Required Report - public distribution

**Date:** 08/30/2004

**GAIN Report Number:** PL4030

PL4030

**Poland**

**Fresh Deciduous Fruit**

**Apples and Concentrated Apple Juice**

**2004**

**Approved by:**

![](media/image1.wmf)Wayne Molstad, Agricultural Counselor

U.S. Embassy

**Prepared by:**

N.Koniuszewska, Ag. Specialist; C. Kastanek, Intern; W. Molstad, Ag.
Counselor

**Report Highlights:**

MY2004/2005 apple production is estimated to be similar to that of MY
2003/04 reaching 2.4 million tons. Concentrated apple juice production
will also be similar although the export value may drop by 20 percent
due to higher world apple and CAJ supplies. As a new EU member state,
Polish apple producers will receive per hectare subsidies. Producers and
processors, when eligible, can also receive EU co-financing funds for
investments.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Warsaw \[PL1\]

\[PL\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 4](#trade)

[Policy 4](#policy)

[Marketing 5](#marketing)

[Tariffs 5](#tariffs)

[Poland Import Duty Rates after EU Accession
5](#poland-import-duty-rates-after-eu-accession)

[Poland Import Duty Rates before EU Accession
8](#poland-import-duty-rates-before-eu-accession)

[Poland's situation after the EU accession
9](#polands-situation-after-the-eu-accession)

[Fresh Apples, PSD 10](#fresh-apples-psd)

[Fresh Apples, Exports 11](#fresh-apples-exports)

[Fresh Apples, Imports 12](#fresh-apples-imports)

[Concentrated Apple Juice, PSD 13](#concentrated-apple-juice-psd)

[Concentrated Apple Juice, Exports
14](#concentrated-apple-juice-exports)

[Concentrated Apple Juice, Imports
15](#concentrated-apple-juice-imports)

# Executive Summary

Despite a cool wet flowering period, apple production is projected to
remain high in CY 2004 due partially to a mild winter. This large crop
will stimulate high concentrated apple juice (CAJ) production. Final
apple production in CY 2003 was 3 percent above CY 2002 production.

MY 2003/2004 apple exports were slightly lower than in the previous
season due to an increase in world CY 2003 production. Fresh apple
exports are expected to continue to gradually decrease from the previous
year due to high apple production in the European Union, Brazil,
Thailand, United States and China. Imports were much higher in MY
2003/2004 than in the previous season due to an increase in world
production as well as an increase in apple processing in Poland. Apple
processing is expected to continue to expand leading to projected larger
imports in MY 2004/2005. New to Poland EU agricultural/rural support
funds are contributing financial assistance to fruit processing
companies.

Polish MY 2003/2004 CAJ exports earned higher than normal profits
because of lower worldwide CAJ production yet stable demand. MY
2004/2005 CAJ export quantities are expected to be virtually the same as
in MY 2003/2004 but profits are expected to decline because of higher
anticipated world CAJ production.

# Production

#### Apples:

According to Government of Poland (GoP) official data, CY 2003 apple
production of 2.43 million tons was up 12% from CY 2002. The average
price that farmers received for industrial and fresh consumption apples
in MY 2003/2004 was PLN 0.60 (US\$ 0.17) per kilogram. This price did
not cover their production costs of PLN 0.66-0.7 (US\$ 0.18-0.20) per
kilogram. Nevertheless, large producers with storage facilities earned
more since they were able to store their apples for periodic market
sales up through May-June 2004.

A cool and wet spring caused little damage to the blossoms, and the
winter was mild leaving very little damage. Therefore, the Institute of
Rural Economics estimates that CY 2004 apple production will be down
very slightly from in CY 2003 and will reach 2.4 million tons.

Production of all varieties of apples (excluding McIntosh) increased in
commercial orchards. The main varieties in Poland are Cortland,
Champion, Idared and Lobo.

#### Concentrated Apple Juice

It is estimated that concentrated apple juice (CAJ) production in MY
2003/2004 was approximately 220,000 metric tons compared to 215,000 of
MY 2002/2003. There were 1.6 million tons of apples processed, almost
300,000 tons more than in the previous season. In MY 2002/2003 and MY
2003/2004 CAJ represented 13 percent of total processed fruit.

Since the MY 2004/05 apple crop is estimated to be virtually as high as
the previous season's, the production of CAJ will also be high.

# Consumption

CY 2003 total fruit and processed fruit product consumption was slightly
lower than in CY 2002 and represented 54.5 kg per person (55.5 kg in
2002). Nevertheless, compared to the old EU-15, fresh and processed
fruit consumption is still very low, representing 50 percent of the
average EU-15 consumption. Only apple consumption is similar to other
European countries and even higher than in France and Spain. Apples
remain the dominant horticultural fruit in Poland. In MY2003/2004 the
consumption of apples remained at 23 kilogram per person. It is expected
that the consumption of fruit and fruit products would not change much
in MY 2004/2005, and the consumption of apples may increase. The share
of apples in relationship to the total consumption of fruit increased up
to 66 percent in CY2003 (3 percent increase).

Consumption of apple juice increased to 23,000 tons in MY2003/2004, 4.5
percent higher than in MY2002/2003.

# Trade

## 

Fresh Apples:

It is estimated that fresh fruit exports in MY2003/2004 decreased by 3
percent from the previous season while exports of processed fruit
increased by 4 percent. The value of apple exports in MY2003/2004
continued to climb reaching US\$70 million after reaching a very high
value of US\$68.8 million in MY2002/2003. However, due to an increased
abundance of CAJ, export values decreased as quantity increased.

Fresh apple exports, supplied in CY 2003 mainly to Russia, Belarus,
Lithuania, Moldova and Slovakia, increased from 334,000 up to 353,000
tons, while its value increased 36 percent from US\$51 million up to
US\$69 million.

Projected MY2004/2005 apple imports, relatively small in comparison to
exports, are expected to increase from 14,000 tons in MY2002/2003 to
18,000 tons in MY2004/2005. This is due to improving local storage
facilities and an increasing portion of local apple production for
processing.

Concentrated Apple Juice:

Virtually all Polish CAJ production is exported. MY2003/2004 CAJ exports
were worth US\$210 million, compared to US\$156 million in MY2002/2003.
The increased quantities and higher value of exported CAJ resulted
mainly from lower world production.

Estimated higher production in Poland, as well as in other CAJ producers
like the United States and China, could put downward pressure on Polish
CAJ prices, although the Institute of Rural Economics estimates Polish
CAJ prices could average US\$0.8 per kilogram in MY2004/2005. The
average price of Polish CAJ in MY2003/2004 US\$0.9 and in MY2002/2003
US\$0.7.

# Policy

Since September 2001, farm producer group support legislation has been
in force. However, only in 2002 and 2003 did farmers receive subsidies
for apples withdrawn from the market. When Poland joined the EU on May
1, 2004, these subsidies were canceled. Apple producers, like other
farmers, can apply for per hectare subsidies, preferential credit (part
of the interest rate is paid by the GoP's Agency for the Restructuring
and Modernization of Agriculture) from local banks, and EU co-financing
funds for producer investments.

In April 2004, the act on organization of the fruit and vegetable market
was adopted. This adapts Polish law to EU regulations. According to this
act, officially recognized producer groups would have a right to
intervene on the market in specific conditions by withdrawing apples
from the market (not more than 8.5 percent of the previous year quantity
supplied to the market) and donating them to charity organizations. In
such cases, the groups will receive financial compensation. Government
authorities do not believe these policy changes will impact production.
Farmers are not very optimistic about producer group activities and want
to change the law. They are afraid that the new entity, as the producer
group will be, could have problems with selling their produce. Farmers
have their individual market channels, so they would accept the
obligation to provide the groups with a half of their production, istead
of all production. To encourage farmers to create producer groups, the
government promised to cover the expenses of the registration of the
group and its administrative costs for the first five years. Also, the
producer groups can apply for preferential investment credits at 0.25
percent interest rate.

# 

# Marketing

Most imports are handled by private companies. Large processors such as
Agros or Hortex focus primarily on export sales. Most of the
distribution of fruit in the Polish market is done through farmers'
markets or commodity exchanges. There is still a deficit of modern
storage facilities for apples in Poland. It is estimated that only
50,000-60,000 tons of apples are stored in modern storage facilities.
Only large apple producers can afford the price of such facilities. The
average Polish orchard is less than 5 hectares.

Economic potential of an average processor in Poland is much lower than
in the old EU-15. However, a group of processing industry leaders was
created whose economic potential, production scale and productivity are
comparable to that of European leading producers. Their share in Polish
production of most processed fruit products is much lower than the
average in the EU, however, in terms of production of juices and drinks,
jams and confitures, it's over 50 percent. Sector leaders, as well as
other smaller producers, reportedly comply with EU food safety and
hygiene requirements.

# Tariffs

Import duties changed upon Poland's EU accession May 1, 2004. EU
external rates are noted in the table below for non-EU imports. EU-25
member states have duty free access. Given Poland's substantial apple
production, no significant import impact is expected despite some lower
than pre-accession CAJ EU external duty rates.

## Poland Import Duty Rates after EU Accession

+---------+------------+---------+--------+-------------+-----------+
| HS Code | Product    | Months  | Tariff | Entry Price | Entry     |
|         |            |         |        |             | Pr        |
|         |            |         |        |             | ice/100kg |
|         |            |         |        |             | net       |
|         |            |         |        |             | weight    |
+---------+------------+---------+--------+-------------+-----------+
| 080     | Golden     | January | 11.2%  | Not less    | 4%        |
| 8.10.20 | Delicious  | 1-      |        | than €56.8  |           |
|         | & Other    | F       |        |             |           |
| 080     | Apples,    | ebruary |        |             |           |
| 8.10.90 | Fresh      | 14      |        |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+1.1€ |
|         |            |         |        | than €55.7  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €56.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+2.3€ |
|         |            |         |        | than €54.5  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €55.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+3.4€ |
|         |            |         |        | than €53.4  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €54.5  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+4.5€ |
|         |            |         |        | than €52.3  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €53.4  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Less than   | 6         |
|         |            |         |        | €52.3       | .4%+23.8€ |
+---------+------------+---------+--------+-------------+-----------+
|         |            | F       | 11.2%  | Not less    | 4%        |
|         |            | ebruary |        | than €56.8  |           |
|         |            | 15-     |        |             |           |
|         |            | March   |        |             |           |
|         |            | 31      |        |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+1.1€ |
|         |            |         |        | than €55.7  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €56.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+2.3€ |
|         |            |         |        | than €54.5  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €55.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+3.4€ |
|         |            |         |        | than €53.4  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €54.5  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+4.5€ |
|         |            |         |        | than €52.3  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €53.4  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+5.7€ |
|         |            |         |        | than €51.1  |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €52.3  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 6.4%+6.8€ |
|         |            |         |        | than €50    |           |
|         |            |         |        | but less    |           |
|         |            |         |        | than €51.1  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Less than   | 6         |
|         |            |         |        | €50         | .4%+23.8€ |
+---------+------------+---------+--------+-------------+-----------+
|         |            | April   |        | Not less    | Free\*    |
|         |            | 1- June |        | than €56.8  |           |
|         |            | 30      |        |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 1.     | than €55.7  | 8%+1.1€\* |
|         |            |         | 1€/100 | but less    |           |
|         |            |         | kg/net | than €56.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 2.     | than €54.5  | 8%+2.3€\* |
|         |            |         | 3€/100 | but less    |           |
|         |            |         | kg/net | than €55.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 3.     | than €53.4  | 8%+3.4€\* |
|         |            |         | 4€/100 | but less    |           |
|         |            |         | kg/net | than €54.5  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 4.     | than €52.3  | 8%+4.5€\* |
|         |            |         | 5€/100 | but less    |           |
|         |            |         | kg/net | than €53.4  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 5.     | than €51.1  | 8%+5.7€\* |
|         |            |         | 7€/100 | but less    |           |
|         |            |         | kg/net | than €52.3  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.        |
|         |            |         | 6.     | than €50    | 8%+6.8€\* |
|         |            |         | 8€/100 | but less    |           |
|         |            |         | kg/net | than €51.1  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Not less    | 4.8%+8€\* |
|         |            |         | 8€/100 | than €48.8  |           |
|         |            |         | kg/net | but less    |           |
|         |            |         |        | than €50    |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         | 3% +   | Less than   | 4.8       |
|         |            |         | 23.    | €48.8       | %+23.8€\* |
|         |            |         | 8€/100 |             |           |
|         |            |         | kg/net |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            | July 1- | 12.8%  | Not less    | Free      |
|         |            | July 15 | MIN    | than €45.7  |           |
|         |            |         | 2.4€   |             |           |
|         |            |         | /100   |             |           |
|         |            |         | kg/net |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €44.8  | 8%+0.9€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €45.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €43.9  | 8%+1.8€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €44.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €43    | 8%+2.7€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43.9  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €42    | 8%+3.7€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43    |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €41.1  | 8%+4.6€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €42    |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €40.2  | 8%+5.5€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €41.1  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €39.3  | 8%+6.4€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €40.2  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Less than   | 4.8       |
|         |            |         |        | €39.3       | %+23.8€\* |
+---------+------------+---------+--------+-------------+-----------+
|         |            | July    | 12.8%  | Not less    | Free      |
|         |            | 16-     | MIN    | than €45.7  |           |
|         |            | July 31 | 2.4€   |             |           |
|         |            |         | /100   |             |           |
|         |            |         | kg/net |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €44.8  | 8%+0.9€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €45.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €43.9  | 8%+1.8€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €44.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €43    | 8%+2.7€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43.9  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 4.        |
|         |            |         |        | than €42    | 8%+3.7€\* |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43    |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Less than   | 4.8       |
|         |            |         |        | €42         | %+23.8€\* |
+---------+------------+---------+--------+-------------+-----------+
|         |            | August  | 11.2%  | Not less    | 9%        |
|         |            | 1-      |        | than € 45.7 |           |
|         |            | D       |        |             |           |
|         |            | ecember |        |             |           |
|         |            | 31      |        |             |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 1         |
|         |            |         |        | than €44.8  | 1.2%+0.9€ |
|         |            |         |        | but less    |           |
|         |            |         |        | than €45.7  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 1         |
|         |            |         |        | than €43.9  | 1.2%+1.8€ |
|         |            |         |        | but less    |           |
|         |            |         |        | than €44.8  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 1         |
|         |            |         |        | than €43    | 1.2%+2.7€ |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43.9  |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Not less    | 1         |
|         |            |         |        | than €42    | 1.2%+3.7€ |
|         |            |         |        | but less    |           |
|         |            |         |        | than €43    |           |
+---------+------------+---------+--------+-------------+-----------+
|         |            |         |        | Less than   | 11        |
|         |            |         |        | €42         | .2%+23.8€ |
+---------+------------+---------+--------+-------------+-----------+

-   From April 1-July 31 there is a quota of 600 tons, which allows for
    the ad valorem tariff to be reduced to 0.

## Poland Import Duty Rates before EU Accession

  -------------- ---------------------------- ---------- -------- ----------- ---------
  HS Code        Product                      Import     Czech &  Lithuania   Latvia
                                              tariff for Slovak               
                                              WTO        Rep.                 
                                              members,                        
                                              incl. USA                       
                                              and EU                          
                                              members                         

  0808.10.10.0   Apples for juice, from       0.3 EUR/kg 10 %     10 %        0 %
                 Sept.16 till December 15                                     

  0808.10.20     Golden Delicious varieties:                                  

  0808.10.20.1   ‑from January 1 till March   0.33       10 %     10 %        10 %
                 31                           EUR/kg                          

  0808.10.20.3   ‑from April 1 till June 30   0.12       0 %      10 %        0 %
                                              EUR/kg                          

  0808.10.20.5   ‑from July 1 till July 31    10 %       0 %                  0 %

  0808.10.20.7   ‑from August 1 till December 0.3 EUR/kg 10 %     10 %        15 %
                 31                                                           

  0808.10.50     Granny Smith varieties:                                      

  0808.10.50.1   ‑from Jan 1 till March 31    0.33       10 %     10 %        10 %
                                              EUR/kg                          

  0808.10.50.3   ‑from April 1 till June 30   0.12       0 %      10 %        0 %
                                              EUR/kg                          

  0808.10.50.5   ‑from July 1 till July 31    10 %       0 %                  0 %

  0808.10.50.7   ‑from August 1 till December 0.33       10 %     10 %        15 %
                 31                           EUR/kg                          

  0808.10.90     Other varieties:                                             

  0808.10.90.1   ‑from Jan 1 till March 31    0.33       10 %     10 %        10 %
                                              EUR/kg                          

  0808.10.90.3   ‑from April 1 till June 30   0.12       0 %      10 %        0 %
                                              EUR/kg                          

  0808.10.90.5   ‑from July 1 till July 31    10 %       0 %                  0 %

  0808.10.90.7   ‑from August 1 till December 0.3 EUR/kg 10 %     10 %        15 %
                 31                                                           
  -------------- ---------------------------- ---------- -------- ----------- ---------

Poland's tariff rate for CAJ before May 1, 2004 was 50 percent or 44
percent plus 0.2 EUR/kg with a maximum 120 EUR/hl plus sugar-content
tax. In order to protect the local sugar industry, in 1993 Poland
introduced a sugar-content tax. This tax applied to all products which
contain sugar. The sugar tax applicable to CAJ was 0.0049 EUR per each
10 grams or each 1 percent of sugar in 1 kilogram of the product. The
tariff rate for CAJ with no added sugar content was 35 percent. There
was a 12 percent preferential tariff rate on all kinds of CAJ imported
from the Czech and Slovak Republics, Hungary, Slovenia, Romania,
Bulgaria and Latvia, under a series of bilateral agreements.

# Poland's situation after the EU accession

Integration with the EU did not significantly affect the level and
structure of Polish foreign trade in horticultural products, including
apples and CAJ. Import duties on Polish exports to the EU-15 had been
abolished January 2001. Ending the system of threshold prices can lead
to an increase in sales of apples to the EU market. Lower import duties
(in selected seasons) can increase the possibility of imports of U.S.
apples to Poland (former Polish rate was 9-11.2%).

Farmers, as well as local CAJ producers, unanimously confirm that Polish
accession to the EU structures on May 1, 2004 did not significantly
change their position on local and EU markets. Actually, exports of
fruit juices are higher due to higher demand (hot weather) and the Euro
exchange rate. CAJ producers are not afraid that they cannot sell their
production in Europe this year, but anticipate that due to higher apple
production worldwide, and especially very cheap Chinese offers, their
profits will decline.

Farmers complain that they would prefer to get some subsidies on their
apples as can their old EU-15 counterparts. However according to the
accession treaty, Poland as a new EU-25 member state will receive
decoupled agricultural land per hectare subsidies rather than fruit
production related subsidies.

Despite such farmer complaints, there will likely be some stimulation of
commercial production and processing because of EU investment subsidies
for farmers and processors. Registered food producers are entitled to
receive EU subsidies and can submit applications for co-financing of
investment projects on their farms. Such EU investment refunds can
amount to 55 percent of the investment value.

Food processing companies can also apply for EU investment co-financing.
For example, as reported in an August 23, 2004 Polish press report, "93
fruit and vegetable" processing plants will be allowed to tap into some
of 105 million Euros in EU agricultural sector financial assistance.
Beyond this, the same report indicates that overall under SAPARD
agricultural sector EU development funds which largely assist adjusting
agricultural/food processors, there have been 1,778 applications in
Poland of which 1,341 were granted support worth 1.7 billion zloties
(3.6 zloty = US\$ 1, Aug. 24, 2004).

# Fresh Apples, PSD

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

  Country       Poland                                                              

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

                2002       Revised    2003       Estimate   2004         Forecast   UOM

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

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

  Area Planted  168500     168500     170000     159300     0            260000     (HA)

  Area          100000     100000     100000     100000     0            100000     (HA)
  Harvested                                                                         

  Bearing Trees 77000      77000      79000      78000      0            78000      (1000
                                                                                    TREES)

  Non-Bearing   22000      22000      22000      20000      0            20000      (1000
  Trees                                                                             TREES)

  Total Trees   99000      99000      101000     98000      0            98000      (1000
                                                                                    TREES)

  Commercial    2028000    2028000    2100000    2282000    0            2260000    (MT)
  Production                                                                        

  Non-Comm.     150000     140000     150000     145800     0            140000     (MT)
  Production                                                                        

  TOTAL         2178000    2168000    2250000    2427800    0            2400000    (MT)
  Production                                                                        

  TOTAL Imports 5000       7500       5000       14000      0            18000      (MT)

  TOTAL SUPPLY  2183000    2175500    2255000    2441800    0            2418000    (MT)

  Domestic      664000     500100     685000     515100     0            500000     (MT)
  Fresh Consump                                                                     

  Exports,      230000     386400     270000     340000     0            310000     (MT)
  Fresh Only                                                                        

  For           1289000    1289000    1300000    1586700    0            1608000    (MT)
  Processing                                                                        

  Withdrawal    0          0          0          0          0            0          (MT)
  From Market                                                                       

  TOTAL         2183000    2175500    2255000    2441800    0            2418000    (MT)
  UTILIZATION                                                                       
  ------------- ---------- ---------- ---------- ---------- ------------ ---------- ---------

# Fresh Apples, Exports

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

  Country                        Poland                             

  Commodity                      Apples, Fresh                      

  Time Period                    Jan-Dec           Units:           MT

  Exports for:                   2002                               2003

  U.S.                                             U.S.              

  Others                                           Others           

  Russian Federation             135192            Russian          140703
                                                   Federation       

  Lithuania                      21141             Belarus          38424

  Moldova                        19326             Moldova          25277

  Slovakia                       18452             Lithuania        24053

  Romania                        17539             Romania          21299

  Yugoslavia                     15445             Slovakia         17421

  Latvia                         15142             Latvia           15189

  Belarus                        13569             Estonia          11040

  Czech Republic                 12892             Germany          10557

  Croatia                        12762             Bulgaria         10507

  Total for Others               281460                             314470

  Others not Listed              52173                              38177

  Grand Total                    333633                             352647
  ------------------------------ ----------------- ---------------- --------

# Fresh Apples, Imports

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

  Country                           Poland                           

  Commodity                         Apples, Fresh                    

  Time Period                       Jan-Dec            Units:        MT

  Imports for:                      2002                             2003

  U.S.                              96                 U.S.          4

  Others                                               Others        

  Argentina                         2397               Lithuania     4827

  Austria                           1040               Argentina     3448

  Chile                             815                Austria       1671

  Netherlands                       537                Netherlands   1498

  Italy                             401                Chile         910

  Russian Federation                259                Italy         474

  France                            192                South Africa  311

  Belgium                           152                Belgium       231

  South Africa                      130                France        221

  Uruguay                           101                Slovakia      75

  Total for Others                  6024                             13666

  Others not Listed                 282                              393

  Grand Total                       6402                             14063
  --------------------------------- ------------------ ------------- -------

# Concentrated Apple Juice, PSD

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

  Country        Poland                                                                

  Commodity      Apple Juice,                                    (MT)                  
                 Concentrated                                                          

                 2002           Revised    2003       Estimate   2004       Forecast   UOM

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

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

  Deliv. To      1289000        1289000    1300000    1586700    0          1608000    (MT)
  Processors                                                                           

  Beginning      5000           3000       3000       3000       3000       3000       (MT)
  Stocks                                                                               

  Production     200000         215000     205000     220000     0          225000     (MT)

  Imports        5000           2600       5000       2500       0          2500       (MT)

  TOTAL SUPPLY   210000         220600     213000     225500     3000       230500     (MT)

  Exports        185000         197600     187000     201500     0          206000     (MT)

  Domestic       22000          20000      23000      21000      0          21500      (MT)
  Consumption                                                                          

  Ending Stocks  3000           3000       3000       3000       0          3000       (MT)

  TOTAL          210000         220600     213000     225500     0          230500     (MT)
  DISTRIBUTION                                                                         
  -------------- -------------- ---------- ---------- ---------- ---------- ---------- ---------

# Concentrated Apple Juice, Exports

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

  Country                     Poland                                    

  Commodity                   Apple Juice, Concentrated                 

  Time Period                 Jul-Apr                     Units:        MT

  Exports for:                2002                                      2003

  U.S.                        7945                        U.S.          1383

  Others                                                  Others        

  Germany                     145892                      Argentina     142529

  Austria                     10163                       Lithuania     15989

  Denmark                     9503                        Austria       9463

  Italy                       3843                        Netherlands   4299

  Netherlands                 2259                        Chile         3949

  Norway                      1979                        South Africa  2150

  Canada                      1218                        Italy         1383

  United Kingdom              1101                        France        1276

  Czech Republic              1018                        China         699

  France                      918                         Belgium       668

  Total for Others            177894                                    182405

  Others not Listed           2916                                      2134

  Grand Total                 188755                                    185922
  --------------------------- --------------------------- ------------- --------

# Concentrated Apple Juice, Imports

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

  Country                    Poland                                   

  Commodity                  Apple Juice, Concentrated                

  Time Period                Jul-Apr                     Units:       MT

  Imports for:               2002                                     2003

  U.S.                                                   U.S.          

  Others                                                 Others       

  China                      812                         China        443

  Lithuania                  276                         Germany      149

  Hungary                    99                          United       73
                                                         Kingdom      

  Germany                    98                          Iran         47

  Yugoslavia                 50                          Turkey       40

  France                     10                          France       26

  Austria                    3                           Lithuania    25

                                                         Belgium      14

                                                         Italy        9

                                                         Austria      2

  Total for Others           1348                                     828

  Others not Listed          0                                        0

  Grand Total                1348                                     828
  -------------------------- --------------------------- ------------ ------