Required Report - public distribution

**Date:** 10/15/2003

**GAIN Report Number:** PL3040

PL0000

**Poland**

**Strawberries**

**Annual**

**2003**

**Approved by:**

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

#### U.S. Embassy

**Prepared by:**

Jolanta Figurska

**Report Highlights:**

Poland experienced lowest strawberry crop in nearly 20 years in 2003.
Production 24 percent compared to the 2002 crop because of poor weather
conditions. Total strawberry production in 2003 amounted to only 117,000
MT as compared with 153,000 MT harvested in the previous year. Frozen
strawberry exports in 2003 are expected to amount to only about 70,000
MT versus 127,000 MT (includes stock from the previous year) in 2002;
down 45 percent. Production in 2004 is expected to recover to recent
years average of 140,000 MT. Minimal impact on the strawberry sector is
expected following Poland\'s accession into the EU May, 2004.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Warsaw \[PL1\]

\[PL\]

Table of Contents

[Executive Summary 3](#executive-summary)

[FRESH STRAWBERRIES 3](#fresh-strawberries)

[Production 3](#production)

[Consumption 5](#consumption)

[Trade 6](#trade)

[Policy 9](#policy)

[Marketing 10](#marketing)

[FROZEN STRAWBERRIES 10](#frozen-strawberries)

[Production 10](#production-1)

[Consumption 11](#consumption-1)

[Price frozen 11](#price-frozen)

[Trade 11](#trade-1)

[Stocks 14](#stocks)

[Policy 14](#policy-1)

[Marketing 14](#marketing-1)

# Executive Summary

Unfavorable weather conditions resulted in the lowest strawberry crop in
20 years in CY 2003. Only 117,000 MT of strawberries were harvested this
year compared with 153,000 in 2002. This situation was caused by
especially unfavorable weather conditions in the winter (frost with no
snow protection) and spring (drought). As a result some quality problems
occurred with fruits that were available which were of smaller size. It
is estimated that Poland exported 10,000 tons of fresh or chilled
strawberries, primarily to the European Union (Germany, Austria).
Minimal quantities of table varieties were imported from Spain and
Italy.

The significant decrease in fresh strawberry output in 2003 decreased
the amount available for the processing industry. Due to limited
production, strawberry prices were at the highest level in over ten
years. Prices offered by the processing industry for fresh strawberries
this year (PLN 2.50-5.35, USD 0.62-1.30) were significantly higher than
a year ago (PLN 1.40-2.50, USD 0.33-0.60). Export prices greatly varied
during the summer starting quite low at the level of Euro 1,200 per ton
(USD 1,400), increasing to Euro 1,600-1,700 (USD 1,887-2,000) by the end
of the harvest. Polish exports of processed products (including frozen,
canned, preserves and jams) were estimated at about 137,000 tons
including 127,000 tons of frozen strawberries. The European Union
remains Poland's biggest export market, with Germany the single largest
importer of Polish frozen strawberries.

High prices received by producers in 2003 have stimulated new summer and
autumn plantings of strawberries in Poland. Hence, with increased area
planted over within the next two years when plantings become mature,
Poland could experience a large strawberry crop up to 160,000-180,000
MT. With increased production exceptionally high 2003 prices should
significantly drop after the 2004 harvest.

# FRESH STRAWBERRIES

# Production

Over the past ten years average area under strawberry cultivation in
Poland was about 57,000 HA. The area under strawberry cultivation in
2003 was the smallest since 1994 and amounted to only 40,000 HA. New
plantings were recorded in the fall of 2003 to the area of cultivation
might increase in 2004 to 50,000 HA. The level of production depends
greatly on weather conditions which have shifted over the last 15 years
with yields fluctuating between a high of 4.21 MT/HA in 1991 to 2.92
MT/HA in 2003.

Weather conditions during the winter of 2002 were very unfavorable.
Frost occurred frequently reportedly destroyed nearly fifteen percent of
area planted. Lack of snow cover greatly contributed to this situation.
Strawberries have the capability to regenerate during spring time but
spring 2003 was very unfavorable for the strawberry crop. Starting in
April through May Poland experienced drought. Average 2003 yields were
lower (2.92 tons/hectare) than those of 2002 (4 tons/hectare).

According to the Polish Institute of Agricultural Economics,
profitability in strawberry production this year amounted to 168 percent
versus 87 percent achieved in 2002.

Purchase Prices for Strawberries:

The harvest was very short. First purchases occurred around June 9^th^
and the last around July 4^th^, 2003. During early June, the purchase
price offered by processors for strawberries with leaf stalk removed was
PLN 2.50 (USD 0.66) per kilogram as compared with PLN 1.40 (USD 0.33)
per kilogram at the same time in 2002. The decrease in supply of
strawberries resulted in higher prices throughout the harvest. By the
end of June, farm-gate prices increased to PLN 4.86 (USD 1.21), reaching
PLN 5.35 (USD 1.34) at the beginning of July. During the 2003 harvest
prices of strawberries with leaf stalk purchased by the processing
industry remained at much lower level of PLN 2.70 (USD 0.67) -- PLN 3.00
(USD 0.75).

Poland's most popular varieties continue to be Senga Sengana (60% of
crop), Kama, Dukat, Elsanta, Selva, Kent, Korona and Marmolada. The
quality of the Senga Sengana variety has been decreasing steadily in
recent years due to poor farming practices. Farmers have been attempting
to reduce costs by using cuttings from older fields rather than
investing in new seedlings. With the use of older cuttings, any diseases
present in older plants are more easily spread resulting in lower
yields. Farmers reportedly prefer Dukat and Elsanta to Senga Sengana
because of its resistance to diseases. However, the Polish processing
industry does not like these varieties because their tolerance to cold
storage has not been proven. Polish farmers tend to have different
varieties on each field.

There has been increased interest in the cultivation of fresh table
varieties including Elsanta, Kama, Selva, Dukat and Kent in recent
years. Polish farmers are aware that fresh table varieties attract
higher prices and could increase the profitability of their operations.
By introducing more varieties, they are able to both prolong the
strawberry harvest season and to offer a new product for Polish markets
and exports. In the past few years for the first time in Poland largest
Polish strawberry producer (over 143 HA) situated near Warsaw has been
successful in introducing tunnel production for part of strawberry
fields on his farm. This development enables this company to have
continuous supply of table fruit varieties from May to November.
Currently the remaining 97 percent of Polish farms are traditional open
fields.

## 

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

  **Country**          **Poland**                                                   

  **Commodity**        **Fresh                                           (HA)(MT)   
                       Strawberries**                                               

                       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                         01/2002               01/2003               01/2004
  Begin**                                                                           

  Area Planted         44400            38000      50000      40000      0          50000

  Area Harvested       44400            38000      50000      40000      0          50000

  TOTAL Production     162000           153000     160000     117000     0          140000

  Imports, Fresh       1400             1250       1400       1250       0          1500

  TOTAL SUPPLY         163400           154250     161400     118250     0          141500

  Exports, Fresh       15300            16855      15000      10500      0          14000

  Domestic Fresh       39100            24,395     30500      27750      0          27500
  Market                                                                            

  For Processing       109000           113000     115900     80000      0          100000

  TOTAL UTILIZATION    163400           154250     161400     118250     0          141500
  -------------------- ---------------- ---------- ---------- ---------- ---------- ----------

# Consumption

During the past several years, consumption of fresh strawberries has
remained constant at about 0.5-1 kg/per capita and is expected to remain
at a similar level in 2004.

+-----------------------+--------------+----------------+------------+
| **Prices Table**      |              |                |            |
+-----------------------+--------------+----------------+------------+
| **Country**           | Poland       |                |            |
+-----------------------+--------------+----------------+------------+
| **Commodity**         | #            |                |            |
|                       | ##### Fresh  |                |            |
|                       | Strawberries |                |            |
+-----------------------+--------------+----------------+------------+
| Prices in             | Zlotys       | per uom        | kilogram   |
+-----------------------+--------------+----------------+------------+
|                       |              |                |            |
+-----------------------+--------------+----------------+------------+
| Year                  | 2001         | 2002           | \% Change  |
+-----------------------+--------------+----------------+------------+
| Jan                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Feb                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Mar                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Apr                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| May                   | 15.15        | 17             | 12.21%     |
+-----------------------+--------------+----------------+------------+
| Jun                   | 4.63         | 5              | 7.99%      |
+-----------------------+--------------+----------------+------------+
| Jul                   | 2.4          | 4.5            | 66.67%     |
+-----------------------+--------------+----------------+------------+
| Aug                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Sep                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Oct                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Nov                   |              |                |            |
+-----------------------+--------------+----------------+------------+
| Dec                   |              |                |            |
+-----------------------+--------------+----------------+------------+
|                       |              |                |            |
+-----------------------+--------------+----------------+------------+
| Exchange Rate         | 4.01         | Local          |            |
|                       |              | currency/US \$ |            |
+-----------------------+--------------+----------------+------------+
| Date of Quote         | 06/01/02     | MM/DD/YYYY     |            |
+-----------------------+--------------+----------------+------------+

# Trade

Poland annually exports around 12,000-20,000 tons of fresh and/or
chilled strawberries. The European Union (Germany, Austria) imports
almost all of the product. Poland exported 16,855 tons of fresh and
chilled strawberries in 2002. During 2003 exports were estimated at
10,500 tons and are expected to only slightly increase in 2004. Polish
analysts expect exports of fresh product to increase further in the next
3-5 years as Polish farmers increase production of table varieties.
Polish product is exported by small Polish private firms as well as
branch offices of foreign (mostly German) firms.

During the off season, limited quantities of fresh strawberries are
imported by air from Spain, Italy and Morocco. High prices (two to three
times higher than that of Polish strawberries during harvest season)
limit sales.

+-------------------+--------------+-------------------+--------------+
| **Export Trade    |              |                   |              |
| Matrix**          |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | Poland       |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | ##           |                   |              |
|                   | ##### Fresh  |                   |              |
|                   | Strawberries |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time period       | 12 months    | Units:            | Tons         |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | **2001**     |                   | 2002         |
+-------------------+--------------+-------------------+--------------+
| U.S.              |              | U.S.              |              |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Germany           | 10788        | Germany           | 7399         |
+-------------------+--------------+-------------------+--------------+
| Austria           | 3100         | Netherlands       | 2787         |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 2888         | Austria           | 3084         |
+-------------------+--------------+-------------------+--------------+
| Belgium           | 1428         | Belgium           | 1742         |
+-------------------+--------------+-------------------+--------------+
| Czech Rep.        | 717          | Czech Rep.        | 999          |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 18921        |                   | 16011        |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 2023         |                   | 844          |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 20944        |                   | 16855        |
+-------------------+--------------+-------------------+--------------+

+-------------------+--------------+-------------------+--------------+
| **Import Trade    |              |                   |              |
| Matrix**          |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | Poland       |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | ##           |                   |              |
|                   | ##### Fresh  |                   |              |
|                   | Strawberries |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time period       | 12 month     | Units:            | Tons         |
+-------------------+--------------+-------------------+--------------+
| Imports for:      | **2001**     |                   | 2002         |
+-------------------+--------------+-------------------+--------------+
| U.S.              |              | U.S.              |              |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Spain             | 615          | Spain             | 671          |
+-------------------+--------------+-------------------+--------------+
| Italy             | 404          | Italy             | 312          |
+-------------------+--------------+-------------------+--------------+
| Austria           | 115          | Morocco           | 58           |
+-------------------+--------------+-------------------+--------------+
| Germany           | 113          | Austria           | 71           |
+-------------------+--------------+-------------------+--------------+
| Switzerland       | 75           | Switzerland       | 71           |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 64           | Germany           | 43           |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 1386         |                   | 1226         |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 41           |                   | 27           |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 1427         |                   | 1253         |
+-------------------+--------------+-------------------+--------------+

+--------+---------+-----+-----+------+-------+----+---------+------+
| PCN    | Product | Pre |     |      |       |    |         |      |
| Code   |         | fer |     |      |       |    |         |      |
|        |         | ent |     |      |       |    |         |      |
|        |         | ial |     |      |       |    |         |      |
|        |         | t   |     |      |       |    |         |      |
|        |         | ari |     |      |       |    |         |      |
|        |         | ffs |     |      |       |    |         |      |
|        |         | f   |     |      |       |    |         |      |
|        |         | or: |     |      |       |    |         |      |
+--------+---------+-----+-----+------+-------+----+---------+------+
|        | Fresh   | MFN | Cz  | Hun  | Lith  | La | Post EU | EU   |
|        | Straw   | Tar | ech | gary | uania | tv | A       | Ta   |
|        | berries | iff | Slo |      |       | ia | ccesion | riff |
|        |         |     | vak |      |       |    | C       | \*\* |
|        |         |     |     |      |       |    | ode\*\* |      |
|        |         |     | R   |      |       |    |         |      |
|        |         |     | ep. |      |       |    |         |      |
+--------+---------+-----+-----+------+-------+----+---------+------+
| 081    | Strawb  | 20% | 0   | 15%  | 10%   | 0% | 0       | 1    |
| 010001 | erries, |     |     |      |       |    | 8101001 | 1.2% |
|        | Fresh,  |     |     |      |       |    | Stra    |      |
|        | i       |     |     |      |       |    | wberrie | Unit |
|        | mported |     |     |      |       |    | sFresh, | va   |
|        |         |     |     |      |       |    | i       | lue: |
|        | Jan 1-  |     |     |      |       |    | ntended | 13   |
|        | Apr 30  |     |     |      |       |    | for     | 1.51 |
|        |         |     |     |      |       |    | pro     | EUR  |
|        |         |     |     |      |       |    | cessing | VU/1 |
|        |         |     |     |      |       |    |         | 00kg |
+--------+---------+-----+-----+------+-------+----+---------+------+
| 081    | Strawb  | 40% | 5%  | 15%  | 10%   | 1  | Code    |      |
| 010003 | erries, |     |     |      |       | 5% | will no |      |
|        | Fresh,  |     |     |      |       |    | longer  |      |
|        | i       |     |     |      |       |    | exist   |      |
|        | mported |     |     |      |       |    |         |      |
|        | May1-   |     |     |      |       |    | after   |      |
|        | July    |     |     |      |       |    | acc     |      |
|        | 31\*    |     |     |      |       |    | ession, |      |
|        |         |     |     |      |       |    |         |      |
|        |         |     |     |      |       |    | 08      |      |
|        |         |     |     |      |       |    | 1010001 |      |
|        |         |     |     |      |       |    | will be |      |
|        |         |     |     |      |       |    | app     |      |
|        |         |     |     |      |       |    | licable |      |
|        |         |     |     |      |       |    | for     |      |
|        |         |     |     |      |       |    | whole   |      |
|        |         |     |     |      |       |    | year.   |      |
+--------+---------+-----+-----+------+-------+----+---------+------+
| 081    | Strawb  | 20% | 0   | 15%  | 10%   | 0% | 08      | 1    |
| 010009 | erries, |     |     |      |       |    | 1010009 | 1.2% |
|        | Fresh,  |     |     |      |       |    | Straw   |      |
|        | i       |     |     |      |       |    | berries | Unit |
|        | mported |     |     |      |       |    | Fresh,  | va   |
|        |         |     |     |      |       |    |         | lue: |
|        | Aug 1 ‑ |     |     |      |       |    | other   | 13   |
|        | Dec 31  |     |     |      |       |    |         | 1.51 |
|        |         |     |     |      |       |    |         | EUR  |
|        |         |     |     |      |       |    |         | VU/1 |
|        |         |     |     |      |       |    |         | 00kg |
+--------+---------+-----+-----+------+-------+----+---------+------+

\* Please note that a tariff rate quota for fresh strawberries is in
effect between May 1 - July 31. Imports made within the quota of 19 tons
are assessed a lower tariff of 20 percent. This will remain the standard
until EU accession, upon Poland's accession to the EU, no such quota
will be put into effect.

\*\*The tariff included in this column will only become applicable when
Poland becomes a member of the EU May 1, 2004.

+------------+------------------+-------------+-------+------+-------+
| PCN Code   | Product          | P           |       |      | Post  |
|            |                  | referential |       |      | E     |
|            |                  | tariffs     |       |      | U\*\* |
|            |                  | for:        |       |      | acce  |
|            |                  |             |       |      | ssion |
+------------+------------------+-------------+-------+------+-------+
|            | Frozen           | MFN Tariff  | C     | La   |       |
|            | Strawberries     |             | zech, | tvia |       |
|            |                  |             | S     |      |       |
|            |                  |             | lovak |      |       |
|            |                  |             | Reps  |      |       |
|            |                  |             |       |      |       |
|            |                  |             | Hu    |      |       |
|            |                  |             | ngary |      |       |
|            |                  |             | Slo   |      |       |
|            |                  |             | venia |      |       |
|            |                  |             |       |      |       |
|            |                  |             | Ro    |      |       |
|            |                  |             | mania |      |       |
|            |                  |             |       |      |       |
|            |                  |             | Bul   |      |       |
|            |                  |             | garia |      |       |
+------------+------------------+-------------+-------+------+-------+
| 0811 10    | Strawberries     |             |       |      |       |
|            | containing       |             |       |      |       |
|            |                  |             |       |      |       |
|            | added sugar or   |             |       |      |       |
|            | other sweetening |             |       |      |       |
|            | matter:          |             |       |      |       |
+------------+------------------+-------------+-------+------+-------+
| 0811 10 11 | Strawberries     | 30%         | 9%    | 0%   | 20    |
|            | boiled/frozen    |             |       |      | .8% + |
|            | with sugar       |             |       |      | 8.4   |
|            | content of more  |             |       |      | EU    |
|            | than 13%         |             |       |      | R/100 |
|            |                  |             |       |      | kg    |
+------------+------------------+-------------+-------+------+-------+
| 0811 10 19 | Other            | 30%         | 9%    | 0%   | 20.8% |
+------------+------------------+-------------+-------+------+-------+
| 0811 10 90 | Other            | 25%         | 9%    | 0%   | 4.4%  |
+------------+------------------+-------------+-------+------+-------+
| 0812 90    | Preserved        | 25%         | 0     | 0    | 8.8%  |
| 9930       | strawberries     |             |       |      |       |
|            |                  |             |       |      |       |
|            | not for          |             |       |      |       |
|            | immediate        |             |       |      |       |
|            |                  |             |       |      |       |
|            | consumption      |             |       |      |       |
+------------+------------------+-------------+-------+------+-------+

\*\*The tariff included in this column will only become applicable when
Poland becomes a member of the EU May 1, 2004.

# Policy

The Government of Poland (GOP) through the Ministry of Agriculture and
Rural Development's Agency For Restructuring and Modernizing of
Agriculture offers the following preferential agricultural credits:

Basic investment credit (utilized primarily for the construction of new
buildings, food processing activities): GOP subsidizes loans to farmers
at less than half the commercial agricultural credit rate which can be
as high as 35 percent. Loans under this program average 13 percent
interest rate.

Credits for new farmers below age 40 (utilized for land purchase as well
as construction of new farm buildings): Farmers meeting the program
criteria receive loans with 5 percent interest rate.

Credits for purchase of additional land: Farmers can obtain loans at 5
percent interest rate.

Credit for development of new agricultural production (includes purchase
of seedlings) at 5.-13 percent interest rate.

Loans for creation of agricultural farms approved by the Minister of
Agriculture at 5 -13 percent interest rate.

# Marketing

During the harvest season, vendors traditionally sell fresh strawberries
in wooden baskets containing 2 kg of fruit from the back of trucks or
from temporary stands. The dynamic growth of the supermarket/hypermarket
retail outlets has resulted in a consolidation of wholesale suppliers.
Hypermarkets tend to contract with individuals or supplier groups.

Polish exports of fresh and chilled strawberries are carried out by
private Polish firms as well as foreign companies seasonally operating
in Poland. Foreign companies (mostly German) either set up purchasing
points or pre-contract with Polish farmers. Product is purchased
directly from farms and either pre-cooled before transport or
transported in temperature-controlled trucks to Germany for further
processing. Polish traders and representatives of local freezers also
purchase fresh product from farmers. However, lacking financial
resources, Polish companies often find it difficult to compete with the
foreign firms. Limited quantities of imported fresh strawberries, which
appear during the off season, are mostly sold in supermarkets and on
vegetable stands in larger cities.

# FROZEN STRAWBERRIES

# Production

Sixty to seventy percent of strawberry production is annually sold as
frozen product. Of the 80,000 MT of fresh strawberries delivered to
processors in 2003, about 77,000 MT of frozen product was produced. In
2003, in many cases fresh fruit processors complained about the
unusually small size of the fruit.

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

  **Country**          **Poland**                                                   

  **Commodity**        **Frozen                                          (MT)       
                       Strawberries**                                               

                       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                         01/2002               01/2003               01/2004
  Begin**                                                                           

  Deliv. To Processors 109000           113000     115000     80000      0          100000

  Beginning Stocks     0                25800      0          0          500        2500

  Production           103000           109000     105000     77000      0          90000

  Imports              1000             1500       1000       1000       0          1000

  TOTAL SUPPLY         104000           136300     106000     78000      500        93500

  Exports              90000            127300     90000      68500      0          85500

  Domestic Consumption 14000            9000       15500      7000       0          8000

  Ending Stocks        0                0          500        2500       0          0

  TOTAL DISTRIBUTION   104000           136300     106000     78000      0          93500
  -------------------- ---------------- ---------- ---------- ---------- ---------- ----------

# Consumption

Consumption of frozen strawberries in Poland is only about 0.2 kg per
capita. Poles prefer purchasing fresh product during the harvest season
as well as consuming products processed at home (jams, compotes etc.).

# Price frozen

+-----------------------+--------------+--------------+--------------+
| **Prices Table**      |              |              |              |
+-----------------------+--------------+--------------+--------------+
| **Country**           | Poland       |              |              |
+-----------------------+--------------+--------------+--------------+
| **Commodity**         | ##           |              |              |
|                       | #### Frozen  |              |              |
|                       | Strawberries |              |              |
+-----------------------+--------------+--------------+--------------+
| Prices in             | Zlotys       | per uom      | kilogram     |
+-----------------------+--------------+--------------+--------------+
|                       |              |              |              |
+-----------------------+--------------+--------------+--------------+
| Year                  | 2001         | 2002         | \% Change    |
+-----------------------+--------------+--------------+--------------+
| Jan                   | 9.64         | 10.5         | 8.92%        |
+-----------------------+--------------+--------------+--------------+
| Feb                   | 9.62         | 9.77         | 1.56%        |
+-----------------------+--------------+--------------+--------------+
| Mar                   | 9.64         | 10           | 3.73%        |
+-----------------------+--------------+--------------+--------------+
| Apr                   | 9.6          | 9.8          | 2.08%        |
+-----------------------+--------------+--------------+--------------+
| May                   | 9.58         | 10           | 4.38%        |
+-----------------------+--------------+--------------+--------------+
| Jun                   | 9.52         | 10.5         | 10.29%       |
+-----------------------+--------------+--------------+--------------+
| Jul                   | 9.44         | 10.3         | 9.11%        |
+-----------------------+--------------+--------------+--------------+
| Aug                   | 9.4          | 10.6         | 12.77%       |
+-----------------------+--------------+--------------+--------------+
| Sep                   | 9.32         | 10.6         | 13.73%       |
+-----------------------+--------------+--------------+--------------+
| Oct                   | 9.32         | 10.6         | 13.73%       |
+-----------------------+--------------+--------------+--------------+
| Nov                   | 9.32         | 10.6         | 13.73%       |
+-----------------------+--------------+--------------+--------------+
| Dec                   | 9.24         | 10.8         | 16.88%       |
+-----------------------+--------------+--------------+--------------+
|                       |              |              |              |
+-----------------------+--------------+--------------+--------------+
| Exchange Rate         | 4.01         | Local        |              |
|                       |              | currency/US  |              |
|                       |              | \$           |              |
+-----------------------+--------------+--------------+--------------+
| Date of Quote         | 06/01/02     | MM/DD/YYYY   |              |
+-----------------------+--------------+--------------+--------------+

# Trade

# 

Poland continues to be the major supplier of frozen strawberries to the
European Union. Germany is Poland's largest market. At the beginning of
the harvest in June 2003 export prices were at Euro 1,200 (USD 1,415)
per ton. During harvest as limited production became more visible prices
increased to the level of Euro 1,600 (USD 1,886) per ton, and at the end
of the season reached Euro 1,700 (USD 2,000) per ton.

In the past, Hortex (currently a private firm, formerly one of the state
owned Polish export-import enterprises) was responsible for most of the
Polish exports. This company is currently responsible for nearly sixty
percent of the trade. Other export companies include: Agros, Hortino,
Freezing House Olsztyn, Gomar and Elsner.

Polish medium and small size companies also experienced a very difficult
trade year during 2003. Extremely high purchasing prices resulted in
limited purchases. Those firms which were purchasing product at the end
of harvest in early July when prices had escalated to Euro 1,700 per ton
(USD 2,000). The lack of government financial support for purchases as
well as the lack of preferential credits for trading companies are
limiting development of this sector in Poland.

Many "seasonal" companies with foreign investment (mostly German)
purchase fresh product locally. They contract with Polish freezers for
processing fruits and then transport frozen strawberries to destination
markets.

Limited imports of frozen strawberries enter Poland from countries such
as Spain, China and Germany.

Effects of Poland's U.E. Accession on Trade:

According to trade sources, Poland's accession to the E.U. will not have
any major effects on the strawberry trade or industry. Attempts are
being made to organize Polish growers into associations (as required by
the EU) in order to obtain financial assistance, but are not very
successful. Many of the E.U. trading firms dealing with
purchasing/processing of strawberries already have either permanent or
seasonal representation on the Polish market.

+-------------------+--------------+-------------------+--------------+
| ######## Ex       |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | Poland       |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | ###          |                   |              |
|                   | #### Frozen  |                   |              |
|                   | Strawberries |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time period       | 12 months    | Units:            | Tons         |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | **2001**     |                   | 2002         |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 1993         | U.S.              |              |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Germany           | 53658        | Germany           | 53831        |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 15337        | Netherlands       | 17220        |
+-------------------+--------------+-------------------+--------------+
| France            | 10218        | Denmark           | 9331         |
+-------------------+--------------+-------------------+--------------+
| Denmark           | 8504         | Sweden            | 6186         |
+-------------------+--------------+-------------------+--------------+
| Belgium           | 5640         | France            | 6235         |
+-------------------+--------------+-------------------+--------------+
| Great Britain     | 4871         | United Kingdom    | 4111         |
+-------------------+--------------+-------------------+--------------+
| Sweden            | 4726         | Belgium           | 3950         |
+-------------------+--------------+-------------------+--------------+
| Austria           | 4273         | Austria           | 3420         |
+-------------------+--------------+-------------------+--------------+
| Norway            | 2914         | China             | 2664         |
+-------------------+--------------+-------------------+--------------+
| Finland           | 2392         | Norway            | 2683         |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 112533       |                   | 109631       |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 12092        |                   | 17687        |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 126618       |                   | 127318       |
+-------------------+--------------+-------------------+--------------+

+-------------------+--------------+-------------------+--------------+
| ######## Im       |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | Poland       |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Frozen       |                   |              |
|                   | Strawberries |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time period       | 12 months    | Units:            | Tons         |
+-------------------+--------------+-------------------+--------------+
| Imports for:      | **2001**     |                   | 2002         |
+-------------------+--------------+-------------------+--------------+
| U.S.              |              | U.S.              |              |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Germany           | 796          | Germany           | 949          |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 110          | Ukraine           | 163          |
+-------------------+--------------+-------------------+--------------+
| Sweden            | 82           | Norway            | 87           |
+-------------------+--------------+-------------------+--------------+
| Belgium           | 66           | Morocco           | 81           |
+-------------------+--------------+-------------------+--------------+
| Austria           | 63           | Czech Rep.        | 65           |
+-------------------+--------------+-------------------+--------------+
| Switzerland       | 44           | Switzerland       | 54           |
+-------------------+--------------+-------------------+--------------+
| Czech Rep.        | 42           |                   |              |
+-------------------+--------------+-------------------+--------------+
| Finland           | 22           |                   |              |
+-------------------+--------------+-------------------+--------------+
| Italy             | 22           |                   |              |
+-------------------+--------------+-------------------+--------------+
| France            | 22           |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 1269         |                   | 1399         |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 49           |                   | 175          |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 1318         |                   | 1574         |
+-------------------+--------------+-------------------+--------------+

# Stocks

# 

No official data on stocks are available. Post uses estimates obtained
from the Institute of Agricultural Economy and the Polish Ministry of
Agriculture and Rural Development. Carryover stocks of frozen
strawberries depend on the total supply and price in any given year. The
lower the price and the higher the quantity, the more likely some frozen
product will be stored. Stocks are held in cold storage facilities
throughout Poland. In 2002 exports of strawberries were greatly
increased by stocks from 2001 which were still in the cold storage.
According to Polish experts in 2003, many of these companies were caught
in a high prices situation at the end of the season. Consequently, some
stocks from the 2003 crop are still being stored in Poland.

# Policy

# 

There is no special Government policy being applied to purchasing or
trade of frozen strawberries in Poland.

# Marketing

Over the past several years changes occurred in methods of distribution
of frozen products, including strawberries, in Poland. The appearance of
new retail outlets throughout Poland has created a demand for national
distribution of frozen products. In the past, Hortex was the only
company capable of delivering their products at the national level.
Currently, two distribution groups have established themselves on the
Polish market - Frozen Food Group and KFD.

Both of these associations are composed of several large distribution
firms which work closely with individual freezing companies and frozen
food producers. Transportation is conducted by a specialized fleet of
freezer trucks contracted from transportation companies. Both
organizations often provide smaller shops with storage freezers used for
storage of

many different frozen products, including strawberries. Some of the
recently privatized freezing companies are trying to serve local markets
with their products. Often, they also provide their own transportation.