The exotics category is in a positive mood, with strong prices and sales giving the industry some hope that the recession may not bite as hard into business as had been feared. Despite the squabble for space in the luxury fruit sector that sees soft fruit, staple lines and prepared fruit vying for position on the produce shelves, some exotics are faring well.
The sector experienced a difficult start to 2009, with demand slow throughout the winter months, then picking up over Easter before poor weather in Africa, South America and the Caribbean impacted on production.
In the kiwifruit market, supplies have been steady, with the southern hemisphere season offering quality product. Having harvested fruit in March and April, Chilean producers are using a range of atmospheric storage controls to extend the export season for several months and allow sugar levels to develop and increase.
New Zealand kiwifruit exporter Zespri suffered some NZ$50 million (£19.5m) in losses linked to currency fluctuations. In its annual report, the company reported it had suffered losses in derivative contracts designed to protect itself against currency fluctuations. It has factored in an even higher loss of NZ$82.6m this year, but the company has recouped NZ$44.3m of the NZ$50.4m sum with agreements and NZ$5.9m from other financial liabilities.
Israeli exporter Agrexco exported its “giant” Barhee dates to the UK this month. The mammoth 32mm dates are amber in colour. The product’s export season runs from July and will continue until the beginning of October.
The company also introduced its mangoes to the market, with volumes set to increase by as much as 20 per cent this season, at around 6,000 tonnes. Exporting under its Carmel brand, Agrexco is offering up a range of mangoes including the Tommy Atkins, Shelly, Kent, Lily, Keitt and Maya varieties, as well as its naturally ripened, ready-to-eat offer. Main-season Israeli mango product will come on stream in early August, with some Tommy Atkins preceding it.
Univeg’s John Anderson says that while Israel is an excellent supplier to the UK due to its numerous varieties and relative logistical ease, the Israelis may look less favourably on the UK this year. “Last year’s price levels from Israel were very strong, especially at the end of the season, as mainland Europe was paying more than the UK,” he says. “Traditionally, they have favoured the UK but, with the problems with the exchange rate, as well as the high quality expectations and strict diligence requirements from the UK supermarkets, they could possibly be deterred from the UK.
“At Univeg, we have aligned ourselves with key sources crossing over our portfolio of products, meaning we have built strong, long-term relationships with producers in various countries over a number of seasons and years.”
One challenge suppliers face at this time of year is catering for the requirements of UK supermarkets in terms of fruit size. “Keitt is the more available variety from countries such as Puerto Rico, as well as the Dominican Republic,” says Anderson. “However, Keitt tends to be larger, [in counts] 5s, 6s, 7s, and 8s, which is a problem as a lot of UK supermarkets are looking to retail below £1 - a price point more achievable utilising smaller counts such as 10s, 12s and 14s. It is a genuinely challenging issue, but the last thing we want to do is source fruit from countries which at this time of year have unfavourable weather conditions, which could potentially have a detrimental affect on fruit quality, thus resulting in poor quality on the supermarket shelves.”
One wholesaler says: “Brazilian mangoes are not coming in ready to eat. There has been a lot of rain over there so we are selling good-quality Indian and Pakistani fruit at 500-550p for a 3.5kg box and 200-250p for a 15kg box.”
Of the smaller lines, Thai products including pink pomelos are proving popular, while starfruit and dragon fruit are losing out in the battle for sales. Watermelons are faring well, with 15-18kg boxes of 3s and 4s going for £7.50, while some rainfall in India has prevented the oversupply of products in several exotic lines.
Anderson says: “There is a tremendously large amount of exotic fruit available - unfortunately, the current market conditions don’t really allow us to bring in new products, so we have to focus on bringing in better versions and varieties of staple exotic lines.
“The one product that is on the rise is figs. The forthcoming Turkish Bursa fig has everything - great taste, long shelf life, a short journey compared to, say, Peru, and a great price point for the consumer.”
Supplies are plentiful in the pineapple market at the moment, with Costa Rica experiencing its natural flowering period, leaving prices at
€3-4 (£2.50-3.40) a box, lower than the €7 mark they usually garner. But supplies are set to be tighter in the coming months with growers in Ghana, in particular, factoring in the European summer lull in demand for the product into their 14-month growing cycles and maintaining prices through short supply, which could last until October.
Anderson concludes: “The supermarkets would love to offer the consumer the choice of more exotic lines. However, due to current economic constraints and perhaps lack of education as to what to do with the fruits, the consumer tends to purchase more familiar products such as stonefruit, which at this time of year is very affordable.”
FRESH FROM HARVEST FOR BLUE SKIES
Blue Skies is a fresh-cut fruit supplier with factories in Ghana, Egypt, South Africa and Brazil, says company founder Anthony Pile. Our key exotic exports to the UK include pineapple, mango, papaya and coconut, which we supply in fresh-cut format to the major retailers.
Central to the Blue Skies philosophy is providing fruits that are “fresh from harvest” - therefore, many of the exotic fruits supplied by Blue Skies are harvested when ripe, cut when fresh and then delivered to supermarkets, often within 48 hours. This approach not only produces a better quality, fresher product, but also allows the company to add value to raw materials in the country where the fruit originates, thereby providing significant social and economic benefits to help alleviate poverty.
Our focus is on working with Africa and South America to create serious commercial opportunities to bring about genuine sustainable development. We are not philanthropists, but we do believe in responsible business that brings about maximum benefit to areas where it is needed most.
Blue Skies has been operating for 10 years now and has grown from employing just 35 people in Ghana in 1998 to more than 2,000 people in four countries in 2009.
From the beginning, Blue Skies has airfreighted its products to market and while some would argue that this practice is unsustainable, it is crucial to the company’s success. We would not be able to get our highly perishable fresh-cut fruit to market without airfreight. It has opened up tremendous opportunities for commercial growth in countries such as Ghana, where we are now responsible for one per cent of total exports, 30 per cent of pineapple exports and more than 70 per cent of mango exports - and we are still only a relatively small company.
Despite our support of airfreight, we are also aware of its downsides. We are aware of the concerns surrounding emissions and fuel price, which is why we are investing in new technologies to reduce our reliance on airfreight. We are also encouraging the airline industry to invest more in alternative fuels through our membership of the sustainable aviation lobby FlyingMatters.
The economic downturn has naturally created new challenges for businesses, and Blue Skies is no exception. The collapse of the sterling against the dollar earlier in the year resulted in a significant loss in sales value for the company and while shoppers are looking for a bargain, the company is under increased pressure to reduce its prices more than ever before. But while trading conditions are tough, we are optimistic about the future. There is still huge potential out there. We are looking to expand into new markets, diversify our product range, invest in new innovations and continue to grow our core business in fresh-cut fruit.
Blue Skies prides itself on being a role model for businesses in the developing world and in 2008 the company won recognition for its contribution to sustainable development by receiving a Queens Award for enterprise. UK international development minister Gareth Thomas said: “This award is proof that developing countries can export a product and take care of the environment at the same time. The UK imports more than 2,000 tonnes of prepared pineapple from Ghana every year, contributing
£2.6 million to the local economy through wages alone. This helps farmers and their families live a better life.”
Blue Skies has also recently published its first sustainability report, which is available online.
No comments yet