Horticulture industry: production,
preservation and processing of fruits and
berries in Estonia and Latvia
RIGA, JUNE 2010
„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
CONTENT
Summary ......................................................................................................................................... 3
THE DEVELOPMENT OF LOCAL ORIGIN PRODUCTS’ MARKET: THEORETICAL
REVIEW ......................................................................................................................................... 8
Branch of local origin products................................................................................................... 9
Development of direct trade...................................................................................................... 18
Promotion of processing products ............................................................................................ 23
HORTICULTURE INDUSTRY IN LATVIA.............................................................................. 28
Characteristics of the sector ...................................................................................................... 29
Trade balance ............................................................................................................................ 32
Consumption of fruits and berries juices .................................................................................. 36
Offer of fruits and berries juice ................................................................................................. 37
Home manufacturing of plant origin foods ............................................................................... 44
Positioning of home manufactured foodstuffs .......................................................................... 54
Product flow in home food manufacturing ............................................................................... 58
Impact of external environment factors .................................................................................... 61
Legislative framework .............................................................................................................. 66
HORTICULTURE INDUSTRY IN ESTONIA ........................................................................... 67
Level of Estonian fruit and berry growing until 2008 .............................................................. 68
What are the reasons for small crops? ...................................................................................... 70
The export and the import of fruits and berries in Estonia ....................................................... 72
The consumption of fruits and berries ...................................................................................... 78
Data about the consumption in the 21st century ........................................................................ 79
Organic products ....................................................................................................................... 82
Preservation conditions of fruits and berries in Estonia ........................................................... 84
Processing of fruits and berries in the best-known enterprises in Southern Estonia ................ 86
Results of the survey carried out among Estonian fruit and berry growers .............................. 94
SOURCES OF INFORMATION ............................................................................................... 107
Study developed: Dace Dance, Ģirts Kindzulis, Vilis Seleckis, Juris Čarbarts
Study translated: Linda Sūniņa
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Summary
 Development of foodstuff industry
Development of foodstuff industry of local origin mainly is related with the possibility to
increase incomes of farms and development of rural area. Significance of the branch is
regularly underlined in documentation of rural development policy. Defenders of “local
foodstuff” together with researchers of the phenomenon of this branch have identified
two mutually connected directions of the branch: (1) Local foodstuff underlines the local
origin as closed or limited system, where foodstuff is produced, processed and sold in
geographically restricted area. In some way it establishes channel system for good
delivery as an alternative for conventional products. This system contains such product
channels as farmers’ markets, farm shops, food delivery baskets and other direct forms of
trade. (2) Local foodstuff can be as an added value for export. It means a particular
product is being labelled with the origin of place and certified, but it can be purchased
and consumed in other geographical place.
In such case the local origin is being
associated with a special assortment, traditional products and quality of products.
 Role of foodstuff manufactures
The activity of local foodstuff manufacturers gives not only the economic advantages in
form of profit for the manufacturers themselves, but establishes supplementary
advantages for the society in general: Firstly, their activity is a support for development
of common agriculture, small entrepreneurship and economic activity of the region.
Secondly, manufacturing of local products helps to establish loyalty between
manufacturer and customer. Thirdly, local foodstuffs are connected to identity of region;
their manufacturing helps to preserve sand bring forward traditional knowledge. Exactly
this can be done by manufacturers with their basic business.
Values of product manufacturers of various levels can differ. Research, which covers the
comparison of value of farms and conventional products, determines the basic value for
both manufacturing groups is the same – provide the highest quality products for their
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
customers. Both abovementioned manufacturing groups have several significant factors
as: values of customer, care for employees, honesty, offer of tasty food, ethics and social
responsibility, as well as competitiveness.
 Production trends of fruits and berries
In Estonia in the year 2001 the area of orchards and berry gardens was 18,526ha and the
total production amounted to 27,031 tons including 18,232 tons of fruits and 8,343 tons
of berries, in addition 456 tons of other berry cultures. By the year 2004 the area of
orchards and gardens had decreased to 15,690ha and the decrease was constantly
continuing being 8,100ha in 2008. Consequently, during a couple of last years the area of
fruit trees and berry bushes decreased almost by half in Estonia.
In Latvia areas of orchards and berry gardens in total has decreased from 13.6 thousand
ha in 2006 to 7.4 thousand ha in 2008. Accordingly total production has decreased from
46.3 thousand tons in 2006 to 32.4 thousand tons in 2008. Positive trend is seen in
production effectiveness on 1 ha – it has increased from 33.7 to 44 centers of one ton in
Latvia. According to official statistics there were 80ha of orchard seed-plots and 14ha of
berry seed-plots in Latvia in 2007.
 The location of orchards and berry gardens
In Estonia concerning the area of orchards and berry gardens, the biggest area is in the
County of Tartumaa – 12% of the total area of agricultural enterprises in Estonia. The
following positions are occupied by the Counties of Võrumaa and then Viljandimaa. The
smallest number of fruit trees and berry bushes is grown on the islands of Hiiumaa and
Saaremaa where the population is the smallest. Also, the County of Läänemaa has few
fruit trees and berry bushes which are very few in the counties with the severest climate –
Eastern-Virumaa, Järvamaa and Jõgevamaa, also Western-Virumaa and Raplamaa.
In Latvia there is no data available on statistics of location of orchards and berry gardens
in Latvia.
 Factors affecting crops
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
In Estonia in the recent years winters were as if mild: long periods of thaw, the
temperature was rising in December and January even over +100 C. The plants stopped
resting and started life activities. Then there were some frosty day with the temperature
below -200C or -250 C (in some places -300C). It especially harmed buds of blossom but
also destroyed the branches of plums trees and currant bushes. In several years the
strawberry plants suffered from frost when there was no snow cover and the roots froze.
Many raspberry stalks perished.
The decrease of fruit and berry plantations was caused to a great extent by the growth of
the people`s incomes and the increase of the people`s labor engagement. On the basis of
the questionnaire we may reveal the absence of time, wish and need for producing garden
crops. A significant reason is also the easy access to fruits and berries, their cheap price,
high quality in retail trade. This is why many production gardens have been turned into
pleasure gardens. Old (large) farm gardens were not taken care of because the crop could
not be sold; in the end the fruit trees were felled and berry bushes rooted out. This is why
the area of berry bushes has been greatly reduced (Table 1).
The year 2009 gave good crops. Several entrepreneurs have extended their apple
orchards, planted berry cultures. There are also new beginners – the founders of apple
orchards. On the plots of new private houses young fruit trees have been planted.
 Export and import of fruit and berries
Not all fruits and vegetables can be grown in Latvia and Latvian inhabitants are unable to
consume all domestic production. In 1st quarter of 2009 a total value of fruits, vegetables
and canned food group export comprised 6 millions LVL, and import – 24 millions. The
difference is explained by seasonality and market demand for exotic fruits and vegetables
during winter/spring months. Group of drinks and juices shows less difference in trade
balance. During first month of the year export comprised 20 MLVL and import
19 MLVL. The biggest export of fruits, vegetables and preserves was to Baltic States (3
MLVL). CIS countries were the second group of states accepting export of fruits,
vegetables and preserves (1 MLVL). In comparison, export of drinks and juices goes to
several groups of states. The biggest export of drinks and juices was to Baltic States and
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CIS countries (6 MLVL). A big amount of export also went to OECD states (total value
of export 5 MLVL).
The greatest import of fruits, vegetables and preserves during first months of the year was
from EU-15 states (total value of import – 11 MLVL), registered import from Baltic
States was 4 MLVL. The greatest import of drinks and juices was from EU-15 states
(7 MLVL). The greatest recent import of fruits came basically from Holland and
Lithuania. On its turn, the greatest import of vegetables was from Holland and Spain.
The total export of Estonian products in 2008 was 975 tons: 33.9 million EEK. Aannual
import of apples has mostly been twelve to thirteen thousand tons, in the years of a lean
harvest even more. The preferred sender was Poland. A quarter to one third of imported
apples come from Poland, in the year 2005 the amount was even 54%. The reason is the
cheap price of the Polish apples: in 2008 the declared price 6.13 EEK/kg. At the same
time the apples bought from Spain, the Netherlands and Belgium were two times more
expensive. In the previous year the second place by weight was occupied by apples
brought from the Netherlands (almost one fifth), the following place with 10-11% was
occupied by Belgium, Germany and Lithuania, then three times less was brought from
France and Spain. Even smaller amounts came from Italy, Brazil and China. Among
import countries there were also Latvia, Hungary and the South African Republic.
 Main challenges for sector development
Main challenge for sector development is linked to product value development. To get
economical advantage and to become competitive producers need to proceed their
products (e.g. to make apple juice) not only to sell basic products (e.g. apples). In both
countries main challenger in this sector are cheaper imported products as well as sales
channels development issues, for example in small producers cannot sell their proceeded
products (e.g. jams) in the retail stores, but only in the direct sales channels that limits
production values and economical growth of the sector.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
THE DEVELOPMENT OF LOCAL
ORIGIN PRODUCTS’ MARKET:
THEORETICAL REVIEW
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Branch of local origin products
Factors affecting development of the branch
Development of a branch can be affected by interrelation of different environmental factors.
Development of such branches, which are based on small enterprises, is mainly affected by
availability of capital. If there are no sufficient financial resources for the enterprises themselves,
the credit reception from banks can be difficult. In such cases the state support mechanisms in
form of tax benefits and grants can be used as support for the development. The other significant
issue, which affects development of the branch, is the education level of managers and level of
knowledge necessary for establishment of successful business. (Brooks, Wheatherston 1997)
The most popular form for the analysis of external environment factors is PEST analysis, which
overviews the impact of political, economic, social and technological environment. The business
environment is inconsistent. It can be both as possibility and threats for the development. In
order to underline the significance of some factors, extended forms of PEST analysis are being
established, the acronyms of which in English are PESTLE, PESTLIED, STEEPLE, SLEPT. The
designation and explanation of main factors is the following: P stands for political factors, E –
economic, S – socio-demographic or socio-cultural, and T stands for technological factors. Other
instruments of analysis especially underlines different factors, for example C – competitiveness
etc. Brooks, Wheatherston (1997) considers classical analysis of external environment must be
supplemented with three more elements – legislation, as well as factors of ecology and
competitiveness. The abovementioned authors have worked out the extended model of LE PEST
C analysis:

Legal factors – legislation, rules and regulations, standards etc.;

Ecological factors – attitude to environment and its pollution, global and local activities
etc.;

Political factors – government attitude and directions of policy, investments of public
sector etc.;

Economical factors – business cycles, currency exchange rates, availability of financial
resources etc.;
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
Socio-demographic factors – national culture, structure of society and different sociocultural changes, for example, perception of society in relation to issues of health
preservation can affect food producers;

Technological factors – development of new technologies for the improvement of
competitiveness etc.;

Competitiveness factors – development of a branch, threats of newcomers etc. (Brooks,
Wheatherston 1997)
Increase of interest on branch of product of local origin is connected with different political,
economic and socio-cultural factors of external environment. As the main factors can be
mentioned the income from agriculture (its decrease) and different ‘crises’ in circulation of
agriculture and food, for example, exacerbation of different diseases, which establish fears,
lessen loyalty of a customer to system of food safety and increase interest upon food production
process. Increase of interest can be also promoted by desire of customers and producers to react
on increasing mass production in food industry and globalized food economy, where the gap
between place of food production and place of consumption becomes wider. (Morris, Buller
2003, ER)
Nowadays customers can get food from all over the world. In markets, where supermarket chains
dominate as retail channel, the specific weight of import food is still increasing. There are
several factors, which help to promote these products in the market. The price of a product is a
significant factor since supermarket chains can operate with the price more easily than others.
The other factor is establishment of different national diaspora, which would like to use products
they know and are used to. The development of local products is based on government support
and customer interest about them. The customers pay more attention to traceability of products,
which are based on fears and desire to be convinced about safety of products. (Jones et al. 2004,
ER)
According to aspects of environment, local products have the possibility to provide smaller so
called „product mile”, which is a distance from the place of product production to customer. It
reduces consumed amount of energy and atmosphere pollution. From the other side, small food
factories can be located not only in farms. Factories can be small processing factories in local
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village, which just as big factories establish threats of environment pollution. (Jones et al. 2004,
ER)
Production of local food establishes such economic benefits as employment, support for local
entrepreneurship, and increase of local society income level. Estimated calculation in England
witnesses if every subject (physical person, tourist, enterprises) spent 1% from their incomes for
local products, it would give extra 52 million pounds to state economy each year. Secondly,
production of local products can be a beginning for further entrepreneurship and development of
business. (Jones et al. 2004, ER)
Development of foodstuff industry of local origin mainly is related with the possibility to
increase incomes of farms and development of rural area. Significance of the branch is regularly
underlined in documentation of rural development policy. Defenders of “local foodstuff”
together with researchers of the phenomenon of this branch have identified two mutually
connected directions of the branch:
1. Local foodstuff underlines the local origin as closed or limited system, where foodstuff is
produced, processed and sold in geographically restricted area. In some way it establishes
channel system for good delivery as an alternative for conventional products. This system
contains such product channels as farmers’ markets, farm shops, food delivery baskets
and other direct forms of trade.
2. Local foodstuff can be as an added value for export. It means a particular product is being
labelled with the origin of place and certified, but it can be purchased and consumed in
other geographical place. In such case the local origin is being associated with a special
assortment, traditional products and quality of products. (Morris, Buller 2003, ER)
From the other side the development of local products can not only establish new working places
in farms and small foodstuff processing enterprises, but also provide damages for foodstuff
turnover system in general – it can be lost working places in product delivery chain and newly
established working places in local enterprises of foodstuff processing can be inappropriate for
the skills of inhabitants as a result of which enterprise must search for the skilled labour force
elsewhere. Producers of local foodstuff must take into consideration they will never reach such
incomes from the product manufacturing as it can be done by large-scale producers of
conventional products. (Jones et al. 2004, ER)
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Forces directed towards development
One of the founders of modern psychology, American psychologist Kurt Lewin (1890-1947)
revised organizations not through static analysis of current situation, but as search of dynamic
balance through interrelation of driving and restraining factors. The force-field diagram can be
used both in organizational and branch level. (Valuebasedmanagement 2009, ER)
Figure 1.1. Force-field diagram of driving and restraining forces
Source: Valuebasedmanagement 2009, ER; author Kurt Lewin.
Every development and change issue is affected both by driving forces and restraining forces.
The impact of them can be classified after the strength – weak, medium or strong. If the driving
forces are stronger, the changes are happening. If the restraining forces, in their turn, are
stronger, there are no changes. Force-field diagram of driving and restraining forces is method
in order to:

define correlation of forces, which affect particular issue;

identify the most important players and target audiences;

identify opponents and alliances;

identify the issues how to affect every target group. (Valuebasedmanagement 2009, ER)
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Role of local foodstuff production
The local foodstuff offers an alternative for global foodstuff system and more other benefits, for
example, decreased food road from manufacturer to customer, market possibilities for local
manufacturers, multiplier effect of incomes – more money has been spent on local product, more
monetary resources stay in local economy. Local foodstuff also means the development of rural
economy and information flow, namely, products are information providers since they give an
information where and how they have been produced. Local products are considered as more
sustainable products than their competitors – global products. (Morris, Buller 2003, ER)
Research (Morris, Buller 2003, ER), which are performed in the Great Britain (in
Gloucestershire county) has identified the place and role of local foodstuff production branch in
rural development. The British research determined the one of the challenging issues is to define
„local product”. The results of research witnesses that:

The local foodstuff is more connected to socio-administrative territory, not to product
quality signs directed by the EU – PDO (products with a protected designation of origin)
and PGI (protected geographical indication).

Drawing a line between sectors is a great challenge since there is no closed system. Also
the local manufacturers are not satisfied with the product sale in a particular territory.
Some manufacturers work in both ways, producing both local and global products.
(Morris, Buller 2003, ER)
In comparatively occasional cases customers can completely satisfy their needs by using the
local products only. Though, local products have very important symbolic value and economic
potential; therefore this branch is in the focus of attention for political discussions. (Morris,
Buller 2003, ER)
Product supply chain
As it was mentioned already previously, supply chain in local foodstuff branch differs from
conventional product system. The main difference is in amount of involved parties and also in
infrastructure, which is completely or at least partially focused on specialized food. Involved
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parties can construct alternative cooperation nets.
The main elements in these nets are:
manufacturer, recycler of products, specialized distribution channels, for example, farm stores.
In developed countries this system is driven and established with financial support of state
programmes. (Starӕte 2008, ER)
In time, when new cooperation nets are just forming, there is a risk that alternative nets
conventional products will form a counteraction. Manufacturers can be "dragged” into segment
of standardized products where the main aspect is standardized quality of products. Involving in
such business system where supermarkets and great amounts are dominant is threat for the
development of branch. The success can be defined by the fact if local manufacturers are strong
enough to develop new segments of product quality. (Starӕte 2008, ER)
Amount of products is important factor in supply chain. In order to realize products in
supermarket chain, the defined amount of products and constant quality must be provided. Small
manufacturers of local products usually are not able to fulfil these requirements. The main
players in retail market do not take local market offerings seriously, though they are aware of
increasing interest of customers to local products. In particular cases it can be used as attracting
tools of customers to supermarket nets, establishing so-called „line of local products” and
designing „promoting actions of local products”. (Jones et al. 2004, ER)
The main challenge of small enterprise development is resisting the system of conventional
system and maintaining „alternatives”. The state support has an important role. Development
agencies and cooperation structures can have significant role in promotion of small enterprises
development. Great enterprises are in better position to some extent since they have a resource
base for the research and development. Though, great enterprises are subjected to standardized
requirements which diminish their possibility to diversify the alternatives of actions in foodstuff
production. (Starӕte 2008, ER)
Co-operation nets and cooperation
Efficiency of activities in every field can be increased by uniting forces. Analysing development
of cooperation, Kucinskis (2004) has divided several basic postulates of cooperation:

Cooperation is motion. For establishing it there is a necessity to prepare social thought,
perform many educational events.
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
The need or problem, which cannot be solved with standardized methods, is very
important in the base of cooperation development.

Co-operations are socially economic organizations with united aims, for example,
cheaper issue of credits, manufacturing of goods, and selling.

The main difference of co-operations from other forms of united economic activities is in
attitude to people and capital. The main aim of it is a benefit from collaboration, which is
received by each member of cooperation. (Kucinskis, 2004)
Lamprinopoulou et al. (2006, ER) has identified two groups of factors for development of
collective activities among small and great companies of agriculture. First group of factors is
‘context’. This group contains such factors as: market type - greater possibility to form a
cooperation is in such product markets, which has a small direct competitiveness and there is no
monopoly of some companies; social joint - cooperation will develop more successfully in
places, where there is a strong socio-cultural joint among members of cooperation; institutional
support – support of local or national government for the development of co-operations.
(Lamprinopoulou et al. 2006, ER)
The second group of factors, which affects development of cooperation among small companies
of agriculture, is ‘attitude’. Factors or conditions in this group are: orientation towards market –
enterprises, which seek a possibility to offer their clients a higher value, will be able to establish
and use cooperation more successfully; desire to cooperate - though, this factor is related to
cultural traits (some nations are more oriented towards collective activities, for example, Japan),
there is an opinion that cooperation can be learnt; availability of initiators - the development of
cooperation basically will depend on qualification of cooperation initiator, since it is important
the initiator could identify possibilities and threats, and promote working strategy, which
corresponds to market situation.
Lamprinopoulou et al. 2006, ER)
Small agricultural enterprises must use different co-operation forms. Basing on the theory, small
enterprises receive the following benefits from collective activities or cooperation:

Availability of resources. Collective activity gives availability to resources, as well as
increase possibility of resource control. Resources can be both tangible (capital, labour,
force) and intangible resources (market information, manufacturing and marketing
knowledge). Small agricultural enterprises using collective approach can employ
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marketing specialist or make a research, which they would not be able to afford each
separately.

Greater economic outcome and possibility to expand the action. For example, winemakers manufacture wine from their own raw materials, but those, who have an access to
wine filler equipment of co-operations, have the possibility to decrease costs for one
product unit. In co-operations there is a possibility of mutual cooperation in process of
raw material purchase and manufacturing.

Decreased costs and risks. Collective action decreases risks of individual enterprises and
also the possible costs due to loyalty and mutual exchange of information.
(Lamprinopoulou et al. 2006, ER)
Farmers’ markets are to be considered as certain trait of cooperation, since they are possible only
in the case of mutual cooperation. One person cannot establish market; there is a necessity of
certain offer in order to interest a customer. Factor of social environment is as important – the
more attractive market is to client, the greater possibility to attract a customer. On this score
farmers are mutually dependant from each other. Cooperation and co-operation gives advantages
for all involved parties. (Lawson et al. 2008, p.14, ER)
Role and value of local product manufacturers
The activity of local foodstuff manufacturers gives not only the economic advantages in form of
profit for the manufacturers themselves, but establishes supplementary advantages for the society
in general:

Firstly, their activity is a support for development of common agriculture, small
entrepreneurship and economic activity of the region;

Secondly, manufacturing of local products helps to establish loyalty between
manufacturer and customer.

Thirdly, local foodstuffs are connected to identity of region; their manufacturing helps to
preserve sand bring forward traditional knowledge.
Exactly this can be done by
manufacturers with their basic business. (Morris, Buller 2003, ER)
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Values of product manufacturers of various levels can differ. Research, which covers the
comparison of value of farms and conventional products, determines the basic value for both
manufacturing groups is the same – provide the highest quality products for their customers.
Both abovementioned manufacturing groups have several significant factors as: values of
customer, care for employees, honesty, offer of tasty food, ethics and social responsibility, as
well as competitiveness. (Lea, Worsley 2006, ER)
Less known factors for both groups are - emphasis on manufacturing for already proven and
well-known products; decrease of costs is more important than high quality; profit increase at
environmental costs expenses; ignorance of ethics and social responsibility for the preservation
of competitiveness. Health and environmental factors are being evaluated higher among farmers,
and they are as following: development of sustainable development; care for society, offering
healthy products; social responsibility. Farmers as product manufacturers are more focused on
preservation of values in general, for example, preservation of traditional processing methods.
Foodstuff manufacturers, in their turn, are more focused on manufacturing of conventional
products and innovations. (Lea, Worsley 2006, ER)
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Development of direct trade
Development of trade channels
Last century has experienced rapid industrialization of food market, as a result of which several
big corporations play a great role and their success are more strengthened by consolidation of
supermarkets' positions. Without revising this tendency, both farmers’ markets try to regain their
place and role as a significant channel of products or marketing.
Home-maid foodstuffs
basically come to customer through channel of direct marketing or direct trade. Regular market,
especially organized farmers’ market, trade are farm, place of residence of customer (product
delivery at home) can be physical environment for the direct trade.
„Marketing channels are the base for exchange relationship, which establishes client value for
obtaining and consumption of products and services.” (Pelton et al. 2007, p.11) Marketing
channels have several levels both in customer and business segment:

Zero level channel or channel of direct marketing is when manufacturer sells one’s
product directly to the final customer. Direct trade, orders via post from catalogue,
telemarketing or a store owned by a manufacturer – each of these types characterizes zero
level channels.

Channel of first level contains one sales intermediary, for example, trader who buys
products directly from manufacturer.

Channel of second level can be characterized by two trade intemediaries, such as
wholesale dealer and retailer.

Channel of third level contains three intermediaries - wholesale dealer, agent and retailer.
(Pelton et al. 2007)
Supermarket policy is based on a postulate „Anytime, anywhere, everything alike”. Market can
offer something different. Policy of product supply in supermarkets is centralized - big amounts
of products are ordered from competitive manufacturers and farmers. Usually supermarkets are
not interested in peculiarities of products and preservation of local traditions. It makes small
local manufacturers to look for other product distribution methods and trade channels in order to
offer customers production different from supermarket offers. (Lawson et al. 2008, p.14, ER)
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Farmers’ markets and supermarkets have ambivalent relationship.
Small enterprises who
specialize on manufacturing products with added value initially distribute their products through
farmers’ markets. During the development there is a necessity to increase product distribution
channels and therefore attract supermarkets. From the other side, farmers and other
manufacturers, who have been under supermarkets for a long time, also appreciate a possibility
to sell product in direct trade. (Gurthrie et at. 2006, ER)
There is an opinion the main force of farmers’ market development is offer. When trade channels
are very concentrated and small manufacturers have to struggle in order to achieve product
distribution channels with corresponding economic output, the necessity of alternative product
distribution channel soon appears. Farmers' markets have low fixed costs if there is cooperation
with local municipality and if manufacturers cooperate among themselves, the barriers in market
entry also are low. As manufacturers need product channel, the customers need freedom of
choice. Market offers different shopping experience. This product channel gives great chances
for manufacturers of craft products, who can better fulfil customer desires according to product
quality. (Gurthrie et at. 2006, ER)
Development of direct trade types
Traders come together in market to offer wide assortment of products and services, as well as
define a social environment to customer. Last years’ phenomena in several countries, including
USA, Great Britain, Australia, and New Zealand were reappearance of farmers’ markets.
Though there are no many researches upon development of this field, it is clear that farmers'
market is a successful form of product distribution for many small product manufacturers.
„Success is based on detection of different approaches in establishing values, in comparison with
other product distribution channels”. (Lawson et al. 2008, p.12, ER)
One of main driving forces for revival of market position is increasing demand for foodstuff of
better quality, as well as increase in amount of quick-witted customers.
These customers
evaluate the way, which products are being grown, manufactured, distributed, and sold. First
industrial revolution was based on acquisition of resources and money, but second industrial
revolution is based on saving the resources and values. In developed countries emphasis changes
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from low price and quantity to quality and uniqueness, which also contains products produced by
qualified craftsmen. Emphasis changes from ‘synthetic’ to authentic foodstuff are being called
as ‘real foodstuff revolution’. It demonstrates the desire of society to move from striking
consumption to intentional consumption. (Gurthrie et at. 2006, ER)
One of market types is farmers' market, which has different definitions. In most cases farmers’
market is defined as periodic market with a fixed location, where farmer products sell farmers
themselves; in other words, at least some (if not all) traders must be also the manufacturers, who
sell their products. Farmers’ market is a traditional way of selling foodstuff. In such countries
as France, Spain, and Italy, which highly appreciate good-quality food, farmers’ markets have
existed or centuries without disruption. Other countries, such as New Zealand, Australia, Great
Britain, Canada, and USA farmers’ markets dissolved mainly due to appearance of supermarkets;
though farmers' markets have lately experienced revival also in these countries. They have been
called as farmers’ markets of new generation. (Gurthrie et at. 2006, ER)
Farmers’ markets are not only the place, where people meet and direct trade of products are
performed; it is also a place, which unites people with a past and establishes environment for
enjoyable social interrelation. Farmers’ markets are multi-shaped, whereas supermarkets are
being perceived as homogenous, sterile and in some way gloomy places. Analysing preferences
of farmers’ markets it is important to emphasize increasing interest of society on slower pace of
life and slow shopping. (Gurthrie et at. 2006, ER)
“Suburbs and small rural towns where there are no supermarkets receive products from farmers’
markets. It is a way how urban environment and rural area is united, giving a customer a
possibility to buy local foodstuff. Market also is a way how to support formation of sustainable
and ethical agricultural systems. Manufacturers of local foodstuff can offer fresh, highest-quality
products the demand of which is increasing all the time. Farmers’ market provides a greater
profit part for small-scale manufacturers than other trade alternatives; such market allows selling
small amounts and is as supporting point for implementation of new products into the market.
Customers with buying local products support local manufacturers, as well as help to embody
rural economy. Nature protection specialists will definitely support distribution of biological
foodstuff in such farmers’ market. Spokesmen of anti-globalization ideas will appreciate craft
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business, including local foodstuffs. Farmers’ market, in its turn, can become as attractive
tourism object for tourists.” (Gurthrie et at., 2006, p.562, ER)
Why do customers give a preference to a market? Previous researches have identified several
considerations and reason of customer according to market as a place for purchase of products:

Harmony with a traditional lifestyle;

Preference to natural/biological products;

Belief in advantages from nature preservation;

Arrangement, availability of foodstuffs, and connection with a manufacturer;

Product quality;

Special assortment of products. (Lawson et al. 2008, ER)
There is an opinion the market as a place is more attractive for elder visitors and it is connected
to the belonging of this group to particular settlement or community. It must be taken into
consideration this group knows market as product distribution channel very well since they have
experienced times without supermarkets. “Elderly people want to be sure about their purchase.
Value is made by form of purchase since it gives a possibility to buyer, who is concerned about
different diseases connected to food like salmonella and rabies, to check product once again.”
(Lawson et al. 2008, p.13, ER)
Farmers’ markets more frequently has regarded as the main player in preservation of less
industrialized agriculture. As any break point also these changes give a possibility for a small
entrepreneurship. Is it emphasized that farmers’ markets give greater economic outcome for
small-scale farms and manufacturers. It ensures their survival in conditions of increasing
competition. (Gurthrie et at. 2006, ER)
Difference between income provided by direct trade or farm and income, which farmer receives
from selling of goods in supermarket is substantial. Fifty years ago farmer received
approximately half of the money buyer spent for food. Nowadays situation has changed.
Consolidation of supermarket positions has considerably decreased part of a farmer from price of
sold product. It can be even lesser that tenth part from product price paid by consumer. (Gurthrie
et at. 2006, ER)
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Possibility to buy farmers’ products is a significant motivator for many people to visit particular
place. Therefore it is a significant factor for development of local economy. There is an
interrelation between form of direct trade and development of rural economy. Encouraging local
enterprises, including providers of catering industry and other services to use local products help
to reach several significant aims:

Firstly, money comes into local circulation;

Secondly, the dependency from seasonal buyers has been decreased;

Thirdly, increases visibility of local products, as a result of which both manufacturers and
sellers are winners. (Paddison, Calderwood 2007, ER)
Significant source of development for increase of local product amount is direct trade via internet
and post. Combination of direct trade with store trade ensures development of market and most
likely they are mutually supplementary than destroying flow channels of goods. (Paddison,
Calderwood 2007, ER)
Farm-gate sale is one more form of direct trade, where the costs for product trade are lower.
Manufacturer keeps the greatest part of income when selling the products directly to customer
since the costs for packaging and transport are minimized. Greater interaction between buyer
and seller allows improving the product quality in future because the feedback is received
immediately.
Diversifications of activities, which are based on this type of trade gives
supplementary income, do not destroy the current types of business, as well as decrease
dependence from regular buyers. (Paddison, Calderwood 2007, ER)
There are over 3500 farm stores in the Great Britain and at least one third of households are
visiting them regularly. The further development of this industry is being prospected. It is
promoted by common marketing activities, which increase identification of regional products.
Development of direct trade forms is promoted also by increasing interest of customers about
origin of products and possibility to directly contact the manufacturer. Also the manufacturers’
investment has been significant in branch development, especially in connection with promotion
of product with higher quality in market. (Paddison, Calderwood 2007, ER)
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Promotion of processing products
Segments of foodstuffs
Products on their merits can be divided into two groups: product can be as satisfactory mean for
processes or specific needs. For example, apples and wine – apple can be an early stage of wine.
Wine continues to ripen also after its purchase. When there is an optimal moment of wine
consumption customers can have different desires. Therefore wine is a product of process. The
question arises whether product quality forms in this moment and how product satisfies
particular needs of customers in concrete moment. (Starӕte 2008, ER)
Choice of customers or preferences of particular goods are not the only factors characterizing
demand since both buyers and sellers participate in process of product quality establishment.
Neoclassical economic theory characterizes a customer as sovereign human-being, who makes a
purchase decision without assistance, taking into consideration one's own needs. Starӕte (2008)
argues it is not a complete explanation because a buyer is only one of ‘actors’ who interprets the
quality of a particular product. In general, product quality is affected by relationship among
consumers and manufacturers.
There is no meaning to manufacture a product, which is
promoted in market as local product, if consumer does not think the local origin gives a special
product quality. Product preferences connected to origin of a particular place usually does not
develop in vacuum; they have close connection also to other external factors, not only with the
customer oneself. (Starӕte 2008, ER)
Norwegian researcher Starӕte (2008) has devoted his scientific work to the research of
agricultural goods and rural development. He has established model of foodstuff quality. For
the base of his model the author has chosen two dimensions of product quality: (1) technological
dimension, i.e., manufacturing of conventional vs. organic products; (2) place dimension, i.e.,
level of belonging to a particular place.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Figure 1.2. Dimensions of food quality
Source: Starӕte 2008, ER, p.67.
According to Starӕte (2008) dimensions of food quality can be described by the following
segments:

Standardized food is the most available food sector. It is connected to dominating market
of agricultural goods. This sector usually contains standardized processing goods with
private, placeless brands. Sector is characterized by usage of standardized technologies in
food production in order to lower production costs. Usually products are promoted in
market without relation to a concrete location. It allows manufacturer to expand the
market of one's production unlimiting product with its belonging to concrete place of
location.

Segments of local conventional and organic foodstuffs usually contains specialized
foodstuff, such as craft or traditional food. Whether they are products of biological
agriculture or not, usually they are products of small entrepreneurs. In this segment
traditional methods in food production and local origin have been promoted as a
preference of these products.

Segment of organic agriculture goods can be mentioned separately since it has a peculiar
product quality. For example, this segment contains milk received during the process of
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
organic agriculture, and it is marked simply as ‘organic product’ without belonging to
concrete place. (Starӕte 2008, ER)
Dimension of product quality becomes more and more topical since the competition in food
sector is increasing. Starӕte (2008) though admits theoretical academically formed model could
work successfully in level of enterprises or micro-level combining different strategies of product
quality.
Small enterprises must establish their development slowly since they have no resources for
serious investments in development. Development frequently is made from fault-test base and
improvement of knowledge. Enterprises have to experiment with their products and establish
completely different relations in value chain, including relations among suppliers, service
providers, and sector of state governance. These enterprises have to search for alternatives
beyond conventional innovation system. (Starӕte 2008, ER)
Starӕte (2008, ER) thinks the quality model can apply not only for product, but also in level of
category and industry. National programs of food labelling are attempted to promote local
qualities or traits of category in the market. In such cases local origin means all country, and
imported products are being put contrary to them. Promotion of national values is binding only
in cases, when there is an international competition – promotion of such quality has a small
meaning without it. (Starӕte 2008, ER)
Product promotion in market and perception of ‘home-made’ quality
Manufacturing of local foodstuff is based on emotional connection since these products most
likely are grown or prepared by customers themselves in the near past. And this ability to unite
emotionally manufacturers and customers is the main value of this industry. The most important
benefit from this branch in general, in its turn, is health factor – provision of fresh foodstuff
circulation, supply of qualitative products, promotion of healthy lifestyle, and establishment of
eating habits. (Jones et al. 2004, ER)
Starӕte (2008) associates product quality with relationship among manufacturers and customer,
stating the segment of product quality or dimensions mutually interacts. Pelton et al (2007), in
his turn, emphasizes close relationship between client and seller is based on long-term
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cooperation, win-win exchange and mutual confidence. Exactly relationship dimension affects
marketing of goods and services in market of agricultural products. (Pelton et al 2007, Starӕte
2008)
“Relationship marketing is establishment of long-term mutually satisfactory relationship among
different parties – customers, suppliers, and distributors with an aim to maintain preferences
from long-term relationship." (Kotler 1997, p.12)
Manufacturers of industrial or conventional foodstuff use such terms as “as home-made”,
“traditional recipes” in order to increase the value of product quality in eyes of customer. One of
researches dealing with perception of ‘home-made’ quality has been performed in Scotland. The
research has come to conclusion that ice-cream as other foodstuffs has changed over time and
has moved away from home-made product. Not only desire of manufacturers to standardize the
product, but also customer demands according to two factors – care for health and desire for
luxury goods can be mentioned as reasons for the issue mentioned above. Health considerations
make customers to choose product with lower content of fat. The most typical preconception is
that home-made ice-cream contains higher content of fat. (Bower, Baxter 2000, ER)
Quality cannot be compromise for luxury goods, therefore manufacturers try to offer products
with more natural content. In ice-cream manufacturing it means choice of natural raw materials,
which give higher content of fat. Usually these products are promoted in market as ‘traditional’.
Quality perception in ice-cream category in generally does not differ from any other foodstuff
category. In process of purchase product can be evaluated only visually by external traits –
shape, price, package, and brand of a product.
Customer can also remember one’s previous
experience and therefore evaluate taste of a particular product. Customer opinion is affected by
different ‘quality attributes’ such as neutrality and exclusiveness of a product. It is also important
how customer visualizes the product manufacturing methods. (Bower, Baxter 2000, ER)
The customer knowledge about the real quality of a product usually is low. Research of product
quality perception in ice-cream market has identified factors, how customer percept home-made
and manufacturing ice-cream and after what parameters of quality they divide and distinguish
both categories. Bower, Baxter (2000) discovered the products achieve a higher quality value in
that case when the origin of the products is known, i.e., home-made ice-cream was evaluated
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
higher in those cases, when respondent was informed upon its origin.
And vice versa –
industrially made ice-cream received comparatively lower quality value though in "blind"
(without knowing the origin of a product) test of taste did not prove lower quality of a product.
Overall, the fact it was home-made was perceived as a supplementary benefit to other qualities of
product, especially to the taste of product. (Bower, Baxter 2000, ER)
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HORTICULTURE INDUSTRY IN LATVIA
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Characteristics of the sector
In 2007 398 farms specializing in vegetable production were registered in Latvia, and they
independently employed 1.5 thousands of workers. 3.9 thousands ha of agricultural land were
utilized in vegetable growing and it is only 0.5% of the total area of used land.
In accordance with data of Central Statistical Bureau, more than 11 thousands farms are involved
in combined crop husbandry, including growing of different cultures, also vegetable growing.
Number of self-employed exceeds 20 thousands, and the total area of land used in agriculture is
92 thousands ha, comprising almost 12 % of the total land area used in agriculture. Field-crop
cultivation has the greatest specific weight in land use – 86 %. Data are shown in Table 1.
Table 1
Husbandries by specialization
Number of
husbandries
Field-crop cultivation
Vegetable growing
Growing perennial cultures
Mixed plants cultivation
30 757.0
2007
Used land of in
Total
agricultural land,
standard
thousands ha
gross coverage,
thousands LVL
669.1
88 102.8
Number of
self-employed in
agriculture, thous.
55.6
398
3.9
2 447.5
1.5
3 255.0
10.8
2 092.1
5.3
11 105.0
92.1
9 933.1
20.6
Notes:
Source: Central Statistical Bureau of the Republic of Latvia
Data provided by Central Statistical Bureau show a great number of husbandries having small
areas for vegetable growing – averagely each husbandry has 0.3 ha of land for vegetable
growing, and the total number of husbandries exceeds 25 thousands. Comparatively bigger
amount of husbandries is located in Latgale region (more than 10 thousands), basically growing
vegetables for own consumption (only 77 husbandries grow vegetables for market).
However, 1300 husbandries in Zemgale region have registered their activities as vegetable
growing for market. Number of husbandries in this region comprises almost 6 000, and this is the
biggest number in comparison with other regions. Total area for vegetables growing exceeds
2 500 ha, averagely 0.4 ha in each husbandry. The second place is taken by Kurzeme region with
more than 4 000 husbandries. Total area of land for vegetable growing is 1 023 ha, averagely
0.2 ha in each husbandry. Data are shown in Table 2.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Table 2
Open-air vegetable areas in regions
2007
Latvia
Number of
husbandries with
vegetable areas, ha
25 426.0
Vegetable areas,
ha
Vegetable areas
for market, ha
Average per
husbandry, ha
7 154.0
2 715.0
0.3
Riga region
3 564.0
1 510.0
743
0.4
Vidzeme region
1 684.0
619
275
0.4
Kurzeme region
4 127.0
1 023.0
321
0.2
Zemgale region
5 972.0
2 591.0
1 300.0
0.4
Latgale region
10 079.0
1 411.0
77
0.1
Notes:
Source: Central Statistical Bureau of the Republic of Latvia
Latvia shows a trend of reduction of foil greenhouses areas. In 2008 (68.2 ha) it was twice less
than in 2007 (32.1 ha). Operated area of glass greenhouses, in its turn, slightly increases – from
40.2 ha in 2007 to 43.4 ha in 2008. In 2008 at greenhouses areas more than 12 thousands tons of
various vegetables have been grown; it is almost 3 thousands tons less than in 2007. Data are
shown in Table 3.
Table 3
GREENHOUSE AREAS AND PRODUCTION
2006
2007
2008
Area used in glass greenhouses, ha
41.6
40.2
43.4
Area used in foil greenhouses, ha
128.5
68.6
32.1
19 131
14 882
12 071
Produced vegetables in all covered areas, tons
Notes:
Source: Central Statistical Bureau of the Republic of Latvia
In 2007 there were 2 203 thousands m² of greenhouses areas registered in Latvia, and almost
70 % were taken by foil greenhouses. Areas of greenhouses used for strawberry growing
comprised 10 thousands m². Growing of these berries mostly utilizes foil greenhouses, and only
0.2 thousands m² take glass greenhouses. Glass greenhouses have bigger specific weight in
flowers growing (almost 60 % of total greenhouse area are taken by glass greenhouses). Data are
shown in Table 4.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Table 4
Greenhouses areas (thousands m2)
2007
Total
2 203.5
677.7
foil
greenhouses
1 525.7
For vegetables growing
1 884.1
554.1
1 329.9
10.1
0.2
9.9
185
107.7
77.3
For growing decorative plants
60.6
0.5
60.1
For growing nursery plants
63.6
15.1
48.5
Total area
For strawberry growing
For flowers growing
glass greenhouses
Notes: Areas used during last 12 months.
Source: Central Statistical Bureau of the Republic of Latvia
Area of Latvian planting of trees and berry-fields has reduced recently, but the productivity has
increased (in hundreds kilograms per hectare). In accordance with data provided by Central
Statistical Bureau of the Republic of Latvia, in 2008 total area of fruit trees planting and berryfields was 7.4 thousands ha, ensuring yield of 32.4 thousand tons. Data are shown in Table 5.
Table 5
PLANTATIONS OF FRUIT TREES AND BERRY-FIELDS
Total area of fruit trees
and berry fields,
thousands ha
Total yield of fruits and
berry-fields, thousands t
Productivity of fruits and
berries, hundred kg per hectare
2006
13.7
46.3
33.7
2007
10.3
37.1
35.9
2008
7.4
32.4
44
Notes:
Source: Central Statistical Bureau of the Republic of Latvia
In accordance with data provided by Central Statistical Bureau of the Republic of Latvia,
husbandries of fruit trees nursery plants in 2007 took 80 ha, and berry-field nursery plants
husbandries – 14 ha. Data are shown in Table 6.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Table 6
Areas of open-air nursery plants husbandries and flowers (ha)
2007
Fruit trees nursery plants husbandries
80
Berry-field nursery plants husbandries
14
Source: Central Statistical Bureau of the Republic of Latvia
Trade balance
Not all fruits and vegetables can be grown in Latvia and Latvian inhabitants are unable to
consume all domestic production. In 1st quarter of 2009 a total value of fruits, vegetables and
canned food group export comprised 6 millions LVL, and import – 24 millions. The difference is
explained by seasonality and market demand for exotic fruits and vegetables during
winter/spring months. Group of drinks and juices shows less difference in trade balance. During
first month of the year export comprised 20 MLVL and import 19 MLVL. Data are shown in
Chart 1.
Chart 1
Distribution of total value of trade balance
in 2009, MLVL
Fruits, vegetables,
canned food
30
25
20
15
10
5
0
Drinks and juices
24
20
19
6
Export
Import
Source: Database of market and prices information improvement
The biggest export of fruits, vegetables and preserves was to Baltic States (3 MLVL). CIS
countries were the second group of states accepting export of fruits, vegetables and preserves
(1 MLVL). In comparison, export of drinks and juices goes to several groups of states. The
biggest export of drinks and juices was to Baltic States and CIS countries (6 MLVL). A big
32
„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
amount of export also went to OECD states (total value of export 5 MLVL). Data are shown in
Chart 2.
Chart 2
Distribution of total amount of export in 2009, MLVL
7
Fruits, vegetables,
canned food
6
6
Drinks and juices
6
5
5
4
3
3
2
2
1
1
1
1
0
Baltic
states
CIS
EU-15
OECD
CEEC
-9
Other
states
Source: Database of market and prices information improvement
The greatest import of fruits, vegetables and preserves during first months of the year was from
EU-15 states (total value of import – 11 MLVL), registered import from Baltic States was
4 MLVL. The greatest import of drinks and juices was from EU-15 states (7 MLVL). Data are
shown in Chart 3.
Chart 3
Distribution of total value of import in 2009, MLVL
12
Fruits, vegetables,
canned food
11
Drinks and juices
10
8
7
6
4
5
4
5
3
2
2
1
4
2
1
0
EU-15
Baltic
CEEC-9
CIS
OECD
states
Other
states
Source: Database of market and prices information improvement
The greatest recent import of fruits came basically from Holland and Lithuania. On its turn, the
greatest import of vegetables was from Holland and Spain. Data are shown in Chart 4.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Chart 4
Products with small export and stable or growing import amount in 1st quarter
Fruit import
200 7-2009, MLVL
Vegetable import 2007 -2009 , MLVL
8
18
9
0
2007
2008
2009
Other states
Germany
Poland
Turkey
Spain
Egypt
Lithuania
Holland
Other states
Estonia
Italy
Turkey
Poland
Lithuania
Spain
Holland
4
0
2007
2008
2009
Of the total amount of juices export mostly exported was tomato juice (4 426 409 kg or 29 % of
the total amount of juices export in 2007) and orange juice (4 109 500 kg, or 27 % of the total
amount of juices export in 2007). Apple juice was the third most exported juice – 2 648 944 kg
or 17 % of the total amount of juices export in 2007.
Chart 5
Grape juice
2%
Other non-mixed fruits juice
2%
Pineapple juice
2%
Tomato juice
29%
Grapefruit juice
9%
Multifruit juice
12%
Apple juice
17%
Orange juice
27%
Three most imported juices of the total amount of imported juices are orange (4 144 458 kg or
22 % of the total amount of juices imported in 2007), apple (4 288 409 kg or 23% of the total
amount of juices imported in 2007) and mixed fruit juice (5 295 488 kg or 28% of the total
amount of juices imported in 2007).
34
„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Chart 6
Other non-mixed fruits juice
8%
Tomato juice
7%
Grape juice
4%
Pineapple juice
5%
Orange juice
22%
Grapefruit juice
3%
Multifruit juice
28%
Apple juice
23%
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Consumption of fruits and berries juices
Top 10 of drinks consumed worldwide includes tea on the first place, presently taking almost one
fourth of all drinks consumed worldwide, still its specific weight is tended to decrease;
carbonated drinks are on the second place with 14 % of the total drinks consumption; third place
is taken by milk; fourth – by water; fifth – by coffee; and sixth – by beer. Juices, nectars and
syrups take the seventh, eighth and ninth place respectively. And the wine is the tenth most
consumed drink in the world.
Consumption of fruits and juices nowhere in the world presently exceeds 10 liters per capita per
annum, still this amount tends to increase. Since 1998 consumption of juices and nectars shows
annual growth by 2.8%, and specialists envisage that as a result of growing demand for healthy
products and instantly consumable refreshing drinks, grow rate of juice consumption will grow
accordingly.
Of 35 LVL spent by an average Latvian resident per annum for beverages, only 11 % (or
3.85 LVL) are spent for fruit and berry juices. However, of 35 LVL spent by each resident for
alcoholic drinks, 18 % (or 6.3 LVL) are spent for fruit and berry wines, including grape wine.
Generally an average Latvian resident in 2007 consumed almost 51 liters of beverages, of which
24 liters of mineral water, 15 liters of carbonated drinks, 11 liters of fruit juice and 1.3 liters of
vegetable juice. In accordance with data provided by Central Statistics Bureau, the biggest
consumption of fruit juice is in cities (averagely 12 L per annum). Data are shown in Table 7.
Table 7
AVERAGE JUICE CONSUMPTION PER ONE MEMBER OF A HOUSEHOLD PER ANNUM
2006
TOTAL
Fruit juices (L)
Vegetable juices (L)
In cities
2007
In rural
areas
TOTAL
In cities
In rural
areas
10.26
11.56
7.5
11.1
12.57
7.96
1.03
1.12
0.82
1.31
1.5
0.92
Notes:
Excluding consumption in restaurants, cafes etc. catering companies.
Source: Central Statistical Bureau of the Republic of Latvia
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Offer of fruits and berries juice
Generally the Latvian market of fruit and berry juices is rather stacked. The biggest market
players are SIA Cido Grupa and A/S Gutta, specializing in production of refreshing drinks and
offering very wide variety of fruit and berry juices in Tetra-packs. Both companies are members
of the juice market since 1994. Recently production of fruit and berry juices has been launched
by fruit and vegetables processing companies – SIA Pure Food and SIA Spilva, and also several
smaller companies, offering certain types of juices. The most active juice producers at the
Latvian market advertise their products in different ways. SIA Cido Grupa and A/S Gutta market
their products not as “natural juices”, but as “100% juices” and specify they are produced from
concentrates. SIA Pure Food markets its juices as produced from “natural concentrates and
purees” and “free from preservatives”. On its turn, “Pai” juices, recently introduced by SIA
Spilva, are marketed as “natural juices free from preservatives”. Juices from smaller producers –
SIA Lienama, SIA Pārsla 2 , as well SIA Pūres dārzi and apple juice of SIA Kronis are also
marketed as “natural juices”.
SIA Cido Grupa
Ostas street 4, Riga, LV-1034, Latvia, +371 7023401, cido@cido.lv.
Founded in 1994 by privatizing former state company – beverages producing plant Milgravis.
Initially produced only mineral water Mangali. In 1996 started production of juices. In 2004
Cido Grupa becomes a part of one of the biggest Scandinavian beer producers Danish Brewery
Group AS. Markets its product as “100% juice”.
SIA Cido grupa fruits and berry juice assortment
Name
Apple juice Cido
14 sweet apple juice Cido
Apple nectar Cido
Apple nectar Amigo
Orange juice Cido
18 sweet oranges juice
Cido
Package
200 ml, 1 liter, Tetrapack
1 liter, Tetra-pack
500 ml, 1 liter, 1.5
liter, Tetra-pack
1 liter, Tetra-pack
200 ml, 500 ml, 1
liter, Tetra-pack
1 liter, Tetra-pack
Description
100% juice. Free from preservatives.
100% juice with apple pulp, made of sweet apple
sorts. Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
100% juice with orange pulp. Free from
preservatives.
100% juice with orange pulp, made of sweet
orange sorts. Free from preservatives.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Orange nectar Cido
1 pack, 1.5 liter,
Tetra-pack
Orange nectar Amigo
15 multifruit juice Cido
1 liter, Tetra-pack
200 ml, 1 liter, Tetrapack
1 liter, Tetra-pack
Multifruit nectar XL
1.5 liter, Tetra-pack
Multifruit nectar with
vitamins Cido
Pink grapefruit juice Cido
1 liter, Tetra-pack
Peach nectar Cido
Pear nectar Cido
200 ml, 1 liter, Tetrapack
1 liter, Tetra-pack
Orange-apricot nectar
1 liter, Tetra-pack
Mango nectar Cido
1 liter, Tetra-pack
Grape nectar Cido
200 ml, 1 liter, Tetrapack
1 liter, Tetra-pack
Pineapple nectar Cido
Blackcurrant-apple nectar
Cido
Plum nectar Cido
1 liter, Tetra-pack
1 liter, Tetra-pack
Lemon nectar Cido
1 liter, Tetra-pack
Tomato juice Cido
15 tomatoes juice Cido
1 liter, 1.5 liter,
Tetra-pack
1 liter, Tetra-pack
Tomato juice Amigo
1 liter, Tetra-pack
Vegetables juice Cido
1 liter, Tetra-pack
50% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
90% juice content, no sugar added. Free from
preservatives.
100% juice from 15 fruits, contains fruit pulp.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid,
11 vitamins. Free from preservatives.
100% juice with grapefruit pulp. Free from
preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
40% juice content, contains sugar, lemon acid.
Free from preservatives.
50% juice content, contains sugar, lemon acid.
Free from preservatives.
25% juice content, contains sugar, lemon acid.
Free from preservatives.
35% juice content, contains sugar, lemon acid.
Free from preservatives.
25% juice content, contains sugar, lemon acid.
Free from preservatives.
100% juice, contains salt with iodine. Free from
preservatives.
100% juice, contains marine salt for food
consumption. Free from preservatives.
100% juice, contains salt. Free from
preservatives.
100% juice, contains salt, natural extracts. Free
from preservatives.
A/S Gutta
Maskavas street 240, Riga, LV-1063, +371 67033101, gutta@gutta.lv.
Founded in 1994. Presently is owned by a Scandinavian investment company NP Confectionary
AB. Along with juices and nectars produces mineral water Ramava and Everest, lemonades and
kvass. Markets its product as “100% juice produced from concentrate”.
A/S Gutta fruits and berry juice assortment
Name
Orange juice
Package
1 liter, Tetra-pack
Description
100% juice. Produced from juice concentrate.
Free from preservatives. Store in cool place after
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Apple juice
1 liter, Tetra-pack
Apple-white grape juice
1 liter, Tetra-pack
Grapefruit juice
1 liter, Tetra-pack
Tomato juice
1 liter, Tetra-pack
Multifruit nectar
1 liter, Tetra-pack
Red grapefruit nectar
1 liter, Tetra-pack
Pineapple nectar
1 liter, Tetra-pack
Pineapple-mango-lemon
nectar
1 liter, Tetra-pack
Blackcurrant nectar
1 liter, Tetra-pack
Peach nectar
1 liter, Tetra-pack
Plum nectar
1 liter, Tetra-pack
Orange-apricot nectar
1 liter, Tetra-pack
Lemon nectar
1 liter, Tetra-pack
opening.
100% juice. Produced from juice concentrate.
Free from preservatives. Store in cool place after
opening.
100% juice. Produced from juice concentrate.
Free from preservatives. Store in cool place after
opening.
100% juice. Produced from juice concentrate.
Free from preservatives. Store in cool place after
opening.
100% juice. Produced from juice concentrate.
Free from preservatives. Store in cool place after
opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
Produced from juice concentrate. Natural
product. Free from preservatives. Store in cool
place after opening.
SIA Spilva
Zvaigžņu street 1, Babite, Riga region, Latvia, LV-2101, +371 67063000, spilva@spilva.lv.
A fruits and vegetables processing company Spilva started its activities in 1992 and presently is
one of the leading food additives producers in the Baltic. This year it has also started production
of fruits and berries juices. Markets its products as “natural fruits and berries juices”.
SIA Spilva fruits and berry juice assortment
Name
Pai Orange-mango natural
juice
Package
0,3 L, plastic bottle
Description
Natural juice, free from sugar and preservatives.
Storage in non-opened package – 3 months. After
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Pai Natural vegetables
juice
0,3 L, plastic bottle
Pai Natural orange-carrot
juice
0,3 L, plastic bottle
Pai natural raspberryblackcurrant juice
0,3 L, plastic bottle
opening store in cool place and consume in
48 hours.
Natural juice, free from sugar and preservatives.
Storage in non-opened package – 3 months. After
opening store in cool place and consume in
48 hours.
Natural juice, free from sugar and preservatives.
Storage in non-opened package – 3 months. After
opening store in cool place and consume in
48 hours.
Natural juice, free from sugar and preservatives.
Storage in non-opened package – 3 months. After
opening store in cool place and consume in
48 hours.
SIA Pure Food
Daigones street 22, Pure, Tukums region, LV-3124, +371 3101200, purefood@purefood.lv.
Founded in 1994. Processes and sells berries and fruits. Along with juices also produces food
additives, jams and canned cucumbers.
SIA Pure Food fruits and berry juice assortment
Name
Apple juice
Package
3 L, glass jar
Tomato juice
3 L, glass jar; 300 ml
glass bottle
Apple-cherry nectar
3 L and 1,74 L, glass
jar; 300 ml glass bottle
Apple-strawberry
nectar
3 L and 1,74 L, glass
jar
Apricot nectar
3 L and 1,74 L, glass
jar; 300 ml glass bottle
Peach nectar
3 L un 1,74 L, glass jar
Plum nectar
3 L un 1,74 L, glass jar
Apple nectar
300 ml, glass bottle
Orange juice
300 ml, glass bottle
Blackcurrant juice
300 ml, glass bottle
Description
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
Produced from natural juice concentrates and
purees. Pasteurized, free from preservatives. After
opening consume in 48 hours.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Apricot nectar with
inuline
1 L, Tetra-pack
Orange juice with
inuline
1 L, Tetra-pack
Apple juice with
inuline
1 L, Tetra-pack
Apple-cherry nectar
with inuline
1 L, Tetra-pack
Pasteurized, free from preservatives, contains
natural sweetener – inuline. Inuline has a positive
affect on health – improves activity of intestine,
facilitates calcium ingestion, reduces cholesterol
level and improves immune system.
Pasteurized, free from preservatives, contains
natural sweetener – inuline. Inuline has a positive
affect on health – improves activity of intestine,
facilitates calcium ingestion, reduces cholesterol
level and improves immune system.
Pasteurized, free from preservatives, contains
natural sweetener – inuline. Inuline has a positive
affect on health – improves activity of intestine,
facilitates calcium ingestion, reduces cholesterol
level and improves immune system.
Pasteurized, free from preservatives, contains
natural sweetener – inuline. Inuline has a positive
affect on health – improves activity of intestine,
facilitates calcium ingestion, reduces cholesterol
level and improves immune system.
SIA Kronis
Founded in 1996 by acquiring former Bauska food production unit. Along with juices also
products soups, canned food, sauces, salads, lecho, jams and sweets. Markets its products as
“Grown and produced in Latvia”, apple an quince juice as “natural juice”, and plum nectar as
“environmentally sound” product.
SIA Kronis fruits and berry juice assortment
Name
Apple-cranberry nectar
Blackcurrant nectar
Cranberry nectar
Plum nectar
Package
3 L, glass jar; 750
ml, glass bottle
3 L, glass jar; 750
ml, glass bottle
3 L, glass jar; 750 ml
and 30 ml, glass
bottle
3 L, glass jar; 750
ml, glass bottle
Carrot nectar
Apple and beetroot juice
3 L, glass jar
750 ml, glass bottle
Apple juice
3 L, glass jar; 750
ml, glass bottle
3 L, glass bottle
Quince juice
Description
Made generally from fruits, berry juice and pulp.
Grown and produced in Latvia.
Grown and produced in Latvia.
Natural product made of smashed cranberry
mass, sugar and water. Grown and produced in
Latvia.
Environmentally sound, produced from domestic
raw stuff – plums. Grown and produced in
Latvia.
Carrot nectar. Grown and produced in Latvia.
Made of fresh apples and beetroot juice. Grown
and produced in Latvia.
100% natural juice of fresh apples. Grown and
produced in Latvia.
100% natural juice of fresh quince. Grown and
produced in Latvia.
SIA Pūres dārzi
Pure, +371 3191146, +371 9249450, e-pasts: puresdarzi1@inbox.lv
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
SIA Pūres dārzi fruits and berry juice assortment
Name
Apple juice
Package
5 L, Tetra-pack,
cardboard box
Description
Natural apple juice. Made of apples grown at
Pūres dārzi.
SIA Pārsla 2
"Stabulnieki”, Stabulnieki rural district, Preili region. Biologic husbandry. Markets its products
as “biologic products free from preservatives”.
SIA Pārsla 2 fruits and berry juice assortment
Name
Apple juice
Blackcurrant nectar
Plum juice
Cherry juice
Redcurrant juice
Cowberry drink
Apple and strawberry juice
Package
3 L, jar; 750 ml,
bottle
750 ml, bottle
3 L, jar; 750 ml,
bottle
3 L, jar; 750 ml,
bottle
3 L, jar; 750 ml,
bottle
3 L, jar; 750 ml,
bottle
3 L, jar; 750 ml,
bottle
Apple-cowberry juice
3 L, jar; 750 ml,
bottle
Apple-chokeberry juice
3 L, jar; 750 ml,
bottle
Description
Biologic apple juice without sugar.
Biologically grown blackcurrant, water, and
sugar.
Plum juice 80%, water 15%, sugar 5%.
Cherry juice 2 L, water 1 L, sugar.
Redcurrant juice 70%, water 25%, sugar 5%.
Cowberry juice 25%, water 70%, sugar 5%.
Apple and strawberry juice with sugar. Free from
preservatives. Apple juice 70%, strawberry juice
29%, sugar 10g/L.
Apple-cowberry juice with sugar. Free from
preservatives. Apple juice 90%, cowberry juice
9%, sugar 10g/L.
Apple-chokeberry juice with sugar. Free from
preservatives. Apple juice 90%, chokeberry juice
9%, sugar 10g/L.
SIA Lienama
"Kalna purvs" , Gaujienas rural district, Aluksne region, LV-4339, +371 29296517.
Grows blackberry and cranberry since 2005 and produces berry juice. Company employs
15 persons including administration. Produces approx. 10-20 thousands of juice 300 ml bottles
per annum. Distributes in supermarkets.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
SIA Lienama fruits and berry juice assortment
Name
Blackberry juice
Package
300 ml, glass bottle
Raspberry juice
300 ml, glass bottle
Cranberry drink
300 ml, glass bottle
Cranberry juice
300 ml, glass bottle
Blackberrycranberry juice
300 ml, glass bottle
Description
100% juice. Produced by mechanical pressing of large
blackberry grown on big-berry bushes. Free from
preservatives and food additives. After opening consume in
3-4 days.
100% juice. Produced by mechanical pressing of raspberry
grown in Latvia. Free from preservatives and food additives.
After opening consume in 3-4 days.
20 % cranberry juice. Produced by mechanical pressing of
cranberry grown in Latvia. Free from preservatives and food
additives. After opening consume in 3-4 days.
100% juice. Produced by mechanical pressing of cranberry
grown in Latvia. Free from preservatives and food additives.
After opening consume in 3-4 days.
100% juice. Produced by mechanical pressing of berries
grown in Latvia. Free from preservatives and food additives.
After opening consume in 3-4 days.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
Home manufacturing of plant origin foods
Analysis of data for November 2009 witnesses that the greatest specific weight among registered
home manufacturers forms home manufacturers of plant origin foods (36%) and home
manufacturers of milk products (30%). Comparatively smaller specific weight is for home
manufacturers of meat products (14%), as well as home manufacturers of flour products and
bread (11%). Procession of fishing products in home conditions forms only 7% of total home
manufacturers’ amount.
Table 4.3. Dynamics in product sectors of home producers registered in Latvia: July –
November, 2009 (FVS 2009a, ER, FVS 2009b, ER, calculations made by author)
Manufactu
ring of
meat
products
and minced
meat in
home
conditions
Manufac
turing of
milk
products
in home
conditio
ns
Processing
of fishery
products
in home
conditions
Manufact
uring of
vegetable
oil and fat
in home
conditions
Manufact
uring of
plant
origin
foods in
home
conditions
Manufact
uring of
flour
products
and bread
in home
conditions
Manufact
uring of
egg
products
in home
conditions
Manufactu
ring of
specific
foor of
animal
origin in
home
conditions
Manufact
uring of
nonalcoholic
drinks
and ice in
home
conditions
07/2009
(number)
87
187
43
6
224
65
2
0
4
11/2009
(number)
93
200
47
2
237
76
1
0
6
Changes
(number)
6
13
4
(4)
13
11
(1)
-
2
Changes
(%)
7
7
9
(67)
6
17
(50)
-
50
Analysis of indicator dynamics show that there are no significant changes in register data of
home food manufacturers in 4 months’ time (from 28 July 2009 to 5 November 2009); the
number of home manufacturers in more popular categories has increased, though the groups with
small number of home manufacturers or zero of them still are underdeveloped. If the register
data of FVS is analysed, the most popular category still is manufacturing of plant origin foods in
home conditions. 13 enterprises have registered during these 4 months; the same number of
enterprises has registered in the second most popular category – manufacturing of milk products
in home conditions.
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What is the geographical overlay of registered home food manufacturers?
The number of registered Latvian home manufacturers is not even. There can be registered more
than a hundred home manufacturers in several regions, but some regions have only few or one
home manufacturer.
Aizkraukles rajons
Alūksnes rajons
17
15
Balvu rajons
4
14
5
11
17
37
64
47
14
2
6
4
28
26
1
14
19
6
8
36
53
11
7
8
1
14
3
17
7
Madonas rajons
28
53
Ogres rajons
26
37
Preiļu rajons
20
Daugavpils
3
Rēzekne
Daugavpils rajons
4
Rēzeknes rajons
19
1
1
Rīga
28
Gulbenes rajons
6
Rīgas rajons
64
Jēkabpils rajons
14
Saldus rajons
14
6
Talsu rajons
11
Tukuma rajons
47
Jelgava
Jūrmala
15
4
Ludzas rajons
Cēsu rajons
Jelgavas rajons
20
4
Limbažu rajons
Bauskas rajons
Dobeles rajons
28
8
14
11
2
Valkas rajons
Krāslavas rajons
15
Valmieras rajons
Kuldīgas rajons
14
Ventspils
Liepāja
Liepājas rajons
8
36
Ventspils rajons
KOPĀ
4
15
5
17
559
Figure 4.6. Geographical overlay of registered home food manufacturers in territories of
ex-municipalities
Source: FVS 2009a, ER, calculations of the author.
Revising the geographical overlay after the registered locations of home manufacturers, it can be
seen the greatest concentration of manufacturers is in Riga region (64), Bauska region (53),
Tukums region (47), Cēsis region (37), Liepāja region (36). Less than 30 home manufacturers
have registered in other regions. Participants of home manufacturing sector explain the situation
with positive cooperation with controlling institutions, as well as the closeness of trading places,
especially in Riga.
If the data of registered enterprises are analyzed after their belonging to particular region, it can
be seen the greatest concentration of home manufacturers is in Riga region (33%). The smaller
specific weight has Latgale region (10% from total number of registered home manufacturing
enterprises perform their economic activity in this region). For the summary of region
information the division of planning region has been used, i.e., Riga region consists of Riga,
Riga local municipality, Jūrmala, Tukums local municipality, Limbaži local municipality, and
Ogre local municipality.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
75
2. Manufacturing of
67
meat products and minced meat
in home conditions ,
3. Manufacturing of milk products
in home conditions
%
50
36
30
34
25
19 20 21
25
26
7
products in home conditions
25
21
17
16
16
14
14
7. Manufacturing of plant origin
31
19
15
12
8
4. Procession of fishing products
in home conditions
6
0
0
0
8. Manufacturing of flour products
and bread in home conditions
Kurzeme
Latgale
R?gas re?ions
Vidzeme
Zemgale
Base: all registered home manufacturers in corresponding industry (07/2009): Meat, n=87, Milk, n=187, Products of plant origin n=224, Bread
n=65, Fish, n=43; Those industries, which have less than 30 home manufacturers are not presented in the chart.
Figure 4.7. Distribution of geographical overlay for registered home manufacturers after
their economic activity
Source: FVS 2009a, ER, illustration and calculations of the author.
There is different regional overlay for groups of different products. After register data of home
manufacturers the manufacturing of plant origin foods in home conditions is the most popular
type of home manufacturing. Also in this category Riga region has the greatest specific weight
(30%). 25% home manufacturers of this group have registered in Zemgale, 20% in Kurzeme,
and 16% in Vidzeme. Comparatively smaller amount of plant origin foods manufacturers are
registered in 8%.
Which factors affect intensity of registration?
The main motivator for registration is a possibility to realize own production. Registered home
manufacturers can safely go with their production to the market and realize it in the direct trade.
Interviews of experts and home manufacturers identify also other factors, which indirectly
implements the number of home producers in different territories:

Closeness of market and customers
“There are more registered enterprises around Riga since customer is more available. A
possibility to trade is the main motivation to register.” (Freimane 2009)

Establishment of new trading place and civil initiative
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
“The green market was made very close to our farm. Of course, we had to use the
possibility. I studied in courses, learnt how to make cheese and currently direct incomes
from direct trade helps our farm to bear this time.” (RMR)
“In meetings of confederate groups we had the idea to establish a green market in
Straupe. The further progress of idea was undertaken by initiative groups. But we had to
convince people thy can do much by their own, they only must show and prove they are
able to do it. Farmer has to prepare for the market. Many of them are lacking enterprise,
some of them are afraid. Those who work, grow vegetables, manufacture and prepare
interesting things do not have any free time to revise all documentation; therefore to our
meetings we invited specialists of SRS and FVS. (Roziņa 2009)

Cooperation with Food and Veterinary Surveillance.
“Implementation and start of activity largely depends on inspector of FVS since there
exist a biased factor. It is impossible to prompt everything. The farmers must provide risk
evaluation, but our inspectors are more directed towards prepared documentation where
one can go and check whether everything is done correctly. In places, where inspectors
are more reasonable and understand the small entrepreneurship is a base of all country’s
welfare, all this issue is formed more easier. (Melece 2009)
How do registered home food manufacturers implement the stated requirements?
The information on results of last inspection in a particular home manufacturing can be found in
data bases of FVS. The results are classified in the following manner: (A) fully corresponds to
requirements of regulating rules and regulations on food circulation, (B) corresponds to
requirements of regulating rules and regulations on food circulation, but there are some faults,
which do not affect the harmlessness and safety of food; (C) does not correspond to requirements
of regulating rules and regulations on food circulation
Summarized information states 22% of all registered home manufacturers have received level A,
but more than a half, 55% home manufacturers have some faults, which do not affect the
harmlessness and safety of food (level B). 2 food home manufacturers have received level C. It is
important to underline that 23% of food manufacturers are uncontrolled yet. If the uncontrolled
manufacturers are excluded from the data analysis, the results are as follows: A level during the
last inspection received 28% home manufacturers, but level B – 72%.
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
75
2. Manufacturing of
meat products and minced meat
in home conditions
65
57
%
60
52
50
3. Manufacturing of milk products
in home conditions
43
7. Manufacturing of plant origin
products in home conditions
31
25
20
24 23
26
25
22
26
15
8. Manufacturing of flour products
and bread in home conditions
9
1
1
0
0
0
0
Not evaluated
A
B
C
4. Procession of fishing products
in home conditions
Base: all registered home manufacturers in corresponding industry (07/2009): Meat, n=87, Milk, n=187, Products of plant origin n=224, Bread
n=65, Fish, n=43; Those industries, which have less than 30 home manufacturers are not presented in the chart.
Figure 4.8. Results of last inspections in registered home manufacturers according to their
economic activities
Source: FVS 2009a, ER, calculations of the author.
During the provided inspections 25% of home manufacturers of plant origin foods received the
highest level A, but 52% - level B. Comparatively better results showed flour products’
manufacturers (31% received level A and 43% - level B), whereas home manufacturers of milk
products showed comparatively worse results (15% received level A and 60% - level B).
Indicators have been calculated among all home manufacturers, and the number of uncontrolled
food manufacturers was taken into consideration.
Specific weight of organic food processors in home manufacturing industry
Participants of organic agriculture can be mentioned as a separate subgroup – in other EU
countries they form significant part of small-scale processing production manufacturer and it is
as analogue for home food manufacturing in Latvia.
In generally, there are 401 enterprises of organic agriculture registered in Latvia. There are 55
enterprises of organic agriculture registered as product processors and manufacturers. There are
several popular brands as „Lāči” Ltd, farm „Ķelmēni” (bread and flour products), JSC „Trikātas
siers” among them. Basically, these enterprises have a status of recognized enterprise, which
allows them to sell their production in all circulation channels. According to FVS register data
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„Horticulture industry: production, preservation and processing of fruits and berries in Estonia and Latvia” Industry analysis, Report 06/2010
of enterprises only 13 organic farms are registered as home food manufacturers; 7 enterprises of
them have registered themselves in the field of milk processing. (PVD 2009b, ER)
Executive director of Association of Latvian Organic Agriculture Mairita Blūma indicates the
main restraining factor currently is a price of organic products, which affects the competitiveness
of products in the market.
„Organic raw materials are very expensive if they are compared with conventional
products. For example, the price for organic eggs is twice as expensive as the price for
simple ones. Wherewith the product has decreased competitiveness in the market and
purchasing power of customers is declining. Of course, we need to invest active work in
the development of organic products and society opinion, which could help to justify the
price of a product.” (Blūma 2009)
What are the motivators and barriers for registration the home manufacturing?
Home manufacturers shall take into consideration the same regulating base as any other
manufacturing enterprise, which participates in food circulation. The main part of unregistered
home manufacturers (61%) claims they could register if the obstacles for legislation are lesser.
Almost half (48%) of unregistered food home manufacturers claim they have no such
manufacturing amount for registration. But every fourth has no information on registration and
the requirements of it.
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Driving forces
Registration of home manufacturing
Restraining forces
Family support
Number of unregistered HM
Knowledge
Small amount vs. legal expenses of HM
Availability of information
and cooperation with FVS
Inattention and lack of knowledge
Worries
Rumors
Confidence
about product
Development of
trading places
Possibility to sell primary product
There are no
changes
Changes
L?d zsvars
Figure 4.9. Diagram of driving-forces: registration of home foods manufacturing
Source: adapted from Valubasemanagment.net 2009, ER; summary by the author, focus group
discussion data and direct interviews of home food manufacturers.
From the total data of the research (both quantitative questionnaires, and interviews) it can be
concluded the driving forces for registration of home foods manufacturing are:

availability of information;

development f trading places;

family support.
These three factors generally form the main group of driving forces, which positively affect
process of registration. Positive impact on initiation of registration also gives the knowledge of
home manufacturing, for example, technological process. Confidence about product and
previous experience also are positively affecting factors. If home food manufacturer understands
he will be able to sell it, the one receives encourage for registration. Certain positive affect is
established by fear from control and desire to be honest.
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“I am food technologist after my profession therefore the manufacturing things do not
threaten me; simply I could sell my product without registration. Actually I wanted to
register myself already long time ago since I did not want to worry.” (NMR)
“I want to sleep well at nights and be aware that the documentation is correct and I am
honestly done everything from the viewpoint of legislation.” (RMR)
Restraining forces act contrary. The most significant ones are the following:

Small amount against registration expenses;

Lack of enterprise and knowledge;

Possibility to sell the primary product.
Comparatively insignificant restraining forces are rumors on the issue the registration is
complicated, as well as the amount of unregistered home manufacturers. Of course, registered
home manufacturers have to take into consideration the costs will be greater than unregistered
home manufacturers and this factor affects both product price and competitiveness in the market.
Exactly this factor inhibits home manufacturers from registration.
It is significant to mention that though customers in the market may consider their choice, the
registration itself does not provide a significant contribution. In the process of purchase the most
important thing is a "picture" of a manufacturer and quality of a product, which is stated after its
taste. Customers of home manufacturing goods admit they try to perform repurchase and buy
products of sellers they already know.
“I buy products from that farmer because I know he has a tasty production. I do not know
whether he has registered his manufacturing. Maybe it is not important for me. Of course, it
would be better if his documentation was in order though, I do not know whether it affected the
quality of products. It depends on a farmer himself, his nature and how dutifully he settles such
issues. (Client interview, rural area)
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Case study: Manufacturing of plant origin foods in home conditions
Manufacturing of plant origin foods in home conditions (table provided by the author,
direct interviews of food manufacturers, observation data)
Story of a manufacturer #1: manufacturing of plant origin foods in home conditions
Manufacturing of plant origin goods in home conditions is performed by an individual
entrepreneur, who has an experience in related field and previously owned a farm, the main
activity of which was manufacturing of plant origin goods. Entrepreneurship has developed, there
have been several branch offices in Riga, but due to several factor the business has ruined.
Currently home manufacturer appreciates the possibility to wok individually and use her sills as
technologist. The turnover per annum is almost 10 000 LVL. Employed accountant settles issues
of book-keeping.
The main motivation for registration was a desire to establish a working place for her. As
important motivation was a possibility to define her daily schedule and dedicate more time for
children. Family support is very important. Production of home manufacturer is being
transported to different trading places, usually all family participates in this process. She admits it
would be hard to do it alone, therefore the highly appreciates her husband helps her by going with
her to the trading places.
Assortment of production is formed by different mixtures of seeds, content of which are both
local and imported raw materials. Not all raw materials are available in Latvia; therefore there is a
necessity to use raw materials from other countries. Materials grown in Latvia not always have a
competitive price, for example, dried garlic from China costs 6LVL/kg. Home manufacturer
thinks dried garlic could cost ten times as much in Latvia.
Home manufacturer has a bad experience with suppliers of local raw materials since farms are
affected by weather conditions. It always has been a choice to buy a cheaper imported raw
materials or more expensive local one. And though – the main is a product quality. Home
manufacturer has excellent knowledge about nutritional value of products. In order to be
confident on quality of her products, analyses of product nutritional value have been ordered. It
needs to be mentioned all family uses the products.
During the realization process a particular attention has been paid to communication with the
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client. Home manufacturer is accordingly dressed (stylized national costume), also the design of
trading place is adequate to the situation. There is a possibility for clients to try each product.
Home manufacturer has a story about each product – the peculiarities in taste and its usage. It
attracts attention of a client and establishes an interest to by the product.
Development of direct trade in generally can be evaluated as positive. Though, there is a
tendency that market organizers demand disproportionately high participation fees for trading
place, especially in capital city. Home manufacturer says: “I could pay if organizers took care the
large numbers of buyers actually came to this place. Otherwise it is impossible to recover those
400 lats, which are demanded for a trade in December in Riga.
Currently the biggest challenge is decrease in amount in relation to decrease of customers and
their purchasing power. Exactly in December home producer experienced first losses and returned
from two trading places without recovery of her investments. Of course, it makes her to worry
about future development. The closest aims are connected to preservation of production amount,
but future vision in relation to foods home manufacturing is more educated customers and more
qualitative and available products.
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Positioning of home manufactured foodstuffs
The customers of home manufacturing goods both from Riga and outside Riga were interviewed
during the research. Perception of home manufacturing foodstuffs is different in city and rural
area. The main difference, which affects perception of product, is a personal recognition of a
home manufacturer. In order to be safe for one’s choice, a customer wants to establish closer
relationship with a seller, find the more appropriate product and if the customer is satisfied with
the product, he will purchase regularly. City inhabitants underline it is quite difficult to buy
products form one and the same seller. Rural inhabitants admit their preferences are a personal
recognition with local manufacturers.
“It is very important to know a home manufacturer, but it is impossible in Riga if you do
not go regularly to the same market and in one and the same time. There are cases when
products are delivered directly to offices. By the way, home manufacturers could use this
opportunity more frequently. But of course, product must be of good quality and tasty."
(Client interview, Riga)
“I personally know a woman who makes cheese. I have been in her house and know she
is very accurate. It is important for me.” (Client interview, rural area)
Home manufacturing foodstuffs in customer perception currently are similar to industrial goods.
Clients interviewed in Riga expressed critique for product assortment and identified unused
possibilities for improving the current situation. Rural inhabitants mentioned price of a product
as one of most significant factors of choice and admitted the product of home manufacturers
often are more advantageous than industrial products available in stores.
„I have an opinion many home manufacturers produce very similar production, which
often are based on more or less tradition recipes. There are few original products or
products with different quality. Practically I have not seen pastry-cook from flour of a
rough grinding – healthy and tasty.” (Client interview, Riga)
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Home manufactured products
High level
Low level
Price
Quality of
Taste
raw materials quality
Healthy
product
Organic
product
Enjoyable
shopping
Industrially manufactured products
Food safety
Food
Availability Relationship
traceability of products with
manufacturer
Local
product
Figure 4.5. Strategic canvas: Home manufactured products vs. industrially manufactured
Source: Adapted from Kim, Maborna 2007, p. 46, illustration by the author, data from client
interviews.
Comparing products of home manufactures with industrially produced or conventional products,
the main differences in target group of customers are whether it is organic, local origin of a
product and relationship with a manufacturer – in these factor groups the products of home
manufacturers are evaluated with a higher level than industrially manufactured. Respondents
admitted there is a necessity to clearly underline the differences in this factor group.
Availability for facts circulation products is one of the main significant factors. Availability of
products has been evaluated higher for industrially produced that home manufactured products.
It is also one of the imperfections regarding the home food manufacturing - comparatively great
work has been invested in the manufacturing of a product, there are good relations with the
buyer, who would like to buy a product, but it is difficult to purchase a product or the purchase
are very complicated, for example, the customer must go after the product. The price has been
evaluated equally between both categories, though interviews show the price is not a primary
factor, why people chooses products of home food manufacturers.
Recommendations from friends and colleagues are very important for me. The price is
not the most significant – it is not as important as it is in a shop, where there are several
similar products I can choose. (Client interview, Riga)
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Quality of raw materials, wholesomeness and quality of taste are received as better for home
manufacturers though the differences are not great. Traceability of foodstuff has been evaluated
as higher for products of home manufacturers. The food safety, in its turn, has been evaluated
equally both for industrially produced and home manufactured products. Interviewed clients
admitted they like to taste product during the purchase and identify its quality after its taste. The
relation with a manufacturer/seller also is very important since it gives an additional value to a
product. Client likes to know something more about the origin, quality and taste of a product.
“It is better to buy sauerkraut and vegetables from farmer than in a store, since they are
not packed in some plastic bag and I see the product, can choose. It is more ecological. I
especially like pavilion of roots because everything smells as a marinade and I can taste
and choose the best one.” (Client interview, Riga)
Interviewed clients admitted the foods home manufacturers and their production is very
different. Currently foods home manufacturers do not have a strong position of products, though
there are available several good products of home manufacturing in the market. Clients’
suggestions to the home manufacturers:

Take care of food hygiene in reality and create an impression and confidence for a
client that everything is all right with the quality and cleanness of product;

Think about packaging and design, and choose more natural packaging;

Improve the product labeling, which is the guarantee the home manufacturer is
subjected to the control;

Manufacture more qualitative and different foodstuff, create something new and
interesting;

Improve the product availability, take their products to the city (to offices, at
supermarkets, more active trade in markets), form separate stands of home
manufacturing in food departments of supermarkets (for city inhabitants),
materialize their product in local shops (for rural inhabitants);

Search for a possibility to decrease product prices;
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
Inform society about the quality of one's product in more active manner; increase
the identification and popularity of products, advertise one's production in local
mass media.

Educate society, for example, with several campaigns in supermarkets
(degustation), explaining the healthiness of products and significance of food
consumption, which is manufactured in Latvia.
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Product flow in home food manufacturing
According to Chapter 3 Section 4 Clause 6 of the law “On the Supervision of the Handling of
Food” (1998) „Food manufactured or processed in home conditions can be distributed in local
market directly to a customer, taking into consideration hygiene requirements for food
manufacturing and processing.” Direct trade in Latvia is considered as regular trade places, as
well as so called street trade - fairs and itinerant trade.
Research of participants of home food manufacturing branch states the greatest part of registered
food processing home manufacturers use a possibility to take their production to the market
(86%), as well as the possibility to transport product directly to a client (57%) and sell it to
clients, who come after the products themselves (52%); only 19% of the respondents give their
production to dealers. Unregistered home manufacturers use a possibility to transport product
directly to clients (75%) and more than a half sell their products to clients, who come after the
products themselves (56%). It needs to be mentioned 47% also transports their products to the
market, but 9% give production to dealers.
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Product flow in
the local market (Latvia)
Unregistered
manufacturers of
primary products
Ministry of Agriculture
(food circulation)
Food and Veterinary Surveillance
Receivers of
small amount
primary products
Unregistered home
manufacturing
enterprises
Ministry of Economics
(economic activity)
State Income Agency
Registered manufacturersof primary
products
Importers of
raw materials
Registered home
manufacturing
enterprises
Recognized food
manufacturers
Establishers of policy,
controllers
Production of
primary products
Processing of
primary products
Trade
Direct trade
‘from hand’
Markets of
direct trade
Wholesale
Home
manufacturer/
cooperation shop
Retail shops
HORECA
Consumer of meat products
Public catering
HORECA
Final consumer
Figure 4.2. Product flow of home food manufacturing in total food circulation in Latvia
Source: Illustration by the author, grounded on information acquired from the research.
The figure shows a product flow in local market and place of home manufacturers in it. Red
pointers show forbidden flow channels for home food manufacturers. Consequently, home food
manufacturers are allowed to trade their production in direct market: (1) if a client comes after it
(‘from hand’); (2) in market, fairs, itinerant trading places, (3) shop of their own.
According to information provided by the Ministry of Agriculture, home manufacturers are
forbidden to transfer their production to retail shops. Cooperation shops are disputable issue.
Currently there are several cooperation shops in Latvia, which also trades home manufactured
products, but the research shows that potential manufacturers and sellers in a process of new
shop establishment meet with resistance from controlling institutions since transfer of products to
cooperative shop is defined as transfer of products to the third party.
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Home manufacturers also are not able to sell their products to the local cafes, restaurants. Home
manufacturers do not need to ask to clients their documents in the market and there are several
stories when some chef regularly buys home manufactured cheese or any other tasty product for
the needs of one's restaurant. Home manufacturers would like a legal possibility to provide their
production to catering enterprises.
“It is necessary to allow home food manufacturers giving their production to local cafes.
The traceability would not disappear. And local entrepreneurship would gain from it.”
(RMR)
Products of home manufacturers can be as a driving force for tourism since exactly the
traditional food is one of the things a tourist wants to try in our country. Currently such
possibility for tourists is provided only during fairs (before Christmas, Midsummer Day) or in
farm markets (such as Berga bazārs or monthly farm markets outside Riga). Permanently home
manufactured products are not available in retail shope, except some shops of organic production
in Riga and outside it.
“Traditional products are more available in developed European countries and they are
used for attraction of tourists.” (Ziemele 2009)
“Nobody has the interest to come to Latvia and eat synthetic jam. It would be wonderful
if local restaurant offered jam of local red bilberries together with game meat. If the jam
is not qualitative, no owner of the restaurant or a chef will take the particular product.”
(Melece 2009)
By no means all home manufacturers would like to give their products to retail shops. Those
home manufacturers who basically work with home manufacturing alone are aware they want to
receive the maximum price for their products to completely pay for the invested work.
Secondly, worries of home manufacturers are connected with the struggle between market and
store nets.
Without taking into consideration the economic situation, new retail shops appear in the regions
and they base their activities on trade of local products. Shop owners have expressed wishes they
would like to trade home manufactured food products. Regional or small shops as alternative
way of product trade in generally are supportive idea among home food manufacturers and
clients, who still pointed out that not all home manufactured products are to be sold in shops and
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initially they would like to try the product, buy it from the manufacturer and only afterwards buy
it in the more available trading place.
“If I gave my production to store, they will put a surcharge, but I already know sell my
products with a small surcharge. Will be I be able to sell both in the market and store in
one city?” (RMR)
“Some home manufactured products are so tasty and qualitative I would be glad to use
them more frequently, but I will not go 20 km after them; I would like to buy the products
in some nearer store.” (Client interview, rural area)
Impact of external environment factors
For the identification of external environment factor several research methods are used. Data
have been gathered from quantitative questionnaire of home food manufacturing branch, deep
interviews and expert interviews.
Table 4.2. External environment factors affecting development of home food manufacturing
(adapted from LE PEST C model (Brooks, Wheatherston 1997)), summary of the author, data
from home manufacturing questionnaires, direct interviews, discussions and expert interviews)
Legal
environment
Ecological
environment
Political
environment
Economic
environment
Social
environment
Technological
environment
Competition
Restraining factors
Interpretation of legislation
Driving factors
Interpretation of legislation
Customer has not identified the ecological
factors as significant
Quality of raw materials
Natural products
Smaller packaging
Support of local municipalities for organizing
trade places
Demand for qualitative products with
profitable price
Development of micro-crediting
Unpredictable political environment
Lack of lobby for home manufacturers
Recession of economy
Decrease in customer purchasing power
Lack of support for small businesses
Undifferentiated tax policy
Increasing level of unemployment in country
Decrease in number of inhabitants
Decrease of middle class
Desire of inhabitants to find a new occupation
Availability of the Internet for home
manufacturers
Development of publicly available data bases
Increase of common competition in food market
Registered vs. unregistered home
manufacturers
Changes in society attitude and support for
farmers
Formation of civil initiative groups and
activities of social organization
Mass media support for the industry
Not identified
Increase of common competition in food
market
Threats of newcomers
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Every factor of external environment can be both restraining and driving for development of
business, sector or industry.
Table 4.2 provides factors regarding impacts of external
environment on home food manufacturing, which were identified during the research.
Currently the possibilities for legislation interpretation are very wide. There are no precise
requirements for home food manufacturers and application of them depends on FVS inspectors
of a particular territory and their interpretation of legislation. The research participants have
identified it as a restraining factor and think the home food manufacturing in Latvia has been put
on the same level as industrial manufacturing (55%). Of course, one part of home manufacturers
make gains from interpretation of legislation, for example, lower expenses from interpretation of
legislation is for them, who does not have to give the water analysis since they use centralized
city water-mine and use water in home manufacturing only for hand washing.
Restraining factor also is an unidentified dimension of customers about ecological quality of
food. Customers pay few attention to significance of ecological factors and, for example, smaller
„product mile” (a distance from the place of product production to customer) has not been
received as important significance. A customer desire for natural product and certain origin can
be mentioned as positive ecological environment factor; also a smaller packaging can be
evaluated positively, though the thoughts of interviewed clients about the particular issue varied
according to the purchased products.
„I always buy cream in a new plastic package, though the packaging cannot be
considered as ecologic. It is possible to use this packaging elsewhere, but still there is too
many plastic material." (Client interview, rural area)
Political environment can be evaluated as very unstable and, in generally, it affects home food
manufacturing negatively.
Often changes in legislation, unavailable explanation establishes
advantageous ground for rumours and low motivation of home manufacturers to follow the
changes of regulating requirements.
Also the lack of representation of home food
manufacturers’ interests is identified as restraining factor. Currently there is no organization,
which could validly represent interests of home food manufacturers in political level. There are
organizations of different sectors where one of the issues is more advantageous conditions for
food processing, for example, Association of Latvian Organic Agriculture, Association of
Latvian meat manufacturing and meat processing etc. Also the support of local municipalities in
organization of trade is identified as positive factor of political environment.
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The main economic environment factor, which affects home food manufacturers, currently is
decrease in customers' purchasing power. Every interviewed home manufacturer has observed
this issue in one's economic activity. The purchasing power of customers is related to decrease
in total amount of money and caution, i.e., the amount and regularity of purchases is decreasing;
purchases are more advised and everyone tries to buy only the most necessary products. It also
means losses for home food manufacturers since they are not always able to sell their production.
„In four years’ time I did not experienced any losses, but now for two weeks in turn I was
not able to sell all my production in fairs, where I go regularly.” (RMR)
Also the lack of support for small enterprises and undifferentiated tax policy such as equal rate of
income tax etc. can be identified as significant factors of economic environment. Planned
support program for micro businesses has not approved yet, there are not unbiased information in
order to evaluate the impact of the program to home food manufacturer.
Increase in demand for qualitative products with competitive prices is identified as another factor
of economic environment. It is a challenge for home food manufacturers, but in the meantime it
is also a great possibility since in this economic situation customers are looking for new
consumption solutions. The one, who will know how to use this tendency and change the
accidental product consumption into habit, will be able to plan further manufacturing amounts in
a more successful manner.
Of course, it also means the provision of product quality.
Development of micro crediting is a perfect solution for this purpose.
„50 micro credits were issued to rural women in 2009; currently some of them are
successful home manufacturers. Amounts of micro credit available for 2010 will be more
significant, which means there will be some financing possibilities.” (Freimane 2009)
Social environment affects home food manufacturing both in a positive and negative manner.
Changes in number of inhabitants, increasing unemployment rate has been identified as
restraining factor. CSB forecasts: „Number of inhabitants in Latvia in 2009 will be around 2
million and 249 thousands or 12 thousands less than in the beginning of the same year.
Statistical data witness the amount of emigration flow will increase this year. Amount of persons
left in order to change their permanent place of residence in first ten months of the year (6.3
thousand people) is greater than amount of emigrants in 2008 in total (6 thousand people),
whereas the amount of immigrants will be approximately for a thousand less this year in
comparison with year 2008.” (CSB 2009, ER). “Level of registered unemployment in the country
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in the end of November, 2009 was 15.1% from economically active inhabitants.” (SEA 2009,
ER)
A desire of inhabitants to find occupation in current economic conditions has increased the
interest about home food manufacturing. It can be generally considered as potentially restraining
factor since the interest groups consist not only from farms, which have the necessary raw
materials for product manufacturing, but also the unemployed city dwellers often without
appropriate education of food technologist. Their activities and performance in general can affect
the reputation of all sectors and perception of food quality among customers.
Changes in society attitude about farmers and their manufactured products are identified as
positive social factor. There appears interest of inhabitants to support local manufacturers – it is
proven by development of farm markets, which often is a base for civil initiative, for example,
Green Market in Straupe.
Attention to this sector paid by the mass media, which analyses the sector itself and popularizes
successful stories and concrete home manufacturers affects home manufacturing in a positive
manner. Of course, the greater attention to issue is paid by the mass media specialized in
development of agriculture and countryside. „Latvian Gazzette” („Latvijas Avīze”), other
regional press, Latvian Radio (Latvijas Radio), LTV1 Regional News etc.
Technological environment or availability of technologies is identified as one of the main
restraining factors. Questionnaire of participants in home food manufacturing sector provided by
the author witnesses that only 19% of all home manufacturers have the Internet. Of course,
official information and explanations of legislation can be basically found in the Internet. The
second aspect of technological environment is more connected to the non-usage of possibilities,
namely, home page of FVS contains data base of registered home food manufacturers. It is hard
to find and initially it is difficult to orient in it. Participants of home food manufacturing, clients,
also several experts interviewed during the research were not informed about such data base.
Total competition in market of foodstuffs is increasing. There is a struggle not only among
manufacturers, but also among trade channels – supermarkets try to attract buyers lowering
product prices; also the number of direct trading places, which offers production of farmers, is
increasing. Increase of competition can be evaluated both as restraining and driving factor.
Competition of unregistered home food manufacturers shall be evaluated as negative. To a
certain extent it is affected by a customer who does not ask whether home manufacturer is
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registered or not. Threats of newcomers are comparatively high since there are no significant
obstacles for becoming the home food manufacturer, for example, currently there are no
requirements the home manufacturers shall process only one's own products.
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Legislative framework
Normative acts regulating home manufacturing of food sector in Latvia (Ministry of
Agriculture 2009a, ER, Marcenkova 2009, table prepared by the author)
Sectors
LV
EU
Manufacturing
of meat
products and
minced meat
in home
conditions
Manufactu
ring of
milk
products in
home
conditions
Processing
of fishery
products in
home
conditions
Manufa
cturing
of
vegetab
le oil
and fat
in home
conditio
ns
Manufacturi
ng of plant
origin foods
in home
conditions
Manufactu
ring of
flour
products
and bread
in home
conditions
Manufact
uring of
egg
products
in home
conditions
Manufacturin
g of specific
foor of animal
origin in
home
conditions
Manufact
uring of
nonalcoholic
drinks
and ice in
home
condition
s
Law of the Republic of Latvia „Law on the Supervision of the Handling of Food” (19.02.1998)
Regulations of the Cabinet of Ministers No.964 23.11.2004 „Regulation regarding the Labelling of Food
Products”
Regulations of the Cabinet of Ministers No. 235. 29.04.2003 Mandatory safety and quality requirements for
drinking water, order of monitoring and control
Regulations of the Cabinet of Ministers No.203. 01.06.1999 Order of disinsection, disinfection and derazitation
measures
Regulations of the Cabinet of Ministers No. 158. 27.02.2007. Regulations regarding mandatory safety
requirements for food supplements and food with food supplements, as well as requirements for labelling the
food supplements.
Regulations of the Cabinet of Ministers No.409. 14.06.2005. Professional qualification requirements for persons
employed in food circulation
Regulations of the Cabinet of Ministers No. 494. 27.11.2001. Regulations regarding works connected to possible
harm for other peoples’ health and where employed persons are subjected to mandatory health care
Regulations of the Cabinet of Ministers No.486. 10.07.2007. Regulations on state tax regarding reception of
allowance and order for allowance delivery for vehicle groups, which need an allowance for transportation of
foodstuffs.
Regulation No. 852/2004, 29.04.2004. On hygiene of foodstuffs
Regulation 853/2004 (29.04.2004)*
N/A
Regulation 853/2004
(29.04.2004)*
N/A
1935/2004, 27.10.2004. Regulation on materials and articles intended to come into contact with food and
repealing Directives 80/590/EC and 89/109/EEC
1924/2006, 20.12.2006. Regulation on nutrition and health claims made on foods
1925/2006, 20.12.2006. Regulation on the addition of vitamins and minerals and of certain other substances to
foods
178/2002, 28.01.2002. Regulation laying down the general principles and requirements of food law, establishing
the European Food Safety Authority and laying down procedures in matters of food safety
Notes:
Distribution of sectors is formed in accordance with classification of FVS data base.
* Regulation of the European Parliament and Council (EC) No. 853/2004 (29 April 2004), laying down specific
hygiene rules according to foodstuffs of animal origin.
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HORTICULTURE INDUSTRY IN
ESTONIA
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Level of Estonian fruit and berry growing until 2008
In the year 2001 the area of orchards and berry gardens was 18,526ha and the total production
amounted to 27,031 tons including 18,232 tons of fruits and 8,343 tons of berries, in addition 456
tons of other berry cultures (including sea buckthorn, cultivated bilberry, bullace).
By the year 2004 the area of orchards and gardens had decreased to 15,690ha and the decrease
was constantly continuing (Table 1) being 8,100ha in 2008. Consequently, during a couple of
last years the area of fruit trees and berry bushes decreased almost by half.
Crops have fluctuated because of the weather but until the year 2008 they were extremely bad
(the good crops were hoped for the year 2009). In the years 2004-2008 the best total crop was
received in 2005 being round about 16,800 tons, including 10,663 tons of apples (and pears). In
other years the total crop was two to three times smaller. If we compare the apple crops in 2004,
2006 and 2008 with the crop of 2005, these crops constitute almost only a quarter of the crop of
2005 and sixteen times less than in 1993.
In 2004 the plum crop was 913 tons. In 2006 the crop was 282 tons, in the following years even
less, The plum crop of 2007 was more than 50 times smaller than in 1993 and 19 times smaller
than in 2004. It should be added that a good plum crop (2,334 t) was received in 2001.
The biggest fruit and berry crop – 48,200 tons – was received in the newly independent Estonia
in 1993. The apple crop in that year was about 40,000 tons. Two years later there was again a
good apple-year with the crop of 30,000 tons. The best plum-years were 2001 and 2002 when the
total crop was almost 2,500 tons. The best year of cherry production was 2002 with more than
1,400 tons. The best berry production years are also at the beginning of the 21st century.
Table 1. The area of orchards and berry gardens (ha) and the crop (tons) in the years 20042008.
The data of the Estonian Statistics Board
Total area
2004
2005
15,690 11,733
8,895
6,538
Total
Apples
and pears
Plums
1,298
Cherries
846
Red and 994
white
currant
836
528
671
2006
9,408
5,118
2007
8,575
4,331
2008
8,148
4,039
Total crop
2004 2005
2006
8,163 16,798 5,855
2,159 10,663 2,835
2007
6,625
4,087
2008
5,486
2,248
623
397
480
569
350
402
538
341
447
913
96
366
48
108
325
114
98
500
507
181
1,117
282
191
139
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Black
currant
Gooseberr
y
Raspberry
Strawberr
y
Other
fruits and
berries
1,137
785
553
614
615
738
933
427
158
234
589
362
264
230
231
487
74
52
69
121
382
1,095
328
865
299
814
210
648
220
564
317
2,293
544
2,323
236
1,523
210
1,500
256
1,512
454
820
860
1,221
1,153
794
456
170
120
403
The location of orchards and berry gardens
Concerning the area of orchards and berry gardens, the biggest area is in the County of Tartumaa
– 12% of the total area of agricultural enterprises in Estonia, (Table 2). The following positions
are occupied by the Counties of Võrumaa and then Viljandimaa. The smallest number of fruit
trees and berry bushes is grown on the islands of Hiiumaa and Saaremaa where the population is
the smallest. Also, the County of Läänemaa has few fruit trees and berry bushes which are very
few in the counties with the severest climate – Eastern-Virumaa, Järvamaa and Jõgevamaa, also
Western-Virumaa and Raplamaa.
The County of Viljandimaa has the biggest number of apple orchards, the County of Tartumaa
follows. The biggest area of plum trees is in the County of Tartumaa. The second and the third
place are occupied by the Counties Viljandimaa and Pärnumaa. The small area – less than 10 ha
in each – characterizes the Counties of Järvamaa, Hiiumaa, Eastern-Virumaa, Jõgevamaa,
Raplamaa, Saaremaa and Põlvamaa. The first place of cherry tree growing belongs to the County
of Pärnumaa, followed by the Counties of Viljandimaa and Võrumaa. The cherry trees are the
least numerous in the above mentioned counties of the severe climate and the County of
Hiiumaa.
Concerning the berry bushes, the County of Tartumaa has the largest area: occupying the first
place in growing the red and the white currant, the second place in growing the black currant and
strawberry. The County of Pärnumaa grows more raspberry than any other county.
The islands and Läänemaa are noteworthy because of their small degree of growing raspberry
and strawberry. In general, there is a small area for berry bushes. The same is true of the
Counties of Eastern- and Western- Virumaa, Läänemaa, Järvamaa, Raplamaa and Harjumaa.
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Table 2. The location of the orchards and berry gardens of
(ha)
The data of the Estonian Statistics Board for 2008
County
Garde Apples Plums
Cherri Red and
ns in and
es
white
total
pears
currant
Harju
279
146
18
14
14
Hiiu
83
54
6
4
3
Ida- Viru 121
56
7
6
4
Jõgeva
213
94
11
7
15
Järva
133
80
5
3
8
Lääne
181
111
16
7
9
Lääne265
112
10
6
11
Viru
Põlva
349
182
13
10
14
Pärnu
547
201
32
18
20
Rapla
296
84
12
7
12
Saare
173
98
12
10
9
Tartu
949
358
51
16
71
Valga
315
137
20
14
18
Viljandi
624
403
35
18
29
Võru
766
231
26
18
40
agricultural enterprises in counties
Black Raspber
currant ry
Strawberr
y
12
3
5
12
4
6
21
8
1
6
16
1
2
26
10
2
17
28
3
8
19
21
60
17
6
100
21
41
111
12
34
3
1
15
5
25
7
59
26
6
8
80
59
25
83
What are the reasons for small crops?
First of all, we should remind ourselves of the weather in the recent years. Winters were as if
mild: long periods of thaw, the temperature was rising in December and January even over +100
C. The plants stopped resting and started life activities. Then there were some frosty day with the
temperature below -200C or -250 C (in some places -300C). It especially harmed buds of blossom
but also destroyed the branches of plums trees and currant bushes. In several years the strawberry
plants suffered from frost when there was no snow cover and the roots froze. Many raspberry
stalks perished.
The apple and pear trees were harmed in several years by strong night frosts in May. When
during the first frosts the blossoms of some varieties were preserved, then after some days new
frosts appeared and killed them. The owners of orchards were not prepared to alleviate the harm
of night frosts: there were no heaps of material placed evenly in the orchard to make smoke
cover. They were not prepared for repeated frosts. In some places the apple trees in blossom
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were sprinkled with water. As avoiding the harm of night frosts needs knowledge and wellorganized activities, the owner could not cope with it. Repeated frosts on the wide territory
became fatal in these years to our crop of fruits and berries. Protection work is also expensive.
We can present for comparison the apple tree crop (Table 3) in our neighbouring countries and in
the best country of the world: Austria.
Table 3. Apple tree crops kg/ha in 2006 and 2007. The FAO data
Eesti
Soome
Läti
Leedu
Austria (maailma parim)
2006
554
5,135
3,589
6,696
84,016
2007
944
5,344
4,145
3,051
78,845
It should be mentioned that the FAO data (only apples) and the data of the Estonian Statistics
Board (apples and pears together) are different to a small extent. According to the Enterprise
Estonia the crops in Estonia were 594 kg/ha in 2006, in 2007 – 972 kg/ha, in 2008 – 569 kg/ha.
In these years the differences with our neighbouring countries were from three to ten times. The
best crops were in Austria, the crops of Poland were 7-13 times smaller than in Austria.
The decrease of fruit and berry plantations was caused to a great extent by the growth of the
people`s incomes and the increase of the people`s labour engagement. On the basis of the
questionnaire we may reveal the absence of time, wish and need for producing garden crops. A
significant reason is also the easy access to fruits and berries, their cheap price, high quality in
retail trade. This is why many production gardens have been turned into pleasure gardens. Old
(large) farm gardens were not taken care of because the crop could not be sold; in the end the
fruit trees were felled and berry bushes rooted out. This is why the area of berry bushes has been
greatly reduced (Table 1).
The year 2009 gave good crops. Several entrepreneurs have extended their apple orchards,
planted berry cultures. There are also new beginners – the founders of apple orchards. On the
plots of new private houses young fruit trees have been planted.
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The export and the import of fruits and berries in Estonia
Import
In the following tables the further export to other countries of imported goods has been
subtracted, consequently, the figures show the amounts of fruits, berries and nuts left for the
consumption in Estonia (Tables 1 and 2).
The amounts of many goods decreased in comparison with the previous year 2007. The amount
of the most imported fruits – citrus fruits – decreased by about a thousand tons, mainly by
tangerines and oranges. Lemons, limes, grapefruits and pomelos were imported in bigger
amounts. The success of limes is notable: within the last eight years the import had increased
more than twenty times and in 2008 it was almost as large as the import of avocados. In
comparison with the previous year the smaller amount of apples, pears, peaches (including
nectarines) and kiwi-actinidias was imported but the import of fresh plums, pineapples and
apricots increased. The popularity of avocado increased radically in 2007 and the level of import
in 2008 even grew a little.
Beside citrus fruits the amounts of other most important import goods – bananas and grapes –
increased. The amounts of berries have been fluctuating in different years. In 2008 fresh and
frozen strawberries were imported in a smaller amount than in the previous year but more frozen
raspberries were imported. Statistics show (Table 1) that among imported goods high bush
blueberry (Vaccinium corymbosum) is separately shown. This species of bilberry originating in
Northern America has big sweet juicy berries, the juice of which is colourless and the species as
a cultivated plant is gaining importance in the whole world. By the way, its bush is 2-3 m high,
in the case of hybrid varieties it may be less than 2 m or even 1 m.
Among the import of dried fruits (Table 2) the amounts of raisins and black plums, also dried
plums and apples have increased. The amounts of other goods, for example, apricots and
peaches, have decreased.
The import of nuts decreased in 2008, only hazel nuts were imported in bigger amounts.
Table 1 and 2 also show us the price of the imported goods. Limes, strawberries, sweet cherries,
avocados, especially star fruits, lychees, figs and bilberries belong to the more expensive goods.
Frozen raspberries are expensive, brambles are especially expensive. Also, the dried fruit
belongs to the expensive goods, especially apricots, figs and especially some tropical fruits
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(lychees, star fruits, granadillas). The declared prices of nuts are 55-75 EEK/kg. The fruits of
native Australian macadamia (also grown in Hawaii, the Southern African Republic, Brazil and
New Zealand) are expensive with the import price of 160 EEK/kg. It is natural that it is imported
in small amounts to test what the future sales could be like. Coconuts and chestnuts are cheaper.
The percentage of fruit and berries constituted 6% from the import of agricultural goods. If we
subtract the further exported goods, this indicator decreases to 4 – 4.5 per cent.
Export
In the present overview only the export of fruits and berries produced in Estonia is observed.
Consequently, the further export of our imported goods is not analyzed.
It can be seen in Table 3 that the amounts of fruits (apples, plums, sweet cherries) are so small
that they do not constitute an export amount worth mentioning. Bilberries, which were mainly
exported frozen, belonged to the most important export goods. The export of bilberries picked in
the forest constituted in the monetary value 78% of the general amount of export (fruits and
berries). The export of low bush bilberry (Vaccinium angustifolium) 34.3 tons is noteworthy. It
also demonstrates that the cultivation of a new culture has been successful.
Among the export of garden berries, in 2008 red currants (frozen) with 73 tons occupied the first
place. The export of strawberries and black currents was small.
The last bigger export of strawberries – 215 t of frozen berries and 2 t of fresh berries – took
place in 2001. In the two following years it fell to 25-26 tons (fresh and frozen berries in total).
In the years 2004 and 2005, 7 t and 16 t respectively were exported. In the recent years the
export has not exceeded 6 t.
In 2001 the black currant export was 66 t and in 2002 – 98 t. In the export of the following bad
years (in most cases 1-11 t) the year 2004 is exceptional with 110 tons. After that no significant
black currant export has taken place.
In 2008 the raspberry export (total 7.2 t) was the biggest amount in the 21st century. After the
export amounts of 5-7 tons in 2001-2003 there were three years when raspberry was not exported
at all or only 1 ton was exported in 2005. Only in the year 2007 the export was somewhat bigger
– 3.4 tons.
The total export of Estonian products in 2008 was 975 tons: 33.9 million EEK.
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Table 1 The export of fresh fruits and frozen berries in 2008
Description of goods
Amount t
Declared
Change
of
price EEK/kg amount
in
comparison with
2007
Fresh fruits and berries
Citrus fruit
14,204
Incl.tangerines
(7,101)
10-15
oranges
(4,202)
10.2
grapefruit and pomelos
(1,383)
12
+
lemons
(1,386)
16.5
+
limes
(132)
23.3
+
bananas
12,558
12.5
+
apples
12,211
grapes
6,774
17.5
+
pears
4,775
12-13
peaches
2,374
16
Incl.nectarines
(1,386)
18
kiwi-actinidias
1,102
17.3
plums
1,091
11.4
+
pineapples
848
12.7
+
apricots
292
16.6
+
sweet cherries
208
34.9
mango,guava,mangostan
182
16.2
+
avocados
137
25
+
dates
50
22.6
sour cherries
31
16.9
papaia
30
10.7
star fruits,lychees
12
39.4
quince
4
15.8
figs
3.6
42.9
fresh garden berries
species not indicated
733
18
strawberries
468
29
red currant
12
15.3
+
high bush blueberry (Vaccinium 7.6
32.5
+
corymbosum)
raspberries
69.4
39
+
black currants
0.4
fresh forest berries
.
bilberries
1,128
39.7
cowberries
870
22.7
+
frozen berries and fruits
strawberries (incl.with added sugar 118t)
437
about 20
-
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raspberries
sour cherries
black currants
species not indicated
tropical fruits
sweet cherries
brambles
227
83
34
14
13
5
5
Table 2. The import of died fruits and nuts in 2008
Description of goods
Amount (t)
34.7
22.2
21.4
33.5
27.6
75.8
Declared
price
EEK/kg
+
+
-
Change
of
amount
in
comparison with
2007
Dried fruits
Raisins
1,019
mostly20
+
Black plums
199
33.4
+
Apricots
155
39.4
Pears
132
15.2
+
Apples
100
21
+
Bananas
55
21.3
Lychees,star fruits,granadillas,etc.
13
62.7
Figs
8.7
43.9
Peaches
5
24.6
Papaia
4.7
22.9
Mixtures
121
32 – 87
Nuts
Almonds
273
mostly 60
Pistachio nuts
254
62.6
Nacrate (Indian nuts)
180
63.4
Hazel nuts
144
76.2
+
Greek nuts
103
70.2
Copra
50
17.9
Full coconuts
20
15.7
Para-(Brazil) nuts
4
55.8
Macadamia nuts
0.3
159.7
Chesnuts
0.1
22.5
Not indicated
19
74
Remark: 1) The hazel and Greek nuts are mostly cleaned from nutshells. 2) Dried granadillas (a
loan word: marakuja from Portugese) have a dried and hard wrinkled outer skin, the inner arils
are very juicy.
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Table 3. The export of fruits and berries produced in Estonia in 2008.a.
Description of goods
Amount (t)
Sum total thousand
EEK
Fresh fruits
Apples
1.4
23.1
Sweet cherries
0.4
26.3
Strawberries
1.2
50.3
Raspberries
4.3
50.7
Cowberries
10.8
334.5
Bilberries
10.7
637
Other
33.8
1,601.3
Frozen fruits
Raspberries
2.9
186.7
Black currants
1.3
50.8
Red currants
72.6
902.5
Bilberries
562.2
25,836.9
Low bush bluberry
34.3
1,400.4
(Vaccinium angustifolium)
Berries, species not indicated
222.9
2,091.1
Dried apples
00.2
1.4
Remark: Also plums (50 kg) and brambles (20kg) were exported in very small amounts.
Looking back to the Estonian independence before World War 2, I shall present the data of our
apple export in 1933-1935 on the basis of the Yearbooks of Foreign Trade (in comparison with
the import of oranges and lemons in the same years).
Apples were exported
1933
93,654 kg (26,888 crowns)
1934
56,0453 kg (15,8795 crowns)
1935
126,975 kg (46,731 crowns)
Oranges and lemons were imported
213,201 kg (74,907 crowns)
467,802 kg (151,543 crowns)
509,226 kg (204,720 crowns)
(The source: K. Randma: Transactions of the Experimental Council No 77, 1938)
The biggest amount was exported from the variety “Antonovka” (1933 and 19349 which was
exceeded in 1935 by the variety “Liivi sibulõun”. Other important varieties were “Sügisjoonik”,
“Seerinka” and “Liivi kuldrenett”. Apples were mainly exported to Finland and soon Finland
began to limit it with the purpose of the protection of its domestic market. Later, Estonian apples
were exported to Germany and England. The amount of apple export in tons was: 1936 - 371,
1937 – 480, 1938 – 284, 1939 – 472.. But, however, in the pre-war years the biggest amount of
export was constituted by forest berries: the biggest in 1938 -1,217 tons and in 1939 -830 tons.
(A.Prima`s article in the journal “Aed”, 1940 No3, pp.89-92).
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From where were the apples imported in 2008?
The annual import of apples has mostly been twelve to thirteen thousand tons, in the years of a
lean harvest even more: in the table below the further export of apples has been subtracted.
Initial figures originate from the Estonian Statistics Board.
Table 1. From the imported apples the following amounts remained in Estonia (tons)
2001
2002
2003
2004
2005
2006
2007
2008
13,100
12,972
16,524
18,229
13,440
9,038
12,636
12,210
The preferred sender was Poland. A quarter to one third of imported apples come from Poland, in
the year 2005 the amount was even 54%. The reason is the cheap price of the Polish apples: in
2008 the declared price 6.13 EEK/kg. At the same time the apples bought from Spain, the
Netherlands and Belgium were two times more expensive. In the previous year the second place
by weight was occupied by apples brought from the Netherlands (almost one fifth), the following
place with 10-11% was occupied by Belgium, Germany and Lithuania, then three times less.was
brought from France and Spain. Even smaller amounts came from Italy, Brazil and China.
Among import countries there were also Latvia, Hungary and the South African Republic.
Table 2. The import of apples from import countries in 2008
States
Precentage of weight
Poland
35.4
Value,thousand
crowns
26,600
Netherlands
Belgium
Germany
Lithuania
France
Spain
Italy
Brazil
China
Latvia
Others
19.2
10.7
10.3
10.2
3.7
3.1
2.1
1.7
1.6
1.2
0.8
29,170
14,080
13,700
12,320
5,630
4,830
2,760
2,430
2,030
1,760
1,100
Price EEK/kg
6.13
12.39
10.74
10.81
9.89
12.27
12.87
10.89
11.45
10.68
12.01
In the earlier years apples have also been brought from other South American countries Argentina, Chili und Uruguay.
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In an ordinary crop year the weight of imported apples has been 80-90% in comparison with the
self-production of Estonia (for example 2001 and 2002). In the recent years there have been quite
many years with a low or a lean harvest. Then 3.4 times (2003) or even 8.7 times (2004) more
apples were imported than received from Estonian orchards. In the year 2006 there was a very
low apple crop.
Very often people complain that Estonian apples are not on sale. We should draw the attention to
the fact that in the recent years the reason was the climate, primarily the strong (and repeated for
several nights) frosts in May which have destroyed the blossoms on wide areas. The Estonian
apple crops all over the country have been so small that practically nothing was left for sale. But,
however, there are quite many gardening farmers who plant apple tree orchards. There are also
some older orchards
The consumption of fruits and berries
The data of the fruit production and consumption in the Republic of Estonia have been published
in the journal “Aed” 1940, No 1 (pp.11-13). K.Luud presents the average fruit and berry
production per capita in 1936-1938 which was 32.2 kg consisting of 23.o kg apples, 0.4 kg pears,
1.4 kg plums, 1.4kg bullace, 0.8 kg cherries, 1.3 kg gooseberries, 3.0 kg red currants, 1.1 kg
black currants, 0.1 kg white currants, 0.4 kg strawberries and 0.3 kg raspberries. The total crop of
fruit trees was 26 kg, the crop of berry bushes only 6.2 kg, consequently more than four times
less. K.Luud mentions an especially small strawberry crop in the case of the low production of
berries. He also says that the export of apples (0.3-0.5 kg per capita) coincides more or less with
the import. At the same time people are reminded of the advice of the nutritionists that the
Estonian consumption should be four times higher, also adding that it is unrealistic. The
catastrophic winter of 1933/1940 killed most of the fruit trees. In addition, the weakened
surviving trees perished later, the fruit trees were harmed by the war in the summer and the
autumn of 1944. In 1945 only 15% of the fruit trees, growing in Estonian orchards in 1939, had
survived. There were 16% of apples trees, 11% of pear trees, 7% of plums trees and 10% of
cherry trees.
Elsa Kukk, an expert of fruit production economy, in her book “Instructions to fruit growers”
published in 1970 (the Publishing House Valgus), presumes that in the 1960s in the good years
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about 40% of the population`s needs could be covered, in low harvest years only 5-10%. I add
that then the best crops were in 1964, 1967, 1970 (also 1971). In the meanwhile there were the
worst lean years in Estonia which were caused by frosty winters killing many trees, branches and
buds of blossoms.
The consumption in the end of the Soviet period is shown by the data of the Estonian Statistics
Board published in 19921* (Table 1)
Table 1. Consumption of fruits and berries per capita in 1980-1991 (kg)
Fruits and berries
1980
38
1985
44
1990
36
1991
27
This time is also characterized by the decrease of vegetables (1980 - 83 kg, 1991- 57 kg) and
potatoes (1980 – 122kg, 1991- 104kg)
Data about the consumption in the 21st century
Since the year 2000, when the newly independent Estonia`s economic life had become stable, the
consumption of fresh fruits and berries per capita has remained between 40 and 47 kg a year. The
Estonian Institute of Economic Research (IER) specifies (see: Maamajandus (Rural Economy),
March 2008) that these figures stand for the fruits consumed at home, data received as a result of
the family household research of the Estonian Statistics Board (ESB). Fruits and berries received
without a pay (grown in the family garden) are included (Figure 1). This research does not
include the fruits consumed in restaurants, outside home at parties and when visiting people, also
the fruit added to school meals.
The differences between years are big. The smallest amounts of fresh fruits were consumed in
the years 2001-2203 (40.3-41.5 kg) the biggest amount in 2006 (46.8kg). The consumption of
processed fruit and berries (jams, juices, etc.) has constantly grown (ESB research, IER
calculation): in 2000 it was 75.3 kg, by 2005 it increased up to one hundred kilograms (98.4 kg)
and in 2006 it was already 108.3 kg, recalculated to the fresh fruit.
1
Estonia. A statistical profile. The Estonian Statistics Board, Tallinn, 1992, page 106.
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The research of the Estonian Statistic Board (the ESB Yearbook 2007) reveals that the monthly
average amount of bought apples was 0.6-1 kg (other fruits are not indicated) which equals to
7.2-12 kg of apples a year. In the years of the lowest price (2004 and 2005) more apples were
bought. It must be added that in 2006,
3,700 family households were studied.
värske puuvili ja marjad
töödeldud puuvili ja marjad
120
100
80
60
40
20
0
2000
2001
2002
Fresh fruit and berries
2003
2004
2005
2006
processed fruit and berries
Figure 1. The consumption of fruits and berries at home, kg/per capita in a year. The processed
fruit is recalculated to the fresh raw material. Data of IER and ESB.
The proportion of fruits and berries produced in Estonia in consumption greatly fluctuated
depending on the crop of the year. At the beginning of the first years of the decade the Estonian
proportion of fresh fruits and berries was 19-21 kg, in the bad years 2004 and 2006 it was only a
couple kilograms. In the years 2003 and 2006 there were practically no Estonian plums. For four
years running (2003-2006) there were no cherry crops. In 2000 raspberry gave a small crop, also
the crop in 2006 (all in all 236 tons) was small. The consumption of pears is based on the
imported goods. The imported plums are not popular and this is why the proportion of import is
not bigger than a quarter or a third of the production in Estonia (the lean year 2003 was an
exception).
The consumption of Southern fruits
Separately I tried to show the consumption of Southern fruits taking the import amounts as a
basis. It is not possible to calculate the consumed amount exactly because I have no information
about the spoilt fruit (in depositories, places of sale)
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Table 2. Southern fruits: the imported amounts of fresh fruit per capita in a year, kg.
Citrus fruit
2001
8.2
2002
8.7
2003
9.2
2004
9.3
2005
9.4
2006
9.4
2007
11.2
Including: tangerines
Oranges
Lemons
4.6
2.2
0.96
4.5
2.88
1.0
4.9
3.0
1.0
5.0
2.9
1.0
5.2
2.8
1.1
4.9
2.8
1.0
6.1
3.4
0.95
0.21
0.27
0.26
0.46
0.39
0.6
0.77
7.5
3.4
(including 1.2
6.7
2.8
1,5
9.0
4.0
1.1
10.0
4.2
1.4
7.5
3.6
2.2
7.5
4.7
2.2
7.5
4.4
2.0
Grapes and pomelos
Bananas
Grapes
Peaches
nectarines)
Among southern fruits the biggest group of consumed fruits is constituted by citrus fruits (Table
2) in which two times more tangerines than oranges have been brought to us. Lemons are
consumed about 1 kg per capita in a year. Limes have been left out of the table. The import of
limes in 2001-2002 was on average 10 grams per capita a year and by the year 2007 it grew up to
about 60 grams.
During Soviet times bananas were greatly in deficit. Perhaps, this is why the demand increased
so much that in 2004 more bananas than citrus fruits were imported. In the recent years the
banana import has most constantly been about 7.5 kg per capita in a year. The import of grapes
has notably increased: when in 2001-2005 the import amounts of grapes were more than a half
smaller than the import of bananas, then in the last two years the proportion of grapes constitutes
more than a half.
The import of peaches has also grown greatly and in some years has exceeded 2 kg per capita in
a year, while nectarines are preferred (without hair or uncovered fruits), for example, in the year
2007 nectarines constituted 62% of the total amount of peaches. On shop-counters kiwi-actinias
(ealier called:kiwi berries) and pine-apple are on everyday sale. In fact these are the fruits with a
small degree of consumption, the average consumed annual amount per capita being some
hundred grams. It can be said – one small pine-apple per capita in a year.
The amounts of fresh apricots, avocados and mangos are several times smaller. It can be said that
a big number of people have never bought them. If a lover of avocado or mango buys several or
some thirty-forty fruits year, it means that some hundred people do not buy a single fruit.
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In big department stores it is also possible to buy guava, mangostan, lychee, kinkane, papaya,
pomegranate, duriane, star fruit, tamarillo, granadilla (other name: marakuja), fruits of prickly
pear, hurma (or persimmon) and some ofter fruits, on average some grams of them per capita in a
year are consumed. These fruits are eaten by curious people or real specialists who are very few
in number.
Dried fruits and nuts
The first place of dried fruits is occupied by raisins which in some year are imported 1 kg per
capita, but in most cases less. The second place (data of 2006 and 2007) equally belongs to dried
apricots and plums but in comparison with raisins in a six times smaller amount. Suprisingly to
the first five places of fruits have entered dried pears. Dried bananas and dates are imported in
the amount half smaller than of plums. On sale there are also dried (imported) apples, figs,
peaches and papaya. The amount of papaya per year (2007) was 4 grams per capita.
Consequently, try to imagine how many consumers there are. It is true that we should add the
mixtures of dried fruits also containing exotic fruits.
Among nuts almonds have the first place: in different years the imported amounts fluctuate 150230 kg per capita. Hazel nuts were imported in the years 2002 and 2003 as much as almonds but
less at present. Greek nuts also belong to the nuts which are not more consumed. Nacrate`s
(Indian nuts) popularity is radically growing. People also buy coconuts, copra or the
product which is grated from the pieces of kernels and adding a good taste to food. Many people
like pistachio nuts, others like paranuts from Brazil and macadamia from Australia or chestnuts
rich in starch which can be tasteful when baked on coals.
Organic products
Among certain people the products grown without poisonous plant protection chemicals and
mineral fertilizers are in great demand. Organic production is constantly being discussed and a
development plan (the present plan until 2013) for promoting organic production has been
established.
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In 2006 the production of organic fruits and berries in Estonia was 327 tons, being 249 grams per
capita (see: Eve Ader “Rural Economy” May 2008). Only very few consumers can have it.
Quick and significant increase of production cannot be seen. According to the quoted source in
Estonia there are 7 producers of organic fruits and vegetables who produced 31.6 tons of
products. In some towns – Tallinn, Tartu, Kuressaare, Viljandi and Pärnu ecoshops have been
opened but the sales amounts are small, procurement is unstable and the quality is changeable. A
part of organic fruits is sold at markets without labels and consumers do not know where to look
for them. Ecological trade imports foreign organic goods because of the absence of domestic
produce.
When dealing with organic growing of fruits and berries, it is important to say that in 2007 the
main cultures were sea buckthorn with 547 ha (34 ha had passed the transition stage), apple trees
(206ha) and black currants (118 ha), raspberry (18 ha) and strawberry (34 ha) while the area of
strawberry had decreased by 8 % in comparison with the previous year.
The purchase of organic products is based on the belief that these products are healthy. In the
case of conventional products people are afraid of pesticide residues, the caused allergy and the
accumulating harm to the health especially in the case of chronic deceases.
Research has shown that garden products sold in Estonia contain the residues of chemicals used
for plant protection and weed control. In a part of analyzed samples the residues have exceeded
the norm. It is especially bad when there are several different residues at the same time which in
acting together strengthen the reciprocal effects (it is called synergy when the whole exceeds the
sum of parts).
Anne Luik writes in “Rural Economy”, December 2007, that in all the imported grapes and citrus
fruits pesticide residues have been detected during analysis; in the imported apples there have
been five residues of plant protection chemicals at the same time while in many cases the norm
was exceeded. Also, in Estonian products, for example, in strawberry plant protection chemical
residues have been found. The results of the mentioned research become known mainly after
having sold the fruits and berries. The facts are learnt afterwards. It is one of the reasons why the
people, who take care of their health and have a careful attitude to the goods on sale, buy
organically produced food. The organic product is much more expensive and this is why such
products are bought by wealthier people.
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Preservation conditions of fruits and berries in Estonia
Most of the storehouses used in Estonia were built in 1960-1980 and today the majority of them
have amortized. Also, significant improvements of storehouses have not been made primarily
because of the lack of resources of producers.
In the years 2004 and 2005 the investment support was provided to 11 applicants through the
Measure 3.1 for improving storage, and investments were made first of all for building and
improving storehouses for potatoes and vegetables. Sufficient investments have been made for
the short-term preservation of vegetables and fruits in retail and wholesale trade.
The estimated loss, caused by the bad conditions in apple storage (Figure 1), based on the
questionnaire carried out among apple growers is, depending on the crop of the year, 6-20% of
the stored apples. We must also add the short sales period of domestic apples (which the bigger
producers finish in December-January).
In the period of springtime the small preserved amounts of domestic fruits sold at the market are
of very low quality and therefore of low price and the quality of the apples on sale in shops falls
quickly. (Table 1). The main problem in a short-time preservation of berries in Estonia is the
quick cooling of products and the lack of corresponding coolers. The so-called “cold-chain” of
the products on the way to the consumer is unsatisfactory.
Table 1. Price dynamics of exported and local apples at Estonian markets (The Estonian
Statistics Board)
The price of apples at the market 2005-2008
Price EEK/kg
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At the same time, the producers` argument for making additional investments in the storage is
the consumer`s preference of high-quality domestic fruits and berries and the growing price
trend of apples from the period of harvest to the midsummer of the next year. Making new
investments into storehouses, for achieving the suitable temperature and humidity regime, is of
utmost importance from the point of view of the preservation of fruits and berries in Estonia.
This is why it is important to consider it a positive tendency that in Estonia in the years 20072008 the biggest fruit and berry growers made investments into purchasing cooling equipment
and additional insulation of the fruit storehouses.
Figure 1. Amortized fruit storehouses in Estonia in 2008.
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Processing of fruits and berries in the best-known enterprises in
Southern Estonia
1. BACULA AS, Viljandi road 1, Rõngu 61001, County of Tartumaa
produces in a wide choice jams, ointment, syrups for large-scale kitchens, industry and
confectioners, jams are safe for baking. Different berries (garden berries – red currant, black
currant, raspberry, strawberry, quince, aronia, forest berries – bilberry, cowberry, bramble,
mountain ash), apples and other fruits are bought.
The products:
DARK JAMS
LIGHT JAMS
( in 1.3kg, 3kg and 12 kg plastic buckets)
(in 1.3kg, 3 kg and 12kg plastic buckets)
Bilberry jam
Sea buckthorn jam
Raspberry-black currant jam
Orange marmalade
Cherry jam
Tropical jam
Cowberry jam for the black pudding
Apple-quince jam
Strawberry-red currant jam
Apple jam
Cranberry jam
Rhubarb jam-green
Cowberry jam
Rhubarb jam
Forest berry jam
Apple-black currant jam
Fruit jam
Garden berry jam
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JAMS SAFFE FOR BAKING
(in 1.3kg,3kg and 12kg plastic buckets)
SYRUPS
(bottled into 2 l and 5 l plastic bottles)
Cowberry jam with berries
Cherry syrup
Black currant jam with berries
Black currant syrup
Apple-raspberry jam, safe for backing
Raspberry-black currant syrup
Garden berry jam, safe for baking
Apple-red currant syrupˇ
2. AS SALVEST, Põllu 2, 50303 Tartu
has been producing preservatives since 1946 which has given the company noteworthy
experience and laid the strong foundation for guaranteeing high quality and stability of products.
Products:
Salads
Pumpkin salad (560g), Sweet maize (340g), Pickled red beet (550g),
Apple sauce (530g),
Cowberry salad (310g), Green peas (690g), Salad “GEMÜSE” (300g)
Salad “PIKNIK” (280g), Salad “TERVIST” (520g), Salad “TOOME” (520g)
Salad cucumber (520g), Salad carrot (530g)
Fruit nectar “Mahlakas”
Bottled into 750 ml glass bottles.
Apple squash with carrot and strawberry, Carrot-sea buckthorn mesh, Carrot- quince squash,
Carrot squash, Tomato squash with capsicum and carrot.
Children`s food Põnn
Packed mainly into 190 g glass jars.
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Vegetable-noodle meal with turkey meat, Vegetable – rice meal with chicken fillet, Vegetablebuckwheat meal with beef, Vegetable puree soup with chicken fillet, Apricot-cottage cheese
dessert, Apricot squash, Banana-peach squash, Delicate apple puree/soup, Oat porridge with
bilberry and raspberry, Potato-cauliflower puree, Pumpkin-broccoli meal with pork and rice,
Pumpkin-potato puree, Pumpkin squash, Vegetable ragout, Strawberry-cottage cheese dessert,
Maize pudding with banana and pear, Pumpkin puree with semolina, Bilberry squash, Four-corn
porridge raspberry, Apple puree with milk, Pear squash, Plum squash, Carrot squash, Carrot
squash 480ml, Carrot puree with liver, Puree soup with meat, Puree soup with meat and tomato,
Pumpkin puree with rice, Apple puree with rice, Rice pudding with pear and bilberry, Apple
puree with sugar, Full-corn porridge with banana, Raspberry-yogurt dessert, Peach-yogurt
dessert, Peach squash.
Products to the large-scale consumer
Home-made seljanka (3.0kg), Pumpkin salad (3.1kg), Delicate cucumber (4.2kg), Mulgikapsad
(Mulgi cabbage, 3.0kg), Apple jam (povidlo) (7.0kg), Pancake jam (3.1kg), Plum jam (povidlo)
(7.0kg), Cowberry salad (960g), Fried cabbage (3.0kg), Sour cabbage borschch with pork(3.0kg),
Seljanka (3.0kg), Pea soup with smoked meat (3.2kg), Hot tomato sauce (5.0kg), Sliced carrots
(3.0kg), Sliced sweet cucumber (2.9kg).
Meie Mari (our Mari`s) jams
Packed into 440g glass jars.
Raw cranberry jam (pasteurized), Cherry jam, Strawberry jam, Ham, Bramble jam, Bilberry jam,
Apple-sea buckthorn jam, Pancake jam, Plum jam, Cowberry jam (pasteurized), Raspberry-black
currant jam, Raspberry jam.
3. AS LARGO Sepa 1, Võhma 70603, County of Viljandimaa
Produces different juices from concentrated juices. The juice contains 100% of the fruit or berry,
no sugar is added. Does not contain preservatives.
Largo is the only company in Estonia which produces functional nectars or juice products with
added value enriched with vitamins, minerals and fibers..
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Juice drinks are even lighter than nectars. Consequently, the juice drinks occupy the third place
by their content. In the juice drinks the content of juice must be at least 10%. The remaining part
is water and different added substances. Juice drinks can be compared with the home-made juice
drink “morss”.
The products are packed into 1-litre tetrapacks
Orange juice, apple juice, tomato juice, pineapple juice, pineapple nectar + L-carnitine, plum
nectar+ inuline, peach nectar + vitamins, multivitamin nectar + vitamins, orange nectar + Ca,
grape nectar + Mg, cranberry drink, cowberry – black currant drink, cherry juice drink, tropical
drink with carrot juicy.
4.
AS
PÕLTSAMAA
FELIX Tallinn Road 1, Põltsamaa 48103. The roots of
production at Põltsamaa date back to 1920 when the predecessor company, then titled the
Estonian Consumer Cooperation Central Union (Eesti Tarvitajateühistute Keskühisus). At
Põltsamaa spirits, potato chips, coffee, starch, fruit and vegetable preserves and berry wines have
been produced in different times.
At present AS Põltsamaa Felix makes and markets such high-quality foods like juices and juice
drinks, preserved vegetables, ready-cooked food, sources, jams, bread spreads, wines, fish
products, desserts and several others.
The products containing berries and fruits are the following:
Jams in glass and plastic packaging
Põltsamaa Apple jam (460g glass jar)
The product contains the allergens:
Sulpher dioxide and sulphites SO2>10mg/kg
Põltsamaa Black currant jam (480g, glass jar)
Põltsamaa Strawberry jam (480g glass jar)
Põltsamaa Raspberry jam (480g glass jar)
Põltsamaa Apricot jam (500g glass jar)
Põltsamaa Cowberry jam (460 g glass jar)
Põltsamaa Pancake jam with strawberries (460g glass jar)
Põltsamaa Forest berry jam (480g glass jar)
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Põltsamaa Strawberry jam (425g plastic bottle)
The recipes of jams contain potassium sorbate as a preservative and calcium chloride as a
congealing agent.
Juices, nectars and juice drink are packed into 1-litre tetrapacks.
Põltsamaa apple drink
Põltsamaa apple juice
Põltsamaa orange juice
Põltsamaa multijuice
Põltsamaa tomato juice
Põltsamaa apple-peach nectar
Põltsamaa cranberry drink
Põltsamaa apple-orange-carrot nectar
Põltsamaa plum nectar drink
Põltsamaa bilberry-apple drink
Põltsamaa alcohol-free glögg
Põltsamaa apple-black currant nectar
Põltsamaa orange juice squash
Põltsamaa yellow plum nectar
Põltsamaa apple juice
Large drinks have been packed into 1-litre tetrapacks
Põltsamaa Large Orange Drink
Põltsamaa Large Multijuice Drink
Põltsamaa Black currant-apple-raspberry drink
Põltsamaa Large Apple drink
Straw drinks, 200 ml tetrapack
Põltsamaa apple drink
Põltsamaa orange-apple drink
Põltsamaa multijuice drink
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Smuties have been made from the concentrated juice, no sugar has been added, moderately
sweet taste comes from the fruit sugar which the berries and fruits themselves contain .
Packing: 300 ml plastic bottle
Pai smutie 5-fruit juice with carrot-orange taste
Pai smutie7-fruit juice with raspberry-black currant taste
Pai smutie 5 –vegetable juice
Pai smutie 5-fruit juice with orange-mango taste
Pai smutie 7-fruit juice with pear-banana taste
Pai smutie 5 fruit fruit juice with banana-strawberry taste
Drink Concentrates, solution 1:4, package 250 ml tetrapacking
Põltsamaa Jug drink of bilberry-apple
Põltsamaa Jug drink of apple
Põltsamaa Jug drink of cranberry
Põltsamaa Jug drink of black currant
Põltsamaa Jug drink of apple-raspberry
Wines 0.7-liter glass bottle
The product contains allergens: sulphur dioxide and sulphites SO2>10mg/kg
Põltsamaa Tõmmu (Dark)
Põltsamaa Tõmmu 1998
Põltsamaa Punane (Red)
Põltsamaa Kuldne (Golden)
Põltsamaa Lossivein 19 (Castle wine)
Põltsamaa Lossivein 28
Põltsamaa Kirsisuudlus (Cherry Kiss)
Põltsamaa Vaarikamusi (Raspberry kiss)
Põltsamaa Fest Classic
Põltsamaa Klassikaline Glögg (Classical Glögg)
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5. AS RÕNGU MAHL Tehase 4, Rõngu 6100, County of Tartumaa
In this enterprise concentrated juices from berries and fruits, juice drinks, salads and jams are
produced.
The main activity of the enterprise is to produce the Brix concentrates or juice concentrates. It
means making juice from berries and then steaming out water from the juice. Juice concentrates
are used for making concentrated juices, juice drinks and marmelades. The products of AS
Rõngu Mahl are used as a raw material by many producers of soft drinks, juices and alcohol.
Brix denotes the content of dry matter in the concentrate . Because of the specific features of the
raw material, concentrate is not made from sea buckthorn which is stored as a juice. As raw
material cranberry, cowberry, cherry, black currant, red currant, lime, sea buckthorn, strawberry,
raspberry, bilberry, apple, plum, peppermint, orange, choke-berry (Aronia), carrot are used.
Juice concentrates are packed into 0.350 l glass bottles, 2.0 l and 5.0 l plastic bottles and a 200
ml metal barrel with the solution of 1:10,1:9 and 1:6.
Jams are packed into 0.450 g, 1.3 kg, 3.2kg and 13 kg plastic packs.
Salad (cowberry, apple, carrot) is packed into 0.410 kg, 1.2 kg and 3.0 kg plastic buckets
In production citric acid is used as a regulator of acidity, potassium sorbate is a preservative,
calcium citrate as a congealing agent and pectine for condensing .
6. AS LINDA NEKTAR, Kobela village, Antsla rural municipality, 66405 County of
Võrumaa
AS Linda Nektar has specialized in the production of fermented drinks (non-condensed apple
and pear wine) for the drink producers. The products are used as a raw material for producing
cider and other alcoholic drinks. At present the production capacity of the enterprise is 10 million
litres of the raw material a year.
The aim of AS Linda Nektar is to supply drink producing industry with high-quality raw
material.
7. FIE (self-employed) Edgar Kolts – Taarapõllu farm, Varstu rural municipality,
Kangsti 66103, County of Võrumaa – is an entrepreneur who makes organic products. In
Estonian organic shops products are on sale, including juices, jams, purees, compotes made on
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the basis of natural juices, marinated meat and different dried products from garden and forest
crops (berry flour, dried berries, berry and apple chips). The farm was one of the first in Estonia
who used disseminating information about the home Kitchen and could officially enter the
market with home-made products.
The farm has organic production recognition and the products on sale have an organic product
label. No artificial congealing agents or preservatives are used, organic sugar is used for
sweetening the products. As raw material all the garden and forest berries, rhubarb, stone fruits
and apples are used.
Berries are grown on the farm`s fields or other organic farms and the forest areas recognized as
organic. The packing used is mainly made of glass. The goods produced on the Taarapõllu farm
are on sale in Tallinn and Tartu Department Stores, in ecological shops all over Estonia and also
elsewhere.
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Results of the survey carried out among Estonian fruit and berry
growers
General Data of the Company
Respondents were asked to indicate their company's main activity, fruit growing or berry
growing, in the questionnaires. All 13 respondents answered. Four companies is active in fruit
growing and three is active in berry growing. Six companies have marked both answers, berry
growing as well as and fruit growing.
All interviewees responded to the question "How long has the company been in business?"
One fruit and berry grower, a berry grower and two fruit growers stated their period of activity to
be 1 to 4 years. One fruit grower answered that the company has been operating for 5 to 8 years.
9 to 12 years have operated one fruit and berry grower and two berry growers. Three fruit and
berry growers and two fruit growers have been in business for over 13 years. Figure 1 shows the
distribution of respondents by the duration of business action.
1
1
3
1
1
2
2
1 to 4 years
fruit growers
2
5 to 8 years
9 to 12 years
berry growers
over 13 years
fruit and berry growers
Figure 1. Distribution of respondents by duration of business activities
All 13 interviewees answered the question "What is your form of business?" Respondents’
distribution by business format is in the form of Figure 2.
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1
3
3
1
1
1
3
1
Private limited
company
fruit growers
Limited
company
Self-employed
berry growers
Other
fruit and berry growers
Figure 2. Respondents' distribution by the question “What is your form of business?”
One of the fruit and berry growing enterprises, three companies of berry growers and three fruitgrowing farms operate as limited-liability companies. One of the fruit-growing enterprises
operates as joint-stock company. Three fruit- and berry growing, one berry growing and one fruit
growing company are self-employed entrepreneurs. One of the fruit and berry growing
respondents indicated the response option as "Other" and explained the form of business as
public equivalent body.
All interviewees answered to the question "What is the acreage (h) of some fruit or berry?" The
areas marked were almost equal with a fruit growing area of 177 hectares of orchards and berry
growing area of 168 ha.
Preservation of fruits and berries
Respondents were asked to answer the question, "Do you store the fruits/berries?" All
interviewees replied "yes". Fruits and berries are stored for two purposes: to be sold fresh in the
winter period or to be processed.
All interviewees answered to question "Where do you store the fruits/berries?" Three
interviewees responded that the fruits are stored in the apple storage facilities in Polli
Horticultural Research Centre. Eight times the company's own storage or fruit cellar was
mentioned. Six companies indicated freeze store facility at the Polli Horticultural Research
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Centre as place were they store fruits, two companies indicated that they preserve fruits in the
stores of AS Maag and AS Saarek, one interviewer mentioned the company's own freezer.
12 respondents answered to the question "How big is the storage space?" 7 respondents said that
the storage area is under 100m ², 4 respondents answered 101-400m ², and one interviewer said
801-1200m ².
All the interviewees answered to the question "Where you keep your products?” 50% of the
respondents keep the berries in boxes. 35% of the respondents keep fruits in containers. 15% of
respondents, that is three companies, answered "other". As an additional remark paper bags were
mentioned twice and plastic boxes once. Berries are stored in paper bags in a freeze storage.
Berries have previously been quick-frozen in crates and then packed in paper bags. Respondent
who added storing plastic boxes as a comment stores their products in a freezer at home.
All interviewees answered to the question "Do you sort the berries and fruits before storage?"
Nine companies answered “Yes” and four companies “No”.
All interviewees answered to the question "How large share of the crop accounts for I selection?"
Distribution of respondents to this question is reflected in Figure 3.
1
4
1
3
2
100-85%
fruit growers
84-70%
berry growers
69-55%
fruit and berry growers
Figure 3. Distribution of respondents by the question "How large share of the crop accounts for I
selection?"
Two berry growers and four fruit- and berry growers answered 100-85%. Three fruit and one
berry growers answered 84-70%, and one fruit grower marked 69-55%.
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12 interviewees answered to the question "What is the most important pre-harvest problem that
has affected the quality of harvest?" The biggest problem was the abnormal weather conditions
(frosts, drought, heavy rain), all 12 companies answered so. Major problems are defined also low
quality of fruits and berries caused molding and decay, due lack of sufficient plant protection (4
interviewees).
12 companies answered to the question "What is the most important problem in harvest time that
has affected the quality of your harvest?" The most important problems of during fruit and berry
harvesting are shown in Figure 4.
10
7
2
qualification of
employees
motivation of
employees
weather
Figure 4. The most important problems of harvesting.
The most important problem is the weather, ten interviewers answered so. Rainy weather does
not allow for timely harvest of crop, resulting in the over ripening of the crop. Another major
problem for businesses is workers’ qualifications, seven interviewers answered so. Two
respondents thought that motivation of employees is also an important problem when harvesting
the crop. The reason for the low motivation workers can be the low level of wages in the
agricultural sector.
All 13 interviewees answered to the question "What is the most important problem in postharvest storage issues, what affects the quality of the harvest?” Factors affecting the post-harvest
storage are shown in Figure 5. The most significant problem was the weather condition during
time of harvest which was mentioned by six companies. The weather (rain) is a major problem
which affects harvesting. Four companies mentioned variety characteristics (summer, autumn
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and winter varieties) and define precise picking time. Storage humidity answered one and
cooling system marked by three companies.
harvest time
6
4
variety characteristics
storage humidity
storage cooling system
1
3
Figure 5. To the question "What is the most important problem in harvest storage that affects the
quality of the harvest?"
If the cooling system of the storage is incomplete or is absent then it can greatly affect the quality
of preserving the harvest.
All interviewees answered to the question "How much of the preserved of the harvest gets fresh
to the consumer?" Seven companies noted that less than 50% of the harvest gets fresh to
consumers, i.e. part of the harvest goes to processing and some goes to composting. Two
companies answered that 69-50% and four companies that 89-90% of the harvest arrives fresh to
the consumer.
The questionnaire showed that less than 50% of the harvest will be composted. All interviewees
are of that opinion.
Nine companies responded that less than 50% of the harvest goes to processing. Three
companies noted 89-70% and one that 100-90% of the harvest goes to processing.
Processing of fruits and berries
12 interviewers answered to the question "Where did you get the information about Polli
Horticultural Research Centre experimental fruit and berry processing centre?” Mostly the
companies got the information about Polli Horticultural Research Centre experimental fruit and
berry processing unit on the internet, six companies had answered so. Four companies got the
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information from newspapers and magazines and two companies received information from
training sessions and seminars.
12 companies answered to the question "Where you have got the information on processing
from?" Mostly the companies have got the information from training sessions and seminars,
which was named by six companies. Four companies got the information from the internet. Two
companies received information from newspapers and magazines.
The companies got the information of processing options also from trainings and seminars, six
interviewees marked that option.
The information on where companies can market “ready-made food” was mainly found from the
internet and magazines.
The questions "Which processing options you have used in Polli Horticultural Research Centre
experimental fruit and berry processing unit?" and "Which processing options you are planning
to use in the future in Polli Horticultural Research Centre experimental fruit and berry processing
unit?" were answered by all interviewees. In the Polli Horticultural Research Centre
experimental fruit and berry processing unit mostly are used juice preparation (16%) and
preparation of puree (12.5%), pasteurization of juice or puree (25%), and bottling and corking by
23.2% of the respondents. Seed oil pressing and drying of fruits and berries are not used yet. In
addition, the processes still planned use in the future are seed oil pressing (9.2%), fruit crushing
(10.7%), fruit and berry drying (9.2%), product packaging and labeling (9.2%).
The question "You are planning acquire some processing equipment in the future?" was
answered by five interviewees. Two of them wished buy a fruit crusher and juice press for their
company. One company wants to buy a fruit and berry dryer and two companies are planning to
buy a fruit and berry juice press and a juice pasteurizator.
The question "What you think, which processing options of fruits and berries should also be at
the Polli Horticultural Research Centre experimental fruit and berry processing unit ?" was
answered by all 13 interviewees. The following processes were suggested:
• cooking fruit and berry jam;
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• facilities for sea buckthorn oil analysis in experimental fruit and berry processing centre unit
laboratory;
• filtering juice products;
• fruit and berry drying;
• vacuum packing;
• juice clarification;
• packing of frozen fruit and berries;
• preparation of stewed fruit and berries.
All 13 interviewees answered to the question “Are companies satisfied with the Polli
Horticultural Research experimental fruit and berry processing unit processing services or not?”
Mostly companies are satisfied with extracting juice, puree or juice pasteurization and pureeing,
which were mentioned by eight companies. Six companies are satisfied with the bottling and
corking and five companies are satisfied with fruit and berry crushing. One company was
satisfied with carbonating beverages. Four of the respondents are dissatisfied with the bottling
and corking. Two companies justified their answer as a problem of low quality caps and tare.
Two companies are dissatisfied with the juice pressing and one company is dissatisfied with fruit
and berry crushing.
The question "Has the test processing in Polli Horticultural Research Center helped the company
create a new product or a new group of products?" was answered by 12 interviewees. Ten
companies have received assistance from the Polli Horticultural Research Centre for creating the
product or product group, which is a very positive result.
Five interviewees answered the question "For the creation of which product or product group did
you get help for from the Polli Horticultural Research Centre experimental fruit and berry
processing unit?”
These are:
• preparation of pasteurized sea buckthorn juice;
• preparation of berry purée ;
• preparation of fruit juice;
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• preparation of berry flour;
• preparation of carbonated juice products;
• fruit crushing.
Nine companies have got new ideas and four companies have not got any ideas from the Polli
Horticultural Research Centre experimental fruit and berry processing unit by test processing.
To the question "What kind of ideas you have got from the Polli Horticultural Research Centre
experimental fruit and berry processing unit ?” companies answered the following:
• preparation of carbonated juice drink;
• crushed fruit and berries;
• various packaging solutions for various products;
• products from berry mixture;
• pasteurized fruit and berry juice products;
• preparation of fruit and berry purée;
• preparation of different fresh jams.
The question "What do you think, is it necessary for the Polli Horticultural Research Centre
experimental fruit and berry processing unit to provide advice to entrepreneurs from processing
to marketing ready-made food?" answered by all interviewees. Nine companies thought that the
Polli Horticultural Research Centre for Product Development Center should give advice to
companies and four interviewers thought that advice is not necessary. Entrepreneurs who
answered “Yes” explained their response as follows:
• small-scale producers should join with others companies, then they can market products
together;
• for small-scale producers it is very expensive to deal with product development on their own;
• any advice is welcome.
Entrepreneurs, who replied in negative, explained their answer as follows:
• each company should deal with marketing on their own;
• the aim of the Polli Horticultural Research Centre for experimental fruit and berry processing
unit is foremost contributing to the development of the product.
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The question "What kind of advice you needed from the Polli Horticultural Research Centre
experimental fruit and berry processing unit?" was answered by all the interviewees. Nine
companies mentioned choice of treatment, two companies needed advice with package selection
and one company needed help shaping the product label.
Marketing of products.
12 interviewers answered to the question "How do you assess the consumer demand in the
market for your product / product group?” Assessment of consumer demand is given in Figure
6.
very good
1
rather good
5
cannot say
2
rather bad
very bad
3
1
Figure 6. Assessment of consumer demand for the product / product group.
Consumer demand in terms of its product / product group was evaluated very high by one
company, five companies replied “Rather good”. Two companies answered “Cannot say”. Three
companies marked “Rather bad” and very bad assessment came from one company.
The questionnaire revealed that three companies are very active in the development of new
products. Four companies responded that they are not actively engaged in the development of
new products.
Entrepreneurs believe that the biggest hindering factors in the development of new product /
product group are the following reasons:
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• the absence or scarcity of the opportunity to use a test kitchen;
• scarcity of raw materials;
• finding suitable packaging for products;
• uncertainty about the storage time of the product and its conditions;
• unavailability of financial resources, time and lack of human resources.
38%
34,5%
17,2%
6,9%
ns
ns
tit
ut
io
en
ts
ed
uc
at
io
na
li
ca
te
rin
g
es
ta
bl
is
hm
ar
ie
rn
ed
i
in
te
re
ct
sa
l
di
s
3,4%
st
or
es
40%
35%
30%
25%
20%
15%
10%
5%
0%
es
% vastanutest
What are the main marketing channels of the product / product group are shown in Figure 7.
Figure 7. Product / product group main market channels,%
12 interviewees answered to that question. The companies who marketing their product /product
group by direct sales is 38% (including exhibitions, fairs), and 34.5% of companies distribute
through stores. 17.2% of the companies distribute its products through usage of intermediary
companies. Products are also distributed to catering establishments (restaurants, cafes), and
educational institutions (schools, kindergartens).
In marketing the biggest problem for six companies selling fruit and berry products is the high
price. Five companies noted that consumer interest for products is low and two companies noted
the abundance of similar products. Three companies thought that a problem with marketing is
also the novelty products, small consignments and cheap imported fruit and berry products.
The question “Do you wish to join with other companies in marketing the products?” was
answered by all the interviewees. 11 companies would like to collaborate with other companies.
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They justified their answer by explaining that then they can offer larger quantities of fruit and
berry products. It is also logistically expensive. Two companies thought that collaborating is not
necessary. They justified their response with the fact that Estonia is too small, volumes is small
and different for joint marketing and entrepreneurs should market on their own.
12 interviewees answered to the question what product quality evaluation services the companies
wish to get from the Polli Horticultural Research Centre experimental fruit and berry processing
unit laboratory,. Their answer was that they need food microbiology evaluation for products,
nutrition analysis and storing time tests. One entrepreneur thought that the product testing takes
very long and because of that it is too early to talk about a full analysis.
The price level of using the Polli Horticultural Research Centre experimental fruit and berry
processing unit for experimental treatment is too high, thought six entrepreneurs. Seven
entrepreneurs believe that the price is average.
Seven entrepreneurs thought that the test production should be funded by the state. Entrepreneurs
who noted that state funding is necessary explained their answers by the following:
• the risk is too high when coming out to market with a new product;
• it is a costly process.
2. Results of the interview with the fruit growers from Latvia.
2.1 General Data of the Company
The seven companies in Latvia, who were interviewed, involved in fruit growing business.
To the question "How long has the company been in business?". Two companies have been in
business for 6 years, three companies were nearly ten years and the two companies have been in
business for over 13 years.
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To the question "What is your form of business?" the answers were as follows: three companies
operating as a joint-stock company and four companies operate as private limited liability
company.
To the question "How much acreage (ha) is under some fruit?" the answers were divided as
follows: two companies have fruit acreage of three ha, two companies have 12 ha, three
companies have 20-25 ha.
2.2 Fruit storage
All seven interviewees preserve their fruits.
The question "Where do you store the fruits?” was answered as follows: six companies preserve
fruits in boxes and one company preserves fruit/berries in wooden crates.
To the question "Do you sort the fruit before preserving?" all seven interviewers answered
“Yes”.
The question "How large share of the crop accounts for I selection?" was answered by all the
seven interviewees. Three companies answered that the first choice is 84-70%, three companies
69-55% and one company noted 54-40%.
The most important problem during harvesting in Latvia is the weather, which affects the quality
of the fruits. Harvest quality depends on the qualification of the workers.
To the question "Where companies preserve the fruit?" the three companies replied that they
preserve the fruit in a renovated fruit storage. Two companies have a rental space and two
companies preserve fruits in a cellar.
The most important problem in preservation for fruit growers is the humidity level and the
temperature of the storage space. All the seven respondents thought so.
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To the question "How big are the harvest losses (for composting)?" five companies said that 20%
goes for composting and two companies said 10%.
2.3 Fruit Processing
Six fruit growers sell their fruit untreated.
One entrepreneur, who processes a small part of the harvest, answered to the question "Have you
bought or are you planning to buy some processing equipment in the future?" that he has bought
a juice line. Other six companies do not plan on buying any processing equipment.
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