English apple sector leaders warn that supermarket price cuts are going too deep for too long and risk the future of the industry as sales volumes continue to run well ahead of last year.
Adrian Barlow, CEO of English Apples & Pears has been pleased with supermarket activity on topfruit in general, but has also issued a stark warning.
“We have had a lot of support from the multiples,” he said. “Sainsbury’s performance is astonishing, Asda has increased its position, Morrison’s has maintained its position and Tesco is starting to motor…but they have to be careful regarding returns to growers. There has been a lot of promotional activity, which I am absolutely in favour of as long as it is not too deep for too long. This year we have seen more promotions for longer than I would have liked…We have got to see an improvement with promotion across slightly higher prices right across the board.”
Barlow pointed to strong sales figures this season and highlighted that these are not just a result of an early start to the campaign. “This is the earliest season on record but there are also some very large increases in new production coming into crop,” he said. “Gala is up 20 per cent and the very new varieties are up by 25 per cent. Braeburn is up 40 per cent. It is all about continued growth and the renaissance of the English apple industry.”
Overall English apple sales are some 17 per cent ahead of last year across all varieties, an increase not entirely accounted for by the early start.
“We have seen further evidence this year of the need for new cold stores and growers need good returns for that…the renaissance of the industry will only continue if there is further investment,” concluded Barlow.
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