New Zealand growers believe the UK market could prove their weak spot in the upcoming season, with viable returns for producers hard to come by.
According to Ian Palmer, chair of the New Zealand Pipfruit Growers’ Association, the effects of the Chilean earthquake will present his membership with opportunities, while the exchange rate differential will make the UK market particularly challenging.
He said: “The EU is a major market for Chile and even under the best-case scenario, the volume of Chilean product likely to be destined for the EU has to be reduced. This will assist some of the glut in the market to clear and bodes well for stable pricing throughout our selling window…
"The one significant weakness for us is the important UK market. But this weakness is to do with the exchange rate, not the market, which is one of the more stable trading environments. It is hard to see viable grower returns from here unless UK supermarkets recognise the need to pay a realistic price.”
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