Report from the Commission to the Council and the European Parliament on the situation of the sector of soft fruits and cherries intended for processing {SEC(2006) 838}
Date: 2006-06-28
Institutions: European Commission
Subjects: agro-industry, enlargement of the Union, report, soft fruit, stone fruit

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.6.2006 
COM(2006) 345 final 

REPORT FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

on the situation of the sector of soft fruits and cherries intended for processing 

{SEC(2006) 838} 

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•  Foreword 

In  the  Presidency  conclusions  concerning  the  simplification  of  the  common 
organisation  of  the  market  for  fruit  and  vegetables  in  November  2004,  the 
Commission was requested to carry out an analysis of the new situation of the sector 
of soft fruits and other red fruits intended for processing in the EU markets resulting 
from the enlargement and, if necessary, to bring forward proposals to address specific 
problems. 

The present document provides the major elements of the analysis carried out by the 
Commission Services and draws conclusions on EU policies. It is accompanied by a 
Commission  Staff  Working  Document  which  develops  an  in-depth  review  of  the 
situation in the sector of soft fruits and other red fruits intended for processing. 

1. 

CONTEXT 

The present document focuses on cherries (sour cherries, Prunus Cerasus, and sweet 
cherries,  Prunus  Avium)  and  on  the  so-called  soft  fruits.  The  term  soft  fruit  usually 
covers three groups of fruits: the berry fruits (genus Rubus and Morus); the currants 
(genus  Ribes)  and  blueberries  (genus  Vaccinium);  and  the  achenes  or  false  fruits 
(genus Fragaria, i.e. the strawberries). 

The sector of soft fruits and cherries for processing faced a difficult 2004 year with 
low producer prices for several products (in particular blackcurrants, strawberries and 
sour cherries) in several Member States. Low prices affected also several products in 
2005 (in particular strawberries and blackcurrants). 

Accession to the EU of new Member States with a sizeable sector of soft fruits and 
other red fruits for processing changed considerably the overall picture of the sector 
in  the  EU.  With  the  addition  of  two  important  producers,  Hungary  and  Poland,  the 
EU became the world’s largest producer of soft fruit for the processing industry.  

2. 

ANALYSIS OF THE SITUATION OF THE SECTOR 

2.1.  Major features of the sector in the EU 

At  EU  level,  areas  under  soft  fruits  and  sour  cherries1  cover  0.25%  of  total  arable 
land. The significance of the sector is the highest in the Northern European countries 
with the exceptions of strawberries and sweet cherries. With a share of 1.10%, Poland 
is the country where the sector has the greatest weight. With the enlargement of 2004, 
the EU production of soft fruits (currants, gooseberries, raspberries and strawberries) 
and  sour  cherries  increased  significantly:  the  cultivated  area  jumped  from  69 000 
hectares in the EU-15 to 237 000 hectares in the EU-25 on average in 2002–2004, of 
which 141 000 hectares in Poland. 

With the exception of currants and cherries for which the harvest can be mechanised, 
soft  fruit  production  is  labour  intensive.  Given  that  prices  on  the  processing  market 

1 

The sweet cherry is not considered here as the share of the processing market in overall production is 
lower (around 10%) than for the other fruits. 

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are lower than on the fresh market, competitive pressure entails that the sector of soft 
fruit for processing is located mainly in countries with low labour costs.  

Soft fruits are often part of a narrow range of possible crops in less-favoured regions 
(e.g.  semi  mountainous  areas).  In  addition  the  possibility  to  produce  soft  fruit  on  a 
small  scale  entails  that  the  sector  is  particularly  suited  to  small  farms  that  are  often 
predominant in less favoured or semi mountainous areas. On these farms, soft fruits 
allow  a  better  use  of  family  labour  force.  They  often  provide  additional  income  to 
part-time farmers. 

While  the  sector  has  a  limited  economic  size  in  the  overall  agriculture,  it  is  often 
concentrated  in  specific  regions  in  producing  countries.  Hence  it  can  contribute 
significantly to the regional economy.  

2.2.  Major features of the sector in Poland 

Poland represents two thirds of all EU soft fruits and sour cherries produced for the 
processing industry.  

In  the  last  15  years,  the  orchard  area  has  been  rather  stable  in  the  range  of  
260–290 000  hectares.  Out  of  this,  around  15%  are  devoted  to  berry  and  currant 
bushes  (currants,  gooseberries,  raspberries  and  other  bushes)  and  10%  to  sour 
cherries. Areas devoted to strawberries have fluctuated in the last 15 years (the lowest 
was 38 000 hectares in 2002 and the highest was 65 800 hectares in 2001). 

Soft fruit production is concentrated regionally. Its significance is the highest in three 
voivodships  which  represent  around  55%  of  national  soft  fruit  and  sour  cherry 
production  in  2002–2004:  Lubelskie  (24.1%  of  total  production  in  volume), 
Mazowieckie (20.9%) and Łódzkie (11.4%). 

In  the  context  of  a  high  level  of  unemployment  in  rural  areas  and  small  farm 
structures,  the  sector  of  soft  fruit  for  processing  represents  an  important  source  of 
income and labour. It is estimated that the overall fruit and vegetable sector provides 
the  equivalent  of  250 000  full  time  jobs  (production,  marketing,  processing).  In  the 
soft fruit and cherry sector only, this would amount to around 80 000 full time jobs. 

There is a predominance of small holdings in the sector, although consolidation has 
taken place in the last 15 years. In the case of blackcurrants and sour cherries, farms 
with  an  area  larger  than  one  hectare  of  the  fruits  represent  around  two  thirds  of 
national production.  

Fragmentation  of  production  is  compounded  by  a  low  level  of  organisation.  For  all 
fruits  and  vegetables,  the  organised  sector  (Producer  Groups  and  Producer 
Organisations)  represents  only  2%  of  total  marketed  production  of  fruit  and 
vegetables. 

Owing  to  the  fragmentation  of  supply  of  most  soft  fruits,  fruits  are  gathered  in 
collection  centres  which  are  disseminated  in  villages  throughout  production  regions 
and  transported  to  the  industry.  Large  farms  usually  sell  directly  to  the  industry.  A 
minor  share  (estimated  at  10–15%)  of  supply  of  soft  fruits  and  sour  cherries  to  the 
industry  takes  place  within  the  framework  of  contracts  between  producers  and 
processors. 

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2.3. 

Situation in the major sub-sectors 

For  soft  fruits,  the  review  has  focused  on  cultivated  fruits  and  major  types: 
blackcurrants,  raspberries  and  strawberries.  Together  these  fruits  account  for  more 
than 90% of soft fruit production for the industry. For cherries, separate analysis has 
been carried out for sour and sweet cherries.  

2.3.1. 

Strawberries 

In  the  EU,  production  of  strawberries  specifically  for  the  processing  industry  is 
mainly located in Poland. In the other Member States, strawberries are produced for 
the fresh market, although minor quantities are sold to the industry. Poland represents 
around  60%  of  all  EU  supply  in  strawberries  for  the  industry.  The  share  of  EU-25 
imports  of  frozen  strawberries  from  third  countries  in  the  total  EU  supply  of 
strawberries used by the processing industry has increased from less than 20% until 
2001/2002 to 38% in 2003/2004. 

Prices  (of  strawberries  for  the  processing  industry  and  of  frozen  strawberries)  have 
collapsed in the EU in 2004 and 2005 due to the combined pressure of an increased 
EU  production  in  comparison  to  previous  years  and  increased  cheap  imports  from 
third countries, in particular from China. 

The major features of the strawberry sector in Poland can be summed up as follows: 

•  due  to  relatively  low  investment  costs,  production  of  strawberries  for  processing 
has  become  an  additional  source  of  income  for  numerous  households  in  rural 
areas. From the social point of view, the sector plays a considerable role in rural 
areas. It is estimated that in 2002 two thirds of production originated from the 10% 
of farms that had an area larger than 0.5 hectares. The other 90% of farmers, with 
an  area  of  strawberries  below  0.5  hectare,  produced  one  third  of  all  Polish 
production; 

•  the sector is specialised in the cultivation of the cultivar Senga Sengana, a popular 
cultivar for the processing industry. On the other hand, this cultivar is not suited to 
the fresh market, produces low yields with a harvest season that is extremely short 
and  harvested  volumes  can  vary  widely  depending  on  weather  conditions.  These 
features,  together  with  the  increase  in  imports  over  the  last  years  from  third 
countries,  place  pressure  on  its  cultivation  under  the  current  conditions  of  low 
prices, especially for the larger commercial farms; 

•  the  low-price  imports,  the  fluctuations  in  market  demand  and  the  multiplicity  of 
producers  and  semi-processors  together  with  the  own  features  of  the  Senga 
Sengana generate price fluctuations year-on-year that can be further amplified by 
the level of demand for frozen strawberries of the EU food industry; 

•  Senga Sengana spoils quickly after harvest and appropriate post-harvest handling 
is  necessary  (in  particular  cooling).  Marketing  to  the  industry  is  fragmented  and 
marginal  volumes  are  sold  in  the  framework  of  contracts.  Given  current 
international competition and low prices, it does not seem likely that contracts that 
include price arrangements will extend beyond sub-sectors that have specific needs 
(e.g. baby food, high quality jams). Research undertaken in view of addressing the 
challenges  facing  the  cultivation  of  Senga  Sengana  include  techniques  of 
ecological  fruit  production,  new  cultivation  methods  and  better  techniques  for 
protection against grey mould. 

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Current low prices of strawberries for processing in the EU make it more difficult for 
the fresh strawberry sector in some Member States to use the outlet of the processing 
industry as a regulator of the fresh market. 

EU  demand  for  semi-processed  strawberries  has  increased  dynamically  since  the 
1990s. However, growth has concerned to a large extent the fruit preparation industry 
which is not, for a large part of its products, dependent on a specific cultivar. Growth 
also  concerns  the  juice  and  drink  industry.  On  the  other  hand,  the  needs  of  the  jam 
industry are stable. 

2.3.2.  Blackcurrants 

Blackcurrants  are  grown  in  Northern  European  Member  States,  with  Poland  alone 
representing  70%  of  EU  production.  The  EU  is  the  world’s  largest  producer, 
production  in  third  countries  is  relatively  limited  and  the  EU  imports  negligible 
quantities  of  blackcurrant.  Prices  of  raw  material  and  semi-processed  products  have 
collapsed  since 2003  due  to an increase of production of blackcurrants from almost 
150 000  tonnes  on  average  in  1998–2002  to  200 000  tonnes  in  2003  and  2004. 
Production  has  reached  record  levels  while  consumption  of  the  final  food  products 
(mainly  fruit-based  drinks)  has  not  shown  a  similar  dynamism  and  prospects  for 
exports outside the EU are rather limited. The economy of the product is governed by 
a production cycle of around 10–12 years generated by the propensity of producers to 
create  new  plantations  when  prices  are  high,  paving  the  way  for  a  subsequent  price 
collapse. 

Adjustment of areas under cultivation needs to take place, so that production comes 
back to more appropriate levels. Grubbing up of excess plantations is one of the tools 
usually  applied  by  the  farmers.  Blackcurrants  are  a  multi-annual  crop  and  are 
integrated  in  the  crop  rotation  on  the  farm.  Therefore,  grubbing  up  of  excess  areas 
also takes place as part of the rotation system applied by the farmers.  

On  the  demand  side,  consumption  of  food  products  incorporating  blackcurrants  is 
stable or even decreasing. Blackcurrant products suffer from the competition of other 
products  (orange  juices,  cranberry  juices,  etc.).  Consumption  could  increase  with 
more promotion and product innovation. 

2.3.3.  Raspberries 

Since  the  enlargement  of  2004,  EU  production  of  raspberries  has  increased  from 
28 000  tonnes  to  87 000  tonnes  (averages  in  2002–2004)  with  two  new  large 
producers: Poland (with 48 000 tonnes) and Hungary (10 000 tonnes). The processing 
industry  is  the  primary  destination  of  the  fruits  in  the  two  new  Member  States 
whereas it plays a minor role in the other Member States with the exception of France 
where around 10% of production is sold to the industry. In the United Kingdom, the 
sector  in  Scotland  used  to  work  mainly  for  the  industry.  However,  for  lack  of 
competitiveness  the  sector  shifted  almost  entirely  towards  the  fresh  market  in  the 
beginning of the 2000s. 

EU-25  supply  in  raspberries  for  the  processing  industry  has  increased  from 
115 000 tonnes  in  2000  to  more  than  160 000  tonnes  in  2004.  In  2004  the  large 
supply  of  raspberries  for  the  industry  in  Europe  entailed  a  price  fall.  Around  two 
thirds of total supply to the industry is made of frozen raspberries. Serbia has been for 
years the major supplier of the EU in frozen raspberries with 54 000 tonnes exported 

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to  the  EU-25  on  average  in  2002–2004,  followed  by  Chile  with  the  average  of 
14 000 tonnes. In the last years, owing to the increase in production in Poland (from 
20 000 tonnes on average in 1999–2002 to 30 000 tonnes in 2003-2004), the share of 
EU produced frozen raspberries in total EU supply has increased from 20% in 2002 to 
31% in 2004. 

Poland has succeeded to capture a sizeable share of the market in the last ten years 
and  seems  poised  to  further  improve  its  position  owing  to  a  number  of  advantages: 
tradition  in  growing  raspberries;  low  labour  costs;  strong  research  on  cultivar 
creation;  existence  of  a  large  semi-processing  industrial  basis.  On  the  other  hand, 
fragmentation  of  production  and  of  marketing  by  producers  to  the  industry  is  an 
important  constraint  on  the  improvement  of  the  competitiveness  of  the  sector. 
Improvement  of  production  at  farm  level  and  of  marketing  to  the  semi-processing 
industry will be critical in the process of consolidation of the sector.  

In  Hungary,  production  of  raspberries  has  declined  in  the  last  ten  years.  Despite 
sustained  EU  demand,  exports  of  frozen  raspberries  have  declined  reflecting  an 
eroding  competitiveness.  The  country  has  indeed  had  to  face  increased  competition 
on  the  market,  while  internally  the  sector faced  increased  costs.  In  addition,  natural 
conditions  in  Hungary  would  imply  the  development  of  irrigation  (the  country  is 
located  on  the  southern  border  of  raspberry  growing  area  in  Europe)  which  is  not 
profitable currently when producing for the processing market. 

2.3.4. 

Sour cherries 

Sour cherries are grown in countries with a cold climate, mainly in Northern America 
and  Northern  Europe.  Sour  cherries,  also  called  tart  cherries,  are  seldom  consumed 
fresh. They are generally canned or frozen after harvest and used in different kinds of 
products which include compotes, jams and juices and various desserts. 

(51 000 

in  2002–2004),  Hungary 

In  the  EU,  the  sour  cherry  sector  is  dominated  by  three  countries:  Poland 
tonnes)  and  Germany 
(190 000 tonnes 
(31 000tonnes).  Together,  these  three  countries  account  for  87%  of  total  EU 
production. In the period 1998–2004, the EU-25 production of sour cherries increased 
at  the  average  annual  rate  of  5 %  to  reach  340 000  tonnes  in  2004.  Most  of  this 
growth  originates  from  Poland.  In  Hungary,  production  has  also  increased.  In 
Germany  the  sector  has  been  declining  since  the  1990s,  under  the  pressure  of 
increased  competition  from  imports  from  Central  and  Eastern  European  countries. 
Poland represents 60% of EU sour cherry production. 

Farm structures are small in Germany and Poland, although the weight of large farms 
is increasing in Poland. By contrast, large farms dominate in Hungary (farms with ten 
hectares  or  more  representing  50%  of  total  area,  against  3%  in  Poland).  Owing  to 
small farm structures, the cherries are harvested manually in Germany and Poland. In 
Hungary,  mechanised  harvest  concerns  30%  of  the  production.  Therefore,  labour 
costs  play  a  decisive  role  in  the  profitability  of  production  and  Germany  is  at  a 
disadvantage in relation to Hungary and Poland. 

In  Germany  and  Hungary,  Producer  Organisations  and  Producer  Groups  (POs  and 
PGs)  play  an  important  role  in  the  marketing  of  sour  cherries  to  the  processing 
industry: 40% of total production in Germany and 50–60% in Hungary. By contrast, 
in Poland POs or PGs still play a marginal role. 

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EU-25 imports from third countries have a limited weight in total EU supply of sour 
cherries for the processing industry with a share of 11% on average in 2002–2004. 

Sour cherry production has seen a dynamic growth in new EU Member States since 
the 1990s. The analysis indicates that the price drop of 2004 was caused by the large 
harvest in the EU and in Serbia which exceeded the needs of the industry. Given the 
extent  of  the  development  of  new  orchards,  in  particular  in  Poland,  prices  in  the 
sector may well stay depressed unless weather affects the harvest, as was the case in 
2005. 

2.3.5. 

Sweet cherries 

Around 15% of EU production of sweet cherries is used by the processing industry. 
Three  Member  States  have  a  part  of  their  sector  oriented  towards  the  processing 
industry: France,  Italy and Spain. The  main uses are canning (cherries in syrup and 
other products), preparations with alcohol (partly for the confectionery industry) and 
sugar-preservation (sugar-preserved cherries). 

Since the beginning of the 1990s, production of preserved sweet cherries has reduced 
in the EU, partly due to their substitution  by preserved  sour cherries imported from 
Central  Europe  or  imported  preserved  sweet  cherries.  EU  production  of  sweet 
cherries  prepared  with  alcohol  has  also  faced  the  competition  of  imports  from  third 
countries of similar products. The sector has reduced considerably. 

France  and  Italy  are  the  largest  producers  of  sugar-preserved  cherries  in  the  EU, 
followed by Spain. In France and Italy, the sector has developed along distinct paths 
since  the  1990s.  In  Italy,  the  industry  switched  in  the  beginning  of  the  1990s  from 
Italian produced raw material to imports from third countries (Bulgaria, Turkey and 
Romania).  A  significant  part  of  the  raw  material  (provisionally  preserved  cherries) 
imported from third countries is re-exported after minor processing (grading, sorting, 
etc.)  to  third  countries.  Part  of  the  raw  material  is  processed  into  sugar-preserved 
cherries.  In  France,  the  sector  has  followed  a  constant  strategy  based  on  a  strong 
integration of the commodity chain and concerted approaches and actions within the 
inter-professional  context.  Different  measures  to  foster  the  competitiveness  of  the 
commodity  chain  were  developed  within  the  inter-professional  framework.  Despite 
increased competition, the industry still uses locally produced raw material. 

3. 

MAJOR CONCLUSIONS 

Several fruits intended for processing have faced difficulties in recent years in the EU 
market  with  drops  in  prices  (producer  prices  and  prices  of  the  semi-processed 
products).  These  difficulties  can  be  attributed  to  three  main  categories  of  factors, 
which apply differently from product to product: (1) increased competition from third 
countries  (in  the  strawberry  sector);  (2)  excessive  production  in  comparison  with 
market needs; (3) insufficient competitiveness of segments of the sector generated by 
fragmented commodity chains (low levels of organisation of producers, etc.). 

As for other crop sectors, temporary difficulties can emerge also due to circumstances 
(e.g. unfavourable weather). 

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3.1. 

Competition from imports from third countries 

The analysis shows that the significance of imports from third countries in the EU-25 
is low for sour cherries and non existent for blackcurrants. It is higher for raspberries 
and  sweet  cherries,  although  it  decreased  for  raspberries  in  the  last  years.  It  has 
increased  in  the  last  three  years  for  frozen  strawberries.  The  sector  of  strawberries 
intended  for  the  processing  industry  has  therefore  faced  an  increased  competition 
from imports of frozen strawberries from third countries, in particular from China at 
low prices.  

The  Commission  is  currently  investigating  whether  imports  from  China  have  taken 
place in dumping conditions. 

3.2. 

Coping with excess production in comparison with market needs 

3.2.1.  Adjustment of production capacity to the demand 

The  production  potential  of  the  EU  in  blackcurrants  and  sour  cherries  exceeds  the 
current demand of the industry. In the absence of a major weather accident that would 
affect the harvest, prices are likely to stay at a low level. In both sectors production 
potential  has  increased  significantly  in  the  last  years  with  new  plantations  triggered 
by high prices until recently.  

Under  these  conditions,  some  farmers  may  wish  to  withdraw  from  the  concerned 
production and convert the land into other crops. EU rules on State Aid allow under 
certain  conditions  the  implementation  by  Member  States  of  subsidised  grubbing  up 
schemes.  In  order  to  facilitate  reconversion  of  land  away  from  berry  and  currant 
bushes  (considered  as  multi-annual  crops  in  EU  legislation),  Member  States  who 
apply the CAP single payment in the framework of the historical model, may use the 
national  reserve  in  order  to  establish  new  reference  amounts  for  farmers  in  areas 
subject to restructuring2. 

EU Rural Development programmes can also facilitate at farm level the reorientation 
towards  other  farming  activities  (measures  under  Axis  1  on  “improving  the 
competitiveness  of  the  agricultural  and  forestry  sector”  of  the  new  Rural 
Development Regulation3) or towards non-farm activities (measures under Axis 3 on 
“the  quality  of  life  in  rural  areas  and  diversification  of  rural  economy”).  Support 
measures under Axis 3 foster diversification of the activities in rural areas and, hence, 
strengthen  the  local  economy  and  its  capacity  to  cope  with  difficulties  that  can  be 
faced in specific agricultural sectors.  

3.2.2.  Fostering demand: promotion and product innovation 

In comparison with other fruits, soft fruit markets are of a limited size. This concerns 
both  fresh  and  processed  products.  Promotional  programmes  seldom  focus  on 
products  of  the  sector,  as  a  consequence  they  are  often  not  well  known  by  the 
consumers.  Initiatives  have  been  taken  by  operators  of  the  sector  in  some  Member 
States  to  promote  their  products.  In  this  context,  the  EU  support  to  promotion  of 
agricultural  products  can  be  an  important  tool  to  communicate  on  soft  fruits  and  to 
foster the demand for them. 

2 
3 

See Article 42 of Council Regulation (EC) No 1782/2003 (OJ L 270.10.2003). 
Council Regulation (EC) No 1698/2005 (OJ L 277 of 21.10.2005) 

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Product  innovation  is  an  important  tool  to  broaden  or  create  new  markets.  Several 
measures  under  Rural  Development  programmes  can  assist  operators  in  the 
development  of  new  products:  support  to  investments  in  marketing  and  processing, 
support to cooperation among farmers for development of new products and support 
to participation of farmers in food quality schemes. 

3.3. 

Fostering the competitiveness of the sector 

Among  the  weaknesses  of  the  commodity  chains  that  have  been  revealed  by  the 
analysis,  the  fragmentation  of  production  of  the  fruits  and  of  their  marketing  to  the 
processing industry in Poland is the most critical. 

It is sometimes argued that a scheme similar to the support provided to POs that sell 
fresh  products  to  the  processing  industry  according  to  Council  Regulations  (EC) 
No 2201/96  and  No 2202/96  would  contribute  to  lifting  the  constraints  imposed  by 
the fragmentation of production and would streamline a large share of the marketing 
to  the  industry  thus  contributing  to  stabilising  the  sector.  However,  current 
instruments applied within the above-mentioned regulations were justified essentially 
by higher producer prices in the EU than in third countries. This does not apply to a 
large part of the sector of soft fruits and cherries intended for the processing industry. 
Moreover, a review of the existing schemes is currently being carried out with a view 
to bring them more in line with the reform of the CAP.  

The Commission therefore considers that the introduction of such a support scheme 
would  be  both  inadequate  from  the  technical  point  of  view  and  untimely.  The 
Commission acknowledges that the low level of organisation of the sector in Poland 
and the fragmented marketing to the industry are serious constraints in relation to the 
competitiveness of the sector. It however considers that existing policies within both 
the First and the Second Pillars of the common agricultural policy can be mobilised to 
lift these constraints. 

The  cornerstone  of  the  CMO  is  the  support  provided  to  the  Producer  Organisations 
(POs)  to  strengthen  their  competitiveness.  This  support  is  channelled  through  the 
co-financed Operational Programmes implemented by the POs.  

Support is also provided to Producer Groups (PGs) that implement a recognition plan 
to meet the criteria to be recognised as a PO. This support is of special relevance to 
the new Member States where the level of organisation of the sector is often low and 
emerging groups of producers of a size that is too limited to qualify as PO in the first 
years  of  their  existence.  The  aid  to  PGs  can  take  two  forms:  aid  to  encourage  their 
formation and facilitate their administrative operation and investment support (in the 
form of special loans or capital). 

In  the  framework  of  the  reform  of  the  common  market  organisation  for  fruits  and 
vegetables  the  Commission  may  propose  specific  additional  support  for  Member 
States with low levels of organisation.  

EU Rural Development Programmes also have a role to play, in particular measures 
under Axis 1 “improving the competitiveness of the agricultural and forestry sector”. 
This  applies  in  particular  to  such  measures  as  the  support  to  modernisation  of 
agricultural  holdings  and  the  support  to  adding  value  to  agricultural  products 
(marketing  and  processing).  Under  the  same  Axis  1,  transitional  measures  apply  in 

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the  New  Member  States  which  provide  support  to  semi-subsistence  agricultural 
holdings and to the setting up of producer groups.  

The  lack  of  organisation  in  the  largest  producing  Member  State  together  with  the 
scarcity of economic data on the concerned sectors would call for better monitoring 
of  the  economic  situation  of  the  concerned  sector  at  EU  level,  possibly  with  the 
establishment of regular meetings of concerned experts. 

3.4. 

Coping with a situation of crisis 

As is the case for other types of fruits, the production of soft fruits and cherries for the 
processing  industry  is  highly  dependent  on  weather  conditions.  Rainy  weather  can 
ruin the harvest whereas favourable weather during all campaign can boost it. 

Compensations for farmers who face losses due to unfavourable weather are allowed 
within  the  EU  rules  on  agricultural  state  aid.  In  this  context,  the  Commission  is 
proposing  to  simplify  these  rules  and  to  facilitate  crisis  support.  It  is  in  particular 
proposed  that  aid  to  compensate  for  the  effects  of  bad  weather  would  be  exempted 
from prior authorisation by the Commission which would greatly accelerate payment 
to farmers. 

Non-harvesting could be a tool in the case of unexpected and temporary difficulties 
due  to  oversupply  of  the  market.  The  opportunity  to  make  compensations  for  non-
harvesting eligible in the Operational Programmes of Producer Organisations would 
need to be discussed in the context of the reform of the common market organisation 
for fresh fruits and vegetables. 

3.5. 

Concluding remarks 

Overall, the prevailing factors that led to a situation of crisis in the sector of soft fruits 
and cherries for processing in 2004 and 2005 were the oversupply (sour cherries for 
2004 and blackcurrants) and the existence of fragmented commodity chains.  

For  each  category  of  problems,  a  review of  existing  Community  policy  instruments 
that  could  be  mobilised  has  been  carried  out.  This  review  has  shown  that  most 
problems can be solved with existing instruments. In particular, through the common 
market organisation for fruit and vegetables and Rural Development programmes, the 
EU possesses appropriate tools to improve the functioning of the commodity chains 
in the sector of soft fruits and cherries.  

The present report, and the accompanying Commission Staff Working Document on a 
"Review of the sector of soft fruits and cherries intended for processing in the EU", 
will  be  duly  considered,  together  with  the  external  evaluations  and  the  impact 
assessment, in the elaboration of the reform of the common market organisation for 
fruit and vegetables. 

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