Leaner and meaner

The end of October signals the start of the Canary Islands salad campaign, and changes are underway. Having endured poor returns for a number of seasons, producers have adopted key strategies including reducing the round tomato crop and diversifying into other products, to win over customers.

The Canaries came under the spotlight earlier than usual this season, when forest fires ravaged 35,000 hectares of land in Tenerife and Gran Canaria in late July.

Fears that the fires would have far-reaching consequences have since been played down. “Forest fires in Tenerife and Gran Canaria this summer caused only minimal damage to the islands’ tomato growing infrastructure, as they took place mainly on high ground, away from the low-lying regions where growing is concentrated,” says a Foods from Spain source.

Both the Allfru Group and Fortuna Frutos said the forest fires did not affect their tomato operations, although José Fernandez acknowledges that some of Fortuna Frutos’ plantations were very close to the blaze.

Canary Islands growers anticipate similar yields to 2006-07, with Foods from Spain putting the figure at around 200,000 tonnes.

Growers are continuing their push to keep Canary Islands’ tomatoes competitive. Many have developed more vine, plum, cherry and beef tomato crops - as well as newer varieties such as Santa - to complement traditional round tomatoes.

Allfruit International, of the Allfru Group, is the marketing arm for five co-operatives in Tenerife, and is gearing up for the new season. “We will ship to the UK at the beginning of November, and this is later than last year, but early volumes will be limited,” says Allfruit’s commercial director Bob Curwood. “The season will not really take off until the second week in November.” He adds that fruit will veer towards the larger sizes early in the season.

Curwood anticipates strong salad demand, but with the wide variety of tomatoes that have been introduced in recent years, volumes of conventional round tomatoes have fallen.

“We will be producing around 15-20 per cent fewer round tomatoes than last season,” says Curwood. “The decrease in production and exports to the UK may mean that supplies are on the short side as we enter the winter season, but we believe that reduced production from the Canary Islands has now found an acceptable level to meet the market.”

Fortuna Frutos will also be reducing its round tomato crop this season by approximately 20 per cent, says Fernandez. However, the group will increase its speciality tomato volumes and will have more availability on cherry, on-the-vine, and plum tomatoes.

Spania Fresh Canarias SL is optimistic about the forthcoming season. Although overall volumes out of the Canaries are expected to be lower, Spania Fresh says it will buck the trend.

“As a group, we expect to grow 20 per cent more volumes of tomatoes and cucumbers,” says managing director Morna Blair-Cornwell. The firm began exporting small volumes of Canary Islands tomatoes in mid-October, although Blair-Cornwell acknowledges that generally, there appears to be up to a 10-day delay in plantings compared to last year.

“Prices are high as opposed to last year on all salad lines, so there will be a lot of interest in early Canary tomatoes this year,” predicts Blair-Cornwell. “Furthermore, crops in general have been staggered this year, so unless there is adverse hot weather, we won’t be seeing a glut early on.”

It has been a busy year for Spania Fresh Canarias, which began growing its own tomatoes during the 2006-07 season. In addition to the red fruit, the firm has also been handling its summer crop of cucumbers.

“This was successful in terms of quality, although prices were low and poor weather in July affected demand in general for salads,” says Blair-Cornwell. “However, we are optimistic about the forthcoming winter season.”

Indeed, growers reported ideal weather conditions during August and September. However, Blair-Cornwell says there have been a few rumbles in the area of La Aldea in Gran Canaria, where there have been reports of ‘white fly’, which could affect up to 80 per cent of production in that area.

“The reason for this is due to poor husbandry outside the nurseries during the summer,” she explains. “Although it may be a little early to assume that crops there will be badly affected, this could be potentially disastrous for an area which relies on its tomato production.”

According to Spania Fresh Canarias, there has been a steady decline in tomato production in recent years, from 4,848ha in 1995 to 2,637ha in 2005. The number of hectares devoted to tomatoes will fall once again this season by 250ha between Tenerife and Gran Canaria. However, Spania Fresh says that it has increased its plantings, from 22ha to 80ha.

Marketers are keen to stress that the Canaries hold a number of aces and that growers are responding to the industry’s demands. “People forget that the journey time from the Canaries to the UK is less than that from Italy and Israel,” says Andrew Zerpa of Victoria Trading. “Coupled with the highest light levels in Europe and temperatures that negate the need for heating, the Canaries is actually an ideal location for sustainable, speciality tomato production.”

Victoria Trading represents growers Bonny, Valeron, Lupema and Gran Tarajal. “All have indicated that their areas of production will be similar to that of last season,” says Zerpa. “The plants are looking very healthy and we are expecting a good season, with high-quality production.”

“Our growers’ philosophy is to try to work with nature and not against it; wherever possible we use natural predator organisms instead of pesticides,” he continues.

All of Bonny’s conventional tomato production and 70 per cent of its conventional cucumber production will use integrated pest management (IPM) techniques developed from its 14ha of organic production. According to Zerpa, this extent of natural pest management, particularly for cucumbers, is very unusual and contributes to “making Bonny amongst the largest users of natural predators in world agriculture”.

Victoria Trading is also keen to emphasise that Bonny’s new wind turbines are producing the equivalent of seven million kilowatt hours of renewable electricity per year (enough electricity to power more than 1,700 average British homes).

Zerpa explains: “The photovoltaic (solar) energy production from the roof of Bonny’s La Florida packhouse provides the electricity for the tomato packing lines and feeds electricity back into the grid. These projects already represent considerable investment. However, there is significantly more planned which, if realised, will cover the Bonny group’s total energy usage many times over.

“This is a massive commitment to sustainable production from the Canaries’ largest grower. It also points the way forward to buyers and consumers, that certain regions have the natural resources to achieve real sustainable production.”

Zerpa says investment in high-technology greenhouses by Bonny and Valeron will support the production of vine tomatoes and specialities such as Santa.

Fortunas Frutos grows 70 per cent of its Canary Islands production using integrated crop management (ICM) techniques. “We grow very good varieties and provide good-quality conditions and flavour,” says Fernandez. “We’re achieving high sugar levels with our sweet, round tomatoes that the Canaries used to be well known for. They’re better than the other round tomatoes grown in Europe and elsewhere.”

Meanwhile, organics continue to attract interest as growers diversify and listen to consumer demands. Allfru has increased its production of organic tomatoes via Coop Abona and Coop Guia De Isora.

“The demand for organic has increased and the fruit grown in Tenerife has proved popular with our clients and consumers,” Curwood says. “The good growing conditions and climate in these areas produces fruit of good quality and flavour.”

Supporters say growers should take comfort from the inroads they have made into developing more speciality varieties and adopting more environment-friendly growing techniques. However, even the most optimistic would say the sector still undoubtedly faces a number of challenges.

Consolidation among Canary Islands growers has picked up pace in recent years. According to Fernandez, growers that are staying in the marketplace tend to be those that have joined co-operatives, rather than small family businesses.

“The cost of growing keeps rising,” he says. “Seafreight charges have gone crazy, and it is difficult to pass on the cost to the customer. Retailers are controlling 80 per cent of the business, and though growers are investing in new structures that allow them to grow a higher percentage of Class 1 product, it is difficult. However, we always hope that next season is going to be better than the previous one.”

Sources say some growers are making speculative moves into products such as cucumbers and peppers. Fortuna Frutos is conducting new trials on peppers on 10ha of land using ICM systems. “We are excited about this trial, especially as Spain is growing fewer peppers,” Fernandez tells FPJ. “We will start exporting in week 43-44 until the end of March or beginning of April.”

Spania Fresh Canarias began picking its first peppers in week 41. “Quality and size looks good - ideal for the UK market,” says Blair-Cornwell. “We are very optimistic overall and anticipate a good season ahead in terms of quality and prices.”

While poor returns in recent seasons have affected grower investment, Allfru has replaced some of its older plantations with more modern structures. “Last season we received fruit from them which was of excellent quality and remained consistent throughout the season,” Curwood says.

To increase tomato consumption in the future, Curwood feels that it may help to promote the Canaries to raise awareness of the supply source. “The Canary Islands are well known to UK consumers and we will again be trying to get the message across regarding the natural production areas that we have here,” he tells FPJ.

Spania Fresh Canarias says it is crucial that the Canaries enjoys a good season in order to boost and continue investment. “Hopefully many growers can compensate for a deficit in earlier years,” Blair-Cornwell says, adding that while some producers are shying away from the Canaries, there should be exciting opportunities in the future for good-quality, year-round crops to complement UK production.

FOODS FROM SPAIN KICKS OFF CANARIES CAMPAIGN

Foods from Spain hopes its campaign will have Canary Islands tomatoes flying off the shelves this season. Promotions will include posters and in-store radio boosting awareness of tomatoes during the season and a ‘win a holiday’ advertorial competition in the food press and an on-pack Fitness First promotion. Other initiatives will involve PR activity in regional and national publications.

Although in-store promotional efforts will once again highlight the natural growing advantages enjoyed by the Canary Islands and the flavour of their tomatoes, this season’s campaign will seek to underline the environmental credentials of production.

“That Canary Islands tomatoes are grown without the need for artificial light or heat, use integrated crop management and pest control, and are transported to the UK market directly by ship, as well as growers’ increasing use of alternative energy sources such as wind and solar power, will be some of the key messages,” says a Foods from Spain source.