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Agribusiness Development Project

Design
Vegetable Packinghouse
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Table of Contents

I. Executive Summary ………………………..……………………..………………….……. 2

II. Packinghouse Designs ……………..………………………………………………..……. 2

Model A—Renovation Project ………………………………………………………….…… 4

Model B—Greenfield Project ……………………………………………………………….. 5

Model C—Greenfield Project w/Tomatoes and Peppers ………………………………… 6

III. Packinghouse Narrative ...………………………………………………………………… 14

IV. Financial Summaries ……...………………………………………………………………. 25

Model A—Renovation Project ………………………………………………………….…… 25

Model B—Greenfield Project ……………………………………………………………….. 26

Model C—Greenfield Project w/Tomatoes and Peppers ………………………………… 28

V. Turnkey Implementation Plan .…………………………………………………….……… 29

VI. Marketing Opportunities …………………………………………………………….…….. 30

VII. Financing Opportunities …………………………………………………………….…….. 30

VIII. Refrigeration/Construction Observations and Working Assumptions ….……...… 33

IX. Postharvest Observations ………………………………………………………………… 34

X. Acknowledgements ……………………………………………………………….…….…. 43

XI. Addenda …………………………………………..…………………………………....…… 43

Financial Exhibits ……………………………………………………………………………. 43

Supplier Database …………………………………………………………………………… 43

Team Activities ………………………………………………………………………………. 43

Contacts ………………………………………………………………………………………. 43

Vegetable Packinghouse Design Project—Final Report


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I. Executive Summary
The packinghouse team was charged with the task of designing and preparing complete financial
models for two alternative vegetable packinghouses in Moldova. One would be based upon an
existing facility, and one would be constructed on a “Greenfield“ basis.

The team spent the initial part of the trip traveling in Moldova and interviewing growers, packers,
and shippers of vegetables, as well as several design and construction engineering firms. They
also visited with leaders from groups of cooperatives, trade associations, and appropriate
government agencies. The packinghouse designs and financial models were then executed
based upon the information gathered from these interviews.

It was evident from the work done that it would be very difficult to construct a new packing and
storage facility that would be focused on the traditional storage crops, such as carrots, beets,
potatoes, and onions. However, the financial viability increases as the percentage of high value
vegetables increases. These products include tomatoes, bell peppers, and cucumbers. In
addition, the specific renovation design and financial modeling analysis found that there can be
positive economics in the renovation of existing facilities in some cases.

The team concluded that Moldova has several production and marketing advantages that indicate
that investments in high value fresh vegetable production and packing assets could be good
investments. However, there are certain impediments, such as an inhospitable banking system
and no tradition of modern postharvest handling and packaging that will meet current sanitary and
phytosanitary standards. Given all of these circumstances, the Team recommended that USAID
support the construction of a model vegetable packinghouse facility; that expert assistance be
provided in the areas of engineering and postharvest practices during the implementation of this
model; that USAID assist Moldova to move toward EurepGAP compliance; that an analysis of the
viability of heated greenhouse production of vegetables be conducted; that additional
packinghouse construction and financial models be investigated that involved the packing of fruit
as well as vegetables in the facility, given that fruit represents over 90% of the horticulture sector
of Moldova; and that USAID assist Moldova in increasing the diversity of its vegetable products,
as well as moving toward value-added vegetable products that can take advantage of the
competitive wage rates of Moldova.

II. Packinghouse Designs


The layouts of the packinglines and storage facilities were based upon the following general
considerations:
1. Product mix
a. Warm season, chilling-sensitive vegetables include tomatoes, peppers, cucumbers,
and eggplant. Ideal temperature ranges from 7.5-12.5ºC depending on the particular
product, but a reasonable storage temperature range for all products in a single
storage room is 10-12ºC. It is expected that these products would be held four days
at most before shipping.
b. Cool season vegetables for storage include onion, cabbage, carrots, and red beets.
These require 0-1ºC with high humidity (95%) and depending on initial quality can be
stored for three to six months with good pack-out quality.
c. Cool season vegetables that are cooled (0-5ºC) and shipped with minimal storage
(few days) include small volumes of green onions, leeks, and cauliflower.

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2. Maximum volumes of warm season vegetables currently occur in September and


October; maximum volumes of storage vegetables occur in October and November.

3. Product needs to be harvested and transported to the packinghouse as soon as possible


and held in the shade until packed. Coordination of harvesting and packing operations is
needed to avoid unnecessary delays which will reduce product quality.

4. A simple packinghouse that allows for versatility and reconfiguration of the packing lines
because of the range of products and product volumes is optimal. It should allow for
segregation of products (i.e. organic vs. conventionally produced vegetables).

5. Appropriate toilets and hand washing stations should be present to ensure good worker
hygiene.

6. Opportunities for future expansion of facilities, improvement of packingline equipment


(automated sizers), and increased through-put should be available. The latter may
involve two work shifts in the packinghouse.

7. The ideal packinghouse situation is one in which product is handled as little as possible
under the cleanest conditions possible. Therefore, field crates must be cleaned on a
regular schedule. The packinglines need to be cleaned frequently.

8. Water, if used, must be of potable quality. It is very difficult to consistently and effectively
sanitize reused water and, therefore, no reuse of water should be considered.

9. The availability of labor and the variable product mix and volumes permit substantial
manual handling of product. However, to achieve high quality, consistently-packed
product, worker training is essential. Each packinghouse requires a supervisor on site.

10. Appropriate packingline components and operations may include the following (the
photos and diagrams of some equipment components are not meant as an endorsement
of any particular company but strictly to provide a visual example):
a. Unload field crates and store temporarily inside packinghouse (1-2 persons).
b. Dump field crates onto a mechanized conveyor that allows for presorting (defect
removal); conveyor speed should be adjustable for variable volumes (1-2 persons)
(Figure 1). To empty storage bins, a bin dumper is needed (fixed or moveable).
c. Brush bed washer with overhead water spray of single use of potable water (only
necessary if product is dusty or dirty). Forced air (high speed ventilation) drying (only
if product is washed). (Figure 2)
d. Roller conveyor (mechanized) for manual sorting and sizing into two to three
categories (four to six persons). (Figure 3) Adequate lighting is essential to ensure
good sorting and classifying. A divider can be placed towards the end of the line and
workers move product to one side or other of the conveyor to create the categories.
Classified product is subsequently moved to the packing tables on a flatbed
conveyor. Figure 6 shows different types of mechanized and automated classifying
systems.
e. Packing stations. Product is moved on the flat bed conveyor, and guides channel the
product so that it gently rolls down onto the pack tables. A single long inclined
padded accumulation table can be subdivided into two or three tables for product
categories of size, grade, or color (Figure 4).
f. Carton boxes are placed on small tables or benches next to accumulation tables.
When workers finish packing product into the boxes, they slide the packed carton

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onto a gravity fed roller conveyor. The roller conveyor can be two or three tiers
(empty wooden and carton boxes on top tiers; packed product on lower tier) (Figure
5).
g. Cartons are palletized and strapped to stabilize the pallet. Boxes must be perfectly
aligned because the stacking strength of carton boxes resides in the corners. If
product volumes are high and pallets are completed quickly, product can be
palletized in the packinghouse, and then pallets moved to the cooler. If volumes are
small, it is preferable to palletize inside the cooler.
h. Temperature management is essential for postharvest handling of perishable
products. Cooling the product to remove initial field heat, and storing and
transporting products at near optimum temperatures are desirable to maintain quality
and achieve adequate storage or shelf-life. Forced air cooling is a versatile cooling
method. Products such as grapes, strawberries, peaches, peppers, tomatoes,
cauliflower, and mushrooms are routinely and effectively forced-air cooled. To obtain
maximum benefit from cooling, product needs to be cooled quickly after harvest. A
good rule of thumb is that one day of shelf-life is lost for every hour of delay to cool.
Shipping dock should be enclosed and refrigerated. For forced-air cooling, selection
of evaporator, compressor, and condenser equipment requires calculating peak
refrigeration demand. One must know or estimate product arrival times during the
day and the temperature of incoming product in order to ensure an acceptable
cooling rate (varies depending on product, packaging, and pallet stacking). Typically
product is removed from the cooler when it has reached 7/8 cooling. The amount of
refrigeration capacity needed is based on several factors including initial product
temperature, final temperature, rate of cooling, amount of product, and the type of
product (specific heat of fruits and vegetables varies from 0.85 to 0.95
BTU/pound/°F). One ton of refrigeration = 12,000 BTU/hr = ~3.5 kW refrigeration.
BTUs of heat removed = product weight x specific heat x temperature difference.
Total refrigeration load equals product cooling load plus heat from miscellaneous
sources such as fan motors, lift trucks, lights, people, and conduction through the
walls. Generally it is considered that these miscellaneous heat loads equal 25% of
the product load. An extra 10-15% of the total heat load is added as a safety factor
to account for facility use above expectations (from Thompson, J.F. et al. (2000).
Commercial cooling of fruits, vegetables, and flowers. Univ. California Agric. Natl.
Res. Publication 21567).

Model A—Renovation Project (Lefcons)

1. The existing facility is a standard L-shaped layout with efficient product flow (Figure 7A).
The building appears to be solid masonry with a new metal roof on wood joists. A
suspended ceiling needs to be installed where fresh product is being handled. Floors need
to be leveled and pitched to drain where required. Walls need to be smooth and impervious
for sanitation. Non-weight bearing interior walls should be eliminated. The packinghouse,
forced-air cooler, storage room, and shipping docks would be 246, 93, 130 and 21 square
meters, respectively. The cooler and storage areas are undersized for the expected
product volumes. It is assumed that the floor over the basement is capable of supporting
the cold storage and cooler. It is assumed that adequate electrical power is available, and
that there is adequate water quantity, pressure and quality as stated by owner. Site will
need new septic field and roads to receiving and shipping areas. Facility could be
expanded from the cooler and cold storage area; packinghouse could run two shifts per
day.

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2. Maximum production is in September for tomatoes (12.5 ton/day), peppers (4.2 ton/day),
cucumber (2.5 ton/day), and eggplant (2.5 ton/day). Tomatoes are harvested six days for
four weeks and other vegetables are harvested three days for four weeks; estimated
pallet weights of 12 x 12 carton boxes (30 x 40 x 13 cm) of 864 kg net for tomato and
cucumbers, and 720 kg net for eggplant and peppers. Products should be cooled to 10-
12°C and stored a maximum of four days (ideal temperatures vary from this range, but for
short-term storage and transport this temperature range would be adequate).

3. Maximum storage volumes (300 kg bins) of 167, 80, 200, and 17 bins of onions,
cabbages, carrots, and leeks, respectively.

4. A potential packinghouse layout is diagrammed in Figure 7B. A shed-roof should be


added to the receiving area to provide shade and protection from rain. The
packinghouse consists of three lines:
• #1 and #2 (tomatoes, peppers): dump and presort, brush washer, dryer, manual sort
and size conveyor, pack tables, roller conveyors of packed cartons to the pre-cooler.
A bin dump is included in cost estimates and could be installed for seasonal use (i.e.,
for pack-out of cabbages and other stored products).
• #3 is a manual pack area for small volumes of odd lots (green onions, cabbage, etc.).

5. An area for quality control should be delineated and added to the layout.

6. Forced air pre-cooler for tomatoes, peppers, cucumbers and eggplants; two tunnels for
17 tons of product. After cooling, product could be held at 10-12°C in the storage room.
Since product is palletized in pre-cooler, cooling needs should be reduced. Room is
undersized for expected volumes.

7. Cabbage and carrots go directly to the cold storage; Cold storage designed for 385 bins
stacked five high with a central aisle (4 bins x 11 rows, 3 bins x 11 rows).

8. In October, the low volumes of warm-season vegetables will be held in the forced-air
cooler after cooling since the temperature of the single storage room will be reduced to
1ºC for the arrival of considerable volumes of cool season vegetables.

9. Product is shipped from an enclosed refrigerated dock.

10. Crate washing equipment or area will be on the outside of the packinghouse.

11. Wood and carton boxes need to be stored in a clean area, possibly in the basement in
this case. Small areas are provided in the packinghouse layout for carton make-up and
temporary holding of wooden boxes.

Model B—Cemcam Cooperative Greenfield Project

1. The facility is designed in a straight-through layout with a central corridor three meters
wide, terminating at the shipping dock (Figure 8A). The building will be masonry
construction in non-refrigerated areas and insulated metal sandwich panels for
refrigerated areas. Allowances for roads and paving are included in estimates; site
utilities are included in allowances. The floor will be level with floor drains only in the
packinghouse area. The total facility is 1728 square meters (23 x 72m), with
packinghouse, cooler, storage, and shipping areas of 528, 240, 864, and 96 square

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meters, respectively. Receiving dock is enclosed. Shipping dock is enclosed and


refrigerated. Facility could be readily expanded.

2. Maximum production is in September for tomatoes (12.5 ton/day) and peppers (5.9
ton/day); tomatoes are harvested six days for four weeks and peppers are harvested
three days for four weeks; estimated pallet weights are 12 x 12 carton boxes (30 x 40 x
13cm), 864 kg net for tomato and 720 kg net for peppers; product is cooled to 10-12C
and stored up to 4 days.

3. Maximum storage volumes (300 kg bins) of 2100, 467, and 467 bins are estimated for
cabbages, carrots, and red beets, respectively.

4. Forced air pre-cooling will require two rooms with two tunnels per room, each with
capacity of 17 tons of product per room per day. Rooms are separated by the central
corridor and offer the option of being operated at two temperatures.

5. Cold storage consists of four rooms each capable of holding 760 bins of cabbage,
carrots, and/or beets for a total of 228 tons of product per room; bins are stacked seven
high. The four rooms allow versatility regarding storage temperatures, product mix (do
not store ethylene producing products with ethylene-sensitive products), and product
volume (shut down rooms as volumes decrease).

6. A potential packinghouse layout is diagrammed in Figure 8B. The area dedicated to the
packinghouse is relatively large for the volumes cited, but expansion with an additional
line or reconfiguration to include other equipment would be possible. The packinghouse
consists of four lines:
a. #1 and #2 (tomatoes, peppers): dump and presort, brush washer, dryer, manual sort
and size conveyor, pack tables, roller conveyors of packed cartons to cooler.
b. #3 would have a mechanized grader that would permit more specific grading by size,
weight, or color for higher value pack-outs and could be used for various products. It
includes a bin dump.
c. #4 is a manual pack area for small volumes of odd lots.

7. Crate washing equipment is situated on the receiving dock.

8. Wood and carton boxes need to be stored in a clean area, such as an enclosed room on
the receiving dock. Small areas are provided in the packinghouse layout for carton
make-up and temporary holding of wooden boxes.

9. A quality control area should be added to the packinghouse layout.

Model C—Cemcam Cooperative Greenfield Project for Tomatoes and Peppers

1. The facility is designed in a straight-through layout with a central corridor three meters
wide, terminating at the shipping dock (Figure 9A). The building and site comments are
the same as for Model B. The total facility is 735 square meters (23 x 72m), with
packinghouse, cooler, storage and shipping areas of 528, 240, 864, and 96 square
meters, respectively. Receiving dock is enclosed. Shipping dock is enclosed and
refrigerated. Facility could be readily expanded.

2. Maximum production is in September for tomatoes (12.5 ton/day) and peppers (5.9
ton/day); tomatoes will be harvested six days for four weeks and peppers will be harvested

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three days for four weeks; pallet weights of 12 x 12 carton boxes (30 x 40 x 13cm) of 864
kg net for tomato and 720 kg net peppers; products are cooled to 10-12C and stored
maximum four days.

3. One forced-air cooling room with internal pass-through aisle; two tunnels, 17 tons of product
per day.

4. Cold storage capacity (10-12ºC) of 100 pallets 39 tons of product with pass through aisle
to refrigerated enclosed shipping area.

5. A potential packinghouse layout is diagrammed in Figure 9B. The area dedicated to the
packinghouse is large for the volumes of tomatoes and peppers, but allows for expansion
and versatility in types of product presentations. The packinghouse consists of four lines:
a. Line #1 (tomatoes, peppers): dump and presort, brush washer, dryer, manual
sort/size conveyor, pack tables, roller conveyors of packed cartons to the cooler.
b. Line #2 would have a mechanized grader that would permit more specific grading by
size, weight, or color.

6. Crate washing equipment is situated on the receiving dock.

7. Wood and carton boxes need to be stored in a clean area, such as an enclosed room on
the receiving dock. Small areas are provided in the packinghouse layout for carton
make-up and temporary holding of wooden boxes.

8. A quality control area should be added to the packinghouse layout.

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Figure 1

A = Dump field crates and Presort


B = Brush bed washer single use water (optional)
C = Forced air dryer (optional)
D = Roller conveyor for sorting & sizing
E = Pack table
F = Pack table of 2nd size or quality
G = Gravity fed conveyor for packed cartons
H = Palletize inside the forced air cooler

http://www.marchantschmidt.com
Example of 500-1000 kg bin dumper

Kitinoja & Kader, 2002. A small-scale postharvest handling manual.

Figure 2
A = Dump field crates and Presort
B = Brush bed washer single use water (optional)
C = Forced air dryer (optional)
D = Roller conveyor for sorting & sizing
E = Pack table
F = Pack table of 2nd size or quality
G = Gravity fed conveyor for packed cartons
H = Palletize inside the forced air cooler

http://www.agriculturalinstallations.com/ http://www.thomasmoore.com/

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Figure 3

A = Dump field crates and Presort


B = Brush bed washer single use water (optional)
C = Forced air dryer (optional)
D = Roller conveyor for defect sorting, but mostly color and size
size sorting
E = Pack table
F = Pack table of 2nd size or quality
G = Gravity fed conveyor for packed cartons
H = Palletize inside the forced air cooler

Figure 4

A = Dump field crates and Presort


B = Brush bed washer single use water (optional)
C = Forced air dryer (optional)
D = Roller conveyor for sorting & sizing
E = Pack table
F = Pack table of 2nd size or quality
G = Gravity fed conveyor for packed cartons
H = Palletize inside the forced air cooler

Mobil stands for cartons next to


Pack table Flat bed conveyor to packing tables

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Figure 5

A = Dump field crates and Presort


B = Brush bed washer single use water (optional)
C = Forced air dryer (optional)
D = Roller conveyor for sorting & sizing
E = Pack table
F = Pack table of 2nd size or quality
G = Gravity fed conveyor for packed cartons
H = Palletize inside the forced air cooler

3-tier roller conveyor; lower level used Packed product on roller conveyor
For packed cartons Entering palletizing area

Figure 6
Mechanized sorting

http://www.kerianmachines.com/ Gttp://www.greefa.nl

Computerized automatic classification

http://www.aweta.nl/ http://www.durand-wayland.coml

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Figure 7A. Site map for Lefcons Packing and Cooling Facility (Model A).

Figure 7B. Packinghouse Layout for Lefcons (Model A). Packinglines 1 and 2 have manual
crate dump (A), brush washer (B), dryer (C), manual sorting on roller conveyor (D), 2 packing tables
(E, F), gravity fed roller conveyer (G), and palletization in the cooler (H). Pack area 3 is for small
volumes.

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Figure 8A. Site map for Cemcam Coop Packing and Cooling Facility (Model B).

Figure 8B. Packinghouse Layout for Cemcam Coop (Model B). Packinglines 1 and 2 have
manual crate dump (A), brush washer (B), dryer (C), manual sorting on roller conveyor (D), 2
packing tables (E, F), gravity fed roller conveyer (G), and palletization in the packhouse (H).
Packingline 3 has a mechanized or automated sizer. Pack area 4 is for small volumes of product.

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Figure 9A. Site map for Cemcam Coop Packing and Cooling Facility for Tomatoes and
Peppers only (Model C).

Figure 9B. Packinghouse Layout for Cemcam Coop for Tomatoes and Peppers (Model C).
Packingline 1 has manual crate dump (A), brush washer (B), dryer (C), manual sorting on roller
conveyor (D), 2 packing tables (E, F), gravity fed roller conveyer (G), and palletization in the
packinghouse (H). Packingline 2 has a mechanized bin dump and a mechanized or automated
sizer.

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III. Packinghouse Narrative


A packinghouse is one component of a postharvest handling system. The following describes
important considerations for the harvest, grading, packing and cooling of fresh fruit and vegetable
products to ensure good pack-out quality and good market arrivals.

For all fresh produce, variety selection, climatic conditions, and growing practices will greatly affect
the quality at harvest. Successful marketing of fresh fruits and vegetables depends on maintaining the
quality harvested. Fresh products are alive and respire (e.g. enzymatically converting sugars and
acids in the presence of oxygen to carbon dioxide and heat). Careful postharvest handling aims to
reduce the rate of respiration and the rate of other processes that cause deterioration and quality loss
(water loss, many biochemical changes, softening, etc). Careful, clean, and efficient handling is more
important than the sophistication of the postharvest equipment used.

Harvest ought to occur at the optimum maturity for best eating quality. Immature products have
higher postharvest water loss and shrivel during marketing. Harvesting fruits such as apples,
tomatoes, and melons too soon results in non-uniform ripening and poor flavor. Harvesting products
that are over mature may cause toughness (asparagus, beans), rapid yellowing (cucumbers),
undesirable starchiness (sweet corn) or other undesirable flavors (bitterness in lettuce), or short shelf-
life (apples, peppers). Harvesting fruit vegetables too ripe (tomatoes) makes physical injury more
likely and reduces shelf-life.

Harvest ought to occur during the coolest part of the day. The product is coolest at sunrise, and
harvesting when it is cool minimizes deterioration and water loss. It is easier and cheaper to keep a
product cool then to cool a product that has heated up. To minimize the spread of disease, harvest
should begin once the foliage has dried. Use clean harvest containers, cutting equipment and gloves.
Keep harvested products out of the sun (use an empty container, shade cloth, or other protection) to
avoid direct sun injury and unnecessary heating of the product.

One must harvest and handle gently. Injured areas on products lead to increased postharvest decay
and water loss. Significant quality losses occur because of cuts, punctures, abrasions, crushing, and
bruising. In some cases, products may appear undamaged, but may be bruised internally (melons,
apples). Reduce physical damage by reducing the number of steps in which the product is directly
handled. The ideal situation is to harvest and directly pack the product into the container in which the
product will be marketed (strawberries is the classic example). For most crops, harvest into the
shipping container is not feasible, but at least the number of steps in which the product is handled
should be minimized.

Preparation for market often involves cleaning, trimming, washing, and grading. This should be done
in a protected or shaded area, whether it is a permanent, temporary, or mobile packinghouse. The
packing facility should be located as close to the production area as possible. Field and
packinghouse roads should be well maintained to minimize physical injuries to the product
transported in the harvest containers. The packinghouse should be raised above ground level to
facilitate drainage of water and to allow for raised receiving and shipping docks. The packinghouse
should be designed to facilitate product movement in one direction. Culls and plant debris should be
removed periodically for good sanitation. A straight through packingline is the most efficient and
avoids cross-traffic between packingline workers and fork lifts. It also helps ensure that clean product
does not come in contact with less clean product. Adequate lighting is essential for worker safety but
also for efficient sorting and defect removal. Lights should be placed over conveyors so that there
are about 500 to 1000 lux at the work surface. Packing materials should be easily accessible to the
packers. Water should be clean (potable) and if reused, a sanitizer should be added to prevent
pathogen buildup and contamination. The less brushing, washing, and physical handling needed, the

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better. Cleaning may remove the surface waxes; waxing may then be needed to replace the product’s
own natural protection. Typically the sorting is done on roller bar conveyors which are commonly
white, but gray and other dark colors are increasingly being used as they improve the ability to
distinguish defects and reduce eyestrain. Sizing may be done manually, but simple equipment using
diverging bar rollers or belt sizers may be useful; automated color and size sorting equipment is
increasingly being used. Again, the less handling the better; avoid unnecessary drops, finger
damage, abrasions, etc. Pad and cushion hard surfaces. Keep all parts (conveyors, tables) of the
packing line smooth-surfaced and clean (wash frequently to remove sand, dirt). For food safety
considerations, cleanliness of the product, packingline, and employees are all important. Ensure that
clean toilet facilities with water and soap for hand washing are always available for all workers. The
schematics in Figure 10 show some aspects of a possible manual packing operation.

Pack carefully: do not overpack or underpack. Packing too tightly causes compression bruises;
packing too loosely causes vibration and abrasion injuries. Keep containers clean. If packing in
reusable plastic containers (RPCs), wash and sanitize (often with a dilute chlorine or bleach solution)
the container to remove decay-causing organisms and sand and dirt that can injure the product. If
using fiberboard cartons, remember that most of the stacking strength is at the corners of carton
boxes; therefore, stack and align cartons properly. Containers need vents (about 5% of the surface
area) for air flow and cooling. Use thin perforated plastic liners in carton boxes to reduce shrivel on
products highly susceptible to water loss (delicate leafy greens, summer squash). Paper pads on the
bottom and top of plastic-lined boxes will absorb excess moisture and reduce decay. Although
sealed plastic bags also reduce water loss, they are risky since if the product is not kept continually
cold, depletion of oxygen and development of off-odors can occur. If plastic bags or liners are used,
it is best to cool the product before packaging.

Cool the product as soon as possible after harvest. Temperature is the most important factor
determining deterioration rate. Decreasing the temperature reduces the product’s metabolism
(respiration and ethylene production), water loss, and the growth of decay-causing fungi and bacteria.
Mechanical refrigeration is the basis for most cooling methods. Room cooling (placing products in a
refrigerated room) is a relatively low cost, but also a slow method. The cold air needs to circulate
around the product to remove heat, so leave space between boxes and between pallets. Forced-air
cooling pulls the cold air through the containers and greatly increases the rate of cooling. A cold
room can be modified with portable and fixed forced-air handlers to increase cooling rates.
Hydrocooling (by submersion or spraying cold water) products that tolerate wetting provide fast
cooling and avoid water loss. However, it takes much longer to hydrocool packed product, and
special shipping containers are required (wood or waxed boxes). Sanitation of the hydrocooling
water (usually by chlorination) is critical to prevent contamination. Some products tolerate contact
with ice; crushed or flaked ice can be applied directly or as water slurry.

Tables 1 to 6 describe different handling options for a range of vegetables for fresh market. For any
given vegetable for the fresh market, there may be many handling variations which can provide
equally good final product quality. The flow charts for different vegetables describe the typical
operations necessary for product preparation and include steps for field packing and preparation in a
packinghouse. Although water for washing and cooling can be useful, it is now considered
problematic because of microbiological sanitation issues and its use should be minimized. If product
is harvested and handled carefully, it should not need to be washed. Forced air cooling is preferable
over other cooling methods using water or ice. Table 7 and Table 8 deal with tomato ripeness
stages (U.S. six-point scale) and the impact of temperature on the ripening rate of tomatoes.

Freshness is a very important quality attribute. Freshness can be maintained by expedited


marketing, but can also be achieved by storing for short periods (days) under the proper conditions.
The longer the period from harvest to consumption, the greater the need to emphasize good

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temperature management. If products are stored for long periods (weeks), they need to be kept as
close as possible to their ideal storage temperature to minimize quality loss. Once the product has
been cooled, use low rates of air circulation to reduce water loss during storage. Many vegetables
(broccoli, lettuce, carrots, celery, etc.) require a low storage temperature, as close to 0°C as possible
(Table 9). Many other vegetables (basil, cucumbers, eggplants, tomatoes, peppers, melons) are
chilling sensitive and need to be stored at intermediate temperatures (Table 9). Most vegetables
(except onions and garlic) require high humidity during storage. Ethylene is a natural gas produced by
all products. However, leafy and root vegetables produce very little ethylene and are damaged by
ethylene (russet spotting, bitterness in carrots, loss of leaves in cabbage, yellowing of leafy greens).
Many fruits, including fruit vegetables such as tomatoes and melons, produce high amounts of
ethylene during ripening. Avoid storing ethylene-incompatible fruits and vegetables together.

Use adequate transport vehicles. Secure (brace) the load to reduce vibration injury; drive slowly;
cover the product to prevent exposure to the sun and excessive water loss. For transporting
product to market, use an insulated truck if a refrigerated vehicle is not available. Refrigerated
trucks have sufficient refrigeration capacity but often lack air flow capacity for cooling; they can
only maintain product temperatures, so products should be pre-cooled before transport. Stack
containers on pallets away from the truck walls and leave channels so the cold air can flow
around the containers. Avoid temperature fluctuations during loading and unloading since
moisture condensation will increase decay. Therefore, docks should be enclosed and preferably
refrigerated. During display for market, protect the product from high temperatures, high air
velocities, and low relative humidity. Where appropriate, mist with clean water. Display products
in their containers to reduce handling injury.

Ten Important Guidelines for Postharvest Handling of Fresh Fruits and Vegetables

1. Maturity. Harvest the product at the correct stage of maturity for the intended market.

2. Reduce Injuries. Reduce physical handling to a minimum; every time the fresh product is
handled, it is damaged, and many injuries are not easily seen.

3. Protect Product. Protect the harvested product from the sun; bring it rapidly from the
field/exposed area to the packing station and keep out of the direct sun. Transport carefully.

4. Cleanliness & Sanitation. Keep the packing line as simple as possible, and keep it clean. If
water is used, use clean water or a sanitizer if the water is reused. Maintain strict worker
hygiene.

5. Pack Carefully. Sort, classify, and pack the product carefully to achieve uniformity and to
prevent damage (compression, scrapes, etc.) which causes decay and inferior quality; use an
adequate box or container. Packaging can also be informative.

6. Palletize. Insure that the boxes are perfectly aligned on the pallet, and that the pallet is
strapped.

7. Cool. Cool the product as soon as possible after harvest; generally for every hour of delay
from harvest to cooling, one day of shelf-life is lost. Lowering product temperature is the
most important way to reduce deterioration.

8. Know Product. Know the expectations of the market (size, ripeness, etc.) and the product
handling requirements (temperature, RH, shelf-life, etc.) to ensure good arrivals.

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9. Coordination. Always try to coordinate the postharvest handling so that it is efficient and
rapid. Good postharvest handling maintains the quality of a product, but it cannot improve it.

10. Training. Train and compensate well the workers involved in critical postharvest handling
steps; make sure that workers have the necessary tools to facilitate their work.

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Table 1. Postharvest handling operations for root and tuber vegetables.


Prepare for harvest (undercut, roll; remove tops)

Harvest (Mechanical or manual)

Load into field bins, trailers

Transport to packinghouse

For immediate marketing Bins into storage
⇓ ⇓
Unload (water flume, dry dump) Unload from storage
⇒ ⇒ ⇒ Wash ⇐ ⇐ ⇐

Sort and grade

Size

Hydrocool option (carrots, small radish)

Pack (consumer packages/shipping containers)

Temporary cold storage

Load into transport vehicles

Table 2. Postharvest handling options for onions and related vegetables.


Prepare plant for harvest (roll tops, undercut)

Harvest (manual or mechanical)
Clip roots and tops

FIELD PACKING PACKINGHOUSE
⇓ ⇓ ⇓
Field cure Field cure in windrow Load into bins
(in sacks/bins)
⇓ ⇓ ⇓
Sort and grade on Load into trailers/trucks Cure
mobile packing unit
⇓ ⇓ ⇓
Pack (bag or boxes) Transport to packing house Store
Load onto trailers ⇒ ⇒ Dry dump ⇐ ⇐
⇓ ⇓
Temporary storage/curing Sort and grade, size
at shaded or covered storage ⇓
Pack (bags or boxes)
⇓ ⇓
Temporary storage
area with fans, high air flow

Transport to market

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Table 3. Postharvest handling operations for leafy vegetables, lettuce, and green onions.
Harvest (manual)
FIELD PACKING PACKINGHOUSE HANDLING
⇓ ⇓
Cut, trim, sort, and size manually Load into bulk bins or trailers
⇓ ⇓
Mobile packing platform Transport to packinghouse
⇓ ⇓
Wrap individual units Unload
⇓ ⇓
Pack into shipping containers Trim (manual or mechanically)
⇓ ⇓
Palletize Wash (green onions)
⇓ ⇓
Transport to Cooling facility Sort and grade
⇓ ⇓
Pack and palletize
Cool (vacuum, forced-air, hydrocool)

Temporary Cold Storage

Load refrigerated vehicle

Top-ice (common for some products, but not advised)

Transport to market

Table 4. Postharvest handling operations for vegetables such as broccoli and cauliflower.
Harvest (by hand)
FIELD PACKING PACKINGHOUSE HANDLING
Cut, trim and size manually Load into bulk bins or trailers
Workers on mobile packing unit ⇓
Transport to packinghouse
⇓ ⇓
Wash cauliflower with chlorinated water (optional) Unload (mechanically or manually)

⇓ Trim leaves
Wrap head (cauliflower) ⇓
Tie or band (broccoli) Wash cauliflower (optional)
⇓ ⇓
Pack by count (waxed/wood boxes if hydrocool/ice) Tie or band (broccoli); Wrap head (cauliflower)
⇓ ⇓
Palletize cartons Size manually
⇓ ⇓
Transport to cooler Pack by count and palletize
⇓ ⇓
Cool (broccoli liquid-ice; cauliflower forced air )

Temporary cold storage

Load into refrigerated transit vehicles

Transport to markets

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Table 5. Postharvest handling operations for fruit vegetables such as summer squash,
eggplant, cucumbers, and peppers.
Hand harvest, eliminating defective fruit that cannot be packed
Place fruit into clean plastic trays, totes or buckets

Field-Packed Packinghouse
⇓ ⇓
Fruit often not cleaned; Stack totes on trailer for transport to packing area
Can be immersed in clean water, spray-wash or wiped ⇓
with a moist clean cloth De-stack trays and spray-wash or immerse in clean water
⇓ ⇓
Select and Classify by size, maturity and defects Apply protective wax or vegetable oil by spray application
or wiping fruit (optional)
⇓ ⇓
Pack by weight or count into shipping containers Select and Classify by size, maturity and defects
⇓ ⇓
Palletize and transport to Cooler Pack by weight or count into shipping containers
⇓ ⇓
Cool to 7-13ºC (45-55°F) Cool to 7-13ºC (45-55°F)
⇓ ⇓
Transport to distribution center Transport to distribution center
(7-13ºC = 45-55°F) (7-13ºC = 45-55°F)

Table 6. Postharvest handling system for vine-ripe tomatoes.


Hand harvest, eliminating defective fruit that cannot be packed

Place fruit into clean vented plastic trays or totes;
Stack trays for transport to packing area or packinghouse

De-stack trays and wash tomatoes if necessary;
Submerge briefly into single-use clean water and/or chlorinated water
Or shower wash or use a moist clean cloth to remove dust

If washed, force-air dry fruit before further handling

Manual or mechanized classification for color and/or size

Packer selects fruit & further classifies (by size or color stage)

Place fruit into shipping container (single or double layer carton box; paper or foam pad between layers)

Open containers move by gravity conveyer and are palletized after inspection for final quality and closing of carton;

Pallets are strapped vertically to reduce vibration injury during transport

Palletized fruit are cooled to 10-13ºC as soon as possible (room cooling or forced-air cooling) and transported at that
temperature

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Table 7. Maturity and ripeness stages of fresh market tomatoes.

Green. The tomato surface is completely green. The shade of green may vary
from light to dark.

Breakers. There is a definite break of color from green to bruised fruit. Tannish-
yellow, pink or red or 10% or less of the tomato surface.

Turning. Tannish-yellow, pink or red color shows on over 10% but not more
than 30% of the tomato surface.

Pink. Pink or red color shows on over 30%, but not more thank 90% of the
tomato surface.

Light Red. Pinkish-red or red color shows on over 60% but, red color covers not
more than 90% of the tomato surface.

Red. Red means that more than 90% of the tomato surface, in aggregate, is red.

http://www.tomato.org
http://www.foridatomatoes.org

Table 8. Effect of temperature on the average ripening rate of mature-green, breaker,


turning and pink tomatoes of conventional varieties. Greenhouse varieties with ripening
mutant genetics will likely require longer to complete ripening.

Days to table-ripe stage at indicated temperature


°C 12.5 15 17.5 20 22.5 25
Ripeness stage

Breaker (10% color) 16 13 10 8 6 5

Turning (10-30% color) 13 10 8 6 4 3

Pink (30-80% color) 10 8 6 4 3 2

Table 9. Recommended Storage And Transit Conditions For Vegetables.


Capacity to
Storage Relative Maximum Sensitivity
Freezing Produce
Temp. Humidity Shelf-life to Harvest
Product o Point oC Ethylene1
C % days Ethylene2 Quality
Artichoke, globe 0 -1.2 90-95 10-16 VL L Size, tender
bracts
Asparagus 2.5 -0.6 90-95 14-21 VL M Bracts at tip
closed; size
Basil 12.5 -0.5 95 7-14 VL M Fresh,
tender
leaves

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Beans, snap or 7.5 -0.7 90-95 10-14 L M Crisp pods,


green small seeds
Beets, with 0 -0.4 90-95 10-14 VL L Firm roots;
leaves fresh leaves
Beets, roots 0 -0.9 95-100 90-150 VL L Firm, root
typical color
Belgian endive 0 -- 95-100 14-28 VL L Firm head,
buds not
open
Broccoli 0 -0.6 90-95 10-14 VL H Crisp, firm,
compact
head
Brussels sprouts 0 -0.8 90-95 21-35 VL H Buds firm,
bright green
Cabbage, 0 -0.9 95-100 30-60 VL H Firm heads,
Chinese fresh leaves
Cabbage, green, 0 -0.9 95-100 90-180 VL H Firm heads,
red fresh leaves
Carrots, topped 0 -1.4 95-100 28-180 VL H Tender,
crisp, sweet
roots
Cauliflower 0 -0.8 90-95 20-30 VL H Compact,
white curds
Celeriac 0 -0.9 95-100 180-240 VL L Firm defect-
free root
Celery 0 -0.5 90-95 14-28 VL M Crisp,
tender
petioles
Chard 0 -0.1 95-100 10-14 VL H Fresh,
tender
leaves
Collards and 0 -0.8 90-95 10-14 VL M Fresh,
kale tender
leaves
Corn, sweet 0 -0.6 90-95 4-6 VL L Tender
sweet
kernels
Cucumbers 10 -0.5 90-95 10-14 L H Crisp,
green, firm,
size
Eggplant 10 -0.8 90-95 10-14 M L Seeds
small,
shiny, firm
Endive, Escarole 0 -0.1 95-100 14-21 VL M Fresh crisp,
tender
leaves
Garlic 0 -0.8 65-70 140-210 VL L Well cured
skins &
neck
Herbs, culinary 0 -0.2 95-100 10-14 VL H Fresh crisp,
tender
leaves
Kohlrabi 0 -1.0 95-100 25-30 VL L Firm, green,
size
Leeks 0 -0.7 95-100 60-90 VL M Size, firm,
green
leaves
Lettuce, head, 0 -0.2 95-100 14-21 VL H Firm, crisp,
romaine tender
leaves

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Melon, 2.5 -1.2 90-95 10-21 H M Stem ‘slips’;


cantaloupe color; sugar
Melon, 7.5 -1.0 85-90 21-28 M H Waxy, white
honeydew peel; heavy
Mushrooms 0 -0.9 90-95 12-17 VL M Fresh,
white, firm
Okra 10 -1.8 90-95 7-14 L M small, bright
green
Onions, dry 0 -0.8 65-75 30-180 VL L Firm bulbs,
tight necks
Onions, green 0 -0.9 95-100 7-10 VL M Size, bright
green
shoots
Parsley 0 -1.1 95-100 30-60 VL H Fresh crisp,
tender
leaves
Parsnips 0 -0.9 95-100 120-150 VL H Size, firm
roots
Peas 0 -0.6 90-95 7-10 VL M Tender
seeds;
green pods
Peppers, bell 7.5 -0.7 90-95 12-18 L L Firm, shiny
appearance
Peppers, chili 7.5 -0.7 90-95 14-21 L L Firm, shiny
appearance
Potatoes, early 10 -0.8 90-95 10-14 VL L Size,
crop defect-free
tubers
Potatoes, late 7.5 -0.8 90-95 56-175 VL M Size,
crop defect-free
tubers
Potatoes, for 5 -0.8 90-95 84-175 VL M Firm,
seed mature
Pumpkins 12.5 -0.8 70-75 84-160 M L Hard rind,
color, heavy
Radishes, no 0 -0.7 95-100 21-28 L L Firm, crisp,
tops green
leaves
Rhubarb 0 -0.9 95-100 14-21 VL L Stalks crisp,
red color
Rutabagas 0 -1.1 95-100 60-120 VL L Roots firm
and smooth
Spinach 0 -0.3 95-100 10-14 VL H Fresh crisp,
tender
leaves
Capacity to
Storage Freezing Relative Maximum Produce Sensitivity
Product Temp. Point Humidity Shelf-life Ethylene1 to Harvest
o o
C C % days Ethylene2 Quality
Squash, summer 10 -0.5 90-95 7-14 L M Firm, shiny,
right size
Squash, winter 12.5 -0.8 70-75 84-150 L M Hard rind,
corked
stem
Sweetpotatoes 12.5 -1.3 85-90 90-180 VL L Firm,
defect-free
roots
Tomatoes, 12.5 -- 90-95 21-28 L H Firm, jelly
mature-green present,
color

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Tomatoes, 12.5 -0.5 90-95 7-14 M H Firm,


ripening uniform
coloration
Turnip roots 0 -0.5 95-100 60-120 VL L Firm heavy
roots
Turnip greens 0 -1.0 95-100 10-14 VL H Fresh crisp,
tender
leaves
Watercress 0 -0.3 95-100 4-7 VL H Fresh crisp,
tender
leaves
Watermelon 10 -0.4 85-90 14-21 L H Crisp, flesh
color, heavy
1
C2H4 Production: ML=very low (0.1 µl/kg-h); L=low (0.1-1.0); M=moderate (1-10); H=high (10-100); VH=very High (>100).
2
Sensitivity to detrimental effects of C2H4: H=high; M=moderate; L=low; N=none.

Compiled from Kader et al., ‘Postharvest Technology of Horticultural Crops’, UC Davis Publication 3311, 2002; “A
Commitment to Excellence in the Shipment of Perishable Commodities”, Sea-Land Service, Inc., Elizabeth, N.J., 1980. 19
p; Tropical Products Transport Handbook, USDA Agric. Hdbk 668, 1987; and Cantwell, unpublished data.

Figure 10. Schematic of work area for a packing operation that involves hand sorting and
packing. From Thompson et al. Ch. 8 in Kader, A.A. 2002. Postharvest Technology of Horticultural Crops, Univ. California
Div. Agric. Natl. Res. Publication 3311.

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IV. Financial Summaries

Model A—Profit & Loss Statement, US Dollars


$1=Lei 12.85
2006 2007 2008
Tons Sold 1,408 1,759 2,199

Gross Revenue 349,883 437,354 546,693

Cost of Product 132,451 165,564 206,955


Packing Materials 54,319 67,899 84,874
Packing Labor 5,837 7,296 9,120

Sub-Total 192,607 240,759 300,948


Gross Margin 157,276 196,595 245,744

General & Administrative Expenses 20,975 27,267 35,447

Depreciation 32,500 65,000 65,000


Interest 58,938 69,002 54,602

Profit Before Taxes 44,864 35,326 90,695

Model A—Balance Sheet, US Dollars

$1=Lei 12.85
2006 2007 2008
Current Assets
Cash 79,631 73,497 149,192

Fixed Assets
Building 475,000 448,000 421,000
Equipment 190,000 152,000 114,000
Total Assets 744,631 673,497 684,192

Liabilities
Bank Loan 449,805 343,346 263,346

Retained Earnings 44,864 80,190 170,885


Shareholders Contributions 149,961 149,961 149,961
USAID Grant 100,000 100,000 100,000
Total Liabilities 744,631 673,497 684,192

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Model A—Cash Flow, US Dollars

$1=Lei 12.85
2006 2007 2008
Sources
Net Profit 44,864 35,326 90,695
Depreciation 32,500 65,000 65,000
Bank Loan 449,805
USAID 100,000
Equity 149,961
Total Sources 777,131 100,326 155,695

USES
Investment 665,000
Bank Loan 26,459 80,000 80,000
Working Capital 85,671 20,326 75,695
Total Uses 777,131 100,326 155,695

Model B—Profit & Loss Statement, US Dollars

$1=Lei 12.85
2006 2007 2008
Tons Sold 2,020 2,525 3,156

Gross Revenue 481,372 601,714 752,143

Cost of Product 200,233 250,292 312,865


Packing Materials 66,455 83,069 103,836
Packing Labor 7,860 9,825 12,281

Sub-Total 274,549 343,186 428,982


Gross Margin 206,823 258,529 323,161

General & Administrative Expenses 27,896 37,102 47,978

Depreciation 206,667 206,667 206,667


Interest 308,084 363,502 287,860

Profit Before Taxes -335,824 -348,742 -219,344

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Model B—Balance Sheet, US Dollars


$1=Lei 12.85
2006 2007 2008
Current Assets 103,748 -458,560 -815,471
Cash 103,748 -458,560 -815,471

Fixed Assets
Building 2,010,000 1,879,333 1,672,667
Equipment 380,000 304,000 228,000
Total Assets 2,493,748 1,724,773 1,085,196

Liabilities
Bank Loan 2,229,572 1,809,339 1,389,105

Equity
Shareholder Funds 500,000 500,000 500,000
Retained Earnings -335,824 -684,565 -903,909
USAID Grant 100,000 100,000 100,000
Total Liabilities 2,493,748 1,724,773 1,085,196

Model B—Cash Flow, US Dollars


$1=Lei 12.85
2006 2007 2008
Sources
Net Profit -335,824 -348,742 -219,344
Depreciation 206,667 206,667 206,667
Bank Loan 2,334,630 0 0
USAID 100,000 0 0
Equity 500,000 0 0
Total Sources 2,805,474 -142,075 -12,677

USES
Investment 2,390,000 0 0
Bank Loan 105,058 420,233 420,233
Working Capital 310,415 -562,309 -432,911
Total Uses 2,805,474 -142,075 -12,677

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Model C—Profit & Loss Statement, US Dollars


$1=Lei 12.85
2006 2007 2008
Tons Sold 1,110 1,388 1,734

Gross Revenue 259,582 324,477 405,596

Cost of Product 90,516 113,144 141,431


Packing Materials 60,222 75,277 94,097
Packing Labor 4,319 5,399 6,749

Sub-Total 155,056 193,821 242,276


Gross Margin 104,525 130,657 163,321

General & Administrative Expenses 13,948 18,132 23,572

Depreciation 90,000 90,000 90,000


Interest 143,405 166,693 127,471

Profit Before Taxes -142,827 -144,168 -77,722

Model C—Balance Sheet, US Dollars

$1=Lei 12.85
2006 2007 2008
Current Assets
Cash 286,745 14,677 -140,944

Fixed Assets
Building 650,000 610,000 520,000
Equipment 250,000 200,000 150,000
Total Assets 1,186,745 824,677 529,056

Liabilities
Bank Loan 1,035,019 817,121 599,222

Equity
Shareholder Funds 194,553 194,553 194,553
Retained Earnings -142,827 -286,996 -364,718
USAID Grant 100,000 100,000 100,000
Total Liabilities 1,186,745 824,677 529,056

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Model C—Cash Flow


$1=Lei 12.85
2006 2007 2008
Sources
Net Profit -142,827 -144,168 -77,722
Depreciation 90,000 90,000 90,000
Bank Loan 1,089,494 0 0
USAID 100,000 0 0
Equity 194,553 0 0
Total Sources 1,331,219 -54,168 12,278
0 0 0
USES 0 0 0
Investment 900,000 0 0
Bank Loan 54,475 217,899 217,899
Working Capital 376,745 -272,067 -205,621
Total Uses 1,331,219 -54,168 12,278

V. Turnkey Implementation Plan


A private investor approaching this project should proceed in the following manner.

1. The first step would be to conduct a thorough marketing/production study. The marketing
study should be conducted both domestically and in nearby international markets. The
purpose of this would be to determine the demand for all of the candidate products, the
rhythms of the demand during the year, the preferred packaging methods, and the
expected selling prices CIF marketplace. The prices should be by variety, by size, and by
quality level. The production study would be designed to verify the cost of producing each
of the candidate products delivered to the packing plant. The packing and packaging
costs would also be determined, as well as the cost of delivering the product to the
marketplace, if the products are not sold at the plant.

2. The next step would be to determine the appropriate site to locate the packinghouse.
This will be determined primarily by access to large volumes of product (the economics of
a packinghouse are driven primarily by volumes), but also should examine the quality of
the land and availability of water in the area, access to transportation (both road and rail),
and access to the required number of employees.

3. The third step would be to execute a very good feasibility study/business plan. This will
involve making the critical assumptions on the products to be handled and the volumes of
each, executing a very good packinghouse design based upon the volume assumptions,
and then developing a financial model which will include the assumptions on general and
administrative expenses, as well as a certain capital structure and the related costs.

4. The last steps would be to secure the necessary financing, secure the site, tender the
engineering/construction bids, and go to work.

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VI. Marketing Opportunities


The marketing opportunities for Moldova can be divided into four basic categories:

Domestic Market
The domestic market for vegetables is characterized by poor product quality (except for some of
the imported product), poor packaging, a lack of product diversity, nearly a total absence of value-
added product, and unreasonably high percentages of imported product. For instance, imported
products represent over 19% of the total availability of carrots, and over 23% of the onion
availability. In addition, the supermarket buyers that we interviewed said that they would like to
buy significantly more product from domestic suppliers. However, they were unable to source the
volumes and quality that they needed, and the packaging was consistently inadequate. This all
represents opportunities for the Moldovan vegetable growers.

Export Market
Moldova has good access to nearby export markets, such as Romania, Ukraine, Belarus, and
Russia. The transportation systems are good, and the reputation of Moldova as an agricultural
supplier (primarily in fruits, however) is very good. We met several growers who were shipping
into these markets, and there seems to be no reason why this effort cannot be expanded
significantly. However, it will require an investment in superior packing facilities and an upgrading
of packing and packaging practices, particularly as some of these markets begin to demand EU
sanitary and quality standards.

Product Diversity
The vegetables produced locally are confined to a very limited range of products. Other than the
storage crops (potatoes, carrots, cabbage, onions, beets, etc.), just three products — tomatoes,
cucumbers, and bell peppers — represent over 95% of the high value vegetables produced. This
means that there are significant opportunities to expand into additional high value vegetables,
both for domestic consumption and export, as addressed in the “Postharvest Opportunities“
section.

Value-Added Vegetables
Given the competitive wage rates in Moldova, there is a very real opportunity to explore adding
value to fresh vegetables, particularly for the food service arena. Turning the large quantities of
cabbage available into prepared coleslaw for hotels and restaurants, both in Moldova and
Romania, is an example of this. This is also addressed in the “Postharvest Opportunities“ section.

VII. Financing Opportunities


Overview Of Moldova’s Financial Sector
Presently, Moldova’s banking system comprises approximately 15 commercial banks and three
leasing companies. In terms of total assets ($1.3 billion) and total loans ($758 million), the
commercial banks have limited capacity to meet the current and growing demands for credit.

A few ratios confirm that the commercial banking sector is operating at full capacity. These
ratios, as of November 30, 2005 are loans to total deposits (78%), loans to deposits from
individuals (146%) and liquid assets to total assets (34%) and, lastly, shareholder funds plus
retained earnings to total assets (24%). The banking sector cannot meet the demand placed on
them by the growing commercial and consumer sectors of the Moldovan economy.

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The liability structure, particularly of the industry’s deposits, poses a major constraint in terms of
providing appropriate loans structures for capital investments that require longer payback periods.
The deposits from the commercial and private sector remain very short, usually taking of the form
of demand deposits. As such, the banks are obligated to maintain higher than normal levels of
liquidity in order to meet uncertain deposit withdrawal levels. Therefore, extending loans with
tenors beyond one year becomes problematic under current circumstances.

This feature can be prudently changed only when the commercial banks can access deposits or
other funding sources that extend out over longer time periods. Ideally, the development of such
sources will consist of time deposits (one to five years) and bond issuance (five to ten year
maturities). Thus far, these developments have not occurred.

On the positive side, depositors are freely allowed to have accounts in various currencies, usually
Lei, USD, and Euro. In fact, Moldova Agroindbank (MAIB) indicated that the split between Lei
and foreign Currency is approximately 50/50. This allows the bank to extend foreign currencies
loans without extensive hedging of FX risk. The appropriate borrowers with foreign currency cash
flow, particularly from exports, this allows lower interest levels, Euro/USD lending rates at 11-12%
vs. MDL rates at 18-22%.

During our visit with the largest commercial bank, Moldova Agroindbank (MAIB) it was confirmed
that Moldova’s experience with bonds is limited. There has been only one bond issued and that
was by the Ministry of Finance on behalf of the Government of Moldova ($75 million). The bond
was redeemed prematurely at a discount much to the dissatisfaction of the country. With such an
experience, there are reservations concerning the creation of a domestic bond market, but this
should be encouraged nonetheless. Moreover, since the economy is partially “dollarized,” there
exists the possibility for the largest and most successful banks to access the capital market in
Europe and/or the United States. Of course, such funding sources would be more expensive but
value brought in the commercial banking sector in terms of stability of a longer dated liability
structure should help provide appropriate lending structures for capital investment in the private
sector.

The leasing activities are relatively recent. MAIB founded the first leasing company three years
ago. Presently, there are three leasing companies in operation. This is not surprising when one
examines MAIB results in 2004 showing a growth in leasing activities of 57% after a previous
year growth of 38%. We were not able to learn about the financial results on these activities
(ROA, ROI, or Net Profit) but MAIB indicated that they are very satisfied. Presently, the leasing
activities (operating and finance leases) are directed at the consumer and commercial sectors
with autos, buildings, land, and commercial equipment representing the lease assets.

In the team’s opinion, the medium term leasing activities in Moldova could be extended to the
agricultural sector. Specifically, trucks, tractors, forklifts, and packing line equipment are all farm
and agricultural processing equipment that could qualify.

In light of the aforementioned factors, we found the terms and conditions required to qualify for
loans from the commercial banking sector are predictably onerous and for the most part uniformly
applied. This is even more so for the perceived higher risk agricultural sector, and these
perceptions amplify when looking at the perishable food sector such of fresh vegetables. CNFA’s
Agribusiness Credit Specialist, Valeria Ciobanu, has compiled a comprehensive comparison of
these terms and conditions with the salient points being:

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32

1. The maximum loan size is set by banking regulations at 10% of capital but lending into
the risks associated with vegetable growing and/or processing will be done at much
smaller amounts depending on the financial capacity of the borrower.

2. Grace periods are granted up to six months and occasionally up to 12 months (usually
only three months) but maximum term or tenor is very short. Depending on the project,
we found this to be from 1.5 years to five years in exceptional cases. During our visit with
MAIB (the largest bank with 21% of banking assets and 25% of total loans) we learned
that the maturity structure of banking deposits are usually demand, i.e., very short term
and uncertain. These conditions require a very conservative approach to lending for
periods beyond one year. On the positive side, depositors are freely allowed to have
accounts in various currencies, usually Lei, USD, and Euro. In fact, MAIB indicated that
the split between Lei and foreign currency is approximately 50/50. This allows the bank
to extend foreign currencies loans without extensive hedging of FX risk thereby they can
be accommodative to projects that have cash flow is USD or EURO.

3. Repayment periods of principal are flexible, i.e., monthly, quarterly, semi-annually, but
interest payment periods seem to be uniformly set up at monthly intervals. Likewise,
interest rates do not vary much between leading institutions where we found rates of
loans in Lei set in a range of 18% to 22% with the agricultural sector at the high end of
the range. In USD, the rates are lower but still reflect the imbalance between demand
and supply. Generally, USD lending rates are approximately 12%.

4. While additional fees are uniform, but high by most standards and cover registrations,
notary and mortgage closure, it is common practice to charge a lending commission
taken from the proceeds of the first usage that can be as high as 2.5% of the total loan
amount. This pushes borrowing costs up significantly.

5. Lastly, it is uniform practice to require a high level of security in the form of real estate,
plant, equipment, machinery, cash and/or state valued paper (securities) valued at 130%
of the loan amount. An exception to this requirement seems to be in cases where
USAID’s Loan Portfolio Guaranteed program is used to support a particular loan
(determined solely by the lending bank). In these cases, the security to loan amount ratio
will be 100% which is still onerous.

Other Financing Opportunities


USAID’s Development Credit Authority LPG program has been very effective in Moldova in
reducing the onerous security requirements imposed by Moldovan banks. It is gratifying to note
the LPG program has now been extended to seven Moldovan institutions and should increase
competitive lending practices to some extent especially for new borrowers. At the same time, the
cost of entry into a borrowing relationship with any particular bank is so high that the likelihood of
moving such a relationship is remote.

The expansion of DCA program to include loan guarantees, portable guarantees and bond
guarantees should be considered at this stage in Moldova’s development.

EBRD’s activities have been welcomed and tried (MAIB is a case in point) but the results could
not be meaningfully measured. This source of support for development should be continued.

The Rural Investment and Services Project (RISP) has been extended to the Ministry of Finance,
and we note that MAIB is acting as an intermediary in financing rural sector enterprises. This

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program allows up to 36-month grace period and has the potential for significant impact is the
development of the fresh vegetable sector.

VIII. Refrigeration/Construction Observations and Working Assumptions


1. Most facilities we visited were small due to privatization that occurred since 1992. It is
only recently that the size of the farms has started to increase in size again due to
consolidation.

2. Most new facilities use packaged freon refrigeration due to the small size of the facilities.
Central refrigeration systems are not practical for small systems.

3. Most older, existing facilities are much larger and, therefore, use a central NH3
refrigeration system. Central NH3 systems when used properly will be less expensive to
operate and more efficient.

4. Most of the facilities visited used expanded polystyrene (beadboard) insulation. This type
of insulation is less efficient than some of the newer insulations.

5. Some newer installations are using polyurethane sandwich panels which are more
efficient, but a little more expensive.

6. Most of the buildings visited used a minimum insulation thickness. This will result in a
higher operating cost for the facility.

7. Some of the businesses have very aggressive expansion plans. This was viewed as a
positive step.

8. Almost all of the facilities we visited would benefit from an upgrade in sanitation practices.

9. Most facilities do not have door and wall protection. It is recommended that bollards and
goalposts be used to protect the insulated doors and wall panels.

10. Because of the low cost of labor, not much money is invested in automation. The team
recommends that automation be introduced gradually into projects.

11. For the economy to continue to improve, larger and more efficient facilities will need to be
considered.

12. Consolidation of producers (growers) is needed to raise the efficiency of the facilities.
Also, if marketing is consolidated, it will reduce costs.

13. The team strongly recommends that a consultant familiar with the refrigeration/project
equipment and construction details attend the pre-bid meeting to convey the scope of
work. He should also be available to answer questions during the bid phase and evaluate
the bids.

14. A seminar covering maintenance of the facility and equipment should be made available
to local personnel.

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15. The feasibility estimate was based on calculations for the number and quantity of
products to be processed and stored in the facilities, plus the length of storage needed
during peak months. From this information the footprints were developed for the number
of bins or pallets stored, resulting in the space needed for receiving, processing, storing,
and shipping of product.

16. Since the team was in the very early feasibility stage of the models, some allowances
were used along with estimates based on collaboration with local designers, CNFA staff
and, the team’s past experience. The designers had been used by CNFA on previous
projects.

17. Typical estimates in the feasibility phase of a vegetable cold store facility are in the range
of $80-$100 USD/ square foot for refrigerated spaces including building, site utilities,
normal building utilities (non-process), refrigeration, electrical, and design. Normal
feasibility studies for non-refrigerated spaces are in the range of $50 USD/square foot.

18. For Models A, B, and C the number, size, and capacity of each condenser and
evaporator are a part of the detailed design to be completed in the next step. We have
assumed the use of decentralized refrigeration systems with at least two
evaporator/condenser systems in each room (where practical) for both flexibility of design
and defrost.

19. The thickness of the insulation panels will be a function of the final insulation panel
material selection, and the cost for the panels is included in the overall refrigerated
building costs with consideration given for the dollars/square foot information given from
MGM.

20. The assumptions for all of the projects are based on adequate electric power availability
and adequate water quantity, quality, and pressure. For Model A, the assumption that the
first floor over the basement area will support the cold store and precool rooms will need
to be further reviewed by a structural engineer (as we stated earlier). Models B & C also
assume that adequate sewage capacity is available. All of the feasibility estimates take
into account expandability and flexibility and were completed with the amount of
information that was available to us during our time in Moldova.

IX. Postharvest Observations


The following comments are based on fruit and vegetable products seen in cold storage rooms at
Safranax and Avis-Nord, on imported and Moldovan products at the wholesale market, and on
the quality of fruits and vegetables at Supermarket No. 1, Greenhills, and Metro Cash&Carry.

At the time of our visits, there were limited quantities of vegetables in storage. Storage rooms
and bins containing fresh products need to be cleaner. At one operation, workers were sorting
small apples stored in slatted bins which were going for processing and larger apples for the fresh
market. The sorting conditions were dirty and inefficient. The company could organize a better
and cleaner sorting and packing area with a few tables that can be frequently cleaned. Both
types of apples were fairly crisp (took samples and held overnight at room temperature before
cutting and tasting) but neither type was particularly sweet or very attractive. They would not
compete on typical international markets. It appears that the harvested apples are placed in the
cold rooms without any presorting. We saw decaying leaves and decaying fruit. This not only
leads to contamination of perfectly good product, but the decayed fruits will produce copious

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amounts of ethylene which can cause quality loss of good apples (mainly softening). Either the
apples should be sorted in the field at the time of placing into the 250-300 kg bins, or they should
be run through a sorting line upon arrival at the cold storage. This step could reduce the volume
of defective product (~20%?) and improve overall storage results. The company could charge for
this value-added operation. The apple storage room had overhead sprinklers. The apples were
relatively crisp for having been stored for over three months. The apple situation contrasts with
what the team observed for the cabbages and onions. The cabbages had considerable leaf
decay and yellowing. The leaves were easily detached from the heads which is useful for
cleaning and preparation for market, but is also indicative of decay-induced ethylene which likely
contributes to loosening of leaves (abscission). Typically in low temperature storage of
cabbages, one sees some decay and cut butt darkening, but not yellowing. Yellowing is a clear
indication that temperatures were too high in the storage room. The team did not ask for
temperature records, but at the recommended temperature of 0-1°C, European type cabbages
can typically be stored for three to four months without significant quality loss. The decay
appeared to be a complex of fungi and bacteria. Pockets of high humidity and moisture, which
favored decay development, could likely be attributed to insufficient air movement. The ideal
situation is to have air flow rates that slightly dehydrate the surface because mold spores cannot
germinate and proliferate under dryer conditions. This leads to the general recommendation for
products such as cabbage: keep it cold and dry. The team observed cabbages being trimmed for
market, but the butts were not trimmed as they should have been. The carrots were poor quality,
over mature mostly, with plenty of roots that were poorly shaped (i.e., not a smooth surface)
indicating production problems. Many of the carrots were dehydrated to a degree from which
they cannot recover with freshening in a water bath (more than 5% weight loss). In addition
there appeared to be considerable decay from Sclerotinia rot (we would need to plate out the
organism and identify it to be absolutely sure), which can be a common decay organism on
carrots (Figure 10).

Sclerotinia rot is caused by the fungus Sclerotinia sclerotiorum. This fungus occurs in the field
and develops on the carrots during storage. The amount of storage decay is an indication of the
initial level of infection. The major sign of the disease is the presence of a white cottony fungal
growth and small black grains (slerotia). This disease must be controlled in the field, which is
typically done by fungicides. Rotation of fields is another strategy as the sclerotia persist for
many years in the soil. Excessive nitrogen in the field can aggravate the appearance of the
disease, as well as excessively weedy fields. There are no particular postharvest controls since
this fungus can grow even at 0°C. For more information on long-term storage of carrots, see the
Canadian website http://www.omafra.gov.on.ca/english/engineer/facts/98-073.htm. There were
also brown onions in storage, and these presented high levels of sprouting. In another room,
workers were sorting through the onions and preparing sacks for market. These onions would be
expected to have little shelf-life remaining and would likely sprout within 1-2 weeks at room
temperatures. Sprouting in onions is an indication that the dormant period is over. Different
varieties have inherently different periods of dormancy, and if current varietal testing does not
also include an assessment of storage life, this should be added to the protocols. It is my
understanding that all varieties are tested before release to the growers. In addition to the
natural differences in dormancy, the storage conditions will also be key to determining the rate of
sprout development in storage. Onions should be held near 0°C with moderate humidity (65-
70%). If onions are being stored with cabbages and other vegetables, those conditions are not
being met. In sorting the onions, the bins were dumped on the floor, and workers hovered over
the pile while seated. Some of the simple tables and equipment described in the packinghouse
designs could be useful for this type of manual sorting. The stored onions also had considerable
development of Botrytis (gray mold) on outer scales. This is not an uncommon problem but can
indicate insufficient curing before storing and/or too high humidity during storage.

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Figure 10. Sclerotinia rot on Figure 11. Healthy onions and onions with
stored carrots. internal decay or ‘Sour rot’ of onions likely
caused by Pseudomonas cepacia. Photo
taken at Avis-Nord.

At another company the team observed similar problems with the cabbage, and it was indicated
that 2005 was a ‘difficult’ year for some of the stored vegetables. The same comments above
apply to the cabbage stored at this company. There were also red cabbages being stored and
they were in excellent condition. These had been bought recently, and it would have been useful
to identify their source and visit that storage. This company was trying some postharvest
innovations such as using plastic liners in the bins to reduce moisture loss on the carrots, and it
appeared to be working well. The quality of the carrots was below usual market expectations.
They were over mature and not smooth and well shaped. They also had what appeared to be
Sclerotinia rot, but they were firmer. Later at the wholesale market, we saw carrots imported from
Poland in plastic bags that were sorted and well shaped. The production and harvest conditions
for carrots in Moldova need to be evaluated more critically. The red beets at Avis-Nord were
being held in plastic lined bins and were of typical quality (meaning they were overmature by
most international standards of quality, but were probably acceptable for the local market; smaller
beets should command higher prices). This company was also experimenting with higher value
vegetables such as leeks and celeriac. The leeks were stored in the large 300 kg bins and
although they had considerable decay on outer leaves, they were easily cleaned up. Since the
leeks were stored with all leaves intact, but then trimmed for market, some of the excessive leaf
material could be trimmed before placing in storage. This would reduce the amount of tissue that
decays and would not detrimentally affect the quality of the leeks. Storage in smaller bins or
containers might also be helpful to reduce decay development by getting more air flow through
the product. Leeks have higher respiration rates than cabbages and need more air movement to
reduce the heat of respiration. The celeriac roots were in plastic lined bins (plastic appeared to
be a very thick 2 or 3 mm polyethylene) and were beginning to sprout, indicating that there was
heat build up due to respiration and/or storage room temperatures were simply not kept low
enough (should be near 0°C). Using perforated liners and/or thinner plastic liners would allow
more air movement through the product and remove heat without notably affecting weight loss.
At this company, there were separate bottom-air-flow bulk storages for onions. Fans periodically
turned to move air through the pile. There appeared to be little Botrytis (gray mold) in these
onions indicating the efficacy of the air movement conditons, but the onions had considerable
internal decay. This was likely due to a bacterial rot called sour rot caused by Pseudomonas
(Figure 11).

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Sour rot has been reported from onion-growing areas all over the world. Losses often appear in
stored onions, but infection usually begins in the field. Primary symptoms on onions include a
slimy (but initially firm), pale yellow to light brown decay and breakdown of one or a few inner bulb
scales. Adjacent scales may remain firm. Externally, bulbs appear sound, but the neck region
may soften after leaves have collapsed. Control measures include proper maturing of the crop
and quick drying after topping and harvest. Contaminated irrigation water has been implicated in
the spread of the disease. Overhead irrigation will enhance the problem, while furrow irrigation
will reduce it.

At the wholesale market there were many imported fruits and vegetables, most from Turkey.
Some, such as the strawberries, were of excellent quality and would be competitive in any
international market. Generally, the imported products were of very good quality (tomatoes,
peppers, eggplants, cucumbers, citrus fruits, strawberries). Imported products are sorted for
uniformity and packed into carton or wood boxes (lined with paper or cardboard to protect from
rough slats). Some products, such as cucumbers, were packed with plastic liners to protect from
water loss. The Moldovan products at the market were potatoes, carrots, cabbage, red beets,
and a few salad greens (scallions, parsley, and parsley root). In general there was no special
preparation of the stored products other than sizing of potatoes and onions. Most of these
products are sold in sacks of about 40 kg. Moldovan carrots (bulk in crates) were of lower quality
than imported Polish carrots (bulk in plastic bags). The salad greens were of very high quality
and had been produced in small, local greenhouses. It would seem there would be more demand
for such fresh, leafy vegetables, which would stimulate more production. At the wholesale
market, an inspector demonstrated measurement of nitrates in loads of incoming product.
Product is grated and a nitrate specific electrode is placed into a mound of juicy tissue. A chart
indicates maximum allowable nitrate levels. The quality assessment of nitrates in vegetables is
not done in the U.S., and it would be interesting to have more information about the origin and
need for this quality analysis. No other quality inspections were being taken by the inspector. At
this market, two techniques for short-term storage were observed: Cabbages were stored in
straw-lined, unheated trucks while onions were stored in a propane-heated trailer.

At retail markets No. 1 and Greenhills, the displayed products were generally of good quality.
Many products are presented on trays and overwrapped with food wrap. There were limited
types of products and quantities at the two markets I visited (on Stefan cel Mare street). For
example, neither store had apples (neither Moldovan or imported). The amounts and diversity of
products at supermarket Fidesco were larger. At Metro (a warehouse type store) products were
sold in large units (50 kg sack of potatoes, a whole 6kg box of mandarins). Moldovan product
usually had less attractive appearance than imported product. Washing the carrots and potatoes
would increase their appearance but, depending on how the washing is done, may reduce their
shelf-life. Metro also handled some locally grown parsley, dill, and leeks. They were of poor
quality compared to products on the wholesale market, mainly because they were placed on the
shelves with no packaging (no plastic wrap) and suffered severe dehydration. The dill had lost at
least 10% of its original weight. It appears Metro did not want to spend time preparing this
product, representing an opportunity for a supplier to do this value-added preparation.

Opportunities to Improve the Quality of Moldovan Vegetables


The team’s impression of the quality of Moldovan vegetables is perhaps distorted since we only
saw the stored products and a few salad greens at the end of January and beginning of February.
The salad greens were of excellent quality, but in many cases were not packaged properly and
quickly lost quality during marketing. The example of the severely dehydrated, locally grown dill
in the Metro market is only one example. Simple packaging (plastic sleeves or bags) would add
value and help maintain quality. Presentation is important to consumers everywhere.

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Presentation involves product quality, but also product packaging. Many of the storage
vegetables we saw (onions, cabbage, carrots, red beets) were not attractive. Product was not
cleaned/washed, often not sized, and often not packaged attractively. Some of the products were
overmature when harvested (carrots and red beets); younger, more tender product would
command higher prices. Small improvements in these areas should have significant impact on
buyers’ and consumers’ perceptions of locally produced vegetables. There are many
opportunities to improve the merchandizing of vegetables. Investments in better packaging
materials need to be accompanied by good technical information and training, especially for use
of carton boxes. Wooden boxes can be used very successfully if paper or carton liners are used
to reduce product rubbing. Wood boxes are strong, but applying labels can be difficult. Carton
boxes are widely used internationally, the graphics are more attractive, but their quality must
meet product needs. Fiberboard cartons may be made from new paper (has long fibers) or
recycled product (shorter fibers). Such differences will affect water absorption and stacking
strength on pallets. In addition, the liners and types of corrugations used will determine the box
strength. Figures 12 to 16 illustrate some of the variations observed in packaging. The box from
Holland was likely made with new paper, while the other two boxes were likely made from
recycled paper fiberboard (paper was softer). The corners of the white box were not glued, and
to do so would have increased its stacking strength. Considerable information on carton box
standards is available from the Fibre Box Association (http://www.fibrebox.org) and on the ISO
website (http://www.iso.org).

Opportunities to Diversify Moldovan Fresh Market Vegetables


In general, the types of vegetables and fruits available were very limited in quantity, quality, and
presentation. The imported vegetables include tomatoes, peppers, cucumbers, and eggplants.
The Moldovan stored products included cabbages, onions, carrots, and red beets. There were
small volumes of higher value items such as the salad greens. Diversifying the product mix could
involve:

1. Adding completely new products to the offering. This is exemplified by the fruit category
in which I saw mango, kiwano (did anyone really know what this was??!!), and other
exotic products in the Moldovan supermarkets. For these products to be successful there
must be aggressive marketing with recipes, tastings, etc. Other approaches should be
explored first for the vegetables.

2. Add new types of well known products. In any product category (i.e. tomatoes),
increased sales can be achieved by having greater diversity. For example, the offering is
not just tomatoes, but includes round tomatoes, round tomatoes at different stages of
ripeness, roma (plum) tomatoes, cherry tomatoes, tomatoes on the vine, and grape
tomatoes. In the U.S. markets, tomato sales increased substantially once the category
was diversified. It appears that Moldovan pepper production is diversified with over five
types, but this could be even further diversified. This same concept can by applied to
almost any vegetable. In U.S. supermarkets, a common vegetable such as carrots can be
found in many presentations: 1, 2 or 5 pound polyethylene bags, as bunched carrots (true
baby carrots), and processed, baby-peeled carrots (and these in turn are sold in different
presentations). There are also many different types available in carrots (Figure 17).
Other examples could be a greater variety of potatoes, both for cooking and chip
production (Figure 18), and more types of beets, as well as offering bunched product
(leaves and roots) (Figure 19).

3. Adding products that are ‘relatives’ of currently produced vegetables. Considering the
ample traditional production of cabbages, onions, red beets, and carrots, it could be
interesting to consider related products which would require similar production conditions.

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In the cabbage family (besides white, red, and napa cabbages) there are cauliflower,
broccoli, brussel sprouts, kohlrabi, bok choy, turnips, etc. In the onion family, there are
shallots, leeks, chive, and immature garlic. Carrot relatives include celery, celeriac
(already being tried by some growers), parsnips, and fennel. These products may not
have an important internal market but would add diversity to the export mix. Both local
mushrooms and herbs could be further diversified as these are very high value products
(Fig. 20).

4. Organic production of vegetables. This option for increasing the diversity of vegetables
produced in Moldova is already being considered. In the U.S., organically produced
vegetables have increased, but total volumes are still relatively small (~5% of total
production). Opportunities to market organically produced vegetables, in Western
Europe may be very interesting.

5. Value-added vegetables, especially fresh-cut products. This category is increasingly


important in the U.S. because it adds convenience to many vegetables. This category as
defined by the International Fresh-cut Produce Association (http://www.fresh-cuts.org):
“Fresh-cut produce is any fresh fruit or vegetable or any combination thereof that has
been physically altered from its original form, but remains in a fresh state. Regardless of
commodity, it has been trimmed, peeled, washed and cut into 100% usable product that
is subsequently bagged or prepackaged to offer consumers high nutrition, convenience
and value while still maintaining freshness”. Examples include cut lettuce salads,
trimmed lettuce heads, cut vegetable trays, ‘baby’ carrots, peeled garlic and onions,
sliced mushrooms, and shredded cabbage (Figure 21). These products must be
produced under strict sanitary conditions (usually inside a cold room) because they are
prepared as ‘ready to eat’ products: 1) meticulous cleanliness of equipment, employees,
and product ; 2) rigid adherence to refrigerated temperature handling conditions; 3)
complete integrity of packages; 4) strict adherence to produce ‘use by’ dates and
handling instructions. Although Moldova is not ready for this product category and must
first gain expertise in improving quality, presentation and postharvest handling of intact
vegetables, some of the infrastructure needed is similar (cold rooms). Although home
cooking is treasured in Moldova, it would seem there could be foodservice opportunities
for this product category.

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Figure 12. Local wooden box, carton box for


imported products from Turkey (blue box), and
carton box from Romania for export of Moldovan
vegetables (white box).

Figure 13. Close-up of corrugations of carton


box for imported products from Turkey (blue
box). Box corners are glued. No carton or box
specifications indicated.

Figure 14. Corrugations of the carton box from


Romania for export of Moldovan vegetables
(white box). Box is folded into place but corners
are not glued. No carton or box specifications
indicated.

Figure 15. Carton box from Holland for peppers


indicating specifications. Box corners are glued.

Figure 16. Corrugations of the carton box from


Holland.

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41

Figure 17. Some of the color


diversity among carrots.
www.ars.usda.gov

Figure 18. Diversity in Potatoes.


There is tremendous di-versity in
potatoes for regular cooking as well as
chip production.

Figure 19. Diversity in Beets. In


recent years, more types of fresh beets
have appeared in the markets in the
U.S. and have increased interest in this
vegetable.

Figure 20. Diversity in Mushrooms.


Mushroom consumption has increased
as more types of mushrooms are
White button Brown button produced for retail marketing in the U.S.
Morel

Oyster
Enoki
Porcini
www.miva.com/products

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42

Figure 21. Examples of fresh-cut vegetable products. A product such as romaine lettuce
hearts has very good shelf-life compare to the cut lettuce products. Fresh peeled garlic
(bottom right), pre-trimmed onions, and slices mushrooms and peppers are important in food
service operations.

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43

X. Acknowledgements
The team would like to extend its deep gratitude to Mark Grubb and the entire staff of CNFA in
Moldova. We enjoyed a level of hospitality and cooperation that surpassed our expectations and
previous experiences. A special thanks goes to Valentina Plesca, Victor Rosca, Oleg Brinza,
Valeria Ciobanu, Carolina Grozav, Jackie Boardman, and Simion Boston, for putting together and
then accompanying us on a very comprehensive schedule, which allowed us to accumulate the
information necessary to complete the Scope of Work. We also appreciate the comments and
assistance provided by Mark Smith, Anatoly Terzi and Viorel Gutu. Finally we thank all those
persons and companies contacted for their time and for sharing their experiences with the team.

XI. Addenda
A. Financial Exhibits
Gross Margin Sales—Model A
Gross Margin Sales—Model B
Gross Margin Sales—Model C

B. Supplier Database

C. Team Activities

D. Contacts

For copies of the report addenda, please contact the World Food Logistics Organization at 703
373 4300 (phone), 703 373 4301 (fax), or email@wflo.org.

Vegetable Packinghouse Design Project—Final Report

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