pear production costs in europe: costs analysis in …

Interpera 2010, 3rd World Pear Forum - Ferrara, 27 maggio 2010

Alessandra CastelliniAlessandro Palmieri

Carlo Pirazzoli

Centro Servizi Ortofrutticoli

PEAR PRODUCTION COSTS IN EUROPE:

COSTS ANALYSIS IN THE MAIN GROWING COUNTRIES

Department of Agricultural Economics andEngineering Alma Mater Studiorum University of Bologna

SUMMARYSUMMARYSURVEYED AREAS AND METHODOLOGYECONOMIC ITEMS CONSIDERED:

Farm production costFarm profitabilityProcessing and packing costTotal cost of the production/packing phaseSupply chain of pears exported in GermanyProduct competitiveness in German large retail stores

COMPARISON WITH THE MAIN RESULTS OF THE 2002 SURVEY

CONCLUDING REMARKS

SURVEYED AREAS

1 4 11

4

5

5

6

1 3

1

3

SURVEY 2009SURVEY 2009

(26 EVALUATIONS)

SURVEY 2002SURVEY 2002

(18 EVALUATIONS)

PEAR PRODUCTION IN THE SURVEYED AREAS

Production (.000 ton) % Production (.000 ton) %Italy 853 34,8 833 34,5Portugal 119 4,9 171 7,1Spain 635 25,9 465 19,3France 227 9,3 190 7,9Netherlands 140 5,7 246 10,2Belgium 142 5,8 246 10,2Others 334 13,6 260 10,8Ue (27) 2.450 100 2.412 100

Mean 2001-03 Mean 2007-09

TOTALTOTALSURVEYED AREASSURVEYED AREAS 80,6%80,6% 89,2%89,2%

SUMMER CULTIVARS SURVEYED

Italy – Rovigo

Italy – Modena

Italy – Ferrara

Portugal - Cadaval

Spain – Catalunya (Lleida)Spain – Catalunya (Girona)

France – Val de Loire

France – Bouches du Rhône

Belgium – Limburg

Netherlands - Betuwe

GROWING AREA LIMONERA GUYOT SANTA MARIA ROCHA WILLIAM

AUTUMN CULTIVARS SURVEYED

Italy – Rovigo

Italy – Modena

Italy – Ferrara

Portugal - Cadaval

Spain – Catalunya (Lleida)Spain – Catalunya (Girona)

France – Val de Loire

France – Bouches du Rhône

Belgium – Limburg

Netherlands - Betuwe

CONFERENCE ABATE FETEL KAISER BLANQUILLA DOYENNEGROWING AREA

METHODOLOGY:MAIN ASPECTS

Cost levels

Production insurance

ITEMS DIRECT COST FARM FULL COST

TOTAL PRODUCTION

COSTS

Raw materials

Manpower ♦ ♦

Annual orchard depreciation

Annual water plant/anti-hail depreciation

Land capital maintenance and insurance --

Machineries maint., depreciation and insurance --

General admnistrative expenditures --

Management -- ♦

Social security (farmer) --

Taxes --

Interest on imprest capital -- --

Interest on fitting operations -- --

Interests on machine equipments -- --

Land rent -- --

Included optional, depending on the farm type − − Νot included

Example of calculating the average yield (cv Abate Fétel, Prov. of Modena)

0

5

10

15

20

25

30

35

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

tons

/ha

plant duration (years)Average yield of full production period

PROCESSING AND PACKING COST

VARIABLE COSTS (€/kg)

Packaging (punnet-plateaux-box)

Manpower

FIXED COSTS (€/kg)

General costsDepreciation

SUPPLY CHAIN (2009)ITALY GERMANY

(large retail)NETHERLAND

0,00

0,50

1,00

1,50

2,00

2,50

3,00

Abate Fétel (2009/2010)

Euro/Kg

Retail costs and margin

Transport and insurance

Earning margin

Packing cost

Producer price

ProducerProducer pricepriceFOB priceFOB price

CIF priceCIF price

RetailRetail priceprice

PRODUCT COMPETITIVENESS IN THE GERMAN LARGE RETAIL STORES

CSO Weekly prices of pears for the year 2009:

OriginOrigin

ITALY

FRANCE

NETHERLANDS

•Munich•Berlin

Karstadt Wertheim

Edeka Tengelmann

Kaiser’s Hl

Rewe

Lidl Aldi

SURVEY RESULTS SURVEY RESULTS

AVERAGE ANNUAL AVERAGE ANNUAL PRODUCTION COSTPRODUCTION COST

AND YIELDAND YIELD

0

2.500

5.000

7.500

10.000

12.500

15.000

17.500

20.000

IT-Ferrara IT-Modena IT-Rovigo FR-Provence FR-Val de Loire IT-Modena FR-Provence ES-Catalunya (Lleida)

PT-Cadaval

Kpi KpiKpi

Kpi KpiKpi

Kpi

KpiKpi

Kf Kf

Kf

KfKf

Kf

Kf

Kf

Kf

Eur

o/ha

William William William William William Guyot Limonera Rocha

Kpi: full costKt: figurative cost (opportunity)

S.Maria

ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Ha):/Ha):SUMMER CULTIVARSSUMMER CULTIVARS

0

2.500

5.000

7.500

10.000

12.500

15.000

17.500

20.000

IT-Ferrara IT-Modena IT-Rovigo FR-Provence FR-Val de Loire

ES-Catalunya (Lleida)

ES-Catalunya (Girona)

BE-Limburg NL-Betuwe NL-Betuwe (high density)

Kpi KpiKpi

Kpi Kpi

Kpi Kpi Kpi

Kpi Kpi

Kf Kf

KfKf

Kf

Kf Kf

Kf

KfKf

Eur

o/ha


ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Ha):/Ha):CONFERENCECONFERENCE

0

2.500

5.000

7.500

10.000

12.500

15.000

17.500

20.000

IT-Ferrara IT-Modena IT-Rovigo IT-Modena FR-Val de Loire NL-Betuwe ES-Catalunya (Lleida)

Kpi Kpi Kpi Kpi Kpi KpiKpi

Kf Kf Kf Kf Kf Kf

Kf

Eur

o/ha

Abate F. Abate F. Abate F. Kaiser Doyenne Doyenne Blanquilla


Kf

ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Ha):/Ha):OTHER AUTUMN CULTIVARSOTHER AUTUMN CULTIVARS

0

5

10

15

20

25

30

35

40

45

50

55

60


PT-Cadaval

Tons

/ha

William William William William William Guyot Limonera RochaS.Maria

AVERAGE ANNUAL YIELD (AVERAGE ANNUAL YIELD (TonsTons/Ha):/Ha):SUMMER CULTIVARSSUMMER CULTIVARS

0

5

10

15

20

25

30

35

40

45

50

55

60





Tons

/ha

AVERAGE ANNUAL YIELD (AVERAGE ANNUAL YIELD (TonsTons/Ha):/Ha):CONFERENCECONFERENCE

0

5

10

15

20

25

30

35

40

45

50

55

60


Tons

/ha


AVERAGE ANNUAL YIELD (AVERAGE ANNUAL YIELD (TonsTons/Ha):/Ha):OTHER AUTUMN CULTIVARSOTHER AUTUMN CULTIVARS

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55


PT-Cadaval

Kpi Kpi Kpi Kpi Kpi

Kpi Kpi

Kpi

Kpi

Kf Kf Kf

KfKf

KfKf

Kf

KfEur

o/K

g

William William William William William Guyot Limonera Rocha


Kpi

S.Maria

ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Kg):/Kg):SUMMER CULTIVARSSUMMER CULTIVARS

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55





Kpi KpiKpi

KpiKpi Kpi Kpi

KpiKpi Kpi

Kt Kt

Kt

Kt Kt KtKt

Kt

KtKt

Eur

o/K

g


ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Kg):/Kg):CONFERENCECONFERENCE

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55


KpiKpi

KpiKpi Kpi Kpi

Kpi

Kf

KfKf

KfKf Kf

Kf

Eur

o/K

g



KpiKpiKpi

ANNUAL PRODUCTION COST (ANNUAL PRODUCTION COST (€€/Kg):/Kg):OTHER AUTUMN CULTIVARSOTHER AUTUMN CULTIVARS

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

0,00 0,10 0,20 0,30 0,40 0,50 0,60

PT-CD-ROCHA

FR-PR-WILLIAM

ES-LE-LIMONERA

FR-VL-WILLIAM

IT-MO-WILLIAM

IT-FE-WILLIAM

IT-RO-WILLIAM

FR-PR-GUYOT

IT-MO-S.MARIA

Euro/Kg

SUMMER PEARSSUMMER PEARS::TOTAL PRODUCTION COST (TOTAL PRODUCTION COST (€€/Kg)/Kg)

Kpi: FULL COSTKf: FIGURATIVE COST

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

0,00 0,10 0,20 0,30 0,40 0,50 0,60

BE-LI-CONFERENCE

ES-LE-BLANQUILLA

NL-BW-CONFERENCE HD

NL-BW-CONFERENCE

ES-GI-CONFERENCE

IT-RO-CONFERENCE

FR-PR-CONFERENCE

IT-MO-KAISER

FR-VL-DECANA

FR-VL-CONFERENCE

ES-LE-CONFERENCE

NL-BW-DECANA

IT-MO-CONFERENCE

IT-FE-CONFERENCE

IT-FE-ABATE

IT-RO-ABATE

IT-MO-ABATE

Euro/Kg

AUTUMN PEARSAUTUMN PEARS::TOTAL PRODUCTION COST (TOTAL PRODUCTION COST (€€/Kg)/Kg)

Kpi: FULL COSTKf: FIGURATIVE COST

2002 >> 2009

COMPARISON OF PRODUCTION COSTS IN THE SURVEYED AREAS

2002 – 2009:COMPARED AREAS

Emilia-RomagnaITALY

PORTUGAL Cadaval

CatalunyaSPAIN

Bouches du RhôneLoiretFRANCE

NETHERLANDS Betuwe

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2002 2009 2002 2009 2002 2009

Eur

o/K

g

Raw materials Manpower Other costs

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2002 2009 2002 2009 2002 2009

Eur

o/ha


PRODUCTION COST IN ITALY (EMILIAPRODUCTION COST IN ITALY (EMILIA--ROMAGNA)ROMAGNA)€€/Ha (total /Ha (total costcost))Abate Abate FFéétel tel +16%+16%Conference Conference +40%+40%William +40 %William +40 %

+68%+68%

+1%+1%

+7%+7%

Abate Abate F.F. ConferenceConference WilliamWilliam

+125%+125%

+20%+20%

+36%+36%

+170%+170%

+8%+8%

+37%+37%

€€/Kg (total /Kg (total costcost))Abate Abate FFéétel tel +27%+27%Conference Conference +33%+33%William +24 %William +24 %

OtherOther costs costs +23 %+23 %Manpower Manpower +7%+7%RawRaw materials materials +113%+113%

Abate Abate F.F. ConferenceConference WilliamWilliam

+85%+85%

+11%+11%

+18%+18%

+114%+114%

+13%+13%

+29%+29%

+140%+140%

--5%5%

+21%+21%


0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2002 2009 2002 2009 2002 2009

Eur

o/ha


0,00

0,10

0,20

0,30

0,40

0,50

0,60

2002 2009 2002 2009 2002 2009

Eur

o/K

g


PRODUCTION COST IN FRANCEPRODUCTION COST IN FRANCE€€/Ha (total /Ha (total costcost))Guyot Guyot +40%+40%William +31%William +31%Conference Conference +34 %+34 %

+89%+89%

+25%+25%

+43%+43%

GuyotGuyot WilliamWilliam ConferenceConference

+73%+73%

+11%+11%

+42%+42%

+54%+54%

+37%+37%

+22%+22%

€€/Kg (total /Kg (total costcost))Guyot Guyot +26%+26%William +3%William +3%Conference Conference --16 %16 %

GuyotGuyot WilliamWilliam ConferenceConference

+71%+71%

+13%+13%

+29%+29%

+36%+36%

--13%13%

+12%+12%

--4%4%

--15%15%

--24%24%


OtherOther costs costs +6 %+6 %Manpower Manpower --5%5%RawRaw materials materials +34%+34%

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2002 2009 2002 2009 2002 2009

Eur

o/K

g


0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2002 2009 2002 2009 2002 2009

Eur

o/ha


PRODUCTION COST IN SPAIN AND PORTUGALPRODUCTION COST IN SPAIN AND PORTUGAL€€/Ha (total /Ha (total costcost))Rocha Rocha +21%+21%Conference Conference +25%+25%Limonera Limonera +35 %+35 %

+20%+20%

+14%+14%

+27%+27%

RochaRocha ConferenceConference LimoneraLimonera

+47%+47%

+2%+2%

+39%+39%

+67%+67%

+17%+17%

+43%+43%

€€/Kg (total /Kg (total costcost))Rocha Rocha +1%+1%Conference Conference +40%+40%Limonera Limonera +12 %+12 %

RochaRocha ConferenceConference LimoneraLimonera

+0%+0%

--5%5%

+6%+6%

+65%+65%

+14%+14%

+55%+55%

+39%+39%

--2%2%

+19%+19%



0,00

0,10

0,20

0,30

0,40

0,50

0,60

2002 2009 2002 2009

Eur

o/K

g


0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2002 2009 2002 2009

Eur

o/ha


PRODUCTION COST IN THE NETHERLANDSPRODUCTION COST IN THE NETHERLANDS

+75%+75%

+138%+138%

--33%33%

DoyenneDoyenneConferenceConference

OtherOther costs costs --31 %31 %Manpower Manpower +127%+127%RawRaw materials materials +76%+76%+76%+76%

+115%+115%

--29%29%

€€/Kg (total /Kg (total costcost))

Conference Conference --7%7%Doyenne Doyenne --7 %7 %

OtherOther costs costs --51 %51 %Manpower Manpower +63%+63%RawRaw materials materials +27%+27%

DoyenneDoyenneConferenceConference

+28%+28%

+73%+73%

--52%52%

+26%+26%

+54%+54%

--49%49%

€€/Ha (total /Ha (total costcost))

Conference Conference +27%+27%DoyenneDoyenne +30 %+30 %

LABOUR COST FOR PICKING (LABOUR COST FOR PICKING (€€//HourHour))AREASAREAS 20022002 INDEX *INDEX * 20092009 INDEX *INDEX *ITALYITALY

EMILIA-ROMAGNA 9,58 100 9,90 100

PORTUGALPORTUGAL

CADAVAL 4,00 42 5,00 51SPAINSPAIN

CATALUNYACATALUNYA 6,00 63 7,00 71FRANCEFRANCE

LOIRETLOIRET 9,57 100 11,50 116B. DU RHONEB. DU RHONE 10,35 108 12,10 122NETHERLANDSNETHERLANDS

BETUWEBETUWE 12,00 125 12,00 121* EMILIA* EMILIA--ROMAGNA = 100ROMAGNA = 100

2002 >> 2009 INNOVATIONS: KEY POINTS

PRODUCT INNOVATIONSPRODUCT INNOVATIONS PROCESS INNOVATIONSPROCESS INNOVATIONS

• Integrated pestmanagement

• Lack of cultivarreplacement

• Traditional training systems

• One area >> One cultivar

• Anti-hail structure• Market specializationstrategy

FARM PROFITABILITYFARM PROFITABILITY

-2.500 -2.000 -1.500 -1.000 -500 - 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000

Ferrara (I) - William

Rovigo (I) - William

B.du Rhône (F) - Guyot

Modena (I) - William

Modena (I) - S.Maria

B.du Rhône (F) - William

Loiret (F) - William

Lleida (E) - Limonera

Cadaval (P) - Rocha

Euro/ha

SUMMER PEARSSUMMER PEARS: FARM PROFIT BASED ON : FARM PROFIT BASED ON LAST 3 YEARS PRICE (LAST 3 YEARS PRICE (€€/Ha)/Ha)

-2.500 -2.000 -1.500 -1.000 -500 - 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000

Betuwe (NL) - Doyenne

Ferrara (I) - Conference

Betuwe (NL) - Conference

Modena (I) - Conference

Loiret (F) - Conference

Lleida (E) - Conference

Girona (E) - Conference

Loiret (F) - Doyenne

Betuwe (NL) - Conference HD

Rovigo (I) - Conference

Limburg (B) - Conference

Modena (I) - Kaiser

Lleida (E) - Blanquilla

B.du Rhône (F) - Conference

Rovigo (I) - Abate F.

Ferrara (I) - Abate F.

Modena (I) - Abate F.

Euro/ha

AUTUMN PEARSAUTUMN PEARS: FARM PROFIT BASED ON : FARM PROFIT BASED ON LAST 3 YEARS PRICE (LAST 3 YEARS PRICE (€€/Ha)/Ha)

COSTS AND PRICES IN ITALYCOSTS AND PRICES IN ITALY

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2002 2009 2002 2009 2002 2009

Eur

o/K

g

Price

Other costs

Manpower

Raw materials

2002 2009 2002 2009 2002 2009

Abate Fétel Conference William

COSTS AND PRICES IN FRANCECOSTS AND PRICES IN FRANCE

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2002 2009 2002 2009 2002 2009

Eur

o/K

g

Price

Other costs

Manpower

Raw materials

2002 2009 2002 2009 2002 2009

Guyot William Conference

COSTS AND PRICES IN SPAIN AND PORTUGALCOSTS AND PRICES IN SPAIN AND PORTUGAL

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2002 2009 2002 2009 2002 2009

Eur

o/K

g

Price

Other costs

Manpower

Raw materials

2002 2009 2002 2009 2002 2009

Rocha Conference Limonera

COSTS AND PRICES IN THE NETHERLANDSCOSTS AND PRICES IN THE NETHERLANDS

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

2002 2009 2002 2009

Eur

o/K

g

Price

Other costs

Manpower

Raw materials

2002 2009 2002 2009

Conference Doyenne

SURVEY RESULTS: SURVEY RESULTS:

PROCESSING AND PROCESSING AND PACKING COSTPACKING COST

0,13

0,11

0,11

0,11

0,11

0,13

0,12

0,11

0,12

0,10

0,10

0,11

0,12

0,13

0,13

0,13

0,11

0,13

0,06

0,08

0,11

0,08

0,09

0,07

0,09

0,11

0,11

0,04

0,04

0,02

0,04

0,04

0,04

0,05

0,07

0,06

0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45

IT-ROVIGO

ES-CATALUNYA

PT-CADAVAL

BE-LIMBURG

IT-MODENA

IT-FERRARA

FR-LOIRET

NL-BETUWE

FR-PROVENCE

Euro/KgPackaging Manpower General cost Depreciation

Labor cost (€/hour)

14,0

13,5

13,0

13,2

13,0

5,0

7,0

12,9

14,0

TOTAL PACKING COTS:TOTAL PACKING COTS:PLATEAUX PLATEAUX -- 1 LAYER (7 Kg)1 LAYER (7 Kg)

0,13

0,12

0,11

0,13

0,14

0,12

0,12

0,11

0,10

0,14

0,14

0,12

0,14

0,15

0,06

0,08

0,09

0,07

0,11

0,09

0,11

0,04

0,04

0,04

0,04

0,02

0,05

0,06

0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45

IT-ROVIGO

ES-CATALUNYA

IT-MODENA

IT-FERRARA

PT-CADAVAL

FR-LOIRET

FR-PROVENCE



14,0

13,5

13,0

13,2

5,0

7,0

12,9

TOTAL PACKING COST:TOTAL PACKING COST:PUNNETS PUNNETS -- (1 Kg net (1 Kg net weightweight))

0,05

0,07

0,08

0,08

0,07

0,07

0,07

0,09

0,06

0,08

0,10

0,10

0,10

0,10

0,10

0,09

0,11

0,08

0,07

0,08

0,09

0,09

0,11

0,10

0,02

0,04

0,04

0,04

0,04

0,05

0,06

0,07

0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45

PT-CADAVAL

ES-CATALUNYA

IT-FERRARA

BE-LIMBURG

IT-MODENA

FR-LOIRET

FR-PROVENCE

NL-BETUWE



14,0

14,0

13,0

13,2

5,0

7,0

13,5

13,0

TOTAL PACKING COST: TOTAL PACKING COST: BOXES BOXES -- (12(12--14 Kg)14 Kg)

SURVEY RESULTS: SURVEY RESULTS:

TOTAL COST OF THE TOTAL COST OF THE AGRICULTURAL PHASEAGRICULTURAL PHASE

TOTAL PRODUCTION + PACKING COST: TOTAL PRODUCTION + PACKING COST: SUMMER PEARSSUMMER PEARS IN PLATEAUX (*)IN PLATEAUX (*)

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00

PT-Cadaval


IT-Rovigo

FR-Provence

FR-Val de Loire

IT-Modena

IT-Ferrara

IT-Modena

FR-Provence

Euro/KgKpi: farm full costKf: farm figurative costKc: processing and packing cost

William

Guyot

William

William

William

William

Rocha

Limonera

* 1 layer, average weight of 7 Kg

S.Maria

TOTAL PRODUCTION + PACKING COST: TOTAL PRODUCTION + PACKING COST: CONFERENCECONFERENCE PEARSPEARS IN PLATEAUX (*)IN PLATEAUX (*)

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00

BE-Limburg


IT-Rovigo


NL-Betuwe (fitto)

NL-Betuwe

FR-Val de Loire

IT-Modena

FR-Provence

IT-Ferrara

Euro/KgKpi: farm full costKf: farm figurative costKc: processing and packing cost * 1 layer, average weight of 7 Kg

TOTAL PRODUCTION + PACKING COST: TOTAL PRODUCTION + PACKING COST: AUTUMN PEARSAUTUMN PEARS IN PLATEAUX (*)IN PLATEAUX (*)

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kc

Kc

Kc

Kc

Kc

Kc

Kc

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00


IT-Modena

FR-Val de Loire

IT-Rovigo

NL-Betuwe

IT-Ferrara

IT-Modena

Euro/KgKpi: farm full costKf: farm figurative costKc: processing and packing cost

Abate F.

Doyenne

Abate F.

Doyenne

Abate F.

Blanquilla

Kaiser

* 1 layer, average weight of 7 Kg

TOTAL PRODUCTION + PACKING COST: TOTAL PRODUCTION + PACKING COST: CONFERENCE PEARSCONFERENCE PEARS IN BOXES (*)IN BOXES (*)

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kpi

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kf

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

Kc

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00

BE-Limburg



NL-Betuwe (fitto)

NL-Betuwe

FR-Val de Loire

FR-Provence

IT-Ferrara

IT-Modena

Euro/KgKpi: farm full costKf: farm figurative costKc: processing and packing cost * average weight of 12-14 Kg

SUPPLY CHAIN ANALYSIS

ABATE F./WILLIAMABATE F./WILLIAM –– ORIGIN: ITALYORIGIN: ITALY

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

Eur

o/K

g

Retail price

CIF price (includes transport and insurance)

FOB price + Earning margin

FOB price

Production price

(*) the retail price is a weighted average of high, medium and low price stores

Abate Fétel2008/09

Abate Fétel2009/10

(forecast)

William2008/09

William2009/10

(forecast)

CONFERENCECONFERENCE –– ORIGIN: NETHERLANDSORIGIN: NETHERLANDS

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

Eur

o/K

g

Retail price

CIF price (includes transport and insurance)

FOB price + Earning margin

FOB price

Production price

(*) the retail price only includes low price stores

Conference2008/09

Conference2009/10

(forecast)

PRICE ANALYSIS IN THE GERMAN LARGE RETAIL

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

Wertheim Karstadt Edeka Kaiser's Arithmetic Mean

Hl Tengelmann Rewe Lidl Aldi

Eur

o/K

g

GENERAL MEAN 2009:2,87 €/KG

PRICE OF PEARS IN THE GERMAN LARGE PRICE OF PEARS IN THE GERMAN LARGE RETAIL COMPANIES (2009)RETAIL COMPANIES (2009)

WILLIAMWILLIAM –– ORIGIN: ITALY/FRANCEORIGIN: ITALY/FRANCE

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Eur

o/K

g

Weeks

Low price stores (I) Medium price stores (I) Medium price stores (F) High price stores (I)

CONFERENCECONFERENCE –– ORIGIN: NETHERLANDSORIGIN: NETHERLANDS

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Eur

o/K

g

Weeks

Low price stores

Production 2008 Production 2009

ABATE FETELABATE FETEL –– ORIGIN: ITALYORIGIN: ITALY

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Eur

o/K

g

Weeks

Low price stores Medium price stores High price stores

Production 2008 Production 2009

CONCLUDINGCONCLUDINGREMARKSREMARKS

GENERAL PEARS MARKET FEATURES

POOR CULTIVAR RENEWAL;POOR CULTIVAR RENEWAL;

SPECIALIZATION OF EVERY GROWING SPECIALIZATION OF EVERY GROWING AREA IN ONE CULTIVAR AND IN A FEW AREA IN ONE CULTIVAR AND IN A FEW NUMBER OF MARKETS; NUMBER OF MARKETS;

LOW COMPETITIVE MARKET LOW COMPETITIVE MARKET CONDITIONS, COMPARED TO THE OTHER CONDITIONS, COMPARED TO THE OTHER MAIN FRUITS; MAIN FRUITS;

PRODUCTION COST ANALYSIS

STRONG INCREASE IN RAW MATERIALS COST STRONG INCREASE IN RAW MATERIALS COST >> >> MODERATE INCREASE IN LABOR COST;MODERATE INCREASE IN LABOR COST;

VERY HIGH DIFFERENCE IN PRODUCTION COSTS VERY HIGH DIFFERENCE IN PRODUCTION COSTS AMONG THE SURVEYED AREAS (AMONG THE SURVEYED AREAS (VERY LARGE VERY LARGE DIFFERENCE IN YIELD POTENTIALDIFFERENCE IN YIELD POTENTIAL), PARTLY ), PARTLY REDUCED IN TERMS OF COST PER KG, BUT STILL REDUCED IN TERMS OF COST PER KG, BUT STILL SIGNIFICANT; SIGNIFICANT;

TWO TWO STRATEGIES: STRATEGIES:

LOW LOW PRODUCTION COSTPRODUCTION COST

HIGH QUALITY AND HIGH QUALITY AND PRODUCT PRODUCT ACKNOWLEDGEMENTACKNOWLEDGEMENT

PROFITABILITY AND COMPETITIVENESSNO GROWING AREAS IN PERMANENT DIFFICULTY NO GROWING AREAS IN PERMANENT DIFFICULTY

WERE IDENTIFIED, CONSIDERING THE LAST 3 YEARS WERE IDENTIFIED, CONSIDERING THE LAST 3 YEARS PRICES;PRICES;

GENERAL LOW PROFITABILITY FOR SUMMER GENERAL LOW PROFITABILITY FOR SUMMER CULTIVARS (LOW PRICES FROM INDUSTRY); CULTIVARS (LOW PRICES FROM INDUSTRY);

HIGH SENSITIVITY TO PRICE CHANGES, MAINLY IN HIGH SENSITIVITY TO PRICE CHANGES, MAINLY IN THE AREAS WITH HIGHER PRODUCTION COSTSTHE AREAS WITH HIGHER PRODUCTION COSTS; ;

STRONG MARKET SPECIALIZATION CAN BECAME A STRONG MARKET SPECIALIZATION CAN BECAME A PROBLEM DURING CRISIS PERIODS (PROBLEM DURING CRISIS PERIODS (EG. RUSSIAEG. RUSSIA); );

FUTURE PROSPECTIVESCRITICAL POINTS:CRITICAL POINTS:

increase of cultivated areas in some important EU increase of cultivated areas in some important EU growers;growers;

import from nonimport from non--EU countries;EU countries;very high financial investments required. very high financial investments required.

STAYING COMPETITIVE:STAYING COMPETITIVE:production cost control;production cost control;high yield level;high yield level;product quality;product quality;supply planning according to the market demand;supply planning according to the market demand;product value enhancement and acknowledgement. product value enhancement and acknowledgement.

PEAR PRODUCTION COST IN EUROPE:COSTS ANALYSIS IN THE MAIN GROWING COUNTRIES

THANK YOU FORTHANK YOU FORYOUR ATTENTIONYOUR ATTENTION

Interpera 2010, 3rd World Pear Forum - Ferrara, 27 maggio 2010

pear production costs in europe: costs analysis in …

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