Required Report - public distribution

**Date:** 3/21/2006

**GAIN Report Number:** PL6015

PL6015

**Poland**

**Stone Fruit**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Charles Rush

FAS

**Prepared by:**

CR/NK

**Report Highlights:**

The reduced harvest of stone fruit in 2005, due inclement weather,
resulted in a 50 percent reduction in exports of fresh and processed
fruit, but an increase in imports. The decrease was mostly in plums and
cherries. It is too early to predict the 2006 crop, however, the
unusually cold winter of 2005/2006 could result in favorable climatic
conditions in spring and summer which could result in a good crop of
stone fruit in MY 2006/2007.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Warsaw \[PL1\]

\[PL\]

Table of Contents

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

[Production 3](#production)

[Processing 3](#processing)

[Consumption 4](#consumption)

[Trade 4](#trade)

[Quality requirements 4](#quality-requirements)

[Financial support for creation and functioning of producer groups and
organizations.
4](#financial-support-for-creation-and-functioning-of-producer-groups-and-organizations.)

[Export subsidies 5](#export-subsidies)

[TABLES 6](#tables)

[Plums - PSD 6](#plums---psd)

[Plums -- Exports 7](#plums-exports)

[Plums -- Imports 8](#plums-imports)

[Fresh Cherries -- PSD 9](#fresh-cherries-psd)

[Fresh Cherries -- Exports 10](#fresh-cherries-exports)

[Fresh Cherries -- Imports 11](#fresh-cherries-imports)

[Apricots -- PSD 12](#apricots-psd)

[Apricots -- Exports 13](#apricots-exports)

[Apricots -- Imports 14](#apricots-imports)

# Executive Summary

Fruit production in Poland in 2005 followed a pattern of low production
throughout Europe. The primary reason for low production was harsh
winter weather. Fruit production declined by 18 percent to 2.9 million
tons compared with 2004. The deepest decline was in cherry (32 percent)
and plum (25 percent) production. Reflecting the decline in production,
processed fruit production is expected to be lower in MY 2005/2006 as
well. The decline in production compounded by a growing demand from
local processors will result in lower exports of frozen fruit.

Reduced supply and growing demand for Polish fresh and processed fruit
has contributed to higher export prices and influenced local market
prices upward. Thus far cherry and plum prices have increased most
significantly. Due to the 2005 low crop, exports decreased by about 50
percent, while imports doubled. The fruit processing sector has enjoyed
an improved economic situation since 2002 in part due to the growth and
strength of the largest companies and the closure of weaker companies.

Poland's EU accession did not have a major impact on its internal
horticultural products market. In spite of the elimination of high
duties, imports of similar products remained unchanged. As did Polish
exports to the EU, since in most cases the duties had been eliminated
prior the EU accession. Total support for Poland's fresh and processed
horticultural sector from May 1, 2004 -- September 30, 2005 amounted to
about PLN 30 million (about US\$9 million). The majority of EU support
was targeted at production groups and organizations; however, the groups
are weak and disorganized. As a result, they have not been able to fully
utilize EU support.

# 

# Production

According to the Polish Main Statistical Office (MSO), fruit production
in Poland reached 2.9 million tons in 2005, a decrease of 18 percent
compared to the large crop in 2004. This situation was caused mainly by
severe climatic conditions (frost, rain and cold temperatures during the
blooming periods, as well as droughts in summer and fall). The biggest
decrease was in cherry production -- 31.6 percent down (138,000 tons
compared with 202,000 tons in 2004). The production of plums was 20
percent lower comparatively.

The purchase prices for sweet and sour cherries and plums were much
higher in 2005 than in 2004. Prices for frozen sour cherries were PLN
2.4 (US\$0.75) per kilogram, while for juice -- PLN 1.45 (US\$0.45).
Compared to very low prices in 2004, the purchase prices for cherries
have increased more than 120 percent in MY 2005/2006. Plum purchase
prices increased 100 percent, and the purchase prices for sweet cherries
increased 10-20 percent, compared with 2004 season prices.

# Processing

In MY 2005/2006, total production of processed fruit will be lower than
in the previous MY. The biggest decrease will be in frozen sour cherries
(from 85,000 to 65-70,000 tons) and plums (from 15,000 to 8-10,000
tons). The percentage of frozen sour cherries in total frozen fruit
production will decrease from 25 to 20 percent.

Smaller crops will negatively impact juice production. The biggest
decrease will be in concentrated sour cherry juice production -- from
10,000 to 2-3,000 tons. Also, the production of jams and compotes from
sour cherries will be lower, due to lower fruit production and high
prices.

# Consumption

According to the MSO, the consumption of fresh and processed fruit
increased in 2004 by 0.5 kilogram to 55 kilogram per person. According
to the Institute of Rural Economics, the consumption of fruit in 2005
was down by 1.0 kilogram per person compared to 2004. This could be the
result of the smaller supply, as well as higher retail prices for local
and imported products. Although, the consumption of processed fruit in
2005 is expected to be kept at the 2004 level of 8 kilogram per person,
and 16 kilogram per person for fruit and fruit-vegetable juices and
drinks.

# Trade

Based on 11 months of 2005 of official trade data, the export value in
MY 2005/2006 might decrease 2 percent compared with the previous MY. The
value of exported processed fruit will increase, while the value of
exported fresh fruit will be lower. The prices of frozen fruit will
increase however, quantities will be smaller because of the smaller crop
(from 292,000 tons in MY 2004/2005 to 240,000 tons in MY 2005/2006).

Prices for frozen sour cherries will be twice as high (from EUR 0.7 per
kilogram in the previous season up to EUR 1.3 per kilogram) and about
20-23 percent higher for frozen plums (from EUR 0.65 per kilogram to EUR
0.8 per kilogram). Also, the price for concentrated juice from soft
fruit will increase this season; concentrated sour cherry juice will
increase the most (from EUR 2 per kilogram up to EUR 4 per kilogram).
Poland primarily supplies neighboring countries, such as Russia and
Belarus, as well as EU countries.

In CY 2005 imports were higher than usual. Imports of all stone fruit
almost doubled: plums from 976 tons in 2004 up to about 2,000 tons in
2005; cherries (tart and sweet) from 560 tons to about 1,000 tons,
apricots from 1,699 to 4,400 tons. The main suppliers are southern EU
countries, as well as South Africa and Chile.

# Quality requirements

Since 2005, Poland's common quality standards for peaches, nectarines,
and plums have been harmonized with the EU's (see:
<http://www.cpvo.eu.int/others.php?res=1&w=792&h=510&lang=en&page=QT/fruit.htm>).

# Financial support for creation and functioning of producer groups and organizations. 

Approved producer groups may receive support equal the total value of
the paid membership of the organization, but not more than 4.1 percent
of their production value (EUR 100,000 in Poland) and 50 percent of the
organization's expenses for establishment and administration of the
group. The EU financial support for creation of producer groups and
their administrative expenses is fixed as a percent of the value of
group production (minimum EUR 50,000) as well as coverage of a portion
of their investments. The EU portion is 50 percent of qualified
investment costs; the Government of Poland will cover 25 percent of
these costs.

As of November 2005, there were 9 producer organizations and 36 producer
groups registered according to the Act on organization of fruit and
vegetables, yeast, tobacco and dry feeds markets. Between May 1, 2004
and September 30, 2005, payments to producer organizations amounted to
PLN 346,500 (US\$108,280), and PLN 1.1 million (US\$343,750) to producer
groups. No producer organizations have claimed support for unsold fresh
produce since May 1, 2004.

# Export subsidies

In 2005, exports of fresh or processed horticultural products to third
countries were subsidized. Exports of peaches and nectarines were
subsidized only during the period September 16 - November 15. The
subsidies have not been changed considerably for exports of processed
sour and sweet cherries. From May 1, 2004 -- September 2005, Polish
exports of 30.7 million tons of fresh fruit were subsidized in the
amount of PLN 4 million (US\$1.25 million) - detailed data about stone
fruit is not available.

###### Export subsidies in EU

  --------------------------------- --------------------- --------- ------------
  Product                           Period                EUR/ton   Quantities
                                                                    in tonnes

                                                                    

  sour and sweet cherries           Oct 25, 2005 - Feb    50        2853
  temporarily preserved             23, 2006                        

  sour and sweet cherries candied   Now 16, 2005 - Jan    153       293
  (crystallized)                    16, 2007                        
  --------------------------------- --------------------- --------- ------------

Source: EC regulations

# TABLES

## Plums - PSD 

  ----------------- ------------ ----------------- ---------- ----------------- ------------ ----------------- ---------
  **Country**       **Poland**                                                                                 

  **Commodity**     **Fresh                                                     (HA)(1000                      
                    Plums &                                                     TREES)(MT)                     
                    Prunes**                                                                                   

                    2004         Revised           2005       Estimate          2006         Forecast          UOM

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

  **Market Year                  01/2005                      01/2006                        01/2007           MM/YYYY
  Begin**                                                                                                      

  Area Planted      25500        25500             25500      25500             0            25500             (HA)

  Area Harvested    0            0                 0          0                 0            0                 (HA)

  Bearing Trees     14000        14000             14000      14000             0            14000             (1000
                                                                                                               TREES)

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

  Total Trees       14000        14000             14000      14000             0            14000             (1000
                                                                                                               TREES)

  Commercial        125000       133000            125000     100000            0            125000            (MT)
  Production                                                                                                   

  Non-Comm.         0            0                 0          0                 0            0                 (MT)
  Production                                                                                                   

  TOTAL Production  125000       133000            125000     100000            0            125000            (MT)

  TOTAL Imports     900          976               700        2000              0            1000              (MT)

  TOTAL SUPPLY      125900       133976            125700     102000            0            126000            (MT)

  Domestic Fresh    3000         5000              3000       3000              0            4500              (MT)
  Consumption                                                                                                  

  Exports, Fresh    19000        20400             17000      10000             0            18000             (MT)
  Only                                                                                                         

  For Processing    100000       104676            102000     84000             0            100000            (MT)

  Withdrawal From   3900         3900              3700       5000              0            3500              (MT)
  Market                                                                                                       

  TOTAL UTILIZATION 125900       133976            125700     102000            0            126000            (MT)
  ----------------- ------------ ----------------- ---------- ----------------- ------------ ----------------- ---------

## Plums -- Exports

  ---------------- ----------------------------- -------------- ----------
  **Country**      Poland                                       

  **Commodity**    Fresh Plums & Prunes                         

  Time Period      Jan-Dec                       Units:         MT

  Exports for:     2004                                         **2005**

  U.S.                                           U.S.            

  Others                                         Others         

  Russia           11442                         Russia         3789

  Germany          2457                          Germany        2480

  Czech Rep.       2276                          Czech Rep.     1549

  Lithuania        1004                          Latvia         419

  Latvia           997                           Lithuania      384

  Estonia          670                           Hungary        285

  Slovakia         645                           Slovakia       169

  Belarus          253                           Estonia        91

  Austria          216                           Belarus        60

  Hungary          200                                           

  Total for Others 20160                                        9226

  Others not       256                                          106
  Listed                                                        

  Grand Total      20416                                        9332

                                                                

  The 2005 data                                                 
  covers first                                                  
  eleven months.                                                
  ---------------- ----------------------------- -------------- ----------

## Plums -- Imports

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

  **Country**      Poland                                       

  **Commodity**    Fresh Plums & Prunes                         

  Time Period      Jan-Dec                       Units:         MT

  Imports for:     2004                                         **2005**

  U.S.                                           U.S.            

  Others                                         Others         

  Spain            222                           Spain          786

  Belgium          177                           Germany        327

  France           112                           Netherlands    317

  Germany          110                           Italy          127

  South Africa     105                           Portugal       123

  Chile            75                            Hungary        90

  Greece           66                            France         87

                                                                 

                                                                 

                                                                 

  Total for Others 867                                          1857

  Others not       109                                          117
  Listed                                                        

  Grand Total      976                                          1974

                                                                

  The 2005 data                                                 
  covers first                                                  
  eleven months.                                                
  ---------------- ----------------------------- -------------- ----------

## Fresh Cherries -- PSD

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

  **Country**       **Poland**                                                                                              

  **Commodity**     **Fresh                                                                  (HA)(1000                      
                    Cherries,(Sweet&Sour)**                                                  TREES)(MT)                     

                    2004                      Revised           2005       Estimate          2006         Forecast          UOM

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

  **Market Year                               01/2005                      01/2006                        01/2007           MM/YYYY
  Begin**                                                                                                                   

  Area Planted      49500                     49500             50000      50000             0            50000             (HA)

  Area Harvested    49500                     49500             50000      50000             0            50000             (HA)

  Bearing Trees     27400                     27400             27400      27400             0            27500             (1000
                                                                                                                            TREES)

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

  Total Trees       27400                     27400             27400      27400             0            27500             (1000
                                                                                                                            TREES)

  Commercial        249000                    250000            250000     177000            0            250000            (MT)
  Production                                                                                                                

  Non-Comm.         0                         0                 0          0                 0            0                 (MT)
  Production                                                                                                                

  TOTAL Production  249000                    250000            250000     177000            0            250000            (MT)

  TOTAL Imports     700                       560               500        1000              0            500               (MT)

  TOTAL SUPPLY      249700                    250560            250500     178000            0            250500            (MT)

  Domestic Fresh    9500                      9500              9700       5000              0            9000              (MT)
  Consump                                                                                                                   

  Exports, Fresh    17000                     19374             17000      10500             0            20000             (MT)
  Only                                                                                                                      

  For Processing    172000                    173686            175000     132500            0            176500            (MT)

  Withdrawal From   51200                     48000             48800      30000             0            45000             (MT)
  Market                                                                                                                    

  TOTAL UTILIZATION 249700                    250560            250500     178000            0            250500            (MT)
  ----------------- ------------------------- ----------------- ---------- ----------------- ------------ ----------------- ---------

## Fresh Cherries -- Exports

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

  **Country**          Poland                                       

  **Commodity**        Fresh                                        
                       Cherries,(Sweet&Sour)                        

  Time Period          Jan-Dec                 Units:               MT

  Exports for:         2004                                         **2005**

  U.S.                                         U.S.                 

  Others                                       Others               

  Russia               9830                    Russia               7509

  Germany              3224                    Germany              982

  Netherlands          2087                    Latvia               595

  Latvia               1007                    Belgium              379

  Belgium              816                     Belarus              350

  Belarus              602                     Lithuania            246

  Estonia              394                     Estonia              121

  Czech Rep.           359                     Netherlands          97

                                                                    

                                                                    

  Total for Others     18319                                        10279

  Others not Listed    1055                                         97

  Grand Total          19374                                        10376

                                                                    

  The 2005 data covers                                              
  first eleven months.                                              
  -------------------- ----------------------- -------------------- --------------

## Fresh Cherries -- Imports

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

  **Country**          Poland                                       

  **Commodity**        Fresh                                        
                       Cherries,(Sweet&Sour)                        

  Time Period          Jan-Dec                 Units:               MT

  Imports for:         2004                                         **2005**

  U.S.                                         U.S.                 

  Others                                       Others               

  Denmark              328                     Hungary              411

  Greece               196                     Czech Rep.           182

  Hungary              31                      Greece               152

                                               Ukraine              68

                                               Serbia               55

                                                                    

                                                                    

                                                                    

                                                                    

                                                                    

  Total for Others     555                                          868

  Others not Listed    5                                            88

  Grand Total          560                                          956

                                                                    

  The 2005 data covers                                              
  first eleven months.                                              
  -------------------- ----------------------- -------------------- --------------

## Apricots -- PSD

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

  **Country**       **Poland**                                                                                 

  **Commodity**     **Fresh                                                     (HA)(1000                      
                    Apricots**                                                  TREES)(MT)                     

                    2004         Revised           2005       Estimate          2006         Forecast          UOM

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

  **Market Year                  01/2005                      01/2006                        01/2007           MM/YYYY
  Begin**                                                                                                      

  Area Planted      1800         1700              1900       1700              0            1700              (HA)

  Area Harvested    0            0                 0          0                 0            0                 (HA)

  Bearing Trees     700          700               700        700               0            700               (1000
                                                                                                               TREES)

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

  Total Trees       700          700               700        700               0            700               (1000
                                                                                                               TREES)

  Commercial        5000         4900              5000       3500              0            4500              (MT)
  Production                                                                                                   

  Non-Comm.         0            0                 0          0                 0            0                 (MT)
  Production                                                                                                   

  TOTAL Production  5000         4900              5000       3500              0            4500              (MT)

  TOTAL Imports     1556         1699              1500       4400              0            1700              (MT)

  TOTAL SUPPLY      6556         6599              6500       7900              0            6200              (MT)

  Domestic Fresh    1000         1000              1000       900               0            1000              (MT)
  Consump                                                                                                      

  Exports, Fresh    1114         1136              1000       700               0            1100              (MT)
  Only                                                                                                         

  For Processing    3000         3021              3000       3800              0            3000              (MT)

  Withdrawal From   1442         1442              1500       2500              0            1100              (MT)
  Market                                                                                                       

  TOTAL UTILIZATION 6556         6599              6500       7900              0            6200              (MT)
  ----------------- ------------ ----------------- ---------- ----------------- ------------ ----------------- ---------

## Apricots -- Exports

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

  **Country**          Poland                              

  **Commodity**        Fresh Apricots                      

  Time Period          Jan-Dec        Units:               MT

  Exports for:         2004                                **2005**

  U.S.                                U.S.                 

  Others                              Others               

  Russia               880            Russia               400

  Czech Rep.           166            Czech Rep.           45

  Belarus              55             Latvia               16

  Slovakia             33             Belarus              14

  Estonia              2              Lithuania            4

                                      Germany              4

                                      Slovakia             2

                                      Sweden               1

                                                           

                                                           

  Total for Others     1136                                486

  Others not Listed                                        

  Grand Total          1136                                486

                                                           

  The 2005 data covers                                     
  first eleven months.                                     
  -------------------- -------------- -------------------- --------------

## Apricots -- Imports

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

  **Country**          Poland                              

  **Commodity**        Fresh Apricots                      

  Time Period          Jan-Dec        Units:               MT

  Imports for:         2004                                **2005**

  U.S.                                U.S.                 

  Others                              Others               

  Italy                430            Greece               1412

  France               358            France               821

  Greece               356            Netherlands          759

  Spain                214            Spain                737

  Netherlands          179            Italy                294

  Germany              97             Germany              197

  Hungary              50             Belgium              77

  Austria              13             Austria              33

  South Africa         1                                   

                                                           

  Total for Others     1698                                4330

  Others not Listed    1                                   53

  Grand Total          1699                                4383

                                                           

  The 2005 data covers                                     
  first eleven months.                                     
  -------------------- -------------- -------------------- --------------