UK apple prices have hit levels not seen for almost two years as southern hemisphere suppliers favour other higher paying markets.
Mintec figures show prices have hit £1,100 a tonne, a figure last seen in September 2008, while on UK wholesale markets Braeburn has been selling for 1600p a carton for product from Chile and South Africa.
Availability from the southern hemisphere is down year on year, but exports to the UK have fallen even further. “South African statistics to the end of May show that sendings are down 15 per cent overall, but the volumes coming to the UK are down even more - by 40 per cent year on year across all varieties,” said Ronan Lennon, md of Capespan UK.
Uptake of South African apples in continental Europe is also below last year, and the weakness of sterling and the euro against global currencies is a major factor. “The local South African market, the African continent and the Far East are all strong markets so the UK is having to pay more,” Lennon added. “Price will always be the regulator. I think the situation will be like this for the rest of the southern hemisphere season.”
The Brazilian apple crop is larger than last year, but its currency has increased in value against sterling and the euro by about 30-40 per cent year on year.
“People expected that because of our larger crop, prices would go down, but this is not the case,” said Pierre Peres of apple association ABPM. “We are sending less to France and other parts of Europe, for example, but sendings to the Middle East are up and Bangladesh has climbed to third place behind the Netherlands and the UK.”
In Chile, the Royal Gala crop is also suffering the after effects of February’s earthquake.
Another observer believes UK buyers are now paying the price for their stringent demands. “Because the UK retailers are so demanding in terms of food safety, quality and all the accreditations they require and the risk of senders having consignments rejected is so high, exporters are just saying ‘we’ll send it to Russia where buyers aren’t as fussy and we can get the same money’.”