Italy has long been one of Europe’s largest apple producers, but consumers in the UK could be forgiven for not realising it as most fruit stays on the domestic market. Germany is the largest export market, but long-standing importers such as Hart Worldwide (HWW) and Empire World Trade (EWT) have set about increasing volume to the UK.
“Harts has been importing apples from Italy since the 1940s when most imports arrived in rail wagons,” says HWW’s Greg Hart. The company sources from the country’s largest apple production area the South Tyrol in Alto Adige. “The high altitude produces a denser, crisper apple with good coloration, an excellent source of both Gala and Braeburn,” says Hart. “In general there has been a reduction in Golden Delicious production in favour of both Gala and Fuji.”
Production conditions this year have been favourable across the variety range. “There are forecast increases from our growers of five to 12 per cent on last year’s production and in general the crop looks good in terms of size and quality,” adds Hart.
Italy produces just over two million tonnes of apples a year on average and the South Tyrol area accounts for almost half of that. “South Tyrol has lots of sunshine, cold nights and high soil-mineral content making it ideal,” says Patrick Broadhurst, senior trading manager at EWT, which has been importing from Italy for 15 years. “Forecast production volumes are similar to last year, but we are expecting a much better quality crop with good storage potential, compared to last season.”
As well as orchard renewal in favour of Gala and Fuji, Braeburn and Pink Lady plantings are increasing significantly. And there is a move by many growers to renew their high-altitude Golden Delicious orchards but replace their low-altitude ones with bi-coloured plantings better suited to the warmer climes closer to sea-level. Broadhurst confirms that EWT’s growers have made “considerable investment over the last five years” planting these newer bi-coloureds.
He also concurs with Hart on crop quality in 2004. “The harvest is expected to be a week later than last year, but no spring frosts and plenty of rainfall gives way to promising fruit quality,” says Broadhurst.
Although HWW and EWT work tirelessly to increase the presence of Italian apples on UK retail shelves, competition with other sources and destinations muddies the waters. “The transport rates form Italy are higher than from France which makes it harder for the Italians to compete,” says Hart. “But the UK has proven to be a good market on smaller sizes for Italian growers.”
However, as usual, price is the overriding factor. “The biggest issues are the Italian domestic market and Germany,” explains Broadhurst, “both of which have lower quality and higher price expectations than the UK.”
In the longer term Hart forecasts that fruit arriving from eastern Europe will make life harder for the Italians. “It will undoubtedly have an impact on what is an already oversupplied market,” says Hart. This is only likely if newly acceded growers adapt their variety offer. “The orchards tend to be full of older varieties which the UK consumer has moved on from,” points out Broadhurst.
Other issues the Italians have to face up to involve certification and a shrinking marketing window. “Co-ops have many growers and therefore the biggest challenge is to get them all certified by Eurep GAP,” says Broadhurst.
Storage technology is also likely to make its presence felt. “The advent of SmartFresh has and will continue to reshape the apple industry,” says Hart. “Southern hemisphere fruit now has the potential to supply later into the year, reducing the need for early Italian fruit. And increased volumes of apples coming to the market from new sources such as China is also an issue.”
But the Italian sector has realised the best way to face the challenge is to rationalise and the industry is continuing to witness the merger of co-operatives to form more significant grower groups. These are therefore better placed to make the necessary investment in modern packhouses and machinery which are characteristic of the Italian production and marketing scene in 2004.
INTERPOMA INVITATION
The annual focal point for the Italian apple sector is Interpoma. This year’s international tradeshow takes place in Bolzano on November 10-12. It covers the entire chain: production, storage, grading and packing and more than 150 companies will be exhibiting.
But one of the key attractions will be the new varieties and clones available through Italian and overseas nurseries. The Consortium of South Tyrolean Nurseries will be present with new varieties Flamboyante Mairac and the Braeburn clone Helena. The FENO group is also taking a stand to exhibit the clones it manages: Rubinfuji, Redkan, Gold Rosio and the new Pinova mutant Roho 3615.
The Italian Nursery Consortium is showing its new variety Civni-Rubens. Plant material supplier Zanzi has a host of new offerings: Gold Pink-Gold Chief, two new Gala clones called Annaglo and Ruby Gala; a dark-red Early Red One and Aztec-Fuji Zehn. French, German and Belgian nurseries are also exhibiting new Gala clones and Valois Pepinières will have Cameo on its stand.
JAPANESE KIKU FINDS SUCCESS IN ITALY
One company benefiting from the rise and rise of Fuji plantings in Italy is Kiku which has a market share of 80 per cent of all new plantings in Europe for its Japenese Fuji clone Kiku.
“We try to find good areas with the right climatic conditions for production of Fuji Kiku trees,” explains the company’s md Jürgen Braun. “And good partners in the area for the production of trees and trading of the fruit. In this sense, we are a vertically integrated company. What acts as an incentive for the grower is that they are free to plant Kiku trees without being restricted by a complicated contracting system. So growers and co-operatives are free to sell the apples with the variety name Fuji, but they cannot use Kiku without having an agreement with us.”
This year Kiku has signed new licensing agreements with traders in Slovenia, Austria, Germany, Switzerland and Italy enabling them to use the Kiku trademark on fruit that matches certain quality requirements. “There is also collaboration for exchange of apples, especially of different sizes through the countries,” explains Braun. “Other areas of co-operation are on common marketing and quality controls on apples from the southern hemisphere.”
Exports are growing fast too, as young Kiku trees become more established and crop volumes increase. And the fact that the UK prefers a smaller apple is complementary to the preference in southern Europe. “Exports to the UK have increased over the last few years as the crop has increased,” says Braun. “Most of the apples in the 65-80mm bracket go to the UK market.”
Looking ahead, Kiku is interested in finding new production areas for its Fuji in the 10 new member states of the EU. “However finding new consumers there may be difficult, as Fuji is a high-price product, but there is a possibly a niche market for it now,” concludes Braun.
VIP INVESTS TO EDUCATE
The Val Venosta producer association VIP is testing new varieties Rubens, Sonya and Cameo and has a programme of constant orchard renewal. “We clear about five per cent of the area on a yearly basis,” says VIP’s Josef Wielander. “Our main varieties are Golden Delicious, Red Delicious, Royal Gala, Pinova, Braeburn and Fuji.”
And this season’s investment has also focused on infrastructure. “This year we endowed all co-operatives with new loading ramps to optimise loading and unloading and all co-ops refurbished or replaced parts of their storage facilities to guarantee safe environment-friendly storage of our apples,” says the association’s Michael Grasser. “We also made significant investment in the latest grading facilities and introduced new software to all co-operatives to ensure traceability from harvest through to the final customer. Our production process is absolutely transparent.”
Val Venosta has also invested considerably in advertising on TV and radio which have served to increase brand recognition among Italian consumers dramatically. It plans similar activity this year, although it will still concentrate on trade marketing. “Our Priority is to be present on the shelves, but in the end it is the consumer who makes the choice and so we have to ensure the consumer knows about our brand and associates certain attributes with products from Val Venosta,” says Grasser.
In line with other senders to the UK, VIP has found that its exports are increasing as the group widens its portfolio to include new varieties. “Due to the fact that Golden Delicious is our main variety, we are very limited in exports to the UK,” says Wielander. “However as crops from new varieties increase, the UK will continue to grow in importance to Val Venosta exports.”
VIP is looking forward to a good season with about 240,000 tonnes of apples expected from its South Tyrol orchards. Ninety-five per cent of production is grown according to integrated crop management techniques, including three to five per cent that is organic.
“The conditions in Val Venosta have been good so far,” says Grasser. “There have been no problems with hail or other adverse weather and fruit size and quality are good so we expect a smooth harvest.
“Also this year, Golden Delicious and Red Delicious have the typical, elongated mountain shape. Temperature conditions have been ideal with a big variation between night and daytime so we can expect red blushed Golden Delicious and very good coloured red varieties.”
VARIETY THE KEY FOR MELINDA
Probably the best known apple brand in Italy is Melinda and it adorns fruit produced by growers in a large Trento-based consortium of the same name.
Melinda is investing heavily in packhouse technology and two new facilities are under construction and due to be unveiled in March and September 2005. They will be able to handle 50,000-60,000 tonnes of apples a year and will boast the latest in pre-sorting and firmness detection technology as well as full traceability and ISO9002 certification and BRC and IFS accreditation. “The overall investment is e30 million,” says Luca Granata, Melinda general manager. “In the meantime, we are continuing with the rationalisation of our grading and packing operation and now are working out of nine sites compared to 16 in 2001.”
The group has also finished the second year of its six-year variety plan, due for completion in 2008. The main varieties under production are Golden Delicious with 4,850 hectares compared to 5,050ha at the outset of the project. Red Delicious acreage is now 632ha compared to 539ha and Renetta Canada is 580ha compared to 616ha. “Golden has been replaced by red and bi-coloured varieties in the lower sites of the valley of 400-500 metres above sea level while Golden Delicious is being concentrated in the areas between 600m and 900m above sea level,” says Granata. As a result Gala acreage now stands at 187ha compared to 115ha two years ago and Fuji has climbed to 95ha from just 14ha in 2002.
Melinda’s main focus is the Italian market but 25 per cent of its sendings are exported - principally to Germany and Spain, although the UK is a growing market. “Our exports to the UK have increased significantly over the last two years,” explains Granata, “mainly thanks to our capability to meet the strict quality standards required by our key customers.”
The accession countries to the EU are also proving increasingly important markets for the Melinda group. But this situation may soon change, warns Granata. “In the short term, the recent accessions could be more likely to generate some additional opportunities for apple producers of the EU-15, rather than risks,” he says. “Nevertheless, such a situation could become the other way round five to 10 years down the road.”
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