Despite the well-documented poor weather damaging the production of many apples and pears, the top-fruit category has performed resiliently with £31 million added to overall value, a 3.2 per cent year-on-year increase.

However, that is largely down to price rises and overall volume has fallen by 2.5 per cent.

While Adrian Barlow, CEO of English Apples & Pears, acknowledges that UK shoppers buying less has contributed to lower volume than expected, he also believes top-fruit growers are starting to struggle with spiralling production costs that have pushed up pricing. “In 2011 the overall cost of production rose seven per cent on the previous year and I anticipate it will be even higher this year,” he explains. “Red diesel is now costing farmers up to £1 a litre and this affects every aspect of pricing.”

That view is echoed by supermarket buying teams. A spokesman for Morrisons says: “We are seeing a worldwide increase in the cost for both apples and pears, which is down to the cost of labour and transportation, as well as overall management costs for sprays, trees etc. That, combined with a domestic and global demand for all fresh products, is where additional prices are to be seen.”

The product mix is also having an impact on buying habits, according to the supermarket. “We are seeing an overall decline in the consumer’s purchase of apples and pears. We believe that the factors contributing towards this are the overall choice and mix of promotions over range (examples being our summer offers on soft- and stonefruit/grapes) as well as a move towards premium selling varieties such as Pink Lady.”

Tesco continues to lead the topfruit market, outperforming its 27.2 per cent grocery share by over one percentage point, and James Simpson, MD of Adrian Scripps, one of its key UK-based apple suppliers, isn’t worried by the category’s dip in volume. “UK market volume decline is not new; at best the top-fruit market volume is static, at worst there is a slight trend towards a decline.”

Although Simpson admits that Europe has become a less desirable place for some top-fruit exporters, he maintains quality still counts. “Good growers, regardless of scale and size, will continue to receive demand for their fruit; poor growers will continue to struggle to be profitable.”

Despite the discounters now controlling seven per cent of the topfruit market as shoppers look around for bargains, upmarket supermarket chain Waitrose is also positively outperforming its total grocery share by some 1.3 per centage points.

Waitrose topfruit buyer Greg Sehringer believes the supermarket’s mixture of quality fresh produce and consistent support for growers is paying dividends. “To support our farmers, topfruit that is of excellent quality but cosmetically imperfect, such as hail-damaged apples last year, is still sold in Waitrose shops alongside produce in perfect conditions,” explains Sehringer.

With the over-45s now accounting for 59 per cent of overall pear consumption, the topfruit industry faces a challenge to expand the customer base of pears. But Sehringer believes Waitrose is on the right track.

“Our Perfectly Ripe range takes away the guesswork for shoppers as it means they can buy pears with the confidence that they can use the product that same day; we are working very hard to bring seasonal varieties to the market which recently have been forgotten about.”

Mark Culley, MD of OrchardWorld, one of Sainsbury’s main topfruit suppliers, believes pear sales have room for improvement. “Pear varieties such as Conference sell well because they’re not season-dependent and can be eaten hard or soft; customers need to be made more aware of what makes each variety unique.”

It all comes back to weather and Barlow admits sales have been hit by this year’s unpredictability, as well as a trend for people growing their own apples. “I don’t think it will be as bad next year. I really do expect a record year for Gala and Braeburn.” -

HAIL HAMPERS US APPLES

It’s not just in Europe where the weather is causing havoc to the top-fruit crop. Jeff Long reports on problems hitting the US

Washington state has revised its 2012-13 apple crop downwards to just under 109 million cartons after a series of mid-summer hailstorms.

Although well below the initial 130m cartons initially predicted, this volume is still close to the industry record set two seasons ago.

With national, and indeed global, apple supply likely to be short for the next six months or more, the Washington industry is optimistic about the coming season.

“With all the damage to the US Eastern and Midwest apple crops, we’re anticipating very strong FOB prices from the outset of the new season,” said Rebecca Baerveldt of the Washington Apple Commission.

The prospect of significantly elevated prices this season may negatively impact demand in Asia, however, and even do long-term damage to markets that the Washington industry has taken years to cultivate.

But the fact that a higher-than-normal percentage of the new apple crop has been affected by hail could allow Washington exporters to offer Asian markets more palatable price levels.

“Strong prices are all but guaranteed this season. However, the industry does have a significant crop on its hands, characterised by large sizes and excellent shape,” said Dave Martin of Stemilt Growers. “Because of the hail, there will also be a higher percentage of second- and third-grade fruit than normal this year. Markets are going to have to accept apples with some blemishes, therefore.”

Red Delicious is again expected to lead all other varieties for packed volume for the new season at 31.4m cartons, a 5.4 per cent drop from the previous season of 33.2m cartons. Gala is forecast to be second highest in shipments at 22.3m cartons, with Fujis up significantly to 15.6m cartons. -

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