1. Cicils / IPTIC Conference Antalya/Turkey 17. – 19. April 2009 Regional Statistics Europe Schlüter & Maack Hamburg International Merchants since 1820 www.schlueter-maack.de Presented by Michael Kemperdick

2. Schlüter & Maack - Hamburg General Situation EU: All major European Countries are EU members. The Euro: Already the predominant currency for Inter- European-Trade. Slovakia joined on 01.01.2009. Due to the finanicial crises several newer member states would love to join Eurozone rather sooner than later. Ukraine: in negotiation about closer trade cooperation with EU and possible free trade zone.

3. Europe: A Pulse Importer Total Pulses Imports about 900.000 MT p.a. thereof abt. 600.000 MT beans, chickpeas and lentils. Import of Lentils mainly from Canada, China and Turkey. Imports of Beans now mainly from China, North-America, Argentine and Ethiopia. Peas mainly grown in Europe itself but increasing imports from North-America.

4. Schlüter & Maack - Hamburg EU Policy on Pulses No special EU Policy on Pulses: Consequently no special importance of pulse production in European countries as well. Focus of EU-agri-policy is still on bio-fuel. European farmers have clear preference for grain-crops and rapeseed. No promotion of Pulse-Production by Government Agencies. Consumption of Pulses comparable in Western and Eastern Europe with a clearly per capita consumption in Southern Europe.

5. EU Overview Farmers in Europe are generally not able to compete in the world market. Farmers are voters that know well how to pronounce their ideas. Farmers have a clear behaviourist tendency in their choice of what crops to grow. Schlüter & Maack - Hamburg

6. France Pulse Production and Exports Production of mainly domestic bean varities abt. 3.500 MT p.a. no. Exports. Some lentils are grown domestically, abt 4.000 MT p.a. Production of Peas still sizable at around 600.000 MT p.a. but decreasing rapidly. About 40 % exported to the world market.

7. France – Area sown to Peas Schlüter & Maack - Hamburg

8. UK Pea Production Green Peas (65 % of all Peas) and Marrowfat Peas Traditionally grown in the UK and exported to the rest of Europe. Broad Beans grown for export. General Trend to grow less pulses in recent years. Increasing grain production. Schlüter & Maack - Hamburg

9. UK – Area sown to Peas Schlüter & Maack - Hamburg

10. Czech Republic Pulse Production and Exports Only Peas are produced in larger tonnages, mainly for feeding purposes. Pea Exports mainly to Germany and Poland for feeding. Pea Production has decreased in recent years significantly due to reduction in number of cattle and more attractive prices of Rapeseed, wheat and barley. Pea Production in 2008 at 40.000 MT down from 80.000 MT in 2001 and likely as well 40.000 MT in 2009. Production of Pulses not likely to increase as long as wheat is attractive enough.

11. Czech Rep. – Area sown to edible Pulses Schlüter & Maack - Hamburg

12. Ukraine Pulse Production and Exports Sizable Production of Peas - abt. 500.000 MT estimated for 2009. However crop 2007 had the same potential and ended up much smaller due to persitent drought. Pea quality mainly feeding grade. Farmers / Investors looking for new opportunities and might consider other pulse crops than just peas. Agri Industry has been hitten hard by the financial crisis which is certainly slowing potential growth for now.

13. Ukraine – Area sown Peas Schlüter & Maack - Hamburg

14. EU Agro-Policy I Try to ease the pain caused by GATT / WTO. Protect EU farmers by other means than export subsidies and prohibitive duties. Avoid high costs related to such policy. Schlüter & Maack - Hamburg

15. EU Agro-Policy II Consumer Saftey as the Guideline. Allows to set up regulations that help to decrease imports and keep the EU market as closed as possible. Basically no GMO-Crops allowed to grow and market in Europe. Schlüter & Maack - Hamburg

16. Threats to the Pulse Trade EU Policy on GMO Zero Tolerance Pesticide Residues Fumigation Residues Contaminantes Mikrotoxines Tracability Schlüter & Maack - Hamburg

17. Outlook I EU Policy which favoures wheat and energy plants will reduce potential of pulse production in all countries. Beans and Lentils even at increased prices are still comparatively cheap in the world market making imports more attractive than domestic production. European farmers have no expertise in growing lentils and beans.

18. Schlüter & Maack - Hamburg Outlook II Increasing competition in exports markets might force european farmers to look out for alternatives to grain crops. Pulses good be grown well in most parts of Europe and would find demand within Europe. So far less than 2 % of the total Area in the EU is sown to pluse crops and less than 1 % of total crop production are pulses.

19. Schlüter & Maack - Hamburg Outlook III – Alternative Scenario Change in EU Policy. Focus on more pulses possible. For example more use of pulses for EU-Food-Aid like years ago. Increase in European Pulse Production if imports get more difficult by possible new regulations. This is a scenario only !!!

20. Schlüter & Maack - Hamburg Current Growing conditions Rain needed in the Central Parts of Europe. April too dry so far. More winter kill to grains and rapeseed as in 2008. Production focus in 2009 still cleary on wheat and Rapeseed. Yields expected to by in line or slightly below the good yields received in 2008.

21. Schlüter & Maack - Hamburg Schlüter & Maack Hamburg International Merchants since 1820 Beans – Lentils – Peas Bakery seeds (SFK,PK,Sesame,Poppy, Lin) - Mustard Seeds Treenuts Cocoa – White Sugar pulses@schlueter-maack.de