European pineapple marketers are facing up to the prospect of yet another challenging year in which margins are likely to come under further pressure from low prices and rising production costs.

With output in Costa Rica – which supplies 80 per cent of Europe’s pineapple volume – expected to remain stable, the focus is now on finding new ways to stimulate demand in what has essentially become a supply-led market.

According to figures from Costa Rica’s pineapple export chamber Canapep, shipments increased by 11 per cent during 2012, and although sales volumes held up well overall in Europe, this was primarily down to price promotions put in place to stimulate demand.

Wolter von der Koij of Fyffes says that in addition to low prices, margins have been eroded by the relative strength of the US dollar and rising production costs. Nevertheless, he says 2013 has got off to a positive start, with prices somewhat higher than last year due to lighter supply.

“Pineapples are a component of many popular diets and this is the time of year that many people turn towards healthy and fresh products following the excesses of the holiday period,” he says. “So we expect to see demand increasing in line with rising volume in the weeks ahead.”

On the production side, the mild winter has led to a lower incidence of natural flowering, and with growers becoming more adept at planning their production schedules, volumes are expected to rise steadily in the run up to spring and summer without any supply peaks.

Year-round availability now means consumption is much less oriented towards festive occasions such as Christmas. “There is an uplift in sales, but it is much less pronounced that it used to be,” says Xavier Roussel of Dole Europe. “We’re working in partnership with our customers on a range of marketing with the aim of encouraging shoppers to discover new consumption occasions.”

He notes that there has been a reduction in purchasing frequency that seems to have affected pineapples more than other products.

Sandra Sitjar of Spanish importer Cultivar says its sales volume rose to around 1.1 million cartons last year.

“This was largely the result of us becoming the Spanish distributor for Del Monte, which has really boosted our pineapple business,” Sitjar explains. However, Juan José Ledesma of Eurobanan says prices on the Spanish market were the lowest since the MD2 variety was introduced – sometimes barely covering the cost of shipping. “Pineapples are highly perishable – they have to be sold within 21 days of harvesting and consumed within 30 days, and this makes it difficult to regulate supplies,” he explains.

Sitjar acknowledges that with the market nearing full maturity, the onus is on finding new formats and market niches to take the category forward.

Von der Koij agrees that the challenge suppliers face is finding new ways to create value while ironing out issues of uneven quality, lack of freshness and poor presentation.

“It’s about securing the best quality and service for our customers, “he says. “We support our partners in the use of correct handling techniques and new presentation ideas.” —