Dutch and Belgian top fruit is back on form and the major players are upbeat about prospects for the season, following a good start in the flowering period back in April and despite varying conditions, including heatwaves and hail.
However, the constant pressure to innovate and invest in new varieties against the backdrop of the tough economic climate has made it more of a challenge for growers and exporters to remain loyal to the UK market.
Figures from Prognosfruit, held in the Dutch city of Maastricht in August, show that apple exports to the UK from Belgium have halved by 49 per cent in the last year, while sendings from the Netherlands have fared better and risen by 14 per cent in the same period.
The World Apple and Pear Association forecast at the annual meeting that Dutch and Belgian pear volumes will reach 281,000 tonnes and 311,000t respectively, showing a significant recovery from last year - up 81 per cent for the Netherlands and 65 per cent for Belgium.
On the other hand, Dutch and Belgian apple volumes are split at 392,000t and 311,000t respectively, up four per cent for the Netherlands and down seven per cent for Belgium.
To put this in a European context, the overall trend is that more pears and fewer apples are expected to be produced in 2009-10, with pear production on the continent projected to rise by 16 per cent on 2008-09, while apple production is forecast to fall by seven per cent.
But the range of varieties coming onto the market from both the Netherlands and Belgium is increasing, even though the highest volumes are still from long-standing favourites. Conference is by far the largest pear variety, swiftly followed by Comice and Lucas. The apple category has more of a mix, but features Jonagold and Jonagored as the largest production, followed by Elstar, as well as increasing volumes of the likes of Junami and Rubens.
This is set to be a big year for the Netherlands in particular, which for the first time is expected to produce more than 300,000t of pears, of which some 250,000t will be Conference, while apple production is also set to increase.
Bert Wilschut, product manager for apple and pears at The Greenery, is positive about the prospects for the season, but admits that there will be challenges facing Dutch top-fruit producers, including the hail damage that has hit apples harder than pears, a tricky European market and low prices. “The season started a bit earlier this year,” he says. “The big difference compared to last year is that a considerable stock is still available on the European market. This puts some pressure on the price of the products. Additionally, top-fruit prices are at an historical low. At this point, returns barely cover the costs of harvest. However, we expect a recovery of the price as soon as the stock is no longer putting pressure on the market.
“The situation in pears is different,” he continues. “The smaller volume of pears quickly found buyers on the market, which prevented the Netherlands from supplying Conference all year round. Big buyers from the UK, for example, have therefore replaced Conference with other varieties, which has resulted in lower exports to the UK.”
But even with this downturn, Wilschut insists that the UK will remain an important market for Dutch senders. “We are looking to it with confidence, especially as we have been working closely with retailers,” he says. “Considering the quality of our pears, we foresee good sales and exports to the UK.”
Down to Belgium, and growers and exporters are hoping that supply and demand will pick up after a slow start.
Etienne Leclere, commercial director at Veiling Haspengouw, is anticipating a good eating crop, with smaller pears and larger apples. However, he admits that the season has not got off to the best start compared to last year. “The market has been more difficult, especially on apples, where there is more overhang from the old crop,” he explains. “There have been no problems with the weather, with no frosts and a good summer - but there has not been enough rain, which explains the smaller size of the pears.
“Normally, Belgian pear growers get good returns, but this year we are starting at lower prices. On the apple side, growers are planting newer varieties and we will need to see if they can get better prices.
“I think that when we start slowly, it can only get better, whereas when we come in at higher prices, it is difficult to keep them at that level.”
UK importers are watching the market with interest and have continued to look for high-quality fruit, especially the main pear varieties grown by the Dutch and Belgian sector.
Steve Maxwell, marketing director at Worldwide Fruit, confirms that pear production has returned to its normal levels and that, so far, the quality of Dutch and Belgian pears has been high. The UK-based firm imports mostly Conference, as well as Comice and Concorde.
“The market was a good one to come onto because it was quite empty,” says Maxwell. “The countries have had a larger crop, but not huge - it is very manageable. Prices have been competitive; back to where they were a couple of years ago.”
Neville King from Capespan is confident that the UK will remain a key market for Dutch and Belgian exporters, even though this year’s higher volumes will make sendings difficult to predict. The importer started with Dutch and Belgian Conference pears at the beginning of August, two weeks earlier than usual.
“Having ideal weather conditions, with regards to sunlight hours, temperature and rainfall all being on our side, has helped the crop,” says King. “But it is difficult to judge how this will fit in with the rest of European supply because the crop last year was poor.If comparing with 2007 on a like-for-like basis, we would say there will be 15 per cent more pears and 10 per cent fewer apples.
“It has been a bumper crop, and therefore we are unable to predict at this stage of the season what volumes will be exported to the UK. However,the UK is still very important and remains a priority.”
King admits that price negotiation has been affected by the recession, coupled with the exchange rate, which has increased import costs, maintaining that “the challenge ahead will be to move the volume at a good price.
“Those driven on quality will succeed, in conjunction with a competitive cost chain and the customer and their needs in mind,” he adds.
So what is the best way forward for the Dutch and Belgian top-fruit sectors? And what lies ahead for both sectors?
It is generally agreed that a shift to new varieties that represent something not seen before should make for robust investments from both countries. Victor Eijkman, a partner at Next Fruit Generation (NGF), says “breakthrough” varieties should be the main focus, because the onset of new cultivars that are in line with what consumers can expect from the market will only neutralise the potential impact.
“The important thing is that we see breakthrough varieties, not more of the same,” he explains. “The introduction of a new bi-coloured apple may well have positive elements for the grower or the retailer, but if the consumer cannot see the difference, it will fail in terms of sales.”
With this in mind, NFG focuses on what Eijkman calls the “next generation” of fruit, with its portfolio including a red-flesh apple, bi-coloured pear Sweet Sensation and russetted pear Gold Sensation. “The red-flesh apple in particular represents something completely new for retailers and consumers, with its red skin, red interior and its health benefits,” he says. “We are working with growers in Switzerland, the US, France and Italy, as well as the Netherlands and Belgium, to bring the variety to market. At the moment, we are in the roll-out phase and we are getting ready for commercial production with the propagation of the trees.
“It is a gradual process - we do not want to sell anything at the moment but, instead, we are focusing on showcasing the few hundred kilos of fruit that we have.
“The UK market is very well structured to be able to introduce this kind of product on a small scale and we have been working in close collaboration with UK retailers, in order to prepare them. But it is irrelevant for us to try to sell just a few hundred kilos - instead, we have to start by raising awareness, because the apple looks like an attractive apple from the outside but, to look at it, there is nothing to indicate that it is red on the inside.
“The apple responds to all the criteria set out by growers; it has good shelf life and attractive appearance and on top of that, it has very high levels of antioxidants.”
Comice mutation Sweet Sensation will hit the UK at the end of October. Dutch licensees will produce 600t this year and so far, feedback on fruit quality has been positive. At the same time, smaller volumes of Gold Sensation will make their way to the UK, in time for late October or early November.
NFG has a number of other developments in the pipeline, including bi-coloured pear variety Early Desire, which came onto the market in commercial volumes last week and has performed well on Dutch auctions, making up to €1 a kilo without packaging. Next year, the variety will be exported to the UK for the first time.
“We are trying to be creative and we will have some exciting projects in the next few years,” says Eijkman. “Naturally, there is an adjustment that is required. There are lots of new, young orchards that are still coming on stream.”
So as long as the Dutch and Belgian sectors continue to make the right investments, the well-established relationships that many of the major players have with the UK market should be well placed to continue. How the rest of the season will pan out remains to be seen, but growers and exporters in both countries are sure to build on their links to move their volumes at the best prices.
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