Wednesday, May 12, 2010

Spain: Price of fruit and vegetables in retail trade fell in the first quarter of 2010

The prices of fruit and vegetables in the Spanish retail trade decreased 15.7% in the first trimester of 2010 compared to the same period in 2009, according to the data from the "Observatory of Food Prices and Drugstore Retail Trade in Spain" from the Ministry of Industry, Tourism and Commerce. Compared to the previous trimester (October-December 2009), prices have also fallen by a solid 6.4%.

In regard to the prices of fruit and vegetables of different cities in Spain, it appears that Huelva is the city with the lowest prices and Pamplona is the most expensive city.

The five Spanish cities with the lowest prices on fruit and vegetables during the first trimester of 2010 compared to the same period in 2009 are Huelva, Zaragoza, Jerez de la Frontera, Toledo and Cuenca. On the other hand, the most expensive are Pamplona, Santander, Lleida, Soria, and San Sebastian.

In the last year, prices of fruit and vegetables have decreased in all cities. The biggest fall was recorded in Valencia (-23.2%), and lowest in Oviedo (-5.9%). As to the fourth trimester of 2009, prices have decreased in most cities. The major decrease occurred in Valencia (-13.9%), and the largest increase in Huesca (+6.4%)

With regard to formats, the Observatory of Food Prices and Drugstore in Retail in Spain indicates that in the first trimester of 2010 medium-sized supermarkets are positioned as the cheapest form of fruits and vegetables. The supply market is the format with higher prices. In fruit and vegetables, the price difference by format is a maximum of 8%.

In general, in the food sector, prices of all products observed in the first trimester of 2010 by this Observatory have been reduced compared to the previous trimester, and compared to the same period of 2009. This downward trend is observed extensively in all cities, formats and banners.

Peru: Avocado replaces coca

In the valley of the rivers Apurimac and Ene (VRAE), a Palta production product gains ground.

In Acobamba and Andamarca, Junin, some country people have set aside their coca crops and they are now opting for Hass and Forte avocados. In reward, the soil has rewarded them with high quality products that can weight by as much as two kilos each.

These avocados, located 2,400 to 2,600m above sea level, are produced organically due to the weather and the soil's benefits. Thus, Junin's regional government arranged the delivery of 100,000 plants in order to broaden the production and encourage the development in these remote places.

Poor farmers coming from 35 communities in the area flocked to the towns of Andamarca, Acomba, Milopata and Matichacra in order to receive the first lot of 5,617 trees for their fields. The project, with an investment of 1,182,000, aims to plant 100 acres of this fruit.

The plants are produced in a nursery located in an area of 5000 square meters donated by the District Municipality of Andamarca.

The plans:

The regional president of Junin, Vladimiro Huaroc, indicated that these areas will be reforested with 80 hectares of lucuma and cherimoya plants.

Huaroc added that the certification of the avocados produced in this area is being arranged through the respective managements so that they can be sold abroad.

Oscar Calixto Gavino, Regional Director of Agriculture, manifested that the project has the support of trade technicians who guide the producers in this area to obtain export-quality avocados.

The president of the Avocado Growers Association in Junin, René Sarapura said that 50 farmers will soon provide avocados for Andamarca mall Plaza Vea Huancayo. "We are currently producing up to half a ton of avocados per week in this area", she said.

US: Schools get $1.2M for fruit, vegetables

US: Schools get $1.2M for fruit, vegetables

More than $1.2 million in grants have been awarded to school districts and other state agencies by the South Dakota Department of Education's Child and Adult Nutrition Services.

The Fresh Fruit and Vegetable Program provides money to elementary schools for the purchase of fruits and vegetables. The snacks must be served to students at times other than schools' breakfast or lunch meals. Schools with at least half of their students eligible for free or reduced-price meals receive funding priority.

Eighty elementary schools in 51 districts will get the grants for the 2010-2011 school year. Thirty-five sites will receive the special funding for the first time.

US: Iowa farmers look to grow water spinach

Jay Lee and about a dozen other Hmong farmers living in central Iowa are asking for permission to grow water spinach, a staple among many Asian populations that is considered a noxious weed in the United States.

The U.S. Department of Agriculture generally bans Americans from growing or possessing the vegetable because it can create a quick-growing mat on lakes that kills or crowds out native species. It's illegal in Iowa now.

A USDA official from Nebraska discovered several Des Moines-area farmers with the plant last year. That has set off a lobbying effort for Iowa to allow the spinach, which tastes like the common varieties sold in the United States.

"Lots of Asians love this food dearly, so we wish to grow this," Lee said.

Agriculture Secretary Bill Northey sympathizes with the farmers. "This would be like if someone said you couldn't grow sweet corn in Iowa," he said.

Except that sweet corn doesn't spread on its own.

"It's tough," Northey said. "As you sit with them, you get the impression of how important it is to the food that they eat and even culturally, all over Asia. They are so used to it where they grew up, it's hard for them to believe that it could be a threat. Of course here, we see it as an invasive species that could come in and take over."

As it stands, no one can legally buy, sell, possess or grow the plant in Iowa without a variance from the Iowa Department of Natural Resources.

Northey and DNR Director Richard Leopold met separately with the Hmong farmers over the past couple of weeks.

"My staff are reluctant right now," said Leopold, who would have to approve the variance. "They are not supportive of a variance of any kind."

India: The investment in technology is turning the fortunes of a growing number of farmers

India is the largest producer of the world's most popular fruit, the banana, churning out over a quarter of the global production. Though the banana not native to India, several varieties, brought by travellers, have been flourishing here since as far back as the 6th century. The popularity of varieties like Nendran, Rasthali, Puvan, Robusta, Chini Champa and Red banana varies from state to state.

Delectable and nutritious, the humble banana is consumed in vast quantities all over the country. In India, the total production being 26.21 million tones from an area of 0.709 million ha. The major growing states are Tamilnadu, Maharastra, Gujarat, Andhra Pradesh, Karnataka, Madhya Pradesh, Bihar, West Bengal, Assam and Kerala.

India is endowed with diverse agro-climatic conditions which have encouraged the development and sustenance of a large number of varieties catering to the local needs. Though, more than 20 varieties have assumed the status of commercial cultivation, Dwarf Cavendish forms the mainstay of the Indian banana industry, owing to its high yield, wide market acceptability, short crop duration and high economic returns per unit area. Poovan is another cultivar grown commercially in different regions for its wider adaptability and tolerance to drought and diseases. Rasthali is significant in commercial production and its success largely depends on higher price which it fetches. Virupakshi, Monthan, Karpuravalli and Chakia are also important in some regions of the country. Nendran or Rajali are grown in Kerala and Tamil Nadu. Interestingly, Cavendish group of banana has largest area and production.

Banana, a group of crops consisting of dessert banana, cooking banana, plantain, pome, silk and others, has different production systems and technologies. Depending upon resource availability, cultivars, traditions and marketing, different production systems have been adopted, which have their own merits.

Traditionally, banana has been propagated by suckers or rhizomes but realizing the advantages of in-vitro propagation, mass multiplication through shoot tip culture has gained popularity for the production of disease-free plants. High multiplication rate unit time, with increased yields and freeness from nematode, fungal and bacterial pathogens are some of the advantages which have attracted many commercial firms in India for mass multiplication using micro propagation techniques.

A close spacing of 1.5 X 1.5 meters accommodating 4444 plants/ha has been found to be optimum for both 'Robusta' and 'Dwarf Cavendish' as against traditional spacing of 1.8 X 1.8 meters with 3086 plants/ha. This has resulted in yield of 145 tonnes/ha as against 114 tonnes/ha with normal spacing in cv. Robusta. The plant density commonly followed in India was only 15-20 thousand plants/ha with a fruit yield of 20-25 tonnes/ha. Which was much lower than that followed elsewhere.
The low plant density resulted in reduced yields and high cost of production. A population density ranging from 53,000 to 63,000 plants/ha has been shown to give higher returns under sub-tropical and mild humid conditions in Indian Banana supply and marketing are mainly governed by private sector except in some cases where cooperatives handle its marketing. Unlike in other commodities, cash marketing is most common, where money payment is done immediately after every transaction. Banana markets are specialized markets located in all big cities, and most of the marketing functions are followed.

Opportunities emerging due to growing market for organic banana requires to be harnessed. Emerging market in Middle-East, East Europe and other developing economies could be exploited. To keep its leadership of the Indian banana in production and diversity, a horizontal and vertical integration coupled with institutional support system would be essential, which shall improve the quality of life of people dependent on banana.

The investment in technology at the farm level to improve yield and quality is turning the fortunes of a growing number of farmers in the State of Gujarat, Maharashtra and Tamil Nadu in India.

• There is more interest among farmers to improve banana quality as the income is quite good.
• Productivity per plant has risen from the low levels of 15-20 kg to around 60 kg in many farms.
• Exports have risen nearly five times from Rs. 11.7 crore in 2003-04 to Rs. 55 crore in 2008-09.

Egypt: Belco expects good quality grapes this season

Belco one of Egypt's leading fresh fruit and vegetable exporters is preparing for their forthcoming grape season. Harvesting is due to begin in the second week of May with the Early Sweet variety.

Amr El Beltagy, product manager at Belco says that the quality is satisfactory and ruling out any surprises it will be better than last season.

Mr El Beltagy explains that Egypt had the warmest winter he has ever experienced, "actually I can say that we almost had no winter". This warm weather had a positive affect on quality, naturally thinning the bunches hence producing bigger sized, uniform berries. Giving great looking bunches.

Belco has broadened it's export markets in the last few years. They mainly supplied the Netherlands and the UK markets, but now also export to Germany, Italy, Austria, Belgium, Russia and the Ukraine

The company is also expanding it's product range. They have started to produce chillies, tomato, rough cucumber, Chinese cabbage and are in their second season for strawberries. This is all in addition to the main products of table grapes, spring onions, green beans, snow peas and Capsicums which are all increasing Belco's annual volume.

Monday, May 10, 2010

Difficulties for the onion sector

Producers, traders and exporters of the onion met themselves during a FEPEX committee and are worried by the situation of the sector in Spain.

The Committee consists of producers associations, exporters and traders as CEBACAT ( Catalonia), ACEP ( Aragon) PROCECAM ( Castilla-La Mancha) and the AFIC, national association.

The low production prices and the constant increase of the costs led the sector in a very difficult situation, which threatens even the harvest of onions in Spain.

In 2009, the imports of onions increased from the Holland and from France. The expeditions of Holland increased by 34 %, amounting to 857 342 tons and those of France increased by 126 %, amounting to 107 449 tons, whereas the Spanish exports decreased in 8 %, amounting to 239 690 tons.

To cope with this situation, the members of the FEPEX Committee insisted on the necessity of reaching a bigger organization of the sector by the creation of producers' organizations ( OP) which would allow a planning of campaigns.

New program to promote fruits and vegetables in schools

The United States Department of Agriculture sets up a new program which consists to promote healthier food choices by providing a variety of fresh fruits and vegetables as daily snacks.

In this objective,USDA awarded to North Carolina a $2.7 million grant that will be distributed to 106 elementary schools.

The money will also go towards incorporating nutrition education in lesson plans.

Elementary schools use the money to purchase fresh produce and distribute it to participating schools.

"What better way to reinforce the message of the importance of maintaining a healthy diet than to provide our youngest students with opportunities to put those lessons into action? We hope that the more students are exposed to fresh fruits and vegetables the more times they will choose them over less nutritious snacks," said State Superintendent June Atkinson.

This year is the seventh consecutive year that North Carolina has had the opportunity to participate in the USDA Fresh Fruit and Vegetable Program.

Netherlands, biggest exporter of fresh vegetables in the world

The Netherlands exported 4,3 billion kilos of fresh vegetable last year, that is 4 % more than in 2008. The Netherlands remains for the third consecutive year the biggest exporter of fresh vegetables in the world.

The most exported vegetables are onions (2,4 billion kilos), tomatoes (0,9 billions), paprika (0,4 billions) and cucumbers (0,4 billions).

The Netherlands also exported 2,4 billion kilos of fruits, a 2 % decrease with regard to 2008.

The most exported fruits are apples and pears (400 million kilos). The re-exportation is more and more important for the Netherlands. In 2000, 34 % of the total quantity of fruits and exported vegetables came from abroad. In 2008, this proportion amounted to 52 %. The re-exportation concerns 32 % of the export of fresh vegetables and 87 % for fruits.

Juventus of Turin on Melinda stand

The International Food Cibus exhibition will take place this week in Parma. The event wants to promote and bring to light the excellence of the Italian food sector.

Cooking and excellent farm produces will be here. The product origin guarantee was the base and the point of departure of Cibus which presents the Italian resources of the sector to the world markets.

A particular event is planned for Wednesday, May 12th in the afternoon on Melinda Stand.

Thanks to its partnership with Juventus of Turin, Melinda will receive football players, well known by the fans like Fabio Cannavaro, Captain of the Italian national team, and Claudio Marchisio.

French eye better stonefruit prices

Although consumption of stonefruit was up among French shoppers last year, ultra-low prices succeeded in hitting sales

As the start of the 2010 stonefruit campaign approaches, French stonefruit growers have made clear their desire to withstand the pressure on prices this year, Le Parisien has reported.

According to the Association of French Peach and Nectarine Producers, 82.4 per cent of French households purchased peaches or nectarines at least once during the 2009 campaign, buying an average of 1.1 kg per shop.

This represented an increase of some 2 per cent compared with the 2008 campaign, as consumers profited from attractive prices.

However, shoppers spent €2.10 per kilo in an average shop, around 14 per cent less than in 2008 and 3 per cent less than the 2005-2007 average.

Intense competition from Italian and Spanish stonefruit is considered to be the main cause of this price pressure.

Syngenta releases eight new courgettes

Seed developer provides Italian producers with new cultivars designed to boost productivity and improve market response

Seed company Syngenta has unveiled eight new varities of courgette which it says will enable producers in Italy, Europe's leading market for the vegetable, to benefit from increased disease resistance and higher yields.

According to figures published by Consorzio Servizi Ortofrutticoli, there are around 9,500ha of courgette production in Italy, with a market penetration of round 91 per cent and average consumption of 12kg per household.

For that reason, Syngenta is aiming to provide the country's growers with varieties that can be grown in open-field production while offering excellent results in terms of productivity.

"It's essential that the Italian fresh produce trade can benefit from varietal innovation, a unique resource which can guarantee an effective competitive advantage in terms of productivity, virus resistance, quality and marketability," explained Enrico Rappuoli, Syngenta Seeds-Vegetables' marketing manager for vegetables in south-west Europe.

The new cultivars include: green varieties Rhodos, CV3963 and Vitulia; streaky/grey variety Ortano; Augusto and Tirreno in the Fiorentino/Romanesco category; white cultivar Shorouq and Brice in the round segment.

According to Syngenta, each of the eight varieties offers the best possible combination of cultivation-related traits such as productivity, plant behaviour, hardiness and genetic resistance, quality characteristics and compatibility with the commercial requirements of the entire value chain.

Giuseppe Circella, product manager for squash and peppers at Syngenta Seeds-Vegetables commented: "Thanks to the introduction of these new varieties, Syngenta's open-field courgette range offers a stronger guarantee than ever of appropriate solutions for the growing profession, as well as the best possible opportunity to ensure a successful future for one of the stars of Italian horticulture."

Boost for Southern Hemisphere citrus

Citrus production from Southern Hemisphere countries is tipped to rise by 0.5 per cent according to the latest data

New data released by Freshfel Europe and the Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) shows citrus production in the Southern Hemisphere countries surveyed should reach 6.24m tonnes this year, up 0.5 per cent on 2009.

Peru (2.3 per cent), South Africa (5 per cent) and Uruguay (11.6 per cent) are all expected to record production increases, while output is set to fall in both Argentina and Australia, by 4 and 6 per cent respectively.

Production of both oranges and mandarins is expected to rise, by 5.8 and 8.8 per cent, while lemon production will drop 10.8 per cent and grapefruit levels will fall by 6.4 per cent.

Exports from all surveyed countries are also reported to be up by 4.9 per cent on last year's figures to reach 2,234,515 tonnes.

Exports of all products except grapefruit are expected to increase, with orange exports up 5.2 per cent and mandarins up 12 per cent. Lemon exports are tipped to rise 8.8 per cent while grapefruit exports are predicted to fall by 12.7 per cent to be just above 200,000 tonnes.

Friday, May 7, 2010

Lettuce growers count cost of rainfall

Producers in Spanish regions of Murcia and Almería predict average export falls of 35 per cent during weeks 17, 18 and 19
Lettuce producers in the Spanish regions of Murcia and Almería have revealed that they are likely to experience major decreases in iceberg lettuce production during the final weeks of the 2009/10 campaign as a result of rain damage to crops.
According to Murcia-based producer-exporter association Proexport, volumes collected over the weeks through to mid-May are expected to be "far below" levels recorded a year ago, at a time when demand for salads is "growing vigorously" in export markets.
In a statement, the organisation forecasted that production for export markets would fall compared with last season by an average of 34.6 per cent during weeks 17, 18 and 19 through to the completion of the campaign.
However, Proexport said that if temperatures improved in the regions and crops overcome the quality problems caused by the intense rains recorded earlier this year, there was likely to be some improvement in production.
The association's managing director, Fernando Gómez, said: "Since the start of the year, the development of Spanish iceberg lettuce exports have been jeopardised by outside factors, in the form the weather.
"This has affected the crops that producers had hoped to harvest over the coming weeks, meaning that in no sense will they repeat the export levels we had during the similar dates in the previous campaign."

Monday, May 3, 2010

Maersk Line in Asia-Europe rate increase

Shipping group announces alteration in charges on services between West Central Asia and Europe

Danish group Maersk Line has revealed that it is implementing a general rate increase on trade lines between West Central Asia and Europe, effective 17 May 2010.

According to the shipping giant, the increase will involve those services from the United Arab Emirates, India, Pakistan, Bangladesh and Sri Lanka to the north of Europe and the Mediterranean.

Covering all dry cargo and waste commodities, the increase amounts to US$200 per 20ft container and US$400 per 40ft container.

"The trading conditions for the carriers operating in these markets are still subject to unacceptable rate levels and the situation is not sustainable in the long term," the group said in a statement.

"This adjustment is necessary to continue to operate our services with the high level of reliability our customers have come to expect from Maersk Line."

Agrexco begins organic sweetcorn exports

Israel's Agrexco sees in the spring with its first shipments of organic sweetcorn

Israeli exporter Agrexco is preparing for the first exports of the season of its organic Super Sweet sweetcorn, cultivated in Kibbutz Beit Alfa, a large organic farm in the Harod Valley at the foot of the Gilboa mountain.

Agrexco product manager Tidhar Jackson said that the product would be marketed from May until the end of June.

According to Mr Jackson, the defining characteristic of Carmel's Super Sweet variety is "its unmatched high quality, which is highly appreciated by consumers all around the world. The corn retains its sweet taste long after harvest and provides an excellent side dish in spring BBQs".

The product will be exported to almost every European country, with the UK, Italy, France, Germany, the Netherlands and Scandinavian countries leading the way.

Conventional sweetcorn is cultivated in the Arava and the Beit Shean Valley, which provide optimal conditions for high quality and a constant supply. Exports will commence a week before the first organic shipments, according to Agrexco.

Carrefour signs with Future Group

After years of searching, it has been reported the French retailer Carrefour has finally found its Indian partner

Europe's largest retailer, the French chain Carrefour has formed an alliance with India's Future Group, Livemint.com has reported.

The report cited two anonymous sources that claim to have inside knowledge of the deal and, although they said the agreement was signed three months ago, no official announcement has been made.

According to the report, Future Group will open 150-300 Carrefour franchise stores in the country over the next five years.

Indian laws only permit foreign companies to operate there through franchise deals with local firms, and Carrefour had been looking for a partner in the country for several years.

The Bharti Group formed a partnership with US giant Wal-Mart, and the UK's Tesco announced a deal with India's Tata Group last month.

The story's sources said Future Group was examining which Big Bazaar hypermarket locations could be converted into Carrefour stores, and that the company will use space earmarked for Big Bazaar outlets to open Carrefour stores instead.

One of the sources said while Big Bazaar will continue to operate in its current mass-market format, the Carrefour stores will cater to more high-end consumers in the country.

Panama exports square watermelons

The Panama Fruit Producer Co found a growth niche in the export of fruits: the square watermelons.

These watermelons are not the result of a genetic experience, the explanation is much easier : we grow watermelons in one limp in the shape of cube which act as mould, so the watermelon is forced to develop "in the square ".

It's a Japanese farmer which produced the first square watermelons which are sold for several years in Japan.

The watermelon will be on sale at the price of 75$ each, but producers hope to make the prices lower.

The Panama Fruit Producer Co has just made its first delivery in New York, and estimates that he can begin this year the sending to Netherlands and Germany.

Genetically modified papaya approved by Japan

United States has won approval to market a genetically modified food crop to Japan.

The genetically modified papaya, already sold in the United States, is the result of research made by scientists of the US Department of Agriculture and Agricultural Research Service in Hilo, Hawaii.

The genetically modified variety is resistant to the papaya virus (PRSV), the most devastating disease for the crop. Dennis Gonsalves, research center director and project leader, is working with scientists and growers from Bangladesh, Africa, Jamaica, Venezuela, and Brazil to develop disease-resistance varieties that will grow in their regions.

Papaya, which is the second largest fruit crop in Hawaii, is grown commercially for the US and Japan. The Hawaiian papaya industry is exporting 25% to 30% of its product to Japan.

Pakistan: New mango export date

The Federal Ministry of Commerce has fixed the start-off date for export of mangoes as May 15 instead of May 20.

Pakistan Horticulture Development and Export Company (PHDEC) sources said here on Thursday that on the desire of Fruits & Vegetables Exporters Association, PHDEC had pursued for early start-off date for mango exports. Reason is to save wastage of fruit due to early ripening of mango this season, the sources added.

The new start-off date has been notified vide a notification No. 1(14)/2005-E-I/IV under Serial No. 4 (ii) of Schedule-II of the Export Policy Order 2009.

Canada: Farmers fear frost impact

Nova Scotia fruit farmers have suffered potentially the worst crop damage in almost 25 years.

Unseasonably warm weather earlier this spring may have been a bonus to many Nova Scotians, but it has turned into a curse for apple and cherry growers.

A heavy frost April 14 and 15 has taken a large bite out of a crop that was looking to be, if not a record, at least comparable to other high-volume years.

And farmers are keeping their fingers crossed that Jack Frost doesn't strike again.

"It definitely will have an impact on the crop," Bill Craig, a tree fruit specialist with AgraPoint, an agricultural consultancy group with offices in Kentville and Truro, said Wednesday in an interview.

"We had a good potential, but we don't have potential for a full crop right now.

"We won't really know the full extent of the damage until the trees bloom and fruit begin to set. It will impact some growers more than others."

Some apple growers, especially those in low-lying areas such as Grafton and Woodville, Kings County, have lost as much as 75 per cent of their apple buds to frost damage.

"The last time I've seen this much damage was back in 1986," said Craig.

The crop dropped that year to 1.8 million bushels from about 2.5 million.

He said the most damage is showing up in early variety apples, such as Gravenstein, McIntosh and Cortland, which combined represent more than 50 per cent of the entire apple crop, valued at $13 million annually at the farm gate.

Most of the later variety apples, such as Honeycrisp, Gala, Jonagold and Ambrosia, escaped much of the damage.

"Most of the later varieties are fine," said Craig. "There may be traces of damage, but not a real serious problem."

The full extent of the damage will not be known until the bloom sets, which may be in a week to 10 days, depending on the weather.

"Time will tell," Craig said.

Warm weather early in April caused the trees to begin budding about three weeks ahead of schedule. But then temperatures dropped to minus 5 C in some areas of the Annapolis Valley early on the evening of April 14 and lasted throughout the night.

"It was the duration of the cooling more than the low temperatures that caused the problem," said Craig.

"Minus 5 in the second week of April is not usually a concern because trees aren't even growing. They ran into damage because they had an early start."

Once the trees start growing, they lose their hardiness. The more they grow the less hardy they are. Frost kills the pistols and the ovaries, the reproductive part, of the delicate flower.

Most of the damage was confined to apples and sweet cherries. There was little damage in pears, plums and peaches.

Farmers usually don't feel out of frost danger until the last full moon in May.

Recent cool temperatures have slowed growth down, but the apple bloom is still ahead by about two weeks, meaning apple blossoms could be out by the middle of May.

Craig said the trees were showing a good bloom this year that could mitigate the damage to some extent, depending on the rest of the season.

"We will have to wait and see how the season shakes out," said Dela Erith, executive director of the Nova Scotia Fruit Growers' Association. "There is still chance of another frost.

"It could be very bad if the later variety apples get hit."

Last year's crop was a little larger than in recent years at 2.4 million bushels.

Saturday, May 1, 2010

Chiquita slips to first-quarter loss

Group hit by weaker European banana demand and pricing following harsh winter weather and ongoing tough economic conditions

Fresh produce multinational Chiquita has revealed today that it made a loss from continuing operations of US$4m (€3m), or US$0.09 per diluted share, during the first quarter (Q1) of the year, down from the US$22m (€16.6m) profit recorded in the same period of 2009.

Net sales fell 4 per cent year-on-year to US$808m (€610m), with the European market proving a difficult one for the group through the opening three months of the year.

"Our North American salad and banana businesses performed well in the first quarter," said Fernando Aguirre, chairman and chief executive officer of Chiquita. "However, as previously announced, European banana demand and pricing were negatively impacted by the harshest winter weather in 30 years and depressed economic conditions which have affected commerce across Europe.

"Revitalizing our European profitability in 2010 is our most important priority," Mr Aguirre continued. "Weeks ago, we began implementing a five point plan to improve pricing, execute significant cost improvements throughout our supply chain, permanently capture the EU tariff reductions, reduce our selling and administrative costs and increase distribution, which taken together will enable us to overcome these early headwinds."

In the banana segment, Chiquita's sales dropped 2 per cent year-on-year to US$477m (€360m) on European performance, with comparable operating income down to US$4m (€3m) from US$40m (€30m) in 2009.

Net sales fell 8 per cent to US$259m (€195.6m) in salads and healthy snacks, Chiquita said, due to lower volumes in the retail value-added salads category. Comparable operating income improved to US$20m (€15.1m) from US$13m (€9.8m) in 2009, even as the company invested more in consumer marketing and experienced greater retailer activity in private label products.

Looking ahead, Mr Aguirre said that Chiquita remained focused on executing its long-term plans for profitability, and could put aside what he described as "quarterly volatility".

"We believe that the resilience of our diversified portfolio of businesses in North America and Europe will lead us to another full year of strong profitability and we still expect to achieve our full-year target of US$110m-US$120m (€83m-€90m) of comparable income," he noted.

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.

US: Organic food sales grow 5 percent, top $24 billion in 2009

Even in a recession, organic products are in demand. U.S. sales of organic products increased 5.3 percent to top $26.6 billion during 2009, according to the Organic Trade Association's (OTA) "2010 Organic Industry Survey."

According to the OTA report released April 22, $24.8 billion represented organic food while the remaining $1.8 billion were sales of organic nonfoods.

"While total U.S. food sales grew by only 1.6 percent in 2009, organic food sales grew by 5.1 percent. Meanwhile, organic nonfood sales grew by 9.1 percent, as opposed to total nonfood sales, which had a 1 percent negative sales growth rate. These findings are indicative that even in tough times, consumers understand the benefits that organic products offer and will make other cuts before they give up products they value," said Christine Bushway, OTA's executive director.

Experiencing the most growth, organic fruits and vegetables, which represent 38 percent of total organic food sales, reached nearly $9.5 billion in sales in 2009, up 11.4 percent from 2008 sales. Most notable, organic fruits and vegetables now represent 11.4 percent of all U.S. fruit and vegetable sales.

Since the approval of the final National Organic Program rule published in 2000, sales of organic fruits and vegetables have grown from $2.55 billion, representing approximately 3 percent of all fruit and vegetable sales, to the nearly $9.5 billion level and 11.4 percent penetration level. Meanwhile, during that time, organic food sales have grown from $6.1 billion to $24.8 billion in 2009, jumping from 1.2 percent of all U.S. food sales to 3.7 percent.

The mass-market channel had the lion's share of organic food sales in 2009, with 54 percent of organic food sold through mainstream grocers, club stores and retailers. Natural retailers were next, with 38 percent of total organic food sales. Although still representing a small percentage of sales, farmers' markets, co-ops and CSA (community-supported agriculture) operations gained a lot of interest as consumers increasingly look for locally and regionally produced organic foods.

In the organic nonfood sector, organic supplements led, with $634 million in sales, representing 35 percent of total organic nonfood sales. Organic supplement sales were 12 percent higher than in 2008. Organic fiber (linen and clothing) totaled $521 million in sales, up 10.4 per

South Australian citrus favoured by no fruit flies

Citrus growers in South Australia's Riverland will be at an export advantage this season.

Their fruit fly free status means South Australian growers can continue to export fruit to the United States.

Fruit fly outbreaks in Mildura and Sunraysia have meant growers will not able to send fruit to the US until November.

Executive officer of the South Australian Citrus Board, Andrew Green says the fruit fly free status can also save growers money.

"While Sunraysia and the Riverina can't access a number of markets, or if they do they have to cold-treat, we can actually send there without the additional costs."

Mr Green says Riverland growers could be saving about $150 per packed tonne.

UK: Asparagus crop marks approach of summer

The first signs of summer are appearing on Yorkshire's farms as harvesting work begins on the first batches of asparagus.

Traditionally the first fresh vegetable of the UK season, British asparagus has enjoyed a particular surge in demand this year following the disruption to imports in the wake of the Icelandic volcanic eruption.

Currently about 40 per cent of the food we eat is imported – a third of which could be produced in the UK. Last year the total value of the UK asparagus crop was said to be £36m.

Low Moor Farm at Sand Hutton near York is now bringing in the hand-cut asparagus from the 12 acres of the crop it grows.

Its owner Ronda Morritt said: "As asparagus is a naturally-grown crop dependant on climate, the time at which it makes an appearance varies slightly each year.

"It's often quoted that the season starts on St George's Day, but for us it has fallen a few days later this year."

The harvest time comes after research from the Regional Food Group for Yorkshire and Humber showed asparagus grown in Yorkshire was better for you. Scientists at the Stockbridge Technology Centre (STC) revealed Yorkshire asparagus has more anti-oxidant than imported varieties.

Julian Davies at the STC said the vegetable was a rich source of vitamins A, C and K, as well as folic acid, iron and other natural anti-oxidant.

Jonathan Knight, chief executive of the Regional Food Group, said: "We hope our findings encourage people to buy Yorkshire produce, not only to boost the UK's economy, but because of its fantastic taste and the bonus of its healthy properties.

"Asparagus is an important horticultural crop for many local growers and should be seen as a seasonal delicacy.

"No British asparagus is exported, and consumers should feel privileged that they get Britain's entire harvest to themselves."

ACP banana producers feel “betrayed” by EU

Representatives of the African, Caribbean and Pacific (ACP) countries were lobbying for greater assistance for their banana exports to Europe to compensate for the EU's improving trade relations with Latin America at the European Parliament and Commission in Brussels, on 29 April.

Cameroon's Trade Minister Luc Magloire Mbarga Atangana, representing the ACP, said he would challenge MEPs and the Commission to go further than the €190 million package proposed by the European Commission, on 17 March, to help banana producing ACP countries adapt to the new trade regime since it resolved its trade dispute with Latin America and the United States, resulting in cuts to import tariffs on Latin American bananas. The minister argued that even with the 'banana accompanying measures', ACP countries had been "betrayed" by the EU.

"We don't want indefinite support," he said. "We are asking for accompanying measures to be able to participate in a globalised world, we are asking to be partners," he added. "Isn't Europe actually turning its back on our countries?" he challenged. "Isn't there a kind of falling out of love – I don't want to talk about divorce – but a kind of falling out of love with Africa?" he asked.

The minister said he felt that globalisation had been vaunted as a great hope for small or developing nations, but had only benefitted the major new players. He said the attitude of large trading powers, such as the EU or the US, was tokenistic. "They say we are going to accept several at the table, the emerging ones, China, India, Brazil, and then consider everyone is represented," he said.

The Cameroonian minister called for development considerations to be taken into account more. He called the banana industry the "social cement" of ACP countries, many of which are struggling to emerge from economic and political turmoil, providing sources of employment, which feed into social stability. The Commissioner for Development, Andris Piebalgs, recently said the EU was indeed determined to support these countries' development through trade. "The Commission has committed itself to fully stand by ACP countries to foster their efficient integration into the world economy while respecting international trade rules," Piebalgs said.

At the 19th Joint ACP-EU Parliamentary Assembly, held in Tenerife (Spain), parliamentarians asked the European Commission to increase aid to ACP and EU banana producers in order to help them adapt to the new regime and receive compensation for financial losses they might face because of new tariff rules laid down by the EU-Latin America 'banana agreement'. The one-off programme will apply to the ten main ACP banana exporting countries and aims to help make each nation's banana market more competitive, diversify its economy outside of bananas or assist with the potential social or environmental impact of the new trade environment.