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Greece:CAP Reforms Triggers Decline in Raisin Production

Source: US Government
19/09/2008

19 Sept - Raisin production in Greece continues to show declines in 2008. This trend can be substantially attributed to implementation of the CAP reform, several consecutive dry seasons and shifting interest to the production of fresh sultanas.

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Sultana Cooperative Organizations, (KSOS) in Crete and the Peloponnesus report that the 2007 raisin production did not exceed 5,000 MT. Raisin production in 2006 was 16,000 MT and in 2005 production was 29,000 MT. Preliminary estimates for the 2008 crop indicate that production is not expected to exceed 4,500 MT. Implementation of the new CAP reform of the horticultural sector is scheduled to start with the 2008 crop harvest. This reform requires the implementation of a 100% decoupling system for raisins.

Anticipation of the implementation of the CAP reform, consecutive dry summers, declining farmer interest in dried sultanas (most prefer fresh sultana production and trade) and the gradual loss of foreign markets have resulted in the dramatic shrinkage of Greek dried sultana production and vineyard abandonment by farmers. Greek 2008 sultana harvest is estimated at 70,000 – 75,000 MT (all kinds – fresh weight basis). From this total production, 40 - 45,000 MT will be destined for wineries, 15 - 20,000 MT will be sold at markets for fresh fruit consumption, and the remaining 5 - 10,000 MT will be dried. Farmers who delivered their sultana grapes to wineries in 2007 received about 0.30 Euro/Kg, which they consider beneficial when compared to quality-graded dried fruit prices and the expenses related to on-farm drying.

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