As the apple industry continues to regain its position as the UK’s number-one fruit - a moniker it has recently lost in favour of the banana - a battle has also broken out within the fruit aisles.
The offers of stonefruit and soft fruit have bitten into the snack-fruit market during the summer months, with the school holidays adding to this as the ‘apple a day’ mentality takes a break.
Latest figures show a particularly flat apple market with expenditure up just five per cent - price is up a mere three per cent and volume up just one per cent.
An overcrowded supply base has led to average prices in the last three months, with importers spoilt for choice on some lines. One insider tells FPJ: “It has been a stable, lacklustre market and August is traditionally a flat month too, with the summer holidays leaving consumption quite low. If you are caught with a lot of late-season southern hemisphere stock, it can be a real problem to shift it. Braeburn has been a particularly difficult market; the South African window was compromised by late French product and the battle with New Zealand created a congested market.
“Some source countries have taken the decision not to overship on some lines to curtail supply and keep prices strong. The New Zealanders have done so on Royal Gala with some success.”
Outside the staple apple varieties, the Chinese Fuji seems to be continuing its inexorable rise. One insider says: “The Fuji apple has been trading very well from China, despite flat periods in the middle of summer, but its success in the UK will most likely rely on exchange rates and how much product China is prepared to ship to the West. Retailers are working with their suppliers to secure more fruit, but there could well be battles over shipments.
“Pink Lady has also come under a bit of pressure with South Africa, Australia, New Zealand and South America all battling for the same market but, in the longer term, it may be good for importers as the French season doesn’t really get going in earnest until November.”
In the pear market, supplies have been difficult to come by in the past month. Smaller fruit, favoured by the UK market, has proved tight. South Africa has not had the high volumes of previous years and an increase in demand has created a headache for suppliers. “The market for pears is doing very well,” says one expert. “It is up around 10 per cent, with sales quite impulse-driven.
“Availability has not been good and there has been a scramble for Dutch and Belgian product, with southern hemisphere availability down. But this should ease as the Spanish have started to retail and Italian Williams is imminent.”
The European top-fruit season looks promising this year as the continent seeks to overcome two difficult years in the sector. The Belgian ministry of agriculture expects pear volumes to be back on track with a 65 per cent increase on last year at 280 million kilos - the same as 2007 - and 90 per cent of this will be Conference pears.
US pear growers are optimistic of a bumper crop to rival European product. Pear Bureau Northwest has estimated that it will produce 19.1m boxes, an increase of 10 per cent on 2008’s small crop and 8.5 per cent larger than the average over the last five years. Some 38 per cent of this will be available for export. The bureau has focused its efforts on organic production, with an estimated 33,000 boxes headed primarily for Canada and the UK.
But Belgian apple volumes are expected to be down by eight per cent at 310mkg, down from 335mkg last year.
The English apple season is always a high-profile time of year for the sector as promotional campaigns and shelf-space battles ignite the market. After a disappointing 2008, growers and suppliers will be desperate for good quality and strong sales this year, and prospects are good.
One supplier tells FPJ: “The cold winter has undoubtedly improved tree health and with the excellent conditions during pollination, the season had a great start. Some orchards experienced quite high levels of run-off in June, but the crop volume is good overall, within the average for the last five years.
“The newer varieties will have greater volumes this year as their orchards mature, which will be good for customers. All growers are hoping for now is some sunshine.”
Some quite high winds for the UK created some skin damage and fruit rubbing while light russet evident on some fruit may combine to impact on the amount of Class I product. However, sunshine has helped leave sugar levels high and overall apple sizes are set to be large. Discovery has kicked off the season with very limited supplies, with Worcester soon to follow in the early season. Gala and Braeburn look to be in for huge volume increases, with the former up around 10-15 per cent and looking to extend its run into March.
One source tells FPJ that Braeburn will see huge increases. He says: “Volumes are in line with our expectations, at least 60-70 per cent ahead of last year, and could go as long as early May.
“The designer apples, including Jazz, Kanzi, Cameo and Rubens, could see an increase of 45-50 per cent, while Northern Irish Bramley volumes could drag the overall UK number down by 10 per cent after the crop was affected by scab.”
With UK Conference pear volumes also up by around 30 per cent, strong sales will be vital. “What is very important is that the partnerships involving multiples and suppliers are maintained and strengthened,” says a source. “We have seen some excellent, modern orchard management and investment in the UK in new varieties, techniques and stores, which should be rewarded.”
A FASTER WAY TO THE APPLE PEAK
Over the past year, our advisers have worked with their growers to produce what, we can safely say, is a good crop in terms of yield and quality, writes Farm Advisory Services Team (FAST) Ltd’s fruit adviser, Doug Hutton-Squire.
We have been doing this for 27 years now and our recent move to Brogdale has given us the opportunity to continue to innovate by trialling 35 new varieties, different growing systems, pruning techniques and spraying systems. We are also able to handle more samples through our lab to back up our advice with information from a large database of soil leaf and fruit analyses. These developments are essential in ensuring that our growers stay at the forefront of fruit growing and it is true that the new orchards planted over the past few years are the equal of any planted in Europe. They are far more efficient, producing higher yields at lower cost.
It still takes at least five years for a new orchard to break even. The fruit business is a long-term game. We are working with our growers to build strong, long-term relationships with their customers. Our growers are showing the ability to adapt to the changing marketplace and are making market-led decisions to match supply with demand. For example, Cox volumes are being reduced by replacing old orchards of poorer-quality fruit with new varieties. This has had the effect of supplying better-quality fruit in the right volumes and creating opportunities with other varieties.
The UK only produces about 25 per cent of the top fruit that is consumed in the country through the year, so we are a small but nevertheless important player in the market. In many ways, UK producers are fortunate, as we have 60 million shoppers on our doorstep, many of whom prefer to buy local produce. To compete with the 75 per cent imported fruit, our growers have risen to the challenge and year on year, produce the same quality product, if not better.
Because we can’t control the market, growers are continually striving to deliver a product that gives them the most flexibility in selling their crop. To do this takes dedication and skill, as we are often dealing with two or three production cycles at once.
This year’s crop actually started in June last year, when fruit bud was being initiated, while fruit thinning was taking place. Growers have to manage their crop loads so that the optimum leaf-to-fruit ratio is achieved for good-quality fruit in the cropping year, as well as good-quality fruit bud for the following year. Hand thinning is usually required to ensure uniformity in maturity, fruit firmness and brix levels.
As picking approaches, maturity testing is done using Quality Fruit Group guidelines to determine picking dates for maximising storage potential. Harvest schedules are planned like military operations, and sufficient pickers and equipment are sourced, serviced and trained to implement these plans.
Everything is done to make sure that only saleable fruit is put in the bin. This is because 66 per cent of all costs occur post-harvest. Growers know only too well that they cannot afford to transport, store and grade fruit that is not going to be sold at a profit. The use of picking trains (the benefits of which have been analysed by FAST) greatly improves the ability to supervise this operation. Some Gala growers regularly achieve 95 per cent Class I by good tree management and picking several times.
Once picked, fruit needs to be put in store quickly to remove the field heat. When fruit is picked, it loses its ability to keep cool, causing internal temperatures to rise significantly. One day out of store can reduce storage potential by up to one month. Storage conditions then need to be established carefully, according to variety. The stored fruit needs to be monitored on a monthly basis to ensure quality is being maintained.
By constant innovation and attention to detail, FAST is working with growers to improve the efficiency of fruit growing. This will enable growers to better weather the inevitable cycles in the market, making sure our fruit is as good as it can be and a good advert for the UK fruit industry.
No comments yet