Voluntary Report - public distribution

**Date:** 7/13/2004

**GAIN Report Number:** PL4020

PL4020

**Poland**

**Product Brief**

**Grapefruit**

**2004**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Jolanta Figurska, Marketing Specialist

Charlene Kastanek, Agricultural Intern

**Report Highlights:**

Polish consumers are becoming more health conscious; hence they are
eating more fruit. The average Pole consumes almost 7 kilograms of
citrus fruit per year. Exports dropped by 20 percent in 2003, however;
the U.S. market share of grapefruit increased by 3 percent. A reduction
in tariff rates came on May 1, 2004, with the accession of Poland to the
European Union. Tariff rates dropped from 5 percent to 1.5 percent in
the months of November through April, and 2.4 percent in the months of
May through October.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Warsaw \[PL1\]

\[PL\]

**Section I. Market Overview**

Poland, with a population of nearly 38.6 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 foods, like 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 orientated, the future value
of grapefruit sales should appreciate.

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

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

  As a result of the May 1, 2004 EU   European Union members will still
  accession, U.S. tariff charges were have an advantage at a 0% duty
  reduced from 5% to 1.5% in the      rate.
  months of November through April,   
  and 2.4% 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 or
                                      Israeli 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, set up
> through large importers, which have their own distribution channels
> and marketing contacts. Exporters of U.S. grapefruit 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 thus far have been married women
> age 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.
>
> With the average Polish customer consuming 15 kg/per capita of apples
> versus only about 7 kg/per capita of citrus fruits, an increase in
> consumption, especially that of grapefruit and oranges, is expected in
> the near future, according to unofficial sources.
>
> Grapefruit sales in Poland have continued to fall. In 2003, the
> overall grapefruit imports fell by 20 percent from the previous year.
> The U.S. gained 3 percent of the market share from 2002 to 2003.

F**igure 1:**

![](media/image2.wmf)

**Table 1:**

  ------------- ------------ --------- ----------- --------- ----------- ---------
  Grapefruit,                                                            
  Fresh or                                                               
  Dried, 080540                                                          

                2001                   2002                  2003        

  Country       Quantity in  \$1,000   Quantity in \$1,000   Quantity in \$1,000
                Metric Tons            Metric Tons           Metric Tons 

                                                                         

  Turkey        8752         3328      14218       6019      8538        4621

  United States 7164         2873      6578        3195      6048        4232

  Spain         4443         2375      4801        2744      5642        3964

  Israel        7805         4449      5086        3082      3930        2672

  South Africa  2757         1285      4425        1957      3273        2479

  World Total   33408        15473     37999       18216     30362       19964
  ------------- ------------ --------- ----------- --------- ----------- ---------

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 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 different
> 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 importing firms existed on the Polish
> market. In addition to these market leaders, there were an additional
> 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 market is very much price driven. Super and
hypermarkets dominating in the fruit trade are forcing Polish importers
to concentrate only on the cheapest products, while at the same time
requiring high quality. This trend is also evident in the retail sector,
where Turkish grapefruit (2.50-3.50 zls/kg) dominates, followed by U.S.
(3.80-6.99 zls/kg), Spain (3.70-4.00), then by South Africa (4.39-5.39)
products. Once popular Israeli grapefruit is now only available
occasionally on the Polish market due to customers' taste preference for
Florida grapefruit, which is priced at a similar level. (Exchange rate:
\$1.00 = 3.62 zlotys).

As a result of Poland's May 1, 2004, European Union accession, the
import duty assessed on U.S. grapefruits dropped from 5 percent to 1.5
percent during the months of November through April, from May through
October the rate changed to 2.4 percent. This duty reduction is expected
to encourage higher exports of grapefruit from the U.S. to Poland,
however preferential treatment will be given to those nations in the
European Union.

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

**32001R1799**\
Commission Regulation (EC) No 1799/2001 of 12 September 2001 laying 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

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

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