European growers desperately need to find strategies for survival against the devalued dollar and the supermarket price wars, according to Gerhard Dichgans, managing director at VOG, right.
With the devalued US dollar, the gradual expansion of production in eastern Europe and the Far East, and low revenues, top fruit producers are struggling more than ever, he said.
To combat these challenges VOG is reassessing its varietal offer.
“In total we have re-invested 40 per cent of revenue into new varieties for the different microclimates in our growing regions,” Dichgans said.
With 26 affiliated growers, VOG (the Association of South Tyrolean Fruit Growers Co-operatives) is now Europe’s largest marketing organisation for apples.
It is also the largest supplier of organic apples and produces 100 per cent of the organic Pink Lady offer.
Staying ahead of the market preferences is vital for survival, Dichgans claimed: “If we hadn't made all these changes we would have lost our position in the market. It is very important to have the right varieties."
With such different climates across the South Tyrol region, VOG is able to produce both the bi-coloured varieties favoured by northern Europe and the Golden and Red Delicious varieties comprising 60-80 per cent of the apple consumption in Italy and Spain, he explained.
While it is important to be aware of market movements across the globe, VOG will continue to focus its attention closer to home, according to Dichgans. He said: “This year we will be investing most in promotion for the UK market - including Ireland - as well as in Scandinavia, Portugal and the eastern Mediterranean countries.”
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