Figures from Kantar Worldpanel show that the market has grown by some 7.2 per cent – or £70.6 million – to reach the £1 billion figure for the year to 17 February 2013. However, volumes have fallen over the period by some 4.9 per cent due to the difficult growing conditions that hit the entire EU crop.

All this impressive value growth is therefore entirely down to an increase in the average prices by some 13 per cent to £1.65 on apples and pears being sold through the major multiples.

As forecast at the outset of the European season, considerably less fruit has been sold on deals such as two-for promotions – some 11 per cent less year on year, according to Kantar – and shoppers are also buying fewer apples and pears on each trip. In fact pears have been driving the decline in volume and are some seven per cent down, while apples have driven the upsurge in value to the tune of an 8.3 per cent increase year on year.

The retailers themselves have recorded mixed performances. Kantar figures show Waitrose and the discounters both increasing in value and volume to the extent that the discounters now overtrade significantly. This is backed by comment from Adrian Barlow, chief executive of English Apples & Pears. He says: 'When you consider Aldi has a four per cent share of the grocery market it is performing exceptionally well on English apples, taking a 7.4 per cent share. This shows that it is important that as an industry we explore every avenue. We are selling some good volumes into Aldi, but there is potential with Aldi and Lidl to supply even greater volume.'

Meanwhile, perhaps reflecting the broader marketplace beyond apples, Asda saw the biggest volume decline with a slump in apple sales of 21 per cent in the period analysed by Kantar and an average price hike of 32 per cent. And Morrisons has been the only major multiple to show a decline in value of some 2.2 per cent.

With such a short volume crop from the EU, the stage is set for a neat handover to the southern hemisphere. Most UK dessert apple production is likely to have cleared the market by April, if not before, and even Bramley apples will be finishing more promptly than usual – likely to be the beginning of June – according to Barlow.

There have been no major production condition issues reported in the principal source countries of South Africa, Chile, New Zealand, Brazil and Argentina. First sendings from New Zealand are on the water and expected to arrive next week. Allan Pollard, chief executive of Pipfruit New Zealand, says: 'The first consignment of Cox left on 21 February so should arrive in the UK on approximately 21 March. A further consignment of Cripps Pink has also left.'

There is no doubt that demand for NZ fruit in markets closer to New Zealand itself is increasing. Due to the country's clean, green image and investment in varieties with Asian-market appeal the UK and other EU markets have to be prepared to pay the prices the New Zealanders need to continue investment in their orchards. This has led some industry insiders to worry about the UK's role as a market for the antipodeans.

One source explains: 'The New Zealanders are sending more into the Asian and eastern markets so they probably don't regards the UK with the same importance as they did even a few years ago. The South Africans are selling more into the Middle and Far East and other African markets too.'

Pollard is quick to counter these fears, however: 'The UK will continue to be an important market for NZ apples,' he told FPJ. 'Last season just under 16 per cent of total exports went to the UK, mostly Braeburn, Cox, Cripps Pink and Jazz, and 20 per cent of our pear exports went to the UK.'

Nevertheless, the Kiwi senders are contending with a number of issues such as the high value of the NZ dollar against world currencies and the increased costs of shipping. —

HOW TO YOU LIKE THOSE APPLES?

Despite weather and land issues resulting in a drop in the Brazilian apple harvest, this South American country is still eying up the British market. Samantha Lyster reports

ccording to the Brazilian Association of Apple Producers (ABPM), harvests in Brazil will drop by 11 per cent this year due to droughts and frosts but also the eradication of plantations in some of the country's traditional apple-growing regions.

Not only will there be a fall in fruit but also the size will be reduced. While the reduction of numbers is disappointing, the smaller sizes are opening up potential opportunities in the British market. Apple exporter Pomagri says that there has been interest in the market for taking the smaller sized Brazilian fruit.

'Crop this year will be smaller than last year. The degree is not known right now as Gala picking is finishing but the frost of October has really impacted the production. Fruits are smaller than usual,' says Pomagri spokesman Pierre Nicolas Pérès.

'Export will suffer some consequences from that situation as [our] internal market is very strong and prices are considered satisfactory. The English market for the Brazilian producers is considered to be technical with some added value but the taking of smaller size fruits is very interesting for us.' Pérès adds that demand is good, especially for Gala and Fuji, and that the exporters have a limited volume in Braeburn and Cripps Pink on offer to British importers. Pomagri is currently awaiting the release of a new variety called Mona Lisa, which is resistant to scab, red spider, and oidium.

It's not just product innovation that the company is involved with but also the funding of new technology.

'We have a partnership with the Federal University of Santa Catarina and SEBRAE, financing of the anti-hail net,' adds Pérès.

'[We're] always in partnership with EPAGRI and EMBRAPA (state and federal) research teams to find better ways to produce and working on new varieties resistant to diseases.' The Brazilian fruit trade body IBRAF says that last year the country exported 72,000 tonnes of fruit and that the UK is the third-largest buyer of apple imports, taking 11,000 tonnes in 2012.

A spokesman said that the focus of activity was on new apple varieties that can be grown in warmer regions to diversify production and supply of fruit. 'An example is the Eva apple, already in production in the states of Minas Gerais, Paraná and Bahia up in the region known as Chapada Diamantina,' he adds. 'However, production is currently only supplying the domestic market, representing only five per cent of the Brazilian apple production. The state of São Paulo has also emerged in the production of this variety with the second semester harvest starting in August with peaks of harvest in November and December, a time of great consumption.

'Another new variety in production is named Daiane, which has a harvest period between Gala and Fuji, with more present acidity, more intense red colour and with a larger calibre. It is expected that this range will represent about 10 per cent of production in the next few years.'

The IBRAF spokesman continued to say that the Brazilian Fruit Institute, in partnership with Apex-Brazil (Brazilian Trade and Investment Agency) since 1998, had developed promotion of Brazilian apples.

'But due to recent crop failures and a heated internal market, we're meeting with the industry to understand which are the best strategies to add value to the product and increase profitability,' he added. —

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