Braeburn prices are likely to go up this year in Europe and the UK, according to New Zealand’s exporters – with that country’s output of the variety down, volumes similarly low from South Africa and apple supplies uncertain from Chile, traders are hopefully predicting demand will keep prices higher than last year.
As New Zealand’s Braeburn crop advances, harvesting is a little behind last season, but packout levels are reportedly good and volumes are tracking peak body Pipfruit New Zealand’s January forecast.
The country’s Braeburn output is definitely lower than last season, but will be enough to meet market demand, according to Richard Palmer, South Island manager for exporter Freshco.
“I think we’ll have enough volume, we will still be able to supply customers with enough volume to meet their programmes,” he told Fruitnet.com. “Certainly the initial indicators are that pricing is heading up, which is good.”
“South African Braeburn in particular got badly sunburned, which means there’s not a lot from there. So the price has to go up, there’s no doubt, and we’re getting demand from the early European sales that suggests prices are already going up.”
Mr Palmer said two of the major elements affecting the season in Europe are as yet unclear to New Zealand’s pipfruit industry – the state of the Chilean apple offering, and how stock is moving through the European and UK markets.
“Part of the challenge is getting a gauge on what’s happening in Chile, and what it means in the coming month, rather than the previous month,” he explained. “There are varying views around about that. I’m sure that the next couple of weeks will bring a better picture.”
This is a make or break season for New Zealand Braeburn in Europe, according to Mr Palmer, and the increase in prices on the previous year may be what the industry needs to get through the year.
“The industry will look different in 12 months time if people make no money on Braeburn `this season`,” he stated.
“We can’t do much about the exchange rate, so we simply have to push prices up to make some money; not just Braeburn prices, but all the apples. There are a few challenges for retailers there, bit we can guarantee they’ll get good quality apples of the right sizes from New Zealand.”
