1.6 FRUIT AND VEGETABLES

Nothing exemplifies more the globalisation of the commodities markets than the trade in fruit and vegetables. Supermarkets in Germany, Canada, UK and most other developed countries are full of exotic fruit and vegetables, which can only be grown in tropical countries. Developments in transport and food production and preservation mean that crops normally grown in the summer in temperate climates can be supplied in winter by growers in hotter climates. Nothing could be more typical of the northern cuisine than Brussels sprouts - yet these can now be supplied to Europe from Kenya.

This change has been brought about by the increase in wealth of people in the industrialised world relative to those in tropical countries. Expenditure on food now represents only a small fraction of the disposable income of many Northern families. Fruit and vegetable production is highly labour intensive and the comparatively low incomes of people in developing countries ensure that these countries can supply competitively.

International transport costs are also fairly cheap. It costs more per pound to send a lorry full of apples from Taunton to London (150 miles) than it does to send apples by sea from Mombassa to London (7000 miles).

In spite of these advantages, tropical farmers still face formidable obstacles if they wish to export fruit and vegetables to Northern markets. Most developed countries impose import duty on products which are also grown by their own farmers. The EU maintains duty rates of between 10 and 20 per cent on many of these goods even for GSP (General System of Preference) countries. Most products are free of import duty for ACP (Africa, Caribbean and Pacific) countries, however.

The most difficult barrier for exporters to these countries is quality. Consumers in developed countries are very worried about becoming ill by eating impure food. It is true that most vegetables are cooked and most fruit is peeled, but this only goes part way to satisfying Northern customers. All imports have to comply with strict import regulations. Any substandard product must be destroyed on entry.

Importers and customers want to see a fresh, clean, uniform, blemish-free product packed firmly in a good-quality carton properly printed with its grower's name, mark and address and its net weight.

Most fruit and vegetables need to be transported in temperature-controlled containers in order to avoid deterioration. Different products often need to be transported at different temperatures. The following examples demonstrate this point.

Aubergines should be transported and stores at 8 to 10 degrees C, asparagus at 2 degrees C, okra at 8 to 10 degrees C and green beans at 4.4 to 7.2 degrees C.

Only well-organised growers can hope to meet all these specifications, but even if they can, they still cannot be sure of finding a good buyer or receiving a good price. Importers in developed countries range in size from very small to very large. They act as importers and sales agents for the tropical exporter.

In Europe, the smaller importers are wholesalers selling to smaller retailers. They can only tell the supplier the price that can be paid to the supplier after they have sold. This price changes every day, according to how many buyers or sellers are trying to do business on a reasonably accurate idea of what price to expect, however.

Larger importers supply the big chains of supermarkets and only buy in substantial quantities. They will often pay a fixed price, but only after building up a good working relationship with the supplier.

Both types of importer act as a sales agent working on an exclusive basis and expect to take about a 7 per cent commission on the sales they make. In return for this commission, they would arrange for importation and customs clearance, arrange internal transport and warehousing, find a suitable buyer, obtain payment and pass payment on to the supplier.

Tropical suppliers wishing to sell directly to developed countries will need to supply the importer with a carton or two of typical samples together with a schedule of planned deliveries. The importing company will then decide whether it is able to act for the supplier.

The names of importers can generally be obtained from the institute or association representing the industry in that country. In Britain, these interest are represented by the Fruit importers Association, Room 408/9, market Towers, New Covent Garden, London SW8 5NQ. Details of EU regulations for imports of different fruit and vegetables can be obtained from the international trade centre, Palais des Nations, Geneva 10, Switzerland.

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