With so much land and such differing microclimates at its disposal, it is no surprise that the US is one of the world’s largest horticultural producers. After a boom year in 2005, volumes are down for some products this year, including apples and grapes. Having such a mammoth domestic population means internal sales of fresh produce in the US are considerable but some products are heavily reliant on exports to accrue the kind of prices they need.
South America and Canada provide willing outlets for produce but the US readily looks further afield for more favourable returns. According to the US Department of Agricultural (USDA), total agricultural exports will rack up some $16.7 billion (£8.87bn) this year, with a record $18.4bn (£9.97bn) forecast for 2007. And horticultural production is one of the key drivers in this expected growth.
But just how much of this income will be generated through UK sales? Relationships between the US and its ‘parent’ country may go back centuries, with a shared language facilitating easy communication; but does that make us viable partners in the fresh produce trade? Going by the latest stats from the USDA alone, the answer is a resounding yes. In 2005, the value of fresh fruit exports to the UK amounted to $85.5 million (£45.4m) - up from $66.1m (£35.1m) in 2001 - which represents 55 per cent of all US fruit entering the EU.
All manner of US fresh produce makes its way into the UK marketplace at varying times of the year, with Washington apples, California cherries and Florida citrus, among others, proving firm fixtures on the calendar. However, according to the USDA, cranberries and blueberries are the upcoming champions.
The Summerfruit Company (TSC) clearly agrees the US has much to offer in the berry department, as demonstrated by its decision earlier this year to form an alliance with US-based producer Sunnyridge Farm to co-ordinate procurement of berries to the UK from north and south America.
“In Sunnyridge we found a like-minded partner who is very focused on varietal development and consumer satisfaction,” says TSC director Ian Waller. “The alliance has given growers access to an independent breeding programme on all areas of soft fruit and the early signs are very encouraging.”
Sunnyridge Farm director Carlos Ferrer, highlights the symbiotic nature of the union. While he has the opportunity to accommodate the surplus product that cannot be absorbed by the US market, TSC will become a favourable choice for retailers, with its ability to supply them during the European off-season, he says.
Not only is the varietal development interesting in terms of the calibre of products that can be brought in from the US but also in the ability to transfer the novelties to production sites closer to home, says Waller. “The level of innovation we see from the US, especially in varietal development, has played a very important part in extending the seasonal production of soft fruit in Europe as a whole, especially in strawberries and blueberries, and more recently in the raspberry category.”
Gordon Smith, international marketing manager at the California Tree Fruit Agreement (CTFA) agrees his region has much to offer. “Whether it is brand new varieties, environmentally conscious growing practices, or custom packing styles, Californian growers lead all other stonefruit growing regions around the world in bringing premium fresh fruit to market and exceeding consumer expectations,” he says.
However, for some UK buyers, the US will only ever be a secondary substitute or stop gap between nearer sources in times of erratic production - a point which Mo Cameron, export sales manager at Californian exotic and conventional fruit specialist Trinity Fruit appreciates only too well. “The UK is an important market for US producers during certain windows of opportunity,” he says. “In California, we find it hard to compete mid-season, due to the availability of plentiful fruit on the continent with much faster transit times and lower freight rate.” But rather than just accept this as a barrier to trade, Cameron says there are opportunities aplenty for the best producer/exporter organisations. “I think that items with better quality and better taste can compete keenly in the UK market,” he suggests. “If you compete just on a price factor, you will always be at a disadvantage due to the freight situation, so trade development has occurred in areas where the producer is offering something more than just a run of the mill commodity.” Mike Rucier, international marketing manager at the California Cherry Advisory Board agrees the UK market will only be a possible target for organisations of a certain standing. “One of the major challenges going forward - and I see it happening here in the US as well - is that UK retailers are wanting to look at their suppliers as category managers; they want one or two major suppliers so they are always going to favour the bigger players and it will be increasingly difficult for newer or smaller companies to get a look in.”
Neil Gordon, of NMG Consulting, the UK representative for Californian cherries and the US Apple Export Council suggests that with shipping lines becoming speedier and more reliable, distance is no longer considered a tangible barrier to transatlantic trade, adding, “in reality our apples travel a smaller distance and for a shorter time than fruit arriving from many other places”. However, with food miles playing an increasingly important role in determining consumer shopping habits, many agree the issue of distance, especially in terms of airfreighting, could well present significant challenges in the coming years.
So, why are US exporters so keen to make their mark in Europe at all, given such restrictions, and what is so alluring about the UK, in particular? “The UK is the premier market in Europe,” says Rucier. “If I want to know what will happen in the US in five years’ time, I just look at what’s going on in the UK. If you get in with the few key chains, you are firmly into the market, whereas in Continental Europe, there’s a lot of competition. Spain, for example, is really tough because they grow everything themselves and really well.”
Gordon agrees. “Although we are in no way adverse to trade with the rest of Europe, it seems our major apple varieties - Empire and McIntosh - are particularly popular in the UK, as well as newer varieties from California,” he says. “McIntosh has been coming here for well over 100 years and we firmly believe that our customers like the red apples that we send, provided by the unique climate of the north-eastern US, and that they compliment the domestic varieties, providing choice for UK consumers.” Dave Carlson, president of the Washington Apple Commission is similarly hedging his bets on future growth in UK demand for its organic apples, since the US climate is much more favourable for growing them.
Many US industry figures are quick to highlight the reliability of UK importers and buyers as trading partners. However, the question of what it takes to serve them, and the issue of required “standards” provokes a mixed response. “Relations continue to be strained by onerous food safety and other regulations that appear to be aimed towards limiting the export shipments bound for the UK,” says Carlson. Meanwhile, others regard the UK’s notoriously stringent specifications as a benchmark of ultimate quality, with knock-on benefits for those doing business with them. “The UK retail trade is on the cutting edge of food safety and socially responsible trading,” Cameron says. “Although it initially may be more challenging for US producers to comply with more advanced requirements, in the long run it benefits US producers as they can offer a higher degree of food safety compliance to the rest of their clientele.”
But, even those who appreciate the necessity of compliance lament the difficulty involved. “The need for BRC and EurepGAP makes it much harder for smaller companies to compete,” says Rucier. “It is an expensive process and very time consuming, with lots of administration, and companies might need to employ someone just to handle all of it which is not something the smaller ones are in a position to do. Also, with the supermarkets all having their own standards these days, you need to have three or four if you want to be a serious player in the UK.” Carlson agrees that the lack of harmonisation between different standards is a major challenge for US exporters, going as far as to say, “elimination of EurepGAP programme in favour of SGF [Sure Global Fair - a QA standard geared towards the fruit juice market] would be a great help.”
However, while many, especially in the UK, continue to resent the extent of the retail boom and its transformation of the high street, for US commodities it has undoubtedly been a blessing, says Rucier. “The opening of more high street stores has definitely provided the US with more distribution outlets because you would be unlikely to see a lot of US products in the smaller independents but we are now getting into some of the higher-end areas which looks interesting.”
So, will the pressure to conform to ever-increasing standards put US exporters off dealing with the UK? It would appear not. Transatlantic trade may not be as straightforward as some options but those in the game believe it will continue to rise steadily, in accordance with growing demand for its products, especially berries and other speciality lines. As Rucier surmises: “The UK is the key entry point into Europe and we will do whatever it takes to get into that market. We might complain a bit about it but we are not going to stop shipping.”
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