The European Union’s Fruit and
Vegetable Sector
The fruit and vegetable sector in the
European Union (EU) is very important,
representing approximately 17% of total
EU agriculture production and utilizing
about 3% of the cultivated area in the
EU.1 The EU’s policy in this sector has
four main criteria: the diversity of production types, the short shelf-life of
many products, the need to improve product quality and the importance of trade.
This sector is very heterogeneous as there
is widespread domestic production of
certain fruit and vegetables, encompassing a large variety of products, production systems, farm types and sizes as well
as marketing channels. Although the EU
has a very high degree of self-sufficiency
for produce, during the last 10 years this
sector has faced strong pressure from
highly concentrated retail and discount
chains on one side and strong competition from third-world products on the
other. However, both seasons and changes in climate limit cultivation in certain
parts of Europe. In particular, insufficient
quantities of produce during the winter
months are balanced by means of product cultivation in greenhouses. Other
products are imported from the Middle
East, Asia, North Africa, etc. Suppliers
from outside the EU can offer their products on the European market during the
winter months. Exotic produce can be
imported throughout the entire year
without difficulty. Retail and discount
chains have played an important role in
the setting of market prices, and third-world countries have offered products of
good quality at reasonable prices. The
marketshare of third-world countries has
rapidly increased: world-wide production
of produce reached 1,290 million tons
between 2001–2003 (i.e., fruit totaled 480
million tons and vegetables totaled 810
million tons). The largest producer in
this same period was China with a share
of 35% of world production. The production of fruit and vegetables has increased by 36% in volume between
1995–2003. Two-thirds of this growth originated in China where production increased by 96%, while production in the
EU- 15 increased by 6%, in India by 38%
and in the U.S. by 3%. 2
The Supply Chain
The EU is the main export destination as well as the main supply region
with almost one-half of the world’s imports and more than 40% of the world’s
exports. 2 Total EU consumption of fresh
fruit was 25 million tons in 2003, while
vegetable consumption (including potatoes) was 30 million tons. Italy, Germany
and France currently dominate the market for fresh fruit and vegetables, together accounting for approximately
one-half of total consumption. The climate limits the production
of a range of fruit and vegetables, which are grown in
more temperate locations.
Allied with seasonal changes, imports from third-world countries are, and
always have been, necessary
to supply the demand for
fruit and vegetables to the
EU. Improved growing, storage and distribution, however, have enabled producers
to reduce the negative influence of the seasons. Europeans consume more fruit
and vegetables than they
produce, leaving some interesting opportunities for
producers in developing countries. The
consumption of fresh fruit and vegetables, at present, is declining in some of
the largest markets in the EU, while, on
the other hand, there are smaller countries taking advantage of segments of this
market, especially the growing demand
for exotic fruits and vegetables.
Due to imports, outbreaks of foodborne illnesses now have the potential
to be global in scale. Europe’s strict
rules and regulations concerning hygiene, handling and logistics make it
tough for overseas companies to cope
with competition in the European market. Competition is heavy in the global
produce marketplace, and proper certification is a minimum requirement for
entry. Many companies assist producers
and exporters of fresh fruit and vegetables in developing countries to enter the
European market and establish sustainable trade relationships with European
buyers.
“...access to
and availability of
fresh produce
problematic
shelf life, quality,
The Common Market
Organization
The Common Market Organization
(CMO) for fresh fruit and vegetables was
established in 1962 to govern the sector’s
production and trade in the EU and to
achieve the Common Agriculture Policy’s objectives. The CMO has supported traditional production, often in
less-developed regions, using rural development measures but has been market-oriented. The first reform of the CMO
took place in 1996. The main objectives
of policies in this sector were
market orientation, decentralization of management,
grouping of supply and redirecting budgetary expenditure toward measures that
would respond to environmental demands. As a final
result of debate in both the
European Council and Parliament, Council Regulations (EC) 2200/96, 2201/96
and 2202/96 for fresh fruit
and vegetables, processed
fruit and vegetables and citrus were adopted in October 1996. In December
2002, the European Council
adopted Regulation (EC)
2966/2000 that amended the three
above-mentioned regulations. From 1996
until 2004, the European Commission
adopted a number of Commission Regulations (EC) that laid down the marketing standards for different fruit and
vegetables. Each had been amended several times within the above-mentioned
period. The current reform began with
debate launched in 2004 by the European Commission about the need for reform. The result of the debate was
publication regarding the simplification
of the CMO. The most important reasons for the new reform were the following: fall in consumption, imbalance in
the supply and distribution chains, limited influence of the producers’ organizations and coherence with rural
development aid and market standards.
Food safety standards were not part of
the basic regulation for fruit and vegetables, although food safety standards contribute to improvements in market
can be
because of short
cost and risk of
contamination.”
