Voluntary Report - public distribution

**Date:** 7/19/2006

**GAIN Report Number:** PL6048

PL6048

**Poland**

**Product Brief**

**Grapefruit**

**2006**

**Approved by:**

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

U S Embassy

**Prepared by:**

Jolanta Figurska, Carl Norden

**Report Highlights:**

Grapefruit sales in Poland decreased dramatically in 2005. In 2005,
grapefruit imports decreased as a result of high prices. The price
increases were driven by low supply as a result of a very active
hurricane season in growing areas. Tariff rates dropped from 5 percent
to 1.5 percent November through April, and 2.4 percent May through
October as a result of Poland\'s EU accession in May of 2004.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Warsaw \[PL1\]

\[PL\]

# Section I. Market Overview

Poland, with a population of roughly 38.5 million people, is the largest
market in Central Europe. The country has been successful at attracting
foreign investors in the food processing industry as the wholesale and
retail sectors continue to grow. The hypermarkets and supermarkets are
prime examples of this rapidly changing industry. The number of
hypermarkets is expected to double or even triple over the next several
years. With this growth, strong markets for fruits, such as grapefruit,
that were not always accessible before the transformation period
(1990\'s), have now emerged.

The groundwork for grapefruit sales to Poland can be traced to the food
deficits of the 1980\'s. During that time, shortages of food and most
other goods were common. As a result, grapefruit was often given as a
present for Christmas and other holidays. Grapefruit was considered
exotic and healthy. The first grapefruits marketed here were white
(white marsh seedless), however pink (ruby red, flames) and red (star
ruby) varieties soon became the grapefruit of choice. Today, grapefruit
is consumed primarily as a breakfast item or salad ingredient. As Polish
consumers become more affluent and health conscious, the future value of
grapefruit sales should appreciate.

  ----------------------------------- -----------------------------------
  **Advantages**                      **Disadvantages**

  Polish consumers are becoming more  Polish consumers misjudge Turkish
  health conscious hence all fruits,  grapefruits as higher quality due
  including grapefruit, are gaining   to outward appearance when compared
  popularity.                         to U.S. products.

  As a result of EU accession in May  European Union members have the
  of 2004, tariffs were reduced on    advantage of the duty free open
  U.S. grapefruits from 5 percent to  market.
  1.5 percent in the months of        
  November through April, and 2.4     
  percent May through October.        

  Retail space for grapefruit is      Polish consumers prefer the least
  growing with supermarket and        expensive grapefruit available,
  hypermarket expansion.              which often favors Turkish products
                                      and hinders U.S. exports
  ----------------------------------- -----------------------------------

# Section II. Market Sector Opportunities and Threats

## 

## 1) Entry Strategy

Contacting the right importer will help a business enter the Polish
grapefruit market. Most supermarkets, hypermarkets and specialty shops
buy a majority of their fresh produce through wholesalers. These
wholesalers have contacts with large importers and maintain their own
distribution channels and marketing contacts. Exporters of U.S.
grapefruits may obtain a list of current importers by contacting the
Office of Agricultural Affairs of the U.S. Embassy in Warsaw (see
Section V).

## 2) Market Size, Structure, Trends

The primary consumers of grapefruit are married women 30‑50 years old.
It has been noted that older consumers (55‑65 years old), buy smaller
amounts of fruit, but on a more regular basis. Polish consumers have a
strong preference for pink (ruby red, flame) and red (star ruby)
varieties.

With the average Pole consuming 15 kg of apples versus approximately 7
kg of citrus fruits, an increase in consumption, especially that of
grapefruit and oranges, is expected in the near future, according to
trade sources.

Grapefruit sales in Poland increased in 2004, but dramatically decreased
in 2005. The decrease can be attributed to low supply from the U.S. as a
result of a very active hurricane season, and high prices compared to
Turkish and Israeli grapefruit. This dramatic decrease in imports is
temporary, and imports are expected to increase in 2006.

![](media/image9.wmf)

**Poland Import Statistics**

Grapefruit, Fresh Or Dried, 080540

  ------------------ ---------- ---------- -------------- ---------- -------------- ---------- --------------
  Year Ending:                                                                                 
  December 2005                                                                                

  **Partner          **Unit**   **2003**                  **2004**                  **2005**   
  Country**                                                                                    

                                **USD**    **Quantity**   **USD**    **Quantity**   **USD**    **Quantity**

  World              T          19964305   30361          23279286   31687          22873031   27234

  Netherlands        T          12624      16             4945466    5262           8602948    9514

  Turkey             T          4621258    8538           6720657    11615          5062380    6612

  Spain              T          3963915    5642           3189125    3827           2452095    2735

  Germany            T          3772       5              1527006    1714           2109468    2654

  Israel             T          2671498    3930           1641767    2376           1675010    2059

  Belgium            T          0          0              495811     571            785143     956

  United States      T          4232335    6048           3599999    4778           744228     568

  France             T          664        0              247913     197            477111     566

  Cyprus             T          251818     430            287206     473            402762     638

  Czech Republic     T          4424       3              9252       21             114535     276

  Argentina          T          759846     1073           86003      167            109907     187

  Austria            T          0          0              138012     138            94844      147

  Italy              T          91450      144            101604     145            66404      97

  Uruguay            T          14903      24             27912      49             37594      63

  Slovenia           T          0          0              51194      66             32429      48

  Greece             T          129801     233            111947     145            24541      26

  Ukraine            T          16165      19             0          0              20629      20

  Lithuania          T          0          0              10409      12             19293      18

  Syria              T          0          0              14743      30             17628      19

  Hungary            T          304        1              17575      18             15787      19

  United Kingdom     T          0          0              0          0              8294       13
  ------------------ ---------- ---------- -------------- ---------- -------------- ---------- --------------

Source: Global Trade Atlas

It is important to note that Poland is an important transshipment point
for grapefruit. According to some Polish importers, large shipments,
constituting as much as 10 percent of the volume of imports of U.S.
grapefruits, are purchased from intermediaries in Europe (mostly through
the Netherlands) and may not be listed as a final destination point on
U.S. export documentation, thus not appearing on U.S. statistics.

From 1996‑2000, the Florida Department of Citrus (FDOC) was very active
in the Polish market and marketed its product during the winter months
to take advantage of the seasonal market. Using a variety of promotional
techniques (in‑store promotions, production of Polish language leaflets,
etc.), the FDOC helped stimulate an increase of grapefruit exports to
Poland over the past few years.

## 3) Company Profiles

## 

In the early 90\'s several large importers existed on the Polish market.
In addition to these market leaders, there were 20-30 smaller, local
importers/distributors of grapefruit. This market organization was
maintained until the year 2000. During 2000, huge market changes
occurred in the area of fresh fruit and vegetable distribution. This
change occurred due to the worsening economic situation in Poland at
that time. In addition, some of the larger super and hypermarket chains
operating in Poland organized their own import/distribution departments.
Currently, there are 5-6 large importers of fruits and vegetables on the
Polish market.

# Section III. Costs & Prices

Currently, the Polish grapefruit market is price driven. Super and
hypermarkets dominating the fruit trade are forcing Polish importers to
concentrate only on the cheapest products, while at the same time
requiring high quality. With high prices for Florida grapefruit in 2005,
the demand sank, resulting in very low imports.

This trend is also evident in the retail sector where Turkish grapefruit
dominates because of price, followed by the United States, Spain, and
South Africa in typical years. Once popular Israeli grapefruit is now
only available occasionally on the Polish market due to customers' taste
preference for Turkish and Florida grapefruit.

In July 2006, Florida grapefruits cost about \$2.86/kg on the market.
This was about \$0.60 to \$1.00 more expensive than Turkish and other
grapefruits.

As a result of Poland's accession to the European Union in May 2004, the
import duty for U.S. grapefruits dropped from 5 percent to 1.5 percent
from November to April, and 2.4 percent from May to October. This duty
reduction is expected to encourage higher exports of grapefruit from the
U.S. to Poland.

# Section IV. Market Access

Shipments of fresh fruits require a phytosanitary certificate. Any
shipment containing prohibited organisms (fungi, viruses, bacteria,
insects, mites, weeds) will be prohibited from entering Poland.

Detailed information on EU standards concerning citrus fruits can be
obtained from the following Internet address (as prepared by the USDA
Foreign Agricultural Service, U.S. Mission to the European Union):

[http://www.useu.be/agri/Fruit-Veg.html]{.underline}

**32001R1799**\
Commission Regulation (EC) No 1799/2001 of 12 September 2001 lays down
the marketing standard for citrus fruit.

# Section V. Key Contacts and Further Information

For more information concerning market entry and a current importer list
contact:

Embassy of the United States of America

Office of Agricultural Affairs, Warsaw, Poland

e-mail: [agwarsaw@usda.gov]{.underline} or
[agwarsaw@poczta.onet.pl]{.underline}

tel: (48 22) 504 2336, fax: (48 22) 504 2320