International kiwifruit marketer Zespri has revealed it is experiencing tough trading conditions this year in Europe as the global economic downturn places huge pressure on the market for fresh fruit.
According to its latest market report, the recession continues to have a huge impact on industrial output production, unemployment and consumer demand.
'The fresh produce market is not immune to this situation,' said a spokesperson for the company. 'As demand falls, stock volumes build, particularly in the citrus and apple varieties.'
Overall, retailers are reporting decreases in fresh fruit sales of between 8 and 15 per cent, the company revealed. Nevertheless, it said its own sales remained 'in line with expectations' and that sales patterns were following a similar pattern to last year's summer campaign.
'Crop volumes of summer fruits have increased on 2008, with prices for apricots and melons down 40 per cent, peaches and nectarines down 30 per cent and soft fruit fairing better but still down by 10 per cent,' the spokesperson commented.
As of the end of July, Chilean kiwifruit exports were reportedly running at similar levels to 2008 at around 13.7m cartons, with some 5m cartons remaining to be exported – mostly in sizes 30–33, the company said.
However, according to fruit analysis and servicescompany IQonsulting, that figure represents a 60 per cent increase on last year'scorresponding figure, a rise which is being seen mainly as the result of a bigger Italian crop combined with a slower market.
On an international level, meanwhile, strong demand in all of the Zespri's Asian markets has contributed to an overall positive performance for its New Zealand kiwifruit export crop.
As a result, the company revealed, it achieved an increase in overall worldwide sales of over 1m trays as of the end of July compared with the same time last year.
According to the company, it has already sold 43 per cent of its Green crop, compared with 42 per cent last year; 37 per cent of its Green Organic volumes, against 41 per cent last year; and 83 per cent of its Gold crop, up from 73 per cent last year.
'As long as current run rates continue to be achieved, a tidy finish to the selling
season is expected,' said a spokesperson. 'From a pricing perspective it is still anticipated that industry returns will be within the indicative bands published in May.'
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