Berry_Sector_Technical_Assistance1.pdf

AUGUST 2011

This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech ARD.

KOSOVO NEW

OPPORTUNITIES FOR

AGRICULTURE PROGRAM

BERRY SECTOR TECHNICAL ASSISTANCE

BERRY SECTOR

TECHNICAL ASSISTANCE

Prepared for the United States Agency for International Development, USAID Contract

Number EDH-I-00-05-00006-00, TO AID-165-TO-11-00001, Kosovo New Opportunities for Agriculture Program, under the Rural and Agricultural Incomes with a Sustainable

Environment (RAISE Plus) Indefinite Quantity Contract (IQC).

Implemented by:

Tetra Tech ARD

159 Bank St., Suite 300

Burlington, VT 05401

DISCLAIMER

This report was prepared by the New Opportunities for Agriculture project team of Tetra

Tech ARD based on a Final Report prepared by Short Term Technical Advisor, Mr.

Richard A. Dale. The authors‘ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United

States Government.

CONTENTS

BACKGROUND ……………………………………………………………….….…1

PURPOSE OF ASSIGNMENT…………………………………………………..…1

EXECUTIVE SUMMARY………………………………………………………

FIELD ACTIVITIES TO ACHIEVE PURPOSES ………………………………...3

TASK FINDINGS AND RECOMMENDATIONS

Assessment of Berry Production in Kosovo …………………………..…3

Ranking of Berry Crops ……………………………………………..……..9

Feasibility for Fresh Berry Packing and Cold Storage…………….…..12

CONCLUSIONS AND RECOMMENDATIONS FOR FUTURE ACTIVITY …18

ANNEXES………………………………………………………………………….23

STTA Report – Richard A Dale, August 2011 Page 1

BACKGROUND

USAID supports economic growth in Kosovo through programs that strengthen and improve competitiveness of Kosovo agribusinesses, improve the business environment, and encourage local economic development. Accordingly, USAID/Kosovo has awarded

ARD the task order for the New Opportunities in Agriculture in Kosovo Program. The goal of the Program is to increase economic growth in Kosovo through expanded, environmentally sustainable production and sales of value-added agricultural products by enabling producers and processors to compete regionally and globally.

Kosovo currently is growing strawberries, blackberries, raspberries and small amount of currants. There is no known production of cranberries, gooseberries or cultivated blueberries grown in Kosovo at present. The Program is looking to expand and increase berry production in Kosovo and needs to assess and rank which berry crops are best to invest in, and which are least appealing in terms of competitiveness (i.e. cost of production, export and production feasibility and yields). The Program needs to look at the introduction of new berry crops for future new planting opportunities in blueberries, cranberries and gooseberries to expand and increase current production.

PURPOSE OF ASSIGNMENT

The purpose of this technical assistance is to evaluate and assess the production and competitiveness of the berry fruit sector in Kosovo for fresh export, import substitution, and value added frozen and dried food processing. The following are the berries that need to be evaluated:

Blackberries and raspberries

Strawberries

Currants and gooseberries

Cranberries and blueberries

The assignment will provide the Program with a road map for next steps in the development of the berries sub-sector in Kosovo over the next three years. The objectives are to:

1. Assess berry production and processing in Kosovo in terms of its scale and potential for growth;

2. Rank the berry crops in terms of their ability to compete in export markets, and generate sales and jobs. Determine which berry crops the Program should invest in to get the most impact in terms of increased competitiveness, sales and jobs;

3. Determine the feasibility of an appropriately scaled and designed refrigerated pre-cooling and cold storage for fresh berry production and provide recommendations for its establishment.

STTA Report – Richard A Dale, August 2011 Page 2

EXECUTIVE SUMMARY

The commercial berry industry of Kosovo continues to produce the same products in the same manner as was done in many parts of the former Yugoslavia prior to the end of communism and the breakup of the Socialist Federal Republic of Yugoslavia (SFRY).

Essentially strawberries, raspberries, and blackberries are grown and hand-harvested for bulk process export markets—originally as precooled in tankers or block frozen, and more recently as tray or tunnel frozen for Individually Quick Frozen (IQF) for process markets. A part of this production is collected wild berries such as bilberries (commonly called ―blueberries‖) and wild strawberries. The other part of this production is hand harvested cultivated berry crops of cultivars that were introduced during the early 1960‘s.

During the last two decades--essentially the turbulent period of wars and realignment that has disrupted development in much of the region--the global berry industry has been changing dramatically due to technological advances. Many berry crops--raspberries, blackberries, and blueberries in particular-- are now being harvested by machines. Hand harvest of berry crops for processing will remain marginally competitive for a short while longer in the Balkans only due the low wage expectations of domestic farm labor. As living standards improve and wages rise, farm labor is expected to become scarce and expensive. It might be there will be a handful of larger producers in Kosovo who will be able to transform their farm operations to machine harvest, but those who cannot adapt the new technologies due to terrain, economies of scale, or lack of capital will be left behind.

The high quality fresh berries found in most modern markets around the world represent hand-picked fruit. Berries will be handpicked for fresh markets for the foreseeable future.

Prices paid to producers for quality fresh market berries are several times the prices currently paid for process quality berries, and will support higher wages to attract and sustain harvest labor.

The natural resources of appropriate soils, water, and climate that favor small fruits production, exists in Kosovo. The best appropriate cultivars of modern small fruits have already been proven in trials and small plantings here. North American highbush blueberries do well under similar conditions in nearby Serbia. Centrally located, Kosovo is well situated to access European markets. The mild more southerly climate of Kosovo would be expected to enable Kosovo to bring its fresh berry harvest to markets ahead of larger European producers such as Poland and the Netherlands. Continuing lower wage scales would also give Kosovo a competitive edge in this labor intensive industry during the first years of fresh market berry production development.

STTA Report – Richard A Dale, August 2011 Page 3

In light of these findings, NOA should initiate a five point strategy to assist Kosovo in developing a fresh market berry industry for domestic and European markets.

1. Develop in Kosovo a ―knowledge base‖ for fresh market berry production and marketing across the value chain.

2. Initiate North American highbush blueberry production as a new crop for Kosovo.

3. Working with farmers and cold storage processors, transition existing production of strawberries, raspberries, and blackberries to high-value fresh markets.

4. Create necessary access to specialized inputs, technologies, and infrastructure.

5. Support market development and linkages.

As perennial berry crops require time to establish, all of these activities will need to be undertaken simultaneously if significant results are to be realized in the remaining three years of NOA‘s mission.

FIELD ACTIVITIES TO ACHIEVE PURPOSES

Upon arrival, the STTA consultant was briefed by NOA staff members regarding the present conditions in Kosovo, the current state of the agricultural sector here, and the nature of berry sector in particular. Multiple reports pertaining to production, markets, environmental conditions, climate, and potentials provided by the NOA staff were read by the consultant to increase an understanding of conditions in the field. More than 20 interviews, farm visits, and industry tours were conducted to inform the findings and recommendations of this assignment. A listing of the business and stakeholders visited is included in Annex II of this report

Three PowerPoint presentations were prepared:

A Five Point Strategy to Develop Kosovo‘s Berry Industry, An Introduction to North American Highbush Blueberry Production, and

An Introduction to the Production of Raspberries and Blackberries for Fresh

Markets.

The PowerPoint presentations may be seen on the New Opportunities for Agriculture

Program‘s website at www.noakos.com

Two workshop presentations were made to stakeholders to present and discuss the strategies that have been developed to improve the berry production sector for Kosovo.

The first workshop was conducted in Pristina on August 4, 2011 with approximately 25 stakeholders participating.

The second was at Shterpce on August 8, 2011 with 13 stakeholders attending.

http://www.noakos.com/

STTA Report – Richard A Dale, August 2011 Page 4

TASK FINDINGS AND RECOMMENDATIONS

Task 1: Assessment of the berry production in Kosovo in terms of its scale, potential, and priorities for development

SCALE

Kosovo, geographically about the size of the State of Delaware, is a small country with a population of slightly more than 1.8 million people. The Kosovo population is the poorest in Europe with a per capita income of $2,800. 23.6% of the population is employed in agriculture. Although berries is listed 3rd as one of Kosovo‘s principal agricultural products among wheat, corn, potatoes, and peppers; agriculture, as it contributes to the domestic economy, accounts for only 12.9% of GDP. Most farms are small, near subsistence, and inefficient. Small plots, lack of mechanization, and lack of technical information impedes growth of the agricultural sector.

The Kosovo berry industry is small relative to neighboring Serbia and other major

European producers. 35 hectares are estimated to be in cultivated berry crops producing an estimated 400 metric tons, most of which is dried, juiced, or frozen as processed bulk products to be exported. An additional 1100 metric tons of berry products are collected wild berries, mostly bilberries (commonly referred to as ―blueberries‖) and wild strawberries. Most common cultivated berries include strawberries, raspberries, and blackberries. North American highbush blueberries are not as yet grown commercially in the country. All of the berry crops are harvested by hand, or in the case of wild bilberries, hand raking. Small amounts are sold fresh in local green markets and grocery stores, often poorly packaged and unrefrigerated.

Serbia was once a major channel for berry products produced in Kosovo, but the current political standoff and subsequent boycott has made this trade increasingly difficult. Many routes through the former Yugoslavia to Central and Western European markets are also closed to Kosovo transit.

POTENTIAL

The future for a Kosovo commercial berry industry that could compete regionally, pay good wages to farm labor, offer good returns on investment, create additional jobs in a distribution industry, and contribute to the national economy is in the production of berries for high value fresh markets.

Present production is mainly collection of wild ―forest‖ crops such as bilberries and wild strawberries, or in the cultivation of older domesticated varieties of raspberries, blackberries, and strawberries which continue to be hand picked for processing. Cold storage processors who are the receivers of these raw berry products have been reporting for several years that the numbers of people collecting wild fruits continues to decline.

Farmers likewise are recognizing that it is getting increasingly difficult to hire harvesters for their cultivated berry crops. This trend will continue as living standards rise and workers demand higher wages.

At the same time, in major berry production regions of the world the harvest is being mechanized. Already in Canada and the USA nearly 100% of raspberries and blackberries harvested for process utilization are picked with a machine. The same trend

STTA Report – Richard A Dale, August 2011 Page 5 is occurring in Europe. Already, Libertas, the largest producer of berries in Serbia employs four self-propelled Korvan berry harvesters in its raspberry operations near

Šabac. Machine harvested berries already determine price offerings for processed berries. Hand picked berries from the Balkan regions or from the former Soviet

Republics in Eastern Europe will only continue to compete marginally until harvest labor will no longer be sustained by the prices paid.

Berries for the fresh market are picked by hand everywhere they are produced in the world. More than leveling the playing field for a potential Kosovo fresh berry industry, this fact tips the immediate situation to the advantage of Kosovo producers. Even as wages will rise, it can be expected that farm wages paid in Kosovo will be below Western standards for some time. Labor expense accounts for more than 50% of the cost of production in the fresh berry industry. This immediate condition will create large competitive margins for Kosovo.

SWOT Analysis Fresh Market Commercial Berry Production for Kosovo

Strength Weakness Opportunity Threat

Production

Good soils, water, climate, reasonably good transportation infrastructure, producer interest, and strong farming traditions exist

Lack knowledge regarding fresh market berry production. Lack special inputs, herbicides, & plant materials

Higher prices paid for fresh berries will support increased wages for farm labor and other transition costs

Site selection is critical: Climate, soils, drainage, and/or available water may prove unsuitable for optimum results

Quality

The best fresh market cultivars of raspberries, blackberries, strawberries, and currants have been proven to be well suited to the region

Older cultivars of berries presently grown are not suitable for fresh markets. No experience with

Highbush blueberry culture.

Support training for fresh market berry culture, new plantings of modern cultivars, & establishment of farm-to-market cold chain

Set attitudes and behaviors from producing for process markets.

Lack of fresh market harvest

& post-harvest experience

Competitive

Position

Regional

Markets

Kosovo & adjacent markets are wide open for development as currently there is little offered.

Kosovo is not presently a producer of cultivated highbush blueberries

Expatriates living in Kosovo supporting various missions are an immediate potential market

Present

Unemployment and low incomes may restrict domestic retail purchases

Competitive

Position in

Global

Markets

Close proximity to

Central and Western

European markets.

Harvest labor costs will be lower than most competition.

It will take time for Kosovo to emerge as a producer of cultivated HB blueberries

Seasonal entry into the market will likely be two weeks ahead of major producer

Poland.

Obstruction by

Serbia and lack of full EU recognition could restrict access to some markets

STTA Report – Richard A Dale, August 2011 Page 6

Despite present political difficulties with some of its immediate neighbors, Kosovo is well situated for the long term close to strong markets in Central, Southern, and Western

Europe. Also, because of her mild climate and southerly location relative to competing berry production in Poland, Russia, and the Netherlands, it can be expected that Kosovo berry crops will be early into European fresh markets ahead of most of the competition.

Temperate climate berry crops grow in Kosovo. Even the best new cultivars for fresh markets are proven. The climate, soils, sunlight, and water are right. It is not a question as to whether or not the crop is suitable or can be produced—the questions are how will it be marketed—and is Kosovo able to do what needs to be done to address that market.

PRIORITIES FOR DEVELOPMENT

To achieve the largest results for the Berry Production Sector of NOA‘s mission, within the time remaining, a strategy to:

a.) transition existing production to higher value markets, while b.) supporting proven entrepreneurial potential for major new initiatives, should guide the priorities of the project. Effort and resources can not be committed to stakeholders who lack experience, production potential, proven commitment, and vision.

As process berry fruit is low value, and hand-harvested-fruit-for-process is rapidly becoming non-competitive and obsolete, c.) the focus of berry production for Kosovo going forward should be on high value fresh markets.

A ―Shot Gun‖ approach, where all priorities are addressed simultaneously will need to be implemented, since time constraints of the project will not allow for a more linear development plan.

1. Build a “Knowledge Base” for Fresh Berry Production and Marketing

As has been stated, present berry production in Kosovo reflects the hand-harvest for process berry production established throughout the former Yugoslavia during the post-

WWII period. As has been also stated, hand picked berries for process markets will be unable to compete in the future as living standards and wages rise. High value markets will be required to sustain production. It should not be assumed that because a family has produced strawberries, raspberries, or blackberries for a generation or more that they will be able to successfully produce for fresh markets. In some ways their traditions and habits may actually work against them. They need to understand clearly that standards that can pass for process fruit may not be acceptable for demanding fresh markets.

Fresh market quality for small fruits is first based upon selecting the proper cultivars for production—varieties that are large, attractive, flavorful, and that have enhanced shipping qualities and shelf life. As important as varietal selection, are the conditions under which the fruit is grown. Weeds, disease, and insect pests must be effectively controlled.

Supplemental irrigation is a given. Tunnel production might provide added protections or more profitable harvest ―windows‖. Finally, the manner in which the berries are harvested and handled in the post-harvest is critical for quality. Harvest must be timely, dry, and gentle. Packed in an industry-appropriate package, berries must be immediately pre-cooled to check respiration, and kept humidified to avoid moisture loss. Finally, fresh market berries must be stored, shipped, and displayed at optimum temperatures to prolong

STTA Report – Richard A Dale, August 2011 Page 7 shelf-life. Once the ―cold-chain‖ has been established, it must not be broken until purchased by the ultimate consumer.

These essential requirements must be taught, in detail, to everyone in the value chain:

producers, harvesters, shippers, distributors, and retailers. A regular series of training programs will need to be provided to include presentations, field trips, and farm visits.

Old habits will have to be broken, new methods and technologies adopted and careful attention must be given to detail. The rewards will be worth it to all involved. Prices paid to farmers can be expected to be 4 to 10 times more than what is presently received for processing fruit.

2. Initiate Commercial Blueberry Production for Fresh Market

The establishment of commercial North American highbush blueberry production for fresh markets should be a high priority for NOA. Kosovo will have several competitive advantages to be able to participate in this rapidly evolving new fruit industry for Europe.

Three years will not be enough time to see a significant amount of Kosovo blueberry crop entering regional markets, but it is enough time to prepare the foundations of an exciting new fruit industry, and produce a ―show piece‖ result that will inspire future investments.

A successful entrepreneurial investor with both the expressed vision and the means to successfully implement should be selected and supported in this initiative. Five hectares of production, with the capacity and desire to expand to ten or more hectares, would represent a minimum qualifying proposal.

One such candidate would be Bujqesi at Peja, Mr. Florim Shala, owner and manager. Mr.

Shala owns several businesses; including privatized agricultural land on which he has established a successful dairy and beef farm (100 milking cows). He has expressed an interest to diversify his farm business with up to 20ha of fruit plantings. His plan is to

―specialize‖ in apples and/or blueberries. An excellent site was inspected. Soils and drainage look promising. The pH was tested with a result of 5.5. Irrigation is available.

He indicated he could have the field fitted and ready to plant by fall 2011.

A well designed 5ha plantation with proper row and plant spacing would require 13,890 blueberry plants (2778 plants/ha) valued at $49,310 plus shipping. This purchase could be cost-shared with the stakeholder. Cultivar selections can be informed by comparison with known successful Serbian plantings in similar climates. NOA could provide close technical support either through STTA consultant involvement, involvement of a trained staff specialist, or by linking the stakeholder to a private sector blueberry nursery and consulting service such as Fall Creek, of Oregon.

A feasibility study follows in this report for a fresh berry packing and cold storage facility

– for estimated costs see Annex VII. It is recommended that such a facility should be sited at, or very near, this commercial blueberry plantation development. Access to immediate pre-cooling, packing, and cold storage will be required by the producer to insure the highest quality product for fresh markets. It may be that an existing building could be made available for this purpose by the stakeholder. Equipment and refrigeration could be cost-shared.

The Blueberry Enterprise Budget included in Annex III of this report will be helpful in developing a business plan with the stakeholder. As demonstrated by the budget, a conservative estimate is that, as the plantation approaches maturity, it would yield in excess of 91,680# (41,673kg) of blueberries annually for a gross value of $187,526

(132,117€).

STTA Report – Richard A Dale, August 2011 Page 8

3. Transition Existing Production of Strawberries, Raspberries, and Blackberries for Fresh Market by Supporting Cooperating Farmers and Cold Storage

Processors

A strategy to transition from process to fresh markets would be to support existing cold storage processors to work with farmers presently supplying product to their collection sites. NOA could cost share appropriate pack-line equipment and pre-cooler and/or refrigeration upgrades to accommodate fresh market handling of berries. NOA could also provide market research and linkages for cold store operators to be able to enter new markets. Cold Storage processors wanting to plant their own plantations of berries to supplement the volumes they are purchasing from others for fresh markets could be eligible for cost-shared plant materials. Processors might also act as ―farm service centers‖ to their community of farmers by supplying them with special inputs, packaging, and rental equipment such as sprayers, mowers, and rotary tillage.

As a first step, growers would need to replace older plantings of strawberries and brambles with newer fresh market appropriate cultivars. NOA would secure quantities of plants that can be made available to qualifying farmers. Costs could be shared. Each farmer would be allowed to receive sufficient plants to replace up to 1 hectare of present production. Farmers already producing appropriate cultivars would be eligible for plants sufficient to plant up to 1 hectare of additional production. Sites would have to be inspected and approved by NOA for suitability. Farmers within 5 kilometers of a participating cold storage processor/distributor; or who will develop on-farm pre-cooling, packing, and refrigerated storage; would be given priority for plant material allotments.

Rather than creating a parallel industry from scratch, such a plan would take advantage of existing expertise, investment, and production, as well as reduce redundancies and foster cooperation.

4. Create Access to Specialized Inputs, Equipment, and Facilities

Constraints to either establishing new berry production for fresh markets, or transitioning existing berry production to fresh markets, will be access to necessary specialized inputs, equipment, and facilities.

Appropriate Planting Materials: Farmers to do not currently have readily available sources for fresh market appropriate cultivar planting materials. NOA could facilitate importation and cost-sharing of plant materials for farmers in the short term, and support the modernization and expansion of one or more existing domestic fruit plant nurseries to become the supplier/s for the long term.

Chemicals: Appropriate pesticides, especially herbicides for weed control, are reported as not readily available to farmers. The recently approved Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP) should be amended to include EPA approved herbicides for use on berry crops. Once amended, NOA should make this IPM recommended program, with approved EPA and Kosovo MAFRD approved controls, available to farmers and enlist the cooperation of Kosovo farm chemical suppliers to stock these supplies.

Soil Conditioners and Special Fertilizers: Products such as Soil conditioners, e.g.

elemental sulfur to lower pH for blueberries, and special fertilizers such as ammonium sulfate (again primarily for blueberries) or foliar applied fertilizers or nutrients such as chelated iron need to be available to farmers as needed. Farm input suppliers need to be introduced to these products and encouraged to make them available.

STTA Report – Richard A Dale, August 2011 Page 9

Packaging: Industry standard clamshell packaging with mated masters will need to be made available as appropriate packaging for fresh market distribution. Inventories of these supplies could be made available through the cooperating cold storage processor/packers who will receive the berries and for pre-cooling, packing, cold storage and distribution to fresh markets. Such an arrangement would assure that the community of farmers supplying the processor/packer would all be using the same package for uniformity of product.

Special Equipment: The cold storage processor/packers might also function as ―farm service centers‖ to their community of farmers by owning and maintaining an inventory of rental special equipment. Walk behind rotary tillers, air blast sprayers, mowers, or other identified special implements could be purchased on a cost share basis with NOA and made available to farmers on a rental basis. Pack-line equipment, pre-cooling units, and appropriate cold storage could be cost shared with larger producers for on-farm installation, or existing cold storage processors could be supported to remodel their facilities to enable them to handle fresh market berries received from multiple producers.

In this case, retail ready fresh market berries would diversify the present product line.

5. Support Market Development

NOA will work with the value chain to identify, support, and link fresh markets for

Kosovo producers. Domestic terminal wholesale markets and retail outlets will be informed as product becomes available. Educational materials and/or training presentations will be provided to stress the need and importance of cold-chain maintenance. Assistance will be provided for promotion and proper merchandizing of

Kosovo fresh berry products.

As projected supply increases, NOA will work to identify international export markets and link Kosovo producers to potential foreign wholesale buyers. NOA will also work with producers and shippers to resolve logistical issues related to shipping.

Task 2: Berry crops ranked in terms of importance to compete in export markets, to generate sales, and to generate jobs.

Berries for the fresh market will continue to be harvested by hand world-wide. The higher prices paid for high quality fresh market berries provide margins of profit that enable higher wages to be paid to harvest labor. This is likely to be the case for the foreseeable future. As it is unlikely anytime soon that Kosovo will have sufficient production of berries on adaptable sites that could warrant capital investment in mechanization of harvest, it is recommended that existing, expanding, and new berry production for Kosovo focus on high-value fresh markets that can support well paid domestic hand-harvest labor. Recent fresh market berry prices in Serbia are given in

Annex IV of this report

1. Blueberries

Among berries that might offer opportunity for a Kosovo fresh-market berry industry, cultivated Highbush Blueberries would top the list. Of all the berry crops, cultivated blueberries exhibit the highest tolerance to handling and shipping, and offer excellent

STTA Report – Richard A Dale, August 2011 Page 10 shelf-life. A North American native, cultivated highbush blueberry is still a new crop for

Europe. Nearly 85% of world production is centered in the USA and Canada. Since

1970, Poland has emerged as the major producer of cultivated highbush blueberries for

Europe with 2,000ha now in production, but Poland still only accounts for 10% of the world crop. There is considerable opportunity for additional production in Europe, especially for the fresh market. Recent credible studies revealing the spectacular health benefits of blueberry consumption have been widely reported creating a sustained surge in consumer demand. Current fresh markets are strong and prices paid are high.

Kosovo could expect to compete well in West European markets. Prices offered to

Kosovo growers could be expected to be on a par with other European producers.

However, as cost for labor can represent 50% or more of production costs for fresh market berries, current Kosovo labor costs would be a fraction of labor costs borne by competitors from other regions. Although Poland is the major producer in Europe, its northern geographic location, relative to other Central European countries, will dictate the calendar for its harvest. It could be expected that similar cultivars of blueberries grown in

Kosovo‘s more southern location and climate would precede the Polish crop in the market by two weeks or more. The earliest crops bring the highest prices to those who can produce them.

The down side to highbush blueberry production is that the plant is very slow growing, and requires a considerable pre-productive period to establish. The first small harvest generally can be expected during the third year following planting, and a full harvest will not be realized for 8-9 years. Well cared for plantings, however, have continued to produce for more than 35 years providing a long return on investment.

There is no present production of blueberries in Kosovo. Producers willing to establish production will need considerable technical support in the first years of establishment and production.

2. Raspberries

Red Raspberries would rank second on the list of fruits to be considered for fresh market production in Kosovo. Measure for measure no fresh berry brings a higher price on current markets than high quality fresh raspberries. Although production for the fresh market is demanding, fresh market raspberries will be highly rewarding for those who can succeed in producing them.

The basic horticultural knowledge for growing raspberries is present in Kosovo; however the commonly grown Willamette and Meeker cultivars are not appropriate for fresh market and will need to be replaced. Fresh market raspberry production requires modern cultivars that offer spectacular size, color, flavor, and firmness for increased shelf-life.

The best summer bearing (floracane bearing) raspberry for the fresh market is currently

Tulameen, the best fall bearing (primocane bearing) raspberry is Polka. Both are proven in Kosovo, and are rapidly being accepted by Kosovar growers. The crop must be grown to exacting standards, blemish free. Well managed supplemental drip irrigation and control of weeds, insects, and disease is essential. Production in tunnels might be considered to extend early and late harvests as well as to improve berry quality.

The larger challenge may be the implementation of the appropriate harvest and post-harvest handling strategies and techniques that are essential to the quality and improved shelf-life of the product. Attitudes and behaviors that will need to change will be encountered in the presently available work force. Operations need to be timely and

STTA Report – Richard A Dale, August 2011 Page 11 gentle. There can be no lags or breaks in a cold-chain that must be established from farm to consumer.

3. Strawberries and Blackberries

Strawberries and Blackberries are also presently grown in Kosovo, often by the same farmers producing the raspberries. While blackberries in the fresh market are less in demand than some of the other berries, they are gaining in popularity. Strawberries, on the other hand continue to be the most popular fresh berry fruit in the world. Kosovo growers are already working with improved cultivars that would be suitable for the fresh market. Elsanta is the most commonly grown strawberry. Chester is the most commonly grown blackberry. Both are appropriate for fresh markets. Much of this fruit is produced, hand-harvested, and marketed bulk in way similar to raspberries for processing, and is often purchased by the same domestic receivers.

There are some larger growers already producing for the fresh market. Agroviszioni at

Lypjan produces 5ha of strawberries for Pristina markets. Some of the production is grown under row covers to extend the harvest season. Extensive investment is being made in new cold and controlled atmosphere (CA) storage facilities. 75% of the strawberry production at Agroviszioni is Elsanta. Bio-Buzmi, at nearby Ferizaj also markets a considerable volume of fresh strawberries to Pristina. These businesses, and others like them, should be supported in their efforts to expand their production and improve the quality of their products. They will serve as a model to be emulated by others.

4. Red Currants and Gooseberries

Red currants and gooseberries are both in the

Ribes plant family and as such require similar sites and environments for production. Both will grow on heavier soils that may present problems for most other fruits. Both are minor crops with regard to market demand.

However, red currants (which range in color from white to deep purple), can be eaten as a fresh fruit and are gaining popularity, especially with restaurants for use in fresh salads or as a garnish on meat dishes. They may present an alternative opportunity for producers whose sites are less favorable for other fruit culture or as a high-value diversification for growers of more traditional crops.

5. Black Currants

Black Currants are exclusively produced as a process fruit for juices, concentrates, jams, sauces, and jellies. Specialty wines and brandies are also produced from black currants.

It is a popular ―fruit flavor‖ in Europe—usually included in the ―rainbow‖ of fruit flavored products from soda and juice to frozen pops and candies. In the USA it is little known as yet due to early 20 th century prohibitions against its production. The plant was an alternative host to a devastating disease afflicting five-needled pines. Disease resistant or immune varieties of black currants are now widely available.

STTA Report – Richard A Dale, August 2011 Page 12

The crop has been traditionally hand-harvested throughout Europe—especially East

Europe where it is widely grown, however, like raspberries and blueberries it is adaptable to machine picking and harvests in Europe are being mechanized. There could be some opportunity for Kosovo as it has been demonstrated that it will grow well here in selected areas. Like Gooseberries and Red Currants it will grow well in heavier soils less suitable for other berry fruit crops. It could be a diversification crop for larger blueberry growers if machine picking would ever be implemented, as the same harvest and post-harvest technologies can be applied to both crops.

6. Cranberries

Cranberries are not recommended for this project. In the first place they are exclusively a fruit for processing. Secondly, ―bog production‖ is the most usual method for cranberry production in North America, where 95% of the world‘s crop is grown. Very specific sites are required with acidic soils, sand base and a high water table. Diked ―bogs‖ are flooded at various stages of production for harvest, stem removal, and winter protection.

Establishment usually involves a lot of heavy earth moving, engineering, and permitting for water use and discharge. Finally, the culture for the crop is unique from the experience of other fruit culture. Comprehensive training and ongoing technical assistance from North American cranberry experts would be required.

Task 3: Feasibility for an appropriately scaled and designed refrigerated pre-cooling and cold storage for fresh berry production and recommendations for its establishment.

Only the highest quality fruit is appropriate for the fresh market. A large part of ―quality‖ relates to production on the farm, but just as important to ―quality‖ are harvest and post-harvest handling practices and systems to which the fruit will be subjected. Berries, often categorized as ―small fruits‖, and perhaps more appropriately as ―soft fruits‖, are the most fragile products of the fresh produce industry. They have demanding harvest and post harvest handling requirements and relatively short shelf-life under the best of conditions.

Although there are some basic principals that apply to the harvest and handling of berry fruits in general, each fruit presents unique requirements and, in some instances, opportunities. The differing characteristics of the berry fruit that will be handled needs to be considered when planning a cooling, packing, and cold storage facility to serve the fresh market.

Raspberries present the greatest challenge as this fruit has very thin skin, soft watery pulp, and very high respiration rates. The best modern varieties for fresh market, properly produced, free of blemish, picked in a gentle & timely manner, properly pre-cooled, refrigerated, transported, and displayed at optimum temperatures and humidity, will have a shelf-life of 7-10 days. Older processing cultivars, such as

Willamette and Meeker, poorly picked and handled, without pre-cooling or cold-chain to consumer, have shelf life of only 1 day.

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Raspberries for fresh market should be hand-harvested directly into the tills that are the sale packaging. In this system, the berries will be touched once—and only once—which is when they are picked. Pickers are trained to ―sort‖ in the field, placing only ―perfect‖ fruit in the tills. Fields should be harvested every second or third day to prevent over-ripe fruit from being presented to the harvesters. The berry receptacle, with its stem, should be left on the cane. If the berry is not ―releasing‖ readily, it should be considered under-ripe and left for the next picking. Every effort should be made to be as gentle as possible.

Once picked, the harvested fruit should be kept out of the sun under shade. Clean damp muslin draped over the flats will keep the fruit hydrated and cool until it can be pre-cooled. Raspberries need to be pre-cooled within two hours following picking. Every

5ºC reduction of temperature can reduce respiration by as much as 50%. For every hour of delay in pre-cooling, shelf life of fresh raspberries may be reduced up to one day.

As sorting and grading is accomplished in the field, shed requirements for fresh raspberries, blackberries, red currants and strawberries might only need to address cooling, refrigerated storage, and hygiene. A pre-cooler for these fruits would be a cold room of sufficient capacity to receive the daily harvest. A rapid-recovery refrigeration system must keep the room at a temperature of 9ºC. Harvested fruit is stacked in its appropriately vented flats or lugs in opposing ―walls‖ and ―roofed‖ with panels or battened tarp. A high volume fan is placed in the open end of the tunnel to draw cold air through the stacked berries. Use of convection air cooling in this manner rapidly removes field heat from the fruit and greatly retards the respiration process—ideally in less than one hour.

Cold Air

Cold Air

Warm Air

TThhiiss ssyysstteemm rreessuullttss iinn RRAAPPIIDD aanndd EEVVEENN ccoooolliinngg

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Berries stacked in a ―still-air‖ cooler will actually experience a rise in temperature during the first hour of cooling due to continuing respiration, and may take as long as six hours to approach the desired 9ºC pre-cooled pulp temperature.

Blueberries require the same attention given to cooling and cold-chain, however the thicker skin and denser pulp of the fruit allows it to be bounced and rolled a bit which enables it to be harvested mechanically or by hand shake to bulk lugs and then air-cleaned, sorted and packed with semi-automated shed equipment.

Most fruit for fresh market is still hand-picked—most often to a pail on a neck strap of the harvester. Smaller bushes can be more efficiently harvested using a hand-shake to a catch-tub method.

Machine harvest of blueberries removes the fruit from the bush at a rate up to 100 times the rate of a single hand harvester. This is accomplished by ―shaking‖ the bush and catching what falls. While the newer machines are amazingly clean and efficient, there is still material--leaves, green fruit, damaged fruit, the occasional insect, even a stone or machine part now and then--that needs to be sorted from the berries before they can be packed for market.

This sorting is accomplished by machinery expressly designed for the purpose. Both mechanical harvesters and shed equipment are available in a variety of sizes and capacities. In the USA, farms as small as two hectares of blueberry production may find mechanical harvesting and on-farm packing and cold storage affordable and cost effective.

Some of the same equipment, with minor adjustments, will also process black currants, gooseberries, and lingonberries. At this time in Kosovo with the low cost of labor, hand-harvest would be recommended, however appropriately scaled on-farm cooling, cleaning, packing, and cold storage may be desirable.

Several well established companies manufacture equipment for the berry packing/processing industry. Lakewood Manufacturing of Holland, MI assisted with design and quoted prices for the equipment making up the fresh pack line described in this report. Blueberry Equipment Incorporated (BEI) of South Haven, MI made the original recommendations for a plant layout. Additional design considerations were added from the experience of HIGHLAND VALLEY FARM at Bayfield, WI which has been using a blueberry fresh pack line, similar to the one proposed, since 1996.

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Blueberries packed for the fresh market ideally are cleaned and sorted using a ―dry‖ line system. The dry line system, while being somewhat more labor intensive, is simple to operate and less costly to capitalize than alternative systems.

Most importantly a dry line system will produce the highest quality fresh product. An alternative

―wet‖ line system would yield primarily a process quality product.

The basic dry line system for blueberries begins with convection-air pre-cooling where field heat is quickly removed from the berries as they are received from the field.

As with brambles and other soft fruits, a 9ºC cold room with rapid recovery refrigeration is recommended. Timely pre-cooling can add as much as 7-10 days of shelf-life to the fresh blueberry product.

After pre-cooling, the fruit is put on a chain-link inclined conveyor and passes through an “airblast- cleaner”. An engineered stream of air passes through the fruit on the conveyor lifting out anything lighter in weight than a ripe berry. Leaf litter, loose stems, insects, dust, even small green fruits are effectively removed.

From the air cleaner the fruit moves across a “tilt-belt sorter” where 80% or more of the soft or damaged fruit is removed, as well as connected berry clusters and any trash that passed the air cleaner.

Firm undamaged fruit, that can roll easily, crosses the

―tilt-belt‖ and onto the‖ inspection conveyor belt”.

Workers visually inspect the fruit as the berries pass beneath special lighting and remove any remaining defects—at this point mostly under-ripe berries. The last inspector on the line has control over the process and can shut the line down momentarily for the sort crew to catch up as needed.

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The berries move from the inspection conveyor to the

“clamshell filler”. A ―denester‖ can be added to automatically place clamshell tills on the line to be filled.

The machine fills clamshells to a set volume. The filler can be adjusted to fill clamshell packages as small as 125gm to clamshell containers as large as 2-3kg. After passing the filler, the clamshells can be automatically closed. Labeling can be automated on the line following closure, or packaging can be pre-labeled prior to the harvest season.

The filled clamshells move onto a ―lazy-susan‖ from which they are picked up and assembled into flats or cases and labeled. Finished flats of berries are then palletized and moved to the cold storage area where they are held pending shipment. The cold storage room should be maintained at 0-

1ºC and 95% humidity to retard respiration and prevent moisture loss.

Additions or options can be made to the line, as deemed necessary, to meet more demanding specific customer product requirements. A computerized ―color sorter‖ will grade to a specific degree of ripeness, a ―destemmer‖ will remove retentive stems (a problem of some cultivars only and most usually in the later part of the harvest season), a ―sizer‖ will grade and sort berries according to consistent size, a ―box filler‖ can be substituted as an alternative to the clamshell filler, and a ―metal detector‖ can provide assurance that no metal is passing on the line. Also, the labeling process can be automated following the clamshell filler or box filler.

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Requirements for the building are that it be cool: at the very least insulated from late summer heat, and preferably air conditioned if heat build-up is a problem. It must exclude vermin and insects and should have cleanable wall and floor surfaces. There must be sufficient floor space for the convenient temporary placement and movement of pallets of packaging supplies and full and empty field lugs. The walls and floor surfaces need to be able to sustain high humidity and regular hosing with water. The production floor needs to feature a central grated gutter-style drain to receive the wash from daily equipment and floor cleaning. Adequate facility for employee lockers, rest rooms, and hand washing must be provided. Lunch room and management office space are options.

Mechanical considerations need to include adequate power, specific lighting systems, pure water for cleaning, and optional heat for the office, mechanical service, and employee areas.

Cold storage capacity is determined by the storage needs of the harvest on a weekly basis as a minimum. In the case of this 5 hectare production model:

8,333 kg annual yield per hectare X 5 = 46,665 kg total harvest

46,665 kg / 5 weeks of harvest = 8,333 kg per week

8,333 kg / .34 kg per till X 12 = 2,042 flats per week

2,042 flats stacked in approximately10 rows X 10 deep X 20 high allowing for a 1m wide aisle for access and cold air circulation would require approximately 20 m2 of cold storage floor space. The pre-cooling cold room processes the harvest on an every-other-day basis and would need to be approximately 1/3 the capacity of the storage unit.

Estimated costs for the packing facility and major equipment are included as part of the

Blueberry Enterprise Budget in Annex VII this report. A thumbnail review and explanation of the projected capital costs related to the packing facility include:

44‘ X 36‘ (147.3 m2) insulated building on slab @ 35.00/sq‘ $55,440.00

287 sq.‘ (26.7 m2) of refrigeration @ 50.00/sq‘ 14,350.00 basic fresh-pack line air blast cleaner #14125 16,900.00 tilt belt sorter #16000 12,500.00 inspection belt #10120 15,275.00 clamshell filler #31000 16,650.00 lazy susan collection table #17100 2,450.00

63,775.00

TOTAL PROJECTED COST $133,565.00

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CONCLUSIONS AND RECOMMENDATIONS

FOR FUTURE ACTIVITY

The findings supporting the development of a fresh market berry production industry for

Kosovo are sound. As perennial fruits require time to establish and mature before returning production and consequent cash-flow, no time can be wasted in the remaining three years of the USAID-NOA mission in implementing a program for development. In addition, a strategy that will address all five priorities for development simultaneously will be required:

Develop in Kosovo a ―knowledge base‖ for fresh market berry production and marketing across the value chain.

Initiate North American highbush blueberry production as a new crop for Kosovo.

Transition existing production of strawberries, raspberries, and blackberries to high-value fresh markets.

Create access to specialized inputs, technologies, and infrastructure.

Support market development and linkages.

To support this plan the following actions are recommended:

1. Support an individual stakeholder in the establishment of a five hectare commercial North American highbush blueberry plantation.

This stakeholder should be an example of…