Stonefruit traders are preparing for a bumpy ride over the next few months, as supplies from the southern hemisphere start to come on stream and uncertainties over weather conditions and exchange rates remain.
Most of the category was glad to see the end of European supplies, with some getting out of the season as early as the end of September.
“Generally the quality of the fruit coming out of Europe was good - the sugars were there and colour was decent,” says one importer. “But we struggled a lot with the euro. Last year it was at €1.47-1.50 per £1, now this year that has dropped to around €1.20. However, it was a good season otherwise, although we did finish fairly early.”
Others were equally as keen to round off the European campaign, which was dogged by difficult weather patterns throughout the growing season. “We couldn’t wait to get out of Europe - it was a really difficult season compounded by the poor weather here in the UK. Stonefruit is a very summery product and it is difficult to persuade sales when the sun is not shining here,” says one retailer. “We got through it, but we were hoping for better weather.”
While the vast majority of northern hemisphere supplies came to a halt some time ago, Californian supplies were still available as FPJ went to press.
But the next few months will, as usual, be all about the southern hemisphere, kicking off with the South African campaign. However, that is looking to be something of a mixed bag at the moment.
“We have been in South African peaches and nectarines for three weeks now and so far the quality of the fruit coming out of there has been pretty good,” explains one insider. “The fruit was sharp and tangy at first but now the flavours are really starting to come through.
“But my crystal ball would now indicate it will be hard going forward.”
Supplies are being airfreighted into the UK at the moment and high transport costs are causing headaches for growers.
And a current spell of poor weather, particularly heavy wind and rain, are causing severe difficulties for growers, especially in the Western Cape. This may cause some traders to remain committed to airfreighted crops for a few more weeks yet, as they wait to see how the quality of the seafreight crops pans out. “It is possible we won’t switch from airfreight just yet,” says one insider.
On the apricot front, South African product is looking good, especially on colour. There are reports of some hail damage but growers have done a good job of sending the right fruit to the UK, insist traders.
Plum supplies from the same country are expected to come on stream in around 10 days, and early reports on quality are looking fine. “The early crop was affected by hail and certain areas were very susceptible, but the indications are that the crop is certainly coming along well,” says one specialist.
So far, so good for South America - or so it would seem. Reports coming out of Chile and Argentina are largely positive, due to a decent growing campaign.
“We are gearing up for Chile in the third week of January and early indications are for a relatively good season,” says one trader. “Growers so far have had the right type of weather - heat during the day, with colder evenings.”
However, there are concerns that in the same way the euro exchange rate hampered the European season this summer, the dollar exchange rate could make life difficult for South American growers in the months to come.
“It is hard to predict what will happen,” says an importer. “The Chileans will be looking at bold prices and will have a lot of volume coming through that they will need to shift. But it will be hard to guarantee certain prices and we are not sure how they will play it. At this stage, all we really know is that the quality is looking good. It is really going to be tricky over the next few months.”
So are traders concerned that stonefruit could be one of the first lines to get struck off the weekly shopping list as consumers start watching the pennies and looking to buy food that has been grown closer to home?
There is immense pressure on retailers to match the discounters on price this season. All are gunning for a relatively low cost per punnet, according to insiders.
“I believe that the credit crunch will mean a hit on stonefruit sales,” says one trader. “But I think customers who know us and our premium products will still keep buying. In the winter, unless consumers have actively gone out looking for stonefruit, they won’t tend to buy it anyway. I don’t think we will see growth in the category this winter - but I do think we will hold steady.”
CONRADIE ON THE CAMPAIGN TRAIL
In 2009 we are celebrating a first for the South African stonefruit industry, with the launch of a new campaign to promote plums to UK consumers during the main season from January to March, and to link the produce back to the country as a tourist destination, says Stefan Conradie, product manager for pome and stonefruit at the Deciduous Fruit Producers’ Trust.
Funded on a 50:50 basis by stonefruit growers and the South African government, and carrying the strapline ‘Beautiful Country, Beautiful Fruit’, the South African plum campaign will feature a combination of in-store activity targeting consumers directly at the point of sale, and public relations events to raise awareness of the fruit in the media. All material used in the campaign will carry the ‘South Africa, Alive with Possibility’ logo that was made available by the South African government.
We have developed bespoke plans for Asda, Morrisons, Sainsbury’s and Tesco, in collaboration with the fresh produce teams at each retailer. These include box talkers and tastings in stores, and a recipe and information leaflet that will be included in packs of South African plums. There will also be advertorial features in retailers’ in-house publications and on their websites.
The in-store campaign will be supported by public relations activity that highlights the taste, health benefits and availability of plums from South Africa during the season, which takes place when many British people are booking their holidays.
We have also signed up Jasmine Harman from Channel 4’s A Place in the Sun as the spokesperson for the campaign, in radio interviews during February and at a gala dinner for journalists and representatives of the plum industry at The Dorchester on January 6.
Jasmine will also feature in colourful advertorial articles we are placing in the women’s and food press, including BBC Good Food magazine, Delicious, Food & Travel, Good Housekeeping, Olive, Top Santé and Weight Watchers magazines.
The growers and exporters are fully behind the campaign, while we have also had a great reaction from other stakeholders who will contribute to the success of South African fruit. The support of the Fresh Produce Exporters’ Forum in South Africa has been fundamental in getting South African exporters behind the campaign and also in facilitating our communication with the department of trade and industry. Crucially, we have also had tremendous support from British retailers and importers, who place huge value on promotional activity in the fresh produce category.
We are also launching a promotional campaign for plums in the German market. The formula used will be the same as in the UK market, with in-store activities being supported by public relations initiatives that will secure media coverage through magazines and radio. Retailers that will be involved in the in-store activities include Edeka, Rewe, Kaufland, Metro and Kaizers Tengelman.
Plums were chosen for our first campaign as we see great potential for growth in this category, so the activity here will provide us with a very important test case for the future of South African fresh produce in the British market. It’s a very exciting first step for our stonefruit growers, which could pave the way for initiatives to promote further products in seasons to come.
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