Smaller garlic for China

A cold winter in China has led to a crop of smaller garlic, although overall yields will be similar to that of last year

A cold winter in China looks set to result in smaller sizes for the garlic crop this season.

This year's crop will be of good quality, but bulb size will be smaller than last season, according to Ryan Smith of export company Delica China, who noted that the estimated volumes should be similar to last year.

"Even though more garlic was planted for the 2010 harvest, the colder weather has meant the garlic size will be smaller," he said. "As much as 80 per cent of the harvested garlic will fall in the 50-60mm size range."

This year's harvest should see the product arrive in the domestic market by late-May or early June.

According to Goodfarmer's Kevin Li, early varieties in Henan Province could be ready by the middle of May, while in Jinshan, in Shandong Province, production will come online around early to mid-June.

Despite Mr Smith's prediction of a high-quality crop, Mr Li said it is still too early to comment on garlic quality for the coming season, but he anticipates the cold winter will lead to fewer problems with appearance.

"The temperature during the Chinese New Year period in northern China was lower than normal," he noted. "This made garlic grow slowly meaning we will not have much larger-sized garlic On the other hand, low temperatures will make garlic skin thicker, so when it is being processed, there will be fewer defects."

Garlic prices have been riding high in a range of US$1,000 to US$1,500 per tonne in recent months. Mr Smith said the higher prices are due to the 2009 harvest being down by around 20 per cent and the fact that speculators were buying the raw product and holding onto it in order to put upward pressure on prices.

"Price is always difficult to estimate, but early indications are that the price will continue to be high and may even exceed 2009 levels," he said.

Greek Produce rides the waves

As April is drawing to its end, 2010 seems to be going well for most produce shipped out of Greece. Weather has been particularly favorable though out winter and spring. Greece – so far - has been spared the adverse conditions seen in other producing countries. Citrus, kiwi, strawberries, potatoes, cucumber are all up compared to 2009.

Still the coming months are full of uncertainty. The country's financial impasse is tackled by the Government the EU and the IMF. Of course nobody knows what measures will be taken in the effort to stabilize the financial sector and what repercussions this "restructuring" of the country will have on the produce sector. A possible negative effect may be temporary increases in the cost of financing. Other aspects of the cost however, are expected to improve like logistics, labor and services (particularly from the public sector). Probably things will get tougher before they get any better.

But it certainly is not all doom and gloom! Plants have not stopped growing and the sun is definitely shining. A much needed clean up is expected in the sector with sanitizing effects. As the going gets tougher, serious packers will emerge stronger and that can only mean good news for customers and consumers alike.

"Considerably smaller crop cause of expensive early potatoes"

The price of early potatoes is at a high level. This is according to Jaap Loogman of Amsterdam. Two weeks ago the company imported the first early potatoes from Cyprus. "The crop is about 30% smaller than previously. Frost damage, water, hail, Phytophthora. They just about had everything on the island!"

"It is a strange market. The expectation is that prices will be higher than to-day during the middle of May, whilst normally at that time the good prices will be at an end" Joop continues. "Especially when harvesting in the Netherlands and Germany is somewhat late we will have good prices during the coming weeks. But when potatoes are expensive, everybody seems to be offering potatoes all of a sudden."

"Not only the Cyprus crop is at a low level" the importer who recently visited the supplier on Cyprus mentioned, "Also from Israel, Egypt and Spain a lot less potatoes are available. Only in Portugal it appears to be going well." According to the potato wholesaler the quality of the early crop arriving in the Netherlands is first class. The fields with potatoes infected with Phytophthora are ploughed again, sorted and remain in Cyprus,. That is being controlled properly."

The retail prices are from 80 to 85 cents for Diamonds from Cyprus. 76 cents for Malta's and 65 cents for Israeli and Egyptian nicola's. Despite the good prices Joop expects, that the retail trade will quickly change to early import potatoes. The quality of the old potatoes deteriorates and it is quite easy to buy a new potato lying next to it on the shelf!"

Morocco, bad weather reduce citrus export estimates

Heavy rainfalls affected citrus fruit production in Morocco, thus resizing export volume forecasts, which dropped from 532,000 expected tons in October, to 460,000 tons.

Unusually abundant rainfall have reduced export expectations for Moroccan citrus fruits, because of the damage registered in some production areas, announced the Moroccan Association of Citrus Fruit Exporters (ASPAM).

In an interview with Reuters, the association reports that "at the beginning of the season - last October - estimates regarding the export of citrus were around 532,000 tons, now the forecast has dwindled to only 460,000 tons. "

Citrus fruits are the first item of Moroccan exports, accounting for 30% of total agricultural exports. Morocco is now the fourth largest exporter in the Mediterranean region, preceded by Spain (first place), Turkey and Egypt.

In the region of Gharb, the country's main citrus production area, rainfall amounted to 746 mm in the period from September to March: according to government officials, it is the higher level in 40 years.

The result was a general flooding of the plantations in the region of Gharb (which produces 30% of national citrus), with a loss of fruit for a volume estimated at 50,000 tons.

Even the southern region of Souss, another area suited for citrus (with a share of 45% of national production) has been damaged due to heavy rain, with an estimated loss of 40,000 tonnes of fruit.

Many trees have died from asphyxiation due to radical stagnation of water. It is expected to take at least five years to restore production in the plants that were explanted and replaced. This factor will therefore impact on production volumes for the seasons to come.

In Morocco, agriculture produces 17% of national GDP and employs 40% of the total workforce in the country. The Moroccan government is investing significant resources in agriculture, through the "Green Plan".

Sicilian and Israeli researchers will cooperate against the tristeza disease of citrus

The scientist Moshe Bar Joseph will cooperate with PST Sicily to find a method for immunizing the plants. Professor Catara says: "Results are expected to be achieved in a short time".

Sicilian and Israeli's citrus pathologists will join forces to fight the tristeza disease of citrus. The Science and Technology Park of Sicily, PST, will cooperate with Professor Moshe Bar Joseph, a prominent Israeli expert on the disease, formerly serving as the Head of The S. Tolkowsky laboratory of Citrus Disease Research at the Volcani Centre, the scientific arm of the Israeli Department of Agriculture.

Moshe Bar Joseph explained: "Thanks to new technologies for genome analysis, we can now identify much quicker the molecules interfering with the virus replication (siRNA). We can isolate and use such information to develop means to protect the plants from later infections. The new methodologies could open the way for the continuous use of the sour orange rootstock. Sour orange is the most suitable rootstock, well adapted to Sicilian cultivars and soil conditions, yet unfortunately the sour orange rootstocks are also the most susceptible to citrus tristeza virus".

Bar Joseph had already visited the laboratories of the Park during the recent Citrus Biotechnology meeting in November, 2009 and could analyse the state of the art of the research on the virus responsible for the destruction of dozens of million of plants worldwide. The virus has been increasingly spreading in Sicily where it is causing great damages and stirring concern among the producers.

That was a fruit-bearing visit, and the opportunity for Professor Bar Joseph to meet some local experts and follow the advances the scientific community cooperating with the Park has made. During the recent months discussions continued, these had led to establishment of a forum involving all the experts in the field, aimed to advance a rapid and effective solution of the epidemics.

Thanks to the new technologies of rapid sequencing, the genomes of the different isolates of the virus now spreading in Sicily will be analysed and, through a deep study of the data with some bioinformatics instruments, a framework of the existing strains and of their effects on the plants will be outlined. The short-term goal is to insert a mechanism interfering with the pathogenic action in the plants. It will be a sort of vaccination to stop the infection caused by aggressive viral strains. The technique will prove effective if at the same time the strains coming from other continents are stopped.

This is now possible since the first sequencing of the citrus fruits genome has been completed. The President of the PST Sicily professor Antonino Catara announced: "We have signed an agreement with the research centres that will publish the whole genome in a month, and they will make the analysis platform available to us. Today" said Mr Catara "around the world and in Sicily, there are all the skills and technologies suitable to continue citrus production in spite of tristeza infections. And pooling those competences together will be the winning strategy to solve the problem in a relatively short time."

Dole sets a steady foot in Romania

The world's largest producer and marketer of top-quality fresh fruit and fresh vegetables is the first international fruit company to operate directly in Romania, where it has decided to enter in 2009 by acquiring its local distributor. After having supplied Romanian retailers and wholesalers through a distributor since the 90s, today Dole Europe, with its new division Dole Romania, already stands out as a key leader, intending to cover 25% of the 8 millions banana boxes of the estimated yearly national market.

"As a strong network through Europe, Dole has always been open and eager to embrace new opportunities in order to answer its customers' development on new markets. It is challenging and necessary, given the fact that Dole partners with retailers and wholesalers to build long-term ties and to establish a regular supply with frequently arriving fresh products. Expanding in Romania was a strategic goal for us, we wanted to provide our customers there with Dole's know-how and expertise all along the chain, from the source to them," says Jean-Christophe Juilliard, President of Dole Europe. "We will continue our development where we can bring added value, creating new division or acquiring local partners where the market conditions and potential are optimum".

Standing out as the leader of fresh fruit and vegetables, Dole has launched its first marketing campaign in Romania with the base line "Orice banana vrea sa fie Dole" (Every banana wants to be Dole).

'Our leadership in the banana category is undisputed, which is the reason for the "Every banana wants to be Dole" slogan, emphasizes Victor Esquivel, General Manager of Dole Romania. 'It is the first marketing project that we run in Romania and it will be highly visible.'

The national campaign consists of a TV spot that will be broadcast over several weeks since April 12th on the main media channels, and will be supported by several important BTL and trade marketing activities.

This campaign marks a push by Dole to expand the brand awareness, which is already up to 25%, and to develop the Romanians' consumption of fresh fruit, which is 10 kilograms below the EU annual average of 95 kilograms per capita. Indeed, bananas are ranked in the top 3 preferred fruits of the Romanians with apples and citrus, but the banana consumption by the 22 million Romanians is about 40% lower than the European average, amounting to about 9 kilograms per capita annually. The company wants to play a role in favoring healthy lifestyles, according to its belief that "Quality food is quality of life".

About Dole Europe: Dole Europe is one of the largest marketers of fresh produce on the continent, where it has been operating since 1992. It imports a wide range of fresh fruit and vegetables from both Dole Food Company's own farms and independent growers situated all over the world. Dole Europe also provides retailers with innovative solutions in terms of services and products. The company focuses on four core values: competence, responsibility, integrity and enthusiasm. Its network stretches from Scandinavia to South Africa, from Portugal to Russia, and includes 1,550 employees, working at 40 locations. More information at

Iraq: Decree to promote local production

Though Kurdistan Region has a vast area of fertile agricultural lands and the weather is very good for agriculture, the agricultural sector in the region is currently suffering from negligence and reduced activity and capacity.

Kurdistan Regional Government, Ministry of Agriculture and Water Resources ban the import of vegetables into the region for the purpose of protecting domestic agricultural production and promoting farmers to increase their production, and at the same time help them to market their products. This decree has been effective on April 25th, beginning with cucumbers.

It would not have a significant effect over the cucumber prices in the market and would not harm the consumers, as the domestic cucumber is already grown in greenhouses and ready to be supplied to the markets and fill demands.

This and many other factors have led to the heavy dependence of the Kurdish markets on imported agricultural products, mostly from neighbours countries. And this shortage in the local production capacity and heavy dependence on imports has been strengthened by the water shortage and drought that the region suffered since the past two years.

However, it is expected that the situation would significantly improve this year as a result of this protection plan and the considerable amount of raining during the winter and spring season.

Peru records garlic success

Sendings have risen markedly over the last four years as exports during the first bimester of 2010 soar again in value

Exports of Peruvian garlic rose by 178 per cent in value terms during the first two months of 2010, according to a report by the Peruvian Exporters Association (Adex).

Fresh and refrigerated garlic shipments were worth some US$536,117 in total, Adex said, up from just US$192,519 during the year-earlier period.

The bulk of the sendings was absorbed by the Colombian market, which imported 60 per cent of the volume, worth US$320,977 – an increase of 97 per cent over the first two months in 2009.

Spain ranked as the second-largest destination, according to Adex, receiving US$112,200 worth of garlic or 21 per cent of the total. Again sendings were up by 284 per cent over 2009.

Peru exported US$695,336-worth of fresh and refrigerated garlic in 2007, dipping the following year to US$630,561.

Last year, sendings registered some US$804,584 in value – a rise of 28 per cent over 2008.

Australian export firm collapses

Australian fruit export company JAK Fruit has gone into voluntary administration, with debts of over A$10m

A leading Australian fruit exporter has collapsed with debts in excess of A$10m (US$9.25m).

Mildura-based JAK Fruit Pty Ltd, run by managing director Jason Kotz, went into voluntary administration on Tuesday 27 April, the Sunraysia Daily reported.

The company's primary interests were exporting citrus and table grapes, and it also exported avocados.

Administrator Wayne Benton from Melbourne-based insolvency company BRI Ferrier said Mr Kotz had called his firm to ask them to take control of the company, with JAK Fruit owing growers A$4.1m and its banks around A$6m.

On Wednesday, JAK Fruit's Mildura head office was stripped and a 'For Sale' sign placed outside.

In April last year Fruitnet.com reported that the firm had moved into farming, with the self-funded acquisition of an 80ha plantation in Nangiloc, in the Sunraysia region.

Mr Benton said he was hopeful growers would receive all the money they were owed but stressed that "would be contingent on a few things".

Coca-Cola to expand fruit juice portfolio in India

Beverage giant Coca-Cola is looking at expanding its fruit-based drinks portfolio by adding apple and mixed-fruit juice in its range.

"Coca-Cola India is currently test marketing Minute Maid apple juice and Minute Maid mixed-fruit juice in Kolkata," the company's and President Atul Singh told reporters here today.

The company, at present, sells orange and lime juices under its 'Minute Maid' brand.

He said Coca-Cola initiated test marketing for the apple and mixed-fruit juices around three months ago.

Singh, however, declined to give details regarding when the company would introduce the new juices in other parts of the country.

Speaking about the company's performance, he said, it has been a good year for them and their sales have increased by 29 per cent in the first quarter.

Asked about the softening of sugar prices and its impact on prices of products in the country, he said, "Sugar is not the only variable and there are many other variables on which the prices depends...We are continuously evaluating the options."

India: Thirty seven mango juice outlets sealed in two days

The health department of Ahmedabad Municipal Corporation swung into action against traders selling mango juice and other products and sealed around 37 outlets and destroyed 1,800 litre mango juice in two days in the east zone of the city.

The department sealed mango juice centres and dairy outlets for selling seasonal juices without obtaining licence from the civic authorities.

The health department officials raided outlets in Nikol, Khokara, Amraiwadi, Bapunagar, Mahadevnagar, among many other places in the east zone of the city.

Majority of the traders sell mango juice at lucrative rates, which looking at the current fruit prices, will not be very affordable to them, if they do not mix with other cheaper commodities. "The traders use papaya, gram flour, sugar syrup along with pumpkin. Moreover, the hyper-level of food colour is also not permitted in mango and other food products," an official of the AMC's health department told DNA on Sunday.

The increase in number of gastroenteritis cases in summer is due to such adulterated food products. "People should avoid such food products so that they should not have any health-related problems," said official.

The officials also said that the department may carry out raids on more outlets in the city. They have identified nearly 1400-1500 outlets operating without obtaining health licence from AMC.

UK: Blueberries outsell strawberries

The most quintessentially of English summer fruits has been knocked off its perch by an American interloper. Blueberries are outselling strawberries.

For the first time ever, shoppers have spent more money on blueberries than on strawberries. So far this year the total spend on blueberries has outstripped the spend on strawberries by 20 per cent at Waitrose, with "hundreds of thousands of pounds" more spent on the small dark blue fruit than on the soft red fruit.

Twenty years ago blueberries were considered an exotic import, usually shipped in from the US or South America, and as rare on a supermarket shelf as a guava or Sharon fruit. Thanks to a concerted effort to grow them in Britain, and a variety of nutritionists trumpeting their health benefits, blueberries have become increasingly mainstream.

Though the bulk of the strawberries are sold during the British summer, Waitrose insisted the surge in sales of blueberries – double the sales of last year – were more than a quirk of the weather. Last week's sunny spell saw sales of blueberries jump 181 per cent on last year, while strawberry sales increased by just 16 per cent.

Last year, thanks to a perfect growing season and an increasing number of farmers embracing the fruit, Britain's blueberry crop surged by 305 per cent. It the trend continues Britain will produce more blueberries than raspberries within a year or two.

And, according to British Summer Fruits, the trade body, British consumers are already eating more blueberries than raspberries, with 11,000 tonnes of blueberries sold last year, up from 1,000 a decade ago. Laurence Olins, the chairman, said: "It's been a revelation over the last ten years, let alone the last twenty. Children love them, they are good for you and consumers have embraced the health message."

A Waitrose spokesman said: "There is a deeper trend going on here. People are buying them for their health benefits and because they require no preparation whatsoever." So-called lazy fruits, have shot up in popularity in recent years as commuters in a rush and fussy eaters embrace foods that don't get the eaters' hands dirty.

Blueberries are often hailed as a superfood, with its high levels of Vitamin C. Some nutritionists claim that dark-coloured berries help protect against cancer, heart disease and even ageing.

New Zealand: Tomato season 'toughest in decades'

Food processor Wattie's has finished harvesting and processing its 73rd New Zealand tomato crop after what its agronomists believe has been the toughest tomato season in decades.

However, the company says it has enough tomatoes for its needs.

Wattie's Crop Supply Agronomist Nigel Halpin says that after the coldest, wettest season for 50 years – more rain than during Cyclone Bola - the Hawkes Bay crop was saved by an uncharacteristically dry harvest period and the skills of the growers to maximise the harvest.

"The contrast with last season couldn't have been more marked – cold and wet, versus hot and dry. The paddocks with light, free-draining soils preformed best for us this year. These are the same paddocks that suffered badly in last year's hot, dry weather."

"After a planting period that was delayed by rain which forced us into night planting, and then a cold and wet summer, mother nature gave us great harvesting conditions. These conditions helped the crop ripen prior to harvest."

Wattie's grows its own variety of tomato in the Hawke's Bay across 415 hectares, on bushes rather than vines.

Tomatoes contribute to the total of around 130,000 tonnes of local fruit and vegetables grown for the Wattie's branded products annually.

"Plenty of Brazilian apples in the coming months"

For more than a month now Brazilian apples have been imported by VerDi Import. "During the coming weeks the variety Royal Gala will arrive. After that the Fuji, Cripps Pink and in smaller volumes the Braeburn" say commercial director Kees Kooijman and Gert-Jan van den Heuvel, who is responsible for the import from South America. "In the coming months only Brazil will be important!"

Traditionally Brazil only produce smaller size apples. VerDi Import join this trend. "We have set our limit slightly lower this year and as a result import sizes 90 to 150 inclusive. Incidentally 6 apples of this size fit perfectly on a small dish. We are slowly getting more enquiries from supermarkets" Kees says. The apples from Brazil are available at VerDi Import in parcels of 18 and 2.5 kgs. Of course in addition other consumer packings are also available, such as plastic bags of 1.5 or 2 kgs or foodtainers.

However, the market situation for Brazilian apples has changed
compared to last year. "There is a lively internal market, transport is far more expensive and the rate of exchange of the Brazilian real to the dollar and the Euro is very much to our disadvantage. Also the increase in scale at exporters has increased" Gert van den Heuvel sums up. "All this resulted in higher prices for apples and nevertheless importers show an interest in importing."

The most important outlets for Brazilian apples are Scandinavia, Germany, Eastern Europe and the Netherlands. "Southern Europe and Russia have of traditionally been interested in large sizes" Gert-Jan explains. "The quality of the apples is comparable to last year. Traditionally the Brazilian apples have a nice red colour and have a sweet taste."

After Brazil arrivals are expected from Chile, New Zealand and South Africa. "But Brazil supply relatively the cheapest import apples to Europe" Kees emphasizes. "The first New Zealand consignment is on the way, but high product costs in the present economic circumstances are the reason that the apples are expensive. In addition Chile has the opportunity to export to the United States."

VerDi only import apples from GlobalGap certified suppliers. "We have worked for years already with most of our suppliers and we are in close contact with them. We also have our own technical personnel all over the world controlling the quality and food safety" Gert-Jan says. "The consumer has become more critical and therefore the retail often make stricter demands than the EU-norms in the area of food safety. In this way we can satisfy the special requirements of the supermarkets with regard to the residue analysis.

Spain's stonefruit sector ‘faces losses’

Heavy rains earlier this year could lead to losses in Spain's stonefruit crop, while lower volumes are also expected in Italy

Spain could lose as much as 20 per cent of its stonefruit crop this season, following damage caused during flowering by heavy rains earlier this year, while similar losses could also be seen in Italy.

In an interview with Eurofruit Magazine, Paco Borrás, sales director of leading Spanish grower-marketer Anecoop, revealed that the 2010 Spanish stonefruit harvest is expected to fall by between 15-20 per cent, after the rain and flood damage.

Mr Borrás claimed looses of a similar percentage have also been predicted in Italy, which itself suffered heavy rains during the early part of the year.

Putting the situation in context, Anecoop's sales director said that if the expected levels of damage only reached 10 per cent, "that would be considered a great deal".

Mr Borrás said the rains had caused "problems with flowering", which was likely to have consequences for the development of the fruit.

However, he added that the potentially bad news for Spanish and Italian stonefruit growers could indirectly benefit alternative crops also available at the same time, such as melons and watermelons.

Chilean kiwifruit sector meets targets

Raising standards, funding market research and coordinating international promotions are top of the industry's agenda

The Chilean Kiwifruit Committee is well on its way to achieving the initial objective of boosting the image of the country's kiwifruit on the global market by improving fruit quality and consistency.

"The Ripeness Assurance Program (PAM) has already been implemented and is now in its second season," said chairman Ricardo González in a press release.

"Production manuals have been developed, and a global research project has been fielded. Input from this study will help guide the Committee's future activities. Combined, this is having a powerful effect on bringing together all those involved in the kiwifruit industry."

The organisation was established last year with the assistance and support of the Chilean Ministry of Agriculture, the Chilean Exporters Association (Asoex) and the Chilean Fruit Growers' Federation (Fedefruta).

According to Mr González, the key objective is to raise Chile's competitiveness in destination kiwifruit markets. "We are working very hard to strive for a more reliable and consistent product, in order to ensure a more satisfying experience for consumers," he added.

To that end, the Committee is focusing on raising pre- and post-harvest standards, funding market potential research and securing funding for aggressive market development promotions in selected high-opportunity international markets.

"The need for unified action in the kiwifruit sector has long been recognised and it's a tribute to growers in Chile that they have achieved such a strong collective agreement to move forward and achieve mutually agreed objectives," said Asoex chairman Ronald Bown.

"The kiwifruit industry has consistently grown throughout the past years, thus a call for action from the major growers and exporters will help to improve quality standards and the perception of Chilean kiwifruit in foreign markets," added Rodrigo Echeverría, chairman of Fedefruta.

The Chilean Kiwifruit Committee currently represents more than 85 per cent of national exports.

Florette launches new salad items

The French salads specialist has added the Salades Evasion range to its assortment, as well as a football-themed product for the UK

In order to boost the mixed salad category this spring, French prepacked salads specialist Florette is launching three innovative salads under its new Salades Evasion (Escape Salads) range.

The new range comprises the Italian salad, the Greek salad and the Scandinavian salad, each product containing a mixture of different lettuces with a sauce and an extra ingredient included in sachets.

The 130g Italian salad bag comes with an olive oil and basil dressing and parmesan, the Greek salad (215g) blends feta cheese and tatziki, while the Scandinavian salad (235g) mixes smoked salmon and a creamy dill sauce.

In the UK, Florette is set to target football enthusiasts with the summer launch of the England Three Lions Salad, a mix of Lollo rosso, frisee, radicchio and spinach leaves designed to suit all tastes.

This line is a first for the produce category, with the product carrying the Three Lions crest, the symbol of the England team.

Florette's marketing manager, Elaine Smith, commented: "The tournament takes place during our peak sales period – half of all bagged salad sales are secured during the summer months – and has great synergy with the key salad occasions of BBQs and summer socialising. We believe that our new official England Three Lions Salad will encourage considerable additional purchase during this key selling period, while also drawing in new consumers to trade up into the bagged salad category. We want consumers to think of it as the must-have addition to their tournament shopping basket."

The Three Lions Salad, in stores from May, will be supported by point-of-sale and price promotions, as well as an on-pack promotion offering consumers the chance to win a luxury gas barbecue by sending in their favourite football salad recipes.

Major reorganisation at Metro Group

Retailer plans to integrate management at Metro AG and Metro Cash & Carry, with the latter driving growth in new markets

Food retailer Metro Group has unveiled plans for a major streamlining of its corporate structure, a move which will include merging management and administrative positions at its Metro AG holding company and Metro Cash & Carry division.

As part of the restructuring, which aims to continue the group's recent drive towards greater efficiency and customer focus under its recently launched Shape initiative, Metro will also split its international cash and carry operations into two units – one for Europe, Middle East and North Africa, one for Asia and new markets.

"Metro Group's management organisation will be significantly simplified," the company confirmed. "The management and administrative functions at the group's holding company, Metro AG, and at Metro Cash & Carry are to be, to a large extent, integrated."

As part of the reorganisation, Metro Cash & Carry's two new business units will be headed up by Joël Saveuse (Europe/MENA) and Frans Muller (Asia/New Markets) respectively. Both are currently members of the Metro AG management board.

"The new structure reflects the great importance Metro Cash & Carry has within the group, and takes into account the considerably different regional market requirements," said a spokesperson for the company.

The announcement came on the same day that Metro Group announced a 7 per cent downturn in Metro AG's net income to €519m, from €558m in 2008. The group's total international revenues also fell in 2009, by 4 per cent to €66bn.

Despite the poor results, however, the group said the planned reorganisation would aid the implementation of its Shape programme as well as enabling it to "accelerate" its international expansion in the medium term.

"Hereby, Metro Group is implementing the leitmotif of Shape 2012, namely to become more efficient and more customer-orientated, in the holding structures," the spokesperson continued.

The move will be seen as underlining the importance of Metro's Cash & Carry business to the overall success of the group.

Metro Cash & Carry is seen as the part of the business which can generate a large proportion of the improved earnings targeted by Shape.

The company is putting its faith in the new structure also enabling it to address strategic areas more effectively in different parts of the world.

For the Europe/MENA business unit, those areas will mainly involve a turnaround in Germany, the extension of its private label range and the further development of delivery services.

In Asia and other emerging markets, meanwhile, the focus will be on pushing forward the group's international expansion, as well as improving its capital efficiency through new store openings.

"Shape got to a very good start in 2009 and already contributed €208m to EBIT in its first year," said Dr Eckhard Cordes, chief executive of Metro Group. "Having concentrated, in the first phase, especially on cost savings, we are now focusing in particular on productivity gains."

He continued: "Thereby, Metro Cash & Carry, as one of the group's growth drivers, assumes a key position. The new structure enables us to implement the kicked-off change processes in the most optimal way."

The composition of Metro AG's management board is expected to remain unchanged, with Joël Saveuse remaining in charge of hypermarket chain Real in addition to his new cash and carry role.

Day-to-day management of Real will be shared between Roland Neuwald, who takes charge of Real Germany, and Didier Fleury, who will be responsible for its eastern European network.

Organic sales suffer slump in UK

Sales of organic fresh produce declined significantly in 2009, as consumers sought to tighten their purse strings during the recession

UK sales of organic food, drink and other products slumped by 12.9 per cent in 2009, according to the Organic Market Report 2010, released today at the Natural and Organic Products Europe show in London.

The biggest losers were organic fruit and vegetables, as well as organic meat and bread, which traditionally have the highest price differential in comparison with their conventional equivalent, the Guardian reported.

Sales of home delivery organic fruit and vegetable boxes also diminished, by 9.8 per cent, while supermarkets saw sales of organic fruit and vegetables dwindle by 14.8 per cent.

Overall, organic sales for 2009 stood at £1.84bn (€2.09bn), down from a record high of £2.1bn (€2.38bn) in 2008, according to the report, which is produced annually by the Soil Association.

More positively, the report suggests that consumer confidence is at last returning, with growth of 2-5 per cent predicted for 2010.

Peter Melchett, the Soil Association's policy director, commented: "It has been a tough year for the organic market, but we have seen the businesses that are most committed to communicating the many real benefits of organic food and farming to the public perform best. Confidence is now returning, and with the growing recognition of the need for environmentally sustainable production systems that are less reliant on fossil fuels, we are confident that the organic market, having weathered the recession, will return to growth."

Australian citrus crop down

This year's Australian citrus crop will be down in terms of tonnage, but fruit size will be larger than average

Australian citrus growers are expecting smaller crop sizes overall but the fruit size will be very large, according to the latest crop predictions issued for the south east of the country.

Murray Valley Citrus Board industry development officer Mary Cannard said the region's forecast for navel oranges was 30 per cent down on last year at 61,800 tonnes, the Weekly Times reported.

However Ms Cannard said it was too early to estimate the region's valencia orange crop.

Riverina Citrus officer Darren Gibbs said New South Wales growers expected to pick 69,000 tonnes of navels this season, down from 73,700 tonnes last year.

"While the numbers of fruit on the trees is markedly down on summer varieties, the winter navels have shown little effect of the hot spell in November," he said.

Mr Gibbs said winter navels were 15mm bigger on average than last year, while summer navels were 11mm larger.

The Riverina is Australia's largest valencia orange producing region, and is expected to yield 78,000 tonnes this year, 29 per cent down on last year.

Citrus Growers of South Australia industry development officer Kym Thiel said the November heatwave was not as bad as first feared, and the navel crop from the state's Riverland region was now expected to be around 55,000 tonnes.

Egyptian grapes headed for early start

Unseasonable weather may help Egyptian grape exporters this season by bringing the start date forward

This year, the Egyptian grape season is expected to begin early as a result of highly erratic weather conditions.

An early start to the season allows exporters to take full advantage of the period in May when local competition is at its lowest, as the Indian season reaches its conclusion and the Spanish season is yet to commence.

"We had a very warm winter, which had a positive effect on earliness," said Amr El-Beltagy of exporter Belco. "We estimate that the season might be a week earlier than usual, starting with white grapes in the first week of May, or in the second week at the latest, and finishing with red grapes in the third or fourth week of June."

However, although warm winter weather may have aided producers in bringing the harvest time forward, it may also result in lower soil fertility.

"It looks like there is going to be a decrease in production is some areas of Egypt due to the lower fertility of the soil resulting from the weather conditions," explained Tarek Bedir of Magrabi Agriculture. "We expect our production to be down a little compared with last year, but nothing is concrete at this moment."

New Zealand melon season comes to a close

The main growing regions are Northland, Hawkes Bay, Gisborne, Bay of Plenty, Waikato, Nelson. The varieties available are Watermelon, Rock melon (also known as the cantaloup), Honey Dew with Seedless Watermelons being trialed and in early development stages. The New Zealand melons are grown mainly for the domestic market but there is also a small export program for Rouge melons from Gisborne into some Asian markets also some trade to the pacific islands for the other varieties.

Volumes have been significantly down on the previous season due to an exceptionally cold October / November and the drought in Northland and heavy rain in the Gisborne / Hawkes Bay regions in February. Volumes are down at least 25% due to these conditions and these conditions have also effected the quality of the fruit reducing the marketable volumes available

Imports have effected the New Zealand growers this season with Supermarkets switching back to imported product due to the inconsistent availability and quality of NZ fruit in later quarter of the season. They now have good quality watermelons (Seedless & Seeded) available, but both key chains have made commitments to imported fruit from Australia.

First ever biodegradable bag for frozen fruits and vegetables introduced

Innovative Technology provides sustainable alternative to traditional frozen fruit and vegetable packaging

Stahlbush Island Farms, a national leader in sustainable agriculture and food production, has launched the first-of-its-kind biodegradable bag for their frozen fruit and vegetable lines.

Consumers can now enjoy Stahlbush Island Farms frozen fruits and vegetables knowing when they dispose of the BioBag they will be helping the environment. This bag is designed to biodegrade in months, rather than the hundreds of years it takes standard polyethylene packaging to break down.

The BioBag is a result of two years of collaboration between Stahlbush and Cadillac Products Packaging Company of Troy, Michigan. Over the course of the project, a unique combination of manufacturing practices and processes with biodegradable materials allowed the BioBag to meet the necessary criteria to be a sustainable alternative to traditional flexible packaging.

A key challenge was to create a biodegradable bag that maintains a normal shelf life for the twenty different frozen fruit and vegetable product lines produced at Stahlbush Island Farms. This was achieved by leveraging the exclusive properties of the brown kraft paper used by Stahlbush for its packaging and the ink used on the BioBag, which is an innovative water-based technology.

Stahlbush and Cadillac Products Packaging Company believe packaging like the BioBag should become the norm, not the exception, in the frozen fruit and vegetable industry. To assist other companies in implementing more environmentally friendly packages like the BioBag, Stahlbush and Cadillac Products Packaging Company will share their experiences and innovative practices.

Stahlbush sees innovation as a key tool to improve soil, energy use, water, biodiversity, and food safety. The company is constantly looking for innovative ways to use technology and incorporate creative, sustainable ideas into its farming and business practices.

About Stahlbush Island Farms

Located in the heart of Oregon's lush Willamette Valley, Stahlbush Island Farms is an environmentally-friendly farm and food processor committed to sustainable agriculture. The farm currently grows vegetables and fruits on nearly 5,000 acres of land and has practiced sustainable farming and food processing for nearly 25 years.

The company's dedication to cleaner, greener practices is evidenced through its protection of river areas, efficient water use, low tillage methods, and many other efforts to create a better food system. One hundred percent of the farms are "certified sustainable" by the Food Alliance. There are 1,500 acres USDA Certified Organic by Oregon Tilth, a non-profit research and education organization certifying organic farmers, processors, retailers, and handlers throughout Oregon. In July 2009, the farm began full operations of the first-of-its-kind BioGas Plant in North America. The cutting-edge Biogas plant supports Stahlbush Island Farms' goal of minimizing its carbon footprint and gaining energy independence through the creation of a renewable, on-farm energy source.

Ireland: Fyffes' prices slip on weak banana market

Ireland: Fyffes' prices slip on weak banana market

Flagging banana prices have left Fyffes dependent on the benefit of European import duty concessions to meet the profits target which the tropical fruits group lowered last month.

The Irish based group warned of "unfavourable" and "difficult" market so far this year, highlighting conditions since early March, when the company cut to E14m-18m its forecast for underlying earnings for the full year.

"Selling prices, particularly in Continental Europe, in the period since then have been significantly lower than anticipated," Fyffes said.

While the company said it was standing by its target range for earnings before interest, tax and amortisation for 2010, hitting it was dependent on Brussels implementing duty reductions agreed in December to end to the so-called banana wars.

European Union imports on duties of bananas from Latin America are being reduced, over seven years, from E176 per tonne to E114 per tonne, making them more competitive with shipments from former French and UK colonies in Africa and the Caribbean, which pay no tariffs.

The concessions appear "to be proceeding as expected", Fyffes said.

Prices tumble

The company failed to elaborate on the reasons for the soft conditions in the fruit market.

However, Fyffes has a history of weaker sales during the kind of extended cold conditions which Europe suffered this winter.

Sipef, the bananas-to-rubber plantations group, said last week: "Due to an extended winter in Europe with reduced consumption and generally large supply, the spot market price for bananas dropped substantially, 20%, below last year's first quarter 2009 prices."

Fyffes made its announcement after the close of share trading in Dublin, where its stock closed unchanged at E0.37.

Mandarin export Southern Hemisphere to grow 8% in 2010

Mandarin export Southern Hemisphere to grow 8% in 2010

It is estimated that Chilean shipments will remain similar to last year. Argentina's exports to date, experience a decline, which will be offset by an increase in South Africa and Peru.

iQonsulting released its first report on the export of mandarins in the Southern Hemisphere, which this year presented an increase of 8 percent in total supply, recording 342,800 tonnes compared with 317,000 tons from 2009-according to estimates made on April 13.

In particular, Chile exported one percent more than in 2009 (that year 27,680 tons were exported) totalling 27,922 tonnes. In the case of South Africa shipments reached 112,500 tons, registering a rise of 10 percent compared with the previous year (102,000tons).

The greatest increase is in the hands of Peru, a country which exported 37 percent more than last year, recording shipments of nearly 57,000 tons versus 41,300 tons in 2009.

iQonsulting specified that the increase in volumes of Peruvian exports "is a greater supply of Satsumas (34,300 tons) early in the European markets and in the late stage increased availability of tangelos (22,600 tons). In the case of South Africa, the increase in supply would be greater for clementines (45,863 tons). "

The increase from South Africa and Peru will compensate a drop of 3.9 percent from Argentina, which recorded exports of 110,000 tons compared to 114,400 tonnes in 2009.

In the case of Uruguay, the increase would be 12 percent to approximately 35,500 tonnes versus 31,600 tonnes last year.

In the case of Chile's fruit observed in the Region IV usually with large sizes and good colour. "The only concern with exporters - iQonsulting says," is that the accumulation of soluble solids was not like last year when there was a higher concentration than in other seasons. This could affect the first exports to Japan which requires a minimum of sugar and divert a larger volume to the United States if the fruit is in the colour and size as the market demands. "

In regions V, VI and Metropolitan area, the quality of the fruit is best seen with larger calibres, due to lower production. Here, one of the potential problems could be the number of seeds per fruit, because cross-pollination with other citrus fruits, which would limit exports to the United States.

Increase in the export of Brazilian fresh fruits

First quarter of the year points towards the return of the sector in the international market

The first quarter of the year begins in a positive manner for the export of fresh fruits after a weak 2009. The volume shipped until March totaled 113 thousand tons, a slight increase of 0.60% compared to last year. However, there are fruits that had a better performance, such as mango, which had an increase of 12% in exported volume; lime with 11%; and melon with 10%.

The exports to the United States increased by 130%, mainly due to mango and apple. Nonetheless, Europe, the biggest importer of fruits from Brazil still has a negative balance, with a reduction of 2.24% in the exported volume compared to last year.

Regarding processed fruits – juices, pulps and nuts, there was a reduction of 9% in the value in comparison to last year, influenced by the retraction of orange juice. The nuts, however, had a good representation in exports. The cashew nut increased by 20% of the exported value, Brazil nuts in shells had an increase of 67% and Brazil nuts without the shells had an increase of 496%.

Arab Countries

The highlight of the first quarter goes to the Arab countries that increased the purchase of fresh Brazilian fruits by 30%. The main purchasing countries were the United Arab Emirates, Libya, Saudi Arabia and Oman. The fruit responsible for this performance was the apple, which exported 4 thousand tons to this region, showing an increase of 60% in comparison to the same period last year. The processed fruits, however, had a slight increase of 3%, and the main countries were Lebanon, United Arab Emirates and Kuwait.

Despite the Arab countries representing only 2.85% of the export of Brazilian fresh fruits and 1.16% of the processed fruits, "there is a high tendency to increase in case the Brazilian companies start to invest in this market", states the executive manager of Ibraf, Valeska de Oliveira. "Some Arab countries like the Emirates and Saudi Arabia are part of the target markets on the next international marketing project executed in partnership with Apex-Brasil (Brazilian Trade and Investment Promotion Agency), due to the increase in demand by these countries for fresh and processed fruits such as pulps and nuts", he adds.