Required Report - public distribution

**Date:** 2/2/2004

**GAIN Report Number:** PO4003

PO9999

**Portugal**

**Kiwifruit**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Lloyd Fleck

U.S. Embassy

**Prepared by:**

Maria do Monte Gomes

**Report Highlights:**

Portugal\'s kiwifruit production for MY 2003/2004 is forecast at 10,000
tons (5 percent above 2002/2003) due to expected improved weather for
the season. Imports are expected to remain at the 2002/2003 level of
9,000 tons. Marketing prospects for U.S. kiwifruit are not promising,
due to greater availability and stiff competition from EU suppliers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Madrid \[SP1\]

\[PO\]

Table of Contents

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 4](#trade)

[Marketing 6](#marketing)

# Production

# Kiwifruit PS&D Table

  --------------- --------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**     **Portugal**                                                

  **Commodity**   **Kiwifruit**                                    (HA)(MT)   

                  2001            Revised    2002       Estimate   2003       Forecast

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

  **Market Year                   10-2001               10-2002               10-2003
  Begin**                                                                     

  Bearing Area    1220            1000       1200       970        0          983

  Non-Bearing     13              13         33         30         0          17
  Area                                                                        

  TOTAL Area      1233            1013       1233       1000       0          1000
  Planted                                                                     

  TOTAL Area      1220            1220       1200       1000       0          1000
  Harvested                                                                   

  TOTAL           4500            7000       7500       9500       0          10000
  Production                                                                  

  Imports         9370            9370       8000       8990       0          9000

  TOTAL SUPPLY    13870           16370      15500      18490      0          19000

  Exports         372             372        800        246        0          300

  Domestic        13498           15998      14700      18244      0          18700
  Consumption                                                                 

  TOTAL           13870           16370      15500      18490      0          19000
  DISTRIBUTION                                                                
  --------------- --------------- ---------- ---------- ---------- ---------- ----------

The heat wave that hit Portugal in July and August 2003 had little
affect on kiwis because the crop is heavily irrigated. As a result,
fruit quality, color and size are considered to be good. Production in
MY2003/2004 is forecast at about 10,000 tons, or 5 percent above
MY2002/2003. Area in production will be maintained at roughly
MY2002/2003 levels (983 hectares); the higher production forecast is
based on assumptions of normal weather during the season. However,
farmers are faced with low prices and stiff competition from other EU
countries (mainly Spain, Italy and Germany), as well as from Chile.

Production is regionally concentrated in the Northern
\"Entre‑Douro‑e‑Minho\" region, which alone accounts for four-fifths of
total production. The dominant kiwifruit variety produced in Portugal is
\"Hayward\", which accounts for 90 percent of total output. Vine density
averages 560 vines/ha (females) on a normal density crop and 700-800
vines/ha (females) on a high density crop. There are currently no
disease/pest problems associated with kiwifruit production due to the
crop\'s recent introduction into the country.

Producer prices have been on a downward trend since 1989 when they
peaked at an average of 300 escudos/kg (around €1.50); in MY2002/2003
they averaged about €0.55/kg. Producers are hoping for slightly higher
prices in MY2003/2004, around €0.60/kg, but this will depend on
competition from imports from EU countries.

# Consumption

Domestic kiwi consumption during MY2002/2003 reached 18,244 tons, or 21
percent above MY2001/2002. Domestic consumption for MY2003/2004 is
expected to increase to 18,700 tons, slightly above MY2002/2003 levels.
This is mainly due to the expected increase in domestic production.

# Trade

Portugal has a deficit in kiwifruit trade. In 2002, imports (8,990 tons)
almost equaled the amount produced (9,500 tons). For CY2003, imports are
expected to hold at around 9,000 tons, reflecting the expected increase
in domestic production for the MY2003/2004 campaign.

The Portuguese import market is dominated by EU suppliers, with Spain
(3,266 tons), Italy (2,567 tons) and Germany (1,113 tons) as the leading
suppliers in 2002, competing with Chile (1,410 tons), which accounts for
16 percent of total imports. New Zealand kiwis are also sold in the
Portuguese market. However, New Zealand has exclusive distribution
agreements with a few importers for sales in the EU. Thus Portuguese
importers purchase New Zealand kiwis from importers in Belgium, Germany
and the Netherlands; for statistical purposes, these are considered to
be "EU kiwis" when entering Portugal.

Portuguese kiwifruit exports decreased slightly to 246 tons in CY2002.

**Import Trade Matrix**

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

  **Country**            Portugal                            

  **Commodity**          Kiwifruit                           

  Time Period            Out-01          Units:              MT

  Imports for:           2001                                **2002**

  U.S.                                   U.S.                 

  Others                                 Others              

  Spain                  3638            Spain               3266

  Italy                  2337            Italy               2567

  Germany                1038            Germany             1113

  France                 933             France              254

  Belgium                562             Belgium             220

  Netherlands            120             Netherlands         118

  Chile                  742             Chile               1410

                                         Argentina           42

                                                              

                                                              

  Total for Others       9370                                8990

  Others not Listed                                           

  Grand Total            9370                                8990
  ---------------------- --------------- ------------------- -------------

**Export Trade Matrix**

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

  **Country**            Portugal                            

  **Commodity**          Kiwifruit                           

  Time Period            Out-01          Units:              MT

  Exports for:           2001                                **2002**

  U.S.                                   U.S.                 

  Others                                 Others              

  Netherlands            264             Spain               181

  Spain                  59              Netherlands         29

  Cape Verde             26              Cape Verde          26

  Brazil                 18                                   

                                                              

                                                              

                                                              

                                                              

                                                              

                                                              

  Total for Others       367                                 236

  Others not Listed      5                                   10

  Grand Total            372                                 246
  ---------------------- --------------- ------------------- -------------

# Marketing

Market opportunities for U.S. kiwifruit are less than promising due to
strong competition from both domestic and EU kiwifruit suppliers.

The bulk of domestic kiwifruit production is marketed through four
companies (Eurofrutas, Frutas Douro ao Minho, Cavagri and Kiwicoop) and
two agricultural cooperatives (Felgueiras and Famalicao). They primarily
act as the main distributors of domestic production, dealing directly
with retailers, wholesalers and importers. Prices are established by
market conditions. Altogether, these companies account for about 40
percent of the total supply.

In addition, kiwifruit are also sold in wholesale markets directly by
producers and wholesalers. As is the case with other consumer food
items, kiwifruit retailing is increasingly dominated by the super- and
hyper-markets, which are estimated to account for almost 75 percent of
all kiwifruit sold in Portugal.