Fresh grapes in The Netherlands

Overall attractivity Per capita consumption of grapes Consciousness of health Size of imports Expected growth of imports Willingness to pay price premiums for sustainable grapes

Market size
In 2009, The Netherlands was the 14th largest consumer in the EU accounting for 0.4% of total EU consumption (Italy, France and Spain leading with 31%, 24% and 21% respectively). Though the market is relatively small, the growth is significant. In 2009, The Netherlands consumed 108 thousand tonnes of grapes1. Between 2005 and 2009 consumption increased by 50% per year. In comparison, EU consumption decreased by 1.5% per year. The growth was especially due to a large growth in 2006 and 2007. In the last three years consumption has dropped: by 12% (2008), 8.9% (2009) and 6.0% (2010)2. This is due to the economic crisis and its aftermath. Per capita consumption was 6.5 kilo in 2009. This is a rather high consumption grade compared to other Western European countries (the UK 3.5 and Belgium 6.6 kilo). In The Netherlands hardly any grapes are produced (136 tonnes in 2009), so it relies mostly on imports. In 2010, imports of table grapes accounted for 347 thousand tonnes, or 567 million in value. Despite being only the 14th largest consumer, The Netherlands is the largest importer in the EU accounting for 24% of total imported value. Imports increased by 5.2% per year between 2005 and 2010. In comparison, EU import decreased by 1.1%. Imports continued to grow in 2008 (+14%) but decreased in 2009 (-1.8%) and 2010 (-7.1%). Imports from developing countries (DCs) of table grapes accounted for 273 thousand tonnes, or 512 million in value. Imports from developing countries (DCs) of table grapes increased by 4.2% per year between 2005 and 2010. The Netherlands accounted for 50% of the imported volume from DCs making it the largest importing country from DCs. In total DCs account for 79% of Dutch table grape imports. Figure 1 shows the most important supplying countries of grapes to Belgium in 2008. Most table grapes come from South Africa (32%) and Chile (20%) followed by India (7.4%) and Brazil (5.4%). Especially Peru and Morocco have increased their share on the Dutch market significantly (+54 and +19% each year since 2005). Note that this picture also shows other grapes than table grapes.

1 Please note that consumption and production data is only available for grapes in general. Next to table grapes, this includes other grapes such as wine grapes. The grape is the most cultivated fruit around the world. An estimated 23% is table grapes (for fresh consumption), and 70-75% is processed, mainly for wine production. 2 Consumption for 2010 was calculated without considering production data. Production in The Netherlands is however low (136 tonnes in 2009). The growth figure for 2010 is therefore slightly higher.

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Fresh grapes in The Netherlands

Figure 1

Trade flows for fresh grapes to The Netherlands in 2008

Source: FAOSTAT (2011)

As Figure 2 shows, suppliers from DCs have the best opportunities marketing their products during the off-season in Europe (October - May). In these months about most of the grapes from outside the EU are bought. Most of these imports are being re-exported to other EU countries.
Dutch table grape imports during 2010

Figure 2

Source: Eurostat (2011)

The Netherlands is a large trader of grapes and re-exports most (52%) of the imported volume to other EU countries. Germany (42%) and Poland (10%) are important destinations. The port of Rotterdam was ranked year 2010 as the number 1 port in Europe. Over 160 million consumers (roughly one third of the population of the European Union) reside within a 300mile radius of this port. Therefore The Netherlands also provides opportunities for DC suppliers that want to supply grapes to other countries through The Netherlands. Dutch GDP is expected to grow by only 0.5% in 2012 and 1.3% in 2013 (Source: European Commission, 2011). Moreover, the role of The Netherlands in the EU grape trade makes

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Fresh grapes in The Netherlands

imports highly dependent on the development of other EU markets. Similar economic prospects exist in important export destinations such as France and Germany, respectively 0.6% and 0.8% in 2012. This implies that consumption and imports will show slow growth in coming years.

Market trends
The varieties can be categorized according to their fruit colours, ands shape into three types: white varieties (spherical and elongated), red varieties (spherical), and black varieties (spherical and rectangular). Overall, white seedless varieties are most popular with consumers in The Netherlands. The Netherlands is one of the front runners regarding consumer consciousness on sustainability. Organic and fair trade labels are widely available in supermarkets as well as specialized stores. The Dutch are also said to be the most willing consumers to pay for price premiums for organic and/or fair trade products. Organic and/or fair trade labelled grapes are rare, but increasingly popular. National sustainability labels are Max Havelaar (fair trade) and Eko Oke (organic). For the production of organic grapes added difficulties arise from the lengthy transport time. For instance, conventional grape packers can use sulphur pads and other permitted preharvest chemicals for preservation, but this is not allowed for organic grapes. Packing your grapes in consumer packing (punnets or clamshells) could be an added value to your produce (depending on your agreements with your buyer). Packaging of 500 grams is common in The Netherlands.

For more information on legislative and non-legislative requirements in the EU refer to CBIs Prices and price developments for off-season fruit.

Price developments
Between 2005 and 2010, prices of imported grapes increased by 2.5% each year, amounting to 1.66 per kilo in 2010. Dutch prices for grapes are higher than the EU average, which is 1.53. The increase was lower than the EU average (+3.9% per year). For DCs, the import price was 1.88 in 2010, after an increase of 4.3% annually. A current trend is that most fruit is bought in the supermarkets. The result is that more fruit is sold in quantity, but at lower prices. While the price reductions are not immediately passed on to the suppliers, when contracts are renegotiated, it will put suppliers under pressure to supply grapes at a lower price. These cost reductions are likely to move down the chain.
Fresh grape prices in The Netherlands 2011 week 14 Thompson 10x500 gr (India) Sugarone 4.5kilo (Egypt) Red globe 8.2 kilo (Peru) Red globe 4.5 kilo (Chili) Source: Freshplaza (2011) 13.33 8.50 12.70 6.89 week 26 10.75 15.13 12.38 7.67 2010 week 14 11.63 10.00 14.50 8.25 2009 week 26 n.a. 7.85 21.50 n.a. week 14 9.33 5.94 10.08 5.69 2008 week 26 n.a. 5.50 7.33 6.93

Table 1

Prices of grapes can fluctuate strongly during a year, as can be seen from the table below. All is very much depending on supply and demand. Prices are averages, based on Free on Truck quotations recorded in the Dutch market and can be taken as an indication for the European situation. The EU protects its fruit farmers by imposing tariffs on imports from Southern Hemisphere countries during peak EU production and supply periods. However, many DCs are waived from these import tariffs. Supermarkets specifically source grapes from the Southern Hemisphere to fill the winter/spring supply gap in order to offer year-round availability. Regarding import tariffs always ask customs for the right taric code for your product. For example, for grapes with the taric code 0806 1090 third countries should pay a 17.6% import

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Fresh grapes in The Netherlands

tariff. However, most DCs are waived from this such as the SPGE (e.g. Peru) and SPGA (e.g. Burkina Faso) countries. SPGL countries (e.g. Egypt) pay 14.1%. Imports of fresh fruit and vegetables are subject to the Entry Price System (EPS). It is a complex tariff system that provides protection to EU producers. In this system, fruits and vegetables imported at or over an established entry price are charged an ad valorem duty, varying proportionally to the difference between the products actual import price and the Entry Price (EP) (in the case of grapes this is between 476.00 and 546.00). If the EP is undercut by 8% or more, the maximum specific tariff (i.e., the maximum tariff equivalent (MTE)) is charged at an amount up to 80% of the EP. The Maximum Tariff Equivalent for grapes is 96.00. For grapes this is set from 21 July to 20 November. Fair trade grape suppliers are guaranteed a minimum price from retailers (from $ 0.88 FOB to $ 1.66 per kilo depending on quality, label and/or origin), but this is not the case for conventional suppliers who are subject to market prices. Premiums for fair trade grapes (and fair trade-organic) depend on supply, region, transport etc. but can range from $ 0.12 to $ 0.17 per kilo (FOB priced), paid to suppliers (Fair trade Labelling Organisation).

For more information on prices, refer to the CBIs module Prices and price developments for offseason fruit'.

Buyer requirements
The Netherlands follows EU legislation regarding the marketing of grapes and has not set any additional requirements. Non-legislative requirements regarding grapes and fruit in general are becoming stricter. Having your company GlobalGAP and/or HACCP certified is essential when supplying large retail chains. Especially for grapes there are high extra demands for MRL control, hardly any non-GlobalGAP is sold to Western European countries. The EU, thus The Netherlands, has committed to the Codex Alimentarius. The Grape Standard should be followed when exporting to Belgium. For more information refer to the website of list of standards (http://www.codexalimentarius.net/search/advanced.do?lang=en) and look for table grapes. There are three quality classes: Extra class, Class I and Class II. For example for Class I table grapes (the most demanded class) the following criteria apply: o The grapes must be firmly attached to the stalk and, as far as possible, have their bloom intact; o a slight defect in shape; o a slight defect in colouring; o very slight sun scorch affecting the skin only. Bruised or damaged grapes are highly susceptible to post harvest rots which easily spread to other fruits. Pre-packing your grapes will add value to your product and help keeping fruit good at the same time.

For more information on legislative and non-legislative requirements in the EU refer to CBIs Compliance with buyer requirements for off-season fruit.

Suitable trade channels

The harbour of Rotterdam is the main European harbour for re-exporting products around the EU. As an exporter from a DC you will generally not supply retailers directly. Your buyers will mostly be intermediaries (e.g. importers and agents). Because The Netherlands is an important trader there is a large number of importers active in The Netherlands. Some important Dutch grape importers are: o Olympic Fruit - http://www.olympicfruit.com/site/meet_olympic.html?LC=EN - importer of Blue, red and white grapes, with or without seeds; o Hag International - http://en.hage-international.nl/home - importer from various countries, serving supermarket chains and wholesalers in Western Europe, Eastern Europe and Russia;

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Fresh grapes in The Netherlands

Roveg Fruit - http://www.roveg.nl/english/index.php - grapes from South America and Africa; o Verdis Import - http://www.verdiimport.nl/engels/home.html- various species from South America, Asia and Africa; o Jaguar Fresh Company - http://www.jaguarfreshcompany.com/en/jaguar-the-freshcompany - seedless grapes from South America, Asia and Africa. There are also possibilities in the smaller (ethnic) segments of the market. Ethnic shops coexist alongside the large retailers and often use their own community to source products (often different or non-branded products) directly from their country of origin. Even though the market is smaller it may be an easier trade channel as there will be less cultural barriers between you and the EU buyer. For example, in The Netherlands there are large Turkish and Moroccan communities who often source from their home countries. o

Finding and approaching Dutch buyers

There are several large traders in The Netherlands that import and re-export imported grapes to other countries in the EU. The importers are often registered with trade associations and databases (see useful sources). To get into contact with them you can visit specialised trade fairs or contact them via phone or email. Make sure the importer you want to approach is looking for grapes and preferably is active already in your country or region. This will make it easier for him to personally inspect your facilities. By browsing their website you will learn a lot about the company. The Dutch are no-nonsense people. It is therefore recommended to approach possible buyers with a clear and convincing offer. For more information on Dutch business culture visit the website of Kwintessential (http://www.kwintessential.co.uk/resources/globaletiquette/netherlands.html).

For more information on finding possible trading partners refer to CBIs module Finding buyers' for fresh fruit & vegetables'.

Useful sources
Frugiventa - http://www.frugiventa.nl - Dutch fruit and vegetables trade association; Freshplaza - http://www.freshplaza.com - an independent news source for companies operating in the global fruit and vegetable sector; Innofresh - http://www.innofresh.nl, in Rotterdam, every two years, the next edition is programmed for 19-21 September 2011; Agf Info - http://www.agfinfo.nl/modules/smartsection/category.php?categoryid=86 - to find Dutch importers/exporters; Holland Horti Week 2011 - http://www.hortifair.nl - is the international trade fair for horticulture in Amsterdam RAI, 1-4 November 2011; AGF Detail (Retail) - http://www.agfdetail.nl - the most important potatoes, vegetables and fruit retailers trade fair in Expo Houten, next event is in 2012.

This survey was compiled for CBI by CREM B.V. in cooperation with Piet Schotel Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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