""

Required Report - public distribution

**Date:** 9/10/2003

**GAIN Report Number:** GR3019

JA3019

**Greece**

**Fresh Deciduous Fruit**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Ann Murphy

U.S. Embassy

**Prepared by:**

Stamatis Sekliziotis

**Report Highlights:**

Greek fresh apple production is estimated to be 17% lower than last
year, with larger reductions for red varieties than others. Pear
production will be 34% lower than last year's harvest due to April
frost.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Rome \[IT1\]

\[GR\]

#  

[Production 3](#production)

[Fresh Apples and Pears 3](#fresh-apples-and-pears)

[Fresh Table Grapes 4](#fresh-table-grapes)

[Market/Competitor Statements 5](#marketcompetitor-statements)

[Fresh Apples and Pears 5](#fresh-apples-and-pears-1)

[Table Grapes 6](#table-grapes)

[PS&D Table, Fresh Apples 7](#psd-table-fresh-apples)

[Export Trade Matrix, Fresh Apples 8](#export-trade-matrix-fresh-apples)

[Import Trade Matrix, Fresh Apples 9](#import-trade-matrix-fresh-apples)

[PS&D Table, Fresh Table Grapes 10](#psd-table-fresh-table-grapes)

[Export Trade Matrix, Fresh Table Grapes
11](#export-trade-matrix-fresh-table-grapes)

[Import Trade Matrix, Fresh Table Grapes
12](#import-trade-matrix-fresh-table-grapes)

[PS&D Table, Fresh Pears 13](#psd-table-fresh-pears)

[Export Trade Matrix, Fresh Pears 14](#export-trade-matrix-fresh-pears)

[Import Trade Matrix, Fresh Pears 15](#import-trade-matrix-fresh-pears)

#  

# Production

## Fresh Apples and Pears

As a result of the unexpected frost, which prevailed mostly in west
Macedonia (north of Greece) during the blooming stage, coupled with hail
during the late part of the season, the fresh apple production in Greece
for marketing year (MY) 2003/04 is expected to be 17% smaller compared
to a year earlier. The damage is more apparent in red varieties and the
poor production has led to higher prices in the fresh market.

In west Macedonia (the region most affected by frost), the unfavorable
weather conditions are expected to cut red apple variety production by
50%. Production of Granny Smith and Golden varieties is expected to
reach the same level as last year.

In Thessaly (central Greece), weather conditions were milder than in the
region of Macedonia and until early August, apple production was
estimated at the same level as 2002. The most important apple producing
area, the Municipality of Zagora, was expected for 2003 to have the
richest harvest of the last decade. Furthermore, it was expected to
recover from multiple and extended damage caused by extremely low
temperatures over last winter. Unfortunately an extreme hailstorm hit
the region, damaging the 2003 harvest and based on recent estimates,
reduced this year's crop by approximately 50%. This year the apple
harvest in Greece is late by ten days.

The products of Zagora have their own EU-protected name "Zagorin" and
denomination of origin, according to EU Regulation 1107/96. These apples
make up such a high percentage of domestic consumption that they affect
the price level of fresh apples in Greece. Furthermore, due to adverse
weather conditions in Greece in recent years, consumer prices for fresh
products have skyroketed. A detailed description of these developments
are given in GR 2021.

MY 2002/03 was unsatisfactory for farmers, traders and consumers.
Farmer's and trader's expectations were higher earlier in the year, but
due to low apple production in recent years and favorable developments
that took place in the trade sector in MY 2001/2002, lower output led to
higher farmer prices and correspondingly to higher consumer prices. All
these developments resulted in higher consumption of imported apples in
the Greek Market.

Recently, apples of Italian origin dramatically entered the Greek fresh
apple market through an extensive advertising campaign in the Central
Market of Athens and Thessaloniki. This caused anxiety to Greek traders
who realize that the future of Greek apple sector should focus on crop
restructuring, better certification of fresh products, improved quality,
introduction of more popular varieties and lower production costs.

Greek apples kept in refrigeration until February 1 of each year by
variety, are as follows:

  ------------------------- ---------------------- -----------------------
  **Variety**               **2/1/2003**           **2/1/2002**

  Red Delicious             34653                  18258

  Golden                    8781                   7043

  Granny Smith              15222                  4611

  Other varieties           3641                   4834
  ------------------------- ---------------------- -----------------------

The quantity of these stocks has almost doubled in MY2002/03 relative to
that of last year. This means that due to large quantities of imported
quantities of fresh apples, Greek apples will enter the fresh market
later, at the of the marketing period (July 2003) and some quantities
may be left to be utilized in other ways. Some will probably be exported
to Balkan countries at lower prices due to relatively lower quality.
These amounts do not appear in the attached PS&D. They are part of the
Fresh Consumption category. Withdrawals are within the 10% of the
marketable amounts allowed by EU regulations.

Due to the same adverse weather conditions which affected the 2003 apple
crop, pear production this year is estimated at 25,000 MT or 32.4% lower
than that harvested a year earlier. The reduction is most apparent in
the Greek variety named Kristalli. Due to frost that prevailed in April
2003, pears were hit hard by fire blight, known as Erwinia amylo-vora,
which forced the farmers to uproot some trees, a factor which
consequently led to a reduction of fresh pear output.

Due to labor intensive practices required by the pear crop, compared to
other deciduous fruit crops, pear production is less competitive in the
Greek Market and consequently the final market prices for pears are
higher. The supply of fresh pears in the Greek Market depends on
imports, mostly from Italy.

## Fresh Table Grapes

Unlike apples and pears, table grapes have not been affected by extreme
weather conditions this year. The volume of production is estimated to
reach last year's levels, and the quality of grapes is excellent. The
grape harvest began early due to high summer temperatures which
prevailed in the Mediterranean basin.

The Sultana variety appeared to recover from damage caused by bad
weather in recent years. In Crete, the most important sultana production
area of Greece, for both dried and table use, the 2003 output is
estimated at 30,000 MT. The region of Kavala (eastern Macedonia) is
expected to give a rich harvest of table grapes mostly due to more
plantings, which took place in recent years.

Reportedly, grape farmers applied modern cultivating techniques in order
to produce better quality products compared to previous years. According
to trade sources, introduction of new varieties in the sector of table
grapes will prolong the marketing period and under this new plan Greek
table grape exports to EU countries are expected to be enriched with
better quality and better priced products.

# Market/Competitor Statements

## Fresh Apples and Pears

According to the Greek Ministry of Agriculture, as of July 2003, 25,930
MT of fresh apples were exported compared to 16,392 MT (of which 159 MT
to EU countries), the same period of last year. Most of the exported
quantity were destined to Bulgaria (12,155 MT) and Albania (10,849 MT).

Exports of fresh pears have been completed and from the beginning of MY
2002/03, 215 MT have been exported compared to 914 MT last year. The
largest exported volume was destined mostly to Albania (126 MT).

In compliance with EU Reg.No. 1148/2001, which imposes compulsory
inspections for the normal marketing activity in the sector of fresh
fruits, the Greek Ministry of Agriculture in co-operation with other
Ministries signed a Common Ministerial decision pertaining to special
measures taken, in order to apply trade quality controls for fresh
products in the market. Anyone who markets or delivers fresh fruit in
the Greek Market should act in accordance to these rules.

In addition, marketing of fresh products should correspond to the EU
legislation relating to food safety issues, in order to avoid nitrate or
other agrochemical contamination of fresh produce. These regulations
apply to exported or imported products sold on the domestic market.
Sample controls are applied for exported and imported fresh products
between EU member countries, but all imports of fresh fruit are
inspected if they come from third countries. Inspections are also
applied to products marketed domestically and to fresh fruit which are
destined to the processing sector.

The Greek Ministry is about to apply a database, which will include all
traders of fresh fruit. All fresh products should be packed according to
their quality and their area of origin and the label must show all the
items previously mentioned including the name of the producer and the
trading firm.

All these developments in the sector of fresh fruit and vegetables are
expected to lead to an improvement of the traditional grocery sector.
Small grocery outlets are expected to be replaced by incorporated units
operating in a super market form or attached to already operating super
market chains. The perspective of this development finds a dissident
voice from Greek consumers who are used to buying fresh fruits and
vegetables in the popular open markets and/or in traditional groceries.
Large chains of modern super markets, on the other hand, are offering a
huge variety of fresh products packed according to their geographic
origin and prices are displayed accordingly.

The Ministry of Development is about to make some amendments to the EU
Reg.No 2323/95 pertaining the trade of fresh fruits and vegetables sold
in the open market. The Greek Government will implement these measures
to control extremely high consumer prices, which are noticed in the open
market for fresh fruits and vegetables. In order for this plan to
succeed, the GOG will obligate farmers to add their name and the area of
origin of their fresh product on the packing. Also the packing must be
marked with the wholesale price per kg as well as the number and the
date of the invoice to certify the transaction between the trader and
the farmer.

Traders and packers are finding this procedure difficult to apply and
insist that it will negatively affect domestic production. On the other
hand, imported products are sold in the Greek market without this kind
of label but only accompanied with an indicator, which distinguishes
them as imported products. According to traders, this measure may have a
negative impact on the promotion of Greek products, as traders will turn
to the imported ones in order to avoid the procedure described above.

According to the more efficient co-operatives, this measure does not
negatively affect the fresh fruit market. In fact, they believe that
this is a protective measure for the healthier operation of the Greek
market. Reportedly, traders of fresh fruit take advantage of consumer
preferences to sell fresh products under a fake label of their place of
origin. This phenomenon was noticed often with "Zagorin" apples, which
carry their own trade mark.

## Table Grapes

The U.K imports most of the Greek sultana production, which is carried
out in English pounds. The low exchange rate between the Euro and the
pound creates anxiety to the trade sector and farmers because of the
lower prices they are receiving for their products. In addition, the
entrance of cheaper imported grapes from Egypt and Brazil in the U.K
market will create a stiff competitive environment for Greece. According
to trade sources the German market seems to be more profitable for Greek
grapes.

Export activity of table grapes have just started. According to the
Greek Ministry of Agriculture as of 8/8/2003, 554 MT have been exported
(421 MT to EU countries).

Indicative grower prices are approximately 0.80 Euros/kg for the sultana
variety and 0.25-0.30 Euros/kg for the Victoria variety of table grapes.

The National Vineyard Land Tenure program has been finalized. By
utilizing EU funds, the Ministry of Agriculture provides that the right
to grow grapes can be transferred from one generation of growers to
another. This measure combined with the EU program for restructuring
vineyards and the EU third Support Framework, which provides incentives
for development and modernization of processing plants (wineries),
contributes to the improvement of the country's grape cultivation during
the same time the percentage of occupation in the viticulture sector is
increasing.

# PS&D Table, Fresh Apples

  -------------------- ---------- ---------- ---------- ---------- ------------ ----------
  PSD Table                                                                     

  Country              Greece                                                   

  Commodity            Fresh                                       (HA)(1000    
                       Apples                                      TREES)(MT)   

                       2002       Revised    2003       Estimate   2004         Forecast

                       USDA       Post       USDA       Post       USDA         Post
                       Official   Estimate   Official   Estimate   Official     Estimate
                       \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]      \[New\]

  Market Year Begin               07/2002               07/2003                 07/2004

  Area Planted         15800      16230      0          16236      0            16236

  Area Harvested       15500      15800      0          15940      0            15940

  Bearing Trees        6030       6058       0          6058       0            6058

  Non‑Bearing Trees    110        58         0          58         0            58

  Total Trees          6140       6116       0          6116       0            6116

  Commercial           211000     232000     0          190000     0            225000
  Production                                                                    

  Non‑Comm. Production 9000       3000       0          3000       0            5000

  TOTAL Production     220000     235000     0          193000     0            230000

  TOTAL Imports        15000      16000      0          24000      0            15000

  TOTAL SUPPLY         235000     251000     0          217000     0            245000

  Domestic Fresh       200000     206000     0          180000     0            210000
  Consump                                                                       

  Exports, Fresh Only  16000      26000      0          20000      0            19000

  For Processing       1000       1000       0          1200       0            1200

  Withdrawal From      18000      18000      0          15800      0            14800
  Market                                                                        

  TOTAL UTILIZATION    235000     251000     0          217000     0            245000
  -------------------- ---------- ---------- ---------- ---------- ------------ ----------

# Export Trade Matrix, Fresh Apples 

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Apples                        

  Time period                          Units:              MT

  Exports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Italy                208             Italy               21

  Portugal             587             Spain               57

  Other EU             150             Other EU            37

  \>Sub Total EU       945             \>Sub Total EU      115

  Albania              18274           Albania             7635

  Bulgaria             42716           Bulgaria            9280

  Romania              1157            Romania             260

                                                           

                                                           

                                                           

  Total for Others     63092                               17290

  Others not Listed    3049                                883

  Grand Total          66141                               18173
  -------------------- --------------- ------------------- ---------------

# Import Trade Matrix, Fresh Apples

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Apples                        

  Time period                          Units:              MT

  Imports for:         2001                                2002

  U.S.                 0               U.S.                202

  Others                               Others              

  Italy                11057           Italy               14446

  Germany              960             Germany             2627

  Holland              1035            Holland             803

  France               120             Spain               3661

  Other EU             1278            Other EU            1187

  \>Sub Total EU       14450           \>Sub Total EU      22724

  Chile                2989            Chile               1317

  S. Africa            694             Argentina           507

  Argentina            1825                                

                                                           

  Total for Others     19958                               24548

  Others not Listed    990                                 1736

  Grand Total          20948                               26486
  -------------------- --------------- ------------------- ---------------

# PS&D Table, Fresh Table Grapes

  -------------------- ---------- ---------- ---------- ---------- ---------- ----------
  PSD Table                                                                   

  Country              Greece                                                 

  Commodity            Fresh                                       (HA)(MT)   
                       Table                                                  
                       Grapes                                                 

                       2002       Revised    2003       Estimate   2004       Forecast

                       USDA       Post       USDA       Post       USDA       Post
                       Official   Estimate   Official   Estimate   Official   Estimate
                       \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  Market Year Begin               01/2003               01/2004               01/2005

  Area Planted         19500      19500      0          19500      0          19500

  Area Harvested       19500      19500      0          19500      0          19500

  Commercial           278000     278000     0          278000     0          290000
  Production                                                                  

  Non‑Comm. Production 36000      36000      0          36000      0          35000

  TOTAL Production     314000     314000     0          314000     0          325000

  TOTAL Imports        3000       3000       0          2500       0          2200

  TOTAL SUPPLY         317000     317000     0          316500     0          327200

  Domestic Fresh       152000     152000     0          149500     0          157200
  Consump                                                                     

  Exports, Fresh Only  115000     115000     0          117000     0          120000

  For Processing       50000      50000      0          50000      0          50000

  Withdrawal From      0          0          0          0          0          0
  Market                                                                      

  TOTAL UTILIZATION    317000     317000     0          316500     0          327200
  -------------------- ---------- ---------- ---------- ---------- ---------- ----------

# Export Trade Matrix, Fresh Table Grapes

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Table                         
                       Grapes                              

  Time period                          Units:              MT

  Exports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Holland              12733           Holland             6447

  Germany              35550           Germany             18706

  U.K.                 26611           U.K.                10278

  Other EU             2908            Other EU            369

  \>Sub Total EU       77802           \>Sub Total EU      35800

  Poland               22278           Poland              8489

  FYROM                3006            FYROM               2146

  Czechia              2852            Czechia             3227

  Romania              3039            Romania             1314

  Albania              1702            Albania             1516

  Total for Others     110679                              52492

  Others not Listed    6683                                4589

  Grand Total          117362                              57081
  -------------------- --------------- ------------------- ---------------

# Import Trade Matrix, Fresh Table Grapes

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Table                         
                       Grapes                              

  Time period                          Units:              MT

  Imports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Italy                686             Italy               772

  Germany              1220            Germany             43

  U.K.                 5824            Other EU            135

  Other EU             75              \>Sub Total EU      950

  \>Sub Total EU       7805            Argentina           13

  Argentina            22              Chile               80

  Chile                18              S. Africa           77

  S. Africa            66                                  

                                                           

                                                           

  Total for Others     7911                                1120

  Others not Listed    46                                  20

  Grand Total          7957                                1140
  -------------------- --------------- ------------------- ---------------

# PS&D Table, Fresh Pears

  -------------------- ---------- ---------- ---------- ---------- ------------ ----------
  PSD Table                                                                     

  Country              Greece                                                   

  Commodity            Fresh                                       (HA)(1000    
                       Pears                                       TREES)(MT)   

                       2002       Revised    2003       Estimate   2004         Forecast

                       USDA       Post       USDA       Post       USDA         Post
                       Official   Estimate   Official   Estimate   Official     Estimate
                       \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]      \[New\]

  Market Year Begin               07/2002               07/2003                 07/2004

  Area Planted         10500      9000       0          7500       0            7500

  Area Harvested       10500      9000       0          7500       0            7500

  Bearing Trees        3930       3930       0          3830       0            3830

  Non‑Bearing Trees    0          0          0          0          0            0

  Total Trees          3930       3930       0          3830       0            3830

  Commercial           23800      35700      0          24100      0            29400
  Production                                                                    

  Non‑Comm. Production 1200       1300       0          900        0            600

  TOTAL Production     25000      37000      0          25000      0            30000

  TOTAL Imports        29000      25000      0          45000      0            46000

  TOTAL SUPPLY         54000      62000      0          70000      0            76000

  Domestic Fresh       44500      55449      0          63985      0            70000
  Consump                                                                       

  Exports, Fresh Only  650        215        0          200        0            200

  For Processing       8500       6000       0          5500       0            5300

  Withdrawal From      350        336        0          315        0            500
  Market                                                                        

  TOTAL UTILIZATION    54000      62000      0          70000      0            76000
  -------------------- ---------- ---------- ---------- ---------- ------------ ----------

# Export Trade Matrix, Fresh Pears

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Pears                         

  Time period                          Units:              MT

  Exports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Spain                156             Germany             4

  Other EU             98              Other EU            5

  \>Sub Total EU       254             \>Sub Total EU      9

  Albania              661             Albania             322

  Bulgaria             328             Bulgaria            420

                                                           

  Total for Others     1243                                751

  Others not Listed    337                                 270

  Grand Total          1580                                1021
  -------------------- --------------- ------------------- ---------------

# Import Trade Matrix, Fresh Pears

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Greece                              

  Commodity            Fresh Pears                         

  Time period                          Units:              MT

  Imports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Spain                7553            Germany             9814

  Holland              267             Holland             447

  Italy                1069            Italy               9264

  Other EU             567             Other EU            556

  \>Sub Total EU       9456            \>Sub Total EU      20081

  S. Africa            1659            S. Africa           153

  Argentina            1022            Argentina           417

  Chile                95                                  

                                                           

                                                           

  Total for Others     12232                               20651

  Others not Listed    779                                 1491

  Grand Total          13011                               22142
  -------------------- --------------- ------------------- ---------------