1. Enhancing Export of Fruit and Vegetables to EU markets Jose-Maria Garcia-Alvarez-Coque Polythecnic University, Valencia

2. The EU market for fruit and vegetables  One of the world largest markets: 10.5 per cent of the world consumption  29 million tons of fruits  41 million tons of vegetables  Moderate import growth: Total imports growing at 1.5 per cent per year. Significant changes in product composition. Though protected, still a large importer from non-EU countries.

3. Why would Syria be interested in the EU market?  Syria is a horticultural exporter. Shares in total Syrian agricultural export value: Fresh vegetables: 28 % Fresh fruit:15 % Processed F&V3.5 %  The import EU market is still growing for some products of export interest for Syria. Potatoes, onion, garlic, table grapes, apples, cherries, apricots, tomatoes.

4.  The Association Agreement will open: New market opportunities. Stable framework for trade.  Syrian exports are over-specialized on AFTA markets Except for potatoes and garlic, the EU destination accounts for < 1 % of total Syrian export value.

5. Structure of Syrian exports 1998-2000 (%) Region/ Product AFTA (%) EUCentral Europe Rest of World Total exports (Metric Tons) Tomatoes84.720.060.0415.17155,428 Potatoes36.2561.990.031.7331,415 Apples99.590.010.000.4019,125 Pears99.940.010.000.0510,165 Cherries63.950.040.0036.110,392 Oranges97.330.010.052.6116,093 Mandarins97.570.030.162.2513.088 Grapes99.440.040.000.5126.585 Source: Customs Department, NAPC.

6. Factors of success for fruit and vegetable exports: Market access in the EU Adaptation to EU distribution and consumer trends Comparative advantage for fruit and Vegetable production

7. Farm-price comparisons Monthly price comparisons were performed between Syria and 5 EU countries for 1998-2000. Product% Apple13 Pears6 Oranges22 Mandarins42 Lemons21 Grapes87 Apricots88 Cherries91 Cucumbers90 Potatoes37 Onions67 W.Melons100 Percentage of observations where Syrian prices undercut farm-prices in EU countries: Why low prices?

8. Factors of success for fruit and vegetable exports: Market access in the EU Adaptation to EU distribution and consumer trends Comparative advantage for fruit and Vegetable production

9. The EU market-access issue  For most fruits and vegetables extra-EU sources sharply reduced in some parts of the year: import substitution. On what depends the benefits of the Association Agreement? Seasonal pattern of the entry price system. Extent of quantitative limits and calendars. Management of non-tariff barriers. Adaptation of Syrian harvesting seasons to EU concessions.

10. The agricultural protocols. The tomato case CountryCalendarTariff Quota (MT) Jordan1 December to 31 March- Morocco1 October to 31 March150,676 5,000 in October Tunisia15 November to 30 April- Egypt1 November to 31 March- Lebanon5,000  Percentage of Syrian tomato harvest: From December to March:25 % From October to April:48 %

11. The entry price. Seasonal variations PeriodEntry price (Euro/MT) Entry price (Morocco) (Euro/MT) % of Syrian harvest April11266 May7262 June to September52650 1 October to 20 December 62646122 21 – 31 December7264612 1 January to 31 March 84646118

12. Factors of success for fruit and vegetable exports: Market access in the EU Adaptation to EU distribution and consumer trends Comparative advantage for fruit and Vegetable production

13. What EU consumers demand.  Products are not classified by botanic varieties…  but by emerging consumer goals:  Convenience: take-away, eating in front of TV, meals solutions.  Snacking: “eating on the move”  Health and environment.  Contradictory consumer behavior:  Quick to prepare but also healthy  Authentic, but also of convenience  Cheap but available the whole year  Unusual but with affordable price  Homogeneous in appearance, but ecological.

14. The modern distribution.  The first European group (Carrefour) has a turnover of 50 billion € (Wal- Mart more than doubles this figure). The “Top 5”

15. Implications for horticultural traders  Number of suppliers is reducing, with greater volumes.  Relations based on trust and reputation.  Specialized working teams per customer.  Quality becomes not a factor of differentiation, but a precondition.  Supply chains enforce internal relations and develop wide incentives for assuring timely production and delivery. They are based on shared information and reciprocal scheduling, product quality assurances and transaction volume commitments.

16. The traditional marketing Farmers Local commissioners Packing houses Exporters Foreign market Wholesale market Commissioners

17. The public role in breaking the vicious circle Coordination Quality policy Training Cooperation Supply Chains Market incentives Stable framework Foreign Investment