English apples well-placed in challenging season

Despite worries to the contrary, stored English apples are holding their own against South African stock making its way into the country and look set to give Chilean product a run for its money this year.

High expectations created by the consumer press - in which it was claimed that this season’s apple crop was going to be the best harvest in 70 years - were unfounded and left the industry baffled as to the source of the statement and fearful for its negative effects. Due to surprising climatic conditions with rainfall before June followed by dry weather, there were concerns that the apples wouldn’t grow, potentially leaving sizes below average, affecting skin finish and reducing keeping quality. Add to this the fact that the weather continued to be cold until the third week of May and there were a lot of reasons for the UK apple industry to be cautious.

“Fortunately, product has kept exceptionally well against all odds,” says Adrian Barlow, chief executive of English Apples & Pears. “We have had a few problems in stores and volume has been a little limited, but the crop has been excellent in many cases.”

Again, due to the weather, the English season was two weeks later than the previous year, but the good news is that up to 22 January, supermarket volume sales are already up by 3.5 per cent on the 2010 figures for all English apples, according to English Apples & Pears. “This is an outstanding result,” says Barlow. “And it reflects continuous demand for English product. Consumers are looking for more local food and multiples are aware of that trend. I have had a lot of interest from companies that either have never sold English apples before or that had sold very little, seeking my assistance in English supply.”

At the moment, the UK can produce 37 per cent of the apples that consumers buy during the season, but Barlow believes that this figure could reach 70 per cent. “There will always be demand for other varieties from around the world and it is important that we don’t rely on the British brand to sell the fruit,” he adds. “We must increase production with a focus on quality. It is important that our apples are up to the standard of imports, if not better. We have to concentrate on taste, juice content and flavour. We are vulnerable to competition and the English industry must see the importance of quality in that.”

Elsewhere in the world, the year is boding well for the English season, with the Polish crop down 36 per cent due to hail bringing on a poor fruit set early in the season and the European crop generally being down in volume. As we go into the southern hemisphere harvest, South Africa is set to arrive in the UK in the next four weeks, with Capespan welcoming its first arrivals next week. “Their main competition will be Argentina and Uruguay, closely followed a couple of weeks later by Chilean apples,” says Capespan International’s John Hopkins. “It’s going to be a similar market to last year with a strong Royal Gala. Granny Smith volumes will be moving quickly and good quality will follow a European season. Chile will come on to the market around March/April, but there may be some problems with South African Granny Smith due to sunburn from a heat wave in January, where 10 per cent of key varieties were lost.”

South African Golden Delicious will come into the country from the beginning of May, but Hopkins warns that growers have plenty more options than the UK if the price isn’t right. “Their client base is much wider now and South African apples are going to the Middle East, North Africa and Russia, as those markets accept a full range of sizes. On a plus point, Braeburn is 12 per cent lower in volume this season, which indicates that we won’t see an overhang and is good for the industry.”

Turn and face the change

The last 10 years have seen many changes when it comes to the English apple portfolio, with traditional top dog Cox ruling over less popular varieties such as Royal Gala and Braeburn. But now the market is seeing the latter two varieties, as well as more modern additions Jazz and Rubens, shine as new orchards take over where Cox left off.

“Cox is still the main apple in the UK and has a huge following,” says Barlow, “but new varieties are being trialled all the time; ones that excel in the English climate. It took a while to grow Royal Gala well, as it suffered from greasiness and two years ago good quality Royal Gala before January was unlikely, but now through varietal work and growing techniques they have become outstanding. We can now supply an English Royal Gala from September to early April and so lengthened the season by two months. We have to be careful and slow down the size of the crop though, as we don’t want to overproduce. The crop, although expanded, needs to be in line with customer purchasing.”

English Cox apples still have a point of difference over competition from growers abroad, with other versions such as the New Zealand Cox tasting and appearing like a totally different apple, but demand is reducing.

Another apple that is coming under the spotlight is the Pink Lady brand, where there has been a massive increase in production year on year. South Africa is in the situation where there are no domestic or close markets for the apples, but a heavy investment in SmartFresh technology has upped volumes.

“Last year, there was an oversupply of Pink Lady apples in the market and prices were well below commercial levels,” says Hopkins. “There is a danger that a similar situation will happen this year if there is a lack of control in exported volume and the brand will lose its premium. Only time will tell and although growth of the brand has stood at 10 per cent, it is now at a crossroads and one to watch. Its value could possibly be eroded.”

Money talks

Overall sales of apples in the UK multiples will increase by three per cent this year, predicts English Apples & Pears, with the English crop performing in marked contrast to the European crop, which is down by 15 per cent.

Returns to growers are slightly up on last year, but the industry continues to warn that not enough money is being ploughed into the orchards. “It takes £30,000 a hectare to start an orchard,” points out Barlow. “And that’s putting it in without a return for many years. There needs to be a shared understanding about the levels of returns. We are getting there and [grower] Paul Mansfield has recently invested heavily, and much of the work is assisted by the RDAs. There is further development in the pipeline; there is a willingness to invest, but returns are terribly important and growers cannot afford to invest for love. Retailers need to be aware that reinvestment in the industry is crucial.”

Tesco’s share of the apple market stands at 26.1 per cent and is heading back to where it was three years ago. Sainsbury’s has lost a little share, but still massively overtrades on apples versus its overall grocery market share. Morrisons has 19.4 per cent of the apple market, up one percentage point year on year and also ahead of its grocery share this season.

“Morrisons has mirrored the performance in Europe,” says Barlow, “and really done a tremendous job by working closely with growers. And overall, the performance in retailers has been good, although returns do need to improve.

“Southern hemisphere returns have not matched those for English apples and that shouldn’t be the case. The retail share is moving up and prices fall back; there needs to be a wider recognition that if returns aren’t there, the industry will be in jeopardy.”

BRAMLEY TAKES PRIDE OF PLACE

The British Bramley apple industry is worth £50 million and continues to gain momentum, with 97,000 tonnes of the variety grown last year. As Bramley Apple Week takes hold and sales traditionally hit their peak, Elizabeth O’Keefe looks at what is in store.

The Bramley apple crop is a big deal to the top-fruit industry in the UK, in terms of both domestic consumption and exports. UK consumers bought just under 25,000 tonnes of fresh Bramley last year, produced in the main commercial growing regions of the South East, East Midlands and East Anglia.

And so for Bramley Apple Week - this year from 6-13 February ­- businesses up and down the country get the opportunity to put a national treasure on display, as consumers reach for apple crumbles and pies.

February is actually the month when Bramley apples traditionally do their best due to the cold weather, although British Bramleys are available year round and the new season starts in sync with the rest of the apple crop grown in the UK, at the end of summer and the beginning of autumn.

But of course, it’s not just about dessert fillings and pies. Bramley contributes to a massive juice industry and due to a decrease in production in China and a move away from Bramley apple processing, this year’s price looks set to be high.

“This is good news for the apple industry as it puts a bottom line into the market,” says Adrian Barlow, spokesperson for the Bramley Campaign. “It should be a helpful addition to growers’ returns. If the fresh price remains at a low level, there is a real threat to production and efforts may be redirected to the juicing market.”

Sales of Bramley apples are not quite as good as last year, during the industry’s bicentennial celebrations, but the industry has anticipated this. “We had massive amounts of media coverage and not just in the food arena,” continues Barlow. “Bramley apples were popping up in current affairs programmes, on the news and even religious programmes, due to the Bramley stained glass window. But we have lots of activities going on this year for Bramley Apple Week and we are keeping the good work up.”

As part of that good work, celebrity chef and award-winning restaurateur Mark Hix has developed a series of inspirational recipes to celebrate Bramley Apple Week 2011.

Hix has developed six sweet and savoury recipes to show that a Bramley apple is not just for the sweet tooth. The recipes are quick, easy and include something for different occasions, with the aim of including all consumers no matter how skilled they are in the kitchen.

“Bramley is deservedly called the ‘king of cooking apples’ because they have a superior taste and wonderfully fluffy texture, which means they are perfect in both sweet and savoury dishes,” says Hix, creator of London restaurant Oyster & Chop House. “I adore cooking with Bramley apples and they feature prominently on the menus in my restaurants. One of my particular favourites is Bramley Apple Snow, which I serve with Kingston Black Jelly.”

Hix’s Bramley Apple Week recipes include Bramley apple and cider pudding; Bramley apple crumble ice cream; parsnip and Bramley apple soup; Bramley apple snow - this was an Elizabethan favourite, made with cream and later, in the 17th century, with egg whites added and a sprig of rosemary stuck on top to resemble a snow-covered tree; Bramley apple Somerset Temperley sour; and lamb’s kidney with Bramley apple mash.

BRAMLEY FACTFILE: TOP 10 HIGHLIGHTS

Fourayes, the major English-owned Bramley apple grower and processor, is helping the nation celebrate Bramley Apple Week 2011 with 10 top interesting facts about Bramley. The Kent-based company has been growing Bramley apples in its orchards for more than 50 years, which it then processes in its on-site factory for use in desserts sold by major retailers across the country.

“We are pleased to be supporting this year’s Bramley Apple Week, which is putting emphasis this year on promoting family values and healthy mealtimes,” says managing director Phil Acock.

Here are some of the facts:

• The first Bramley tree grew from pips planted by a young girl, Mary Ann Brailsford, in her garden in Southwell, Nottinghamshire, in 1809.

• The old nickname for Bramley was “the king of Covent Garden” and the name is still used in New Covent Garden Market.

• The original Bramley tree continues to bear fruit to this day.

• The fruit contains a higher acid content and lower sugar levels to produce a stronger, tangier-tasting apple and flavour is retained when cooked.

• Bramley apples are a powerful source of antioxidants, including polyphenols, flavonoids and vitamin C, as well as a good source of fibre and potassium.

STANNARD GETS TO THE CORE OF NEW YORK’S APPLE STRATEGY

Kaari Stannard is president of New York Apple Sales, the state’s largest apple shipper, which has sold Empire apples into the UK market for many years. She is also chairperson of the United States Apple Export Council. FPJ finds out more about her.

How many years have you worked for New York Apple Sales?

I joined the company early in 1997.

How did your career progress to becoming president and ceo of NYAS?

The company was owned by Marty Michaelson and, before him, by his father. Marty met my mother in 1988 and they married a few years later. After graduating high school in 1990, I attended college at the State University of New York, at Buffalo. I majored in accounting and upon graduating I passed the CPA exam and moved to Atlanta. I worked in public accounting for just a few years before moving back to join the business. Marty passed away after a battle with cancer in June of 2000. The year before he passed I bought the company and took over as president.

What does your job involve?

We are a small company so all of us, including myself, wear many hats. My focus is on the sales side in the export markets. My other main duties are financial and strategic planning with my grower partners.

Has that changed in the last few years to reflect domestic and international market dynamics?

The majority of our business is domestic and our exports rely very heavily on yearly crop volumes.

What is NYAS’s position in the New York apple industry?

In the New York apple industry, we represent about four million bushels of fresh apples.

Which markets do you concentrate on around the world?

The UK, Singapore, Thailand, India, Russia and Israel.

How has the production season been for US apples in 2010 and what are your expectations for the season?

We had a challenging growing season and are about 18 per cent down in overall bushels. We also expect to end the season about a month earlier than last year. Eating quality of the fruit has been excellent, though.

Has the apple grower community in the US fared well in the last few years?

I would say that growers who have replanted aggressively, with Honeycrisp, Gala and Fuji, are doing well. Having enough of the right varieties is - more than ever - the key to the bottom line. The biggest focus now will be on managing oversupply by removing older and less desirable varieties in large enough numbers.

As chairperson of the USAEC, how do you feel the association’s members are positioned in international markets and what are the priorities for the medium and long-term future for US apple exports?

I firmly believe that the USAEC has advanced its members’ exposure and representation in countries that only a few years agowould have been unheard of. With this exposure, the member states are now considered a viable source of excellent quality product in far reaching markets. That has always been the council’s main goal and it has certainly been attained.

How do you feel the marketplace and, most importantly, consumers perceive your products?

In years past, growers from New York State dedicated a much larger portion of their product mix to regional varieties and grew apples with a smaller profile. Over the years we have moved our varietal mix towards the newer, more enticing varieties such as Gala, Honeycrisp and Fuji, while increasing size profile and gaining market share in the bulk product market. The quality and taste profile has been accepted very well. Consumers are now also taking quite an interest in local grown or regionally grown. That is very good for us as we sit only a day or two’s drive from our furthest east coast or mid-central destinations in the USA.

What are your hobbies outside work?

Any outdoor activity. Our family has a cabin in the Adirondacks of New York State, where we spend as many weekends as we can each month. In the winter, we snow mobile and downhill ski and in the summer we boat and do a varied list of water activities.

What is your favourite sports team?

New York Yankees (baseball) and Pittsburgh Steelers (American football)

Favourite country to travel to?

Spain or Sweden (my mother is Swedish, I am first generation born in the USA).

What have been the biggest successes of your career to date?

I feel my greatest impact over the last 10 years has been successfully marketing the many varying volumes and varieties of NY state apples to a degree that has allowed my grower partners to make money and re-invest in new variety plantings and packing lines.