PowerPoint-presentatie

Bright Future in Romania for Protected Vegetable Horticulture

INDAGRA, Bucharest 30 October 2014Alfred EVERSin cooperation with WUR Greenhouse Horticulture

Content Statements beforehandTransitions in protected horticultureDutch experience in POs Lessons from CAP and NRDPTraditional Marketing versus Integrated Value ChainValue chain initiatives in RomaniaVision Mission StrategyClosing remarks

1 Statements beforehandRomania has all ingredients to be a leader in horticultural produce in EuropeContrary to NRDP & CAP support (POs) many small growers sell to local, informal marketDespite good quality of products, relations of small grower with retail is not smoothConsumers appetite for Romanian taste has become realityLow VAT stimulates local production, formal trade, creates employment and increases income.

2 Transitions in horticulture (1)

The pros and cons of low and high technology are listed above. The main advantage of more technology is the fact that production increases and the quality improves. With a state of the art greenhouse it will be possible to produce more than 100 kg/m2 of tomato in a greenhouse in Qatar (provided the personnel is well trained). So 10 times more than in the low tech greenhouses. The overall investment costs so a similar factor so per kg of product the investment costs are not different. The high tech greenhouse has the advantage that the quality of produce is better though and it is able to produce year-round so also when market prices are higher (summer period). The operational costs for the low tech greenhouse are mainly dependent on the price of water where for the high tech greenhouse they are dependent on the price of energy. Simple economic calculations show the operational costs of low tech greenhouses (pad and fan) are similar to the high tech when water is charged.New technology needs to be demonstrated and tested before growers are confined and large scale companies are set up. 4 Protected Horticulture: Increase of production (increasing control of production factors) (2)

Transition of horticulture (3)

The pros and cons of low and high technology are listed above. The main advantage of more technology is the fact that production increases and the quality improves. With a state of the art greenhouse it will be possible to produce more than 100 kg/m2 of tomato in a greenhouse in Qatar (provided the personnel is well trained). So 10 times more than in the low tech greenhouses. The overall investment costs so a similar factor so per kg of product the investment costs are not different. The high tech greenhouse has the advantage that the quality of produce is better though and it is able to produce year-round so also when market prices are higher (summer period). The operational costs for the low tech greenhouse are mainly dependent on the price of water where for the high tech greenhouse they are dependent on the price of energy. Simple economic calculations show the operational costs of low tech greenhouses (pad and fan) are similar to the high tech when water is charged.New technology needs to be demonstrated and tested before growers are confined and large scale companies are set up. 63 Dutch experience in POs First PO in 1887, long history of cooperationReason growers were too small to have s strong position on the market1950: 160 POs, 1985: 44 POs, 2014: 14 recognized in the Netherlands75% of turn over in fresh fruits and vegetables from POsDutch Produce Association (DPA): political lobby, items of common interest of members, EU, WTO, food safety, fyto sanitary issues, 12 PO are member

, Embed greater cooperation in working practices

Bench marking agricultural sector, (2) RomaniaNetherlandsinhabitants25 million16 millionagri land14 mill Ha2 mill HaHa/inhabitant0.5 Ha0.125 Ha Farmers30%2%POs numbers4 14 Phasing out growers ?95%POs production ?%75%RO:POs produce small% of the horticulture sectorNL: POs produce 75% of the horticulture sector

Netherlands trend setter in horticulture (3) Worlds biggest exporter of fresh vegetables: 4 billon kg and 4 billon Euros Intelligent greenhouses, floating on water, moving platforms, LED lightening, water and waste recycling, Energy neutral production in greenhouse systems is not anymore an utopiaConcerning value chain: growing decreased, while agro logistics and processing increasedPOs are dominating structure in the associations

4 Lessons from CAP and NRDP former Commissioner Dacian Ciolo Agriculture sector is fragmentedFarmers are isolated in marketCMO requires professionalismYoung farmers professionlizeMany small holders phase outSet up inter professionnal org or Producer OrganisationsCreating countervailing powerThrough value chain fair benefit or the smal holder

How can I manage this story? (3)

No one can manage alone!

Integration value chain Traditional Marketing Systems6Value Chain initiatives in Romania Organisations & suppliers in value chain to hyper-, supermarkets and cash and carry with the potential to fulfil the standardsPrograms of Hypermarkets such as Metro and Carrefour, Auchan, and CoraTo ensure delivery from small and medium sized farms with fresh local taste productsProducer Groups and Producer OrganisationsGroups of growers having collection, grading and storage facilities Agricover : Integrator between grower and marketPrivate company selling inputs, crop insurance and buying crops in cereal and meat sector, since 2013 in vegetables and fruits with brand Dor de GustAgricluster: Facilitator between grower and marketControl of pre and post harvest output in a public private partnership

6Vision Mission Strategy (1)

Vision: from black market to regular market, from importer to exporterMission: cooperation is the way to success, create countervailing power to obtain a fair benefit for the growersStrategy: incentives for the setting up of inter professional organisations and Producer Organisations under one pre condition lowering VAT

Strategy (2)

Geographically: select 5-10 privileged regionsSmall & medium grower: inter ministerial support of information campaign to be implemented by National Rural Development NetworkInter-professional organisations:jumelage between ALCs in RO and NLRetail: encouraging investment initiatives in education and agrologisticsBi- lateral: follow up of letter of intent between MARD (RO) and Ministry of Economic Affairs(NL)

8 Closing remarks (1)Small growers (over 90% of farmers and 50% of production) should join forces to create common facilities, to produce cheaper, cleaner, moreMedium growers should invest more in associations and standardization Limited investments results in exponential surplus valueRetailers want reliable supply(security), constant quality (safety) and standardized packagingLow VAT has proven a pre condition in other countries, why not in Romania?

Closing remarks (2)Embed greater cooperation in working practices across RomaniaTackling joint challenges (VAT, black market)Pooling expertise (know how, best practises)Building lasting links between business and institutions and research in and outside RomaniaLetter of Intent between MADR and Netherlands Ministry of Foreign Affairs, 22.4.2014, offers rich possibilities in development demonstration farms, technology transfer, training, PO and cooperation initiatives between growers.

Multumescpentru rabdarea si atentia cu care m-ati urmarit.

Transition paths to reach the goal (4)

In order to reach the goal of self sufficiency in fresh production for Qatar several paths have to be taken parallel. This approach was also used for Dutch horticulture to reduce energy use in protected cultivation. The main paths are indicated in the figure.Climate control: the main challenge for Qatar is cooling. Cooling is essential for the high quality production. The energy use for cooling should be minimized by applying technology and alternative energy resources.Integrated Pest Management: The use of pesticides should be abandoned using biological control. Local predators should be found to eliminate harmful insects.Crop management: Recirculation of water and nutrients demands highly skilled people. The crop handling itself also demand more knowledgeFertigation: Water and nutrient supply is essential for high production. This should be tuned to local conditions.Capacity building: High technology levels demand highly skilled people. Marketing: High quality products should be graded seperately on the market.Simulation and legislation: Technology transfer needs convincing. Financial stimulation and legislation is needed for the transition.

21