 thousand tons) was sent to the EU market.

Experts of the Moldovan agrarians’ associations believe that by the beginning of November no more than 3-5 thousand tons of plums remained in the refrigerators of agricultural and trading enterprises of the country. Most of this product can be classified as “export”.

Like last year, which was also dry, small plums account for a large share in the crop structure. However, as gardeners note, in 2020, the plum suffered little from hail, diseases, and pests. That is why it has good organoleptic characteristics and is stored for a long time without loss of quality.

Moreover, in Moldova, more than 70 agricultural enterprises, many of which grow plums, have been certified according to GLOBAL G.A.P. and GRASP standards, as well as accumulated experience of successful product export to the European market. Moreover, traders from some countries (Germany, Austria) prefer to buy unsorted and small plums in Moldova. Taking this into account, the operators of the Moldovan fruit market assume that by the end of the current season, the export of Moldovan plums to the EU will for the first time exceed the volume of supplies to the Russian Federation.

Сообщение For the first time, Moldova may sell more plums to the european market than to the russian появились сначала на EastFruit.

Due to its favorable geographic location, as well as favorable conditions for farming, over the past few years, Ukraine has become one of the leading suppliers of organic fruits and vegetables to the markets of Western Europe, occupying, as of the beginning of last year, the 4th place among the supplying countries in EU.

This is stated in the “Research of the Ukrainian Market for Organic Fruit and Vegetable Products-2019“, which was carried out at the initiative of the Ukrainian Fruit and Vegetable Business Development Project (UHBDP) with the participation of specialists from the certification body “Organic Standard,” as well as the educational and consulting project Organic Business School.

As the authors of the study note, currently, Ukrainian exporters of organic fruits and vegetables are actively using the advantages of the Association Agreement between the EU and Ukraine and the Deep and Comprehensive Free Trade Area, which is part of the Agreement.

The research emphasizes that additional control measures over Ukrainian products introduced in the EU in January 2016 do not apply to fruit and berry and vegetable crops, simplifying the EU’s export of fruit and vegetable products. At the same time, the study notes that competition, especially in the developed EU market, is relatively high. “Therefore, Ukrainian exporters need to prepare very carefully for the supply and promotion of their products to this market,” researchers report.

The largest organic markets in the world are concentrated in the USA, Germany, and France. Thus, in percentage terms, the US organic market has a 47% share of the world market, and the EU organic market – 37%.

“These are the areas of export of organic products from Ukraine that can be a priority. Although Ukrainian exporters should also pay attention to countries such as Switzerland, Canada, and Asian countries, particularly the United Arab Emirates, Japan, and China,” authors of the study noted.

The UHBDP also notes that organic vegetables have the largest market share among all categories of organic produce.

In countries such as Switzerland, Austria, Denmark, and Sweden, organic vegetables account for 10% or more total vegetable assortment sales. In comparison, organic fresh carrots and pumpkins account for almost 30% of Germany’s corresponding product segment.

Analyzing the Ukrainian organic fruit and vegetable market, the authors of the study draw attention to the fact that some product categories have an advantage in terms of sales on the external market, and some on the domestic market.

“In particular, Ukrainian producers of organic vegetables sell their products mainly on the domestic market through supermarket chains (Silpo, Auchan, Good Wine, WineTime), small specialized stores (Natur Boutique, Eco Lavka), Internet, direct delivery to end consumers through the organic basket concept, or through a store near the farm. The products are sold fresh. The assortment of fresh organic vegetables on the Ukrainian market includes potatoes, beets, carrots, tomatoes, cherry tomatoes, cucumbers, peppers, onions, garlic, radishes, beans, lettuce, arugula, spinach, Swiss chard, cilantro, dill, basil, eggplant, zucchini, sweet corn, white cabbage, broccoli, kale, Brussels sprouts, cauliflower, Peking cabbage, and Kale cabbage.

Organic fruits, including berries, are sold mainly for export to the EU and Switzerland. Partially, these products can also be found in the domestic market. For example, such products are watermelon, melon, pumpkin, grapes, blueberries, lingonberries, blackberries, raspberries, garden strawberries. These products are sold mainly fresh, although the berries are also sold frozen,” researchers reported.

It is noted that fresh organic apples supplied from Ukraine to foreign markets are intended only for further processing in the country of export. “The decision on whether to export fresh apple or apple concentrate from Ukraine is made depending on the market situation and the cost of logistics,” the authors of the study explained.

It should be noted that, in addition to cultivated organic fruit and berry products (raspberries, garden strawberries, chokeberries, apples), Ukrainian operators also sell wild plants: blueberries, blackberries, lingonberries, cranberries, elderberries, chokeberries, blackthorns, rose hips, sea buckthorn, mountain ash, wild strawberry, apple, and nuts.

“In total, about 20 Ukrainian operators export only wild berries. At the same time, 3 Ukrainian operators export walnut kernels, but only obtained as products of wild plants. The export of nuts grown in the fields of farms is not yet conducted. The main reason for the absence of such shipments is the young age of the walnut plantations and insufficient volumes for export,” the study explains.

The study also states that in 2018, 8 exporters supplied organic raspberries to EU markets, grown by 28 Ukrainian producers.

“An analysis of the importing countries of this berry shows that Ukrainian producers export their products to countries such as Poland, Czech Republic, France, Germany, Switzerland, Italy, Serbia, and the United Kingdom. What is more, every year, the geography of Ukrainian organic exports raspberry increases,” authors of the research noted.

Сообщение Research: Ukraine becomes one of the leading exporters of organic fruits and vegetables to EU markets появились сначала на EastFruit.

EastFruit analysts report that during the global COVID-19 pandemic (February – June 2020), Ukrainian fruit and vegetable exports fell 43% compared to the same period last year. During this period, Ukraine’s revenue from the trading of vegetables and fruits decreased to $ 58.5 million. A year earlier, for the same period, the export revenue of the Ukrainian fruit and vegetable sector was $ 101.3 million.

Three product groups, namely walnuts, frozen berries and fruits, and fresh apples, provided 64% of all export earnings during this period. A year earlier, during this period, these commodity items accounted for 74% of all Ukrainian fruit and vegetable exports. Accordingly, the drop in exports for key export groups has become the most significant, and the revenue from their exports has decreased precisely one and a half times in relation to the last year. Besides, if in 2019 during this period, the primary revenue to Ukraine was provided by the apple (about 40%), then in 2020, the apple was only in third place in terms of revenue after nuts and frozen berries and fruits with a specific weight of 16%.

“Most of all, during the COVID-19 pandemic, the export proceeds from the export of Ukrainian apples decreased by 4.5 times, although the average export price was significantly higher than last year! However, the COVID-19 pandemic has nothing to do with it,  instead, it stimulated the demand for apples in the EU countries and inflated prices for it. Unfortunately, the apple harvest in Ukraine in 2019 was relatively low, and domestic demand only increased against the background of a cold spring and quarantine. Therefore, high prices on the domestic market and a shortage of apples made export unprofitable,” explains Andriy Yarmak, an economist at the investment department of the UN Food and Agriculture Organization (FAO).

In the export of apples for the period from February to June 2020, Ukraine lost the most significant export earnings in relation to 2019 – about $ 26.6 million. Walnut was in second place in terms of the volume of decline in export earnings in this period. A decrease in the proceeds of exporters from the supply of walnuts abroad amounted to $ 9.4 million, or 36%.

“However, the situation with walnuts is fundamentally different from the situation with the export of apples. In this case, the dependence of the decrease in export volumes on the global coronavirus pandemic is visible. The season started in October 2019 with a record export rate, and the first three months of the season gave walnut farmers good revenue. However, already in January 2020, when China was quarantined, export demand dropped sharply, and export earnings were consistently lower than last year. Besides, the demand for Ukrainian walnuts in Turkey dropped sharply. Deliveries to the countries of the Middle East fell several times, which was not fully offset by the growing demand for walnuts in the EU countries. At the same time, the average wholesale prices also decreased, which negatively affected the revenue,” says Andriy Yarmak.

However, the decrease in the export of frozen berries and fruits in February – June 2020 was less significant – $ 1.5 million or 10%. The main reason was the increased competition in the EU market from suppliers of frozen berries from North Africa, namely Egypt and Morocco. This negatively affected prices, but the overall demand for frozen berries continued to remain quite high. The decline in sales in the HoReCa segment was almost entirely offset by the growth in retail sales.

Onions took fourth place in terms of export earnings of Ukraine in the analyzed period. It is worth noting the increase in exports by 83% or $ 3.1 million. However, the base for comparison was low – last year at that time, Ukraine imported onions, and prices were high. This year, onion prices are significantly lower than last year, and in the new season, onion prices allow us to consider the prospects for its export.

Сообщение Ukrainian fruit and vegetable exports collapsed during the COVID-19 pandemic появились сначала на EastFruit.