John Ogonowski Latin America Farmer-to-Farmer Program
USAID Executive Summary
FIU The purpose of this research was to determine the market potential for cape gooseberries, strawberries and loquat in the United States and find out if their consumption, demand and access are high enough to encourage the importation of these fruits by several Central American companies. In order to achieve this, we have conducted exploratory research through the utilization of secondary data and in-depth interview methods. After analyzing the data found on aspects such as market demand, exportation, importation, quality standards and regulations, distribution systems and competition, we have concluded the loquat and Cape gooseberry have growth potential while the strawberry’s market is saturated. The United States is the largest producer of strawberries and only about 10% are imported. Of these imported strawberries 99% come from Mexico and the rest from countries such as Chile, New Zealand, Poland and Peru. The demand for strawberries is on constant growth. However, is mostly fulfilled by the country’s own production. Thus, importing the produce is not profitable as the percentage of consumption from imports is less than 1%. At this moment, there is no market for Loquat in the U.S. The fruit is perceived as exotic and is not very common in the American cuisine. Production costs are very high which consequently results in having low productions. Most of the Loquat imports come from Chile, yet, they only import one kind of loquat as it is a delicate plant to grow due to multiple pest risks. Hawaii is beginning to grow the fruit and it’s becoming more popular as they are beginning to use it in their cuisine.
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At this point there is no sales promotion for the fruit; it is most common in the Hispanic market. The Hispanic market is growing in the U.S. every day and we believe that the loquat has a strong potential of becoming a high consumption demand with the right sales promotion. Cape gooseberry has a very small market in the United States as well, mostly Hispanic and specially Mexicans. However, this market seems to be growing as the fruit is becoming more popular. We believe that this could be a good product to import as it is not yet well known and with a good strategy it can be very successful. The US imports most of their produce, so it will be a good idea to start importing and introduce the gooseberry to the American population.
Andrea Coronado Gina Eckardt Elizabeth Fonseca
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USAID Table of Contents
FIU Introduction......... Error! Bookmark not defined. Product Description: Cape Gooseberry.............. 4 Statistical Data .......................................... 5 Market Characteristics .............................. 7 Distribution Channels ................................ 9 Market Access......................................... 12 Prices ...................................................... 15 Sales Promotion...................................... 15 Product Description: Strawberry....................... 16 Statistical Data ........................................ 19 Market Characteristics ............................ 26 Distribution Channels ............................. 29 Market Access......................................... 33 Prices ...................................................... 36
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Sales Promotion ..................................... 37 Product Description: Loquat............................. 38 Statistical Data ........................................ 39 Market Characteristics ............................ 44 Distribution Channels............................. 47 Market Access ........................................ 51 Prices...................................................... 54 Sales Promotion ..................................... 55 Importers Lists & Distribution Networks ........... 56 Upcoming Commercial Events........................ 57 Conclusions and Recommendations................ 59 References ………………………… ……………61
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Introduction
Introduction
Program Rationale The John Ogonowski Farmer-to-Farmer Program, funded by the United States Agency for International Development, provides voluntary technical assistance to farmers, farm groups, and agribusinesses in developing and transitional countries to promote sustainable improvements in food processing, production, and marketing. The program relies on the expertise of volunteers from U.S. farms, land grant universities, cooperatives, private agribusinesses, and nonprofit farm organizations to respond to the local needs of host-country farmers and organizations. To date, approximately one million farmer families (representing about five million people) have been direct beneficiaries of the FTF Program. Volunteers have provided direct hands-on training to over 80,000 people. Winrock International and Florida International University’s College of Business Administration have combined their resources and knowledge to implement the John Ogonowski Farmer-to-Farmer Program in Latin America, from 2003-2008. The MAR 4613 course was created to add value to the Farmer-to-Farmer Program and prevent scarce volunteer resources from being diverted to requests for assistance, which are best, completed in the United States. The resulting freed up resources allow the program to fulfill requests with volunteers where an in country expert is a necessity. Of added value, hosts receive this additional US-based volunteer service at no cost to the FTF program.
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Introduction
Research Objectives
Research Method
The objective of this research is to analyze the US market potential of a variety of commodities. Our goal is to provide information on a variety of commodities, which can then be applied by our in-country partners to their business strategies. The primary beneficiaries of these reports are small and medium-sized farming cooperative groups which do not have the capability or the resources to conduct these studies on their own.
Given that the research objectives include getting background information of the potential market of the commodities included in the report, the research was conducted using an explorative design. Two main methods were employed: secondary data research and personal interviews. In some instances focus groups with consumers were conducted.
It is of critical importance that while drawing conclusions to satisfy the research objective, a thorough analysis is carried out. In order to do so, some of the questions which must be analyzed are: 1. What is the demand of the product in question? 2. Who are the buyers and consumers of the product? 3. What are the quality standards and packaging requirements? 4. What is the distribution system for the product? 5. Who are the competitors? 6. What government regulations apply to the import of this product? If it is a new product for the market, additional questions must be asked: 1. Who are the potential buyers of this product? 2. What are the potential distribution channels? 3. What are the additional important issues which must be investigated before attempting to export the product? 4. Are there any regulations which might inhibit this product from being sold in the US market? Summer 2007
The secondary research was conducted by searching and interpreting existing information relevant from governmental and private electronic sources. When specific information about a commodity was not found secondary research was guided by similar commodities relevant to the information needed. In order to complement the secondary research, personal interviews with experts were conducted. The interviewees were either academic or commercial experts in the production and commercialization of the commodities in question. In some cases, the researchers felt the need to complement this information direct input from the consumers; in those cases focus groups session were conducted. The sources of the information are cited through out the content of the report. Contact information of the experts is provided. At the end of the report conclusions and recommendations for future action are suggested.
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Cape gooseberry
Cape gooseberry Summer 2007
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Cape gooseberry
Product Description
The Cape gooseberry is small, yellow orange fruit similar in shape to a cherry tomato. The fruit is loosely wrapped in a papery husk or “cape” which serves as a natural wrapper for storing the fruit. This berry is globosely, 1/2 to 3/4 in (1.252cm) wide, with glossy, smooth, and juicy pulp containing small yellowish seeds. When ripe the fruit tends to be sweet, the husk is bitter and inedible. The peeled fruit is rich in Iron, Phosphorus, and Vitamin A and C. They are also known as ground cherries or golden berry. It is originally cultivated in the Andes in countries like Peru, Chile, and Colombia. The current major producers are Colombia and South Africa. 1
Nutritional Facts Cape Gooseberries nutrition facts in 100gr of edible fruit: Moisture
78.9 g
Protein
0.054 g
Fat
0.16 g
Fiber
4.9 g
Ash
1.01 g
Calcium
8.0 mg
Phosphorus
55.3 mg
Iron
1.23 mg
Carotene
1.613 mg
Thiamine
0.101 mg
Riboflavin
0.032 mg
Niacin
1.73 mg
Ascorbic Acid 43.0 mg
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Cape gooseberry
Statistical Data
U.S. Production Data Cape gooseberry is produced in five departments in Colombia (Antioquia, Boyaca, Caldas, Cundinamarca and Tolima), although Cundinamarca (the Capital District department) hosts 80% of the country’s total cultivated area. About 12,000 tons are produced each year from a total area of 800 hectares. The majority of production is exported; only 20% of production is intended For local consumption; most of it is exported to Germany, Holland, Israel, Japan, and France. In June 2003, the USA’s APHIS (USDA’s Animal and Plant Health Inspection Service) approved the import of fresh cape gooseberries from Colombia to the United States. 1 .
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Cape gooseberry
Statistics of Foreign Trade: Exportations and Importations Native to Brazil, but has spread to highland areas of Chile and Peru. Cape gooseberries have naturalized in tropical regions around the world (including Hawaii). 1 Cape gooseberry is also known in the international market as uchuva, uvilla and physalis. Other producers are Ecuador, Mexico, Costa Rica and Zimbabwe; however, Colombia stands out as one of the largest producers, consumers and exporters. Cape gooseberry has become very popular mainly because how easily it can be consumed fresh, once the husk covering is removed. This husk covering not only protects the fruit, but it also adds an aesthetic touch to the fruit. Even though it has been exported for about a decade now, Cape gooseberry is relatively unknown in importing markets: it is still an exotic fruit, with a small, but growing market. 1 .
Main Origin of Importations Golden berries have been imported into the United States from New Zealand or Australia. They also import them from Colombia, which is their land of origin. 1 Colombia is one of the main producers, followed by South Africa. 2
Demand Tendencies Cape gooseberry was naturalized in Hawaii from 1000 to 6000 foot elevations in mesic to wet forest areas. Thought to have arrived in Hawaii prior to 1825, it has been cultivated with some success. A quick poll of 20 restaurants, both free standing and in hotels revealed that all but 2 use poha in some of their dishes. 1 Poha has been included in the “other” category in the Hawaii Agriculture Statistics Service fruit survey signifying that there is a marketed production. The Cape gooseberry is commonly grown in China, India, and Malaya. At one point commercial culture had nearly disappeared and processors had to buy the fruit at higher prices from backyard growers. Soon enough the plant grew and took off very well in cultivation and spread as escapes, but the consumers weren’t motivated to purchase, either fresh or preserved, so promotion efforts quickly stopped. 1
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Cape gooseberry
Market Characteristics
Market Segments In addition to being canned whole and preserved as jam, the Cape gooseberry is also made into sauce, used in pies, puddings, chutneys and ice cream, and eaten fresh in fruit salads and fruit cocktails. In Colombia, the fruits are stewed with honey and eaten as dessert. The British use the husk as a handle for dipping the fruit in icing. 4 This fruit is native to Chile and Peru, however this fruit is know to grow wherever tomatoes are grown. 1
Consumer Preferences Cape gooseberries native to Peru and Chile, where the fruits is sometimes eaten and occasionally sold in markets even though they are not that important in that area, it has been introduced into cultivation in other tropical, subtropical and even temperate areas. 3 The use is common to that of a tomato. Can be eaten raw, used in salads, desserts, as a flavoring, and in jams and jellies. Fruits are great when dipped in chocolate. 3
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Cape gooseberry
Apparent Consumption Imported Cape gooseberries are available to consumers all year round. The can be purchased with or without the protective husk. 2 One apparent reason why the fruit is growing in popularity is because you are able to buy it fresh all you have to do is remove the husk. 6
Competition Small farmers, using conventional technologies, grow Physalis. Even if harvest takes place all year long, peaks in harvesting occur in October-November. 5
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Cape gooseberry
Distribution Channels
Procedures to Make Orders You can make orders online to where distributors from around the world offer their products in a secure online sale, for example; ESeeds.com Ltd Blenheim House 2 Church Road Milton under Wychwood, Oxfordshire United Kingdom OX7 6LF 4
Systems and Terms of Payment Farmers wishing to supply a major exporting company must sell them all of their production during the year, starting in the high season. The exporters emphasize quality and recommend that their suppliers plant less, so that they will have enough money to take care of all crop requirements and obtain a greater percentage of export-quality fruit. The exporters are committed to pay in cash or by check 15 days after delivery. Additionally, they buy the entire yearly production according to the pre-established parameters of quality and quantity. In recent years, small and medium-scale producers have begun forming partnerships with sources of capital for inputs. The cost of rent is shared, and the production is divided equally. The investing partners are usually landowners, traders, exporters or simply farmers who want
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Cape gooseberry to share the responsibility of the business with a working partner. 5
Transportation Cape gooseberries are available all year round. They should be kept in cool rooms with forced air, in temperatures of 13 – 15 degrees Celsius, and relative humidity of 85-90%. Their transit and storage life is of 3 weeks. They are transported in highway and piggybank trailers, van containers. Most of the exports are done by plane, but know with the growing demand sea shipping is significantly increasing. 6
Packing, Types Used: Crates and Labels Cape gooseberries that are in their natural wrapping are usually packed in baskets of 3.5 ounces. When their wrapping is peeled they are usually packed in 6 oz clear clamshells. 2 Cape Gooseberries that are left with husk come in 3.5 oz. baskets. Cape Gooseberries as all other packaged foods must comply with the general standards described below.
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CODEX GENERAL STANDARD FOR THE LABELLING OF PREPACKAGED FOODS CODEX STAN 1-1985 (Rev. 11991) 7 PRESENTATION OF MANDATORY INFORMATION 8.1 General 8.1.1 Labels in prepackaged foods shall be applied in such a manner that they will not become separated from the container. 8.1.2 Statements required appearing on the label by virtue of this standard or any other Codex standards shall be clear, prominent, indelible and readily legible by the consumer under normal conditions of purchase and use. 8.1.3 Where the container is covered by a wrapper, the wrapper shall carry the necessary information or the label on the container shall be readily legible through the outer wrapper or not obscured by it. 8.2 Language 8.2.1 If the language on the original label is not acceptable, to the consumer for whom it is intended, a supplementary label containing the mandatory information in the required language may be used instead of re-labeling. 8.2.2 In the case of either re-labeling or a supplementary label, the mandatory information provided shall be fully and accurately reflect that in the original label. 8.3 GENERAL PRINCIPLES 8.3.1 Prepackaged food shall not be described or presented on any label or in any labeling in a manner that is false, misleading or
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Cape gooseberry deceptive or is likely to create an erroneous impression regarding its character in any respect. 8.3.2 Prepackaged food shall not be described or presented on any label or in any labeling by words, pictorial or other devices which refer to or are suggestive either directly or indirectly, of any other product with which such food might be confused, or in such a manner as to lead the purchaser or consumer to suppose that the food is connected with such other product. 8.1.4 The name and net contents of the food shall appear in a prominent position and in the same field of vision. 7
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Cape gooseberry
Market Access
Acceptance Conditions Cape gooseberries must be carefully pickup and should have obtained an appropriate degree of development, ripeness and maturity in order for them to be in good conditions for consumption. The FAO Food Standards (Codex Standards for Cape gooseberry) 7 has established some maturity requirements to classify acceptable products. The maturity of the fruit can be visually assessed through the outer color that changes from green to orange once the fruit has ripened. The condition of the fruit can be obtained by determining the total soluble solids. In addition, the CODEX states: • •
The change in coloring of the calyx does not indicate that the fruit has ripened The soluble solids content should not be less than 14.0° Brix.
Quality Standards This fruit should be stored at 2-4c, it is usually found next to the raspberries, blackberries, strawberries, and grapes. In order to achieve a maximum yield, Cape gooseberry is generally checked daily during harvest season in order to prevent insect damage once the husk has fallen. As the bush
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Cape gooseberry is seldom over four feet in height, it is easily trellised and can be netted to prevent bird damage.
Tariff Measurements
Ideally, all cape gooseberries must be supplied fresh to the consumer after preparation and packaging. All products should be appropriately packaged and labeled and should follow the appropriate quality standards in size, maturity, appearance, and consistency.
Cape Gooseberries is in the second position in the priority list of 15 exportable fruits. According to USD exports of this crop were worth $14,118,000 in 2004. 8
According to the FAO Food Standards 7 (Codex Standards for Cape gooseberry), producers must follow the following minimum requirements in all classes: • • • • •
The fruit should be whole or without a calyx; if calyx is present, then the peduncle should not be larger than 25 mm in length Clean, free of any visible foreign matter, with no signs of rotting or deterioration Free of pests or damage by pests that can affect the appearance Firm, fresh, with a smooth and shiny skin. Free of any foreign smell or taste
Restrictions and Regulations In order to maintain this growing market exporters and traders must continue to supply the fruit with the right quality. European traders demand EurepGAP1 certification of Good Agricultural Practice, which is designed to guarantee that the plant protection products used in the crops are registered by the local agricultural authority for this specific use. 8 The FAO Food Standards 1 7 has established certain provisions concerning the presentation of the Cape gooseberry that have to be followed. •
Uniformity: All visible contents of the package must be representative of the entire contents. In addition, the contents of the package should all be uniform and contain gooseberries from the same origin, variety, quality, color, size, and type of presentation.
•
Packaging: The product must be protected by the packaging with a package that contains
The Cape gooseberry must be in good condition and development so that it can withstand transportation and handling and that it arrives in good condition to its destination.
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Cape gooseberry •
•
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New, clean, and good quality material. The material must not cause any external or internal damage to the produce. The use of materials, specially of paper or stamps that show trade specifications is allowed, provided that they printing and labeling has been done with non-toxic ink and glue. Cape gooseberries shall be packed in each container in compliance wit the Recommended International Code of Practice for Packaging and Transport of Fresh Fruits and Vegetables (CAC/RCP 441995 Amd. 1-2004) Description of Containers: All containers must meet the quality, hygiene, ventilation and resistance characteristics to guarantee proper handling, shipping and preservation of the product. The packages must be free of all foreign matter or smell.
Technical Procedures The fruit is annual in temperate regions. In Venezuela it grows coastal range between 2,500 and 10,000 ft. In Hawaii it grows wild at 1,000 to 8,000 ft. In India it is not able to cultivate above 4,000 ft and in South India up to 6,000. 1 They take about 9 months to harvest from when they are seeded till they are grown. Adult plants are kept till about 11 months. In England at a temp of 3 degrees of frost, the fruit has survived, and in Africa at a temp of 30.5 F the plant does not survive. The differences between areas effect the survival of these plants. 1
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Cape gooseberry
Prices
In January and February of 2004 both state and USDA inspectors checked shipments of poha coming into Hawaii from outside the state showing that the demand for the fruit is growing. The working retail price is $7. Per pound. Yield per plant is 300 berries or just over 2 pounds per bush. With recommended spacing, an acre of poha can yield 3000 pounds of fruit in the course of a season. 1 In order to achieve a maximum yield, poha is generally checked daily during harvest season in order to prevent insect damage once the husk has fallen. As the bush is seldom over four feet in height, it is easily trellised and can be netted to prevent bird damage. Approximate price: $6 for a 1-pint package
Sales Promotion
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The growth of this exotic fruit depends on the effectiveness of the promotion and marketing campaigns, which aims to increase recognition among consumers. 6
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Strawberry
Strawberry Summer 2007
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Strawberry
Product Description
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Strawberries are the common name for low, perennial herbs of a genus of the rosaceous family, and also for the edible fruit of these herbs. They are native to temperate regions throughout the world1. The fruits are the actual fruits of the plant that are produced by tiny white flowers. The fruits are whitish green at first and then turn red as the fruit ripens in a process that lasts about three days. Strawberries are a great source of vitamin C and contain about 200 little seeds in each fruit. Strawberries are at their best when they are bright red and have their caps intact. In addition, the smaller ones usually taste sweeter. The United States is the number one exporter of strawberries, with a peak season from April to June. However, due to imports from Mexico and other South American countries, and flexible production in both Florida and California they are mostly available all year round. 3
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Strawberry
Nutrition Nutrition Facts Serving Size : 8 medium berries (147g) Amount per Serving Calories 45
Calories from Fat % Daily Value*
Total Fat 0g
0%
Cholesterol 0mg
0%
Sodium 0mg
0%
Total Carbohydrate 12g
4%
Dietary Fiber 4g Sugars 8g Protein 1g Vitamin A 0%
Vitamin C 160%
Calcium 2%
Iron 4%
*Percent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs. Source: PMA’s Labeling Facts
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Strawberry
Statistical Data
U.S. Production Data The United States is the largest producer of strawberries in the world. The U.S. strawberry industry’s annual production capacity is maintained by average yields which rank highest in the world and total harvested acreage that rank second largest in the world, after Poland. Production capacity in the U.S. is higher than in any other country. However, recent research has proved that China is very close to overtake the United States with a projected annual growth of 10% to 15% in the next five years.1 the big producers of strawberries worldwide are Spain, Japan and Mexico as stated in the chart below. The top strawberry growing states are California and Florida; however, it is also grown in Oregon, Tennessee, Michigan, Washington, Arkansas, Kentucky and New York. California and Florida combined account for more than 90% of the US production. California is estimated to produce about 2 billion pounds of strawberries annually and Florida about 225 million. The production for both states is forecasted down two percent from about a year ago, with a total production of about 2.3 billion pounds. It is mostly produced in California and for the winter months in Florida. 2
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Strawberry
Figure 2: Strawberry Production in California and Florida, 2000-2006 (billion pounds 2.5 2 1.5 1 California Florida
0.5 0 2000
2002
2004
2006
Source: USDA, National Agricultural Statistics Service, Noncitrus Fruits and Nuts Summary, various issues.
Figure 3. World Fresh Strawberry Supply & Utilization (2005-2006) Country
Production
Imports
Exports
48,100
Total Supply 1,067,549
United States China Spain Japan Mexico
1,019,449 646,000 295,000 188,000 150,000
Processed
99,000
Domestic fresh consumption 795,000
8,000 4,200 12,500
646,000 303,000 192,200 162,500
2,200 217,000 30 55,000
452,200 452,200 191,170 49,500
191,600 191,600 1,000 58,000
173,549
Source: Production, Supply, and Distribution Online, Foreign Agricultural Service, USDA
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Strawberry
Statistics of Foreign Trade: Exportations and Importations
Figure 4
1. Exportations California exported over 17.0 million trays of fresh strawberries and 21.9 million pounds of frozen strawberries, 12.5 percent of the state’s fresh crop and 5.2 percent of the frozen production in 2005. California produces 75 percent of the nation's strawberry crops. According to the California Strawberry Advisory Board, California strawberries are available January through November, with peak quality and supply from March to May. For the 5 year period from 2000 through 2004, the total annual consumption of frozen strawberries in the U.S. has averaged 577 million pounds per year, or roughly 1.9 pounds per capita. Growth over this 5 year period has been very modest. Exports have been increasing at an average rate of 8% over the last for years with a volume of 229.9 million pounds in 2006. The majority of exports go to Canada, Mexico and Japan, but there has been a strong growth on markets such as China, Taiwan, Australia, and the Bahamas. 5
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Strawberry Figure 5
2. Importations In winter time, it is very common for the United States to import some of the strawberry supply even though they remain a small portion of what is consumed in the market; 99% of imports come from Mexico, but supplies are also brought from China, Argentina, Canada, New Zealand, Poland and Peru. Imports for January through March in 2007 were mostly from Mexico and increased 7 percent compared to last year. In occasions where weather problems cause the issue of not being able to transport strawberries from the west of the United Stated to the east, frozen strawberries are usually imported. As in the beginning of 2007 where the demand of frozen strawberries was high due to the freezing weather at the end of 2006 that disrupted the growth and transportation of the fruit, so, frozen strawberries had to be imported to fulfill the demand of the product.6 For 2006, the imports for fresh strawberries were at 153.4 million pounds, they went up 25% from 2005.5 United States imports for Consumption of fresh strawberries are described in Figure 5.
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Strawberry Figure 6.
Demand Tendencies & Apparent Consumption Americans are large consumers of strawberries. Over the last two decades strawberries have experienced one of the highest rates of consumption growth of all fruit crops in the United States. Consumption per capita has risen sharply since the 1990s, growing by 56 percent to a record of 6.8 pounds per person in 2004. Facts that have helped this growth are the new consumer awareness on new information about health benefits as they contain antioxidants that delay aging, and the perception of being an exotic and aphrodisiac fruit. There have been several stimuli for the consumption and demand growth such as increasing domestic supplies, year round availability and production. Most of the demand growth for strawberries in the United States, however, has been in the fresh market, yet processed strawberries have had a 9% increase. Freshmarket consumption has increased more rapidly than processing as new varieties that have better shipping qualities as well as improved post harvest techniques aided in moving more high-quality berries to retail stores. U.S. consumption of frozen strawberries has estimated to be 2.11 pounds per person in 2006 and it is estimated to decline for 2007. Strawberries rank as the fifth most consumed fresh fruit in the United States, next to bananas, apples, oranges, and grapes.6
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Strawberry Figure 7. US Imports for Consumption Annual Data
Country
1996
1997
1998
1999
2000
2001
2002
In 1,000 Dollars Customs Value where quantities are collected in kilograms Mexico
52,726
23,682
63,503
60,540
48,270
43,653
55,821
1,929
1,996
2,929
2,022
2,850
1,302
1,884
0
152
393
233
1,158
309
594
493
186
146
368
683
452
525
Netherlands
12
6
26
2
41
5
49
Poland
20
0
0
0
0
16
45
Argentina
14
20
90
79
140
45
32
China
0
0
18
6
0
0
6
Israel
0
0
0
0
0
27
3
Brazil
0
0
0
0
0
0
3
Korea
0
0
0
0
0
0
2
Belgium
0
0
318
46
306
0
0
Egypt
0
0
0
0
0
16
0
New Zealand Australia Canada
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Strawberry Thailand
4
0
0
0
0
0
0
Spain
0
0
0
0
0
20
0
Peru
0
0
0
19
0
0
0
Nicaragua
2
0
0
0
0
0
0
16
1
0
0
0
0
0
France
7
0
0
0
3
0
0
Ecuador
5
0
14
0
0
0
0
Bolivia
0
0
7
11
0
0
0
186
85
12
0
0
3
0
19
0
0
0
0
0
0
0
0
0
8
0
17
0
Guatemala
Colombia Costa Rica Chile Total
55,431 26,129 67,457 63,336 53,451 45,864 58,961
Source: Agribusiness Online 7
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Strawberry
Market Characteristics
Market Segments The strawberry market has two product segments which are the fresh and frozen. Fresh strawberries represent more than 80 percent of the value of U.S. strawberry shipments. The primary market for U.S. fresh strawberries is Canada, which purchased 80 % ($52 million) of exports in 2000 due to the closeness of Canada to the United States and similar factors such as culture, economic developed and food distribution systems. In the US and in Canada the end use of fresh strawberries is home consumption. Japan is the second largest importer of fresh strawberries, purchasing 21 % ($16 million) of U.S. exports last year. However, the Japanese strawberry market is very different from the U.S. or Canadian market, their consumer quality standards are one of the highest in the world. Many companies such as Driscoll have stated how hard it is produce the product with the standard required in Japan. The end use of strawberries in Japan is confectionary market; they use them to decorate cakes and other delicacies.8
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Strawberry Figure 8
Competition Strawberries rank as the fifth most consumed fresh fruit in the United States, next to bananas, apples, oranges, and grapes. Strawberry consumption also out ranks the consumption of other berries, mostly because of its very big lead in production volume. 5 According to the California Strawberry Commission’s 2003 consumer survey: • 97 percent of American households purchase strawberries. • Strawberries are second only to bananas i In increased consumption which reflects a gain of over 1 in 5 households .In the production field the United States is the largest producer of strawberries.
Consumer Preferences Strawberries are very popular, consumers rated strawberries as their absolute favorite fruit, stating they are healthy, convenient and great tasting. 96% of customers eat strawberries several times a month during peak season, 88% of this group says they would purchase fresh strawberries year-round, 85% say they could eat strawberries every day. Consumers who eat strawberries at least once a week make up 36% of all users. Most strawberry consumers stated that they would not substitute strawberries for any other fruit if they do not find it available. 9
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Strawberry Figure 9
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Strawberry
Distribution Channels
Terms of Sales The International Chamber of Commerce (ICC) publications Incoterms 2000 and GUIDE TO Incoterms 2000 are the latest publications covering all trade terms. The more commonly used trade terms are 11 :
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EXW (named point of origin): The price quoted applies only at the point of origin, and the seller agrees to place the goods at the buyer’s disposal at the specified place on the date or within the period fixed. All other charges are the responsibility of the buyer.
•
FAS (Free alongside Ship): The seller quotes a price for goods including charges for delivery of the goods with a ship at the port. The seller is in charge of the costs of unloading, and insurance costs are left to the buyer.
•
FOB (Free on Board): The seller gives a price that includes the cost of loading the shipment. The ocean transportation and insurance costs are paid by the buyer.
•
CFR (Cost and Freight): For shipments to designated overseas port of import, the price includes the cost of transportation to the named point of debarkation. The buyer is charged for the cost of insurance. The costs of unloading cargo at the port of destination are paid by the seller or are included in the freight charges. If the charges are separate, they fall to the buyer.
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Strawberry •
CIF (Cost, Insurance, and Freight): The price given by the seller includes insurance costs, transportation costs and any other miscellaneous charge. The seller pays the unloading charges which are included in the freight charges; if they are separate they are charged to the buyer
Payment Methods To decide which method or combination of methods of payment to use, the seller must weigh the risks and costs involved. The buyer can’t tie up the capital on product that they don’t have or they can lose the sale if their competitors are willing to offer better terms. The seller needs assurances that the buyer is not going to default on payment when they receive the goods. Companies need to develop an international credit policy that does not impede sales, but protects them against loss. The seller should evaluate if credit needs to be offered, the credit history of the buy, the conditions in the buyer’s country, can profit be made after offering credit and consequences of non-payment. The most common methods of payment are: • Cash in advance • Standby letter of credit • Commercial letter of credit
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• • • •
Documentary collection Open account Mixed methods Additional payment methods
Cash in advance is usually considered the safest method of collecting payment for the seller. Cash in advance can take the form of a wire transfer or check. The ideal method is the international wire transfer as it permits receipt of good funds. The payment options are not mutually exclusive; usually sellers will use a combination of methods. For example, they can require 50 percent of the payment in cash in advance and the rest in documentary collections. The simplest currency of payment for U.S. exporters is the US dollars. 11
Transportation Strawberries are available all year round with production from the US, Canada, Mexico, New Zealand, Ecuador, Costa Rica and Chile to name some countries. In order to be adequately transported they atmosphere needs to be modified to elevated carbon dioxide to limit the decay of the fruit. They need to be maintained at temperatures of 0 degrees C and with a relative humidity of 90-95%. They are usually transported by air cargo containers and in highway trailers. The pallet loads are covered with a plastic bag to protect the strawberries from any form of damage. 10
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Strawberry baskets, make sure that the fruit height allows for the lid to be closed without causing the strawberry any damage. The number of layers depends on the size of the fruit; with large fruit there may be only two layers. The top layer must fairly represent the contents of the pack.
Strawberries need to be transported and stored at a high relative humidity. They are usually more susceptible to moisture loss than others which can result in wilting and shriveling. To reduce this moisture loss, products must be adequately pre-cooled before transit to remove of the field heat. Some products also are waxed, film-wrapped, packageiced, or top-iced. Relative humidity during transit and storage must be maintained as much as possible. 10
The berries are packed, transported and sold in cardboard cartons, usually holding 12 or 15 baskets. 9
Packing, Types Used: Crates and Labels
Canned strawberries may be packed in water, fruit juice, water and fruit juices, mixed fruit juices, and with sugar. When sugars are added to the strawberry juice, the liquid shall be not less than 14°Brix according the Codex Standard for Canned Strawberries. 12
Packaging- Packaging depends on market requirements, cost and supplier preference. Strawberries for local market are packed in baskets or chips. Basket sizes and styles may vary. As fruit is sold on a per basket basis, lower fruit weights per basket are an advantage to the grower. Basket styles are either with no lid, with cellophane and rubber bands used to provide a lid, or complete ‘clamshell’ type lidded containers, which are very convenient for fruit handling, storage and display in any type of market. To pack each basket, put the fruit loosely in the bottom of the basket without any definite layer system. Once the lip of the basket is reached, utilize strawberries of the same size and quality to complete the pack weight. Pack the fruit onto the outside rim of the basket and add in layers so that the outside of the mound is faced with the sides of the fruit. For clamshell
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Strawberry
Labeling As the FAO Food Standards implies, in addition to the General Requirements for the Labeling of Prepackaged Foods, all labels should comply with the following provisions 14 : •
The name of the product should be “strawberries” and the packing medium should be declared as part of the name.
•
If the packaging medium is composed of water or juice the label should state that the product is “in water” or “in juice”.
•
When sugar is added to the water or to the fruit juice the label should state “with syrup”.
•
When the strawberries are packed in water or juice, and the fruit juice and water comprises 50% or more, the packaging medium shall be designated to indicate the preponderance of such juice or water.
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Strawberry
Market Access
Acceptance Conditions Only good quality, pest and disease free berries are exported. Packaging and quality requirements are usually outlined by the exporter and must be carried out to suit the particular overseas market. The strawberry industry operates a residue assurance programmed for exports. Prior to first export pick, each strawberry garden supplies a fruit sample for agrichemical residue analysis, and the spray diary for audit. Export certification must also be obtained. This takes the form of a phytosanitary certificate, which is issued on the basis of export fruit inspection, either at the grower or exporter premises, and audit of exporter quality assurance systems. 9
Quality Standards Commitment to Quality The California strawberry industry developed a comprehensive food safety program in 1996 to provide consumers with the highest level of confidence in California strawberries. (CSC) The Food safety Program (FSP) educates strawberry growers, shippers and processors about good agricultural, handling and manufacturing practices and responsibilities governing food production while maintaining a safe work environment. 9
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Strawberry According to the FAO Food Standards Codex Standard for Strawberries 12 there are several quality requirements that strawberry producers should follow. • Color: strawberries should have normal color characteristics and typical to the variety use. • Flavor: strawberries should have a normal flavor, usually sweet, and they should be free from foreign odors and flavors. • Texture: strawberries should have a reasonable texture and should not be excessively firm or unreasonable soft. • Defects and Allowances: They should be free of common defects such as a complete calices or broken berries.
U.S. fresh strawberry exports to Mexico are no longer subject to tariffs. Prior to NAFTA, Mexico charged a tariff of 20 percent on strawberries, but the tariff was eliminated in 1994 when NAFTA was implemented. The tariff for frozen strawberries, which had amounted to 20 percent, was phased out in 2003 after a 10-year reduction period. Mexico’s tariffs on preserved strawberries were eliminated in 1994. Before 1989, the U.S. tariff on fresh strawberry imports was 0.4 cents per kilogram for the summer period (June 15 to September 15) and 1.7 cents per kilogram for the rest of the year. These tariffs were eliminated in 1994 under NAFTA. The tariff for imports of frozen strawberries was 14 percent and was incrementally reduced until it was phased out in 2003. All U.S. tariffs for imports from Canada were phased out over 10 years. 13
Restrictions and Regulations
Tariff Measurements The United States charges 0.2 cents per kilogram on imports from June 15 to September 15 for countries with most favorable nation status. The tariff is 1.1 cent per kilogram for imports at any other time of the year. The tariff for frozen strawberries is 11.2 percent. Countries belonging to specific import groups (e.g. GSP, NAFTA, and ATPA) are allowed to import without paying the tariff. Most U.S. strawberry trade takes place in North America and has been influenced by tariff changes under NAFTA. U.S. exports to Canada faced a tariff of 6.61 cents per kilogram on fresh and frozen strawberries before the Canadian-U.S. Free Trade Agreement (CUSTA). Beginning in 1989, those tariffs were reduced over 10 years and reached zero in 1998.
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The government of the United States requires export documentation for national security, control of products in short supply, compiling export statistics, administration of export laws, protection of endangered species, and to protect U.S. export markets by ensuring product quality of specific exports. The main document required by the U.S. government is the Shipper’s Export Declaration (SED). Regarding the documentation that accompanies any import shipment each government as its own requirements. These documents are required for the administration of their import laws, assessment of taxes, and for the protection from hazardous pests and diseases. The most frequent documents
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Strawberry required are: commercial invoice, bill of lading, phytosanitary certificate (for plants or plant products), veterinary health certificate (for animals or animal products), packing list, and certificate of origin. Other regulations that may affect a shipment may include packaging, labeling and recycling laws. Buyers and importers may require different documents than the ones required by the government. In order for importers to receive financial assistance they usually need a specific document to receive an import permit. Possible documents that could be requested are; pro forma invoice, inspection certificate for grade and condition, or a statement of processing methodology (depending on the level of processing involved). 11
Technical Procedures Freezing Gently wash berries in several changes of cool tap water and drain. Remove caps and drain berries. May be sugar packed or packed with medium syrup. May also be tray frozen with no sugar. Puree very ripe strawberries. For each two cups of puree fruit, add 1/4 cup sugar and 1 tsp. lemon juice. 15 PRODUCTION DIAGRAMS FOR THREE PRESERVATION TECHNIQUES 16 •
Shelf-stable whole strawberries of high moisture
•
Shelf-stable strawberries purée
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Intermediate moisture whole strawberries
In transit Procedures During transportation of refrigerated loads in trailers and containers, the carrier should check the operation of the refrigeration unit and temperature of the load compartment regularly.
Receiving Procedures Before completely unloading a shipment for storage, receivers check the load to make sure they follow the required specification for quality, grade, and packaging. The receiver also has to analyze if the load was adequately braced and if it had the correct temperature. These temperatures have to be recorded, using an electronic probe thermometer. The airtemperature recorder is also read. Shippers and carriers are the ones notified if there are any problems with the product, its packaging, the loading method, if a corrective measure has to be taken. If there is a problem with the load, the receiver, carrier, or shipper can request an inspection by a licensed inspector. Unresolved disputes over product quality or payment can be referred to arbitration or other legal avenues. Products that are unloaded need protection from the sun, condensation, loss of moisture, and inadequate temperatures. Otherwise, the efforts of growers, shippers, and carriers to maintain product quality will have been in vain. 11
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Strawberry
Prices
According to the prices of one of the main Florida Tropical Fruit Producer “Robert is here” located in Homestead, strawberry prices range from .89 cents to $2.49 a pint depending on the season. The following table illustrates the prices of strawberry production in the United States. Figure 10. Terminal Prices of Strawberries by State ORIGIN Atlanta Baltimore Boston Chicago Dallas Detroit Los Angeles Miami New York Philadelphia Pittsburg San Francisco Seattle St. Louis
PACK 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket 12lb basket
SIZE Large Large Med-large Extra-large Extra-large Extra-large Large Med-large Extra-large Large Med-large Large Lge-exlge Lge-exlge Average Price
PRICE/BASKET 16.00-17.50 14.00-15.00 12.00-16.00 13.00-14.00 13.50-14.00 10.50-11.50 9.00-12.00 20.00-21.00 15.00 13.00-13.50 16.00 10.00-12.00 14.00-17.00 11.50-14.90 14.174
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Strawberry
Sales Promotion
The Florida Strawberry Growers association has worked hard to promote Florida strawberries. They have released commercials in television and radio and movie screen ads that would make it very difficult for household consumers to not know when strawberries are in season. The FSGA has developed several marketing campaigns to expand the market. Examples of these are the press kits and news releases nationwide to food editors with color slides featuring the fresh strawberries, television, radio, and movie ads emphasizing the growing season, and the website created to list supporting handlers, and purchasing of strawberry merchandise. The California Strawberry Commission works year-round to promote the California strawberries around the country. The Commission overseas and conducts agricultural research, and promotes the strawberries through marketing programs targeting consumers, retail trade, and export markets. Annually the Commission budget approximately $2 to $4 million to market and promote the product including about $500,000 in federal matching funds for overseas programs. 9
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Loquat
Loquat Summer 2007
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Loquat
Product Description
Loquat’s [pronounced: "LOH-kwahts" scientific name is Eriobotrya japonica. The Loquat fruit is commonly known as the “Japanese Plum”, the “Chinese Plum”, or Nispero. The loquat is covered with little hairs much like the skin of a peach. The fruit of the loquat is bright yellow on the skin and the pulp on the inside. In some cases the skin may be orange with a white pulp. The fruit size of loquats is an average of 2 ½ inches. The loquat has sweetly tart cherry-like or pear-like flavor. The loquats are one of the first fruits to ripen in the spring. 1
Nutritional Facts The nutritional contents of the loquat allows for it to react as an anti-inflammatory for intestinal activity, therefore adequate for delicate stomachs. The flower of its tree it’s used as treatment for cough among other uses.
Source: Whole Foods Market 2
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Loquat
Statistical Data
U.S. Production Data The U.S. production of the Loquat is limited to the states of Florida, Hawaii, and California. Much of this production is a result of homemade orchards with no commercial value; although some commercial production has been identified in places such as Santa Barbara and San Diego, California. The national production of Loquat is not available in the USDA or in the FAO, or NASS. The censuses from 1992, 1997, and 2004 did not show a positive result. This is mainly to the fact that the average consumer of Loquats are from foreign colonies.
Statistics of Foreign Trade: Exportations and Importations Worldwide China is the number one producer of loquat followed by Spain. Spain’s production is largest than Japan, loquat’s origin, Italy, and Brazil, these are the world’s top producers. 3
Production The worldwide production is of 62,000 ha with 314,000 tons with a great diversity of the fruit with all of their varieties, much of these varieties are cultivated by great producers such as China and Pakistan. China represents 64% of worldwide production. Main producers beside China are: Spain, Pakistan, Turkey and Japan. International trade is very low, only 7.4% of
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Loquat the total production, from which 83% corresponds to Spain. According to the data available from Spain, loquat is the horticultural fruit with the lowest loss in real income over the last 20 years although loquat has spread world wide, only 13 countries are included in this table. Both data from production and acreage show that the crop is not important enough to be included in FAO statistics. The most important cultivars are: Tanaka, Algerie and Golden Nugget. There are also cultivars selected in the different countries where the species is grown.
Exportations The exportation is very limited to a small segment of its producers. Spain, export data displays the low level at which this crop is marketed Spain is one of the world’s great producers of loquat and 36 to 47 % of their production is exported to other countries. Between Spain, Italy, Portugal, and France 95 % of exports are covered worldwide. 5 Yearly 231,184 are exported. Figure 2. Word’s production and export
Figure 1. Surface and world-wide production of loquat.
Source: PUCV 4
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Loquat Figure 3. Chile’s exportation of Loquat from 1998-2005
Main Origin of Importations The main importer of Loquat’s to the United States is Chile; this is due to the high comparative prices of the product. Chile export Loquat since 1984 the year in which they started exporting as an exporting with only 170 boxes. 6 The main destinies of Loquat’s in the United States are cities such as New York, Philadelphia, Miami and Los Angeles. The wholesale market of Chicago receives their Loquat’s from the Production of Loquat’s originating in California. The imported amount has varies throughout the years; For instance, in the year 2004 62.4 tons were imported (FOB US $ 310,000), and in the year 2005 74.5 tons were imported (FOB of US $ 342,000). From figure it can be noted that there’s a rising importation of Loquat’s from 2002 to 2005, the noted decrease from the year 2001 to 2002 was due to the quarantine of “white chanchitos”, and there was a need to be removed from the market due to its high sensitivity to pests.
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Source: PUCV 7
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Loquat
Demand Tendencies The tendencies among Hispanics in the consumption has increased as increase in their interest for natural, fresh, and exotic products, this pattern has been growing for the past 5 years. In addition there has been an increase in the use of Loquat in the culinary world. In Hawaii the demand of this product is increasing and has helped create future plans for the expansion of their production in order to meet the demand. Exporters such as Chile have been working in increasing the value of their fruit through better packaging for long lasting and better tasting fruits, this has impacted the Hispanic market since it has been reported that fresh and exotic fruits have a higher demand. In addition, more variety of the product is now being produced as well and distributed, such as jam and the nectar that is now use to make wine.
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Loquat
Market Characteristics
Market Segments New York, Detroit and Chicago are the biggest consumers of loquat in the United States. New York is most important in terms of prices and volumes, in this place the Loquat that is commercialized is exclusively of Chilean origin.
Consumer Preferences Consumer preferences vary throughout the time exposed to the American lifestyle. Much of their consuming behavior is based on the nostalgia created of products such as Loquat. Recent research showed that Hispanics living in the United States for less than three years appreciate the use of fresh produce and fruits and home made meals, unlike those with three or more years who have accustomed to the life style and don’t mind but rather prefer frozen foods. The graph represents the times throughout the year in which Hispanics prefer frozen foods marked by the red line, rather than fresh fruits. It can be noted that there’s a higher tendency to want fresh fruits. The result of this is to meet the public’s nostalgic feeling of their home land by eating or using fresh products7. In fruits such as Loquat a market has not really opened due to the lack of variety and diversity of the product. The times it has been marketed has been as a fresh fruit; although the largest demand has been recently reported takes place on the weekends when this cultural group seeks fresh products.
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Loquat
Apparent Consumption Figure 4.Yearly preferences of frozen fruits vs. fresh fruits 314,384 Tons are consumed worldwide, from which 231,184 are exported. The main consumers of Loquat in the American Fruta congelada
market correspond to the colonies of Asians, Greek, Italian and Arab. The average American shows little interest. The market is small and exist few places of sale, reason why it would be possible to be saturated easily increases in the supply as opposed to.
Conservas y Concentrados
100
More than $460 million were used in products due to nostalgia of the consumer’s homeland among Salvadorians. Currently there’s a population of 2,215 million and only 24% of the demand is actually met.
50
Figure 5. Total Population of Salvadorians in the U.S.
0 Ene
Feb
Mar
Abr
May
Jun
IICA 8
Jul
Ago
Sep
Oct
Nov
Dic
F r o z e n F r u its C ity P o p u la tio n W a s h in g to n , D .C . 1 5 0 ,0 0 0 N e w Yo rk , N .Y . 4 2 1 ,0 0 0 S a n F ra n c is c o , C a lifo rn ia 4 5 0 ,0 0 0 L o s A n g e le s , C a lifo rn ia 8 0 0 ,0 0 0 S a n ta A n a , C a lifo rn ia 8 5 ,0 0 0 M ia m i, F lo r id a 7 5 ,0 0 0 N e w O r le a n s , L a . 9 ,6 0 0 H o u s to n , T e x a s 9 2 ,0 0 0 C h ic a g o Illin o is 7 2 ,0 0 0 B o s to n , M a s s a c h u s s e tt 6 1 ,0 0 0 T o ta l 2 ,2 1 5 ,6 0 0
C o n ta in e r s 14 3 9 .3 42 7 4 .7 7 .9 7 0 .9 8 .6 6 .7 5 .7 2 0 6 .8
IICA 9
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Loquat
Competition Loquat is a fruit that has potential for a larger production and commercialization, but its high cost in the production, especially the cost of labor limits the development of Loquat in the market. Because of this is hard for subtropical fruits such as Loquat to even compete with the traditional fruits, with higher levels of production. Even in the subtropical market is hard for Loquat to beat other fruits such as Marañon, Zapote, or Jocote whose market cover nearly 85% of the exotic fruits market in the Hispanic consumers 10 . •
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Loquat
Distribution Channels
Procedures to Make Orders Order can be made to small distributors such as Gem World located in Fresno, California. Orders can be made online at www.gemworld.com under unrelated products. Loquats can also be found in small shops targeted to specific cultural villages such as Hispanics, in New York City, to which loquats are part of their diet. The traditional distribution channel is the following: Figure 6. Distribution Channel Productor
Oficina Exportación
Distribuidor Distribuidor
Sub SubDistribuidor Distribuidor
Supermercado
Tienda
Consumidor
IICA 11 It starts with the producer, to the office of exports, then the distributor, to the sub-distributor in the receiving country; for instance Chile would be the producer and exporter, and the U.S the importer where a sub-distributor distributes the merchandise to small shops or supermarkets. The form of the product might change according the mode it’s going to be sold.
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Loquat
Systems and Terms of Payment The International Chamber of Commerce (ICC) publications Incoterms 2000 and GUIDE TO Incoterms 2000 are the latest publications covering all trade terms. The more commonly used trade terms are 11 : •
•
•
•
EXW (named point of origin): The price quoted applies only at the point of origin, and the seller agrees to place the goods at the buyer’s disposal at the specified place on the date or within the period fixed. All other charges are the responsibility of the buyer. FAS (Free alongside Ship): The seller quotes a price for goods including charges for delivery of the goods with a ship at the port. The seller is in charge of the costs of unloading, and insurance costs are left to the buyer. FOB (Free on Board): The seller gives a price that includes the cost of loading the shipment. The ocean transportation and insurance costs are paid by the buyer.
•
CIF (Cost, Insurance, and Freight): The price given by the seller includes insurance costs, transportation costs and any other miscellaneous charge. The seller pays the unloading charges which are included in the freight charges; if they are separate they are charged to the buyer
The system and terms of payments change according to the product, if it’s frozen the following is the general concept followed by figure 7 where the cost is added throughout the shipping process. Figure 7. Frozen Fruits PRODUCTOS CONGELADOS Productor Distribuidor Distribuidor Precios: EXW FOB FAS
CIF DDU DDP
CFR (Cost and Freight): For shipments to designated overseas port of import, the price includes the cost of transportation to the named point of debarkation. The buyer is charged for the cost of insurance. The costs of unloading cargo at the port of destination are paid by the seller or are included in the freight charges. If the charges are separate, they fall to the buyer.
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Detallista
+ 30%a 35%
IICA
Consumidor
+ 45%a 50%
12
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Loquat In the same manner if the fruit’s are fresh or preserved figure 8 represents the process. Overall the price FOB (Chile) of the loquat is of US$ 12 to 15 the box of 3 kg, arriving at the consumer to a high price since the cost of the aerial load is due to add and others. Figure 8. Fresh Fruits
Transportation The mode of transportation change according to the mode the fruit was originally obtained. Over all the mode of transportation of loquat is by highway and piggyback trailers, van containers, or air cargo containers in cell packed fiberboard or wood flats, 25-49 count, 4.5 kg (10 lb) 14 .
PRODUCTOS EN CONSERVA O FRESCOS Productor Distribuidor Distribuidor Precios: EXW FOB FAS
CIF DDU DDP
Detallista
+ 30%
IICA
Consumidor
Packing, Types Used: Crates and Labels
+ 35 a 40%
When packing the product is vital to protect and conserve the fruit in order to arrive to the customer as fresh as possible. In addition the type of package used gives information to the consumer about the product including what is inside or its characteristics, by then becoming a “silent salesperson. 15 ”
13
In figure 9 the average price (US$ of December of 2005) of loquat during years 1998 to 2005, it is possible to be observed that they are visibly noted that more stops were made (US$11.5/Kg) in the beginning of the season (October and November) that those of the aim of the season (US$ 8.7/kg) (December and January).
The packaging used during the transportation and the handling is vital since it what helps the product stay fresh and edible. As Martinez points out wood it’s the traditional material used for fruits and vegetables, from the collection of the product, to the storage, transportation, and selling of the product. The benefit of using wood in that there’s less absorption of water and reduces the product inside to dry. In addition it helps reduced the heat 16 In addition of wood, cardboard boxes are also used. Generally they consist of two or three layers in which the exterior is used
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Loquat for advertising purposes and inside is adapted to help maintain the humidity of the product. Most of the boxes allow the product to breathe through small opening designed in such a way that does not allow the box to weaken. One of the benefits of using cardboard is that it weights less and easier to store. But just as Martinez refers there’s a higher capacity of absorbing water and less chance of eliminating the heat 17 . In addition there are also two different types of packaging of the actual product. The first is PET (polietilen tereflalato) this is a type of plastic that because of the process of polarization used creates a high grade of crystalline in the plastic and high resistance to breakage due to its high chemical resistance. It’s a great barrier for CO2 and humidity. It’s totally recyclable and approved for its used as packages to be in contact with food. 18
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Loquat
Market Access
Acceptance Conditions The nectar of loquat obtained in this process has an aroma and good flavor, described thus by 36 and 32, 7% as the surveyed people; whereas 48, 7% and 45,7% established that these characteristics are very good to excellent. The jam presents/displays good aroma, texture, color and aspect, therefore they confirm the 28,2, 30,9, 33,3 and 25% respectively; whereas the 45, 34,5, 34,5 and 50% respectively, affirm that these characteristics are very good. The wine as product presents/displays good aroma, texture, color, aspect and aroma, therefore affirms the 40, 61,5, 38,4, 53,8 to it and 30,7% of the person surveyed respectively; to equal 40% of these people they considered that the aroma of this product is very good.
Quality Standards At all times and all types of loquat each fruit have to meet the following quality standards: 1. Be in good shape 2. have been taken of from the stem 3. exempt from abnormal exterior humidity 4. exempt from rare smells and/or color
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Loquat factors. See the grades and standards used in the North American and European fresh and processed industries
5. the fruit must have been collected carefully 6. the loquats must present a enough growth development and grade of maturity allows for it to handle the handling and transportation 19
YES
Permission of Import Required Phytosanitary treatment
T-107-a
Ports of Authorized Entrance Origin
The fruits that receive cold treatment can enter port following additional: Airport of Atlanta, Georgia; Gulfport, Mississippi; Seattle, Washington; and Wilmington, North Carolina.
ALL Peninsula and Balearic
If the prescribed period of refrigeration has been marked to the time from the arrival to port, the product can enter port any of the EEE.UU equipped with inspectors of the PPQ. Nevertheless, if this period has not been marked to the date of arrival, the product can only enter by ports of the North Atlantic, and by the following ones: Airport of Atlanta, Georgia; Gulfport, Mississippi; Seattle, Washington; and Wilmington, North Carolina. Treatment: T107-a Treatment of cold
Tariff Measurements According to the Free Trade Agreement, between Chile and the United States, the Loquat is in process in order to lower tariffs of duties, that is to say, with an entrance tariff zero.
Restrictions and Regulations
Temperature
Period of Exhibition to the Treatment
1,11°C (34º F) or less
14 days
1,67°C (35º F) or less
16 days
2,22°C (36º F) or less
18 days
The following is an overview according to USDA of the steps that should be followed when sampling and taking regulatory action on commercial shipments of fresh fruits. The steps to follow can be found in table 2-1. Producers and exporters need to indicate the specific terms of quality for the produce they are supplying, including size, appearance, and other
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Loquat
Technical Procedures After the loquats are collected and carefully put in trays they arrive t the packing department, there each person grabs a box and carefully blows with a air gun each fruit in order to eliminate any insects or dirt to present in the zone. At all times the fruit is being held by the stem, if the fruit presents any damages the fruit is immediately put aside. After the cleaning process the fruit is placed in a plastic tray called typack to be packed for shipping. Below is a diagram of the process of the collection and distribution of the fruit.
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Loquat
Prices
It is important to make notice the lack of information of prices corresponding to some years and months and the deficiency of information of given volumes. The average price of the loquat of $12 making this price almost unattainable to the consumer this due to the high cost of labor and transportation. In addition not all varieties of loquats are allowed to enter the United States due to the high risk of creating different types of epidermis.
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Loquat
Sales Promotion
There has not been clear sales promotion of the fruit in the market due to the consumer’s lack of knowledge on the existence of the product. This is a great opportunity that should be taken advantage of. With the exception of Spain and its sales promotion and advertising of their fresh Loquats and products in nearby countries. Callosa d’En Sarria one of the biggest producers of loquat has launched a new campaign. The strategic campaign promotes loquat has “The fruit of beauty”, for all their natural nutrients that protect your skin, nails, and hair since it provides a sense of freshness because it consist 75% of water.
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Upcoming Commercial Events
Importers List and Distribution Networks
Cape gooseberry 1. International Fruit & Vegetable LTD (Spain) 2. BAYER (Colombia)
Strawberry 1. Tang Shan Fresh Foods Co., Ltd USA 2. Driscoll 3. strawberry fields 4. Four season general merchandise
Loquats 1. Donosti 2. Sapei Spain 3. Callosa D’En Sarria
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Upcoming Commercial Events
Upcoming Commercial Events
Summer 2007
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Tropical Fiesta June 16 and 17; 24801 SW 187 Ave, Contact Info: 305-247-5727
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The California Strawberry Festival - Oxnard, CA. In 200The California Strawberry Festival is Saturday and Sunday, May 19 and 20 from 10 am to 6:30 pm each day. 1661 Pacific Avenue #15, Oxnard, CA 93033. Phone: (805) 385-4739. Fax (805) 385-4729. Toll Free Information: 1-888-288-9242.
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Garden Grove Strawberry Festival - MAY 25-28, 2007, Hours: Friday (1 p.m. to 10 p.m.), Saturday and Sunday (10 a.m. to 10 p.m.), Monday (10 a.m. to 8:30 p.m.) Garden Grove, CA. Held at the Village Green, between Euclid and Main Street Streets in downtown Garden Grove, California. Admission is free.
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Spring Strawberry Dessert Festival - in 2007, Saturday & Sunday, July 31 & August 1 from 11 am to 6 pm Watsonville, CA. (Downtown Watsonville). Admission is FREE with plenty of parking! Watsonville is one of the largest strawberry growing regions in the world, so what better place to celebrate than Main Street Watsonville with a festival that includes fresh strawberry desserts, entertainment, savory foods and the laughter and fun that is sure to ensure? Some of the events: Pie Eating Contest, Topnotch Entertainers, Entertainment on stage, Gourmet Ethnic Foods, Children's Events & Fun, Castle Bounce, 22' Giant Slide, Hermit Crab Toss, Ferris Wheel, 14 passenger
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Upcoming Commercial Events Fire truck. For more information contact Terry Pimsleur (415) 249-4625 •
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Agritech 2007- August 28-29 at the John R. Trinkle Building located at the Plant City Campus of Hillsborough Community College. This event will be one of the best events of the year hosted by the Florida Strawberry Growers Association. You will be able to earn valuable CEU’s, fellowship with other growers and industry representatives, and enjoy great food. Guest speakers and sessions are currently being lined up. Topics this year will include: Immigration, Food Safety, Methyl Bromide alternatives, and learn about future marketing plans.
PMA Fresh Summit International Convention & Exposition
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Fresh Summit is the world's largest fresh fruit and vegetable expo event featuring over 750 exhibitors with over 17000 attendees from over 70 countries. Here you can network with other produce industry leaders, strengthen relationships with current suppliers, gather information for future purchasing decisions, see new products, some being displayed for the first time at this show and leave with plenty of ideas for building your business and your bottom line. Visit the website at http://www.pma.com
Plant City Florida Strawberry Festival - Late February through early March every year. Considered one of the top festivals in the country, the Florida Strawberry Festival is ranked one of the best by the International Association of Fairs and Expositions. Over 62 years old, the Festival was established to celebrate the harvest of the strawberry that has made Florida the Winter Strawberry Capital of the World United Fresh Fruit & Vegetable Produce Expo & Conference
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Conclusions and Recommendations
Conclusions and Recommendations
The Cape gooseberry is an exotic fruit. Place of origin Colombia. Since the exports of exotic fruits are not permitted this fruit is not commonly known. It is a very nutritious fruit. Can be eaten raw, used in salads, desserts, as a flavoring, and in jams and jellies. Fruits are great when dipped in chocolate. This fruits are available year round. This fruit will grow in popularity in places were it is not yet commonly know. One reason is because consumers are able to buy it fresh all you have to do is remove the husk. Also the peeled fruit is rich in Iron, Phosphorus, and Vitamin A and C. The recommendation for this fruit is not to import, because the lack of information and strong restrictions, mainly because there’s not high market for this fruit. The United States is one of the top producers and exporters of strawberries. Even in non peak seasons the import are not as high as assumed. The recommendation for the producers of strawberries is not to import because the cost of transportation would be higher than the profits. Loquats are widely known fruits from ornamental trees around parks and homes, but are highly unknown as a market and there’s a low production commercially. Spain is one of the largest producers and exporters of the fruit. Chile is the United States main importer due to the free trade agreement and regulations in the fruit due to their high risk of epidermis. Fruit specialist Robert Moehling suggested that there’s not a high demand for loquats to enter the market. After the extensive research our recommendation is that there is a possible market, but changes in the cost need to be made in order for
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Conclusions and Recommendations the product to be attainable. The high cost of the fruit is based mainly on labor cost and transportation cost. If alternative choices such as changing the packaging used and mode of transportation and handling the cost should lower and therefore the demand would be higher.
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References
References Cape Gooseberry http://www.hort.purdue.edu/newcrop/morton/cape_gooseberry.html#Description
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http://www.capegooseberries.com/nutrition.html
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http://www.yourproduceman.com/news_apr_4_05.html
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http://www.tradewindsfruit.com/cape_gooseberry.htm
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http://www.fao.org/docrep/007/y5488e/y5488e0c.htm
6http://www.bayercropscience.com/bayer/cropscience/cscms.nsf/id/Colexofru_Agro/$fi le/colombianfruits_1_2006.pdf 7
http://www.eseeds.com/c-263-ground-cherry-cape-gooseberry.aspx
8. http://www.ams.usda.gov/tmd/Tropical/f&v/tomatillo.htm 9.www.codexalimentarius.net/download/standards/368/CXS_226e.pd; (Codex Stan 226-2001, AMD. 1-2005)
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References
Strawberry 1. "Strawberry," Microsoft® Encarta® Online Encyclopedia 2007;http://encarta.msn.com © 1997-2007 Microsoft Corporation. All Rights Reserved 2. http://homecooking.about.com/cs/foodfactsheets/p/strawberry_pro.htm 3. China Looms as Frozen strawberry leader, February 1, 2006 http://refrigeratedtrans.com/news © 2007 Penton Media, Inc. 4. Fruit and Tree Nuts Outlook/FTS-327/May24, 2007 Economic Research Service, USDA; www.ers.usda.gov 5 http://www.fao.org/docrep/007/y5488e/y5488e0c.htm 6. Fruit and Tree Nuts Outlook/FTS-317/July 28, 2005 Economic Research Service, USDA 7.http://www.agribusinessonline.com/stats/08101000_strawberries.asp 8 8. U.S. exporters doing their berry best to boost sales - berry exports; AgExporter, Nov, 1992 by Robert Tse; http://findarticles.com/p/articles/mi_m3723/is_n11_v4/ai_13290970 9 9. http://www.calstrawberry.com 10 10. http://www.ams.usda.gov/tmd/Tropical/f&v/strawberrie.htm 11 11. http://www.ams.usda.gov/tmd/export/AgExTransHand04.pdf 12 12. www.codexalimentarius.net/download/standards/242/CXS_062e.pdf 13.http://www.agmrc.org/agmrc/commodity/fruits/strawberries/commoditystrawberrypr ofile.htm 14. www.fao.org 15.http://www.cahe.nmsu.edu/pubs/_e/e-321.pdf 16.http://www.fao.org/inpho/content/documents/vlibrary/ac303e/ac303e03.htm
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References
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IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002.
Loquat 9 1
Article Source: http://www.articlecube.com/Article/History-Of-The-Loquat/26068
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http://www.wholefoodsmarket.com/products/produce/list_fruit.html
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FAO, 1999. FAO QBS, VOL 12:314.
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IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002. 14
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“Mercados.” Proyecto Níspero. Universidad Pontifica Católica del Valparaíso. 18 June 2007 5
MAPA, 1997. Anuario de Estadística Agraria. Ministerio de Agricultura, Pesca y Alimentación. Madrid:320-322 6
POSSEL, R. 1992. Tipos de embalaje y aplicación de di fenilamina en la conservación en frío de frutos de níspero (Eriobotrya japónica, Lindl) cultivar Golden Nugget. Memoria de título. Santiago, Universidad de Chile, Facultad de Ciencias Agrarias y Forestales. 76p. 7
“Mercados.” Proyecto Níspero. Universidad Pontifica Católica del Valparaíso. 18 June 2007
PAÑOS, C. 1996. El desafío de los envases de frutas y hortalizas. Horticultura internacional. 4 (14): 17-27. 15
PAÑOS, C. 1996. El desafío de los envases de frutas y hortalizas. Horticultura internacional. 4 (14): 17-27. 16
MARTINEZ, J. 1991. El acondicionamiento de frutas y hortalizas. Revista Horticultura. 72: 67-81. 17
CORPORACIÓN COLOMBIA INTERNACIONAL. 2002. Manual del exportador de frutas, hortalizas y tubérculos en Colombia,(on line). http://www.cci.org.co/Manual%20del%20Exportador/Conservac_emp aque_transp/transpack21.htm
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IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002. 9
ABC-PACK, 2005. Cajas de cartón ondulado,(on line). www.abc-pack.com
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Ministerio de relaciones con las cortes y de la secretaria del gobierno por la que se aprueba la Norma de Calidad para los Nísperos destinado al mercado interior (BOE No. 291 from 5 Dec, 1987)
IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002. 10
IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002. 11
IICA. instituto interamericano para la cooperación agrícola. Estudio de mercado para las frutas nativas en estados unidos: jocote, marañon, zapote, mamey, arrayán, níspero y anona. September 2002. 11
http://www.ams.usda.gov/tmd/export/AgExTransHand04.pdf
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