With Europe’s apple supply at its lowest point in a decade, what impact do you think this will have on your business and the wider apple trade?
Tom Lowes: The industry finds a way of dealing with whatever comes from season to season. A shortage in supply will always have an impact on price, and this will have an impact on who continues working in apples and pears. Many wholesalers may choose to drop some varieties in favour of another product they deem profitable and saleable at the time.
Are you confident that the 21 per cent drop in European apple supply forecast at Prognosfruit will see prices bounce back?
TL: Such a drop in volume will have some impact on price but, as mentioned previously, if a buyer doesn’t feel it is the right price for them with a repeat sale in mind, and ultimately a price where the end consumer picks it up, then they won’t buythe product. At the end of the day, the consumer is the one who decides what level of spend they are comfortable with. The market will find this level fairly swiftly.
How did the spring frost losses in Europe affect your business?
TL: Of course frosts affected some countries and regions more than others. A key supply line in Austria was impacted heavily by late frosts, but the shortfall was made up in other areas, particularly the UK, Germany and Hungary, which grow some magnificent Royal Gala with growers keen to invest year on year.
My biggest loss last season was in Austria where my producers lost over 60 per cent of their varietal crop in spring due to late frosts. The same producers have been impacted again this year with volumes down as much as 40 per cent, but as last year,Iam confident we will maintain a constant supply of the major topfruit varieties through to the start of the Southern Hemisphere season in 2018.
What trends are you seeing in the wholesale market for apples and pears?
TL: While the number ofindependent retailers is dwindling in the UK, public demand for top end fruiterers is still strong,Ifeel. The good operators are getting bigger as people value the buying experience of some of these fantastically run outlets.
The larger-scale more industrial market vendors have a different demographic ofcustomer and therefore price is a key driver. This is the fruit that isbecoming harder to guarantee a supply of, but there isalways a dealjust around the corner of some sort.
The other key market for wholesalers is catering, which is seen as increasinglyimportant. Ensuringconsistency in quality and, where possible, pricing, as well as keeping an eye on provenance, is very important.
How is Brexit affecting your business and what impact do you see it having going forward?
TL: The devaluation of the pound is the biggest short-term issue, however the wholesale market is perfectly set up to meet price fluctuations, and many of my growers understand that to serve this market the level has to be right, so the exchange rate fluctuations are absorbed.
On a consumer level,Ifirmly believe that negativity and uncertainty in the mainstream media affects the average household spend, butfreshproduceshould fare better than some sectors as eating a balanced diet is increasingly seen as important by swathes of the population.
How are you looking to evolve your business?
TL: Fruit vision is constantly evolving we are on the lookout for newbusiness, with an eye onutilising my supply contacts for more programmed orders.
I am always looking for young, fresh talent with a proven track record, or for someone from outside the fresh produce world with a keen desire to learn, who sees the FMCG market as a career, not a job.
