CHERRY PRODUCTION IN BULGARIA
CHERRY
PRODUCTION IN
“InteliAgro”
Author: Nikolay Valkanov
Sofia, June, 2015
BULGARIA
Market and opportunity analysis
WITH THE SUPPORT OF “AMERICA FOR BULGARIA” FOUNDATION
1
CHERRY PRODUCTION IN BULGARIA
Contents:
Summary ............................................................................................................................................... 3
Global tendencies ................................................................................................................................... 4
Cherry production in Bulgaria ................................................................................................................ 7
Demand for cherries in Bulgaria............................................................................................................. 9
Processing............................................................................................................................................ 9
Internal market for fresh consumption ............................................................................................. 10
Export ............................................................................................................................................... 10
Role of support ..................................................................................................................................... 10
Issues and challenges ........................................................................................................................... 11
SWOT analysis ....................................................................................................................................... 13
Application ............................................................................................................................................ 15
Notes and sources................................................................................................................................. 16
About INTELIAGRO................................................................................................................................ 17
2
CHERRY PRODUCTION IN BULGARIA
Summary
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The production of cherries changed under the influence of new developments and
technologies. Rootstocks that constrained growth, new varieties, developing means to
overcome the negative effects of climate allow for early entry into fruiting, higher
yields, larger and harder fruit. Post-harvest handling and marketing play an
increasingly larger role.
The development in production and the growing purchasing power from emerging
markets has led to increased global production of cherries to 3.1 million MT in 2015 35% more than the record 2013.
Turkey is the undisputed global leader in the production of cherries and third largest
exporter after the United States and Chile. In the Balkans, this business remains
popular, especially in Greece, Romania, Bulgaria, Serbia and Albania (intensive
development in the recent years).
The production of cherries is one of the most attractive horticultural sectors in Bulgaria.
The proportion of harvested areas with cherries reached 24% of all trees in 2014
compared to 17.7% in 2007. The production volume ranks second only to apples.
Bulgaria has its place among the leading producers of cherries in the world, but has to
overcome a number of challenges. The varietal and age structure of plantations, the
technologies used and carelessness of many small farmers, have made it so that the
main part of the production goes to processing. The mass cherry harvested in Bulgaria
cannot find market outlets for fresh consumption.
The Kyustendil region, popular for a long time with its cherries is in decline with highly
fragmented ownership of the orchards (average size of 8 decares), old plantations and
varieties. The largest production region in the country is the Southeast one. There is a
growing interest in creating new plantations in Northern Bulgaria.
Bulgaria is part of the overall European market - the largest consumer of fresh cherries
and one of the most affluent in the world. Local producers have the opportunity to take
advantage of new, but already tested and proven varieties of rootstocks and
technologies for planting, formations, and plant protection agents.
For the successful realization of the cherries produced for fresh consumption in
premium markets, investments in quality certification, cooling, calibration, packaging
and marketing will be essential.
For smaller producers (under 50 decares) association will only guarantee investments
in increasing the value added of production.
The role of the state to support the sector should be mainly targeted at external
challenges – the easier and cheaper access to land, water, energy, and property
protection for the producers.
The biggest upcoming challenge will be the lack of specialized and non-specialized
workforce. We expect this problem to exacerbate even more.
3
CHERRY PRODUCTION IN BULGARIA
Global tendencies
World cherry production and harvested areas
2,5
450
400
2,0
350
300
1,5
250
200
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1,0
mln t (left scale)
000 ha (right scale)
Source: FAO
Change in cheery fields (in ha) in Top 15 countries
1994
2003
2013
2013/03
Turkey
18 483
24 000
51 132
113%
USA
20 060
29 433
36 040
22%
Italy
24 599
28 558
30 581
7%
Syria
6 500
11 500
29 536
157%
Iran
15 000
26 686
29 000
9%
Spain
28 000
28 727
25 300
-12%
Chile
3 200
6990
16 243
132%
Russia
24 000
26 000
16 000
-38%
Ukraine
20 000
14 900
12 400
-17%
Greece
9 630
9 400
12 000
28%
Uzbekistan
4 963
4 500
12 000
167%
Austria
8400
8 400
11 349
35%
Poland
9700
11 040
10 879
-1%
Serbia
9%
N/D*
8 500**
9 300
* Total for Serbia and Montenegro – 6780 ha
** Data is based on FAO estimates from which we have
subtracted the presumable areas in Montenegro – approx. 700
ha
Source: FAO
The 15 biggest cherry producers in 2013 (tonnes)
and average yields (tonnes/ha)
Turkey
USA
Iran
Italy
Uzbekistan
Spain
Chile
Ukraine
Romania
Russia
Syria
Greece
Poland
Austria
France
9,6
8,4
6,9
4,3
8,3
3,8
5,6
6,6
11,4
4,9
2,1
4,9
4,4
3,6
4,3
0
100000 200000 300000 400000 500000
Source: calculations based on FAO data
The global production of cherries has changed
significantly over the past 15 years. New
rootstocks were introduced that restrict
vegetative growth and allow more plants to be
planted on the same area, as well as earlier
fruiting. New varieties have been developed
that self-pollinate to give larger and tougher
fruit, suitable for mechanized harvesting, etc.
In parallel, new technologies were developed
to protect crops from frost, hail and cracking;
this now allows precise sorting, cooling and
storage.
All this, together with the increasing
purchasing power from emerging markets, led
to an increase in production of cherries in the
world. The harvested areas have increased by
17% for the 2004-2013 period, compared to
12% in 1994-2003 and are now over 405,000
ha.
Average yields also increased, reaching 5.58
MT/ha for the past five crop years that have
available global data (2009-2013). In
comparison, the average yield in the late 90s of
the twentieth century was 5.24 MT/ha.
As a result, global production was close to 2.3
million MT in 2013, which is an increase of 35%
on the 1.7 million MT in 2004. Global
production will reach 3.1 million MT in 2015,
according to preliminary estimates from
Belrose, Inc.
Turkey has become the undisputed global
market leader in fresh cherries in the last ten
years, displacing the United States. The country
doubled the areas it’s utilizing and they are
now over 51,000 ha, with production
exceeding 494,000 MT.
The areas in the US are also increasing, albeit
at a slower pace. The country retains its second
place as a producer, and we expect production
to accelerate further in the coming years
because of serious investments in intensive
crops, technologies for preventing adverse
weather conditions and others that will bring
higher yields.
4
CHERRY PRODUCTION IN BULGARIA
The 15 biggest fresh cherry consumers in 2013
(in MT)
EU
Turkey
China
Russia
USA
Ukraine
Syria
Uzbekistan
Hong Kong
Canada
Japan
Australia
Chile
Argentina
South Korea
429 152
291 240
213 519
150 145
142 412
66 350
55 000
45 000
32 031
28 600
23 790
16 100
15 300
14 620
13 936
Source: USDA
The 15 biggest fresh cherry exporters in 2013
(in MT)
USA
Chile
Turkey
Greece
Spain
Austria
Poland
Italy
Canada
Syria
Uzbekistan
Kyrgyzstan
Germany
The…
France
66 797
66 600
53 760
23 570
22 378
15 501
10 147
10 082
6 200
5 000
5 000
4 800
4 636
4058
3750
Source: USDA, Eurostat
Cherry production of the Balkan countries, 2013
hectares 2013/11 1000t 2013/11
1. Turkey
51 131
13%
494,3
12,7%
2. Greece
12 000
22%
58,2
31,7%
3. Romania
7 079
3%
80,5
-1,7%
4. Bulgaria
7 520
-46%
37,7
25,5%
5. Serbia
9 300
2%
28,1
-1,4%
6. Albania
2 500
79%
17
18,7%
7. Bosnia
5 600
-7%
10,9
-3,4%
8. Croatia
1 091
43%
6
-33,6%
9. Macedonia
1 300
7%
6
0,3%
10. Slovenia
148
19%
5,4
27,3%
Source: FAO
“The Turkish company Alara Agri Business is
the second largest exporter of cherries in the
world”
Chile has also made remarkable progress,
where agriculture has picked up the pace of
development. Areas with cherries in the
country have increased five times over the
past 20 years. The country has become a major
supplier to the northern hemisphere for fresh
fruit out of season.
Another
interesting
manufacturer
is
Uzbekistan, where in only a few years cherry
fields have increased two and a half times. The
production is oriented towards the Russian
market.
In Europe, Spain began to contain the decline
in its cherry production caused by the removal
of areas with older varieties, the fragmentation
of ownership and low yields. Italy retained its
positions, but due to the structure of their
agriculture, no special expansion is expected.
Global production of cherries will continue to
grow in the coming years, mainly due to the
creation of new gardens in China, Turkey, USA
and other major producers.
The largest market for fruit remains the EU,
where the average consumption per person
was 0.85 kg for 2013. The US is followed by
Turkey and China, with the latter seeing a rapid
increase in customers that can afford the
product.
Global market trends for fresh consumption
are moving towards fruit with a minimum 28
mm caliber (even over 30 mm), dark colour
and a long "shelf life". This necessitates
investment in intensive cultivation of new
varieties (the traditional Bing, for example,
cannot meet the new requirements),
equipment for sorting, cooling and packaging
suitable for a controlled air environment.
More on some current research on new
varieties and rootstocks can be read in the
Annex.
“Albania is fast forwarding the development
of its production. Serbia is entering the
international markets.”
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CHERRY PRODUCTION IN BULGARIA
The largest exporter of fresh cherries in the
world continues to be the US, closely followed
by Chile. Turkey has traditionally been in the
Top 3 of the largest exporters of cherries in the
world, in 2013 the country exported 53.7
thousand MT - 13 thousand MT less than the
first two countries.
An interesting example is Austria, which is not
normally associated with horticulture, but
Europe is oriented in the premium segment
and is strongly advertised and perceived as an
organic producer. Its exports exceed 15
thousand MT.
The Balkan region is also particularly
interesting in terms of cherry production.
Turkey expects production of cherries in
season 2015 to reach 550 thousand MT,
despite a late frost this year.
The main variety is the local 0900 Ziraat with
70% of areas and 95% of exports on the Mazard
planting rootstock and less than Mahalebka.
This means huge trees, and a difficult,
expensive and dangerous harvest. Irrigation is
not used in many areas as well as pruning.
Intensive techniques have been adopted after
2000, as the most promising rootstocks that
have emerged are SL 64, Gisela 6 PHL and
Maxima 14.
Traditionally, the major markets for Turkish
cherries are Germany, with about one third of
the quantities and Russia with about a quarter.
The Turkish company Alara Agri Business is the
largest exporter of figs and the second largest
exporter of fresh cherries in the world. The
company has its own 280 ha of intensive cherry
orchards, certified by GlobalGap and Natures
Choice, which provides produce from May until
August. In addition, Alara Agri works with
nearly 2000 manufacturers, from which they
buy produce. They employ the services of eight
hydrocoolers to lower produce temperature to
two degrees, after which it is transported to
the central packaging workshop in Bursa, which
has a capacity of 400 MT per day.
Alara Agri has investments in cherry production
in Argentina and delivers products to retailers
in 22 countries on 5 continents. The company's
goal is to be able to supply fresh fruit from
different sources 365 days a year.
The greatest increase in areas with cherries in
recent years can be seen in Albania, Croatia
and Greece. While Albania is rapidly developing
its production, Serbia has started to enter the
international markets (mainly Russia and
Belarus). The country is a traditional producer
in the region with an average annual
production of 26.3 thousand MT for the 201113 period.
It is noteworthy that Turkey, Romania and
Greece, which are the largest producers in the
region, are performing significantly better on
the market for fresh consumption than
Bulgaria. Only in the last 4-5 years has our
country returned on the map of exporting
countries, but it cannot boast with any
significant amounts or with winning serious
market shares.
However, Bulgaria has its place as a producer
of cherries because of its climate and natural
resources. Its potential is yet to be developed
and shows significant growth reserves with the
appropriate development conditions.
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CHERRY PRODUCTION IN BULGARIA
Cherry production in Bulgaria
Cherry production and harvested fileds in
Bulgaria
40 000
10 000
8 000
30 000
6 000
20 000
4 000
10 000
2 000
0
0
2007 2008 2009 2010 2011 2012 2013 2014
tonnes (left scale)
ha (right scale)
Source: “Agrostatistics” department, MAF
Size and legal status of producers, 2013/ 2007
number
ha
2013/07 2013/07
Individuals
9 288
6 338
-6%
58%
ЕТ
105
355
35%
-8%
COOP
46
767,7
-21%
-45%
Companies
238
2 429
190%
221%
Associations
18
2%
-28%
18%
Total
9 695
79%
-4%
51%
Source: “Agrostatistics” department, MAF
Average farm size (in ha) by legal status type,
2013/2007 г.
24
16,5
9
5
0,7 1
0,4 0,7
3,4
2006/07
2
2012/13
Source: “Agrostatistics” department, MAF
Distribution of cherry fields by NUTS 2 regions
in 2014 (in ha)
827
657
170
3959
1964
2021
10
3
Cherry production is one of the most attractive
horticultural sectors in the country. In the last
seven years, the share of harvested areas with
cherries from high orchards reached 24%
(2014) from 17.7% (2007). In terms of volume,
production ranks second after apples. In the
first half of the period, its crops have the
highest share among new plants - 20-24%, but
this share is gradually decreasing. Walnuts are
seeing a rapid increase, with new fields
increasing in 2013, pulling them ahead of those
planted with cherries, according to InteliAgro
estimates. Increased interest in the creation of
new walnut trees, in our opinion, is due in no
small part to the Rural area Development
Program (RDP). Such tree varieties have
greater weight in determining the standard
production volume of farms. Furthermore, the
walnut is widely seen as a culture that does not
require special care and can easily be grown
organically and can respectively receive a
higher subsidy.
However, new fields with cherries have grown
in absolute terms - they reached 269 ha in 2013
(14% of new orchards in the country),
compared to 172.5 ha in 2010 (21.3% of the
total). This, according to us, speaks about the
confirmed
potential
development
opportunities for cherries. Investment in new
orchards comes just in time to meet the need
for the replacement of plants that are
physically and production-wise obsolete, that
have remained as a heritage from the
privatization of land in the 90s of the twentieth
century. According to estimates of the
“Agrostatistics” department of the MAF
(Ministry of Agriculture and Foods), by 2007
31% of cherry orchards or 1891 ha were over
20 years old and they are now exiting their
fruiting lifespan. In the next ten years, nearly
900 ha of old trees will come out of fruiting.
Source: MAF, own calculations
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CHERRY PRODUCTION IN BULGARIA
The need for replacement of existing plants is
even greater. The main part of the young
gardens (0-4 years) at the time (2007),
amounting to 2684 ha, were planted with old
technologies and seeds of dubious origin. The
level of consulting services was also
unsatisfactory and the general knowledge of
farmer/investors - quite low. All this
predetermines the quick elimination of some
of these plants in the future or steering their
production entirely towards processing (which
means lower prices of realization).
Another factor that speaks of weakness is the
varietal structure of the orchards. According to
data from 2007, the three main varieties Wang Bing and Early black large, took up 56.5%
of areas. This shows a considerable diversity of
the plantations. Data regarding varieties
created subsequently is unfortunately missing,
but having in mind the entrance of new
varieties in recent years, it can be assumed that
the varietal structure is still too diverse. This
creates a significant problem in organizing
homogenous lots, either for fresh consumption
on the domestic market, but mainly for export,
where significant volume of the same size and
ripeness is sought. For this reason, the export
of fresh cherries from the country between
2000 and 2010 (for which we have data) is
practically symbolic (300-400 MT in the best
years).
Overcoming this problem began with the
establishment of large plantations and
intensive investment in refrigeration systems,
calibration and product preparation. As a
result, exports gradually increased to 3366 MT
in 2013. These examples, although few and far
between, are showing the way for the
development of the sector.
The structure of cherry farms, underwent some
significant changes over the past seven years
(2007-2013). Their number decreased by 4.5%
for the period, but overall areas increased by
50%. The average size of a cherry plantation
increased from 6.5 to 10.3 decares. Most new
plantations were created by companies and
their share in planted areas has reached 24%
from 11% previously. Cooperatives have the
greatest decrease in interest in cherries, as
they reduce both the number of growers and
the average size of gardens. A smaller decline
is seen in the number of individuals growing
cherries, but the average size of their gardens
is growing.
The geography of production also saw some
changes. The traditionally popular cherry
region of Kyustendil has been in decline with
strongly fragmented ownership of the orchards
(average size of 8 decares), old plantations and
varieties. Small farmers do not take adequate
care, with the result being that the output is
low quality and it mainly goes to processing.
The largest production area is in the southeast
of the country, where nearly 4,000 ha (41% of
the total) of farms are concentrated mainly in
the Burgas, Stara Zagora and Sliven regions.
The average size of the gardens is among the
highest in the country - 17 decares.
There is a growing interest in creation of new
plantations in Northern Bulgaria - mainly in
Ruse, Silistra, Razgrad, Pleven, and Dobrich.
There the average size of the gardens is the
largest - 20-22 decares.
The varietal and age structure of plantations,
the technologies used and the carelessness of
many of the smaller producers largely
predetermines the fact that the main portion
of what is being created, going to processing.
The mass harvested cherry in Bulgaria, cannot
find market outlets for fresh consumption. On
the one hand, this market is relatively small
because of the worsening demographic
structure and the low purchasing power of the
population (everywhere around the world
cherries are a premium product that relatively
small proportion of people, with incomes
above the average, could afford). On the other,
many domestic products have difficulties
meeting the high requirements for the demand
in foreign markets.
8
CHERRY PRODUCTION IN BULGARIA
Cherry market structure, 2007-2014 г. (tonnes)
50 000
40 000
30 000
20 000
10 000
0
2007 2008 2009 2010 2011 2012 2013 2014
-10 000
Processing
Export
Fresh consumption
Source: own calculations based on MAF and NSI (National
Statistics Institute)
Market shares of cherry processors, 2013
So a large number of producers - individuals
for whom cherry orchards are a hereditary
source of additional income, are doomed to
drop out of the market in a natural way.
The rest will be forced to settle for lower
purchase prices given by processors. In parallel,
they will have to invest in the replacement of
old crops or the creation of new, intensive
crops, that can gradually enter the market for
fresh consumption, whether domestic or
foreign. However, the only way for the smaller
ones among them (under 50 decares) will be
association and joint investment in
equipment and distribution.
2%
15%
Demand for cherries in Bulgaria
Processing
20%
63%
Kuminiano Fruit
Balkan Fruit
Avius-2003
Other
Source: Annual financial report of the companies, own
calculations
Bulgarian fresh cherries export (in MT)
3366
2180
1257
281
2007
2008
1192
1092
434
107
2009
2010
2011
2012
2013
Source: NSI
Main export destinations in 2014
Tonnes
000 €
Russia
618
659,8
Belarus
195
122
Italy
99
206
Germany
41
86
Lithuania
32
29
Main export destinations in 2013
Tonnes
000 €
Russia
2 538
2 906,8
Belarus
194,5
188,6
Moldova
145
212,7
Serbia
127
102,5
Germany
104
166,7
Source: Eurostat
€/kg
1,07
0,63
2,09
1,36
0,70
€/kg
1,15
0,97
1,47
0,81
1,60
2014
Between 55-60% of cherries in Bulgaria have
been bought for processing during the last five
years. The biggest buyer is “Kuminiano fruit”,
which has been on the market since the early
90s and was established with Italian capital.
The company holds about two-thirds of the
market for processed cherries - its main activity
is the production of pulp. The owners of
Kuminiano fruit have invested in 3,000 decares
of cherry orchards in the Plovdiv region in
recent years, but are still actively buying
produce, mainly from central and eastern
Bulgaria. The company has been processing an
average of between 15-20,000 MT of cherries
in each of the last three years by InteliAgro
estimates. The second place is disputed
between Balkan Fruit, which is also backed by
Italian capital and has similar activities, and the
Bulgarian company Avius-2003.
Serena and Struma fruit, as well as other
Bulgarian companies that are oriented in the
dried fruits segment buy smaller quantities.
The low quality of domestically produced
cherries and the development of processing
have turned Bulgaria into a significant exporter
of canned cherries. The average export volume
is estimated at between 40 and 52 mln. leva
9
CHERRY PRODUCTION IN BULGARIA
(between 5 and 7 MT) for the last five years,
according to data from the NSI.
Internal market for fresh consumption
The market for fresh consumption in the
country has varied considerably in recent
years, depending on weather conditions and
crops. According to calculations based on data
from the "Agrostatistics", it amounts to 1320,000 MT. It is more likely, however, that
these quantities include those purchased by
Romanian traders whose activity increased in
the last 3-4 years and this isn’t reflected in
export statistics. Despite the lack of accurate
data, it can be concluded that the cherry fruit
remains popular in the country, regardless of
the relatively high price compared to other
fresh fruits. Demand for its canning as a bottled
fruit and jams, especially in smaller towns,
creates a market for low quality output that
would otherwise be hard to place, except for
processing.
The major markets for fresh consumption are
the Black Sea coastal region, Plovdiv and Stara
Zagora.
Several Bulgarian companies are taking
advantage of modern retail channels to sell
their products on the domestic market. Among
them are Agroprodukt Group (Trilistnik),
Agrotime (Isperih) and Diva Agro (St. Zagora).
Bulgarian cherries can be found in Metro,
Kaufland, Billa, T Market. However, the
quantities that pass through retailers are still
small compared to the overall market.
Export
Significant export quantities of fresh cherries
have been observed since 2010. Between 8090% of the quantities are directed towards
countries outside the EU - mainly to Russia
(57% in 2014) and Belarus (18%). Exports to
countries such as Austria, Germany, Italy,
Netherlands and Poland are sporadic.
In recent years Romanian traders have been
especially active on the domestic markets, but
the quantities they buy and export are hard to
trace.
The main problem for exports, as already
mentioned, is the difficulty that traders have
with compiling sufficient volumes of
homogenous lots, the lack of cooling and
calibration. Of no less importance are the lack
of quality standards that are upheld in more
lucrative markets. There are only a few
companies certified by GlobalGap (according to
the company's database they are four - RunoKazanlak Ltd., Kapatovo Ltd., Throne Ltd. and
Agrotime Ltd.). Certification would open the
way for Bulgarian cherries to Western Europe.
The difference in the cost of realization
between the EU and CIS countries is over 50%.
While exporters to the EU 28 have received an
average price of €1.58/kg in 2014, these for
other countries have received €0.97/kg.
Role of support
After joining the EU in 2007, the producers of
cherries with more than 10 decares of gardens
began to receive funds under the Single
Payment Scheme per Area (SAPA), as all other
farmers in the country. The payment, which
has progressively reached 30 lev/decare in
2013 played a large role in the development of
grain production, where the cost per unit area
are significantly lower compared to perennials.
From 2012, the Scheme for improving the
quality of fruits and vegetables produced in
Bulgaria (SIFV) was introduced. Through it
cherry producers could be supported with
almost 18st/kg (approx. 0.09 euro cents) of
production that meets the requirements for
quality (up to 700 kg per decare).
There is state aid which compensates
producers for winter spraying of orchards.
Average payment through it in 2013-14,
according to data from the industry, is about 25
lev/decare Applying for it is often problematic
because of the short application window, the
short deadline for notifying that applications
have been received and other administrative
issues.
10
CHERRY PRODUCTION IN BULGARIA
Generally, the larger producers (excluding
individuals with an average garden size of
about 10 decares) could almost entirely cover
the running costs for the year, excluding the
cost of picking.
In the new programing period from 2015 to
2020, the structure of the support is
significantly altered. SIFV is no longer active,
but with the newly introduced direct support
schemes for producers of cherries, they can
receive
between 144-148
lev/decare,
according to preliminary estimates. If state aid
for winter spraying is added to this, then the
running costs will largely be covered.
It is difficult to predict how the size of the
support will affect the level of competitiveness
of Bulgarian producers by the end of the
current programing period. On the one hand,
those who have invested in new plantations
and are oriented towards the fresh
consumption market, will have a higher rate of
return. On the other hand, the level of support
will keep weak orchards on the market, with
low quality production that otherwise would
have been dropped. In the current situation,
where the famine for land is exacerbated and
the need for expansion of already existing
quality gardens will grow, it could play a
restraining role in the development of the
sector.
Issues and challenges
We divide the main problems and challenges in
three main groups, with each of them having
its own particular importance for the
development of the sector.
Firstly, there is the preparedness, training and
skills, the desire to seek and receive new
knowledge from the producers themselves.
Bulgaria lacks ancestral farming because of
more than 45 years of disconnection between
the land and the owner. It is yet to develop
among those producers who manage to
overcome the growing up mistakes and remain
on the market. The lack of understanding that
the only measure of success of an agricultural
business is meeting the needs of the user is also
quite widespread. The belief that agricultural
activity in itself is a value that should be
promoted and subsidized in any way,
regardless of whether or not it brings benefits
to society, is also quite common. The change in
this attitude and finding a sustainable and
balanced approach to satisfy consumer
demand will underpin the development of
successful farming in the country and cherry
production in particular. That means a
continuous engagement of attention to the
changes that occur in the sector and following
its developments.
The second group of problems is just as
important. It is associated primarily with the
development
environment
for
cherry
production and it is difficult to give greater
weight to any of the questions. Solving each of
them is an absolute necessity not only to the
“cherry” sector, but also for agriculture in the
country as a whole.
A major problem is the fragmented land
ownership. This problem will be compounded
furthermore by the increasing number of heirs.
The difficulties that this creates, both for the
current landholders and before the entry of
new farmers into production, requires finding
an acceptable solution that does not exclude
new land division and a new Law for
agricultural land.
Irrigation remains a fundamental problem.
Legalizing old drilling and the obtaining of
permits for new ones are too slow and
expensive (the procedure takes about one year
and can cost between 7 and 10 thousand levs).
There is a pressing need to rethink the
legislation in this sphere and reduce the
accompanying costs.
The next major challenge is related to the
protection of the right to property. In various
areas of the country, it is manifested in two
main directions:
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CHERRY PRODUCTION IN BULGARIA
1) Protecting young trees in new plantations
(there are cases of theft of freshly planted
seedlings);
2) Protection of crops from damage and theft;
In both directions the main victims are small
and medium sized farmers. The violations are
usually marginalized groups in rural areas,
which in most cases go unpunished.
Commenting on the legal and other aspects of
the protection of property rights can’t be the
subject of this study, but we must pay attention
to the fact that the protection of the property
of farmers outside settlements, can be an
enormous challenge.
One of the main advantages of the Bulgarian
cherry producer - cheap labor, also appears to
be a challenge for the sector. The majority of
pickers are from marginalized groups and are
uneducated, without work habits and poorly
motivated. With some of them, in the words of
the producers, work is under duress due to the
lack of other workers. The most common
complaints associated with labor are absence
from work, theft of goods, careless attitude
towards trees (breaking of branches, etc.). The
average productivity per picker is between 60
kg/day (with premium fresh consumption) to
more than 100 kilograms per day. Daily wages
during the last 3-4 years are between 25-35stkg
and can reach in isolated cases up to 60st/kg
for picking quality fruit for fresh consumption
or for export. The majority of seasonal workers
do not want to legalize their relationships with
producers, because they would lose their social
benefits on which they are heavily dependent.
This creates problems for the farmers when
there are labor inspection. It is still early to say
what the impact will be of a new voucher
system for seasonal workers, introduced from
2015, with which they can work legally without
losing their social benefits. However, the main
problems in this regard still remain. The social
assistance system in its present form will
continue to discourage legitimate application
of labor and job search. At present we see no
way out of the difficulties of finding suitable
laborers and this problem is yet to reach its
peak.
The sector suffers from a lack of specialized
personnel - agronomists, mechanics and
experts on plant protection products. The lack
of a connection between business and
education, from which the overall Bulgarian
economy suffers, is also present in agriculture.
The only key here is the interest of those
already in the sector and their children, for
obtaining quality education and training,
because most graduates from agricultural
specialties have no interest in practicing it and
move to jobs in commerce.
Access to electricity is the next major challenge
for a larger investment in cherry fields. The cost
for connecting to the grid start from 32
thousand levs and can reach 80 thousand
according to data from the sector, and the
procedure can take 4-5 months (Doing
Business 2014, World Bank).
The third group of challenges is more general
in nature and is mainly related to the external
environment. Consumption of cherries remains
an emotional purchase of a relatively expensive
fruit. Demand will depend largely on the overall
development of the economy and welfare of
the population.
In addition, exports are affected by the
temporary restrictions and sanctions on trade.
The embargo imposed by Russia on imports of
certain foodstuffs originating in the EU, among
them fresh fruits, damaged the cherry market
this year. Exports declined, including demand
from Romania and as the season progresses
the price of mass cherries dropped by 40-50%
compared to last year.
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CHERRY PRODUCTION IN BULGARIA
SWOT analysis
STRENGTHS:



Good natural and geographical
conditions;
Attractive product with excellent
taste quality;
Traditional production.
OPPORTUNITIES:





Proximity to large, lucrative
markets;
Priority financing through the
new Common Agricultural Policy;
New, tested technologies;
New varieties;
Vertical integration.
The sector has its strengths, such as suitable
natural and geographic conditions. Although
not unique, they enable the launch of early
production – from mid-May, which means
higher price realization and competitive
advantages. The product is attractive and
highly valued for its taste qualities both at
home and abroad.
This again goes to show that without high
quality products, certified under international
standards and without the development of
new markets, farmers will rely on producers
of pulp.
To use these advantages to their full extent,
manufacturers
must
overcome
their
weaknesses. First comes the vision and proper
planning of a garden. It goes through the
following steps:
WEAKNESSES:





Lack of vision;
Relatively low average yields;
Production that is too diverse;
Hard produce realization;
Bad garden structure.
THREATS:





Access to land, water and energy;
Climate factors;
Price fluctuations;
Heightened market requirements;
Access to specialists and pickers.
1) Answering the question: What do I aim
to achieve with my plantation? - a
hobby, premium income, permanent
income for me/my family, a business
that is growing?
2) How much land do I need and are my
plots suitable for growing cherries?
3) Do I have access to water, labor and
other resources needed in the area in
which I plan to develop?
4) Where can I sell the produce and at
what price?
Is there a channel nearby for
premium realization (a summer
resort, large city, large chain store,
etc.)?
- Where can I deliver produce and
what are the requirements (type,
size, variety and preparation of the
13
CHERRY PRODUCTION IN BULGARIA
fruit, certificates, what are the
costs)?
- If for some reason or another my
goods go for processing, will
income cover the costs? Is it
sustainable to sell only for
processing?
5) What are the costs of making the
investment, how will I finance it and
how long will it take to return the
investment?
6) Choosing the right consultant with
which to pick varieties, rootstocks and
the formations that will be optimal for
achieving the objectives of the farm.
Such an approach would remove the current
weaknesses observed in the sector - low yields,
lack of quality, uniform batches, realization
problems and so on. It is also applicable to
already existing gardens and will help assess
the real situation and possibilities for
improving the results.
Positive prospects for the sector are visible.
Bulgaria is part of the overall European market,
which remains the largest consumer of fresh
cherries and is one of the most affluent in the
world. Producers can benefit from already
tested varieties in countries with similar
natural and climate features, as well as
rootstocks, planting technologies, formations,
plant protection agents, to implement proven
technologies in the preparation of the collected
products, protecting crops from climate
factors, types of irrigation. All this gives
opportunities to expand the production
window and increasing yields. Certification
should not be underestimated, traceability of
the produce and marketing, things that can pay
off over and over. The largest manufacturers
should think about investing in calibrating
equipment, cooling and their own packing.
Smaller producers could integrate with them,
creating modern plants of 50-200 decares to
replenish the lots. For smaller producers
(under 50 decares) only association can
guarantee the opportunity for investments in
increasing the production value added.
The above-mentioned path is the one for
producers who want to meet the increasing
demands for export. Entering diverse foreign
markets (and not developing a strong
dependence on a single one) is the only
guarantee to secure a good return in the long
run. The domestic market for fresh
consumption does not have enough promise
(because of demographic and economic
processes) to be relied upon for the realization
of large quantities of quality products.
The increased focus of European support on
fruit-growing development provides good
prospects for financial support for the
restructuring of the sector.
The role of the state in supporting the sector
should be targeted mainly at tackling external
challenges - access to land, water, energy, and
protection of the property of the producers.
The main weaknesses and challenges described
above can be overcome with personal,
collective and state responsibility. The issue of
access to specialized and general labor is
slightly different. Creating good specialists with
practical experience is a long process. It is quite
clear that business will have a major role to
play in this, at first by attracting foreign
specialists and also investing in the education
and training of existing staff. It is unrealistic to
believe that the declining state educational
institutions can create the necessary staff for
the sector.
Perhaps the biggest problem that will emerges
in the future is with laborers. Emigration, the
social system in the country, low wages,
reluctance of working on farms and the poor
quality and work awareness of agricultural
workers represent the greatest threat to the
development of the sector. A potential
expansion of the production of fruit and
vegetables in the country, in line with the
priorities of MAF for the programing period up
to 2020, could face manufacturers with an
extremely acute problem of lack of labor.
14
CHERRY PRODUCTION IN BULGARIA
A solution could be sought in reducing social
benefits and state aid and redirecting them
towards subsidized employment. Such a
decision must always be taken after a proper
analysis of the situation and the prospects.
Application
In the following text you will find the results of
some recent surveys on different varieties,
rootstocks and formations.
Regarding the size of the fruit, among the
largest and already spread varieties in the
Northern hemisphere, we have the proven
Tieton (28-31 mm), Santina (28-30 mm),
Benton (28-30 mm), Sandra Rose (28-31 mm),
Kordia (28-30 mm), Lapins (28-30 mm), Selah
(28-31 mm), Skeena (28-31 mm) and Regina
(28-30 mm). Of these Santina, Benton, Skeena
and Regina have shown exemplary firmness.
However, they can several weaknesses – they
either tend to crack, or have an intolerance to
certain rootstocks, or are not self-polinators
(Oregon State University, 2007).
Varieties like Grace Star, Ferrovia, Sylvia and
Giorgia show the highest yields in the intensive
rootstocks Gisela 5 and Gisela 6 (between 5.6
and 10.4 MT/ha in different formations in the
first five years of fruiting) in a study from the
University of Bologna, Italy between 20082013 from them Grace Star, Ferrovia and
Giorgia give the most promising results with
80-97% of fruit calibers over 28 mm in different
formations (the tested formations are Spindle,
V-system , Super Spindle Axes).
Research conducted by the Institute of
Horticulture in Lithuania on the results of the
performance of the Lapins variety on 12
different rootstocks, distinguished Gi 154/7
and Gisela 4, as the most productive
rootstocks. They received the highest yields for
a five-year period - 8 and 7kg respectively per
tree per year (spacing between trees was 3*5
meters). The lowest yields were registered
from Gisela 5. P-HL-A and Gi523/02 had the
largest fruit and Gisela 5 - the smallest (see
more here).
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CHERRY PRODUCTION IN BULGARIA
Notes and sources
The preparation for this material used data
from internationally recognized sources and
official institutions in Bulgaria (the full list can
be found below), as well as data from meetings
with producers from Kyustendil, Plovdiv,
Burgas and Shumen.
1. Faostat (www.faostat.fao.org);
2. USDA
(www.apps.fas.usda.gov/psdonline);
3. “Agrostatistics” department, MAF
(http://www.mzh.government.bg/MZ
H/bg/ShortLinks/SelskaPolitika/Agrost
atistics/Crop/Posts_copy3.aspx)
4. NSI
(http://ftrade.nsi.bg/portal/page?_pa
geid=34,34792&_dad=portal&_schem
a=PORTAL);
5. Trade register
(https://public.brra.bg/CheckUps/Verif
ications/VerificationPersonOrg.ra)
6. Cherries of the World 2014
(http://www.freshfruitportal.com/wpcontent/uploads/2013/12/cherries_of
_the_world_2014.pdf);
7. World Sweet Cherry Review – 2014
Edition (www.e-belrose.com);
8. “Investment in Sweet and Sour Cherry
Production and New Processing
Programs in terms of Serbian
Agriculture Competitiveness”; Zorica
Sredojević, Dušan Milić, Marko
Jeločnik; 2011;
However, no part of the text should be used as
a recommendation to use a particular type of
seeding technology or choosing varieties,
rootstocks and formations. Please note that
there is no ideal combination of the above that
ensures high yields and realization. Optimal
choice of materials and technology varies
according to the specific soil and climate
conditions of a given location.
9. “Sweet Cherry Cultivars for the Fresh
Market”, Oregon State Unicersity;
2007;
10. “Sweet cherry rootstocks”, PNW 619;
Sept 2010;
11. “New Training Systems for Highdensity Planting of Sweet Cherry”,
Stefano Musacchi, Federico Gagliardi,
and Sara Serra; Dipartimento di Scienze
Agrarie-Alma
Mater
Studiorum,
University of Bologna, Viale Fanin, 4640127 Bologna, Italy; 2015;
12. “Rootstock effect on the performance
of sweet cherry cv. Lapins”, J.
Lanauskas, N. Uselis, D. Kviklys, N.
Kviklienė, L. Buskienė; Institute of
Horticulture, Lithuanian Research
Centre for Agriculture and Forestry,
Babtai, Lithuania; 2012
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CHERRY PRODUCTION IN BULGARIA
About INTELIAGRO
InteliAgro is a legal entity working non-profit for public benefit. Created with the support of the
Foundation "America for Bulgaria" at the end of 2014 our mission is to support the development of
sustainable and competitive agriculture. We believe that the full potential of the sector can be unlocked
through a combination of more effective and efficient management of resources, improving the
conditions for doing agribusiness, reducing bureaucratic burdens and placing Bulgarian farmers on an
equal footing with their European counterparts.
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