The French apple sector is on its knees and insiders believe that only a combination of a good season in 2006-07 and strategically sound orchard renewal can save it.
“The French apple sector is in crisis,” said Alain Vialaret of Blue Whale. “It is linked to the opening up of Europe to supplies from around the world and as a result we have been inundated with product. The only solution is orchard renewal to supply top-of-the range, high quality fruit.”
Some growers, particularly in the south-western and Loire Valley growing areas, are experiencing grave financial difficulties. Previously helpful banks have become cautious of lending due to the perceived poor outlook for future apple production in the country. The result is growers leaving the sector in greater numbers.
“Producers are suffering and they are grubbing up,” said Roland Charrade of Cardell. “Production overall in France will decrease as a result. We must have a good season next year in order to save the sector. We cannot control the climatic factors, but we can control market factors and we must avoid at all costs what happened at the start of this season with the southern hemisphere overhang.”
At Blue Whale, financial reserves and a commitment to orchard renewal are ensuring the exporter and its growers can ride out the storm. “We have had this financial strategy of our own funding for the past 15 years,” said Vialaret. “For the past five years, eight per cent of our orchards have been given over to new varieties and this will rise to 15 per cent this year and next year. We are helping our growers get into production of the best, high-quality, highly coloured clones of Royal Gala and Braeburn more quickly.”
While UK importers complain of poor prices on Braeburn, Charrade sums up the difficulties the French have been facing on markets generally. “Prices have been poor across the board for all varieties in all markets this season,” he said. “Fortunately we have had the UK market, which has certainly not been any worse than other markets this year.”
But complaints of poor pressures in fruit coming out of store by UK importers can be traced right back to the start of the season and the problems caused by the southern hemisphere overhang.
“At September 1, 2005, there was still another month of fruit left in Europe to be consumed,” said Vialaret. “That disrupted the fruit going into store. There were problems with Royal Gala, Braeburn and Golden Delicious. This was not because of French fruit quality, but because of a heavy market which effectively penalised French stocks.”
Although the situation has improved since January - Blue Whale expects only three more weeks supply of Braeburn and Granny Smith - quality was affected, which negatively impacted price.
One importer told FPJ that the prices being achieved in the UK accurately reflect the quality of the fruit being sent to market by French exporters generally. Quality is not expected to improve, he said.
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