If recent apple market conditions and trends in Europe prevail, New Zealand growers will be forced to focus on alternative markets. Peter Beaven, ceo of growers’ organisation Pipfruit NZ issued the warning in what is proving a very low uptake year for NZ fruit in Europe.
The New Zealanders also point to an overhang in the European Elstar and Jonagold crops which although usually clear by early June, this season are expected to remain in the system until the middle of August.
“If we are looking at a permanent condition in Europe we will see switches and very serious searches for alternative markets,” said Beaven. The EU takes 50 per cent of all New Zealand apples and a large volume will always go to the EU, but growers have to be realistic and take a long-term view on this. The statistics of what is coming into Europe from the southern hemisphere this season have surprised everyone - Royal Gala imports into the EU are 16 per cent down year on year and Braeburn is 27 per cent down. You can’t say the southern hemisphere is not doing its share to make sure European markets stay stable.”
Prices for NZ Gala and Braeburn in the UK are strong as a result, and Beaven reports that the UK appears to be a more stable market than continental Europe as the euro weakens, but also because of the UK supply structure.
And the Kiwis already have an eye on season’s send and the handover to European supplies. “We are fortunate the whole southern hemisphere has had less fruit this season and we have all read the signals and moved fruit to, Asia for example,” said Beaven. “We are told the European apple harvest is likely to be seven to 10 days late. This takes the pressure off a little, but it just goes to show: even though our volumes our such a high percentage down, we are still going to need that extra time.”
