IRO China 2014 Scotland Oliver Thomson

Introduction Oliver Thomson: Managing Director of Trade Solutions (Scotland) Ltd We purchase fruit from Scotland, England and import from other Countries We manufacture IQF, Purees, Juice and Flavours as frozen or aseptic products We supply manufacturers in Scotland, England and Europe Primary focus is on Raspberry, Strawberry, Blackcurrant, and Blackberry We also import other products: Apple, Mango, Lime and Lemon juice etc

Growing Area The main growing areas are: Within a 20 km radius of Dundee Angus, Perth & Kinross and Fife Trade Solutions is located in the centre Of the growing region

Raspberry Production In Scotland The majority of Raspberries grown in Scotland are sold fresh to retail These are grown in Poly tunnels , require irrigation and often grown in Pots or Substrate

Large investment required of US$50,000 per Hectare or more Season without Poly Tunnels is around 4-5 weeks Poly Tunnels provide a 4 month season from Late May to Late September Take advantage of high prices early and late season US$12,800 per Tonne early and late season and US$9,600 per Tonne in the Main/middle part of the season

Large investment required Labour costs and systems costs e.g. traceability, Leaf, BRC, Field to fork are increasing year on year and sale price is not increasing at the same rate Yield is around 10-20Tonnes per Hectare Depending on the growing system and variety

Other Risks Associated With Poly Tunnels Wind Damage Every Year there is a small amount of damage to a few Hectares in Scotland 2 Years ago there was storm in May which damaged around 150 Hectares of poly tunnels at a cost of between USD$30,000 and USD$115,000 per Hectare depending on the growing system and fruit lost

Raspberry Varieties grown in Scotland The James Hutton Institute is the premier crop research institute in Scotland and highly regarded throughout the United Kingdom and Europe Funded by Industry (including Trade Solutions Scotland)Ltd and the Scottish Government Raspberry varieties are named after “Glens” (Scottish term for a valley /upland area) i.e Glen Ample Raspberries Blackcurrant varieties are named after “Bens” (Scottish name for a mountain) i.e Ben Tirran Blackcurrants Blackberries are named after “Lochs” (Scottish term for a Lake) i.e Loch Ness Blackberries

Varieties Older varieties such as Glen Clova and Glen Prosen No longer grown in commercial quantities Glen Ample, Glen Fyne, Glen Ericht and Glen Doll are the most common varieties in Scotland There is also some Tulameen, Octavia and Driscolls varieties such as Maravilla grown Glen Clova Glen Ample Glen Fyne

Tulameen Glen Ericht

Raspberries For Processing In Scotland A large % of Raspberries for Processing are from the retail fresh fruit out grades as this must be harvested when “pink” in order to achieve shelf life Over ripe, damaged etc fruit is used for processing There is only around 81 Hectares grown without poly tunnels for processing with a yield of between 500 and 600 Tonnes Raspberries grown for processing are mostly machine harvested with some hand picked for IQF

Machine Harvesting Raspberries Somerset Raspberry Harvester in Scotland

Machine Harvesting Raspberries In Scotland Littau Raspberry Harvester Efficient and in terms of speed and quality Pattenden Osprey Raspberry Harvester The most gentle of the harvesters used in Scotland Uses moving trays instead of Littau and Somerset “Fish Plates” which causes less damage to young canes

Phytophthora Is a major issue for Raspberries in Scotland

Raspberries Grown in Scotland and England Area Volume Value 2008 1,571 Ha 14,800 t £6128/t 2013 1,616 Ha 15,100 t £5986/t Data for Scotland and England We expect 2014 season to be around 15,000 – 15,500 Tonnes

Scotland and England Production

Production areas

Value of Scottish and English Raspberries

Processed Raspberry Volumes Processing grade Raspberries from Scotland are used to produce IQF, Puree, Flavours and Juice 2014 we expect around 800Tonnes of Raspberries for processing with an average purchase price of £1.90Kg The majority of frozen and aseptic Raspberries used in manufacturing are imported 2013 Figures Tonnes Value £000s £/t Poland 4048t £7207 £1780/t Netherlands 2598t £3448 £1327/t Serbia 1342t £3022 £2252/t Belgium 1784t £2,915 £1634/t Chile 542t £1198 £2210/t Germany 1285t £2670 £2078/t China 193t £202 £1047/t Bulgaria 110t £226 £2055/t Other 242t £681 £2814/t TOTAL 12,144t £21,569 £1776/t

Scottish Exports Scotland is better at exporting Whisky In the 1990’s Scotland Exported around 2500 Tonnes of frozen Raspberries and produced an additional 3000 Tonnes for the domestic market Now the total volume of Raspberries is similar but it is sold fresh to retail Tonnes of frozen for export 2011 230 Tonnes 2012 240 Tonnes 2013 210 Tonnes The majority of Scottish Raspberries are consumed within Scotland and England Most of the Raspberries are produced for fresh and demand is increasing due to healthy eating adverts and campaigns

Marketing Scotland is renowned for good quality produce Eating Locally sourced food is encouraged Eat healthy and fresh foods is encouraged Eat 5 a day of fruit and veg Government funded marketing is working and sales of Scottish products are increasing

Scottish Processed Fruit Products Marketing We are seeing an increase in demand for products with a marketing claim i.e Country of origin: Scottish Raspberries Single Farm: Muirton Farm Raspberries Single Variety: Glen Ample Raspberries Due to the growers in Scotland being large scale we can offer single Variety and single farm products to manufacturers

Summary Scotland Produces Raspberries primarily for the fresh market Processing grade fruit is machine harvested or out grades from the fresh market Scotland is a nett importer of frozen Raspberries Raspberries produced for the fresh market require a large investment and increased risk Phytophthora is a major problem, however it is slowed down by poly tunnels and pot growing systems Marketing by both government and industry is key to maintaining and increasing demand Origin, Single Variety and Single Farm products have become more popular but price is still No 1 Priority for most manufacturers Demand is starting to out strip supply of frozen Scottish Raspberries for the first time in 15 Years

Thank you very much for your time and hospitality