Poland looks to China to market its apples after Russian embargo

Apples have become a "strategic product" in Poland following a drastic fall in exports caused by a Russian import ban, and the government is determined to overcome the crisis by tapping into markets such as China.

Poland, one of the largest apple producers in Europe, exported 888,000 tons of apples in 2015, recording a fall of nearly 19 percent compared with the previous year when it exported 1.1 million tons, according to figures from Eurostat, a leading provider of statistics on Europe.

Polish apples exported to Russia in 2014 accounted for 36.57 percent of the total apple export whilst in 2015 the percentage stood at merely 0.013 percent. Analyst says this was directly linked to Russia's import ban on certain agricultural and food products in response to European Union's economic sanctions against Moscow.

Wholesalers and exporters of Polish apples with a strong exposure to the Russian market have as a result been badly hit.

"About 50 percent of our turnover was done by sales to Russia and we used to send about 30 to 40 trucks of apples a week. However, when sanctions were introduced our turnover dropped by the corresponding percentage," says Mariusz Przychodzień, the export manager of Mr Apple Sp. z o.o., a Polish exporter, located in Edwardow, the center of the largest apple-growing area in Poland.

Wiaczesław Arsieniew, Director of Exports for Prima 2000, another Polish apple producer, says his company has also suffered a drop and the average sales now are less than half that they were when Russia was in play.

Facing the challenging situation, with tons of apples left to be sold, Polish government is looking actively to find new solutions. The "Bicolored Apples from Europe" campaign was a prominent example of the government's resolve to promote the Polish apple and raise awareness of unique features of European Bicolored Apples.

"We want to promote our bicoloured apples --half red and half yellow, to the Chinese market and also the United Arab Emirates because we believe that our apples are better than only one coloured apples," says Karolina Kaminska, Head of the Office for the "Bicolored Apples from Europe" campaign, adding because of "our climate and our natural way of growing them."

The three-year campaign, launched in July 2014, will continue for another year, but Kaminska says already they have seen a lot of benefits.

"Our country has been talking a lot about these new markets. Between Poland and China, the governments are discussing to open the Chinese market to Polish products including apples, fresh fruit and vegetables, which will be a big opportunity for us," she says.

There are three steps to the campaign: first is to discover, then to taste and third step is to enjoy. Kaminska explains that the last year of the campaign is going to be focused on the Chinese market, saying "we are going to have our stands in both Hong Kong and Beijing trade fairs respectively so that we can show Chinese people the unique Polish apple."

Along with the apple campaign, the Polish government has been in close discussions with its Chinese counterparts regarding an apple trade agreement, and final agreement on agricultural imports are expected to be signed soon.

Katarzyna Kacperczyk, Undersecretary of State for Economic Diplomacy at the Polish Ministry of Foreign Affairs, says the access of Polish apples to the Chinese market should be a result of cooperation between both countries.

"We are cooperating very closely with Chinese authorities and we are finishing all the procedural requirements, so we hope Chinese people can find Polish apples on their tables soon," says she.

However, she thinks the major challenge that Poland will have in bringing apples to the Chinese market is marketing, as most Polish apple producers are small and medium sized, an advantage of which is the quality can be assured, but "they also have less resources and less knowledge of the market to do a big marketing campaign compared to big companies and conglomerates from other countries."

Henry Wang, Head of Fujian Oumeng Import and Export Trade, is one of the advocates who believes that there is a huge market for Polish apples in China.

He visited Poland last September and tasted apples in the country, saying Polish apples are crispy, juicy and sweet so the taste is suitable for Chinese people.

"The price level of the apples in Poland is very competitive compared with other apples from New Zealand and the United States, even with the same kind of apples," says Wang, who is keen on importing Polish apples to China, as he trusts there is a big demand, especially the Gala and Jonagold variety of apples.

If the trade agreement is signed, Wang says he would like to import Polish apples from September, as the company have already signed some agreements in Shenzhen and Shanghai with distributors.

To contact the reporter: wangmingjie@mail.chinadailyuk.com