Chain of Divjak롰roducers expand exports perimeter
(The watermelon success story)
Artan P쳮aska
apernaska@tiranatimes.com
Former week the first shipment of personal watermelons that had left the Field of Divjak묠south of Tirana and above Vlor묠arrived in the United Kingdom where they will be marketed by Wal-Mart subsidiary companies. Personal watermelons are small, “individual size” watermelons which are reputed to best suit northern European markets, where watermelons are not a local comestible and where the family perimeter is smaller than in Mediterranean countries.
Eight loads to new destination
In all, eight shipments to the United Kingdom (UK) have been contracted, making the UK a new destination for the export of Albanian cultures. The load was confirmed to be OK and to fulfill the standards of the British market. A second shipment parted from Divjak묠on Tuesday the 16th of June. Labels reading ASDA, after the name of a British Wal-Mart’s subsidiary commercializing the watermelons in the United Kingdom, and bearing a bar code are stuck on the small-sized watermelons. Nearly 20 tons of watermelons part with each of the loads. The shipment of the 16th of June is the second in two weeks. The watermelons packed in boxes produced in Albania by Edipack, (located near the portual city of Durr쳩, are charged in trucks that leave from the Field of Divjak롡nd join the United Kingdom through the tunnel of La Manche. This road-trip takes three days to complete and the charge is in the United Kingdom within three days of its depart. The trucks are frigorified and labeling on them reads the name of a Slovenian company. In all, nearly 160 tons are contracted to reach the United Kingdom in eight shipments, making this a new start for the export of the watermelons of Divjak뮠The producers are expecting this to be a positive inaugural step for penetrating a new market and count on better export rate and benefit starting from the next year. United Kingdom is a new exporting destination and perhaps the northernmost EU destination for the Albanian watermelons. Previous exports to EU countries included and continue to include neighboring and close countries such as Greece, Hungary and Romania. In a country frustrated by hampered free circulation of its citizens in the European Union, the joke goes that Albanian watermelons have “joined” the EU. This time the joke may brush it up, adding that the Gulliver watermelons have become Lilliput.
Gulliver label name for Lilliput size
The personal watermelon, or individual size watermelon, is of the Gulliver variety, a “giant” name for such a “lilliput” produce. The personal watermelon weights usually less than 2 kg. Josif Gorrea, manager of the “Bruka Seedling” company explains that the variety was created by an Israelite company in the fashion of so many “mini” eatables that have lately become fashionable in the Western markets. Sabah Sena, specialist for Albanian Agriculture Competitiveness Project, (USAID contractor) and Pirro Rrapushi, manager for market research from the same project, as well as Josif Gorrea believe the variety to be suitable for small personal or couple consume typical for the British market or the North or Western markets in larger sense, since it offers a lower price to buy compared to a big sized watermelon that is costly to buy and not edibly efficient. Generally watermelons are sold on the weight and big-sized watermelons require higher prices to be bought. Small-sized, Gulliver variety watermelons, usually weight between 1 and 2 kgs. They can keep better than single parts cut out of a big watermelon and sold out of the fridge and enveloped in cellophane. As compared to the common watermelon, the personal watermelon can offer a one-time eating step, sells cheaper and does not offer a cut-and-be-left-till-decay perspective.
Marketable profiling
In order to penetrate the British market the Albanian watermelon culture needed to adapt to a different marketable profile, very uncommon to the local produce and the regional taste. Big watermelons are current in Albania and in the Mediterranean region, having the favors of the populace in hot countries where kinship and closeship perimeter is larger than in northern countries. But this Mediterranean local profile, though exportable locally and even northener in the Balkans is not in favor in countries where both the close and permanent social circle is narrower and the watermelon is not a local produce and has crept in over late decades. To adopt to the watermelon global market in expansion, the Albanian producers had to envisage a different profile than what is usual in the country and what is spontaneously grown. Local producers had begun to cooperate, trade and exchange between them, and this cooperation needed a global contemporary international market information and orientation approach. The aid of USAID (The United States Agency for International Development) and the Albanian and foreign specialists provided by this agency was instrumental in orienting and helping create a complete production and supply chain, a value chain, that complies to the standards of the international markets and is open-minded and attentive to opportunities of dealing with them.
The Value Chain
The export of eight shipments of watermelons to the United Kingdom is important not only as a first step to penetrate a new market, but also as a case which fully demonstrates the efficiency of a complete value chain, which begins with enquiries as to exportable produce profile and ends with consumer satisfaction care. The export of personal watermelons demonstrates market research to find new markets and new strategies, with the defining of market needs and requests, selection of the product, adaptation of local produce to market needs, and matching of the standards in order to be exportable and construct a durable relation.
The main difficulties in Albanian agro-business are those related to small-sized land tenure in a country where agrarian land is limited in itself. Three quarts of Albania are mountainous. Not only is the production so split off, but even the market entry is generally atomized. The value chain put up by a group of Divjak롶illagers united in a cooperative labeled “Divjaka 07” and which are the producers of different kinds of melons and watermelons, and the “Bruka Seedling” company, (intervening at the early stage of grafting and selection of varieties and at the late stage of concentration of produce and market introduction), with frigorific depot, with packing from Albanian Edipack and transport to different local or international destinations, helped with USAID projects, has demonstrated viability of agro-business initiatives.
Competitiveness and market efficiency
Competitiveness efforts of the Albanian producers and value chain operate not only with certification of the produce with a product history and safety certification, but also on the timeliness of its commercialization. By beginning to adopt thermal plastic cover for the protection of the watermelon culture, instead of the normal plastic cover, the farmers have not only reduced climatic risks, but have also advanced the market entry of their first productions. It is an early entry in the market, besides pesticide-free treatment and standard-matching that makes the watermelon culture competitive.
“The thermal cover has not only helped me get out of the March freezes (10th to the 12th of March), but also helped me have the first crop as early as the 31st of March and begin sales with prices as high as 50 Albanian Lek롰er kg, while actually prices have fallen to 30 Albanian Lek롰er kg.” – says one of the “Divjak렰7” farmers. Early market penetration is seen in this value chain as a possibility for being competitive as well as for obtaining a better price average, since earlier productions are sold at better prices and upcoming ones at lower prices.
Josif Gorrea who estimates the total of land actually owned or cultured by “Divjaka 07” farmers amounting to nearly 30 hectares, expects turnover of watermelon culture to reach 10000 Euros per hectare. This is far better than the national average of nearly 2000 – 3000 Euros per hectare, quoted by business editor Gjergj Erebara (Shqip, 17.06.2009).
The seedling and grafting nursery belonging to the “Bruka Seedling” company, shows grafting of squash roots with watermelon “capucines”, in order to make the plants more resistant and, by reducing risks and costs of culture destruction, to increase output per hectare. Early market entry, and the construction of a complete value chain may help the cooperative realize expectations beyond even the Divjak롡verage turnover per hectare that is higher than the national average, and which Gjergj Erebara quotes to be nearing 7000 Euros per hectare.
Sabah Sena, specialist for Albanian Agriculture Competitiveness Project, recalls that Divjak롩s perhaps actually the only agricultural region in Albania that crops and harvests three times a year, the other one, the Lezh뮔orovic롲egion beginning to re-swamp again. Sabah Sena recalls also that with Sarand묠further South, Divjak롩s one of the main regions producing watermelons, and he believes Sarand묠growing more interest for agrumes and actually legging behind Divjak뮍
Competition lost by lack of agreements and export policies
Producers from the Divjak롲egion, export to other countries since a long time now. But years have gone and the exports are still hampered by lack of agreements with the European Union (EU) or lack of Albanian state export policies.
As he saw the second truck to United Kingdom off, on Tuesday the 16th of June, Josif Gorrea , manager of the “Bruka Seedling” company, acting as concentrator of the local produce said that “there was an absence of any public institution in the initiative and the value chain having found and penetrated new EU markets” and deplored among others that “no VAT was reimbursed after exports”.
“Albanian producers go un-sided by any policy in their competition with other producers” – said Gorrea, replying that there “are no quota at all” concerning Albanian produces, and that Albanian producers have to pay taxes for commercial exchange with European Union countries. “From 30 trucks a day of full charge of watermelon exports’ shipments we have fallen to 5 trucks per day, as Greek producers pouring actually in the markets are asseted with so many exportation facilities”.
In this situation, Gorrea expects exports of watermelons from Divjak롴o amount to 3000 tons this year. Farmers in the entourage say that besides EU countries like Greece, Hungary and Romania, regular shipments join neighboring Kosov롡nd Macedonia.
The events
The second shipment of personal watermelons left on Tuesday, 16th of June, the Divjak롆ield to reach the United Kindom by Friday. Josif Gorrea, Managing Director of Bruka Seedling Company and Roberta Mahoney, USAID Mission Director, close the doors of the truck and give the see-off. Photo: Artan P쳮aska.
Watermelons of the Gulliver variety are small-sized and generally weight less than 2 kg. The variety is popular among British consumers. The eight shipments contracted for United Kingdom supermarkets contain watermelons of this variety. Its cultivation in Albania is a novelty. Photo: Artan P쳮aska.
Packed for loading, the watermelons bear the ASDA label. ASDA is a chain of British supermarkets, a Wal-Mart subsidiary. ASDA is described as United Kingdom’s second largest supermarket chain, while Wal-Mart is described as world’s largest food retailer. Photo: Artan P쳮aska.
The persons
Roberta Mahoney, USAID Mission Director, being interviewed by Ora News journalist as she was present at the envoy of the second shipment of watermelons to the United Kingddom. USAID has been instrumental in many agro-business projects including the project integrating in the value chain the cooperative “Divjaka 07”, “Bruka Seeedling” company and “Edipack”. Photo: Artan P쳮aska.
Josif Gorrea, Managing Director of Bruka Seedling Company. He reports nearly 90 % of the imported seeds to have been contracted with two Dutch companies and the Israelite company that has created the Gulliver variety as their subsidiary or subcontractor. Gorrea indicates that Bruka Seedling has not exported seeds, but that the company has exported saplings to three neighboring countries. Photo: Artan P쳮aska.
The second shipment to the ASDA supermarket chain in the United Kingdom was also attended by young students of the branch that the Institute of Agriculture (an Agriculture Studies University, situated in Kam캬 in the vicinity of Tirana) has opened this year in the town of Lushnj묠not far from the Divjak롆ield. As they were leaving, young students wearing white USAID-labeled T-shirts and young villagers were represented as the future of Albanian agro-business. Photo: Artan P쳮aska.
