It will be a make or break season for French apple growers and exporters this year, as they get ready to reverse the results of the last two years against the background of a better exchange rate and little overhanging fruit on the market.
However, French production of apples and pears is set to decline this season and the sector will have to clear a number of high hurdles to make the most of the opportunity.
At the annual Prognosfruit conference in Ukraine earlier this month, the French apple and pear association (ANPP) forecast a decline in apple and pear production of 4.3 per cent and 13.9 per cent respectively for 2010. Apple supplies are anticipated to fall from 1.65 million tonnes last year to 1.58mt this year, although this last figure is still up on the 1.53mt achieved in 2008.
The main French apple varieties are all expected to lose ground, with Golden Delicious, Royal Gala, Granny Smith and Braeburn forecast to fall by 4.1 per cent, five per cent, 5.4 per cent and 20.3 per cent respectively. Niche apple varieties, on the other hand, are anticipated to prosper, with Pink Lady, Ariane and Jazz expected to rise by 7.2 per cent, 5.5 per cent and 7.7 per cent respectively.
The overall fall is in line with European production, which is expected to drop by 11 per cent this year and which will be, with the exception of 2007, the lowest harvest in more than 10 years.
But with not much left over from the southern hemisphere season, French growers and exporters should be in a good position from which they can play out the season. The French season kicks off with Royal Gala, which has only just come on stream around two weeks later than usual and which will be followed by a number of traditional and speciality varieties.
Bobby Barton, export sales manager for the UK at ValdiLoire, which will start trading in September following the merger of Valdipom and Loire Export, is expecting a “clean” start to the season, but he admits that growers and exporters will need to “change strategy to differentiate themselves” in an increasingly competitive market.
“French apple growers need real concrete signs of recovery,” he says. “Consecutive poor seasons with mediocre returns have taken away a lot of optimism and created a general sense of weariness in the sector. Apple export groups owe it to their growers to do their utmost to deal with the economic challenges and find markets that give results.
“This year, France as a whole is 10-12 days later than last year because of the very dry and unusually cold winter,” he explains. “The main harvest of Royal Gala, the earliest variety, only really got underway at the beginning of last week in the Cavaillon area and end of last week in the Languedoc region in volume, with the first sendings in volume for the end of the week.
“The south-west areas of Montauban and Moissac normally start to harvest Royal Gala around 23 August, while the Loire Valley will start the first picking around the beginning of September. We expect all varieties on board in the Loire Valley at the beginning of October, when the season will be in full swing.
There are a number of positive signs that suggest a better forthcoming season, given the backdrop of a tough previous year that saw low grower returns, Barton believes. “Generally, we are expecting a better season - but we can’t afford just to expect. The hunt for cheap, value lines has generated low returns and against the backdrop of increased UK apple production, has made the UK a less attractive market in money terms. These uncertain factors generate less confidence and can spoil the market for us. This season in France is more or less make or break time for a lot of growers.
“There is an enormous weight of responsibility on all growing and export groups to hold the prices and give decent grower returns. The number of grower groups in difficulty is rising and France as a whole has lost a lot of potential over the years, with volumes this year a far cry from the 2.2 million tonnes reached in 1999.”
In fact, the majority of French growers and exporters have high hopes for this season as their one way back from the challenges of the last two seasons.
However, with returns failing to match expectations for a few years in a row, it has not been easy to find the resources to invest in the future of the category. If this continues, insiders claim it may change the shape of the French apple offer in the long term.
Daniel Corbel, president of Pomanjou Group subsidiary Cardell Group, blames the “catastrophe” of last season for the fall in volumes this time around, with growers reluctant or, in many cases, unable to invest in expansion.
“Challenges are everywhere,” he says. “France is known to be a country where the cost of growingis more expensive than elsewhere mostly due to the social system, which is a heavy burden to companies - we are like others caught in the present financial crisis and competition from other countries as well as English production makes a daily challenge to remain in the picture. Indeed, the exchange rate between sterling and the euro has only aggravated the situation.”
Marc Peyres, export manager at Blue Whale, agrees that “everyone needs to recover” this year. He insists that returns need to be 20-30 cents higher per kilo than they were last year. “For the last two years, the UK market has been very disappointing and returns have not been good enough, in terms of the quality they ask for,” says Peyres. “However, it is still an important market for French apples but we must resolve the price levels in the UK, because there is too much focus on price. But we should be able to return to a better share of the market and increase the consumption of French apples.”
Across the sector, French growers and exporters are holding onto their reputation for high quality fruit to secure the long-term prosperity of the sector. There are signs of a recovery in the shape of better exchange rates all round compared with the same time last year.
Paul Wise, sales manager at wholesaler Gilgrove Ltd, received the first arrivals at the beginning of this week and claims that other apples “don’t compare” to the French offer, in terms of quality and consistency. He is expecting prices to remain at around 1200-1400p for 13kg.
“No one does apples quite like the French,” says Wise. “I would choose French over British, but you have to take it as it comes and take the opportunities as they come along.”
And back in France, the sector is always on the lookout for what could work on the future, with the run of tough seasons failing to deter the most forward-thinking companies from investing in the business.
“Opportunities remain in novelties and the English market is open to segmentation,” says Corbel. “Consumers want to have a wide choice to determine their purchase. We have seen the decline of Golden Delicious and improvement in club varieties, for which consumers do not systematically look for the cheapest price.
“We are constantly looking for new varieties to satisfy consumers but it takes quite a long time. We have to ensure a reasonable yield per hectare then make trials at a small level to judge acceptance by consumers, especially for taste, before deciding if we should plant on a commercial scale.
“For instance, we started to envisage planting Honey Crunch in 1996 and after the numerous steps, we have now reached a production of 10,000t, for the Pomanjou Group as a whole.”
But in the meantime, all eyes are on returns this season as French growers and exporters gear up for the season. However, it remains to be seen if this will be the year that the French will prosper.
“The euro is holding up better against sterling and this 15 per cent could prove important to boost returns as sales values in sterling have stagnated and fallen over the past five years,” says Barton. “The problem is quite simple - if France continues to retail Golden Delicious, for instance, at around £9 per tray pack for two or three seasons on the trot, it’s hard to come in one year and ask for a hike in price to £11. Prices need to fluctuate but both ways - on the up too, not just downwards all the time.”
