final rishi intenship

8/14/2019 Final Rishi Intenship

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Leibniz Universitt Hannover

Report on:Module A05 Analysis of Business Operation by Internship

AtElbe-Obst Company

February 25 to March 21, 2008

Submitted by:Rishi Ram Kattel

Institute for Environmental Economics and World TradeLeibniz Universitt Hannover

May 2008

Submitted to:Prof. Dr. D. M. Hrmann

Leibniz Universitt, Hannover.

Supervisor at the Elbe-ObstMr. Jens AndersonMarketing Public Relation EDP,Elbe-Obst company.

Bassenflether Chaussee 4 b21723 Hollern-Twielenfleth


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List of Figures and Tables

Figures: PageFigure 1: Elbe-Obst Fruits growing area and Company location..1

Figure 2: Organizational structure of Elbe Obst Company.5

Figure 3: 3a: Local transportation Fig 3b: Marketing transportation means....6

Figure 4: Data about fruit production in Elbe-Obst area.7

Figure 5: Farmer involved integrated pest management practice in apple......8

Figure 6: Major apple growing field and a glance of site planning in Elbe area...9

Figure 7: Bee and fruit maintenance measures10

Figure 8: Apple harvesting in Elbe-Obst orchards..11

Figure 9: Fruit quality assurance from ready for packaging apple.12

Figure 10: Different certification logo that adopted by Elbe.Obst...12

Figure 11: Elbe-Obst supplies and coordination between producer group and Market

Company..13

Figure 12: Elbe-Obst standard design and labeling...15

Figure 13: Elbe-Obst studel design pack..15

Figure 14: Elbe-Obst wave design in different variety of apple package16

Figure 15: Apple kids brand of apple ready for market.17

Figure 16: Kancky logo and apple packed for immediate consumption..17

Figure 17: Convenience apple produces19

Figure 18: Transportation means and apple sorting, packaging house.20

Figure 19: Internee involved in apple sorting, labeling and packing in Elbe-Obst company.21

Tables:Table 1: Monograph concerning the history of Elbe-Obst...2

Table 2: The deviding of the apple varieties in 2007 and the plan for the deviding

in 2017, prepared by Elbe-Obst Project....7

Table 3: Fruit marketing period .14

Table 4: Calendar of daily activities..22

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Abbreviations

QS: Quality and Safety Standard

IFS: International Food Standard

EUREPGAP: EUREP Good Agricultural Practices

Mt.: Metric ton

mm: millimetre

CA/ULO: Control Atmosper/ Ultra-Low-Oxygen

CO2: Crbon-dioxide

O2: Oxygen0C: Degree Celcius

ha: Hectare

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Acknowledgments

I would like to extend my heartfelt gratitude to Elbe-Obst, which accepted me as an internee

and provided me a great opportunity to work and gain practical experience in fruit sorting,

packing, labeling and value chain market development. I am thankful to Mr. Jens Anderson,

Marketing Public Relation EDP, Elbe-Obst who provided all the necessary guidance and

supervision during my internship.

My grateful thanks go to my academic supervisor Prof. Dr. Ulrike Grote, Institute for

Environmental Economics and World Trade who have encouraged and provided me valuable

supports/interactions.

Equally, I am thankful to Prof. Dr D. M. Hrmann and Dr. Karin Hoenicke, Leibniz

Universitt Hannover who coordinated with Elbe-Obst for my internship.

I am grateful to all the staff and farmer family in particular the Elbe-Obst team where I found

good help and assistance in the daily work. Meanwhile I am very pleased with friendly and

supportive behaviour of the team.

I wish to express my heartfelt thanks and colleagues Mr. Pradyot Ranjan Jena, Mrs. Sweta

Khanal, Mr. Yogesh Lama, Mr. Homnath Giri and Mrs. Sita Giri who have offered me

encouragement and valuable supports.

Last but never least, the heartily encouragement from family members is the backbone to

continue every endeavors for ever. I am very much grateful to them.

..

Rishi Ram Kattel

M.Sc. in International Horticulture

Institute for Environmental economics and World Trade

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Section I: Elbe-Obst Company

1. Introduction

The growing area Old Land Region lies north-western of Hamburg in the river Elbe`s

glacial valley. Fruit-growing in the Lower Elbe region boasts a tradition which dates back

over 600 years. Settlers dug canals, built dikes and established settlements, thus creating the

biggest coherent fruit growing are in Northern Europe. Residents of the Altes Land

discovered, and exploited, fruit-growing as a profitable line of business on Hamburgs

hinterland hundreds of years ago.

Fig. 1: Elbe-Obst Fruits growing area and Company location

Elbe-Obst supplies the food retailing industry, the processing industry, the convenience

product industry and also the export market. Besides the provision of fruit, the performance

range comprises numerous services incorporated the group of processes between the fruit

producers and the Elbe-Obst marketing company/Elbe-Obst producer group sales market. By

combining producer know-how and marketing skills in the form of franchise system, Elbe-

Obst is able to offer cultivation and marketing from a single source

.

The marketing company Elbe-Obst Vertriebsgesellschaft mbH is made up an association of

commercial companies and the producer group Elbe-Obst Erzeugerorganisation r. V., and

thus fulfils the demand for concentration on the supply side. It is responsible for marketing


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measures as well as drawing up offers, invoicing, the collection procedure and distribution. It

has a fleet of 76 trucks with a transport capacity of 1500 Mt.

In 1968, approximately 600 fruit producers merged to form the producer group Elbe-Obst

Erzeugerorganisation. Today these cultivate some 6000 hectares of Pomaceous, stone and

soft fruits. Average annual fruit production yields exceed 120,000 Mt., whereby apples are

the major product. Elbe-Obst therefore lays claim to the vast majority of fruit cultivated in the

region.

The grouping, sorting, preparation and packing of the produce are carried out at 9 sorting and

packing houses in the fruit- growing region. Each house has scheduling, cooling and

CA/ULO facilities with a total capacity of over 100,000 Mt. These warehouses are equippedwith wide-ranging technical facilities that are constantly up-dated. State-of-the-art equipment

makes it possible to process some 210 Mt. of fruit per hour

2. History of Elbe- Obst

Well looked after half-timbered houses, water, dikes, winding roads and fruit-trees as far as

the eye can see home to the largest single fruit-growing area in northern Europe. Fruit-

growing in the Lower Elbe region boasts a tradition which dates back over 600 years. Dutch

settlers dug canals (catch-water ditches), built dikes and established settlements, thus creating

the landscape which is still typical of the area today. Residents of the Altes Land

discovered, and exploited, fruit-growing as a profitable line of business on Hamburgs

hinterland hundreds of years ago. The historical development of the Elbe-Obst through

different years is presented below.

Year Activities

2002 Beginning of the marketing of the new club-sort Red Prince.

2001 Recognised as a producer organisation in accordance with VO (EG) Nr. 2200/96.

2000 Founding of the Deutsches Obst-Export-Kontor GmbH together with other leading

grower-companies.

1999 New construction of the central administration in Bassenfleth. The sorting stations

in Bachenbrock and Whrden and the central administration in Stade have been

relocated at the new site.

1998 Taking over the "Obstverwertung Stader Geest eG" (grower-organisation) with the

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Building of the packing houses in Bachenbrock, Huttfleth, Jork, Knigreich und

Hoopte.

1969 Development and Introduction of the trade mark "Elbe-Obst".

1968 Foundation of the "Obsterzeugerorganisation Niederelbe r.V. OEON" (grower-

organization) as the organization before the Elbe-Obst Erzeugerorganisation r.V.

1966 Beginning of crises in the German fruit growing industry as a result of surplus

production in the EEC. As a result of the creation of arable land, the following

decades witness a continual restructuring of farming from large via medium to

small sized M9 trees and an updating of the product range, i.e. a modernization of

fruit farming. By 2000 the area used for cultivation remained stable at some 10,000

ha, while the number of companies amounted to 1,000.1933 Self-sufficiency economy with control of levies by district levy offices. Cultivated

areas were 9,600 ha. Transport including the use of Lorries.

1929 Establishment of the Fruit Testing Group as a producers' self-help organization.

1920 Area for cultivation of 2,580 ha. More than 1,600 fruit farms. Transport including

the railway and coastal motor ships.

1912 Recognized key area for cultivation of fresh fruit, almost sole supplier of the

German marmalade industry. However, also suffers crises as a result of insectinfestation.

1987 Recognized key area for cultivation of fresh fruit, almost sole supplier of the

German marmalade industry. However, also suffers crises as a result of insect

infestation.

1972 Popular area for cultivation of 600 ha.

1825 Storms and floods destroy more than 35,900 fruit trees.

1656 Reconstruction following the Thirty Years' War, more than 700 fruit farms.1581 Cherry war between Hamburg and the archbishopric of Bremen, blocking of

markets in Hamburg for fruit from Altes Land.

1320 1320 initial mention of a fruit garden in Bassenfleth.

Table 1: Monograph concerning the history of Elbe-Obst

3. Organizational structure

The Board of Executive Directors of Elbe-Obst, consists of nine members. Mr. Heinrich

Vlkers is the chairman of the Board. The board is responsible for the management of the

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company. Three divisions consisting sale organization, administration and packing house

apensen are responsible in all production and marketing business. Its activities and decisions

are geared to the company`interest.

Fig. 2: Organizational structure of Elbe Obst Company

A. Sales Organization

5. Food Security, BiologyProtection: Carsten Greisiger

C. Packing house Apensen

Frank DscherMelitta FrhaufManuela MertinsJens Hohmann

1. Bookkeeping, control and staffsdevelopment :

Wilfried von Allwrden

4. Packing house, plant andEquipment: Ulrich Braun

2. Marketing Public RelationEDP: Jens Anderson

6. Autorized Signatory:

Stefan Moje

3. Secretariat:Petra Tuber, Maria Waller

2. Sales Agent:Peter BuckowSven Burmester

Internship supervisor atthe Elbe-Obst company .

1. Sales Manager:Hans LuckertBjrn Wieneke

7. Sales Manager:Jens Weisner, Jens Lohmann

5. Fruit-clearing system:Martina Gutzeit, Sarah Dammann

B. Administration

Elbe-Obst CompanyManagement CommitteeChairman: Heinrich Vlkers

4. The management of the cultivation of Elbe- Obst

Two ideally suited types of soil are predominant on the fruit-growing areas of the lower Elbe

region which covers the best part of 10,500 hectares. On the one hand there is the alluvial

land known as marsh, located in the Elbe glacial valley at approximately two metres above or

one metre below sea level. The other is the diluvial claylike sand know as Geest, some thirty

metres above sea level. The average of the temperature is 8.7 oC a year. There are averagely

1500 hours with sunshine a year. The amount of rainfall is 740 mm a year.

The sugar/acid level is a key parameter for the development of a fruits taste. The climate

predominant in the lower Elbe region produces a balanced amount of acid in proportion to

5
http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1668&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1669&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1902&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2167&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1673&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1684&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2427&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2426&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2444&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2167&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1902&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1669&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1668&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1684&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=1673&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2427&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2426&idsprache=2http://www.elbe-obst.de/db/international/sb-ansprechpartner.cfm?id_eintrag=2444&idsprache=2


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sugar, thus providing the foundation for the aforementioned excellent taste. The colder nights

prior to harvesting, which are customary in the fruit-growing region, bring about an excellent

intensity of red blush. In contrast, the warmer growth periods after blossoming enhance the

development of an ideal-size fruit. The cultivation of crops in a climate ideally suited to

pomaceous fruit produces a thin peel covered with merely a thin film of wax due to the lack

of protection needed against transpiration.

4.1 Characterization of the Elbe-Obst producer-group

In 1968, today approximately 450 fruit producers merged to form the producer group Elbe-

Obst Erzeugerorganisation. They cultivate some 6,000 hectares of pomaceous, stone and soft

fruits. Elbe-Obst therefore lays claim to the vast majority of fruit cultivated in the region.

The grouping, sorting, preparation and packing of the produce are carried out at 9 sorting and

packing houses in the fruit-growing region. Each house has scheduling, cooling and CA/ULO

facilities with a total capacity of over 100,000 tonnes. These warehouses are equipped with

wide-ranging technical facilities that are constantly up-dated. State-of-the-art equipment

makes it possible to process some 210 Mt. of fruit per hour.

Fig 3a: Local transportation Fig 3b: Marketing transportation means

Elbe-Obst supplies the food retailing industry, the processing industry, the convenience

product industry and also the export market. By combining producer know-how and

marketing skills, Elbe-Obst is able to offer cultivation and marketing from a single source.

4.2 Data about the production

The Elbe-Obst product range consists of pomaceous fruit, stone fruit and soft fruits, whereby

apples account for the majority of production. For the export to Taiwan Elbe-Obst only want

to sell apples at the moment. The deviding of the product range shows the following chart.

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Soft Fruits: 2 %, 130 ha

Pomaceous Fruit: 91 %, 5.200 ha

Stone Fruit: 7 %, 420 ha

Fig. 4: Data about fruit production in Elbe-Obst area

The Average annual fruit production yields exceed 150000 Mt. Besides the typical market

varieties the product range also includes regional varieties. Pears take on a notable support

part with some 3,000 Mt. per season. A difference is made between early and late varieties. In

the case of early varieties, the ripening period provides the fruit with a full edible character.

Later varieties only develop the full aroma a number of weeks after the harvest. The

deviding of the apple varieties in 2007 and the plan for the deviding in 2017 shows the

following chart:

Sorteactualquantity(Mt.) % from 100

ambition2017

alteration in%

ambition% from100

Elstar 43,000 24.5% 32,500 - 24 % 20.9%

Jonagored/Rubinst. 35,000 22.9% 20,000 - 43 % 10.5%

Red Prince 8,500 3.8%20,000

+ 135 % 14.0%

Braeburn 2,000 0.8% 15,000 + 650 % 8.4%

Kanzi 100 0.0% 15,000 + 14.900 % 10.5%

Rubens 620 0.2% 10,000 + 1.513 % 10.5%

Boskoop 10,000 7.6% 7,000 - 30 % 4.9%

Holsteiner Cox 15,000 9.9% 7,000 -53 % 7.0%

Jonagold/Jonica 15,000 11.5% 4,000 - 73 % 1.4%

sonstige pfel 6,000 4.6%3,000

- 50% 2.1%

Gloster 10,000 6.9% 2,000 - 80 % 1.4%

Golden Delicious 2,200 1.7% 1,500 - 32 % 1.0%

Gala 800 0.6% 800 +/- 0 0.6%

Cox Orange 4,000 3.1% - - 0.0%Ingrid Marie 2,500 1.5% - - 0.0%Fiesta 500 0.4% - - 0.0%

Table 2: The deviding of the apple varieties in 2007 and the plan for the deviding in 2017,

prepared by Elbe-Obst Project.

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4.3 Integrated crop management

In order to do justice to the responsibility to consumers and commitment to the environment,

the Altes Land Fruit-Growing Research Institute (OVR), in conjunction with Elbe-Obst and

other organisations, took on the task of drawing up Guidelines for integrated crop

management in the lower Elbe region.

Integrated means equal consideration within a single system is given to all the production

factors which have an affect on the fruit-growing procedure, whereby binding cultivation

regulations stipulate that the entire group of processes regarding fruit production be

incorporated in the system.

Crop management: the monitoring of cultivation regulations by the Lower Saxony and

Hamburg Chambers of Agriculture as part of the production process.In addition to the cultivation procedure a seal of quality, Altes Land Fruit (Fruits of Old

Land Region), has been introduced for market communication and labelling purposes. The

blue represents the river Elbe, green the marsh area and yellow depicts the Geest region. This

logo is only used for goods produced via integrated crop management.

The major objective of the cultivation procedure is to

supply the consumer with fruit grown in a healthyenvironment, use environmentally-friendly production

methods and maintain family-owned fruit farming businesses.

In integrated crop management a key role is played by the fruit producer, who observes,

utilises and promotes the self-regulating natural cycles. For example, knocking tests,

pheromone-baited insect traps and egg deposit tests provide information as to the population

development of beneficial insects and parasites.

Fig. 5: Farmer involved integrated pest management practice in apple.

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As a result of the systematic application of natural limitation factors regarding pest control,

for example by way of encouraging the application on beneficial insects, the use of pesticides

can be considerably reduced. However, in order to protect plants from fungal disease and

noxious animals, approved pesticides which do not pose an environmental threat to beneficial

insects or water may be applied in carefully-targeted doses.

The Guidelines for integrated crop management in the lower Elbe river region comprise the

cultivation site planning, the maintenance measures, the harvest and storage and the quality

assurance.

4.3.1 Cultivation site planning

Expert and intensive maintenance work, and crop management, in the orchards make it

possible to provide the required yield for Elbe-Obst member companies. A carefully planned

co-ordination of all fruit-growing measures in line with integrated crop management criteria

guarantees the best possible stock success.

Fig. 6: Major apple growing field and a glance of site planning in Elbe area.

Besides an analysis of site conditions, the cultivation and planning work consists, in

particular, of an analysis of the apples and documents so as to avoid a slump in earnings and

a drop in quality. Thus varieties in strong demand can be cultivated in greater numbers and

other reduced to meet product mix demands. To this end dwarf stock trees are cultivated in

hedgerows on sites with ample light.

4.3.2 Maintenance measures

Recurrent maintenance measures include soil, plant and fruit management as well as pest

control. Soil management is carried out by carefully applying specific tools so as to co-ordinate the mineral nutrition levels of fruit crops with plant requirements by way of soil and

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leaf samples. Frequent mulching of the grass-covered row middles creates a uniform supply

of water, humus and nutrition. The pruning of fruit trees so as to replenish the fruit-bearing

boughs is a key part of plant training. The objective is to achieve a better fruit colour and

exploitation of the available light.

Fig.7: Bee and fruit maintenance measures

Fruit management measures are carried out in relation to the crop regulation. This is done by

means of the frost-protection sprinklers that cover 50 % of the cultivated area, pollination via

the targeted introduction of beehives into the orchards and thinning by hand to remove

damaged fruit.

4.3.3 Harvest and storage

The apples are picked on a number of occasions during the harvesting period on the basis of

different degrees or ripeness and size of the fruit so as to improve quality. The degree of

ripeness dictates whether the fruit is to be stored for sale and consumption within hours or

cold-stored in the CA/ULO warehouses. Such storage procedures are intended to reduce the

fruit-respiration of the apple, retard the emission of volatile substances and prolong the

marketing season, whereby it is necessary that the quality of the fruit be maintained until it is

offered to the consumer.

By storing their produce producers aim to reduce the respiratory process of apples naturally

so as to delay shriveling. In this respect the quality of fruit needs to be maintained as regards

the key substances such as vitamins and taste up to the time of purchase by end users. Long-

term storage relieves pressure on marketing in autumn and extends the marketing season.

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Fig. 8: Apple harvesting in Elbe-Obst orchards

Apples are kept in cold-storage for 2 to 3 months. At 0.5C to 5C the fruits respiratory

process is reduced by some 20% to 30%. Furthermore, in addition to storage in airtight rooms

the composition of the air in CA/ULO warehouses (Controlled Atmosphere/Ultra-Low

Oxygen) is altered so that the fruit subject to the variety can be stored for 5 to 12 months.

The objective of long-term storage in CA/ULO warehouses is achieved if the oxygen content

(O2) of the respective type of apple is reduced to 1.3% - 1.5%, and the carbon-dioxide content

(CO2) is increased to 0.8% - 3.5%. In an uncontrolled atmosphere there is about 20.9%

oxygen, approx. 79% nitrogen and some 0.03% carbon-dioxide. A reduction of the oxygen

content is achieved by the fruits natural respiratory process. Nitrogen is fed by machine into

the warehouse to accelerate this process. The carbon-dioxide content increases due to the

exhalation of the fruit. To maintain values which are compatible with other types of apples,

carbon-dioxide is constantly withdrawn from the air in the warehouses. This is achieved by

way of a chemical fusion with hydrated lime, or via physical addition to activated carbon.

The air in the warehouse is checked by using precision measurement and controlling

equipment and also via samples taken daily by fruit farmers.

Humidity regulation is a further key aspect of long-term storage. An ideal balance between

cold-storage and heat insulation of the storage rooms forms the basis for a constant high level

of humidity.

4.3.4 Quality assurance

Integrated fruit farming requires that precise records be kept of the development of cultures

and the measures that are implemented. Precise records must be kept of when, why and

which measures are implemented. To this end fruit farmers keep operations record books

(Quality-management-handbook). These include, for example, documentation of the results

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of soil and leaf analyses, fertiliser and pesticide measures, results of monitoring activities,

and descriptions of plant systems and sorting documents.

Fig. 9: Fruit quality assurance from ready for packaging apple.

Companies which pursue an integrated fruit farming policy are under obligation to disclosetheir type of production, allow the company's operations record book to be inspected, and

grant access to their orchards and equipment for inspection purposes. They also permit

specimens of soil, leaves and fruit to be taken from their production sites as regards the

inspection of residues. The page entitled Quality Assurance provides a systematic overview

of the implemented controls and the respective situations in which controls are carried out.

The Elbe-Obst producer group is certified from EUREPGAP, Quality and Safety

standard(SQ) und International Food Standard(IFS).

Fig. 10: Different certification logo that adopted by Elbe-Obst.

4.3.5 Research and consulting

Fruit-growing research is carried out at the Lower Saxony Chamber of Agriculture Fruit-

Growing Research Institute (OVA). The research refers to varieties, rootstocks, plant-

systems, pesticides, fertilizer, irrigation, drainage/dewatering, fruit-quality, stocking,

machines, apparatuses, application engineering and economics. The results are directly

incorporated in the range of services provided by the Old Land Fruit-Growing Research

Institute (OVR). All Elbe-Obst producers belong to the syndicate.

Above all, the syndicate provides consulting services by way of personal discussions which

are supplemented in the group consulting sessions via discussion evenings, specialist lecturesand further training courses. In addition, the syndicate publishes the farmers operations

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record book (Quality-management-handbook), drawn up by the producers. The Guidelines

for integrated crop management in the lower Elbe region are subject to an annual dynamic

adjustment procedure set out in this book. The Lower Saxony Chamber of Agriculture Fruit-

Growing Research Institute (OVA), the Old Land Fruit-Growing Research Institute (OVR),

the Biological Fruit-Research-Group from North-Germany (ON) and the Water Protection

Council of the Hamburg Agricultural Chamber together form the Fruit Growing Testing and

Consulting Centre (OVB). The domicile of the OVB is in the Old Land region.

5. Elbe-Obst fruit marketing

5.1 Marketing company (Vertriebsgesellschaft mbH)

The marketing company Elbe-Obst Vertriebsgesellschaft mbH is made up of an association

of commercial companies and the producer group Elbe-Obst Erzeugerorganisation r. V., and

thus fulfils the demand for concentration on the supply side. It is responsible for marketing

measures as well as drawing up offers, invoicing, the collection procedure and distribution. It

has a fleet of 76 trucks with a transport capacity of 1,500 Mt. The marketing company Elbe-

Obst Vertriebsgesellschaft mbH is made up of an association of commercial companies and

the producer group Elbe-Obst Erzeugerorganisation r. V., and thus fulfils the demand for

concentration on the supply side. It is responsible for marketing measures as well as drawing

up offers, invoicing, the collection procedure and distribution. It has a fleet of 76 trucks with

a transport capacity of 1,500 Mt.

Elbe-ObstThe FoodRetailingIndustry

The ProcessingIndustry The

ConvenienceProductIndustry

Producer Group(Erzeugerorganisation

r. V.)

Marketing Company(Vertriebsgesellschaft

mbH)

Packing facilities are constantly brought up to date regarding the presentationand transport of the fruit so as to supply all conventional types of packing

The ExportMarket

Fig 11: Elbe-Obst supplies and coordination between producer group and Market Company.

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5.2 Marketing period of fruit (especially apple and other pomaceae fruit)

Table 3: Fruit marketing period.

MonthsFruit varieties

5.3 The food retailing industry

5.3.1 Brands

5.3.1.1 Elbe-Obst standard design

The "Elbe-Obst" brand was introduced in 1969. At the same time the company was renamed

Elbe-Obst Erzeugerorganisation r.V. [Elbe-Obst Producer Organisation]. Since then several

million marks have been spent on establishing the "Elbe-Obst" manufacturers brand. As a

result the company has gained considerable popularity among food retailing industry

customers and end users. In 1995 the colour and form of the logo were redesigned without,

however, altering the characteristics.

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The Elbe-Obst logo is used solely to market fruit produced by members of the producers

organisation. The following design lines have been created for the various sales programmes:

Standard, Strudel, Wave, For Celebrations and Entertainment.

In the case of the Standard design, advertising vehicles with white backgrounds are used

which either illustrate the Elbe-Obst logo on its own or include the region and quality seal.

All customary cardboard boxes and grade notes are available in the standard design. Large

boxes are also available in brown.

Fig. 12: Elbe-Obst standard design and labeling.

5.3.1.2 Elbe-Obst strudel design

The Strudel design is used for insert cards, foodtainer recipe cards, price tags and grade notes.

Thanks to the colour design, the aforementioned advertising vehicles are ideally suited for

use on IFCO or STECO trays.

Insert cards are used for goods that are packed in one or two-layer trays. The insert card bears

the name of the type of fruit in large letters. This can be supplemented with information about

the taste below the name of the fruit. Such additional information can be placed on the short

or the long side of the tray.

Fig.13: Elbe-Obst studel design pack.

5.3.1.3 Elbe-Obst wave design

The Wave design is available on insert cards, foodtainer recipe cards, price tags and grade

notes. It draws attention to the maritime aspect of the fruit growing region. Thanks to the

colour design, the aforementioned advertising vehicles are ideally suited for use on Europool

trays.

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Insert cards are used for goods that are packed in one or two-layer trays. The insert card bears

the name of the type of fruit in large letters. This can be supplemented with information about

the taste below the name of the fruit. Such additional information can be placed on the short

or the long side of the tray.

Fig. 14: Elbe-Obst wave design in different variety of apple package.

5.3.1.4 For Celebrations

The 3Kg basket is one of the most successful advertising campaign boxes. It is the most

frequently listed box used in the food retailing industry flyers, and is usually granted a special

position when displayed in shops. Consequently, Elbe-Obst has created 3 baskets for the key

advertising campaign periods: Freshly Picked, Christmas Apples and Easter Apples.

Freshly Picked applies to apples marketed in autumn whereby the harvest time and ripening

period occur simultaneously. These apples are not kept in cold-storage or in CA/ULO

warehouses. The concept is further underlined by the lettering Freshly Picked, and also by the

autumnal colour scheme and leaves falling on the 3Kg basket.

5.3.1.5 Obst-Land

The Obst-Land logo has been used solely in the food

retailing industry to label grade I and II core fruit since

1995. However, it is of great importance as regards

positioning the Elbe-Obst brand programme. Core fruit grown using conventional fruit

farming methods by Elbe-Obst members as well as suppliers within and outside the LowerElbe region may also be marketed by way of this brand.

5.3.1.6 Apple Kids

Market analyses have shown that with regard to apples, children and youngsters do not

consume in full the sizes of fruit offered in the standard programmes of the food retailing

industry. The fruit left-overs end up in the rubbish bin. It makes sense, therefore, to offer

smaller fruit sizes. In 1993 Elbe Obst reacted to this development with the launch of the

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Apple-Kids brand. The name and logo refer without doubt to the target group and size of

fruit. The preferred calibration (diameter in mm) is 65/70. Other selections are also available.

Furthermore, a range of give-aways is offered via the Apple-Kids logo.

Fig.15: Apple kids brand of apple ready for market.

5.3.1.7 Knacky

Since 1997 the Knacky logo has been used for apples for immediate consumption. These are

placed in shops with a high percentage of snacks and convenience products, for example

petrol station shops. The fruit is packed in normed 2-apple trays which either contain 2 green

or 2 red apples. A crate consists of 10 trays. The pricing is carried out on an item basis per

tray using the EAN code. Trays with 4 and 6 apples are also available.

Fig.16: Kancky logo and apple packed for immediate consumption.

5.3.2 Seal of quality

Elbe-Obst uses the territory seal "Fruit

from Altes Land cultivated using

integrated fruit farming methods subject to

ongoing inspections carried out by the

Hanover and Hamburg Agricultural Chambers" depending on the respective sales

programmes. In addition to the Elbe-Obst logo, advertising vehicles are used which provide a

special reference to the origin and the fruit growing procedure. In this respect the territory

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seal may only be used in the case of fruit grown using integrated farming methods in the

Lower Elbe region.

The producers or producing organisations and fruit wholesale companies are reserved the

right to use this seal. The "Sponsoring Association for Fruit Grown in the Altes Land Region

Using Integrated Farming Methods", of which Elbe-Obst is a member, is responsible for

awarding the seal.

5.3.2.1 CMA quality seal

The quality seal "Brand Quality from German States" developed by the Central Marketing

Company of deutsche Agrarwirtschaft mbH (CMA) is today by far the most widely known

quality seal for food of German origin. For consumers and the food industry it has become an

important guide as regards purchasing foods. The fruit and vegetables labeled with the CMA

quality seal must meet the preconditions of the "Quality and Testing Provisions for Fresh

Fruit and Vegetables Produced Using Integrated Farming Methods".

The regulations include:

-licensing inspections of production facilities

-licensing inspections of products

-regular product tests

-inspections regarding product design

-controls via random samples in the trade

Elbe-Obst is bound by contract to the memorandum and articles of association, and the

conditions of practice, as regards using a quality seal, and in addition uses the CMA Quality

Seal in line with the used brand and packaging. Consequently, inspections are carried out

regularly at all Elbe-Obst production locations without prior notice by neutral testing

institutes commissioned by CMA.

5.4. The Convenience product industry

The convenience market is supplied by way of individual components to produce ready-to-eat

foods. Apples, pears, plums, prunes and strawberries are processed. Customers include

bakeries, industrial bakeries, salad factories, hotel chains as well as the catering industry and

delicatessen shops.

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Fig. 17: Convenience apple produces

The apple products include whole apples, cubes, segments, rings, slices and also strips, diced

apples and pommes. Pre-cut apples are also available. The apples are pealed and the pips,

stem and blossom are removed. Cubes are available in a standard size of 10mm x 10mm x

10mm and are deep-frozen in loose quantities or are packed fresh in individual boxes.

Segments are divided into equal-sized parts.

5.5. The Export market

A co-operation characterized by partnership has been in place between SARA Produce Ltd.

and Elbe-Obst since 1995. On the one hand, this entitles SARA to exclusively represent the

Elbe-Obst brand policy in England, Scotland and Wales. SARA also markets German core

fruit solely from Elbe-Obst. At the start of the co-operation, Elbe-Obst reorganised its

packing station in line with English regulations. SARA subsequently granted Elbe-Obst the

Pack house Certification which is geared toward the British food market.

SARA is one of the key suppliers of fruit and vegetables to the British

food retailing industry. Among others, the following chains are supplied:

Iceland, Safeway, Lidl and Netto. At present SARA utilises the Elbe-

Obst and Apple-Kids brands. An additional proportion of the core fruit is used for SARAs

Fruitkids products. These are figures in the form of individual fruit and vegetables which are

used for various marketing campaigns, including at the point of sale.

In 2000 the five German fruit producing organizations, or their regional marketing

companies, established Deutsche Obst-Export-Kontor GmbH (DOEK), which has its

registered office in Bonn. The following provide consulting services for DOEK: CMA

Central Marketing Company of deutsche Agrarwirtschaft mbH, Bundesvereinigung der

Erzeugerorganisationen Obst und Gemse e.V. (BVEO) and the AFC Group. The partners

are:

Elbe-Obst Vertriebsgesellschaft mbH Obst vom Bodensee-Vertriebsgesellschaft mbH

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Centralmarkt Rheinland eG OGM Obstgromarkt Mittelbaden e.G. VEOS Vertriebsgesellschaft fr Obst mbH

The enterprise is aimed at promoting fruit exports from German production. In this respect it

is envisaged that all synergies resulting from the German fruit growing industry be grouped

together so that these companies can assert themselves in the European market. To this end

one employee for foreign matters has been appointed for Moscow and St. Petersburg.

5.6. Processing industry

Up to 45,000 Mt. are marketed as industrial fruit. This amounts to some 30% of the harvest

yield. The produce is supplied to the Elbe-Obst stations as industrial fruit or is drawn fromthe preparation of dessert fruit. The fruit is transported via the companys own vehicle fleet.

Fig. 18: Transportation means and apple sorting, packaging house.

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6. Internship objectives

According to the compulsory module (A05), I was participated four weeks internship

program in Elbe-Obst Company, Stade Germany. The major learning objectives of Analysisof Business and Research Operation by Internship were as follows:

1. To familiar with Elbe-Obst company, its works flow and management strategies,2. To learn integration into team work and operated as part of them efficiently,3. To gather information on technical fruit cultivation practices and marketing value

chain activities,

4.

To gather practical experience in the organization, and5. At last, to learn and exercise for good report writing.

With these general objectives as background, my internship at the Elbe-Obst was specifically

aimed at gathering relevant information pertaining to fruit cultivation and marketing value

chain

Fig. 19: Internee involved in apple sorting, labeling and packing in Elbe-Obst Company.

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Part II: Daily Schedule

Date: 25 February to 21 March 2008.

Place: Elbe-Obst Company, Bassenflether, Stade.

Daily working time: 8 am to 17 pm

Table 4: Calendar of daily activities

Date Activities

2008.02.25

Monday

Reached in Elbe- Obst Company, and introduced with project, andcompany staffs.

Introduction of Elbe-Obst company working division. Overall visit and observation of the fruit packing hose division, its work

place and working procedure.

Working in apple packaging department. Knew about how to packagedand labeling.

2008.02.26

Tuesday

Involved in apple packaging, labeling and loading from 8:00 am. to 5:00pm.

2008.02.27

Wednesday

Involved in apple packaging, labeling and loading from 8:00 am to 5:00pm.

2008.02.28

Thursday

Discussion with Mr. Anderson (Marketing Public Relation, EDP)regarding value chain and fruit marketing system

Participating in apple labeling, packaging and loading.2008.02.29

Friday

Participating apple packing, labeling and loading with packaging team. Searching relevant information about Elbe-Obst fruit growing area and

company by internet and discussed with Mr. Anderson.2008.03.01

2008.03.02 Weekend

2008.03.03

Monday

Worked in apple packaging, labeling and loading division. Familiar different varieties of apple that grown in Elbe-Obst area.

2008.03.04

Tuesday

Worked in apple packaging, labeling and loading division. Familiar different varieties of apple that grown in Elbe-Obst area.

2008.03.05 Worked in Apple sorting house and knew about different grade of apple

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Wednesday on the based of color and size.

Worked in main company office and familiar on value chains andsupermarket chain scheme of different fruits.

2008.03.06

Thursday

Worked in Apple sorting house and knew about different grade of appleon the based of color and size.

Worked in main company office and familiar on value chains andsupermarket chain scheme of different fruits.

2008.03.07

Friday

Worked in Apple sorting house and knew about different grade of appleon the based of color and size.

Worked in Main company office and familiar on value chains andsupermarket chain scheme of different fruits.

2008.03.08

2008.03.09 Weekend

2008.03.10

Monday

Worked in apple packaging house, knew about apple storage in coolingenvironment, most of the apple varieties are stored from 3- 8 months

with controlled atmosphere.

2008.03.11

Tuesday

Worked in apple packaging house, involving for packaging, labeling andloading of apple in different packed size.

2008.03.12

Wednesday


2008.03.13

Thursday


2008.03.14

Friday


Discussed with Farmer Mr. Elesh (Farmer) about apple production area,integrated pest management and different apple varieties. He has 65

hectares apple cultivation area, and He also introduced new varieties of

apple (Red Prince) since 2000 in around 10 hectares of land.

Discussed with Mr. Anderson about value chain and qualitymeasurement and control

Faired well with Mr. Anderson, He would go in new pace with hisfamily from coming week for celebration of his holidays.

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2008.03.15

2008.03.16 Weekend

2008.03.17

Monday

Worked in apple sorting house, packaging. Labeling and loading onwooden frame.

2008.03.18

Tuesday

Worked in apple sorting house. Visited in apple growing area and familiar on cultivation practiced

especially training, pruning and integrated pest management.

2008.03.19

Wednesday

Worked in apple sorting and grading. Visited in Red Prince apple growing garden Discussed with farmers about apple production, farmers group(24

farmer groups in Elbe-Obst area) and their integrated pest management

and cultivation practices.

2008.03.20

Thursday

Working in apple sorting and grading Discussed with apple producers group and their planning for varieties

selection, quality management and marketing.

2008.03.21

Friday

Easter Holiday begins

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Part III: Key Learning and Recommendations

1. Key Learning

During my internship, I worked in Elbe- Obst fruit packaging house. I learnt more things

about the technique of fruit production and supply on marketing standards, especially in

practical terms, and have gathered enough information and expertise on integrated fruit

production, value chain promotion by sorting, grading, packing with concerning consumer

demand and market outlets. Productive team work was found in different management level

and between co-workers in company. Marketing outlets had been identified and coordinated

between company, farmers, supermarket chains and export traders as well as government

office for sustainable and profitable market. In other hand, labor union was found stronger

and willingness to efficient output. Also division of labor in different units of sorting,

washing, packing and porter loading had been effectively managed in time. Capital intensive

product chains were being applied in both inside and outside of the company.

Major key learning during internship period were:

Strong coordination and efficiency output product, Division of labor in each small unit of sector, Impersonality coworkers, Rationality and cooperation, Diversification strategy in both production and marketing, Integrated fruit production, varieties introduction and well orchard management, Quality standard of different fruits production and marketing, Coordination between producers group and marketing group.

Actually, I learnt about team work, value chain approach by different advertise and customers

attraction scheme on market outlet ready packages concerning quality control in both

cultivation and post-harvest handling period. 24 commercial apple growers are actively

involved in fruit production as well as cool storage and pre- marketing activities like sorting,

grading, labeling and packaging.

I learnt that a mission is carried out by Elbe-Obst. Also, in addition to the above mentioned

formal and official know-how, the internee also got familiar to the informal and friendly part

of the Elbe-Obst and producer group. The trend in the office among staffs to go for lunch all

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together everyday, and the friendly, helpful & encouraging nature of the colleagues in the

company are something which the internee is greatly pleased about. I have now some

experience in value chains and environment friendly fruit production techniques. Indeed, I

have had a good time, and it was rich experience.

Thus, the work I did at Elbe- Obst was really interesting and relevant to me. I hope the

experiences gained in this time would be a valuable source of knowledge for my future

research.

2. Recommendations

While assigning work, it would be convenient and interesting for the internee if s /he is given

project to accomplish independently beside normal daily schedule with co-workers. It will

help to increase confidence on the part of internee. Also, I would like to suggest that German

language should have been understood when students are having their internship at German

company. This will be of ease to both the parties.

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References Cited

Elbe-Obst, Vertriebsgescellschaft mbH. Since 1994. Company Bulletin.

Elbe-Obst company. Website: www.elbe-obst.de

Red Prince. Knackiger Typ crunchy bubby. Website: www.red-prince.de
http://www.elbe-obst.de/http://www.red-prince.de/http://www.red-prince.de/http://www.elbe-obst.de/

final rishi intenship

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