OVERVIEW OF THE FRESH FRUIT, VEGETABLE
AND FLORAL INDUSTRIES: GERMANY
A custom report compiled by Euromonitor International for the Produce Marketing Association
on 1 April 2014
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COUNTRY REPORT: FRESH PRODUCE IN GERMANY
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TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................................................................... 3
COUNTRY OVERVIEW ............................................................................................................................................................ 5
Background ......................................................................................................................................................................... 5
Macroeconomic environment............................................................................................................................................... 6
Socio-demographic environment ......................................................................................................................................... 7
Income ................................................................................................................................................................................. 8
FRESH PRODUCE CONSUMPTION ....................................................................................................................................... 9
Consumer expenditure ........................................................................................................................................................ 9
Fresh produce consumption trends ..................................................................................................................................... 9
Retail demand for fresh fruit and Vegetables..................................................................................................................... 13
Foodservice demand for fresh fruit and vegetables ........................................................................................................... 15
Industrial food processing demand .................................................................................................................................... 17
FRESH PRODUCE TRADE AND PRODUCTION .................................................................................................................. 19
Overview............................................................................................................................................................................ 19
Production ......................................................................................................................................................................... 20
Import/Export ..................................................................................................................................................................... 23
SUPPLY CHAIN ...................................................................................................................................................................... 25
Supply chain structure ....................................................................................................................................................... 25
Supply chain challenges .................................................................................................................................................... 25
Cold chain management .................................................................................................................................................... 26
GOVERNMENT REGULATIONS ............................................................................................................................................ 27
Trade regulatory environment............................................................................................................................................ 27
Food safety regulations ..................................................................................................................................................... 27
Regulatory outlook ............................................................................................................................................................. 29
FUTURE DEVELOPMENTS ................................................................................................................................................... 30
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EXECUTIVE SUMMARY
Economic strength results in solid expenditure on
vegetables, fruit and flowers
As the leading economy and one of the political leaders in the
European Union (EU), Germany enjoys high living standards. In
total, Germans spend on food and non-alcoholic beverages more
than the EU average, 14% of which goes on vegetables and 10%
on fruit. The fresh produce market is highly saturated, with a wide
offering and entrenched fruit and vegetable consumption patterns.
Spending on fresh-cut flowers is also solid with a total market size
of US$12 billion in 2012.
Germans consider fruit and vegetables beneficial
to health
5.0
3.6
3.9
3.7
6.0%
1.4
0.5
1.3%
Germany
0.5
1.2%
EU Average BRIC Average
1.5
2.0%
OECD
Average
Chart 1 GDP 2012 and 2017 (US$ trillion 2013
Awareness of the importance of fruit and vegetables in a healthy, prices), and CAGR 2012-2017
balanced diet is widespread amongst the German population. Source: Euromonitor International Passport
One of the most prominent campaigns in the relation to fruit and vegetables is the “5 am Tag” (5 a day) campaign,
communicating the benefits of eating five portions of fruit and vegetables a day to stay healthy. The campaign was initiated in
2002 by the EU and is supported by federal ministries across the country.
Reduction in meat consumption or even becoming a vegetarian is another growing consumer trend related to health as the
consumption of red meats is increasingly seen as a factor in the cause of various cancers related to the digestive system.
While organic fresh produce is up to 30% more expensive than its nonorganic equivalent, steady growth in consumption of
organic fruit and vegetables is yet another manifestation of the health and wellness trend.
Potatoes and apples lead fresh produce consumption
Potatoes are the most important staple in Germany with consumption volumes double that of tomatoes, the second most
popular vegetable. Cabbages, carrots, cucumbers, lettuce and onions are other popular vegetables.
Apples lead fruit consumption with bananas being second overall. Bananas are the most popular imported fruit. Cherries,
pears, plums and strawberries are other important fruit.
Opportunities for convenient fresh produce increase
Eating salads and light lunches is on the rise in an eating culture determined by hectic and active lives. The number of retail
outlets with salad bars and convenience-style offers of salads and fresh soups has increased dramatically over the past ten
years. This trend led to increased consumption levels of lettuce and similar vegetables.
An increase in the number of one-person households and Germany’s ageing population are also expected to increase
demand for frozen ready meals, many of which contain some vegetables. New techniques of freezing vegetables claim to
maintain nutritional value and vitamins, making them a healthy option in the minds of many consumer groups who are not
inclined to enjoy cooking.
Importance of ethical sourcing increases
Ethical sourcing standards are becoming important, as consumers are becoming more aware of issues surrounding fresh
produce and food stuffs in general. Conditions of workers in southern Spain, living and working conditions of banana farmers
abroad and other related issues are forming opinions on what type of produce to purchase. Consumer activism and boycotts
of fruit and vegetable produced under unethical conditions are expected to rise in number and play a more influential role in
the next decade.
Highly efficient supply chain
Increasing bargaining power of chained retailers and their ambition to speed up distribution logistics has led to supply market
consolidation. Retailers have established direct links with farmers and their cooperatives, resulting in wholesalers and other
intermediary players losing market share. Otherwise, the fresh produce supply chain is already highly efficient, with a
sophisticated road network, technologically sophisticated trucks with cooling and atmosphere-control systems and well-tuned
regional and federal farmer cooperatives facilitating fresh produce distribution from farmer to wholesaler and retailer.
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Discounters offer most opportunity among retail channels
Approximately 80% of fruit and vegetables in Germany is sold in modern grocery retail channels such has hypermarkets,
supermarkets and discounters. For the most popular and common fruit and vegetables – apples, bananas, pears, plums,
oranges, capsicums, carrots, lettuce, potatoes and tomatoes – discounters generally account for half the sales across
modern grocery channels due to their wide outlet network, quality product range and very competitive pricing. Supermarkets
account for 35-45% among the modern channels and have a competitive advantage in offering more of exotic fruit and
organic produce. Nevertheless, the amount of organic produce is rising in discounters too.
Almost half of all fruit and vegetables consumed in Germany are imported
Fruit and vegetables from all corners of the world find their way onto German tables making for a diverse offering in fresh
produce. Approximately half of all fruit and 57 vegetables consumed in Germany are imported, making Germany the second
largest fruit and vegetable importer in the world.
Many of the popular fruit are not commercially grown in Germany because the climate is unsuitable for the cultivation of, for
example, bananas, citrus fruit and peaches. Table grapes in Germany are imported too as local grapes are destined for wine
production. Among vegetables green asparagus, artichokes, aubergines and capsicums lack substantial local production and
have to be imported. Another major function of imports is to supply the local market outside domestic season.
Approximately 90% of imports come from the EU with Spain, Italy, France and the Netherlands being the most important
fresh produce suppliers. In winter, produce, such as grapes and oranges, is imported from southern hemisphere countries,
especially South Africa, Chile and Argentina.
Local production well developed and strongly preferred by local consumers
Agriculture makes up less than 1% of GDP and employs 1.2% of the work force. Farms are usually relatively small, although
larger in the east. Small and medium farms are usually linked together via cooperatives which create collective support in
production and distribution of produce. Germany has one of the most technologically advanced farming sectors in the world.
Only unfavorable weather conditions such as late frosts or wet springs can a negative effect on production volume and can
increase need for imports.
If local produce is available, it is always preferable. Germans are especially fond of local seasonal fruit such as blueberries,
cherries, plums and strawberries. Retailers advertise the local origin of their fresh produce to highlight its freshness and
resulting benefits to the environment from a reduced carbon footprint.
Regulatory regime follows high standards set by EU
German state regulation sets high standards for production methods and sanitary conditions. State and EU single market
norms define high standards in terms of animal welfare, hygiene and transparency in production methods to ensure safety of
food products. Imports are largely regulated only by the EU. While distribution from outside the EU is monitored, there are no
license requirements for fruit and vegetable import, distribution or retail. Neither are there currently any bans on major fruit
and vegetable varieties in existence in Germany. For distributing fresh produce inside the EU, there are several important EU
marketing norms and control directives in place. Use of pesticides and traces of them in fresh produce is also regulated by a
number of EU directives. EU and German regulations impose varying quotas and import taxes for fresh fruit and vegetables,
depending on country of origin.
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Chart 2 World Countries Most Similar to Germany 2012 (Within a Difference of 10%): by Population, by Consumer
Expenditure per Capita, and by Combination of GDP and Consumer Expenditure per Capita. Note that France has
the closest GDP to Germany with a 24% difference, which is not shown
Source: Euromonitor International Passport
COUNTRY OVERVIEW
B ACKGROUND
Second largest European country in a central position with temperate climate
th
In terms of size, it is the continent’s 4 largest country, behind France, Sweden and Norway. The climate is moderate with
four seasons, warm summers in the south, cold winters throughout and relatively moderate spring and autumn weather
patterns. In agricultural terms the weather conditions are similar across the country, although the south is blessed with a
warmer climate and more sunshine. Whereas crops such as potatoes and apples, the two most important crops in Germany,
grow throughout the country, fruit such as plums and strawberries have a greater concentration in southern regions.
Leading member of the European Union
One of the leading members of the European Union (EU) in terms of political
and economic direction, the country is shaping European policies on
numerous levels, including for import and trade. As the most powerful
economy in the EU, the country also enjoys high living standards.
Grand coalition governing the country
Germany enjoys a stable democratic political environment. In the national
elections of 2013, Chancellor Angela Merkel was reconfirmed into office,
making her the longest serving head of government in the EU with a tenure of
13 years.
Table 1 The Worldwide Governance
Indicators 2013
Source: The World Bank
Indicator
World Rank
Voice and Accountability
15 / 212

62 / 212

Government Effectiveness
15 / 210

Regulatory Quality
17 / 210

Rule of Law
18 / 212

Control of Corruption
14 / 210

Political Stability and Absence
of Violence/Terrorism
However, her party, the Christian Democrats, did not win the outright majority needed to govern alone, and a grand coalition
was formed with the Social Democrats, merging the policies of Germany’s two largest parties. The coalition is expected to
publish a political agenda based on fiscal discipline across the EU to generate long-term economic growth.
With respect to trade relations with Germany’s major partners, stability and continuity is expected to guide the policy of the
grand coalition. However, negotiations for a free-trade agreement between the EU and the United States are stuck on
several issues, as mutual trust between Germany and the USA has been dented by the surveillance scandal unveiled by
NSA whistle-blower Edward Snowden and revelations that the NSA wiretapped Chancellor Angela Merkel’s mobile phone.
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M ACROECONO MI C ENVIRO NMENT
Feeble growth to remain through 2014
5.0
th
Germany’s real GDP grew by 0.4% on a quarterly basis in the 4
rd
quarter of 2013 following a 0.3% rise in the 3 quarter, despite
on-going economic difficulties internationally. For 2014, the
German economy will see feeble but slightly stronger growth of
1.4%, as the economy is driven by domestic demand and a
modest increase in public investment. Much of the success of
the German economy, however, is based on its exports from
manufacturing businesses, which contribute 22% to GDP.
3.6
3.9
3.7
6.0%
1.4
0.5
1.3%
Germany
Business investment remains plagued by uncertainty, and
investment as a share of GDP is lower than for most large
economies. Weakening investment activities act as a brake on
the economy.
0.5
1.2%
EU Average BRIC Average
1.5
2.0%
OECD
Average
Chart 3 GDP 2012 and 2017 (US$ trillion 2013
prices), and CAGR 2012-2017
Source: Euromonitor International Passport
Inflation has been low, with 2013 rates at 1.4%, down from 2.0% in 2012. Annual inflation is expected to rise again gradually
to 2.0% by December 2014, as a result of monetary stimulus by the European Central Bank (ECB) and rising wages and
record low unemployment in the German economy.
Business friendly climate however high level of taxes and regulations
Protecting Investors
Registering Property
72.6
Paying Taxes
73.1
Enforcing Contracts
Germany generally has a business-friendly climate
although it dropped two places in its ranking in the
Doing Business 2014 index. As the largest market
place in Western Europe with a population of 82
million, doing business in Germany has wide
prospects of success, and several global
corporations have subsidiaries in the country.
50.0
76.6
Getting Credit
81.3
Starting a Business
82.1
Trading Across Borders
87.2
Resolving Insolvency
87.8
Dealing with Construction Permits
89.2
Getting Electricity
99.8
Chart 4 Distances to the Best Observed Doing Business 2014
Performances (100 Represents the Best; Shorter and Longer
Distance Compared to Doing Business 2013
Source: Doing Business 2014 - The World Bank
Economic policies encourage competitiveness, but
also the social security of its workforce. The
country’s social market economy imposes high
taxes on business in terms of employment benefits
and social duties as social welfare programs are
funded by high taxes. Similarly, businesses are
subject to relatively high levels of regulation when
compared to peer countries in the European Union.
Largest current account surplus in the world in 2014 indicates strong export performance
In 2011, German exports to the rest of the world stood at US$1.5 trillion, and in 2013 the share of exports to Germany’s GDP
amounted to 40.1%. The importance of exports to the economy has resulted in one of the world’s largest current account
surpluses in 2014. The substantial surplus has been criticized as a potential source of destabilization for the overall
European economy.
Engineering, chemical, automotive and construction products and services form the backbone of Germany’s export economy.
The large majority of this export business, around 60.6%, was done with other EU partners and Germany accounts for more
than half of the European Union’s international trade. Other important trade partners include the USA and China accounting
for 6.3% and 5.1% of total trade, respectively. Exports to China are expected to rise despite the slowdown in that country.
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Chart 5 Key Imports, Import Partners, Exports and Export Partners 2007-2012 (Font Size Indicates Average
Annual Trade Value; Benchmark Font Size is in the Right Bottom Corner)
Source: UN COMTRADE
SOCIO-DEMOGR APHIC ENVIRONM E NT
An ageing population burdens future economic outlook
Negative population growth combined with an aging population could curtail the
long term growth potential of the German economy, as both factors are
expected to lead to a declining workforce and lower productivity from older
workers. Germany has one of the world’s oldest populations. A median age of
45 years in 2012, up from 41.4 years in 2004, is testament to this. The growing
number of older consumers is also altering the pattern of consumption as older
consumers look for greater convenience.
Germany’s population has been declining for several years and stood at 81.8
million in 2012. By 2030, the country’s population will be at least 8% below the
peak recorded in 2003. The country’s workforce is expected to shrink in tandem
with a possible 12%
decline by 2030.
729.3
0.9%
0.5%
81.8
-0.1%
Germany
0.2%
36.8
14.9
EU Average
BRIC
Average
OECD
Average
Chart 7 Population 2012 (million) and CAGR
2012-2017
Source: Euromonitor International Passport
Immigration could be a
solution but
faces
general
resistance
from many Germans.
Although there is a
wide acceptance of Chart 6 Population by Federal State 2012
immigrants
from (million) and Cities with Over a Million
southern
European Inhabitants (Berlin, Bremen and Hamburg
countries, such as are Both Cities and Federal States)
Source: Federal Statistical Office and Euromonitor
Greece and Spain, International Passport
plagued by economic
troubles
and
high
unemployment, immigrants from Romania and Bulgaria, for
example, are sometimes frowned upon. Seasonal workers from
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countries such as Poland are also common, particularly in the agricultural sector during harvest season. As a result of the
economic crisis in southern European countries in particular, immigration into Germany is currently at its highest levels in 20
1
years, with statistics showing that 958,000 people moved to Germany to find work in 2012 .
INCOME
High per capita income and solid middle class
28 874.2
Germany's per capita disposable income is the third highest in
Western Europe, and this combined with a solid middle class gives
generous capacity for discretionary spending. Middle class
households comprise around a third of all households. Germany is
also a relatively equal country, being ranked 18th out of 85
countries in terms of income equality in 2011. As a result lifestyle
choices rather than income primarily determine consumption
patterns.
The highest consumer incomes and expenditures are found in the
southern states of Bavaria and Baden-Württemberg as well as in
North-Rhine Westphalia. States of the former East Germany
continue to have lower consumer expenditure than those in the
west, even 23 years after reunification in 1990.
Chart 9 Annual Disposable Income per Capita by
Federal State 2012 (US$ 2013 prices) and Cities
with Over a Million Inhabitants (Berlin, Bremen and
Hamburg are Both Cities and Federal States)
Source: Federal Statistical Office and Euromonitor
International Passport
1
5.4%
24 927.8
21 682.3
0.9%
0.9%
3 191.0
Germany
EU
BRIC
1.3%
OECD
Chart 8 Annual Disposable Income per Capita 2012
(US$ 2013 prices) and CAGR 2012-2017
Source: Euromonitor International Passport
Chart 10 Consumer Expenditure by Federal State
2012 (US$ billion 2013 prices) and Cities with Over
a Million Inhabitants (Berlin, Bremen and Hamburg
are Both Cities and Federal States)
Source: Euromonitor International Passport
Data from national statistics as reported by the BBC
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FRESH PRODUCE CONSUMPTION
CONSUME R EXPENDITURE
Large amount of choice among fruit and vegetables encourages consumption
Germans spent more in absolute terms on food and non-alcoholic beverages than the average for the European Union.
13.2% of overall expenditure in 2012 was spent on food.
100%
Oils and Fats
80%
60%
70.5
Fish and Seafood
21 151.6
17 034.2
1 660.5
Other Food
20 173.9
84.9
140.9
Fruit
40%
Sugar and Confectionery
20%
Milk, Cheese and Eggs
199.9
226.6
Vegetables
0%
2 789.0
2 531.5
Germany
EU
578.5
BRIC
2 439.7
Non-Alcoholic Beverages
OECD
Bread and Cereals
Chart 12 Consumer Expenditure on Food and NonAlcoholic Beverages vs. Other Consumer
Expenditure 2012 (US$ 2013 prices)
Source: Euromonitor International Passport
263.4
331.9
343.6
535.7
Meat
591.8
Chart 11 Consumer Expenditure on Particular Foodstuff
per Capita 2012 (US$ 2013 prices)
Source: Euromonitor International Passport
Of the total expenditure on food for 2012, 10.2% was on fruit and 13.6% on vegetables. These proportions have remained
relatively stable with time, indicating well entrenched consumption patterns for fruit and vegetables in Germany and sufficient
choice in fresh produce.
High disposable income supports spending on discretionary pleasures such as flowers
Giving flowers plays a central role in social and cultural events. In 2012, Germans purchased flowers and plants to a retail
value of US$12 billion, spending US$146 per person, according to the Verband des Deutschen Blumen Gross – und
Importhandels e.V. Cut flowers comprised US$3.9 billion. Spending on flowers has been negatively affected by the economic
downturn but 2012 expenditure was 1% more than the previous year. 2012 also was the best year for flowers since 2008.
FRESH PRODUCE CONSUM P TION TRENDS
“Eating fresh, preferably
regionally produced fruit
and vegetables is
becoming a new virtue
amongst consumers”
Proplanta, Media
Lifestyle choices the largest factor in fruit and vegetable consumption
Awareness of the importance of fruit and vegetables in a healthy, balanced diet is widespread
amongst the German population. Lifestyle choices are the largest determining factor for fruit
and vegetable consumption in Germany. Although factors such as income, education, social
background and cultural factors play a role in diets and influence levels and variety of fruit and
vegetable consumption, a large variety of fresh produce is widely and easily accessible to everyone. Fresh produce
consumption is not hindered by socio-economic conditions of those falling below median incomes.
Potatoes and apples remain favorites among wide variety of fruit and vegetables
Fruit and vegetables from all corners of the world find their way onto German tables, making for a diverse offering in fresh
61
24.8
Potatoes
Tomatoes
8.9
8
6.4
4.9
3.4
3.1
2.6
2.3
1.3
Carrots
Onions
Cucumbers
Cabbage
Lettuce
Peas/Beans
Brassica
Leeks
Asparagus
Chart 13 Popular Types of Vegetable Consumption 2012 (kg per capita)
Source: Federal Ministry of Food and Agriculture
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produce. Nonetheless, the most important staple in Germany remains the potato which along with other staples, such as
wheat-based products and rice, forms the basis of the German diet. A high per capita consumption of potatoes of 61 kg in
2012 (Chart 13) is reflective of the potato’s importance, whereas tomato consumption was less than half but still a substantial
24.8kg per capita in 2012. Other popular vegetables include carrots, onions, cucumbers, cabbages and lettuce.
6.2%
9 676.9
4.4%
3.8%
1.1%
0.9%
1.3%
0.1%
-0.1%
858.4
786.6
720.6
672.8
739.9
420.6
332.5
226.6
222.8
Cabbages
Carrots
Tomatoes
Cucumbers
Onions
Lettuce
Capsicum
Peas
Cauliflowers
and broccoli
-1.9%
Potatoes
1.3%
Chart 14 Vegetable Consumption Volume 2012 (‘000 metric tons) and CAGR 2007-2012
Source: FAOSTAT and UN COMTRADE
Per capita consumption is broadly reflected in volume consumption, although it should be noted that the consumption shown
in Chart 14 also includes fresh produce which has been processed. Potato volumes are more than 10 times larger than those
for cabbage with the second highest volumes in 2012. However, consumption volumes of the country’s most popular fresh
produce, the potato, has experienced a small decline of 1.9% in volume between 2007 and 2012. In the same period lettuce
showed the highest growth with 6.2%, followed by capsicum peppers with 4.4% and onions with 3.8%.
A wide range of domestically grown and imported fruit and vegetables are available in retail outlets. However, the most eaten
fruit by far is the apple, with a per capita consumption of 25 kg in 2012, followed by bananas, which lead imported fruit in
consumption (Chart 15). Other important fruit include pears, plums, cherries and strawberries.
25.0
10.0
Apples
Bananas
5.0
5.0
Oranges
Grapes
4.0
3.5
Clementines Strawberries
3.5
2.5
2.0
1.4
Peaches
Pears
Cherries
Raspberries
Chart 15 Popular Types of Fruit Consumption 2012 (kg per capita)
Source: Federal Ministry of Food and Agriculture
Many of the popular fruit are not commercially grown in Germany because the climate is unsuitable for the cultivation of, for
example, citrus fruit and bananas. Late frosts and wet springs can also negatively impact harvest yields, and imports of
popular fruit such as pears and grapes are required to feed local demand.
Five megatrends shape future consumption patterns
Fruit and vegetable consumption has increased over the last five years to 2012, and further growth is expected for fresh
produce as a whole, given high levels of awareness and on-going health campaigns promoting the consumption of fruit and
vegetables. Wide availability of fresh produce in retail will support growing consumption levels. Although increasing prices for
selected fresh produce, such as organics or citrus, as producing countries have faced adverse weather, may result in some
varieties experiencing lower growth, the wide spectrum available is expected to lead to switching to more affordable produce.
The following megatrends have a significant impact on changing consumption patterns for fresh produce.
Healthy Eating
The drive for a healthier lifestyle and diet will be the most important driver benefiting increased volumes.
Convenience
Germany’s ageing population is expected to demand conveniently pre-cut and washed fruit and
vegetables. Parents also find it easier to feed their children pureed fruit and vegetables.
Sustainability
Sustainability concerns among consumers is driving a more conscious approach to reduce food waste.
Indulgence
Exotic fruit and vegetables are often considered premium foods.
Local sourcing
Shorter transport distances for fresh produce contribute to a lower environmental footprint.
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Little change in popularity of different types within overall growth of fresh produce
consumption
Consumption patterns for fruit have essentially not changed as the range of fresh produce offered in retail has remained
unchanged. Evergreens such as grapes, oranges, pears and apples experience only minor fluctuations in popularity. Short
term trends include a decline in the popularity of grapefruit at the expense of other citrus fruit, such as mandarins. New
varieties of table grapes may also avert attention away from other fruit. Cranberries have become more popular on the back
of claims of their antioxidant content, and new types of rounder peaches such as the paraguayo peach have appeared on
grocery shelves. Green asparagus is slowly moving out of the shadows of the revered white asparagus and is finding its way
into the German diet.
Country of origin and ethical standards influence consumption
Provenance of fruit and vegetables is important to German consumers, who generally prefer local and regional produce,
where regional extends to other EU countries. They are also often prepared to pay more for such produce. The carbonfootprint of imported of fruit and vegetables has become a growing concern.
Ethical standard also play a role with Fairtrade actively increasing its public profile in 2014 with large billboard advertising
around the country. Consumers are increasingly aware of issues related to fruit and vegetable production such as working
conditions in southern Spain and of banana farmers, as examples, and some factor these into purchase considerations.
Seasonal fruit such as strawberries signal summer
Germans are very fond of local produce and especially seasonal fruit. The majority of fruit are now available throughout the
year as a result of imports from southern hemisphere countries in winter to make up for the lack of local production at that
time. Nonetheless, seasonal produce, and particularly fruit, plays a strong role in Germany as these signal summer.
The fruit with most seasonality in consumption include strawberries, plums (German variety name “Zwetschge”), cherries and
blueberries. All are dependent on ripening to perfection before harvest as early picking leads to lack of taste and juiciness.
Strawberry season in Germany starts around June but fruit from Spain, the largest exporter to the German market in 2012,
starts in April. Consumption reaches its highest level in the summer months of June to August, and starts to decrease in
September.
Strawberry and cherry season are widely anticipated when the season start in June and are regional
events. Families head out to pick strawberries on farms, and in high streets stalls pop up selling the
freshest and ripest locally grown cherries. Both types of fruit are also available year-round as imports, but
they tend not to travel well and locally grown ones are considered the ripest and sweetest. However, the
lack of long sunshine and recurring poor weather in Germany often hamper harvest volumes of local
production, requiring high levels of imports to feed demand.
International sourcing allows wide availability all year
Most other fruit, especially citrus, are available all year. Good transport links to the major
growing areas in Spain and proximity to the Netherlands allow for various types of fresh
produce to be available all year at affordable prices. The region around Almeria in southern
Spain (Picture 1) is Europe’s largest fruit and vegetable growing area, whereas the
Netherlands has a strong production base due to extensive greenhouses.
“Spain and the
Netherlands are the
indispensable importers
into Germany” - GEFA,
Export Association
White areas are covered
growing areas
2
Picture 1 Satellite Image of the Southern Spanish Province Almeria with 450km of Plastic Foil Protecting Europe’s
Largest Single Vegetable Cultivation Area
Source: Google Earth
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Changes in consumption volumes throughout the year may be a result of seasonal price changes, however. For example
table grapes, peaches and some other fruit are usually more expensive in the period December to March. Higher prices for
some imported fruit, such as mangos, papayas, hass avocados or physalis, may put these out of reach of lower income
households.
Organic produce widely available but still expensive
 Organic potatoes made up 2.5% of
all potatoes in 2013
 Organic vegetables made up
10.3% the overall vegetable market
Income does make a difference when it comes to the consumption of organic
produce with higher income households generally eating more organic food than
lower income households. Organic fresh produce, while also available in discount
retail outlets, can be up to 30% more expensive than its nonorganic equivalent.
Despite higher prices, however, the organic fruit and vegetable market has
grown steadily in the past decade according to the German Association of
Organic Food Producers (BOWL). The association puts the 2013 value of
organic vegetables at US$248 million.
A lively gardening scene with hobby farmers
Gardening and cultivation of fruit and vegetables for personal use is popular
in Germany. Although official figures on private output of fruit and vegetables
are not available, the wide array of membership clubs and organizations
supporting people with gardening know-how points to its popularity. Apple
trees, easy to grow and hardy, are one of the favorites across the country,
along with potatoes, beans, herbs and berries.
1.4 million allotment
gardens in 2013
covering an
2
estimated 470 km
An important type of private gardening is the
allotment, or “Schrebergarten” in German – small
private gardens found mostly in urban and suburban
areas, providing a little space of green inside city
perimeters.
Picture 2 A Typical “Schrebergarten”
Often Used by Private Individuals for
Growing Vegetables
Source: http://prezi.com/civ3r63x1hri/copy-ofurban-gardening/
Health-conscious Germans further encouraged by public campaigns
“Combining health eating
with a demanding
lifestyle is the most
st
difficult job of the 21
century”, Albert Huth,
Retail & Wholesale
Although Germans are relatively health-conscious, government campaigns against obesity
and lack of physical exercise. Consumption of a well-balanced, varied diet, which includes
fresh fruit and vegetables, features prominently in public health
campaigns and is strongly supported by organizations concerned
with health and the general media.
The “5 am Tag” (5 a day) campaign encouraging five portions of
fruit and vegetables a day was initiated in 2002 by the EU and is supported by federal ministries
across the country. It highlights the benefits of more energy, better cardiovascular fitness and the
preventive effects of fruit and vegetables against cancer. Schools and other educational
institutions are a focus to increase awareness of the
“There is need for much more
benefits of a healthy daily intake of fruit and vegetables
need for education on how to eat
at a young age.
healthily. The media has often not
helped but confused people even
more with conflicting messages to
fill magazines”- Fachgruppe
Obstbau, Association
Despite such campaigns and high levels of awareness,
campaigners feel there is much room for improvement as Germans fall far short of
the recommended daily volume of 450g of fresh fruit and vegetables – on average,
Germans eat only around 250g.
Vegetarianism on the rise and promoted as a health trend
Vegetarianism is a growing consumer trends related to health, as the consumption of red meats is seen as a factor in
causing cancers related to the digestive system. Meat consumption is high in Germany, with an estimated consumption of
60kg per capita in 2012. This high meat intake has also prompted government institutions, health organizations, insurance
companies and sections of the media to market a higher intake of fruit and
 60% want to reduce meat consumption
vegetables in Germany.
 11.6% are trying to reduce meat
According to a survey by the University of Göttingen and Hohenheim, the share
of vegetarians in Germany is growing, with two-thirds of declared vegetarians
being women. Many, however, seem to sit on the fence, giving rise to a trend
called “flexitarian” – consumers with ambitions for a vegetarian diet, but not
consumption
 9.5% are reducing meat consumption
Survey by the University of Göttingen and
Hohenheim
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13
prepared to give up meat on the occasions when it suits them, such as for Christmas or special occasions.
Loose produce is the preferred form allowing for closer inspection and reduced waste
Loose produce forms the majority in the grocery retail sector, as apples, potatoes, oranges and a wide range of vegetables
are mostly found loose in retail outlets. Discounters are the retail format most likely to sell packaged fruit and vegetables
such as 2kg bags of apples, 2.5kg bags of potatoes or 500g trays of various fruit such as grapes, pears and plums, for
example. Discounters sell packaged bags of vegetables mainly as a part of a pricing strategy, whereas quality-minded outlets
such as supermarkets will sell the majority of fresh produce loose. Nonetheless the amount of waste generated is highest at
the retail end of the fresh produce supply chain.
For most consumers, the ability to pick and choose is very important and people like to touch and feel produce before
purchase. German consumers are relatively well educated when it comes to gauging ripeness and general quality of the
produce by touch and on inspection. Color of apples, softness of plums, redness and ripeness of strawberries or the firmness
of potatoes are all important purchase considerations. Although for many fruit, especially more sensitive ones such as
blueberries, a container is necessary to protect the fruit from being squashed, the ability to look at them is always important.
Extra packaging is also seen to increase household waste, an on-going issue in Germany, which has high standards of
recycling and consumers aware of the need to keep waste at low levels.
RETAI L DE M AND FOR FR ESH FRUI T AND VEGETABLES
A highly concentrated retail market with strong leading players
Germany has a highly consolidated grocery retail landscape. Outlet and retail value growth have been negligible in the period
2007 to 2012 as the number of stores is already high and the retail market is saturated, especially in urban areas (Chart 17,
Chart 16). As a result, competition in the German retail market is shaped by price wars, resulting in small profit margins and
slow turnover growth for retailers.
“Marketing fresh produce is of
major importance for a retailer as it
shows a lot about their approach
on quality.” – Category manager,
Retailer
The five leading grocery retailers had a combined share of over 50% in 2013
(Table 2). Germany’s leading retailer Edeka is a national retail chain with an
emphasis on supermarkets, run either by independent traders or a corporate
policy. Edeka stores are focused on quality produce, with a strong private label
product range to appeal to price-conscious shoppers.
369.6
4.0%
284.5
1.4
1.3
0.1%
-0.5%
110.5
60.8
0.2%
Germany
-0.8%
-1.1%
0.5%
0.3%
EU Average BRIC Average
OECD
Average
Chart 16 Grocery Retail Value RSP 2012 (US$ billion
2013 prices) and CAGR 2012-2017
Source: Euromonitor International Passport
0.1
Germany
0.1
EU
BRIC
OECD
Chart 17 Grocery Retailers 2012 (outlets per ‘000
people) and CAGR 2012-2017
Source: Euromonitor International Passport
Table 2 Top 10 Grocery Retailers by Retail Value RSP with Number of Outlets 2012
Source: Euromonitor International Passport
Top 10 Players
Outlets 2012
Value Share 2012
11,879
21.4%
Lidl Dienstleistung GmbH & Co KG
3,290
8.5%
Aldi Süd
1,805
7.6%
Edeka Zentrale AG & Co KG
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COUNTRY REPORT: FRESH PRODUCE IN GERMANY
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Table 2 Top 10 Grocery Retailers by Retail Value RSP with Number of Outlets 2012
Source: Euromonitor International Passport
Top 10 Players
Rewe Markt GmbH
Outlets 2012
Value Share 2012
2,811
7.0%
620
6.8%
2,510
5.8%
312
4.3%
2,363
3.9%
44
1.8%
157
1.8%
Kaufland Warenhandel GmbH & Co KG
Aldi Nord
Metro Group
Penny-Markt GmbH
Globus SB-Warenhaus Holding GmbH & Co KG
Edeka Regionalgesellschaften
Stable retail environment with well-established modern retailing
Discounters have the largest share of total grocery retail turnover with supermarkets in second place (Chart 18). On average,
more than 80% of fresh produce volumes are sold by modern retail outlets with discounters accounting for some 40% of
fresh produce sales in Germany. Supermarkets and hypermarkets lag, as price is a major issue in favor of discounters.
95.4
75.6
1.4%
13.0
0.9
Convenience
50.5
0.8%
0.4%
-0.1%
-0.7%
-1.2%
Discounters
Forecourt
Hypermarkets
31.0
Supermarkets
Specialists
14.7
-0.3%
-1.5%
Independent
Other
3.3
Chart 18 Grocery Retail Value RSP by Channel 2012 (US$ billion 2013 prices) and CAGR 2012-2017
Source: Euromonitor International Passport
For more common and popular produce such as apples, pears, plums, oranges, potatoes, tomatoes, carrots, peppers and
lettuce, discounters capture around 50% of sales on account of a wide store network, quality product ranges and highly
competitive prices. For these produce types, supermarkets usually have a share of 35-45%. Supermarkets have a slight
edge in terms of distribution for overseas produce such as exotic fruit and especially organic produce. Still, even for organic
produce, the availability in discounters is rising steadily.
The online trade of fresh produce in Germany is still a niche market. Although major retailers such as Edeka and Rewe have
online sales operations, the share of fresh produce sold via this channel is marginal as demand from consumers has been
2
hesitant. In a recent survey , over 55% of consumers stated concerns over quality and freshness as obstacles to buying
fresh produce online on a regular basis.
Discounters are a mixed blessing for consumers
The most important and influential store format in Germany is the discounter with more than 12,000 discount stores in
Germany nationwide in 2013. Originally started by retailer Aldi in the aftermath of the Second World War and perfected in
subsequent decades, all major retailers now operate at least one discount concept. Market leaders are discount chains Aldi
and Lidl with around 4,300 and 3,300 stores, respectively.
2
AT Kearney with the Universities of Cologne, St Gallen and Vienna quoted in absatzwirtschaft.de, 15 October 2013
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Discounters have progressively extended their product ranges. While 20 years ago they offered important staples and a
limited range of other produce, today several have a wide portfolio of private label ranges which extend to virtually all
consumer product areas. In the fresh produce department, the available choice can easily match that of a supermarket.
Avocados, mangos, kiwis and other exotic fruit are available at low prices, while the more common items such as
strawberries, plums and apples are widely available at cheap prices and good quality.
Price-wars are the prevailing form of competition in Germany. While beneficial to the consumer in lowering food expenditure,
critics have pointed out that this trend has led to a devaluation of the quality of food. For example, the on-going price war
over milk, a key grocery items in Germany, has led to margin pressure for the dairy industry with some producing below cost.
Retailers are responding to consumer demand for local sourcing, organic food and
convenience
Leading retailers are increasingly highlighting aspects of their products other than just the price. For example, retailers
advertise the local origin of their fresh produce to highlight freshness and their environmental sustainability. Notwithstanding
the importance of local sourcing, retailers also cater to Germans’ taste
for variety of fruit and vegetables, as curiosity and outside cultural
influences have led to a more cosmopolitan outlook on cooking and
widened consumer tastes. Organic fresh produce is also widely available
across all major retail formats, including discounters. Finally, pre-cut and
pre-packaged salad is seizing more shelf-space in retail outlets.
Open street markets regaining popularity
Independent shops have seen their numbers decline in the past decade
and for most fresh produce their share of sales is less than 5%. The
weekly farmers market has seen a renaissance in social importance as
consumers are turning to locally produced seasonal fruit and vegetables.
Nonetheless, small volumes of produce are sold in this channel. Produce
most popular on street markets are seasonal produce such as cherries
and strawberries, or staples such as potatoes.
Picture 3 The Famous Viktualienmarkt in
Munich
Source: http://mojotravel.wordpress.com/
FOODSERVICE DE M AND F OR FRES H FRUI T AND V EG ETABLES
Foodservice mostly untouched by recent economic troubles
In 2012, consumer foodservice benefited from more favorable economic circumstances as Germany did not suffer from
economic decline, unlike many other countries in Western Europe. Although full-service restaurants dominate food service
sales (Chart 19), the leading players in consumer foodservice remain the subsidiaries and franchisees of multinational burger
fast food giants McDonald’s and Burger King, along with local players Nordsee and Autobahn Tank & Rast. Many
consumers, especially cash-rich, time-poor consumers have contributed to a growing demand for convenience-oriented
services. Fast food therefore has grown sales continuously since the first outlets were introduced decades ago and
accounted for almost a third of overall foodservice value sales in Germany in 2012. In 2012, several chains saw substantial
growth in outlet volume.
0.4%
0.4%
21.0
0.2%
0.1%
14.1
9.1
1.4
-1.1%
100% Home
Delivery/Takeaway
Cafés/Bars
-0.6%
Fast Food
Full-Service
Restaurants
2.5
1.9
Self-Service
Cafeterias
Street Stalls/Kiosks
Chart 19 Consumer Foodservice Value RSP by Channel (US$ billion 2013 prices) and CAGR 2012-2017
Source: Euromonitor International Passport
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COUNTRY REPORT: FRESH PRODUCE IN GERMANY
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Table 3 Top 10 Consumer Foodservice Companies by Foodservice Value RSP with Number of Outlets 2012
Source: Euromonitor International Passport
Top 10 Players
3.4
Outlets 2012
Value Share 2012
McDonald's Deutschland Inc
403
2.0%
Autobahn Tank & Rast GmbH & Co KG
388
1.8%
Nordsee GmbH
340
0.9%
Burger King Beteiligungs GmbH
256
0.6%
SSP Deutschland GmbH
276
0.6%
IKEA Deutschland Verkaufs GmbH & Co
46
0.5%
Vapiano SE
55
0.4%
Karstadt Warenhaus GmbH
87
0.4%
Starbucks Coffee (Deutschland) GmbH
160
0.4%
Metro AG
116
0.4%
3.5
3.8
179.5
3.3%
2.4
5.4%
50.0
-0.2%
Germany
-0.4%
-0.5%
EU
BRIC
OECD
Chart 20 Consumer Foodservice (Outlets per ‘000
people) and CAGR 2012-2017
Source: Euromonitor International Passport
-0.3%
Germany
44.3
18.5
-1.0%
EU Average BRIC Average
0.4%
OECD
Average
Chart 21 Consumer Foodservice Value 2012 (US$
billion 2013 prices) and CAGR 2012-2017
Source: Euromonitor International Passport
Strong offer of fresh foods in foodservice
In line with consumers’ expectations of fresh produce in grocery retail, respondents for this report suggest that Germans
have a growing expectation of high-quality products and services in consumer foodservice, while also showing demand for
novelty and innovation. Consequently, foodservice in Germany tends to use high proportions of fresh produce with organic
and locally sourced more evident in the premium segment of the market.
Salads and light lunches are on the rise in Germany’s eating culture as the number of retail outlets with salad bars and
convenience-style offers of salads and fresh soups has increased dramatically over the past ten years. Consumption levels
of lettuce have been particularly impacted with a volume increase of 6.2% between 2007 and 2012.
Overall, foodservice had a share of 29% in terms of fresh food sales in Germany in 2011, but this also includes fresh meat,
fish and eggs. In 2011, the foodservice sector had a 15% share of fruit sales and 12% share of vegetables sales in Germany.
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INDUSTRI AL FOO D PROC ESSING DEM AND
German economy has a strong food processing base
The food processing industry in Germany is large and varied. All major food international food producers are present in the
country, including Heinz, Unilever, Nestle and Mars, amongst many others. In addition, several large domestic companies
include Dr Oetker and Kühne, for example (Table 4). Processors either source directly from local or imported markets or via
distributors or wholesalers. Key wholesalers and importers are Dole Germany, Univeg, Andretta Fruchtimport, and Cobana.
Table 4
Major Fresh Produce Processing Companies
Source: Gewerkschaft Nahrung-Genuss-Gaststätten (www.ngg.net)
Company
Apetito
Conditorei Coppenrath & Wiese GmbH & Co. KG
Danone GmbH Deutschland
Hengstenberg GmbH & Co. KG
Carl Kühne KG
Molda AG
Nestlé Deutschland AG
Dr. August Oetker Nahrungsmittel KG
Raps GmbH & Co. KG
riha Richard Hartinger Getränke GmbH & Co. Handels KG
RÜMA Feinkost KG (GmbH & Co.)
Schwartauer Werke GmbH & Co.KgaA
Unilever Deutschland Holding GmbH
Zeniths GmbH & Co. KG
2 045
4 025
2 103
3 699
Chart 22 Fruit and Vegetable
Processing Industry 2012 (US$ million
2013 prices): Juice, Preserves, Potato
and Frozen/ Dried Production
Products
Fruit & vegetable processing
Frozen and fresh bakery products
Yoghurt & other dairy products
Canned fruit and vegetables
Canned fruit and vegetables
Processed fruit
Processed foods, various
Frozen and processed foods
Foodservice
Fruit juices
Fruit and vegetables, canned and fresh
Marmalades, jams
Various processed brands, fruit & vegetables
Marmalades, jams
In 2012, 5.8% of total turnover Table 5 Food Processing Industry 2012
for the industry came from fresh Source: Gewerkschaft Nahrung-Genussfruit and vegetable processing Gaststätten (www.ngg.net)
(Table 5). Fresh produce is used
$ billion
in multiple ways: orange juice Total Turnover
232.4
concentrate and apples are Domestic Sales
159.0
turned into juice, fresh potatoes Total Exports
73.3
into chips and numerous other Exports to EU
54.9
potato-based products and all Fruit / Vegetable Processing
11.9
types of vegetables, locally
grown or imported are turned into frozen convenience products, fresh ready
meals or canned foods. Fruit are also used for the production of jams and
marmalades, a popular part of the German breakfast culture. Potato processing
and the fruit juice industry use most fresh produce volumes.
Price increases have led to lower sales of juice
The German fruit juice industry produced 3.7 billion liters of fruit juices, nectars
and fruit-based drinks in 2012. Domestic production volumes decreased by 4.6%
in the period 2008 to 2012. Juice makers have had to contend with price
Source: Euromonitor International Passport
increases of raw materials as weather condition in producing countries, and
rising currency values in developing countries have seen fruit juice prices rise by up to 30%. Consumers have not been
happy to pay these increases.
“Price increases of imported
produce from outside the EU are
our biggest worry. To produce
quality products at lowest prices,
we need good, reliable and cheap,
sources” – Import manager at
major fruit juice company
Lower demand is compounded by concerns about the high sugar content of fruit
juices. Per capita consumption has decreased from 35 liters in 2011 to 33.2 liters in
2012. The most popular juices were apple juice with 8.5 liters per capita followed by
orange juices with 7.8 kg per capita.
Key juice producers include Riha Wesergold, Emig, Granini, Punica, Valensina, and
all major retailers with private label brands. Private label juice penetration of the
German market is estimated at 80%.
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Potato processing second largest fresh produce processing sector
The potato is one of the most important crops used for processed food production, and is used in a variety of ways,
according to the Gewerkschaft Nahrung-Genuss-Gaststätten. In 2012, 6,578,000 metric tons of potatoes were used with
3,036,000 made into starch and 3,395,000 processed into food products. A negligible amount (147 metric tons) was used for
animal feed or by distilleries.
Frozen foods, and especially frozen vegetables in processed foods such as pizzas or other ready meals are expected to
maintain an important market segment as the country’s aging population and single person households are less likely to cook
their own meals. New techniques of freezing vegetables maintain nutritional value and vitamins, therefore making them a
healthy option for those not inclined to cooking.
Imported fruit and vegetables used in processing
Although in most cases it is hard to distinguish relative volumes of domestic versus imported produce used in food
processing, in general locally produced fruit and vegetables are mostly sold to the end consumer via retailing, as this fetches
higher prices for farmers and producers. Produce which is below “Handelsklasse 1” (see Trade Regulatory Environment) is
often sold to food manufacturers, as it is seen as unsuitable for retail sale.
Imported produce used significantly in food processing are oranges for juice, which are all imported anyway. Potatoes are
also a produce of which high levels of imports are used, as cheaper imported produce from the Netherlands and Belgium is
used here.
For the production of pickled vegetables, such as gherkins and cornichons, for example, imports from Turkey, Poland,
Hungary and India were used. Overall, 92% of imported fresh vegetables are sourced from countries within the EU, many
from Spain and the Netherlands, and are also subsequently used in the production of food products. In 2012, only 1.14
metric tons of processed vegetables were exported from Germany. At the same time, Germany requires substantial amounts
of imported vegetables to sustain demand of consumers and the industry. In 2012, the country imported fresh and processed
vegetables to the value of US$6.9 billion.
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FRESH PRODUCE TRADE AND PRODUCTION
OVERVIEW
Domestic production of a wide range of fruit and vegetables
Domestic production on average meets 40 to 45% of
Germany’s vegetable consumption and around 50% of fruit
consumption. Germany has a strong and traditional agricultural
sector and grows a large variety of different fruit and
vegetables for local demand.
Apples, pears, cherries, plums, mirabelles, strawberries and
blueberries are the main fruit grown in Germany. Large
volumes of grapes are also cultivated but are destined for wine
production. Table grapes found in German stores are imported
from countries such as Italy, Spain and Turkey, amongst
others.
Main fruit and vegetables produced on a
commercial scale
Fruit and vegetables almost entirely imported
Peaches, citrus fruit and exotic fruit such as bananas, mangos,
papayas and pineapples are entirely imported. EU countries
are the source of peaches, citrus fruit or fruit such as cherries
and strawberries outside the domestic season.
The exotic fruit with the largest import volume is the banana,
with 1.16 million metric tons in 2012. Ecuador (496,547 metric
tons), Colombia (284,916 metric tons) and Costa Rica 272,248
metric tons) are the largest importers for bananas.
Table 6
Production and Consumption: Importance of Domestic vs. Imports 2012 (000’ metric tons)
Source: Gewerkschaft Nahrung-Genuss-Gaststätten (www.ngg.net)
Apples
Pears
Cherries
Plums
Peaches
Grapes
Strawberries
Production
844
44
52
57
147
Import
1,395
191
143
43
68
481
164
Domestic consumption
2,239
235
195
100
68
481
311
% consumption of domestic
37.7
18.5
26.6
57.1
47.3
Few vegetables are entirely imported – but imports make up largest share of many
Few vegetables types are entirely imported, but vegetables which are not grown on a large scale in Germany for climatic
reasons include green asparagus, zucchini, artichokes, garlic and especially tomatoes.
Tomatoes are the most popular vegetable in Germany after potatoes, but domestic production of 61,200 metric tons in 2012
barely covers the consumption of 1.7 million metric tons of fresh and processed tomatoes in Germany in 2012. In 2012,
Germany imported 637,100 metric tons of fresh tomatoes with most from the Netherlands, (354,300 metric tons), Spain
(163,500 metric tons) and Belgium (58,600 metric tons). Note that tomatoes are also imported in processed form.
Pears – good example how German weather limits supply of a popular fruit
Pears are one example where low domestic production struggles against the quality and volume of imports. In 2012,
Germany imported 160,300 metric tons of pears, while local production stood at 33,900 metric tons. Local production has
steadily declined from 50,500 metric tons in 2007, due to trees lying fallow in certain years, and adverse harvest conditions
resulting from poor weather. Given the proximity of producing countries such as Italy, which exported 56,300 metric tons to
Germany in 2012, German farmers have a hard time competing against the juicier produce from Italy. Pears require more
sunshine than the German climate can provide and Italian farmers, and those in other southern EU countries, can easily
produce more produce of much better quality.
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Weather conditions and seasonality key drivers of import versus local production
Climate is the most distinguishing component in the balance of imports versus local production. Popularity of fresh produce
types as well as production costs and the strength of imports come into play for individual produce types.
For some fruit, such as pears for example, more lucrative or economically viable fruit may slowly supplant them on German
farms given on-going weather vagaries. For other fruit, such as strawberries, German production can be protected against
the weather by greenhouses or by planting weather resistant varieties. For pears, the nearby Italian market supplies a steady
flow of more attractive fruit. However, this scenario would not lead to similar dynamics for strawberries as German
consumers cherish the seasonal character of the fruit and ability to travel well.
Even though strawberries, blueberries or cherries could be available all year using imports, the German consumers weighs
the options and most often prefers to wait for seasonal produce. Other fruit such as citrus fruit or grapes are unaffected by
such considerations as they are not grown in Germany anyway.
Fresh flowers and plants an important market in Germany
Around 21,000 metric tons of flowers arrive annually from Kenya, South Africa, Colombia and Egypt at the airport of
2
Frankfurt, which has a 9,000m warehouse with 20 different climate zones dedicated for flowers. The largest importer of cut
flowers and house plants is the Netherlands. Domestic production of cut flowers is stagnating somewhat as rising energy
costs hamper profitability. As a result, protected cultivation areas declined by 1.3% in 2013, whereas open cultivation
increased by 1.8%.
PRODUCTION
A technologically advanced farming sector well supported by institutions and strong traditions
Agriculture makes up less than 1% of GDP and employs 1.2% of the work force. Farms are generally small, although larger
in the eastern states, and principal crops include wheat, barley, potatoes, apples and grapes for wine making. The German
farming sector is based on free-market principles. Government provides support in the form of agricultural subsidies which
allow farmers to survive in times of hardship, but are not actively directed to improve domestic production as such.
Germany has a technologically advanced farming sector with harvesting and production equipment and techniques, irrigation
systems, storage systems and other agricultural equipment of the highest standards. Technology and maintenance is also a
major cost item faced by farmers.
No significant technological shifts are expected in German agriculture as greenhouses are already well established for
strawberries and other delicate fruit. Volumes of produce farmed in greenhouses are therefore not expected to change over
the next five years, particularly as open farming is still preferred for some types of fruit and vegetables. Government and EU
regulations set high standards for production methods and sanitary conditions to ensure safety of food products.
Medium to small sized farms dominate
Germany’s farming sector is dominated by small to
medium sized farms. Around a quarter of farms are
smaller than 10 hectares and 70% of farms are sized up to
50 hectares. Less than 4,000 farming operations have
more than 500 hectares at their disposal.
There has been an ongoing decline in the number of farms
as generational and cultural changes make themselves
felt. Farming life is not for everyone, and younger
generations often do not have the same attachment to a
family farm to carry on the work. In many cases, land is
leased to a neighbor or a wage enterprise, which carries
on servicing the land. Only about 1 to 3% of farms per
year go out of business because of insolvency.
73.1
69.7
60.5
50.4
23.2
7.7
3.7
20 – 50 Below 10 10 – 20 50 - 100 100 - 200 200 - 500 500 and
more
Chart 23 Number of Farms by Hectares 2010 (‘000)
Source: Federal Statistical Office
Farmers organized in cooperatives which are linked into fresh produce supply chains
Numerous regional and local organizations support farmers, allowing easy access to know-how, organizational, financial and
general support. The Deutscher Bauernverband e.V. is the main organization representing German farmers. The
organization has 18 regional divisions and over 300 local divisions across all federal states.
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Given the tough competition in the farming sector and a focus on price in
the German market, creating price efficiency by economy of scale,
channeling production efforts and creating collective support is a key
formula for German farmers. Cooperatives such as Raiffeisen, one of
the largest in Germany, play a key role in this. Cooperatives are also
linked into the fresh produce supply chain.
21
Raiffeisenverband
 2,452 members in 2014, including producers,
agricultural companies, processing companies
 Fruit and vegetable turnover of US$4.5 billion
in 2013
 Total 2013 turnover of US$68.1 billion
Production and farming acreage well-spread out across the width and breadth of the country
All major crops, such as potatoes, apples and carrots, are grown across the entire country. By land under cultivation, LowerSaxony has the largest agricultural sector. The southern states of Bavaria and Baden-Württemberg have warmer climates
and therefore grow fruit varieties which need more sun, such as pears, strawberries and cherries. 19% of Germany’s
strawberry, 47% of the sweet cherry harvest and 29% of the pear harvest came from Baden-Württemberg in 2012.
Chart 24 Flower Output by Federal State 2010 (US$
million 2013 prices) and Cities with Over a Million
Inhabitants (Berlin, Bremen and Hamburg are Both Cities
and Federal States)
Chart 25 Flower, Fruit, Potato and Vegetable Output by
Federal State 2010 (US$ million 2013 prices) and Cities
with Over a Million Inhabitants (Berlin, Bremen and
Hamburg are Both Cities and Federal States)
Source: Federal Statistical Office, Euromonitor International Passport Source: Federal Statistical Office, Euromonitor International Passport
Annual production volumes vary with the weather
The most important factor influencing production volumes and harvesting conditions is weather. Late frosts and wet springs
are the biggest enemies of farmers in Germany, not only for fruit but also for vegetables. Climate change has made weather
patterns more unpredictable.
For fruit such as cherries, strawberries, plums and blueberries, late frosts or wet springs can negatively influence the fruiting
process by inhibiting plant blossoms. This has led to double-digit percentage losses in harvesting volume in the course of the
past five years, with the largest drop for sweet cherries. In contrast, sour cherry production levels have declined as Eastern
European markets have increased their market share. Sour cherries are mostly used in the food processing industry, while
sweet cherries are destined for the end consumer, therefore commanding much higher prices. Similarly devastating declines
were felt by potato farmers in 2013 when a wet spring delayed planting and resulted in a 13.4% drop in harvest volumes.
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Apple most planted fruit
Apples are the most important fruit grown in Germany. In 2013, 31,689 hectares were cultivated with apples producing a
harvest of 797.5 thousand metric tons. The most popular varieties are Elstar, Jonagold, Jonagored, Gala, Braeburn, Idared
and Golden Delicious. The most important apple growing regions are Baden-Württemberg followed by Lower-Saxony, each
contributing close to a third of the harvest. Apples are easily stored for up to one year in atmosphere-controlled warehouses
and Germany achieves up to 40% self-reliance in terms of domestic supply for annual consumption. Apple production is
stable, with fluctuations only occurring due to adverse weather conditions. Between 2007 and 2012, apple production fell
slightly from 1,070 thousand metric tons to 972 thousand metric tons, a decline by 9.2% over five years.
The potato is the most important vegetable crop
Potato harvests can also be badly affected by weather conditions. The most important staple of the German diet suffered
negative harvesting volumes in 2013, when a late winter and wet spring caused the lowest harvest volume of potatoes in the
past ten years. Only 9.2 million metric tons of potatoes were harvested, a reduction of 20% compared to 2012. Lower supply
drove retail prices of potatoes up by up to 50%.
Table 7
3
German Potato Production 2007-2011 (‘000 metric tons)
Source: BMELV Statistik
Year
Production
Import
Export
Domestic use
2007
9,468
1,854
4,385
7,547
2008
10,969
1,733
4,266
8,130
2009
10,690
1,821
4,465
7,912
2010
10.963
1,762
5,033
8,038
2011
9,556
1,835
4,625
6,906
Overall, the potato has been a very
stable crop in Germany. Despite
the
area
under
cultivation
decreasing from 548,000 hectares
in 1990 to 238,000 hectares in
2012, yield per hectare has
increased from 25.6 metric tons to
44.8 metric tons in the same period
by improved growing techniques.
Berries and lettuce are increasing in demand and production is attempting to keep up
Sour cherries
12.9
28.8
Sweet cherries
23.0
34.5
Pears
33.9
49.9
Plums
35.6
65.3
Production shifting to Eastern
Europe
Declines due
to poor
weather
Overall, harvest volumes of the most common fruit and
vegetables
are
rather
stable,
notwithstanding
fluctuations in the weather. No other significant factors
impacted on the reduction of harvest volumes in the
review period of 2007 and 2013.
Berries
have
grown
“It is a pretty stable
strongly, especially in
environment we are
2013, as land under
dealing with here. Most
155.8
Strawberries
cultivation increased by
changes in production
Steady,
156.6
volumes were due to
7%
to
7,300
hectares
in
always
972.4
weather, only lettuce has
Apples
popular
2013, resulting in a 17%
1 070.0
seen an increase because
increase
in
harvest
of ‘trends’” – Deutscher
Chart 26 Fruit Production 2007 / 2012 (‘000 metric tons)
volumes to 32,200 metric
Bauernverband, Producer
Source: Federal Statistical Office, Destatis
tons despite adverse
Association
weather. Blueberries with 10,300 metric tons formed the largest share, followed by
blackcurrants with 6,800 metric tons, redcurrants with 5,800 metric tons and raspberries with 4,300 metric tons.
Table 8
Harvest Volume Key Vegetable Types 2007-2012 (000’ metric tons)
Source: Destatis, Federal Statistical Office
Broccoli
Iceberg lettuce
Lamb’s lettuce
Lettuce
Spinach
Carrots
Cucumbers
Pumpkins
3
2007
26.0
118.3
18.7
71.4
61.4
562.3
183.6
41.8
2012
33.7
183.5
15.4
71.1
77.1
592.8
193.6
69.0
% Growth
29.3
55.1
-17.5
-0.4
25.6
5.4
5.5
65.2
Opportunities
Considered a superfood
Convenience driving growth
Popularity of other lettuce types
Universal popularity
Universal popularity
Universal popularity
Novelty inspires growth
2012 not yet available from this source
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Table 8
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23
Harvest Volume Key Vegetable Types 2007-2012 (000’ metric tons)
Source: Destatis, Federal Statistical Office
2007
2012
% Growth
Opportunities
Zucchini
33.6
41.1
22.2
Universal popularity
Onions, incl. shallots
377.6
484.6
28.3
Universal popularity
Production volumes of many vegetables show positive growth from 2007 to 2012 in response to increased demand for
example for different types of lettuce.
IMPORT/EXPORT
German market has opportunities for importers as some half of local consumption is imported
Overall, Germany imports around 50% of its fresh produce. In contrast, exports of fruit and vegetables are comparatively
minor, as most is used locally, either fresh by consumers or in food processing. In terms of value, only 21.4% of fruit and
vegetable production was exported in 2012. Imports are vital for the German economy in feeding its population and supplying
the food processing industry with raw materials.
Tropical fruit have experienced a decline in imports, with rising prices among the most important reason. Manufacturers of
fruit juices, for example, switch to other fruit types to maintain the profitability of their products. At the same time, concern
about reducing the carbon footprint of fresh produce as well as a tendency for buying regional produce are also influential
factors in changing consumer appetite for tropical fruit.
A large amount of exports from Germany are re-exports into neighboring countries. Due to its central European location, and
strong trade links across the EU, produce from countries such as Spain, the Netherlands and overseas arrives in German
ports and is re-exported to Eastern European countries, for example. A distinction between domestically produced exports
and imported produce which is subsequently re-exported is difficult to make. However, all types of cabbages, onions and
especially potatoes as well as bananas are among the highest volume fresh produce re-exported.
Leading trade partners for fresh produce mostly from the EU
Spain, Italy, France and the Netherlands are the most important fresh produce suppliers to the German market and as EU
members benefit from the absence of tariffs, adherence to EU quality standards and shorter transportation distances.
Spain is the largest importer
of fruit into Germany, with an
import volume of 706,000
2008
2009
2010
2011
2012
metric tons of oranges and
EU countries
2,807.4
2,758.1
2,922.1
2,881.0
2,637.4
mandarins into Germany in
Rest of the World
227.8
262.1
238.7
254.5
236.4
2012. Spain is also an
Table 10 Imported Fresh Fruit EU versus Rest of the World (000’ metric tons)
important source of numerous
Source: BMELV Statistik (www.bmelv-statistik.de)
vegetables which thrive in its
2008
2009
2010
2011
2012
warm climate. Proximity and
EU countries
1,660.9
1,660.5
1,786.3
1,661.2
1,667.6
favorable weather make Italy
an important supplier for
Rest of the World
502.3
467.7
399.5
389.1
317.5
many fruit and vegetables,
such as tomatoes, pears, apples, grapes, peaches, plums among others. Turkey has a similar climate but none of the
advantages of EU membership. Nonetheless, some table grapes in Germany come from Turkey.
Table 9
Imported Fresh Vegetables EU versus Rest of the World (000’ metric tons)
Source: BMELV Statistik (www.bmelv-statistik.de)
The Netherlands has a strong agricultural sector, and ranks highly in supplying tomatoes, apples, potatoes and other
vegetables to Germany. Its large and highly sophisticated greenhouse and open farming sector, plus close proximity to
Germany have made the country one of the largest suppliers to the market for decades. However, production methods have
received some bad press over the years and the stigma of greenhouse products still lingers in consumer perceptions.
In winter, larger volumes of produce such as grapes and oranges are imported from southern hemisphere countries,
especially South Africa, Chile and Argentina. Bananas are the most important exotic fruit and arrive from South American
countries almost exclusively. Ecuador, Colombia and Costa Rica supply 90% of bananas imported into Germany.
Well established trade partners
No significant changes are expected in Germany’s main trading partners or importers of fresh produce. Although China has
seen a major increase in the import volumes of grapefruit, for example, the most important trading partner will remain
neighboring EU countries such as Spain, France, the Netherlands and Italy. Strong and well-established trading links, not to
mention established quality norms set by EU regulations, make EU countries trusted trade partners.
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Chart 27 Key Fresh Produce Imports, Import Partners, Exports and Export Partners 2007-2012 (Font Size Indicates
Average Annual Trade Volume; Benchmark Font Size is in the Right Bottom Corner)
Source: UN COMTRADE
Changes of import volumes from individual countries are influenced by harvesting volumes in the country in question and
prices on the world market. A good harvest of oranges in Spain may lead to a reduction in imports from South Africa, for
example.
Cost and time of imports compares favorably against Germany’s peers
Importing into Germany is cost-efficient and fast. In 2014, average costs of importing into Germany are projected to be
US$940 per container and US$905 for exporting a container, both of which are below the respective EU averages of
US$1,070
and
1 738
1 655
21
US$1,035.
Import
18
times are fast as well,
with an average of 7
1 090 1 070
1 070 1 035
12
days to import and 9
940 905
11
11
10
to export in the same
9
7
year. EU averages
are 11 and 12 days,
respectively.
Germany
EU Average
BRIC
Average
OECD
Average
Chart 28 Cost to Import and Export Doing
Business 2014 (US$ per container)
Source: Doing Business 2014 - The World Bank
Germany
EU Average
BRIC
Average
OECD
Average
Chart 29 Time to Import and Export Doing
Business 2014 (days)
Source: Doing Business 2014 - The World Bank
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SUPPLY CHAIN
SUPPLY CH AI N STRUCTU RE
General structure of fresh produce supply chain in Germany
Chart 30 Trade Structure and Companies Operating at Each Point in the Supply Chain in Germany
Source: Euromonitor International from company sources
Supply chain has been put under control of retailers in recent years
The supply chain has undergone consolidation in the past decade in terms of the number of players involved. Whereas
traditionally farmers and their cooperatives sold to wholesalers and distributors, nowadays modern retail chains such as
Edeka, Rewe and Metro have established direct links with farmers and their cooperatives to source the freshest, and most
regional, produce directly. The increasing buying power of retailers and their ambitions to speed up the supply chain in terms
of logistics, have led to wholesalers and other intermediary players losing market share. The vast majority of the German
market for fresh produce, or an estimated 80%, is handled by the top retailers.
Importers such as UNIVEG, Cobana and Dole still play a major part, especially with more exotic produce from overseas.
Regional cooperatives such as Raiffeisen or BayWa also control large parts of the supply chain. However in terms of
domestic produce, the largest volumes are handled via retailers directly. Retailers may use third party logistical companies
for transport, but often logistics are also handled by retailers themselves to extend control over all aspects of the supply
chain, especially costs and freshness.
“Supply chain challenges mainly
Nonetheless, for a lot of seasonal produce such as strawberries, cherries and
lie with retailers these days. At the
seasonal vegetables, local wholesalers or cooperatives continue to play a major role
farmers side everything is quite
well organised. The challenges lie
as their connections to farmers and producers are strong.
with getting it all to the right store,
and quickly” – Wholesaler
SUPPLY CH AI N CH ALLE NGES
An efficient supply chain is in place to assure highest quality
The supply chain for fresh produce in Germany is characterized by efficiency at local and national level. A sophisticated road
network, technologically sophisticated trucks with cooling and atmospheric control systems handle the delivery and transport
of fruit and vegetables. All major farms are connected to a regional or federal cooperative that supports the distribution of
their product to purchasers, be it retailers or wholesalers, and contracts with retailers ensure speedy delivery. With local
sourcing and seasonality two keys trends for consumers, fast delivery of fresh local produce is considered essential.
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For example, Germany’s largest retail Edeka, with 11,900 stores, operates through seven regional cooperatives, which deal
with farmers and other producers within their catchment range and source produce from them to guarantee the shortest and
most efficient supply chain link. Other retailers such as Rewe have distribution centers around the country handling the
supply from local producers to achieve similar efficiency and freshness of produce.
There are no significant technological, political or organizational challenges to the delivery of fresh produce in Germany.
Players in the industry have long-established and well-honed practices which have established an efficient supply chain. The
biggest factors impacting the supply chain are fuel costs, although this has been taken into account and there have been no
significant upsets in the past decade in this context.
Food scandals and hygiene are on-going worries inside the industry
An outbreak in 2011 of EHEC (Enterohaemorrhagic Escherichia coli), a violent gut bacterium, in northern Germany which
caused the death of 50 people and caused illness in 3,842 people, highlights challenges concerning the traceability of food.
The cause of the outbreak remained unidentified for weeks, with cucumbers, tomatoes and other fresh fruit from Spain first
targeted as possible sources of the outbreak. As a result, consumers boycotted Spanish vegetables, causing damage to the
Spanish fresh produce export industry, one of the key industries and employers in the south of Spain. Eventually, the cause
of the outbreak was traced to fenugreek seeds from Egypt, which were used by a growing farm in Lower-Saxony. Other
traces of the bacteria were also found in bean sprouts.
Food watch and public health organizations claimed that the true source of the outbreak will never be known. Federal
government institutions declared the outbreak contained in the summer of 2013. Health institutions have used this incident to
raise concerns around a lack of adequate traceability of fresh produce brought into the EU, as better traceability could have
prevented loss of life and illness for many consumers. Although the EU had implemented measures to set this in motion as
long ago as 2005, no comprehensive system is yet in place, and stakeholders continue to make calls for EU regulations to
adapt to global sourcing in supply chains.
Freshness and speed important supply chain objectives
On a domestic level in Germany, speed and freshness, a byword for quality, are the two most important factors which the
supply chain has to meet. This is particularly the case for seasonal produce which needs to travel quickly from producer to
end consumer via several stages including cooperatives, wholesalers and retailers. Keeping prices low while still maintaining
food safety and freshness are important objectives.
Ethical sourcing standards are starting to permeate the supply chain, as consumer awareness of issues surrounding fresh
produce and food production in general grows. Many consumers want the assurance that their fruit were not harvested by
child labor, for example. Along with ethical sourcing, sustainability is also important not only to consumers but stakeholders
as well, and includes the level of waste generated along the supply chain.
COLD CH AIN M AN AG E MEN T
Cold chain management instrumental in assuring freshness
Germany’s cold chain management system is very sophisticated. Regulations are in place which require constant cooling at
prescribed temperatures depending on the type of fruit or vegetable to assure freshness for as long as possible throughout
the supply chain. All parts of the supply chain have to maintain continuous cooling throughout, and prove they did so.
Cooling units in trucks and warehouses are increasingly sophisticated as companies such as 360 Quality specialize in
offering unbroken supervision of the cold chain. Global positioning systems (GPS) are in place to assure constant cooling
and its documentation throughout the supply chain. Packaging producers and containers exist for specific types of
vegetables to ensure produce-appropriate storage and transport to avoid waste and cross-contamination of products.
Separation of certain products from each other also assures that one type of produce cannot have an adverse effect on
another.
Supply chain vehicles, if transporting more than one variety of fruit and vegetables, will have different cooling departments,
depending on the requirements for each variety. For example, apples will be transported in a chilled environment of 1 to 4
degrees Celsius, while mangos will be transported at 12 degrees Celsius.
Fresh produce is stored in atmosphere-controlled warehouses located throughout the country which also have separate
sections so that different produce can be stored at its appropriate temperature. Apples, for example, are usually destined for
long time storage under such conditions. After harvest, apples can be stored for up to 12 months in atmosphere-controlled
warehouses, although the preferred time is around 6 months.
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GOVERNMENT REGULATIONS
TR ADE REGUL ATORY ENV IRONME NT
High standard regulatory environment to assure quality and safety of fresh produce
Germany’s membership of the EU is the key driver of trade and food safety regulations
for the country. As a leading member, Germany has significant influence in shaping the
direction of regulations for the EU.
Germany is a Member of
Food safety is the most important concern of federal authorities. The most important
regulatory institutions / authorities for this purpose include


Bundesministerium für Ernährung und Landwirtschaft (Federal Bureau of Food and
Agriculture) which implements EU policy on a national level, and
European Food Safety Authority (EFSA) which supervises all aspects of standards and safety.
Veterinary and phytosanitary experts from the Federal Bureau of Food and Agriculture monitor and check food imports at
entry points into the country according to EU Regulation 2000/29/EG which lists the requirements and the products that need
a phytosanitary certificate for imports into the EU. EU supervisory authorities also check compliance with regulations. On a
local level, produce, and especially processed foods, is supervised and checked by local health authorities. Most importantly,
a German law requires “Selbstverpflichtung” or self-commitment, meaning all producers of food products have to adhere to
checks by licensed food safety laboratories to ensure the safety of their produce. For imports, this is handled at port of entry.
Classifications in place to determine price and quality of produce
For the distribution and sale of fresh fruit and vegetables produce is classified by its quality. Quality standards are split into
three trade categories, or “Handelsklasse”, namely “Handelsklasse Extra”, “Handelsklasse 1” and “Handelsklasse 2”.
Produce of the finest quality is labeled “Handelsklasse Extra” and the lowest quality produce is marked “Handelsklasse 2”.
The classification labels will be printed on boxes and containers in which the produce is transported for receiving retailers to
ascertain the quality of the produce. The “Handelsklasse” labeling system is subject to EU quality norms.
Currently no bans on fresh produce
Fruit and vegetables can be sold freely in Germany, although distribution of produce from outside the EU is monitored. Taxes
and import tariffs are imposed at port of entry, according to EU regulation 15-80 which deals with the import and regulation of
produce from outside the EU. EU and German regulations impose varying quotas and import taxes for fresh fruit and
vegetables, depending on the country of origin, which are overseen by German customs at all ports of entry. The valueadded tax on fresh fruit and vegetables stood at 7% in 2013.
No major fruit and vegetable varieties are banned from importation into Germany at present, although exceptions are in place
for garlic and produce from similar botanical families, for example chives, which require a special license if imported from
outside the EU. Further special arrangements for fresh and chilled mushrooms (champignons) are regulated under EU
directive 1979/2006.
Imports of fruit and vegetables are subject to EU regulations. German authorities may, however, impose specific guidelines
and bans on a short-terms basis in case of any emergencies, such as during the EHEC (Enterohaemorrhagic Escherichia
coli) outbreak in 2011. As Germany is a federal republic, individual federal states also have the power to regulate and create
laws on a local basis within the bounds of the constitution. However, unless there are specific circumstances warranting a
local regulation, these are highly unlikely to go against overall federal or EU rules.
When distributing fresh produce inside the EU, several important marketing norms and control directives are in place. The
main directives and regulations are found under directives 1234/2007 and 543/2011, both of which are updated frequently.
FOOD S AFETY REGUL ATI ONS
Stringent food safety regulations are assure the consumer
German has a sophisticated food safety regulatory environment ensuring safety standards are met from port of entry
throughout the supply chain. One of the leading companies overseeing food safety and standards throughout the supply
chain is the QS Qualität und Sicherheit GmbH, which issues the blue QS label found on most fruit and vegetables in retail
outlets assuring food safety.
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Importers, wholesalers and retailers throughout the supply chain use the IFS certificate systems to control and assure food
safety.
The EU has an organic food labeling system for processed foods, and the EU organic farming logo is the
most distinctive label certifying organically processed foods in German retail outlets. Products can obtain
this logo if they contain no more than 0.9% of genetically modified material and 95% of its ingredients are
sourced from organic farming. The logo is mostly found on processed foods.
For organic fresh produce, regional cooperatives and labeling systems certify organic
produce. Due to the fragmented nature and regional production processes of the
German farming sector, several different organizations have their own labeling system.
Demeter, Bioland and Naturland are among the largest.
Genetically modified a thorny issue for German consumers
Genetically modified foods, and especially fresh produce, are frowned upon and highly regulated by the EU. There is no
production of notable size of genetically modified fresh produce in Germany. Overall, over 80% of Germans strongly oppose
the production of genetically modified fresh produce in the country, and farmers and
“It is hard to imagine Germans
retailers are aware of this, avoiding their cultivation.
warming up to the concept of GM
foods – trends go in the opposite
The EU commission has allowed the use and distribution of genetically modified soy
direction, more natural foods and
and corn. Any products containing such produce have to be clearly indicated, and
so on” – Retailer
they are subject to stringent scientific tests and oversight by the European Food
Safety Authority (EFSA). Currently, the EU has allowed 48 genetically modified organisms. The large majority of these are for
animal feed and food processing. Member states are allowed to reject the import of these products on a national and
individual basis if they have some reason to believe these products are a risk to human health.
The issue of traceability comes into play here as well, as being able to trace the origin of fruit and vegetables also allows
authorities to gauge whether or not they could be genetically modified. Although most EU countries have a negative view on
genetically modified produce, some member states are more lenient. Spain is the largest user of such food stuffs, with
76,000 of genetically modified maize planted in 2009. Stringent country of origin and rules how to track these products are
causing difficulties maintaining rules on certification of food stuffs.
Given that food processors often use fresh produce from more than one source or country in their products, food products
based on fresh fruit and vegetables are becoming harder to control and certify. Recently, genetically modified traces of
vegetables were found in baby foods and other products which were labeled as organic. The issues and guidelines for what
is genetically modified and what is not are blurring.
For example, even organic farmers are technically allows to use CMS-hybrids. CMS hybrids
result in plants of one gender only and as a result do not fertilize themselves anymore, which
results in higher yields. The issue of whether or not this is already genetic modification is
currently a fierce debate amongst consumer watchdog organizations.
Products, which have in any way have come into contact with genetically modified materials
have to be meticulously certified and labeled according to EU norms. The main label to certify
GM-free foods and to reassure consumers is the “Ohne Gentechnik” logo.
Pesticides’ use and registration regulated by EFSA directives
The EFSA determines the use of pesticides and other chemicals in the production of food produce inside the EU. It is
responsible for ascertaining the risks and use of pesticides in fresh produce production throughout the European Union. The
marketing and use of pesticides, and allowable trace amounts in fresh produce, is regulated by a number of key EU
directives. The main directive regarding which pesticides can be used and how to apply them is EU 91/414/EWG.
Registration and approval is strictly necessary before their use.
EU rules on plant protection products establish a “dual” system:


The Commission approves the active substances contained in the products;
EU countries authorize the products on their territory and ensure compliance with EU rules.
EU review strategies on pesticides have seen a large number of them removed from the market. Of over 1,000 active
substances used by member states before 1993, only 26% have passed through the harmonizing processes.
Issues relating to residues and allowable traces of pesticides in fresh produce are regulated under EU directive 396/2005.
The latest adaption of these directives occurred in November 2009, when a new directive 1107/2009 came into force which
harmonized the national registration rules of pesticides.
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REGUL ATO RY OUTLOOK
Most pressing issues for EU imports are traceability and conformity
The most important issue for fresh produce distributed inside the EU is traceability, and the EU has been working on
establishing an appropriate regulation since 2005. Recent food scandals such as the horsemeat scandal and the outbreak of
EHEC have put new urgency for establishing such procedures.
In terms of import tariffs, a liberalization of them, rather than a hardening, is expected for the medium future.
Overall, there is a trend towards greater conformity inside EU decision making when it comes to the import, export,
production and distribution of fresh produce and food stuffs in general. While certain regulations regarding the size and “look”
of fruit and vegetables required for their distribution inside the EU may have been the source of ridicule by adversaries of EU
bureaucracy (such as regulations regarding the shape of cucumbers), there is a consideration at the moment to outlaw
certain types of seeds to grow fruit and vegetables, privately and commercially. If passed, such a regulation would have
wide-ranging implications on the production and import of fresh produce into the EU. The type of vegetables and fruit and
from what seeds they are grown would become a major issue for producers and importers.
Critics claim that the new directive would hurt diversity of the agricultural system, lead to monocultures and general
weakening of the diversity of the agricultural sector, leading to a frailty inside the sector. The more diverse a biological
system is, the more it can be resistant to adverse influences. Furthermore, large corporate companies such as Montesant
would be the only benefactors of such regulations, monopolizing a key sector of food production and pushing out diversity of
the producing economy.
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COUNTRY REPORT: FRESH PRODUCE IN GERMANY
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FUTURE DEVELOPMENTS
Consumption of fruit and vegetables to grow driven by health trends and supported by a
positive economic outlook
German economic growth is expected to be positive over the next five years, and consumption patterns are not negatively
impacted by macroeconomics. Overall, consistently moderate to strong growth is anticipated across all fresh fruit and
vegetable varieties.
Government campaigns highlighting the health benefits of increased and sustained fruit and vegetable consumption, and ongoing campaigns by public and private institutions have increased health awareness and are promoting their consumption.
Generally speaking, the public appears to be listening. Efforts to eat less meat, also for health reasons, are also expected to
benefit fruit and vegetable consumption.
Increasing levels of consumption for fresh produce are expected to open further opportunities for imports, as popular fresh
fruit such as grapes, oranges, berries, bananas, apples and pears are expected to face rising demand. Well-established
importing countries, mostly EU partners, will be the benefactors of this development.
One country likely to export more into the EU in general and Germany in particular is Turkey as its rapprochement towards
the EU is progressing. While full EU membership may be some time away, economic deals are on the rise and Turkish
produce is becoming ever more attractive to EU markets. Turkey already supplies, for example, grapes to Germany. Decline
of imports from some Middle Eastern and North African countries such as Egypt due to the Arab spring and resulting
instabilities have led to a drop of imports from this region. Turkey has been one of the beneficiaries of this.
Demographics to change slightly towards a wider influence of cultures and an ageing
population
Germany’s ageing population is seen as a long-term challenge for economic output and productivity which will change
consumption patterns as a whole, as the elderly have less disposable income and greater needs demand for convenience.
However, increased migration into Germany from southern European countries of Italy, Spain and Greece as well new
member states Romania and Bulgaria may stall the impact of ageing while also introducing different fresh fruit and vegetable
consumption patterns.
Retailing looking for more convenience, while the trend for local and ethical products will
continue
The current drive to advertise the presence of local produce in stores is
expected to remain one of the most important trends in German
retailing. Organic produce is also found in all major channels, including
discounters.
Sustainability and ethical shopping will make their mark, as shoppers
are more aware of environmental and trade issues. Fairtrade is currently
starting a major campaign in Germany to drive its logo and products in
the market, and its philosophy fits with overall trends towards raised
awareness on sourcing and trade. Ethical decisions when buying fresh
produce are a recurring theme, whether it is for domestic or overseas Picture 4 Baden-Württemberg Cherries
Source: http://www.regionalfenster.de/
produce.
German farming not expected to see major changes
The German agricultural sector is well-established and stable, which extends to the types of fresh produce planted on a
particular farm. As a result the overall structure and production pattern of the German fresh produce sector is unlikely to
change noticeably in the near future. However, particularly in response to increasingly unpredictable weather, some farms
are establishing economically more productive methods such as overhead foliage for cherry trees or greenhouses for
strawberries.
European winters provide import opportunities for fruit from the southern hemisphere
Citrus fruit cannot be grown on a commercial scale because of the local climate and are therefore a
major import item. Most come from Spain which sold 706,000 metric tons or 85.2% of total demand for
oranges, clementines and mandarins in 2012. During winter months, oranges and grapefruit mainly
arrive from southern hemisphere countries such as South Africa, Argentina and Chile, for example.
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COUNTRY REPORT: FRESH PRODUCE IN GERMANY
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The lack of sunshine makes German grapes suitable only for wine production. In 2012, table grapes
were imported predominantly from Italy with 118,400 metric tons, followed by Greece and Spain with
29,400 and 26,400 metric tons, respectively. Growers in the southern hemisphere, from South Africa,
Argentina and Chile take advantage of the lack of European supply during winter.
Strawberries and cherries are amongst the most popular fruit in Germany, but local production is easily
compromised by adverse weather conditions. Although local is preferred, in early spring and late
autumn, imports from southern European countries extend the season and offer a guaranteed supply.
Local production of apples can meet 30% of demand if harvest conditions are favorable. The
Netherlands and other neighboring countries have taken the opportunity of providing significant volumes
of apples. This is also the case for pears. The largest volumes of pears are imported from Italy, with
56,300 metric tons in 2012, followed by the Netherlands with 29,100 metric tons and South Africa with
18,100 metric tons.
Novelty fruit such as pomegranates, blue grapes from Turkey and peach variety paraguyo are also likely
to attract attention from German consumers
Import opportunities for specific vegetables
Very few vegetable varieties are entirely imported, and domestic production of many popular vegetables is high. Still some
sectors have traditionally always been served by imports. Vegetable imports from EU partners are seen as the largest
benefactors of rising vegetable consumption, and in general, the best opportunities continue to exist for EU trade partners.
Tomatoes are a very popular vegetable in Germany. Domestic production of 61,200 metric tons in 2012
barely covers consumption of 1.7 million metric tons of fresh and processed tomatoes in Germany. The
Netherlands with 354,300 metric tons, Spain with 163,500 metric tons and Belgium with 58,600 metric
tons were the main exporters making up the shortfall.
Recently, vegetables such as broccoli, zucchinis, aubergines and other Mediterranean vegetables have
become ever more popular in Germany given new cooking styles and expanding vegetable diets.
Mixed convenience-style salads are becoming popular in retail outlets and could be offered as a value
add by exporters.
Potato consumption is facing some competition from other staples such as rice and pasta and is in slight decline or stable.
Poor harvests and rising prices have contributed to this trend.
Flowers are expected to grow further due to rise in
cultural events
Giving flowers as a gift or a simple gesture of friendship is a common
social and cultural act in German society. Fresh flowers are part of an
affluent household, while the rise in the growth of specialist flower selling
chains, such as Blume 2000, and similar stores are making fresh flowers
cheaper and more widely available.
Events such as Valentine’s Day are not yet thoroughly accepted in
Germany but younger generations have embraced them.
Barriers and regulation levels will remain high and look
to create further uniformity in produce offer
Picture 5 Blume 2000 Specialist Flower
Selling Chain
Source: http://www.sparspion.com/
Food safety, traceability and the establishment of common marketing norms for fresh produce will be the most important
issues in the near future for the distribution of fresh produce inside the EU. German regulations are expected to follow suit.
While trade barriers continue to be slashed wherever possible, in other areas opportunities are potentially cut out as
regulations create barriers for smaller players.
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