Fresh Berries in Germany

Practical market insights into your product Fresh berries in Germany

German demand for fresh berries has grown by more than 10 % annually in the past five years. Fresh berries are increasingly offered as a convenient and healthy snack, seducing shoppers into buying them.

Although German producers are expanding their production, demand is much higher than German production. Especially during the German winter, imports from developing countries are filling in the gap.

TABLE OF CONTENTS

■■ Product definition...... 2

■■ Product specification...... 2

■■ What is the demand for fresh berries in Germany?...... 6

■■ What trends offer opportunities on the German market for fresh berries?...... 9

■■ What requirements should fresh berries comply with to be allowed on the German market?...... 10

■■ Requirements you must meet...... 11

■■ Common requirements...... 13

■■ Niche markets: organic and fair trade requirements...... 14

■■ What competition do I face on the German fresh berry market...... 15

■■ What do the trade channels and interesting market segments look like in Germany for fresh berries?...... 16

■■ What are the market prices for fresh berries?...... 18

■■ Useful sources...... 19

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PRODUCT DEFINITION

This Product Factsheet covers the market for fresh berries in Germany, with a focus on three products (see Table 1). Most of the information is not specific to the three selected products and applies to other berries as well.

TABLE 1: PRODUCT SELECTION

Trade name Raspberries Blackberries Blueberries Pictures from FAO Ecocrop

Botanical name Rubus idaeus L. Rubus sect. Rubus Vaccinium corymbosum L. (shown in picture above) Vaccinium formosum Andrews Vaccinium angustifolium Aiton Vaccinium virgatum Aiton Common names Himbeeren Brombeeren Heidelbeeren in German HS Code 08102010 08102090 (Fresh black- 08104050 (Fresh fruit of (Fresh raspberries) berries, mulberries and species Vaccinium macrocarpum loganberries) and Vaccinium corymbosum)

Raspberries, blackberries and blueberries grow on perennial bushes. They are native to temperate climate zones across the world including Germany. Most commercial production takes place in Europe, North America and South America. The berries are rather small and have soft skins.

PRODUCT SPECIFICATION

This section provides information on legal requirements and trade standards regarding quality, packaging and labelling for fresh berries in Germany. For specific information on quality requirements it is always advisable to contact your buyer.

QUALITY General requirements The European Union has set General Marketing Standards for Fruit & Vegetables (GMS). Compliance with these GMS is obligatory according to Commission Implementing Regulation (EU) No. 543/2011. In addition to the GMS, German buyers commonly require that your berries comply with the quality standard for berries of the United Nations Economic Commission for Europe (UNECE).

Minimum requirements Both the GMS and UNECE standards require that your berries are: ■■ intact ■■ sound, produce affected by rotting or deterioration such as to make it unfit for consumption is excluded ■■ clean, practically free of any visible foreign matter ■■ practically free from pests ■■ practically free from damage caused by pests ■■ fresh in appearance ■■ free of abnormal external moisture ■■ free of any foreign smell and/or taste.

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The development and condition of the berries must be such as to enable them to: ■■ withstand transportation and handling ■■ arrive in satisfactory condition at the place of destination.

Berries must be sufficiently developed and display satisfactory ripeness according to the species but must not be overripe. The development and state of maturity of the products must be such as to enable them to continue their ripening process and to reach a satisfactory degree of ripeness.

There are no market standards concerning size. However, buyers will have their own size requirements.

In addition to the above legal requirements, the UNECE standard classifies berries into in three classes: “Extra” class, Class I and Class II.

Extra class ■■ Berries in the Extra class must be of superior quality. They must be characteristic of the variety or in the case of wild berries characteristic of the species concerned. Differentiation of shape, colour, taste and other characteristics of the respective variety or species is not accepted. ■■ Blueberries must be practically free of agglomerated berries and must be practically covered with bloom, according to the varietal characteristics. ■■ Berry fruits must be free from defects, with the exception of very slight superficial defects (for example a slightly different shape), provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package. ■■ A total tolerance of 5 %, by number or weight, of berries not satisfying the requirements of the class but meeting those of Class I is allowed. Within this tolerance not more than 0.5 % in total may consist of produce satisfying the requirements of Class II quality.

Class I ■■ Berries in this class must be of good quality. They must be characteristic of the variety or in the case of wild berries characteristic of the species concerned. Differentiation of shape, colour, taste and other characteristics of the respective variety or species is not accepted. ■■ Blueberries must be practically free of agglomerated berries. Blueberries must be practically covered with bloom, according to the varietal characteristics. ■■ The following slight defects, however, may be allowed, provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package: very slight leakage of juice and very slight bruising. ■■ A total tolerance of 10 %, by number or weight, of berries not satisfying the requirements of the class but meeting those of Class II is allowed. Within this tolerance not more than 2 % in total may consist of produce satisfying neither the requirements of Class II quality nor the minimum requirements as listed above, or of produce affected by decay.

Class II ■■ This class includes berry fruits that do not qualify for inclusion in the higher classes but satisfy the minimum requirements specified above. ■■ Currant panicles may be less evenly spaced. ■■ The following defects may be allowed, provided the berries retain their essential characteristics as regards the quality, the keeping quality and presentation: slight leakage of juice, slight bruising. ■■ A total tolerance of 10 %, by number or weight, of berries satisfying neither the requirements of the class nor the minimum requirements is permitted in each lot. Within this tolerance not more than 4 % in total may consist of produce affected by decay.

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The GMS has a somewhat lower tolerance for berries affected by decay than the UNECE standard for Class II berries. A tolerance of 10 % by number or weight of product not satisfying the minimum quality requirements shall be permitted in each lot. Within this tolerance, not more than 2 % in total may consist of produce affected by decay.

The UNECE standard also sets provisions for presentation. The contents of each package must be uniform and contain only berries of the same origin, variety or, in the case of wild berry fruits, species, and quality. Berries in Classes “Extra” and I must be practically uniform in ripeness. The visible part of the contents of the package must be representative of the entire contents

LABELLING The labelling requirements for bulk exports of fresh berries to Germany are also set in the Euro- pean Union’s General Marketing Standard.

All labels for fresh berries subject to European Union’s marketing standards must contain the following information: ■■ nature of produce and name of variety (for example: raspberries of Rubus idaeus L.) ■■ country of origin ■■ commercial specifications (for example: Class I, UNECE standard for fresh berries); mention “wild” when the berries were wild-collected.

If the produce is sold pre-packaged, labelling must comply with the rules in EU Regulation No. 1169/2011 on the provision of food information to consumers. The following additional information has to be stated on the product label of pre-packaged berries: ■■ name and address of packer including the country of origin ■■ weight or number of items in the package ■■ lot number ■■ size.

If you package products for the consumer market, you will also need to put a label in German on your product. However, if you work with suppliers or retailers, the buyer usually provides these consumer labels and you only need to put them on your products.

In addition, any certification logo, or retailer logo in the case of private-label products, should be displayed on the label.

Organic: In order for fresh berries to be marketed as certified as organic in Germany, they must contain the European Union’s organic logo. To include the organic logo, the product has to comply with the European Union regulation for organic farming and marketing. The regulation is explained more extensively in the section “What are the niche requirements?” of this document. In addition to the European Union logo, Germany has its own organic logo, the Biosiegel. This logo is less commonly used than the European organic logo, but may be demanded by some retailers. Discuss these options with your buyers.

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PACKAGING The purpose of packaging is twofold: the boxes protect the berries from mechanical damage and rotting and represent the company’s image. The UNECE standard for berries specifies packaging requirements: ■■ Berries must be packed in such a way as to protect the produce properly. ■■ The materials used inside the package must be clean and of a quality such as to avoid cau- sing any external or internal damage to the produce. The use of materials, particularly of paper or stamps bearing trade specifications, is allowed, provided the printing or labelling has been done with non-toxic ink or glue. ■■ Packages must be free of all foreign matter, except for incidental leaves and twigs for wild berries.

The Codex Alimentarius sets international food standards, guidelines and codes of practice to improve safety, quality and fairness of international food trade. The Codex Alimentarius has developed a Code of Practice for packaging and transport of fresh fruit and vegetables (CAC/ RCP 44-1995). In this Code of Practice you can find out how to comply with above packaging requirements. It also provides good practices on the use of transport equipment, loading and pre-cooling.

In addition to compliance with above UNECE standards, you need to check with your German buyers if they have their own packaging specifications. Berries are often packaged in plastic boxes which are put in cardboard boxes. The size of (airfreight) pallets in the country of origin determines the size of the boxes. In addition, the boxes must be able to withstand the weight of other boxes stacked on top of them.

Special legislation applies to wood packaging materials (pallets) in terms of exporting to the EU. Please refer to the overview of EU rules on wood packaging material as provided by the Euro- pean Commission.

EXAMPLE OF PACKAGING In Germany, recyclability of packaging materials is another important requirement. The Packaging and Waste Avoidance Law/the Green Dot (Verordnung über die Vermeidung und Verwertung von Verpackungsabfällen, or VerpackV) establishes recyclability requirements for packaging material. The German legislation is based on Directive 94/62/EC of the European Union. The Green Dot symbol is found on the packaging material of virtually all retail products in Germany.

The use of the Green Dot is not a legal requirement for all products but, in practice, it will be very difficult to market a product in Germany without it. Typically, the producer or the importer pays a fee and enters into a licensing agreement with Der Grüne Punkt – Duales System Deutschland, and provides the licensing company with necessary product information in order to use the Source: FreshFruitPortal.com Green Dot (GAIN REPORT, 2015).

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WHAT IS THE DEMAND FOR FRESH BERRIES IN GERMANY?

General information and figures about production and trade developments in the European market for fresh fruit and vegetables are provided in the CBI Trade Statistics for Fresh Fruit and Vegetables on the CBI Market Intelligence Platform. This section provides you with more detailed statistics of fresh berries trade and consumption in Germany.

Low availability of fresh berries in Germany during the winter season (November – March) offers most opportunities for berry producers in developing countries. Outside this winter season, European producers dominate supplies of fresh berries to Germany. However, during the winter, competition from European sources is limited.

Growing demand for fresh berries in both winter and summer is partly being met by European production and partly by additional imports. The imports mostly cover the extra demand during the winter.

CONSUMPTION Germany offers many opportunities for berry producers as this is the largest consumer of fresh berries in Europe with a fast growth in consumption. German consumption of fresh raspberries, blueberries and blackberries is estimated at around 50 thousand tonnes in 2015. Between 2011 and 2015, consumption increased by more than 10 % annually. The strong growth of consumption was mainly driven by the health trend. See the next section on trends for a detailed analysis of this trend.

Dutch bank Rabobank expects European consumption of fresh raspberries, blueberries and raspberries to increase by 7 % annually in the next 5 years. As one of the leading berry markets in Europe, German consumption is one of the drivers of this growth.

FIGURE 1: GERMAN APPARENT CONSUMPTION OF FRESH BERRIES, IN TONNES

Source: Eurostat and FAOstat, calculations by ProFound (based on production, imports and exports)

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PRODUCTION Germany itself is a force of competition for fresh berry producers. The country is one of the leading producers of raspberries, blueberries and blackberries in Europe with a total production of around 20 thousand tonnes in 2013.

FIGURE 2: GERMAN PRODUCTION OF FRESH BERRIES, IN TONNES

Source: FAOstat, 2016

In 2015, production of blueberries had increased to 12 thousand tonnes, while production of raspberries had decreased to 3.9 thousand tonnes. Most of the production is open field and due to the climate in Germany, production is limited to the summer (June – October). Only raspberries are largely produced under covers.

In 2015, 61 % of total German production of berries and currants was sold as fresh berries for direct consumption. The other berries were sold to industrial users for use in food or beverage products or preservation.

Germany also has organic production of berries on an area of almost 2 thousand hectares. Between 2008 and 2013, producers had doubled the organic area for berries production.

IMPORTS Particularly opportunities for raspberry producers are increasing. German imports of these berries have increased rapidly in the period 2011-2015 to meet the growing demand. Imports of blueberries and blackberries are more or less stable. German producers are capable of meeting most of the growth in demand for these berries.

FIGURE 3: GERMAN IMPORTS OF FRESH BERRIES, IN TONNES

Source: Eurostat, 2016

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FIGURE 4: GERMANY’S MAIN SUPPLIERS OF FRESH BERRIES, IN TONNES

Source: Eurostat, 2016

Germany sources most berries in Europe. As such, European countries will be your most important source of competition. Especially Poland and Spain have strong berry sectors. In 2016, Polish production of raspberries was estimated to reach 120 thousand tonnes. Spain is rapidly expanding its (organic) production area and all leading European berry sectors are investing in developing better varieties, extension of seasons and intensive cooperation with traders.

The Netherlands is a major re-exporter of berries (particularly blueberries, cranberries and raspberries) to Germany. Berry production in the Netherlands is still small, but growing. Between 2011 and 2014, the area for raspberry production increased from around 115 to 145 hectares.

Serbia and Morocco are among the emerging suppliers of berries to Germany. Both countries benefit from relatively low labour costs, a suitable climate for long production seasons and low transport costs. They are relatively close to Germany compared to other suppliers such as Chile and South Africa.

German imports from Tunisia (5.6 tonnes of raspberries) and Peru (33 tonnes of blueberries and cranberries plus 1.4 tonnes of raspberries) are very small.

EXPORTS

FIGURE 5: EXPORTS OF FRESH BERRIES FROM GERMANY, IN TONNES

Source: Eurostat, 2016

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Most of the German production of berries is for domestic consumption. However, some of the imports are re-exported. Several large traders in Germany supply end-users in both Germany and other countries. Major destinations for Germany’s exports include Austria, Italy and the Neth- erlands.

TIPS: Take advantage of low availability of berries in Europe during the off-season (November – ■ March). The off-season offers a window of opportunity to new suppliers. German buyers will be looking for alternative sources and you can use this time to get a foothold in the market. In your promotion materials, including your website, offer a harvest calendar. In this calendar, ■ you can show the availability of your berries over the year, including the German off-season. Check online news services such as Freshplaza about developments in the production ■ and consumption of fresh berries. Use this information to anticipate competition and price developments.

WHAT TRENDS OFFER OPPORTUNITIES ON THE GERMAN MARKET FOR FRESH BERRIES?

More off-season demand: Many German consumers increasingly expect fresh berries to be available year-round. They are also stimulated by major retailers to purchase berries at any time during the year. Retailers source from suppliers with production in different parts of the world to make fresh berries available during all seasons.

At the same time, a growing group of German consumers are becoming more conscious about seasonal fruit. This group wants to stay close to nature and accepts that some fruits are only available in a certain season. According to Mintel, 75 % of German consumers prefer “regional products” if they have the choice. Retailers respond to this by emphasising and promoting locally-produced berries from Germany and surrounding countries during the German harvest season. These berries then replace import berries from other parts of the world. The retailers highlight the freshness and environmental sustainability of locally produced berries.

Convenience fruit: Berries are an excellent option as snack fruit – they can be easily packed in individual sizes or boxes, and they are increasingly sold similarly to freshly cut fruit mixes. These snack packages are especially popular in Germany and other Northwest European countries. Many German consumers can afford to purchase these relatively expensive products.

TIPS: Find a specialised importer and focus on delivering quality off-season berries. ■ Try to find partners who also show interest in sourcing from you during other seasons. Make sure that supply chain logistics and transport processes do not affect product taste ■ in any significant way. Product taste is of crucial importance. Offer your berries in packages of different sizes including small snack-sized packages. ■

Attention to health food: German consumers are buying more berries because they perceive them as healthy foods. The growing concerns of consumers about the health aspects of food stimulate a search for more healthy products. The perceived health benefits of berries are related to the high concentrations of antioxidants and vitamins. Various scientific studies have indicated that antioxidants help to prevent mostly age-related health issues. The widespread promotion of these health benefits has particularly stimulated growth in sales of fresh blueberries and raspberries, leading to more sales opportunities for producers of these berries.

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Growing market for organic berries: In 2014, the value of the organic market in Germany increased by 4.8 %. In that same year the organic market segment accounted for 6.7 % of retail sales of fruit. Globally, Germany is the second largest market for organic products (7.9 billion euros in 2014), behind the United States.

A growing group of German consumers prefers berries from organic farming over berries from conventional farming. The concern about the potentially negative impact of the use of chemicals in agriculture on the environment and on the own health is driving sales of organic products. For example, they are worried that pesticide residues will affect their health. These concerns have also stimulated interest in organic production of berries. Organic berries are a growing niche and sold by both specialised and main retailers.

TIPS: Promote your berries as healthy products with high concentrations of anti-oxidants and ■ vitamins. Find out if your existing buyers are interested in paying a premium for organic berries. ■ Then research the technical feasibility of organic production of berries in your area. Contact a certifier to support you with this research and to evaluate the costs. Then determine if certification is worth the investment. Read more about organic farming on the European Union’s website. ■

Growing interest in sustainable fruit: Consumption of fresh fruit in Germany is developing towards a more sustainable approach to production. Environmental and social issues are becoming more and more important. Therefore, you can distinguish your products and company on the European market if you show that you offer sustainable fruit. Social and environmental certification schemes include actions to strongly reduce and register the use of pesticides, take action on the safety of employees and/or even include price guarantees for producers.

TIPS: Use the Farm Sustainability Assessment tool to see where you currently are in terms of ■ sustainability. See the section on buyer requirements for niche markets in this document for more ■ information on certification schemes. For a full overview of certification schemes in the berries sector you can consult ITC Standards ■ Map. Select “Cranberries, raspberries etc.” from the “Product/service” drop-down menu.

WHAT REQUIREMENTS SHOULD FRESH BERRIES COMPLY WITH TO BE ALLOWED ON THE GERMAN MARKET?

Buyer requirements can be divided into (1) requirements you must meet, (2) common requirements and (3) niche market requirements. Requirements you must meet in order to enter the market include legal requirements and GLOBALG.A.P. Common requirements are those requirements that you need to comply with in order to keep up with the market. Compliance with niche market requirements provides access to specific segments.

For general information also see our buyer requirements for fresh fruit and vegetables.

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REQUIREMENTS YOU MUST MEET

GLOBALG.A.P. CERTIFICATION The most commonly requested food safety certification scheme, essential for exporting fresh berries to the European Union, and Germany specifically, is GLOBALG.A.P. Even though GLOBALG.A.P. is not a legislative requirement, it is requested by practically all retailers in Germany.

GLOBALG.A.P. is a pre-farm-gate standard which covers the whole agricultural production process from farm inputs such as seedling until the product leaves the farm, i.e. only primary in-field processing is covered. So as to cover further steps in the value chain, GLOBALG.A.P. is often supplemented by food safety management systems which relate to post-harvest handling, packaging and other processes outside of the farm.

Implementing HACCP principles for food safety management is a legal requirement for food processors supplying to Germany. This system is thus additional to GLOBALG.A.P., which only covers processing steps until products leave the farm. HACCP is specified in both the Regulation on food hygiene (EC) 852/2004 and in the Codex Alimentarius standard on General principles of Food Hygiene.

German retailers will often ask for a more advanced food safety management system than HACCP such as International Featured Standards (IFS): Food. This is a quality and safety standard published by the union of German supermarket chains HDE (Hauptverband des Deutschen Einzelhandels).

An alternative requirement often used by German retailers is the GLOBALG.A.P.-equivalent standard QS. Whereas QS is equivalent to GLOBALG.A.P. at the farm level (QS-GAP), it also covers further food safety steps along the value chain, from the farm gate to wholesalers and retailers. As such, QS is a 3-tier system which involves every stakeholder in the value chain. A combined certification for both QS and GLOBALG.A.P. at the same time is possible at the producer level.

TIPS: Check which food safety management systems are most commonly requested by your ■ (potential) buyers. Expect GLOBALG.A.P. to be one of them. Read more on the different Food Safety Management Systems at the Standards Map. ■ As food safety is a major issue, work proactively with buyers to improve food safety and ■ be transparent and up-to-date with buyer requirements and regulations.

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PESTICIDES Compliance with legislation for pesticide residues are one of the crucial issues for berries suppliers to Germany. To avoid health and environmental damage, the European Union has set maximum residue levels (MRLs) for pesticides in and on food products. Products containing more pesticides than allowed will be withdrawn from the EU market. For example, in 2015, a consignment of strawberries for the German market was destroyed at the border, because the residue of propamocarb (0.029 mg/kg) exceeded the legal limit (0.01 mg/kg). Note that buyers in Germany commonly set MRLs which are even stricter than the MRLs laid down in EU legislation. Most supermarkets also have their own Codes of Practice regarding pesticide use. Your buyer (the importer) will then also impose them on your products.

TIPS: To find out the MRLs that are relevant for berries, use the EU MRL database in which all ■ harmonised MRLs can be found. You can search on your product or pesticide used and the database shows the list of the MRLs associated to your product or pesticide. Read more about MRLs in the EU Export Helpdesk. Reduce the amount of pesticides by applying integrated pest management (IPM) in produc- ■ tion. IPM is an agricultural pest control strategy that includes growing practices and chemical management. Check with your buyers if they have additional requirements on MRLs and pesticide use. ■

PLANT HEALTH Berries exported to Germany must comply with the European Union legislation on plant health. The European Union has laid down phytosanitary requirements to prevent introduction and spread of organisms harmful to plants and plant products in Europe (for example insects, viruses, bacteria, fungi, nematodes). The requirements mainly imply that: ■■ Your berries are accompanied by a plant-health (phytosanitary) certificate issued by the competent authority in your country. A model phytosanitary certificate can be found in Annex VII of the Plant Health Directive (2000/29/EC). ■■ Your berries must undergo customs and phytosanitary inspections at the border of the Euro- pean Union. ■■ Your supplies of berries must be announced before arrival to the customs office at the border of the European Union.

TIPS: Check with the relevant National Plant Protection Organisation (NPPO) in your country what ■ the requirements are for your product. Click here for a list of NPPOs. Read more about plant health in the EU Export Helpdesk or on the website of the ■ German Institute for National and International Plant Health.

CONTAMINANTS Contaminants are substances that have not been intentionally added to food, but which may be present as a result of the various stages of its production, packaging, transport or warehousing. To avoid negative impact on the quality of food and risks to human health, the European Union has set limits for several contaminants. ■■ Heavy metals (see section 3 of Annex of Regulation (EC) No 1881/2006): – The maximum limit of lead allowed for berries is 0.20 mg/kg wet weight. – The maximum limit of cadmium allowed for berries is 0.050 mg/kg wet weight. ■■ Microbiological: food safety authorities can withdraw imported berries from the market or prevent them from entering the European Union when Salmonella, E. coli or other microbes are found (Regulation (EC) No 2073/2005). ■■ Foreign matter: Contamination by foreign matter such as excessive filth, soil or other materials is a threat for the quality of fresh berries.

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TIPS: Find the relevant contaminant levels in the annex of Regulation (EC) 1881/2006. ■ All contaminants are presented and maximum levels are provided per product or groups of products. Find out more about prevention and reduction of lead contamination in the Code of Practice ■ published by the Codex Alimentarius. Check the European Commission’s factsheet on food contaminants “Managing food contami- ■ nants: how the EU ensures that our food is safe” and read more about contaminants in the EU Export Helpdesk.

CONTROL OF FOOD IMPORTED TO GERMANY To ensure food safety and avoid environmental damage, the European Union (including Germany) has restricted the use of certain chemicals in several regulations and directives. Your products will be subjected to official controls. These controls are carried out to ensure that all foods marketed in the German market are safe (that is, in compliance with the requirements applicable to them). There are three types of checks: ■■ Documentary checks ■■ Identity checks ■■ Physical checks

In the event of repeated non-compliance of specific products originating from particular countries, the European Union can decide that controls will be carried out on an increased level or lay down emergency measures. Controls can be carried out at all stages of import and marketing in the European Union. However, most checks are done at the points of entry in Germany.

TIPS: Familiarise yourself with the procedures before planning your exports to Germany. Failure to ■ follow the right procedures could cause decrease and delay of orders, increase costs and result in actions by German enforcement authorities. Make sure that the accompanying documents correspond (from A-Z!) with the food products ■ contained in the consignment. Read more about health control in the EU Export Helpdesk. ■ Consult the EU Export Helpdesk for a full list of requirements for berries, selecting the product ■ code for berries: 08102010 (raspberries)/08102090 (blackberries)/08104050 (blueberries).

COMMON REQUIREMENTS

Freshness of berries is a major requirement of German buyers and is also included in the General Marketing Standards for Fruit & Vegetables (GMS). See the section on product specifications above for more information on GMS. Freshness is crucial, because berries are perishable and freshness on arrival gives the buyer more time to sell them. Keeping berries fresh requires a cold chain. Cold chains are designed to keep ambient temperatures low from the moment of harvesting to the moment that the berries arrive at the customer.

As a producer and exporter, your main responsibility in cold chain management is to keep time between harvesting and pre-cooling to a minimum. Ideally, berries are cooled within one hour after harvesting. After the cold storage, responsibility for cold chain management depends on your arrangements. You can choose for example between transport with your own trucks or a forwarding agent to pick up the berries. You can also agree with your buyer on delivery terms (Incoterms) that put responsibility for arrangement of transport with the buyer. If you take more responsibility, you can also take more control over cold chain management. For example, in your contract with the freight forwarder, you can make demands regarding the service of the forwarder, including proper cold chain management.

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TIPS: Cool your berries preferably within an hour after harvest. ■ Assess capacities of logistics service providers in your country to manage the cold chain. ■ Use the quality of their cold chain management as a criterion for selecting the best service providers. If your buyer is responsible for transportation, advise them on the selection of service providers. ■ Monitor temperatures during transport with thermometers. You may use these measurement ■ results as proof in case of problems with product freshness after arrival at your buyer. Learn about best practices in cargo transportation on CargoHandbook.com. ■

NICHE MARKETS: ORGANIC AND FAIR TRADE REQUIREMENTS

ORGANIC, A GROWING NICHE MARKET To market organic products in Germany, you have to use organic production methods according to EU legislation. Furthermore, if your land was previously used for conventional farming, you have to use these production methods for at least two years before you can market the berries as organic. If no agricultural activities took place on the land, your organic production can be certified immediately. After being audited by an accredited certifier, you may put the EU organic logo on your products.

FAIR AND SUSTAINABLE A small, but growing, niche market is the market for fresh products produced with more attention for the social and/or environmental conditions in the producing areas. For berries exporters, social compliance is important, although product quality is top priority. Examples of social or sustainable labels for fresh fruits are Fairtrade, Fair for Life and the Rainforest Alliance Certification Scheme. Note that Rainforest Alliance has not yet certified any berry producers.

GLOBALG.A.P. Risk Assessment on Social Practice (GRASP) is an alternative certification scheme for fair and sustainable practices. This voluntary ready-to-use module of GLOBALG.A.P. was developed to assess social practices on the farm. It addresses specific aspects of workers’ health, safety and welfare. The benefit of GRASP certification compared to other certification schemes is that costs of certification are low when you combine it with GLOBALG.A.P. and/or QS(GAP) certification.

Many German retailers are member of the Business Social Compliance Initiative (BSCI). They are using the BSCI platform to improve social compliance by their suppliers. BSCI is not a certification scheme. Instead, it stimulates members to frequently audit their suppliers and promote the gradual improvement of social standards. If you supply to large German retailers, they may require you to provide the necessary information for their audit.

TIPS: Before engaging in a Fair Trade certification programme, make sure to check (in consultation ■ with your potential buyer) that this label has sufficient demand in your target market and whether it will be cost beneficial for your product. You can only realistically engage in a Fair Trade process in partnership with a Fair Trade buyer. Check your company’s current performance in terms of social compliance, for example by ■ doing a self-assessment on the BSCI website. Consult the Standards Map database for more information and for differences between ■ fair trade labels.

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WHAT COMPETITION DO I FACE ON THE GERMAN FRESH BERRY MARKET?

For general information about market competitiveness for fresh fruit and vegetables you can have a look at our study on Competition in the European market for fresh fruit and vegetables.

In this section market entry opportunities and barriers as well as competition on company and product level regarding berries are listed.

HIGHER QUALITY STANDARDS Increasingly strict requirements of German buyers raise the barriers for exporters entering the market. Particularly implementation and certification of GLOBALG.A.P. and complementary food safety management systems require significant human and financial resources. Nevertheless, the supply of berries from developing countries is increasing, such as blueberries from Chile and Peru.

European berry producers are also raising the quality standards. Breeders are constantly developing new varieties with a better taste, size, colour and firmness. Use of these new varieties is subject to payment of royalties for the Intellectual Property Rights of the breeder. These royalties add to the costs of production and limit access to new varieties for producers with little capital to invest. Moreover, the new varieties are often developed specifically for European production conditions, such as the temperate climate. Development of new berry varieties for use in developing countries is often limited.

CONSUMERS STRONGLY PREFER FRESH BERRIES OVER PRESERVED BERRIES The substitution of berries by other fruit (cherries, grapes, etc) is generally low. German consumers also prefer to purchase fresh berries instead of preserved berries (for example frozen). Only outside the German harvesting season, when prices of fresh berries are higher, consumers frequently switch to preserved berries. High prices stimulate consumers to purchase the cheaper preserved berries.

WINDOW OF OPPORTUNITY DURING OFF-SEASON Worldwide production of berries is increasing and competition is generally very fierce. During the European production season German buyers mostly source their fresh berries within Europe. See the section on imports of this document for more details.

German and other European producers are investing in new varieties and growing techniques to extend their growing season. This can enable them within the next 5 years to grow berries for a longer period and narrow your window of opportunity by a few weeks.

PROXIMITY TO GERMANY IS A STRONG COMPETITIVE ADVANTAGE Producers close to Germany can benefit from low transport costs. For example, producers in Serbia can transport the berries by truck to Germany. This is much cheaper (less than 1 euro per kg) than the airfreight from Peru for example (estimated at 2 euros per kg).

The high airfreight costs often make it impossible for producers in distant countries like Peru to compete on price with European producers. Even during the off-season when competition from European producers is absent, minimising costs of airfreight is crucial to remain price competitive compared to other suppliers. You have to increase the freight size to receive better rates from freight forwarders.

Product differentiation offers an opportunity to avoid direct competition with the lowest cost berry producers that benefit from proximity to Germany. For example, mixes of different fresh berries are attractive to consumers and are becoming more popular.

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TIPS: Increase your scale to benefit from economies of scale such as reduction of freight costs. ■ You can also offer to supply different products at the same time (in cooperation with local partners). This increases freight size, lowers freight costs and improves your product propo- sition by giving buyers more choice. Always check on trade partners’ performance and track record before entering into compre- ■ hensive or long term contracts. Finding a sound importing partner, with a strong brand and good reputation is very important. Try not to compete on price alone, but build partnerships with buyers and strive for excellent ■ product quality and handling. You can also differentiate your product by offering a mix of fresh berries. Mixes can include all kinds of berries. Establish a credible track record including transparent information on your company and ■ product quality. Being part of a stable partnership and being a trustworthy supplier can help you to establish and maintain your position on the market. Use novel packaging (a unique design for example), premium quality and storytelling about ■ the product’s origin and producing communities as methods for setting your product apart. Story-telling is only relevant when targeting consumers who want their favourite fruits to be available year-round. Cooperate with other berry producers in your country or region to develop new berry varieties ■ with a better quality. When you have a surplus of berries that cannot be exported profitably, you can supply these ■ to the processing industry. For example, there are excellent opportunities on the European market for frozen berries. See our study on frozen berries in Europe for more information.

WHAT DO THE TRADE CHANNELS AND INTERESTING MARKET SEGMENTS LOOK LIKE IN GERMANY FOR FRESH BERRIES?

For more general information about market channels and segments, you can have a look at the Market Channels and Segments for fresh fruit and vegetables available at the CBI market intelligence platform. This section provides some information about the various marketing channels through which fresh berries are marketed in Germany.

FIGURE 6: MARKET CHANNELS FOR FRESH BERRIES IN THE GERMAN MARKET

Source: Eurostat, 2016

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Importers channel the berries to German retailers: Less than 15 fresh berry importers supply the large European food retail chains (mainly supermarkets) including those in Germany. Examples of berries importers in Germany: ■■ Ralf Wisser (raspberries, blueberries and blackberries) ■■ UNIVEG (blueberries, raspberries and blackberries; Fairtrade) ■■ Koella (berries; organic) ■■ Fairtrasa (blueberries; Fairtrade and organic fruit) ■■ Dole Europe (blueberries and raspberries from own farms; organic)

In addition to the importers in Germany, specialised importers in the Netherlands and Belgium also supply to German retailers. Their logistics are efficient enough to compete directly with German importers for the supply of berries to German retailers.

Importers play a crucial role in channelling fresh berries to both retailers and food service providers. They are your most important channel to the German market. Importers source internationally to supply fresh berries year-round. This is particularly important for large retail chains accounting for most berry sales by importers. Next to that, importers also supply domestic wholesalers and exporting wholesalers.

The importers can also (re-)pack the products for retail. The fresh berries for large retail chains are generally sold under the private label of the retailer. The retailer is the owner of the brand and specifies packaging and labelling requirements. Next to the private labels, many importers also have their own brand. They supply products under this brand to other wholesalers or to smaller specialised retailers. In a few cases, importers also market the brand of a producer through specific cooperation arrangements.

Large retail chains are the main retail channel: Edeka Group with supermarket brands such as Edeka, Spar and Netto is the largest supermarket conglomerate in Germany with a market share of around 25 %. Other large supermarkets are REWE (15 %) and Metro AG. In Germany, discount supermarkets have a market share of over 50 % in fresh fruit and vegetables. Lidl (20 %) and Aldi are the leading discounters.

In the niche market for organic products including fresh berries, supermarkets and other conventional retailers such as grocery stores also account for more than 50 % of sales. Specialised organic retailers account for almost 40 % of organic sales and other channels account for the remaining 10 % (FiBL, 2016). Examples of specialised organic retailers in Germany: ■■ Denn’s Bio stores of the company Dennree (100 stores in Germany) ■■ Temma stores of REWE

Next to the retail channel, fresh berries are also used in the food service industry, including res- taurants, hotels and catering services.

TIPS: Target importing wholesalers to enter the German market. They generally have an extended ■ network of customers, excellent knowledge of quality requirements, logistics and administra- tive processes. Only invest in your own brand if you can find an importer with the capacity and willingness ■ to actively promote your brand in the German market. You will need a strong partner in Germany to obtain the necessary brand recognition and compete with local brands. For the export of organic berries into the European market, use a competent and specialised ■ importer who understands the market and knows the way into niche markets with their particular requirements. Look for trade partners at trade fairs such as Fruit Logistica. Try to find a match between you ■ and an importer based on the size and strategy of your company. Read our tips for finding buyers on the European market for fresh fruit and vegetables. ■

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WHAT ARE THE MARKET PRICES FOR FRESH BERRIES?

Consumer prices for berries depend on the specific variety, the size of packaging, the origin (local or non-local) and whether it is organically produced. Consumer prices for berries also vary significantly throughout the year.

TABLE 2: AVERAGE RETAIL PRICE INDICATIONS FOR FRESH BERRIES IN GERMANY, PER KG

Price in euro Raspberries 12 – 16 Blackberries 12 – 18 Blueberries 8 – 11

Source: Supermarktcheck, REWE, Bringmeister

FIGURE 7: MARKET CHANNELS FOR FRESH BERRIES IN THE GERMAN MARKET

*Shipping costs depend on transport mode and distance (air freight/sea freight/road transport) Source: Eurostat, 2016

Fairtrade certified producers receive a Fairtrade premium from their German buyer (see table below). The Fairtrade premium is paid to the premium fund of the producers’ organisation. Members of the organisation can decide together on the use of these funds.

TABLE 3: FAIRTRADE PREMIUMS FOR FRSH BERRIES PAID BY GERMAN IMPORTERS

Raspberries 15 % of commercial price Blackberries Information not available Blueberries 0.75 euros/kg

Source: Fairtrade International, 2016

TIPS: Invest in cost efficiency of your production by increasing the scale of your production, ■ using better varieties, improving growing techniques and reducing post-harvest losses. Establish a strict grading system to fetch maximum prices for your highest quality berries. ■ You can supply your lowest grades to the food industry. For up-to-date retail prices you can check the online shops or assortments of supermarket ■ chains such as REWE, Bringmeister.

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USEFUL SOURCES

EXPORT AND MARKET ENTRY SUPPORT: ■■ CBI – www.cbi.eu ■■ CBI information about EU Buyer Requirements – www.cbi.eu/market-information/fresh-fruit- vegetables/buyer-requirements ■■ EU Export Helpdesk – http://exporthelp.europa.eu/thdapp/index_en.html

CERTIFICATION SCHEMES: ■■ ITC Standards Map – www.standardsmap.org ■■ GLOBALG.A.P – www.globalgap.org/uk_en ■■ BSCI – www.bsci-intl.org ■■ International Featured Standards (IFS) – www.ifs-certification.com ■■ FAIRTRADE – www.fairtrade.net ■■ ISEAL – www.isealalliance.org ■■ Rainforest Alliance – www.rainforest-alliance.org

MARKETING AND TRADE STANDARDS: ■■ Codex Alimentarius – www.codexalimentarius.org/codex-home/en ■■ European Food legislation – http://ec.europa.eu/food/safety/general_food_law/index_en.htm ■■ The United Nations Economic Commission for Europe – www.unece.org/trade/agr/standard/ fresh/FFV-StandardsE.html

STATISTICS AND SECTOR INFORMATION: ■■ European Statistics Eurostat – http://epp.eurostat.ec.europa.eu/newxtweb ■■ FAOSTAT – http://faostat.fao.org ■■ ITC Trade Map – www.trademap.org ■■ United Nations Comtrade – http://comtrade.un.org ■■ Agricultural Research for Development – www.cirad.fr/en ■■ Fruitrop – www.fruitrop.com (publication of CIRAD) ■■ Freshfel – www.freshfel.org ■■ Freshplaza – www.freshplaza.com

This survey was compiled for CBI by ProFound – Advisers In Development October 2016

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