This project aims to improve the competitiveness of SMEs within the European Fruit Sector by providing them with a new fruit sorting technology to produce and market high quality “premium grade” product. SME-AGs have identified the “premium” branding approach, as a response to the competitive pressure from producers in developing nations and from large retailers. This goal is aligned with the major objectives of the European Common Agricultural Policy (CAP): to improve European fruit quality, and to promote the consumption of healthy food by European citizens.Via FRUITGRADING, SME-AG associates estimate that the base price at origin can be raised by 10%-30% with respect to standard “extra class” and “first class” fruit, which will deliver an additional turnover of €5.7M/year for the set of associates. From the perspective of the European Fruit Sector, SME-AGs have estimated that the general adoption of the proposed sorting technology could potentially generate up to €3.5 billion in the EU-27. Considering the significant market potential for the proposed system, SME-AG proposers plan to patent and fully exploit the proposed technology.From a technical point of view, FRUITGRADING aims to develop and validate a fruit sorting pilot plant which integrates low cost and contactless inspection technologies for assessing the internal quality of the fruit. Sorting technologies currently available in the market rely on the measurement of external quality criteria, and are unable to quantify internal fruit quality – which is perceived by the customer, however. By combining Magnetic Induction Spectroscopy, and Diffuse Reflectance Spectroscopy, FRUITGRADING will evaluate electric and optical parameters, which are known to be correlated with standard reference analytical methods to determine internal fruit quality (such as Solid Soluble Content, water content, etc).