iii a- the european union - apedaapeda.in/agriexchange/market profile/moa/cao/iii a- the european...

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INTRODUCTION

Agriculture, including crop and animal husbandry, fisheries, forestry and agro processing constitutes the very basis of socio economic lives of India. It is one of the world’s largest agrarian economies, as the agriculture sector contributed about 18% of the country’s GDP (during 2006-07), 10.7% of the total export in 2006-07 and also provides employment to around 58% of the total work force. Agriculture also plays a critical role as it is essential to meet not only the food and nutritional security to the people and provide livelihood and income in the rural areas, but also to meet the requirement of raw material / inputs for the agro based industries in the domestic front.

The total geographic area of the country is 328.7 m ha. extended over a large range of vertical and horizontal coordinates makes it to witness a wide variability in climatic conditions and varied range of soil characteristics.The diversified climatic and soil characteristics have helped the country in producing various types of fruits and vegetables, spices and other agricultural crops based on their suitability to the specific environment. This also gives the country opportunities to produce a wide range of varieties of a particular crop with specific characteristics and taste. India is the second largest producer of fruits and vegetables. Maximum production of ginger, turmeric and sesame takes place in India. India is also second largest producer of cotton in the world. However, India is still lagging behind in the productivity of many crops compared to the global scenario. A lot of effort is required for increasing the productivity, developing allied activities and building appropriate infrastructure in rural areas to be self-reliant in food and agricultural products as well as to generate surplus to facilitate more returns through export.

Government is giving lot of emphasis on agriculture sector for increasing the production and productivity of agriculture commodities for achieving an impressive growth in the agriculture front in the GDP. A number of new initiatives like Technology Mission for Integrated Development of Horticulture in the North Eastern States (TMNE), National Horticulture Mission (NHM), National Food Security Mission (NFSM), Macro management in Agriculture (MMA), Rastriya Krishi Vikash Yojana (RKVY), National Project on Organic Farming (NPOF), National Project on Management of Soil Health and Fertility (NPMSHF) etc. indicate the intensive approach in this direction. The success of these programmes will definitely lead to significant rise in agriculture production at the end of XI plan. The surplus production after meeting the domestic requirement will help to promote export and will have a great impact on Indian economy.

In a World Bank report submitted to the Agriculture Ministry, it has been highlighted that despite leading producer of fruits & vegetables in the world, India’s export is poor due to high delivery costs, fragmented supply chain and poor logistics with poor quality standards. India’s share in global export of vegetables remained at 1.7% and that of fruits at 0.5%. The inability to compete abroad presently may lead to the inability to compete at home in future as the multinational companies will be dominating the domestic market availing quality products at competitive prices from other countries.

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Country is also lacking in appropriate technology & infrastructure in many aspects of modern storage and shipping methods, post harvest handling, value addition etc. The situation is further restricted due to complicated export regulations and procedures. An exporter faces enormous difficulties to equip himself on various parameters of export like regulatory, quality standards, global export opportunities, tariffs on exports, production scenario & availability, present export trend etc. for developing gainful strategic approach in a competitive mode.

In view of above, Government of India, Ministry of Agriculture (Trade Division), sanctioned a project to NAFED entitled “Market Intelligence study of selected crops having export potential” at a total cost of 82.0 lakhs. The crops for the present study have been identified on the basis of trade volumes and importance of the commodity in relation to production. The selected crops are mango, grapes, pomegranates, litchi, pineapple, banana and aonla among fruits; tomato, green chillies, okra and onion among vegetables; ginger and turmeric among spices; and sesame, soyameal and cotton among commercial crops/products.

At present, India's export volumes of fruits and vegetables in general and other selected crops are 74, 69,086 tons (2006-07). The value of these exports in US dollar terms comes to 2.85 billion compared to 113.94 billion US dollars of world exports. This constitutes only 2.5% of world export value, whereas India's production is 10.9% of total world production for these specific crops.

The emphasis in this study has been given on the compilation of information on quality standards, permissible residue limits for various pesticides and fungicides in crops being studied, information on packing requirements, present exports trends, competing countries, opportunities existing for exports, present strengths, availability of infrastructure etc. This information at one place will help in promoting export in the countries / markets of GCC, EU, ASEAN, Australia, etc.

The ultimate objective is to establish a National database which can pool information from promotional agencies associated with export and import activities in selected countries/ markets for the access of different user agencies. A URL namely marketagri.com has been created which is providing relevant information to the producer and exporter so as to design the production programme in an appropriate manner.

Looking into the large set of information/content generated and to place it in a presentable form for the easy access of the user agencies, the report of the study “Market Intelligence study of selected crops having export potential” has been split in to four volumes namely Vol. I- Main report; Vol. II- Domestic Market Research; Vol. III – International Market Research- Opportunities, Analysis, etc. and Vol. IV – International Market Research – Trade Scenario and Specifications. The details of information provided in Volume III are given below:

The prime objective of the project “Market Intelligence study of selected crops having export potential “ is to find out export opportunities for Indian products in foreign markets. As data on market intelligence of foreign markets is not easily accessible, therefore

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foreign consultants were engaged to study the markets in GCC, EU, ASEAN, Australia, South Korea and China.

The consultants provided the information on following aspects:

♦♦♦♦ Import analysis – import data from importing countries in quantity, value and increase or decrease in demand.

♦♦♦♦ Values being realized by other exporting countries. ♦♦♦♦ Competing countries for Indian products. ♦♦♦♦ Market trends and opportunities.

The information thus gathered has been compiled in Volume III entitled “International Market Research – Opportunities, Analysis and Competitiveness. Since the information compiled was large, the volume III has been further split in four sections i.e. A, B, C and D, details of which are given below:

Details of information on Opportunities, Analysis and Competitiveness in Volume III of International Market Research

S.No. Section details

Countries covered Crops covered

1 III A European Union* (Netherlands, UK, Spain, Italy, France , Belgium and Germany)

Mangoes, grapes, pineapple, litchi, banana, green chilly, ginger, turmeric, sesame seeds and soyameal cake.

2 III B GCC countries (UAE, Saudi Arabia, Kuwait and Qatar)

Mango, grapes, banana, pineapple, grapes, litchi, tomato, onion, green chilly, ginger, turmeric, sesame seeds and soyameal cake.

3 III C ASEAN countries** (Indonesia, Malaysia, Singapore, Philippines and Thailand)

Mango, grapes, onion, green chilly, tomato, turmeric, sesame seeds, soyameal and cotton.

4 III D Australia Mangoes, chillies/pepper, turmeric, ginger and sesame seeds.

5 III D China and South Korea Turmeric, sesame seeds, soyameal and cotton.

*Information on banana and pineapple is not available in France and information on banana is not available in Germany ** Information on green chilly and tomato is not available in Philippines and green chilly in Thailand.

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The above information contained in Volume III comprising Opportunities, Analysis and Competitiveness of International Market Research, formed the basis of Export Potential projections in Chapter VI of the Main Report.

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THE EUROPEAN UNION A. MARKETS FOR FRESH FRUITS AND VEGETABLES 1. Market Trends and Opportunities 1.1. Consumption According to a CBI market report 77 million tonnes of fruits and 62 million tonnes of vegetables were consumed by the EU market in 2006. From 2002 to 2006 fruit consumption grew by 2.7 per cent and consumption of vegetables by about 1.5 per cent. Cyprus has the highest per capita consumption whereas Italy and Spain (40% of EU market) have the largest volume of consumption. These two countries also represent 55% in total production of fruits of 69 million tonnes and 42% in total production of vegetables of 61.4 million tonnes in EU. France, Germany and the UK are the other large markets for fresh fruits and vegetables in the EU. Table I - Consumption of fresh fruits and vegetables in selected EU markets In ‘000 Tonnes

FRUITS 2002 2004 2006 VEG. 2002 2004 2006

Total EU 74574 80427 76576 Total EU 61790 67262 61789 Italy 16026 18466 17945 Italy 12683 14969 13780

Spain 12932 14290 13578 Spain 7703 8216 7381

France 11902 12776 11280 France 6798 6869 6179

Germany 8339 7236 6641 Germany 6268 5848 5465

Greece 3924 3813 3953 Poland 4882 5480 5028

UK 3218 3377 3659 UK 4035 4243 4581

Poland 3564 3901 3605 Romania 3391 4153 3662

Netherlands 1154 1022 1475 Netherlands 1628 1804 1746

Belgium 793 926 824 Belgium 2500 2728 2388

Sources: FAOSTAT and EUROSTAT 2007 1.2 Opportunities and Threats

• Viability and profitability is more on supply of exotic and off-season, and added value products (ready to eat or process or use). Therefore, developing countries have opportunities for cost effective, innovative and unique items.

• Creating or adapting products that serve market segments (geographic, demographic and behavioral) and capitalize trends in consumption, trade and production.

• Germany, Spain, and Italy are saturated markets. Only certain market niches and product groups provide opportunity for growth. UK and France have relatively large scope of importing the most exotic items.

• Organic and fair-trade markets provide quickly growing niches although certification procedures might be complicated and costly.

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• Need for safety and quality certification is growing. All traders must comply with specific standards such as EurepGAP and BRC (British Retail Consortium).

• Certification requirements, Global GAP, which involve technical and managerial efforts and attract high cost.

• There is demand for high level of professionalism and economic large volume supply by consolidated buyers or multinationals.

• Stagnating or declining consumption with changing food habits • Relatively weak competitive product of developing countries due to increased

transportation costs.

• Rapid erosion of advantages of innovations • Fluctuations in production in developing countries and prices in the markets. • Advancements in technology enabling artificial production, prolongation of storage

life, and introduction of new species are also the reasons for decrease in the import needs in advanced countries.

• The EU plans to introduce a tariff of Euro 176 on imported bananas from ACP countries to protect European Bananas ( AGF 27-11-2007)

2. Import Analysis 2.1 Fresh Fruits In 2006 the EU imports of fresh fruits had a value of Euro 19 billion representing an increase of 20 per cent since 2002 (Volume increased by 16% to 25 million tonnes). Imports from developing countries amounted to Euro 7.1 billion (9.8 million tonnes). Germany, the UK, the Netherlands and France are the largest importers, together accounting more than 50 per cent of total import volume. Major suppliers are Spain (19% of total import into EU), the Netherlands (9%), Italy (9%), Belgium (7%) and France (5%). Major import items are banana, apples, grapes, and citrus fruits. Developing countries mainly supply exotics such as bananas (20%), pineapples and other exotic (9%), mangoes, dates, avocadoes, Lychees and off-season supply of grapes (10%), citrus and apples. These countries shared 37 per cent in total imports of EU market in 2006. South Africa supplies off-season temperate fruits and Costa Rica, Chile and Ecuador are the major suppliers of tropical fruits. 2.2 Fresh Vegetables Imports of fresh vegetables in the EU impressively grew by 35 per cent in value and 36 per cent in volume from 2002 to 2006. In 2006 the EU imports of fresh vegetables amounted to Euro 10.7 billion and 11.5 million tonnes. The developing countries represented 11 per cent in total import value and 10 per cent in total import volume. Spain and the Netherlands together accounted for 55 per cent of total import values of the EU in 2006. Tomatoes (25%), sweet peppers, cucumbers, lettuce, mushrooms, peas, beans, asparagus, eggplant, sweet corns, artichokes, courgettes are the major vegetable items imported into the EU markets. Morocco, Kenya, Turkey, Egypt, and Peru dominate market from developing countries. Import figures, major markets and sources of imports of selected fresh fruits and vegetables of the EU markets for 2005 are presented in table below:

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Table II - Imports of selected fruits and vegetables into the European market in 2005

SN Items Import of 2005 % Change over 2001

Major Importers Major Suppliers

Value in Euro Million

Qty in Thousand Tonnes

Value Qty. Share in % of Total

Share in % of Total of 2005

1 Bananas 3800

3961 in

2006

5,500 6300 in

2006

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3 Belgium 23, Germany 20, The UK 13, Italy 10,

Belgium 13, Germany 7, The Netherlands 5, France 3.2, Italy 2.3, Ecuador 17, Colombia 15, Costa Rica 11, Panama 4.9, Cameroon 4.8, Ivory Coast 3.4

2 Pineapples 733 960 64 72 Belgium 24, France 17, Italy 14, Germany 10, Spain 9,

The Netherlands 10, Belgium 10, Germany 5, France 5, Costa Rica 38, Ivory Coast 8, Ghana 6, Ecuador 3.6, Honduras 2.7

3 Grapes 1830 2019 in

2006

13 Italy 23, The Netherlands 14, Spain 8, Belgium 4.3, Germany 4.2, South Africa 12, Chile 9, Brazil 3.7, Turkey 2, Argentina 2

4 Mangoes.. 319 33 The Netherlands 18, France 7, Spain 4, Germany 2, Israel 9, Brazil 23, Peru 9, Pakistan 4.7, Ivory Coast 4.3

5 Lychees .. 56 -21 France 17, The Netherlands 14, Germany 2.4, Belgium 2.1, Madagascar 32, South Africa 9, Thailand 8, India 1.8

6 Tomatoes 2500 2600 in

2006

2300 2600 in

2006

31 14 Germany 30, the UK 22, France 15

The Netherlands 36, Spain 33, Belgium 6, Italy 5, France 4, Morocco 7, Turkey 1.5, Israel 1.1.

7 Sweet Peppers

1300 1400 in 2006

1000 1000 in 2006

23 40 Germany 31, France 11, The Netherlands 8

The Netherlands 37, Spain 35, Israel 7, Turkey 3.4, Morocco 2.3

8 Onions 373 -6.7

The Netherlands 31, Spain 18, France 7, Italy 7, Germany 6, New Zealand 6, Chile 2.8, Argentina 2.5, Egypt 1.9, Morocco 0.4, and India 0.3.

9 Garlic 204 14 Spain 37, the Netherlands 11, France 11, Italy 6, Germany 3.7, China 10, Argentina 9, Egypt 0.9, Thailand 0.7, and Turkey 0.7.

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3. Trade and Consumer’s Preference

3.1. Consumption Patterns

o New and Exotic Products: Since the 1960s new and exotic items developed through breeding are becoming common and popular.

o Throughout the Year Supply: Most of the fruits and vegetables are available throughout the year as countries in Southern Hemisphere have filled the supply gap during off-seasons in Europe.

o Regional Diversity: Consumption patterns vary across the region. Northern countries have a lower per capita consumption for historical and traditional reasons, compared to Southern Europe. Most of the newer members of the EU also consume relatively less fruits and vegetables.

o Demographic Diversity: Population is growing, albeit slowly (0.5% in 2005). Single person household is substantial and is very important market segment. Highest consumption is among people of old ages, high income and health conscious. These people are changing their life-style and food habits. Immigrants also consume more fruits and vegetables.

3.2. Consumption Trends

o Health Consciousness: Health trends created opportunities for new products,

such as: (a) small products in small in packages - mini cucumbers, mini sweet peppers, cherry tomatoes, etc. for snacks; (b) new fruits – pomegranate, mangosteen, Noni, etc.; (c ) new vegetables – Bimi (cross of broccoli and Chinese cabbage).

o Changing Life-style: Single people tend to eat less homemade food that led to increase in demand for convenient items such as pre-cut, -washed, scraped, - peeled, -cooked and -prepared. Apple and banana are relatively easy but others items require tedious and time taking processes to get ready before eating. These processes can be done in the country of origin and exported carefully introducing appropriate packaging system.

o Food Safety: Organic fruits and vegetables are the main categories of food items in the organic sector mainly in Germany, Sweden, Denmark, France and the UK. Social awareness has also led to increase demand for fair-trade certified products. Several fresh fruits have a fair-trade standard: banana, pineapple, mangoes, avocadoes and oranges.

o Choices: A remarkable market growth is noticed for exotic items like mango, papaya, passion fruit, avocado and other new fruits. Consumers have started appreciating new items and new tastes. Production and supply of Banana and pineapple are concentrated in large multinational companies. New suppliers in developing countries should seek new segments for clearly distinct products, for example star fruit, physalis, pitahaya, etc. that have decorative attributes also.

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B. MARKET FOR GINGER

1. Market trends and opportunities The demand for ginger is growing upwards in the European Union market. The import value of ginger in the European Union increased from US$ 28.5 million in 2003 to US $ 57.0 million in 2007. The quantity increased from 29,028 tons in 2003 to 40,742 tons in 2007. There was an increase of 99% in the value of the ginger imports between these years whereas the corresponding increase in the quantity was only 40%. This indicates that the unit price has increased substantially. China is the main source of import representing almost 36 per cent of the import requirements followed by Thailand 13% and India (10%). Table III - EU - Imports of ginger and leading suppliers Products/ Other Information

2003 Value in $Million Qty in 000Tons

2007 Value in $ Million Qty in 000 Tons

Value Change in% in 2007

Major Sources and Share in % and other information

Value Qty Value Qty Value Qty Ginger 28.5 29 57.0

40.7 99 40 China 36%, Thailand 13%, India

10%.

Import Growth in 2002-2006

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Average Annual Unit Price

USD 983 per ton in 2003 USD 1297 per ton in 2006 USD 1399 per ton in 2007

Average Price/Ton March 08

USD 1589 per ton

The average monthly prices fluctuated as below during November 2007 to March 2008 showing the seasonal variations.

Average Monthly Prices

0

0.5

1

1.5

2

2.5

3

3.5

1 2 3 4 5

Nov 07 to March 08

US

D p

er

To

n

European Union (EU 27)

'Netherlands

'United Kingdom

'Germany

'France

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Table IV- Imports of ginger in values, in USD Thousands

Importers Imported value in 2003

Imported value in 2004




European Union (EU 27) Aggregation 28,549 56,998 57,479 55,825 57,014 'United Kingdom 8,715 18,142 17,109 16,789 19,727

'Netherlands 6,579 16,950 14,100 13,709 14,709

'Germany 5,145 8,074 11,075 9,919 11,753

'France 1,616 3,400 3,661 3,271 3,253

'Italy 847 1,592 1,341 1,287 1,785

'Belgium 534 1,304 1,401 1,628 1,391

'Austria 669 951 1,126 1,197 1,217

'Sweden 534 1,029 1,170 1,134 1,209

'Ireland 351 665 622 760 759

'Finland 255 386 369 335 349

Table V- Imports of ginger in qty, in Tons

2003 2004 2005 2006 2007

Importers Imported quantity, Tons

Imported quantity, Tons




'European Union (EU 27) 29,028 35,134 36,752 43,056 40,742 'United Kingdom 11,517 13,369 14,415 15,982 15,903

'Netherlands 8,272 11,244 10,666 13,204 14,120

'Germany 3,112 3,547 4,289 4,364 5,041

'France 1,508 1,911 2,014 2,666 2,008

'Italy 798 932 968 1,008 1,248

'Belgium 459 637 713 836 667

'Sweden 310 440 407 466 543

'Austria 318 377 384 508 488

'Ireland 119 184 139 203 238

'Finland 125 140 129 131 134

'Lithuania 13 25 33 53 107

'Greece 48 62 45 70 73

'Estonia 37 27 40 34 49

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Table VI - Imports of ginger in 2006

Trade Indicators

Importers

Value imported in 2006, in USD thousand

Trade balance in 2006 in USD thousand

Quantity imported in tons, 2006

Unit value (USD/unit)

Annual growth in value between 2002-2006, %

Annual growth in quantity between 2002-2006, %


Share in world imports, %

'World 270,339 -13,764 387,294 698 18 6 -17 100

'EU 55,825 -34,585 43,056 1,297 20.65 'United Kingdom 16,789 -15,990 15,982 1,050 22 10 -2 6.21

'Netherlands 13,709 -278 13,204 1,038 26 13 -3 5.07

'Germany 9,919 -6,751 4,364 2,273 27 13 -10 3.67

'France 3,271 -2,597 2,666 1,227 24 15 -11 1.21

'Denmark 1,762 -1,649 1,049 1,680 7 -6 40 0.65

'Spain 1,720 -975 1,407 1,222 55 40 2 0.64

'Belgium 1,628 -571 836 1,947 33 12 16 0.6

'Italy 1,287 -1,145 1,008 1,277 14 4 -4 0.48

'Austria 1,197 -930 508 2,356 21 12 6 0.44

'Sweden 1,134 -766 466 2,433 33 11 -3 0.42

'Ireland 760 -735 203 3,744 25 10 22 0.28

'Poland 686 -528 389 1,763 32 16 -12 0.25

Table VII - Monthly imports of ginger in values, in USD Thousands

Importers Imported value in 2007-M11

Imported value in 2007-M12




'European Union (EU 27) Aggregation 6,348 6,431 6,936 7,610 7,264

'Netherlands 2,415 1,636 1,972 2,311 2,493 'United Kingdom 1,293 2,037 1,883 2,228 1,838

'Germany 696 1,172 1,149 998 1,090

'France 395 286 498 417 458

'Italy 365 237 172 290 296

'Denmark 69 77 153 233 200

'Belgium 199 146 129 99 130

'Spain 150 106 154 170 42 'Czech Republic 86 64 94 100 91

'Austria 117 93 149 206 108

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Table VIII- Monthly imports of ginger in Qty, in tons

2007-M11 2007-M12 2008-M01 2008-M02 2008-M03 Importers Imported

quantity Imported quantity

Imported quantity

Imported quantity

Imported quantity

'European Union (EU 27) Aggregation 4,066.30 3,665.80 4,197.90 5,190.90 4,570.40

'Netherlands 1,986.10 1,240.10 1,443.40 1,883.10 1,792 'United Kingdom 856.5 1,276.80 1,357.80 1,784.60 1,417.20

'Germany 261.7 459.2 415.6 379.9 366.7

'France 178.8 107.5 274.5 250.9 264.7

'Italy 195.2 108.4 114.1 187.3 211.5

'Denmark 20.7 26.1 81 33 127.2

'Belgium 102.3 68.3 60.8 51.4 69.2

'Spain 132.5 107.3 147.4 165.8 27 'Czech Republic 111 63.8 39.8 191.7 54.7

'Austria 27.1 23.1 59.1 64.5 41.3

Table IX- Average monthly prices of ginger imports in EU, from November 2007 to March 2008.

Importers 2007- M11 2007- M12 2008- M01 2008- M02 2008- M03

European Union 1561.124 1754.324 1652.255 1466.027 1589.358

'Netherlands 1215.951 1319.248 1366.219 1227.232 1391.183 'United Kingdom 1509.632 1595.395 1386.802 1248.459 1296.924

'Germany 2659.534 2552.265 2764.678 2627.007 2972.457

'France 2209.172 2660.465 1814.208 1662.017 1730.261

'Italy 1869.877 2186.347 1507.45 1548.318 1399.527

'Denmark 3333.333 2950.192 1888.889 7060.606 1572.327

'Belgium 1945.259 2137.628 2121.711 1926.07 1878.613

'Spain 1132.075 987.8844 1044.776 1025.332 1555.556 'Czech Republic 774.7748 1003.135 2361.809 521.6484 1663.62

'Austria 4317.343 4025.974 2521.151 3193.798 2615.012

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Table X - Exporters of Ginger to EU

Exporters Imported value in 2002





'World 26,651 28,549 56,998 57,479 55,825

'China 8,438 11,274 24,871 25,779 20,502

'Thailand 5,089 4,822 8,166 4,509 7,424

'India 1,429 1,355 2,324 4,459 5,594

'Netherlands 2,017 2,880 4,852 5,065 5,388

'Brazil 3,180 3,131 5,474 6,284 4,939

'Nigeria 1,079 651 4,137 2,919 2,267

'Germany 648 519 686 1,638 1,409 'United Kingdom 500 557 1,474 1,117 1,371

'Spain 87 61 422 520 1,158

'France 360 534 658 714 940

'Belgium 545 153 236 280 261

'Viet Nam 84 64 52 184 583

'Indonesia 155 173 196 213 548 'United States of America 166 61 243 111 163

Quantity data for partnering countries are not available.

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C. MARKET FOR TURMERIC POWDER 1. Market Trends and Opportunities

Imports of turmeric in the EU market have remained stable for the last five years. The import value of turmeric has gone up by 10% in five years and quantity increased by 8%. The major exporters to the EU market are India (70%), Netherlands (8%) and Brazil (7%). The annual average growth rates between the year 2002 and 2006 in terms of value and in quantity are 15% and 9% respectively. The unit price in the year 2003 was US $ 1,246 per ton which has increased nominally to US $ 1,268 per ton in 2006. Table I- Import of turmeric in European Union Products/ Other Information

2003 Value in $’000 Qty in 000Tons




Value Qty Value Qty Value Qty Turmeric 9,967 7,996 11,016 8,684 10% 8% Within EU

United Kingdom (28%), Germany (17%), Netherlands (7.5%) All partner countries India (70%), Netherlands (8%), Brazil (7%)

Import Growth rate in 2002-2006

15% 9%


US $ 1246 per ton in 2003 US $ 1297 per ton in 2004 US $ 1236 per ton in 2005 US $ 1268 per ton in 2006

2. Import Analysis

As per the available data, EU Imported US $ 11 million worth of turmeric in 2006 that represent an incline in import value by 4% per cent over the year 2005. The value represents 19.03 per cent of the total world imports of turmeric. The quantity imported by the EU countries in year 2006 stands at 8,684 tons which represents the 12.8% of the world quantity imports of turmeric. Record shows that the top exporters of turmeric to the EU market are India, Netherlands, United Kingdom and Germany. Annual import growth rate of turmeric into world recorded at 15% in value and 9% in volume for the period of 5 years from 2002 and 2006. Average unit price of imported turmeric imported into the EU recorded at US $1,268 per ton in 2006. EU unit price is higher than the world average unit price of US $ 854 per ton. From other part of the world the major exporter to EU of turmeric is India and Brazil. India itself covers 70% of total imports of EU. India’s export to EU decreased from 80% in 2002

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to 70% in 2006. After India, Netherlands and Brazil are the major exporter to EU. Brazil covers 7% of total EU market of turmeric powder.

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Table II - Imports of turmeric from 2003 -2007 in Value USD '000

Importers Imported value in 2003





'World 40,726 47,340 57,201 57,941 'European Union 9,967 10,697 10,575 11,016 8,270

'UK 3,101 3,310 2,948 2,970 3,268 'Germany 1,574 1,663 1,709 2,422 2,110

'France 993 1,102 1,141 1,062 1,548

'Belgium 1,052 1,033 540 514 644

'Sweden 184 200 196 196 223

'Austria 138 159 191 188 192

'Ireland 30 36 55 73 151

'Estonia 31 30 31 41 58

'Lithuania 18 23 29 45 39

'Romania 16 18 20 22 31

'Latvia 4 4 6 7 6

'Bulgaria 6 11 4 16

'Cyprus 5 12 14 12 'Czech Republic 59 81 103 62

'Denmark 183 224 253 242

'Finland 32 71 70 71

'Greece 46 53 34 52

'Hungary 74 52 74 66

'Italy 167 184 202 196

'Luxembourg 3 5 4 15

TableIII- Imports of turmeric from 2003 -2007 in Quantity in Tons

Importers 2003 2004 2005 2006 2007 'World 51,435 54,354 71,469 67,854 'European Union 7,996 8,244 8,554 8,684 7,756 'UK 2,770 2,912 2,638 2,481 2,591 'Netherlands 1,290 1,364 1,543 1,681 1,699 'Germany 1,112 1,144 1,181 1,557 1,507 'France 799 920 827 881 992 'Belgium 579 478 390 316 351

'Italy 109 116 111 101 150 'Austria 98 93 113 125 129 'Sweden 104 111 111 119 123 'Greece 42 43 28 45 62 'Estonia 19 17 18 24 36 'Finland 15 25 22 26 35 'Ireland 8 14 21 26 35 'Lithuania 15 17 21 29 24

'Romania 8 8 10 12 13

'Cyprus 5 6 9 4 4

'Slovenia 5 4 4 5 3

'Latvia 2 0 4 3 2

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Table IV- Imports of turmeric in 2006

Importers



Quantity imported in 2006 in Tons






'World 57,824 -3,702 67,713 854 15 9 0 100

' 11,006 -7,030 8,679 1,268 19.03 'United Kingdom 2,970 -2,300 2,481 1,197 8 1 1 5.14

'Germany 2,422 -1,804 1,557 1,556 16 5 42 4.19

'Netherlands 1,618 52 1,681 963 5 2 4 2.8

'France 1,062 -998 881 1,205 12 4 -7 1.84

'Poland 598 -454 497 1,203 24 13 7 1.03

'Belgium 514 -13 316 1,627 13 9 -5 0.89

'Spain 405 -331 445 910 31 28 -44 0.7

'Denmark 242 -227 164 1,476 14 1 -4 0.42

'Sweden 196 -76 119 1,647 5 3 0 0.34

'Italy 196 -192 101 1,941 12 3 -3 0.34

'Austria 188 -113 125 1,504 10 4 -2 0.33

'Ireland 73 -73 26 2,808 30 31 33 0.13

'Finland 71 -71 26 2,731 22 4 1 0.12

'Hungary 66 -66 29 2,276 -5 -17 -11 0.11 'Czech Republic 62 -62 43 1,442 6 4 -40 0.11

'Slovakia 55 -55 34 1,618 6 6 -13 0.1

'Greece 52 -52 45 1,156 11 6 53 0.09

'Portugal 51 -51 14 3,643 1 -24 132 0.09

'Lithuania 45 -45 29 1,552 34 21 55 0.08

'Estonia 41 -20 24 1,708 22 21 32 0.07

'Romania 22 -22 12 1,833 12 17 10 0.04

'Bulgaria 16 -16 20 800 3 17 300 0.03

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Table V - Imports of turmeric from 2002 -2006 in Value by partner countries USD '000






'World 6,706 9,967 10,697 10,575 11,016

'India 5,429 6,995 7,883 7,761 7,664

'Netherlands 355 712 927 980 901

'Brazil 1 135 111 179 766

'France 160 889 655 172 336 'United Kingdom 122 181 199 280 315

'Germany 163 232 197 252 219

'Indonesia 56 256 28 218 92

'Belgium 38 86 136 78 84

'Sweden 23 25 75 90 79

'Sri Lanka 47 23 7 19 57

'Peru 63 83 115 214 55 'United States of America 14 15 2 5 51

'China 61 50 119 63 48

'Austria 2 5 14 33 37

'Viet Nam 1 2 6 1 34

'Poland 1 0 21 25 34

'Morocco 0 5 4 0 33

'Spain 3 15 46 36 30 'Iran (Islamic Republic of) 1 0 3 15 22

'Madagascar 9 23 35 8 20 'Hong Kong (SARC) 0 0 0 0 19

19

D. MARKET FOR SESAMUM SEEDS 1. Market Trends and Opportunities Imports of sesamum seeds in EU region have decreased in the last five years. The import value of sesamum seeds has gone up by 27% in five year whereas quantity has decreased by 1%. The major exporter to EU region for Sesamum seeds are India (46%), Germany Sudan (9%) and Netherlands (9%). The annual growth rates in value and in quantity are 22% and 12% respectively. The unit price in the year 2003 was US $ 886 per ton which has increased to US $ 1141 per ton in 2006.

Table I - Import of sesamum seeds in European Union Products/ Other Information





Value Qty Value Qty Value Qty Sesamum Seeds

108,375 122,206 138,093 121,053 27% -1% India (46%), Germany (22%), Greece (17%), Netherlands (9%), Sudan (9%)

Import Growth rate in 2002-2006

22% 12%



2. Import Analysis The EU Imported US $ 138.1 million worth of sesamum seeds in 2006 that represent a decline in import value by 2.6% per cent over the year 2005. The value represents 13.79 per cent of the total world imports of sesamum seeds. The quantity imported by the EU countries in year 2006 stands at 121,053 tons which represents the 11% of the world quantity imports of sesamum seeds. Record shows that the top importer of sesamum seeds in EU are, Germany (22%), Greece (17%), Netherlands (13%) and France (7%) and United Kingdom (7.6%). Annual import growth rate of sesamum seeds into world recorded at 22% in value and 12% in volume for the period of 5 years from 2002 and 2006. Average unit price of imported sesamum seeds recorded at US $1,141 per ton in 2006. EU unit price is higher than the world average unit price of US $ 879. From other part of the world the major exporter to EU in sesamum seeds is India and Sudan. India itself covers 46% of total imports of EU in the year 2006. India export to EU increased from 38% in 2002 to 46% in 2006. After India, Sudan is the major exporter to EU. Sudan covers the 9% of total EU market of sesamum seeds.

20

Table II- Imports of sesamum seeds from 2003 -2007 in Value in USD '000 Importers 2003 2004 2005 2006 2007

'World 612,516 862,012 863,062 1,001,281

'European Union (EU 27) 108,375 148,536 141,829 138,093 74,382

'Germany 17,384 29,875 31,318 30,361 35,279

'France 6,765 9,402 10,951 10,729 12,155

'United Kingdom 6,833 10,960 10,448 10,562 10,277

'Austria 2,523 3,636 3,708 4,285 5,207

'Belgium 2,196 4,713 4,733 3,375 3,875

'Romania 391 1,356 1,338 1,739 3,226

'Sweden 2,147 3,013 3,137 3,155 2,795

'Lithuania 193 362 339 436 545

'Ireland 437 369 376 467 539

'Latvia 175 245 218 255 323

'Estonia 101 89 248 334 161

'Bulgaria 657 699 767 580

'Cyprus 1,334 1,925 2,077 1,948

'Czech Republic 914 1,688 1,217 1,568

'Denmark 1,562 2,144 2,488 2,258

'Finland 605 987 891 677

'Greece 18,833 23,784 22,464 23,743

'Hungary 634 1,011 1,062 1,000

'Italy 3,497 5,132 5,892 5,730

'Luxembourg 30 47 43 26

'Malta 58 141 120 158

'Netherlands 28,996 27,210 21,135 17,929

'Poland 7,574 13,110 10,931 10,357

Table III - Imports of sesamum seeds from 2003 -2007 in Quantity in Tons Importers 2003 2004 2005 2006 2007

'World 0 924,221 968,037 1,138,807 'European Union 122,206 124,989 122,617 121,053 109,510 'Greece 21,703 23,498 22,141 24,571 29,263 'Germany 18,213 24,103 26,351 26,139 27,486 'Netherlands 40,855 24,852 20,359 17,995 17,886 'France 5,793 6,478 7,597 7,544 8,033 'United Kingdom 5,932 7,788 7,564 7,998 7,213 'Italy 3,989 4,538 5,346 5,619 5,666 'Austria 2,257 2,916 2,833 3,447 3,667

'Belgium 1,997 3,657 3,966 2,518 2,657 'Romania 564 1,209 1,167 1,640 2,101 'Sweden 1,792 1,873 2,326 2,447 1,872 'Cyprus 1,521 1,683 1,933 1,920 1,802 'Finland 424 592 530 435 558 'Lithuania 200 309 299 428 430 'Ireland 373 288 278 348 319 'Latvia 172 183 172 222 241 'Slovenia 134 148 157 130 215

21

Table IV- Imports of sesamum seeds in 2006

Exporters









'World 1,001,163 -100,627 1,138,530 879 22 12 14 100

' 138,093 -103,623 121,053 1,141 13.79

'Germany 30,361 -26,010 26,139 1,162 20 9 -3 3.03

'Greece 23,743 -20,652 24,571 966 13 3 6 2.37

'Netherlands 17,929 1,152 17,995 996 -4 -15 -15 1.79

'France 10,729 -10,125 7,544 1,422 21 12 -2 1.07

'UK 10,562 -8,811 7,998 1,321 16 7 1 1.05

'Poland 10,357 -10,132 8,270 1,252 20 4 -5 1.03

'Italy 5,730 -5,594 5,619 1,020 15 4 -3 0.57

'Spain 5,644 -4,949 3,922 1,439 15 5 12 0.56

'Austria 4,285 -3,498 3,447 1,243 21 11 16 0.43

'Belgium 3,375 -1,852 2,518 1,340 27 17 -29 0.34

'Sweden 3,155 -1,879 2,447 1,289 9 1 1 0.32

'Denmark 2,258 -2,170 1,478 1,528 14 3 -9 0.23

'Cyprus 1,948 -1,948 1,920 1,015 14 1 -6 0.19

'Romania 1,739 -1,729 1,640 1,060 66 36 30 0.17

'Czech R 1,568 -1,154 1,414 1,109 20 8 29 0.16

'Hungary 1,000 -1,000 798 1,253 14 6 -6 0.1

'Finland 677 -677 435 1,556 12 6 -24 0.07

'Bulgaria 580 -524 717 809 16 13 -24 0.06

'Ireland 467 -467 348 1,342 8 1 24 0.05

'Slovakia 445 -429 379 1,174 12 0 -10 0.04

'Lithuania 436 -182 428 1,019 34 25 29 0.04

22

Table V - Imports of sesamum seeds by partner countries USD '000 Exporters 2002 2003 2004 2005 2006

'World 84,650 108,375 148,536 141,829 138,093 'India 32,226 40,949 69,731 62,394 63,640 'Sudan 15,760 20,131 16,588 8,301 12,460 'Netherlands 8,021 10,913 16,031 11,536 12,362 'Guatemala 5,511 6,525 9,139 9,661 8,296 'Ethiopia 3,240 7,400 4,320 11,446 5,665 'Paraguay 380 620 2,623 6,183 4,599 'Germany 2,014 2,782 3,519 3,204 3,802 'Venezuela 855 926 2,379 2,205 3,218 'Mexico 2,232 2,638 3,132 2,415 3,005 'Turkey 2,270 2,102 2,693 2,215 2,899 'United Kingdom 1,484 1,559 2,018 1,644 2,331 'Uganda 228 491 553 1,323 1,636 'Nicaragua 138 108 170 762 1,243 'Nigeria 333 212 1,216 1,811 1,037 'Sweden 472 446 498 771 1,017 'Egypt 874 740 1,533 1,432 962 'China 663 1,662 1,147 1,026 904 'Pakistan 958 1,015 1,031 3,421 801

23

E. MARKET FOR SOYA-BEAN CAKE 1. Market Trends and Opportunities Imports of Soya-bean cake into the EU market have remained constant in the last five years. The value of Soya-bean cake has gone up by 11% in five year and quantity grew by 7%. The major exporters to EU market are Argentina (49%) and Brazil (28%). Inside EU the major importers are France, Spain and Germany. The annual growth rates in value and in quantity in world are 9% and 6% respectively. The unit price in the year 2003 was US $ 226 per ton which has not increased much in 2006 by US $ 1141 per ton.

Table I- Import of soya-bean cake in European Union Products/ Other Information

2003 Value in $ million Qty in 000Tons

2006 Value in $ million Qty in 000Tons



Value Qty Value Qty Value Qty Soya-bean cake 5,650 24,950 6,289 26,836 11% 7% Inside EU importers

France (15%) Spain (13%) Germany (11%) Outside EU exporters Argentina (49%) Brazil (28%)

Import Growth rate in 2002-2006 (In world)

9% 6%



2. Import Analysis As per the available data, the EU Imported US$ 6,289 million worth of Soya meals in 2006 that represents a decline in import value by 1.08% per cent over the year 2005. The value represents 49.61 per cent of the total world imports of Soya-bean cake. Record shows that the top importers of Soya-bean cake in EU are France (15%), Spain (13%), Germany (11), Netherlands (10%), and Italy (8.8%). Annual import growth rate of Soya meals in world recorded at 9% in value and 6% in volume for the period of 5 years during 2002 and 2006. Average unit price of imported Soya meals recorded at US $ 234 per ton in 2006. The quantity imported by the EU countries in year 2006 stands at 26.8 million tons which represents the 49.56 % of the world quantity imports of Soya meals. The unit price of EU is similar to the world average unit price. The major exporters to EU from outside the EU are Argentina, Brazil and United States of America. Argentina covers 49% of total imports and Brazil covers 28% of EU market. .

24

Table II - Imports of soya meals from 2003 -2007 in Value USD '000 Importers 2003 2004 2005 2006 2007

'World 10,441,309 13,336,897 12,488,140 12,676,833 'European Union (EU 27) 5,649,550 6,942,425 6,358,167 6,289,046 3,598,571

'France 1,038,777 1,122,902 1,053,010 946,408 1,244,165

'Germany 540,101 718,693 677,149 706,838 892,449

'United Kingdom 420,375 477,170 424,655 451,143 623,947

'Belgium 300,415 371,423 332,123 287,979 383,961

'Austria 137,444 137,414 118,783 112,419 140,083

'Ireland 82,562 86,895 107,105 86,975 96,368

'Sweden 74,003 82,875 68,942 67,443 79,226

'Romania 23,608 33,926 24,487 21,713 73,989

'Lithuania 21,788 23,628 25,400 28,535 35,563

'Latvia 7,360 9,445 11,128 17,723 23,395

'Estonia 6,738 9,388 5,342 5,458 5,425

'Bulgaria 19,161 25,802 31,436 37,767

'Cyprus 28,186 36,214 30,267 24,952

'Czech Republic 132,703 167,904 149,038 154,248

'Denmark 331,016 433,982 378,648 372,082

'Finland 22,882 26,392 37,221 36,644

'Greece 63,426 103,719 75,982 87,488

'Hungary 189,482 201,555 149,873 182,280

Table III - Imports of soya meals from 2003 -2007 in Quantity in Tons Importers 2003 2004 2005 2006 2007

'World 45,100,356 47,613,560 51,452,728 54,146,560 European Union 27 24,949,746 25,858,754 27,240,803 26,836,230 19,187,375

'France 4,709,778 4,244,722 4,464,359 4,094,231 4,288,476

'Germany 2,583,690 2,782,042 2,960,244 3,135,092 3,193,833

'Netherlands 2,442,308 2,616,647 3,057,095 2,959,032 2,966,738

'Italy 2,899,534 2,702,933 2,464,989 2,507,756 2,628,771 'United Kingdom 1,816,399 1,778,740 1,660,054 1,834,051 2,096,504

'Belgium 1,366,961 1,369,537 1,395,424 1,228,850 1,330,874

'Slovenia 127,518 110,083 348,198 293,823 620,125

'Austria 605,328 483,486 499,954 463,177 450,673

'Greece 254,311 319,351 287,455 358,964 358,825

'Ireland 346,073 307,876 433,789 357,127 319,386

'Sweden 332,321 280,645 267,492 244,425 251,063

'Romania 99,194 118,109 88,133 81,554 217,038

'Finland 87,228 80,331 132,186 130,089 136,681

'Cyprus 118,323 116,367 118,108 106,845 125,303

'Lithuania 88,527 79,753 100,554 113,752 113,077

'Latvia 31,076 33,036 43,718 71,592 73,286

'Estonia 27,468 31,508 21,188 21,119 16,722

25

Table IV- Imports of soya meals in 2006

Exporters









'World 12,676,808 -1,286,663 54,146,532 234 9 6 2 100

' 6,289,046 -4,581,243 26,836,230 234 49.61

'France 946,408 -914,893 4,094,231 231 1 -2 -10 7.47

'Spain 832,172 -781,582 3,861,243 216 12 9 8 6.56

'Germany 706,838 -384,112 3,135,092 225 10 5 4 5.58

'Netherlands 654,163 179,827 2,959,032 221 13 75 -4 5.16

'Italy 554,090 -509,079 2,507,756 221 -1 -5 1 4.37

'Poland 461,138 -458,995 1,462,781 315 12 3 2 3.64

'United Kingdom 451,143 -425,808 1,834,051 246 9 4 6 3.56

'Denmark 372,082 -350,160 1,727,973 215 5 11 -2 2.94

'Belgium 287,979 -63,910 1,228,850 234 1 -4 -13 2.27

'Hungary 182,280 -174,309 673,421 271 -2 -8 22 1.44

'Czech Republic 154,248 -153,496 617,292 250 5 2 3 1.22

'Austria 112,419 -103,715 463,177 243 -3 -8 -5 0.89

'Greece 87,488 -71,986 358,964 244 14 12 15 0.69

'Ireland 86,975 -83,862 357,127 244 4 3 -19 0.69

'Slovenia 72,281 -8,215 293,823 246 33 32 -18 0.57

'Sweden 67,443 -67,260 244,425 276 -2 -9 -2 0.53

'Slovakia 47,184 -47,126 174,277 271 -1 -6 19 0.37

'Bulgaria 37,767 -37,764 141,461 267 22 15 20 0.3

'Finland 36,644 -36,644 130,089 282 15 10 -2 0.29

26

Table V- Imports of soya meals from 2003 – 2007 in Value by partner countries USD '000






'World 4,972,699 5,649,550 6,942,425 6,358,167 6,289,046

'Argentina 1,846,547 2,212,897 2,719,320 2,634,056 3,110,343

'Brazil 1,848,451 2,116,889 2,676,796 2,264,434 1,761,101

'Netherlands 509,402 578,508 746,808 690,870 623,802

'Germany 319,653 320,548 382,577 336,067 295,529

'Belgium 180,778 188,478 150,926 150,005 134,495

'Slovenia 0 0 0 2,212 77,142

'Italy 52,007 53,143 46,421 33,591 42,814

'Norway 26,457 29,625 34,261 38,997 37,671

'Denmark 10,807 12,600 21,166 19,628 32,111

'France 13,733 12,179 8,942 23,479 22,460

'Spain 14,547 15,337 13,088 24,744 21,597

'Portugal 8,195 7,579 874 333 17,130

'United States of America 70,157 22,434 8,453 29,429 16,118

'Romania 2,444 2,115 50,996 21,448 13,407

'Austria 3,951 8,306 11,003 12,743 12,288

'Slovakia 0 0 350 883 8,306

'Greece 8,400 9,676 14,107 8,339 7,718

'British Virgin Islands 0 0 13,471 10,526 6,157

'United Kingdom 2,852 3,973 1,855 3,005 6,035

'Hungary 673 427 3,654 9,800 5,920

'Ireland 5,381 7,126 6,185 7,429 4,610

'Finland 59 53 62 3,660 4,170

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