Brazilian apple downturn

ABPM, the Brazilian apple producers’ association, has calculated that Gala volume from Brazil is some 15 per cent down on last season and, despite quality and fruit pressures being the best in years, sendings to the EU are much lower than last season.

The figures, from the beginning of this month, were calculated based on 95 per cent of the harvest having been gathered.

The association also found that Fuji, the country’s second variety in volume terms, is running two weeks ahead of last year’s production schedule, and volumes are also likely to be below those achieved in 2007.

ABPM general manager Moises Lopes de Albuquerque said: “Regarding quality, the temperature range over the summer in southern Brazil provided excellent colour to the fruit. The pressure of Gala at the end of the harvest was on average about 2lbs above that verified in recent years, which will contribute positively to its storage capacity and shelf life. Moreover, there is a better sugar:acid ratio.”

And last week, the Brazilian trade ministry released the first official figures for Brazilian apple exports in 2008. “Despite the harvest of Gala beginning about three weeks earlier, and yielding the best fruit quality in recent history, fresh apple exports to the end of February were around 15,126 tonnes,” said Lopes de Albuquerque. “This is six per cent lower than the 16,101t recorded in the same period last year.”

However, ABPM confirmed that values are running higher than last season by about 11 per cent.

A more specific analysis of exports indicates that the volume shipped to the EU is about 20 per cent down on 2007. Some of the slack is being taken up by a substantial increase in volumes to the Middle East, eastern Europe - particularly Russia - as well as Asia and Central America.

Meanwhile, the Brazilian government has announced tax breaks for exporters, as it tries to slow the real’s gains against the US dollar by eliminating a 0.38 per cent tax on foreign exchange operations for exports.