Leibniz Universität Hannover

Report on:
Module A05 “Analysis of Business Operation by Internship”

At
Elbe-Obst Company

February 25 to March 21, 2008

Submitted by:
Rishi Ram Kattel
Institute for Environmental Economics and World Trade
Leibniz Universität Hannover
May 2008

Submitted to:
Prof. Dr. D. M. Hörmann
Leibniz Universität, Hannover.

Supervisor at the Elbe-Obst

Mr. Jens Anderson
Marketing Public Relation EDP,
Elbe-Obst company.
Bassenflether Chaussee 4 b
21723 Hollern-Twielenfleth
 Table of Contents
Table of Contents ..................................................................................................................... I
List of Figures and Tables......................................................................................................II
Abbreviations ........................................................................................................................ III
Preface.................................................................................................................................... IV
Acknowledgments ...................................................................................................................V

Section I: Elbe-Obst Company ...............................................................................................1

1. Introduction............................................................................................................................1
2. History of Elbe- Obst .............................................................................................................2
3. Organizational structure.........................................................................................................4
4. The management of the cultivation of Elbe- Obst .................................................................5
4.1 Characterization of the Elbe-Obst producer-group...........................................................6
4.2 Data about the production.................................................................................................6
4.3 Integrated crop management.............................................................................................8
4.3.1 Cultivation Site Planning ............................................................................................9
4.3.2 Maintenance Measures................................................................................................9
4.3.3 Harvest and Storage ..................................................................................................10
4.3.4 Quality assurance ......................................................................................................11
4.3.5 Research and Consulting...........................................................................................12
5. Elbe-Obst fruit marketing ....................................................................................................13
5.1 Marketing company (Vertriebsgesellschaft mbH)..........................................................13
5.2 Marketing period of fruit (especially apple and other pomaceae fruit) ..........................14
5.3 The food retailing industry..............................................................................................14
5.3.1 Brands .......................................................................................................................14
5.3.1.1 Elbe-Obst standard design ..................................................................................14
5.3.1.2 Elbe-Obst strudel design .....................................................................................15
5.3.1.3 Elbe-Obst wave design .......................................................................................15
5.3.1.4 For Celebrations..................................................................................................16
5.3.1.5 Obst-Land ...........................................................................................................16
5.3.1.6 Apple Kids ..........................................................................................................16
5.3.1.7 Knacky ................................................................................................................17
5.3.2 Seal of quality ...........................................................................................................17
5.3.2.1 CMA Quality Seal...............................................................................................18
5.4. The Convenience product industry ................................................................................18
5.5. The Export Market.........................................................................................................19
5.6. Processing industry ........................................................................................................20
6. Internship objectives: ...........................................................................................................21

Part II: Daily Schedule ..........................................................................................................22

Part III: Key Learning, Recommendation ..........................................................................25

1. Key Learning .......................................................................................................................25
2. Recommendation .................................................................................................................26
References Cited.....................................................................................................................27

I
List of Figures and Tables
Figures: Page
Figure 1: Elbe-Obst Fruits growing area and Company location…………………..……………1
Figure 2: Organizational structure of Elbe Obst Company………………………………….……5
Figure 3: 3a: Local transportation Fig 3b: Marketing transportation means…….…...6
Figure 4: Data about fruit production in Elbe-Obst area……………………………….…………7
Figure 5: Farmer involved integrated pest management practice in apple………………...…...8
Figure 6: Major apple growing field and a glance of site planning in Elbe area………..…….9
Figure 7: Bee and fruit maintenance measures……………………………………………………10
Figure 8: Apple harvesting in Elbe-Obst orchards………………………………………………..11
Figure 9: Fruit quality assurance from ready for packaging apple…………………………….12
Figure 10: Different certification logo that adopted by Elbe.Obst………………………..….…12
Figure 11: Elbe-Obst supplies and coordination between producer group and Market
Company……………………………………………………………………………….….13
Figure 12: Elbe-Obst standard design and labeling……………………………………………...15
Figure 13: Elbe-Obst studel design pack…………………………………………………………..15
Figure 14: Elbe-Obst wave design in different variety of apple package………………………16
Figure 15: Apple kids brand of apple ready for market………………………………………….17
Figure 16: Kancky logo and apple packed for immediate consumption………………………..17
Figure 17: Convenience apple produces……………………………………………………………19
Figure 18: Transportation means and apple sorting, packaging house ……………………….20
Figure 19: Internee involved in apple sorting, labeling and packing in Elbe-Obst company.21

Tables:
Table 1: Monograph concerning the history of Elbe-Obst……………………………………...…2
Table 2: The deviding of the apple varieties in 2007 and the plan for the deviding
in 2017, prepared by Elbe-Obst Project………………………………………………....7
Table 3: Fruit marketing period …………………………………………………………………….14
Table 4: Calendar of daily activities………………………………………………………………..22

II
Abbreviations

QS: Quality and Safety Standard

IFS: International Food Standard
EUREPGAP: EUREP Good Agricultural Practices
Mt.: Metric ton
mm: millimetre
CA/ULO: Control Atmosper/ Ultra-Low-Oxygen
CO2: Crbon-dioxide
O2: Oxygen
0
C: Degree Celcius
ha: Hectare

III
Preface

This report is prepared for the documentation of knowledge and experience gained during my
internship from 25th February to 21st March, 2008 at Elbe- Obst Company, Bassenflether,
Stade. “Analysis of Business Operation by Internship” is a core course component of the
Research Degree “Master of Science in International Horticulture” at Leibniz Universität,
Hannover where students are intended to gain practical experience and become accustomed
with background of the organization where we work.

In order to incorporate the important facts about Elbe-Obst and to arrange other contents in
sequence, this report is divided into three sections. In section I, overall information about
Elbe-Obst, its history, organizational structure and its major portfolios are mentioned. While
describing Elbe-Obst, it is started from management of the fruit cultivation and later on
focused only marketing portfolio. Detail description about Elbe- Obst supplies including the
processing industry, export market, convenience product industry and food retailing industry
of production group and marketing group is included in the same section. In section II, daily
schedule of the internee is listed in table. Finally, key learning and recommendation is
discussed in section III.

IV
Acknowledgments

I would like to extend my heartfelt gratitude to Elbe-Obst, which accepted me as an internee

and provided me a great opportunity to work and gain practical experience in fruit sorting,
packing, labeling and value chain market development. I am thankful to Mr. Jens Anderson,
Marketing Public Relation EDP, Elbe-Obst who provided all the necessary guidance and
supervision during my internship.

My grateful thanks go to my academic supervisor Prof. Dr. Ulrike Grote, Institute for
Environmental Economics and World Trade who have encouraged and provided me valuable
supports/interactions.

Equally, I am thankful to Prof. Dr D. M. Hörmann and Dr. Karin Hoenicke, Leibniz

Universität Hannover who coordinated with Elbe-Obst for my internship.

I am grateful to all the staff and farmer family in particular the Elbe-Obst team where I found
good help and assistance in the daily work. Meanwhile I am very pleased with friendly and
supportive behaviour of the team.

I wish to express my heartfelt thanks and colleagues Mr. Pradyot Ranjan Jena, Mrs. Sweta
Khanal, Mr. Yogesh Lama, Mr. Homnath Giri and Mrs. Sita Giri who have offered me
encouragement and valuable supports.

Last but never least, the heartily encouragement from family members is the backbone to
continue every endeavors for ever. I am very much grateful to them.

……………..
Rishi Ram Kattel

M.Sc. in International Horticulture

Institute for Environmental economics and World Trade

V
Section I: Elbe-Obst Company

1. Introduction
The growing area “Old Land Region” lies north-western of Hamburg in the river Elbe`s
glacial valley. Fruit-growing in the Lower Elbe region boasts a tradition which dates back
over 600 years. Settlers dug canals, built dikes and established settlements, thus creating the
biggest coherent fruit growing are in Northern Europe. Residents of the “Altes Land”
discovered, and exploited, fruit-growing as a profitable line of business on Hamburg’s
hinterland hundreds of years ago.

Fig. 1: Elbe-Obst Fruits growing area and Company location

Elbe-Obst supplies the food retailing industry, the processing industry, the convenience
product industry and also the export market. Besides the provision of fruit, the performance
range comprises numerous services incorporated the group of processes between the fruit
producers and the Elbe-Obst marketing company/Elbe-Obst producer group sales market. By
combining producer know-how and marketing skills in the form of franchise system, Elbe-
Obst is able to offer cultivation and marketing from a single source
.
The marketing company Elbe-Obst Vertriebsgesellschaft mbH is made up an association of
commercial companies and the producer group Elbe-Obst Erzeugerorganisation r. V., and
thus fulfils the demand for concentration on the supply side. It is responsible for marketing
measures as well as drawing up offers, invoicing, the collection procedure and distribution. It
has a fleet of 76 trucks with a transport capacity of 1500 Mt.

In 1968, approximately 600 fruit producers merged to form the producer group Elbe-Obst
Erzeugerorganisation. Today these cultivate some 6000 hectares of Pomaceous, stone and
soft fruits. Average annual fruit production yields exceed 120,000 Mt., whereby apples are
the major product. Elbe-Obst therefore lays claim to the vast majority of fruit cultivated in the
region.
The grouping, sorting, preparation and packing of the produce are carried out at 9 sorting and
packing houses in the fruit- growing region. Each house has scheduling, cooling and
CA/ULO facilities with a total capacity of over 100,000 Mt. These warehouses are equipped
with wide-ranging technical facilities that are constantly up-dated. State-of-the-art equipment
makes it possible to process some 210 Mt. of fruit per hour

2. History of Elbe- Obst

Well looked after half-timbered houses, water, dikes, winding roads and fruit-trees as far as
the eye can see – home to the largest single fruit-growing area in northern Europe. Fruit-
growing in the Lower Elbe region boasts a tradition which dates back over 600 years. Dutch
settlers dug canals (catch-water ditches), built dikes and established settlements, thus creating
the landscape which is still typical of the area today. Residents of the “Altes Land”
discovered, and exploited, fruit-growing as a profitable line of business on Hamburg’s
hinterland hundreds of years ago. The historical development of the Elbe-Obst through
different years is presented below.

Year Activities
2002 Beginning of the marketing of the new club-sort Red Prince.
2001 Recognised as a producer organisation in accordance with VO (EG) Nr. 2200/96.
2000 Founding of the Deutsches Obst-Export-Kontor GmbH together with other leading
grower-companies.
1999 New construction of the central administration in Bassenfleth. The sorting stations
in Bachenbrock and Wöhrden and the central administration in Stade have been
relocated at the new site.
1998 Taking over the "Obstverwertung Stader Geest eG" (grower-organisation) with the

2
 places in Apensen and Osterbruch.
1997 Implementation of the European Union Joint Market Regulations for Fruit (GMO)
at Elbe-Obst.
1996 Start of an EDP project over several years with the networking of all locations,
introduction of an inventory control system, a controlling and financial accounting
system and the creation of an internet appearance.
1995 Revamping the form and colour of the "Elbe-Obst" logo. Establishment of the
"Obst-Land" brand.
1994 Founding of the Elbe-Obst Vertriebsgesellschaft mbH.
1993 Establishment of the "Apple-Kids" brand. Establishment of the territory seal "Fruit
from Altes Land … cultivated using integrated fruit farming methods subject to
ongoing inspections carried out by the Hanover and Hamburg Agricultural
Chambers" with the advertising association for fruit grown using integrated
farming methods.
1992 Building of the new packing house in Guderhandviertel.
1990 Establishment of the Advertising Association for Fruit Grown Using Integrated
Farming Methods (WOIAN) with the Marketinggesellschaft für neidersächsische
Agrarprodukte e.V. and the regional producing companies.
1998 Establishment of the quality seal "cultivated using integrated fruit farming methods
in the Lower Elbe region - subject to ongoing inspections carried out by the
Hanover Agricultural Chamber" with the Erzeugerorganisationen der
Marktvereinigung Niedersachsen e.V.
1986 Founding of the "ASK Obstverwertungs GmbH" together with other grower
organizations around the lower part of the Elbe for the concentrated selling of
industrial fruits.
1984 Member of the foundation of the "Marktvereinigung Niedersachsen für Obst e.V."
(club of grower organizations around the Elbe).
1983 Building of the packing house in Neuenfelde.
1972 Change of name to Elbe-Obst Erzeugerorganisation r.V. Membership in
"Marktvereinigung norddeutscher Erzeugerorganisationen Obst und Gemüse e.V.
Setting up sorting stations in Bachenbrock, Huttfleth, Jork, Königreich and Hoopte.
1971 Changing of the name OEON into "Elbe-Obst R.V. Obsterzeugerorganisation".

3
 Building of the packing houses in Bachenbrock, Huttfleth, Jork, Königreich und
Hoopte.
1969 Development and Introduction of the trade mark "Elbe-Obst".
1968 Foundation of the "Obsterzeugerorganisation Niederelbe r.V. OEON" (grower-
organization) as the organization before the Elbe-Obst Erzeugerorganisation r.V.
1966 Beginning of crises in the German fruit growing industry as a result of surplus
production in the EEC. As a result of the creation of arable land, the following
decades witness a continual restructuring of farming from large via medium to
small sized M9 trees and an updating of the product range, i.e. a modernization of
fruit farming. By 2000 the area used for cultivation remained stable at some 10,000
ha, while the number of companies amounted to 1,000.
1933 Self-sufficiency economy with control of levies by district levy offices. Cultivated
areas were 9,600 ha. Transport including the use of Lorries.
1929 Establishment of the Fruit Testing Group as a producers' self-help organization.
1920 Area for cultivation of 2,580 ha. More than 1,600 fruit farms. Transport including
the railway and coastal motor ships.
1912 Recognized key area for cultivation of fresh fruit, almost sole supplier of the
German marmalade industry. However, also suffers crises as a result of insect
infestation.
1987 Recognized key area for cultivation of fresh fruit, almost sole supplier of the
German marmalade industry. However, also suffers crises as a result of insect
infestation.
1972 Popular area for cultivation of 600 ha.
1825 Storms and floods destroy more than 35,900 fruit trees.
1656 Reconstruction following the Thirty Years' War, more than 700 fruit farms.
1581 Cherry war between Hamburg and the archbishopric of Bremen, blocking of
markets in Hamburg for fruit from Altes Land.
1320 1320 initial mention of a fruit garden in Bassenfleth.
Table 1: Monograph concerning the history of Elbe-Obst

3. Organizational structure
The Board of Executive Directors of Elbe-Obst, consists of nine members. Mr. Heinrich
Völkers is the chairman of the Board. The board is responsible for the management of the

4
company. Three divisions consisting sale organization, administration and packing house
apensen are responsible in all production and marketing business. Its activities and decisions
are geared to the company`interest.

Elbe-Obst Company
Management Committee
Chairman: Heinrich Völkers

A. Sales Organization B. Administration C. Packing house Apensen

Frank Döscher 1. Bookkeeping, control and staffs 1. Sales Manager:

Melitta Frühauf development : Hans Luckert
Wilfried von Allwörden
Manuela Mertins Björn Wieneke
Jens Hohmann 2. Marketing Public Relation
EDP: Jens Anderson
2. Sales Agent:
3. Secretariat: Peter Buckow
Petra Täuber, Maria Waller Sven Burmester

4. Packing house, plant and

Equipment: Ulrich Braun

5. Food Security, Biology

Protection: Carsten Greisiger
Internship supervisor at
6. Autorized Signatory: the Elbe-Obst company .
Stefan Moje

7. Sales Manager:
Jens Weisner, Jens Lohmann

5. Fruit-clearing system:
Martina Gutzeit, Sarah Dammann

Fig. 2: Organizational structure of Elbe Obst Company

4. The management of the cultivation of Elbe- Obst

Two ideally suited types of soil are predominant on the fruit-growing areas of the lower Elbe
region which covers the best part of 10,500 hectares. On the one hand there is the alluvial
land known as marsh, located in the Elbe glacial valley at approximately two metres above or
one metre below sea level. The other is the diluvial claylike sand know as Geest, some thirty
metres above sea level. The average of the temperature is 8.7 oC a year. There are averagely
1500 hours with sunshine a year. The amount of rainfall is 740 mm a year.
The sugar/acid level is a key parameter for the development of a fruit’s taste. The climate
predominant in the lower Elbe region produces a balanced amount of acid in proportion to

5
sugar, thus providing the foundation for the aforementioned excellent taste. The colder nights
prior to harvesting, which are customary in the fruit-growing region, bring about an excellent
intensity of red blush. In contrast, the warmer growth periods after blossoming enhance the
development of an ideal-size fruit. The cultivation of crops in a climate ideally suited to
pomaceous fruit produces a thin peel covered with merely a thin film of wax due to the lack
of protection needed against transpiration.

4.1 Characterization of the Elbe-Obst producer-group

In 1968, today approximately 450 fruit producers merged to form the producer group Elbe-
Obst Erzeugerorganisation. They cultivate some 6,000 hectares of pomaceous, stone and soft
fruits. Elbe-Obst therefore lays claim to the vast majority of fruit cultivated in the region.
The grouping, sorting, preparation and packing of the produce are carried out at 9 sorting and
packing houses in the fruit-growing region. Each house has scheduling, cooling and CA/ULO
facilities with a total capacity of over 100,000 tonnes. These warehouses are equipped with
wide-ranging technical facilities that are constantly up-dated. State-of-the-art equipment
makes it possible to process some 210 Mt. of fruit per hour.

Fig 3a: Local transportation Fig 3b: Marketing transportation means

Elbe-Obst supplies the food retailing industry, the processing industry, the convenience
product industry and also the export market. By combining producer know-how and
marketing skills, Elbe-Obst is able to offer cultivation and marketing from a single source.

4.2 Data about the production

The Elbe-Obst product range consists of pomaceous fruit, stone fruit and soft fruits, whereby
apples account for the majority of production. For the export to Taiwan Elbe-Obst only want
to sell apples at the moment. The deviding of the product range shows the following chart.

6
 Pomaceous Fruit: 91 %, 5.200 ha

Stone Fruit: 7 %, 420 ha

Soft Fruits: 2 %, 130 ha

Fig. 4: Data about fruit production in Elbe-Obst area

The Average annual fruit production yields exceed 150000 Mt. Besides the typical market
varieties the product range also includes regional varieties. Pears take on a notable support
part with some 3,000 Mt. per season. A difference is made between early and late varieties. In
the case of early varieties, the ripening period provides the fruit with a full edible character.
Later varieties only develop the full aroma a number of weeks after the harvest. The
deviding of the apple varieties in 2007 and the plan for the deviding in 2017 shows the
following chart:
ambition
actual ambition alteration in % from
Sorte quantity(Mt.) % from 100 2017 % 100
Elstar 43,000 24.5%
32,500
- 24 % 20.9%

Jonagored/Rubinst. 35,000 22.9%

20,000
- 43 % 10.5%

Red Prince 8,500 3.8%

20,000
+ 135 % 14.0%

Braeburn 2,000 0.8%

15,000
+ 650 % 8.4%

Kanzi 100 0.0%

15,000
+ 14.900 % 10.5%

Rubens 620 0.2%

10,000
+ 1.513 % 10.5%

Boskoop 10,000 7.6%

7,000
- 30 % 4.9%

Holsteiner Cox 15,000 9.9%

7,000
-53 % 7.0%

Jonagold/Jonica 15,000 11.5%

4,000
- 73 % 1.4%

sonstige Äpfel 6,000 4.6%

3,000
- 50% 2.1%

Gloster 10,000 6.9%

2,000
- 80 % 1.4%

Golden Delicious 2,200 1.7%

1,500
- 32 % 1.0%

Gala 800 0.6%

800
+/- 0 0.6%
Cox Orange 4,000 3.1% - - 0.0%
Ingrid Marie 2,500 1.5% - - 0.0%
Fiesta 500 0.4% - - 0.0%
Table 2: The deviding of the apple varieties in 2007 and the plan for the deviding in 2017,
prepared by Elbe-Obst Project.

7
4.3 Integrated crop management
In order to do justice to the responsibility to consumers and commitment to the environment,
the Altes Land Fruit-Growing Research Institute (OVR), in conjunction with Elbe-Obst and
other organisations, took on the task of drawing up “Guidelines for integrated crop
management in the lower Elbe region”.
“Integrated” means equal consideration within a single system is given to all the production
factors which have an affect on the fruit-growing procedure, whereby binding cultivation
regulations stipulate that the entire group of processes regarding fruit production be
incorporated in the system.
“Crop management”: the monitoring of cultivation regulations by the Lower Saxony and
Hamburg Chambers of Agriculture as part of the production process.
In addition to the cultivation procedure a seal of quality, „Altes Land Fruit“ (“Fruits of Old
Land Region”), has been introduced for market communication and labelling purposes. The
blue represents the river Elbe, green the marsh area and yellow depicts the Geest region. This
logo is only used for goods produced via integrated crop management.

The major objective of the cultivation procedure is to

supply the consumer with fruit grown in a healthy
environment, use environmentally-friendly production
methods and maintain family-owned fruit farming businesses.
In integrated crop management a key role is played by the fruit producer, who observes,
utilises and promotes the self-regulating natural cycles. For example, knocking tests,
pheromone-baited insect traps and egg deposit tests provide information as to the population
development of beneficial insects and parasites.

Fig. 5: Farmer involved integrated pest management practice in apple.

8
As a result of the systematic application of natural limitation factors regarding pest control,
for example by way of encouraging the application on beneficial insects, the use of pesticides
can be considerably reduced. However, in order to protect plants from fungal disease and
noxious animals, approved pesticides which do not pose an environmental threat to beneficial
insects or water may be applied in carefully-targeted doses.
The “Guidelines for integrated crop management in the lower Elbe river region” comprise the
cultivation site planning, the maintenance measures, the harvest and storage and the quality
assurance.

4.3.1 Cultivation site planning

Expert and intensive maintenance work, and crop management, in the orchards make it
possible to provide the required yield for Elbe-Obst member companies. A carefully planned
co-ordination of all fruit-growing measures in line with integrated crop management criteria
guarantees the best possible stock success.

Fig. 6: Major apple growing field and a glance of site planning in Elbe area.
Besides an analysis of site conditions, the cultivation and planning work consists, in
particular, of an analysis of the apples and documents so as to avoid a slump in earnings and
a drop in quality. Thus varieties in strong demand can be cultivated in greater numbers and
other reduced to meet product mix demands. To this end dwarf stock trees are cultivated in
hedgerows on sites with ample light.

4.3.2 Maintenance measures

Recurrent maintenance measures include soil, plant and fruit management as well as pest
control. Soil management is carried out by carefully applying specific tools so as to co-
ordinate the mineral nutrition levels of fruit crops with plant requirements by way of soil and

9
leaf samples. Frequent mulching of the grass-covered row middles creates a uniform supply
of water, humus and nutrition. The pruning of fruit trees so as to replenish the fruit-bearing
boughs is a key part of plant training. The objective is to achieve a better fruit colour and
exploitation of the available light.

Fig.7: Bee and fruit maintenance measures

Fruit management measures are carried out in relation to the crop regulation. This is done by
means of the frost-protection sprinklers that cover 50 % of the cultivated area, pollination via
the targeted introduction of beehives into the orchards and thinning by hand to remove
damaged fruit.

4.3.3 Harvest and storage

The apples are picked on a number of occasions during the harvesting period on the basis of
different degrees or ripeness and size of the fruit so as to improve quality. The degree of
ripeness dictates whether the fruit is to be stored for sale and consumption within hours or
cold-stored in the CA/ULO warehouses. Such storage procedures are intended to reduce the
fruit-respiration of the apple, retard the emission of volatile substances and prolong the
marketing season, whereby it is necessary that the quality of the fruit be maintained until it is
offered to the consumer.
By storing their produce producers aim to reduce the respiratory process of apples naturally
so as to delay shriveling. In this respect the quality of fruit needs to be maintained as regards
the key substances such as vitamins and taste up to the time of purchase by end users. Long-
term storage relieves pressure on marketing in autumn and extends the marketing season.

10
Fig. 8: Apple harvesting in Elbe-Obst orchards
Apples are kept in cold-storage for 2 to 3 months. At 0.5°C to 5°C the fruit’s respiratory
process is reduced by some 20% to 30%. Furthermore, in addition to storage in airtight rooms
the composition of the air in CA/ULO warehouses (Controlled Atmosphere/Ultra-Low
Oxygen) is altered so that the fruit subject to the variety can be stored for 5 to 12 months.
The objective of long-term storage in CA/ULO warehouses is achieved if the oxygen content
(O2) of the respective type of apple is reduced to 1.3% - 1.5%, and the carbon-dioxide content
(CO2) is increased to 0.8% - 3.5%. In an uncontrolled atmosphere there is about 20.9%
oxygen, approx. 79% nitrogen and some 0.03% carbon-dioxide. A reduction of the oxygen
content is achieved by the fruit’s natural respiratory process. Nitrogen is fed by machine into
the warehouse to accelerate this process. The carbon-dioxide content increases due to the
exhalation of the fruit. To maintain values which are compatible with other types of apples,
carbon-dioxide is constantly withdrawn from the air in the warehouses. This is achieved by
way of a chemical fusion with hydrated lime, or via physical addition to activated carbon.
The air in the warehouse is checked by using precision measurement and controlling
equipment and also via samples taken daily by fruit farmers.
Humidity regulation is a further key aspect of long-term storage. An ideal balance between
cold-storage and heat insulation of the storage rooms forms the basis for a constant high level
of humidity.

4.3.4 Quality assurance

Integrated fruit farming requires that precise records be kept of the development of cultures
and the measures that are implemented. Precise records must be kept of when, why and
which measures are implemented. To this end fruit farmers keep operations record books
(Quality-management-handbook). These include, for example, documentation of the results

11
of soil and leaf analyses, fertiliser and pesticide measures, results of monitoring activities,
and descriptions of plant systems and sorting documents.

Fig. 9: Fruit quality assurance from ready for packaging apple.

Companies which pursue an integrated fruit farming policy are under obligation to disclose
their type of production, allow the company's operations record book to be inspected, and
grant access to their orchards and equipment for inspection purposes. They also permit
specimens of soil, leaves and fruit to be taken from their production sites as regards the
inspection of residues. The page entitled Quality Assurance provides a systematic overview
of the implemented controls and the respective situations in which controls are carried out.
The Elbe-Obst producer group is certified from EUREPGAP, Quality and Safety
standard(SQ) und International Food Standard(IFS).

Fig. 10: Different certification logo that adopted by Elbe-Obst.

4.3.5 Research and consulting

Fruit-growing research is carried out at the Lower Saxony Chamber of Agriculture Fruit-
Growing Research Institute (OVA). The research refers to varieties, rootstocks, plant-
systems, pesticides, fertilizer, irrigation, drainage/dewatering, fruit-quality, stocking,
machines, apparatuses, application engineering and economics. The results are directly
incorporated in the range of services provided by the Old Land Fruit-Growing Research
Institute (OVR). All Elbe-Obst producers belong to the syndicate.
Above all, the syndicate provides consulting services by way of personal discussions which
are supplemented in the group consulting sessions via discussion evenings, specialist lectures
and further training courses. In addition, the syndicate publishes the farmers operations

12
record book (Quality-management-handbook), drawn up by the producers. The “Guidelines
for integrated crop management in the lower Elbe region” are subject to an annual dynamic
adjustment procedure set out in this book. The Lower Saxony Chamber of Agriculture Fruit-
Growing Research Institute (OVA), the Old Land Fruit-Growing Research Institute (OVR),
the Biological Fruit-Research-Group from North-Germany (ÖON) and the Water Protection
Council of the Hamburg Agricultural Chamber together form the Fruit Growing Testing and
Consulting Centre (OVB). The domicile of the OVB is in the Old Land region.

5. Elbe-Obst fruit marketing

5.1 Marketing company (Vertriebsgesellschaft mbH)

The marketing company Elbe-Obst Vertriebsgesellschaft mbH is made up of an association
of commercial companies and the producer group Elbe-Obst Erzeugerorganisation r. V., and
thus fulfils the demand for concentration on the supply side. It is responsible for marketing
measures as well as drawing up offers, invoicing, the collection procedure and distribution. It
has a fleet of 76 trucks with a transport capacity of 1,500 Mt. The marketing company Elbe-
Obst Vertriebsgesellschaft mbH is made up of an association of commercial companies and
the producer group Elbe-Obst Erzeugerorganisation r. V., and thus fulfils the demand for
concentration on the supply side. It is responsible for marketing measures as well as drawing
up offers, invoicing, the collection procedure and distribution. It has a fleet of 76 trucks with
a transport capacity of 1,500 Mt.

Packing facilities are constantly brought up – to –date regarding the presentation

and transport of the fruit so as to supply all conventional types of packing

The Processing The Export

Industry Market The
Convenience
The Food Product
Retailing Industry
Elbe-Obst
Industry

Producer Group Marketing Company

(Erzeugerorganisation (Vertriebsgesellschaft
r. V.) mbH)

Fig 11: Elbe-Obst supplies and coordination between producer group and Market Company.

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5.2 Marketing period of fruit (especially apple and other pomaceae fruit)
Table 3: Fruit marketing period.

Months
Fruit varieties

5.3 The food retailing industry

5.3.1 Brands

5.3.1.1 Elbe-Obst standard design

The "Elbe-Obst" brand was introduced in 1969. At the same time the company was renamed
Elbe-Obst Erzeugerorganisation r.V. [Elbe-Obst Producer Organisation]. Since then several
million marks have been spent on establishing the "Elbe-Obst" manufacturer’s brand. As a
result the company has gained considerable popularity among food retailing industry
customers and end users. In 1995 the colour and form of the logo were redesigned without,
however, altering the characteristics.

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The Elbe-Obst logo is used solely to market fruit produced by members of the producer’s
organisation. The following design lines have been created for the various sales programmes:
Standard, Strudel, Wave, For Celebrations and Entertainment.
In the case of the Standard design, advertising vehicles with white backgrounds are used
which either illustrate the Elbe-Obst logo on its own or include the region and quality seal.
All customary cardboard boxes and grade notes are available in the standard design. Large
boxes are also available in brown.

Fig. 12: Elbe-Obst standard design and labeling.

5.3.1.2 Elbe-Obst strudel design

The Strudel design is used for insert cards, foodtainer recipe cards, price tags and grade notes.
Thanks to the colour design, the aforementioned advertising vehicles are ideally suited for
use on IFCO or STECO trays.
Insert cards are used for goods that are packed in one or two-layer trays. The insert card bears
the name of the type of fruit in large letters. This can be supplemented with information about
the taste below the name of the fruit. Such additional information can be placed on the short
or the long side of the tray.

Fig.13: Elbe-Obst studel design pack.

5.3.1.3 Elbe-Obst wave design

The Wave design is available on insert cards, foodtainer recipe cards, price tags and grade
notes. It draws attention to the maritime aspect of the fruit growing region. Thanks to the
colour design, the aforementioned advertising vehicles are ideally suited for use on Europool
trays.

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Insert cards are used for goods that are packed in one or two-layer trays. The insert card bears
the name of the type of fruit in large letters. This can be supplemented with information about
the taste below the name of the fruit. Such additional information can be placed on the short
or the long side of the tray.

Fig. 14: Elbe-Obst wave design in different variety of apple package.

5.3.1.4 For Celebrations

The 3Kg basket is one of the most successful advertising campaign boxes. It is the most
frequently listed box used in the food retailing industry flyers, and is usually granted a special
position when displayed in shops. Consequently, Elbe-Obst has created 3 baskets for the key
advertising campaign periods: Freshly Picked, Christmas Apples and Easter Apples.
Freshly Picked applies to apples marketed in autumn whereby the harvest time and ripening
period occur simultaneously. These apples are not kept in cold-storage or in CA/ULO
warehouses. The concept is further underlined by the lettering Freshly Picked, and also by the
autumnal colour scheme and leaves falling on the 3Kg basket.

5.3.1.5 Obst-Land
The Obst-Land logo has been used solely in the food
retailing industry to label grade I and II core fruit since
1995. However, it is of great importance as regards
positioning the Elbe-Obst brand programme. Core fruit grown using conventional fruit
farming methods by Elbe-Obst members as well as suppliers within and outside the Lower
Elbe region may also be marketed by way of this brand.

5.3.1.6 Apple Kids

Market analyses have shown that with regard to apples, children and youngsters do not
consume in full the sizes of fruit offered in the standard programmes of the food retailing
industry. The fruit left-overs end up in the rubbish bin. It makes sense, therefore, to offer
smaller fruit sizes. In 1993 Elbe Obst reacted to this development with the launch of the

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Apple-Kids brand. The name and logo refer without doubt to the target group and size of
fruit. The preferred calibration (diameter in mm) is 65/70. Other selections are also available.
Furthermore, a range of give-aways is offered via the Apple-Kids logo.

Fig.15: Apple kids brand of apple ready for market.

5.3.1.7 Knacky
Since 1997 the Knacky logo has been used for apples for immediate consumption. These are
placed in shops with a high percentage of snacks and convenience products, for example
petrol station shops. The fruit is packed in normed 2-apple trays which either contain 2 green
or 2 red apples. A crate consists of 10 trays. The pricing is carried out on an item basis per
tray using the EAN code. Trays with 4 and 6 apples are also available.

Fig.16: Kancky logo and apple packed for immediate consumption.

5.3.2 Seal of quality

Elbe-Obst uses the territory seal "Fruit
from Altes Land … cultivated using
integrated fruit farming methods subject to
ongoing inspections carried out by the
Hanover and Hamburg Agricultural Chambers" depending on the respective sales
programmes. In addition to the Elbe-Obst logo, advertising vehicles are used which provide a
special reference to the origin and the fruit growing procedure. In this respect the territory

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seal may only be used in the case of fruit grown using integrated farming methods in the
Lower Elbe region.
The producers or producing organisations and fruit wholesale companies are reserved the
right to use this seal. The "Sponsoring Association for Fruit Grown in the Altes Land Region
Using Integrated Farming Methods", of which Elbe-Obst is a member, is responsible for
awarding the seal.

5.3.2.1 CMA quality seal

The quality seal "Brand Quality from German States" developed by the Central Marketing
Company of deutsche Agrarwirtschaft mbH (CMA) is today by far the most widely known
quality seal for food of German origin. For consumers and the food industry it has become an
important guide as regards purchasing foods. The fruit and vegetables labeled with the CMA
quality seal must meet the preconditions of the "Quality and Testing Provisions for Fresh
Fruit and Vegetables Produced Using Integrated Farming Methods".
The regulations include:
-licensing inspections of production facilities
-licensing inspections of products
-regular product tests
-inspections regarding product design
-controls via random samples in the trade
Elbe-Obst is bound by contract to the memorandum and articles of association, and the
conditions of practice, as regards using a quality seal, and in addition uses the CMA Quality
Seal in line with the used brand and packaging. Consequently, inspections are carried out
regularly at all Elbe-Obst production locations without prior notice by neutral testing
institutes commissioned by CMA.

5.4. The Convenience product industry

The convenience market is supplied by way of individual components to produce ready-to-eat
foods. Apples, pears, plums, prunes and strawberries are processed. Customers include
bakeries, industrial bakeries, salad factories, hotel chains as well as the catering industry and
delicatessen shops.

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Fig. 17: Convenience apple produces
The apple products include whole apples, cubes, segments, rings, slices and also strips, diced
apples and pommes. Pre-cut apples are also available. The apples are pealed and the pips,
stem and blossom are removed. Cubes are available in a standard size of 10mm x 10mm x
10mm and are deep-frozen in loose quantities or are packed fresh in individual boxes.
Segments are divided into equal-sized parts.

5.5. The Export market

A co-operation characterized by partnership has been in place between SARA Produce Ltd.
and Elbe-Obst since 1995. On the one hand, this entitles SARA to exclusively represent the
Elbe-Obst brand policy in England, Scotland and Wales. SARA also markets German core
fruit solely from Elbe-Obst. At the start of the co-operation, Elbe-Obst reorganised its
packing station in line with English regulations. SARA subsequently granted Elbe-Obst the
Pack house Certification which is geared toward the British food market.
SARA is one of the key suppliers of fruit and vegetables to the British
food retailing industry. Among others, the following chains are supplied:
Iceland, Safeway, Lidl and Netto. At present SARA utilises the Elbe-
Obst and Apple-Kids brands. An additional proportion of the core fruit is used for SARA’s
Fruitkids products. These are figures in the form of individual fruit and vegetables which are
used for various marketing campaigns, including at the point of sale.
In 2000 the five German fruit producing organizations, or their regional marketing
companies, established Deutsche Obst-Export-Kontor GmbH (DOEK), which has its
registered office in Bonn. The following provide consulting services for DOEK: CMA
Central Marketing Company of deutsche Agrarwirtschaft mbH, Bundesvereinigung der
Erzeugerorganisationen Obst und Gemüse e.V. (BVEO) and the AFC Group. The partners
are:
• Elbe-Obst Vertriebsgesellschaft mbH
• Obst vom Bodensee-Vertriebsgesellschaft mbH

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 • Centralmarkt Rheinland eG
• OGM Obstgroßmarkt Mittelbaden e.G.
• VEOS Vertriebsgesellschaft für Obst mbH
The enterprise is aimed at promoting fruit exports from German production. In this respect it
is envisaged that all synergies resulting from the German fruit growing industry be grouped
together so that these companies can assert themselves in the European market. To this end
one employee for foreign matters has been appointed for Moscow and St. Petersburg.

5.6. Processing industry

Up to 45,000 Mt. are marketed as industrial fruit. This amounts to some 30% of the harvest
yield. The produce is supplied to the Elbe-Obst stations as industrial fruit or is drawn from
the preparation of dessert fruit. The fruit is transported via the company’s own vehicle fleet.

Fig. 18: Transportation means and apple sorting, packaging house.

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6. Internship objectives

According to the compulsory module (A05), I was participated four weeks internship
program in Elbe-Obst Company, Stade Germany. The major learning objectives of “Analysis
of Business and Research Operation by Internship” were as follows:

1. To familiar with Elbe-Obst company, its works flow and management strategies,
2. To learn integration into team work and operated as part of them efficiently,
3. To gather information on technical fruit cultivation practices and marketing value
chain activities,
4. To gather practical experience in the organization, and
5. At last, to learn and exercise for good report writing.

With these general objectives as background, my internship at the Elbe-Obst was specifically
aimed at gathering relevant information pertaining to fruit cultivation and marketing value
chain

Fig. 19: Internee involved in apple sorting, labeling and packing in Elbe-Obst Company.

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Part II: Daily Schedule

Date: 25 February to 21 March 2008.

Place: Elbe-Obst Company, Bassenflether, Stade.
Daily working time: 8 am to 17 pm
Table 4: Calendar of daily activities
Date Activities
2008.02.25 • Reached in Elbe- Obst Company, and introduced with project, and
Monday company staffs.
• Introduction of Elbe-Obst company working division.
• Overall visit and observation of the fruit packing hose division, its work
place and working procedure.
• Working in apple packaging department. Knew about how to packaged
and labeling.
2008.02.26 • Involved in apple packaging, labeling and loading from 8:00 am. to 5:00
Tuesday pm.
2008.02.27 • Involved in apple packaging, labeling and loading from 8:00 am to 5:00
Wednesday pm.
2008.02.28 • Discussion with Mr. Anderson (Marketing Public Relation, EDP)
Thursday regarding value chain and fruit marketing system
• Participating in apple labeling, packaging and loading.
2008.02.29 • Participating apple packing, labeling and loading with packaging team.
Friday • Searching relevant information about Elbe-Obst fruit growing area and
company by internet and discussed with Mr. Anderson.
2008.03.01
2008.03.02 Weekend
2008.03.03 • Worked in apple packaging, labeling and loading division.
Monday • Familiar different varieties of apple that grown in Elbe-Obst area.
2008.03.04 • Worked in apple packaging, labeling and loading division.
Tuesday • Familiar different varieties of apple that grown in Elbe-Obst area.
2008.03.05 • Worked in Apple sorting house and knew about different grade of apple

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Wednesday on the based of color and size.
• Worked in main company office and familiar on value chains and
supermarket chain scheme of different fruits.
2008.03.06 • Worked in Apple sorting house and knew about different grade of apple
Thursday on the based of color and size.
• Worked in main company office and familiar on value chains and
supermarket chain scheme of different fruits.
2008.03.07 • Worked in Apple sorting house and knew about different grade of apple
Friday on the based of color and size.
• Worked in Main company office and familiar on value chains and
supermarket chain scheme of different fruits.
2008.03.08
2008.03.09 Weekend
2008.03.10 • Worked in apple packaging house, knew about apple storage in cooling
Monday environment, most of the apple varieties are stored from 3- 8 months
with controlled atmosphere.
2008.03.11 • Worked in apple packaging house, involving for packaging, labeling and
Tuesday loading of apple in different packed size.
2008.03.12 • Worked in apple packaging house, involving for packaging, labeling and
Wednesday loading of apple in different packed size.
2008.03.13 • Worked in apple packaging house, involving for packaging, labeling and
Thursday loading of apple in different packed size.
2008.03.14 • Worked in apple packaging house, involving for packaging, labeling and
Friday loading of apple in different packed size.
• Discussed with Farmer Mr. Elesh (Farmer) about apple production area,
integrated pest management and different apple varieties. He has 65
hectares apple cultivation area, and He also introduced new varieties of
apple (Red Prince) since 2000 in around 10 hectares of land.
• Discussed with Mr. Anderson about value chain and quality
measurement and control
• Faired well with Mr. Anderson, He would go in new pace with his
family from coming week for celebration of his holidays.

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2008.03.15
2008.03.16 Weekend
2008.03.17 • Worked in apple sorting house, packaging. Labeling and loading on
Monday wooden frame.
2008.03.18 • Worked in apple sorting house.
Tuesday • Visited in apple growing area and familiar on cultivation practiced
especially training, pruning and integrated pest management.
2008.03.19 • Worked in apple sorting and grading.
Wednesday • Visited in Red Prince apple growing garden
• Discussed with farmers about apple production, farmers group(24
farmer groups in Elbe-Obst area) and their integrated pest management
and cultivation practices.
2008.03.20 • Working in apple sorting and grading
Thursday • Discussed with apple producers group and their planning for varieties
selection, quality management and marketing.
2008.03.21 Easter Holiday begins
Friday

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Part III: Key Learning and Recommendations

1. Key Learning
During my internship, I worked in Elbe- Obst fruit packaging house. I learnt more things
about the technique of fruit production and supply on marketing standards, especially in
practical terms, and have gathered enough information and expertise on integrated fruit
production, value chain promotion by sorting, grading, packing with concerning consumer
demand and market outlets. Productive team work was found in different management level
and between co-workers in company. Marketing outlets had been identified and coordinated
between company, farmers, supermarket chains and export traders as well as government
office for sustainable and profitable market. In other hand, labor union was found stronger
and willingness to efficient output. Also division of labor in different units of sorting,
washing, packing and porter loading had been effectively managed in time. Capital intensive
product chains were being applied in both inside and outside of the company.
Major key learning during internship period were:
• Strong coordination and efficiency output product,
• Division of labor in each small unit of sector,
• Impersonality coworkers,
• Rationality and cooperation,
• Diversification strategy in both production and marketing,
• Integrated fruit production, varieties introduction and well orchard management,
• Quality standard of different fruits production and marketing,
• Coordination between producers group and marketing group.

Actually, I learnt about team work, value chain approach by different advertise and customers
attraction scheme on market outlet ready packages concerning quality control in both
cultivation and post-harvest handling period. 24 commercial apple growers are actively
involved in fruit production as well as cool storage and pre- marketing activities like sorting,
grading, labeling and packaging.
I learnt that a mission is carried out by Elbe-Obst. Also, in addition to the above mentioned
formal and official know-how, the internee also got familiar to the informal and friendly part
of the Elbe-Obst and producer group. The trend in the office among staffs to go for lunch all

25
together everyday, and the friendly, helpful & encouraging nature of the colleagues in the
company are something which the internee is greatly pleased about. I have now some
experience in value chains and environment friendly fruit production techniques. Indeed, I
have had a good time, and it was rich experience.
Thus, the work I did at Elbe- Obst was really interesting and relevant to me. I hope the
experiences gained in this time would be a valuable source of knowledge for my future
research.

2. Recommendations
While assigning work, it would be convenient and interesting for the internee if s /he is given
project to accomplish independently beside normal daily schedule with co-workers. It will
help to increase confidence on the part of internee. Also, I would like to suggest that German
language should have been understood when students are having their internship at German
company. This will be of ease to both the parties.

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References Cited

Elbe-Obst, Vertriebsgescellschaft mbH. Since 1994. Company Bulletin.

Elbe-Obst company. Website: www.elbe-obst.de

Red Prince. Knackiger Typ crunchy bubby. Website: www.red-prince.de

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