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High interest rates slow down Greek investments

Italian cultivators are complaining about Greek competition. The cheaper Greek kiwifruit would disturb the market. According to the Greek Katerina Katri from kiwifruit cooperative ASEA ARTAS, more is at play. “Italian cultivators are facing big problems in cultivation, but they are far more organized regarding marketing and packaging. Greek kiwis are safer, as limited fertilizers and pesticides are used and, in my personal opinion, they taste better due to ideal weather conditions and soil composition.”


Katerina Katri at the Fruit Logistica.

It is well-known that the Italian kiwifruit sector has problems with diseases. The sector was hit by PSA, which decimates the harvests. “They need many pesticides to continue to be operational,” Katerina explains. Yet the Greeks are looking at the Italian sector with some jealousy. The Italians are more experienced in the field of packing and marketing. “It would be good for Greek cultivators if we could also take care of that. We are making an effort to cooperate within the Greek kiwifruit sector.” The higher prices paid for Italian kiwifruit also appeals to the Greeks.



Small companies
Last year, ASEA ARTAS only had 30 member cultivators. This year, that number has more than doubled to 61. The company, located in the west of Greece, was founded in 1987. Annually, the company trades approximately 3,000 tonnes of Hayward kiwifruit and 150 to 200 tonnes of Gold varieties. “We know exactly what we have in storage, and organise the sales according to quality and maintenance.” The season is from late October to late May. This year, the season will end earlier, it is expected to end late February. As of that moment, Italy will be the only one left on the market, and exporters can profit from that situation.

“We had a lack of low temperatures in the winter, which are essential for the kiwis to be productive, as well as rains and strong winds during blossom ” Katerina says. The kiwifruit harvest was slightly smaller because of that. Katerina counsels cultivators and selects the unsellable products early in the season, for example. The fact that the cultivators mostly have small companies with between one and two hectares, does not always make her job easy. “’ASEA’s great advantage is that we do not buy our kiwis and try to sell, but we cultivate our own kiwis,” explains Katerina. “We monitor cultivation throughout the year to be able to have supreme quality and maintenance.”



Few investments
Total Greek kiwifruit production amounts to about 160,000 tonnes. In the field of storage, however, much can still be improved. “There is not enough capacity, much potential can be found in that field. However, getting financed is very difficult.” Although the economy in Greece appears to be stabilising, it remains a source of concern for the EU. That results in sky-high interest on loans of 11 percent. Investing is practically impossible with similar high interest.

That difficult investment climate also has repercussions on research into new strains. While Spain and Italy invest much into strain development, Greece’s research in that field has practically stopped. “We must invest more in new strains,” Katerina says. Although the market for, for example, yellow kiwifruit is very good, cultivators in Greece can only cultivate the Sorelli variety. “The colour and flavour are more attractive, and prices are better for cultivators,” says Katerina, listing some of the benefits.

Ray of hope for Greek kiwifruit
Yet Katerina also sees a positive development. “Young people are choosing to work in agriculture more often. They collaborate in cooperatives, and that is better for kiwifruit. The young people are looking at management in a completely different manner. We will have a better position next year.”



The climate also has advantages, according to Katerina. “We barely have to use pesticides or artificial fertilisers. The soil is ideal and the weather conditions are favourable.” The west of Greece is characterised by a cold winter and a warm summer. “The kiwifruit of ASEA are not organic, although we do not use pesticides, because of the use of fertilisers.” This year, the first kiwifruit with organic labels are a fact for the cooperative which will be able to trade 300 tons of organic kiwis “That was good news for us.”



The domestic market for kiwifruit is small, only three per cent of the harvest is marketed within the country’s borders by ASEA. Important export countries within Europe are Poland, Germany, Lithuania and Spain. “Europe is a good market, but we also see that the export to the United Arab Emirates, Indonesia, China and Lebanon does well.” Those markets also have to absorb the loss of the Russian market. Until the boycott of 2014 was announced by the Russians, the country was good for 70 per cent of the Greek kiwifruit export.

For more information:
ASEA ARTAS
Katerina Katri
+30 698 085 0402
artakiwi@otonet.gr
www.aseaartas.gr