Despite scarce appearances from the sun over the summer and fairly damp conditions as harvesting began at the end of August, the English apple industry is relatively optimistic that this year’s crop will put in a good performance in terms of volume and eating quality.
Adrian Barlow, chief executive of English Apples & Pears (EAP), estimates that volumes are probably about five per cent down on last year, as opposed to the 10 per cent fall forecast at international top-fruit trade event Prognosfruit, held in Kent at the start of August.
Gala and Braeburn - which now account for four out of every 10 dessert apples sold in the UK, according to Barlow - are in fine shape volume-wise.
“Gala will probably be a little bit larger in volume than forecast at Prognosfruit,” says Barlow. “Braeburn will also definitely be a little larger - probably around 11,000 tonnes, as opposed to the 9,000t forecast in August.”
Andy Sadler, managing director of Kent marketing desk Norman Collett, says volume on most crops is looking good, with Cox maybe just slightly down on last year. “There will be more Gala than last year, as younger trees are now coming into bearing, and it’s the same with Braeburn,” he tells FPJ. “There will be good quality on Gala with decent colour; but there may be some issues with the sugar levels due to a lack of sunlight in July and August. The flavours are good but the sugar levels are not quite as high. We had the same problem last year, due to lack of sun.”
Picking of Braeburn will start in a week, says Sadler, but the fruit colour is looking good so far due to colder nights over the last three weeks. “The good weather over the last three weeks has been ideal for picking,” he explains. “The first week of harvest at the end of August was very damp.”
Steve Maxwell, marketing director at Worldwide Fruit (WFL), says: “Our overall volumes will be slightly up on last year - Cox will be down a little, although Gala and Braeburn will be up.”
Skin finish is largely good, he reports, although there are a few traces of russet on Cox. But while Gala and Braeburn look visually good, growers have struggled with the fruit’s sugar levels. “There has not been enough sunshine, so growers have had to work harder to get the light levels to the fruit in the orchards,” says Maxwell. “The quality is there, but it has been harder work.”
The low light levels have also created some issues on sizing. “Apple sizing will still be a little smaller than last year, due to the dreary weather in August,” says Barlow. “However, the decent conditions in September may well have pushed up fruit sizes a little bit. All told, however, fruit will be slightly smaller than average.”
Club varieties such as Jazz, Cameo, Kanzi and, for the first time this season, Rubens, are taking an increasingly larger share of the UK market and that trend is set to continue in 2008-09. Trials are also taking place on a Swiss cultivar called Junami.
Collett’s will market around 1,400t of Cameo this season, with harvesting now underway. Fruit has a good colour due to cold nights, and will be marketed from mid-November to April. “Year on year, our volumes of Cameo are growing, but we want to encourage more growers to plant it,” says Sadler. “Many of them like to watch and see how a new variety performs before they take the plunge and increase plantings.”
Collett’s is releasing its first commercial volumes of Italian variety Rubens into the UK market this year, and fruit is now being harvested. The firm expects to market 180t of the premium club cultivar this year. “The fruit looks superb at the moment - it has a good appearance and flavour, and a good crunch,” says Sadler. “It fills a window post-Spartan and pre-Cameo, and will sell from mid-October to February. We only have 180t this year but 100,000 trees are planted, so we have good potential for three to four years’ time.”
Jazz is making a significant impact on the UK scene. Volumes of the trademarked New Zealand variety, marketed through WFL, will double this season, says Maxwell. “The fruit needs a few weeks off the tree to calm down and get the sugar/acid balance right,” he explains. “The trees are young and the colour looks good, very vibrant.
“Jazz is consistently able to increase sales in store,” adds Maxwell. “We find that when people have tried it once, they tend to stick with it, so the key for us is getting people to try it. Every time we promote we keep new consumers with us after the promo offer has ended; people clearly like it.”
So what has triggered the UK industry’s relatively recent spurt of investment into new varieties? Barlow explains: “One of the problems in the 1980s and 1990s was that the British industry didn’t invest in new varieties. We were behind the game plan with Gala because we didn’t get into it early enough. In the noughties, the growers started planting Gala, and we are now at the stage where we are almost self-sufficient in the variety during the UK season - that is tremendous. There has been significant support from the UK multiples towards this.”
Braeburn represents another massive import replacement opportunity, believes Barlow. “Braeburn is really a January to early May apple, maturing much later than Gala, whose season runs from September until March,” he says.
“When Braeburn first appeared in the UK, the researchers and technologists said we would not be able to grow it here, but by finding better clones and the right production sites, we can grow it with distinction. But you have got to find the right sites - it is not suitable everywhere.”
There is a tendency for growers to look towards the past and believe old varieties are the finest available, Barlow continues - but the new varieties breeders have created are easier to grow, produce greater volumes and have a better gradeout. “This gives a greater crop and can reduce production costs per kilo,” says Barlow. “It is very important that we test new varieties, but they must provide consumer satisfaction and give a point of difference. If it is not a good eating variety, then it is of no interest to the UK industry.”
Barlow feels the emergence of new club varieties is certainly a step in the right direction for the UK industry. “Rubens is definitely a variety for the future - it is extremely promising as a mid-season, pre-Christmas variety,” he explains. “English Jazz is shaping up as a good brand and other varieties such as Kanzi and Cameo are similarly great news for the UK industry. Junami has also generated big interest from the retailers during its trials.”
And the investment into new varieties does not look set to abate. Italian cultivar Modi is being trialled by some of Collett’s growers. “This variety looks really good when it is growing in Italy - it’s like a large Spartan, but slightly more robust,” says Sadler. “We are seeing how this one might grow in the UK and if we can produce it with low inputs.”
Over the last few months, Collett’s has also developed a partnership with Kent research station East Malling Research, and this spring will be trialling organic varieties at the centre. “There is a shortage of UK-grown organic apples and we have encouraged growers to develop this, but they are wary,” says Sadler. “You need an organic mindset to convert and so we do not want to take any of our growers away from their focus on conventional if that is what they want to stick with.”
WFL operates two trial plots in Kent, and certain varieties may prove to have a niche place in the UK market in the future, according to Maxwell. “New Zealand is very keen on a variety called Envy, from the same stable as Jazz,” he says. “There are a few trees of that being trialled over here. Envy is very encouraging and there are also a few other varieties looking like they could be niche players in the UK, but they won’t go mainstream - whereas Jazz has the potential to do so.”
With new varieties coming to the fore, the English apple industry is once again expecting strong support from retailers and shoppers alike, and the supermarkets have strong programmes in place for 2008-09. “Consumer concerns about global warming have led to a huge upsurge in demand for local products - apples have been touched by this more than any other horticultural product,” stresses Barlow. “Consumers have a strong emotional attachment to English apples and the product has benefited from this.
“The multiples were quick to see this demand and have been very keen to work with the industry and develop new sales opportunities. Global warming concerns won’t go away and there will be greater increases in demand for local supply, so our position is good.”
But Barlow insists that strong partnerships between growers, retailers and marketing desks are essential to the future of the industry. “There must be a quid pro quo - if growers invest, they must be reasonably reassured that the retailers will pay the prices for the product and justify that spend. This is happening to an extent already, and we need to ensure it continues,” he says.
However, Barlow is adamant the apple industry must not be sucked into the price war plaguing other fresh produce categories. “There is a lot of competition in the high street at the moment. The established multiples are looking at the hard discounters and it is important that English apples are not caught up in a price war, so that returns do not fall to unacceptable levels. It is very important we don’t allow English apples to be involved in this.”
Many horticultural products have stayed at the same value for many years, says Barlow, so there is a mindset that it is hard to get prices up without consumers resisting the increase.
“Of course, the buyers will resist calls for price increases, but it is important our marketers are aware of the inflation in production costs. As an industry, we must get sufficient prices to justify further investment in the industry, in order to keep growers going.”
There has been a strong desire from the retailers over the last few years to sell English top fruit, agrees Sadler, but he believes this season will not be easy as others when it comes to retail opportunities. “The supermarkets are doing a lot of discounting and therefore things will be competitive. We have got to move the volumes of fruit, but also get good returns for growers - as well as offer consumers the right retail price.
“Growers’ costs have gone up and we know they need a higher return in order to re-invest into their businesses, but there is a fine balance between more money for them and the right retail cost for consumers. We have got to find a happy medium and the right price that enables us to move through the crop at the correct speed.”
Cost increases represent an enormous challenge for growers, with the prices of oil, energy, fuel, fertilisers and labour soaring. “These are all costs beyond our control and it is important there is an increase in returns to compensate them,” says Barlow.
Global warming is another hurdle for growers to leap over. “There has been a lot more water during the last two summers,” says Barlow. “Climate change is occurring and in the future we will need changes in varietal mix and better rootstocks to resist drought. We also need to look at the use of plant protection products and make sure the apple varieties grown in the UK have better natural defences.”
A distinct shortage of labour, caused by the well-documented restrictions on the Seasonal Agricultural Workers Scheme (SAWS), is also hampering growers, leading to fears in many cases that fruit could be left to rot on the trees without adequate numbers of workers to pick the crop.
“The results are as we feared,” says Barlow. “It has led to some growers being without labour and therefore getting behind in their picking - the danger is that, in due course, the crops will over-mature on the trees.
“A further concern with labour is that the workers who have come over this year have not been as productive as in previous years, and that reflects a trend we have seen in the past. When countries join the EU, workers are easy to recruit and the people who come are keen to work here. Then things improve in their own countries, their own aspirations get higher, and workers become harder to recruit.”
The quality of the labour supplied to growers this season has not been up to the standard of previous years, agrees Sadler, and that has made it very difficult to get the crop off the trees. “Growers are very concerned about this for the future. Most of the producers I have spoken to are disappointed in their labour force this season and are very frustrated. Five to six years ago, people from eastern Europe were hungry for work, but the economics in those regions have changed and now they have alternatives.”
Barlow adds: “We desperately need the government to reconsider SAWS, realise it is nothing to do with illegal immigration, and restore the scheme to how it was a year ago, so that we can recruit pickers from more countries.”
Growers are also increasingly concerned about the well-documented potential restriction of plant protection products, as part of proposals put forward by the EU to replace directive 91/414/EEC.
“Everybody understands the trend towards reducing pesticide usage and apple growers have been at the forefront of that, as they don’t want to spend money on expensive chemicals unless it is necessary,” says Barlow. “We aim for residues below the levels of detection.
“But the UK climate means apples are very vulnerable to attack from pests and diseases and we do need plant protection products. The current proposals are totally misguided, as no assessment of their economic impact has been undertaken. People are blithely suggesting that the chemical companies will come up with more products, but what if they don’t?
“All the products used on apples in the UK have been thoroughly tested and there is a huge safety margin of times 100 between the dose permitted and any effect the residue could have on mammals.
“It is very important that all the politicians in Europe are aware of this situation and the EU abandons this crazy route,” he adds.
EMR has done a lot of work to help growers reduce their pesticide usage, says Barlow. “It is fair to say the whole crop is marketed with very low residues and a considerable part of the crop has no detectable residues at all,” he says.
This season, WFL is using a wall chart to enable growers to implement a residue reduction spray programme. “We have a protocol in place for residue-free fruit that suits some varieties and now we also have this residue reduction programme - this looks at statutory harvest intervals alongside suggested harvest intervals,” says Maxwell.
“UK growers are looking to differentiate themselves and they understand that pesticides are at the forefront of the British consumer’s mind. We want them to think of UK apples as ‘clean’ - either residue-free or with reduced residues.”
EAP is also working to help growers who have been hit by huge increases in Horticultural Development Company levies and is working closely with Assured Produce and similar schemes, to make sure that demands on growers are not duplicated. “We want to make sure growers take care of the environment, treat their workers properly, etc, but that these demands are kept to an absolute minimum to meet the objectives,” says Barlow.
Investments into new techniques, including more intensive orchards and post and wire production methods, are also becoming prevalent in the UK industry. Barlow says: “Development of new stores, packhouses and grading facilities are critical. As the industry expands, it is vital that we have the facilities to store and pack the crop properly.”
“Our growers are investing in packhouses and new coldstores, which is very important because of the growth in tonnage of UK apples,” says Sadler. “There has already been good investment, but the expansion of the crop could outrun good stores. It is therefore important to get good returns for growers, otherwise they can’t re-invest.”
So in this challenging economic climate, ensuring growers get a good return but can still sell their crop at the right price for shoppers will be crucial. Sadler believes that although crop indications point to a good season, the next few months will throw up plenty of challenges and it “will not be an easy ride”.
The season has kicked off with a good focus on English product, says Maxwell, but it is vital that the product comes up to scratch for consumers. “The credit crunch will not avoid us,” he says. “The product has to be good enough and the quality right for consumers to keep buying it - we cannot just focus on country of origin.
“I think everyone has understood the situation we are in right now - costs have gone up, returns need to go up and there is also pressure in a very competitive marketplace,” says Maxwell. “You cannot be in this market and not be aware of the price pressures, and we have to generate the value to meet increased production costs. It is all about finding the right balance. I don’t think people will pay a lot more for British product over imported in this economic climate, so generating the value of English fruit will be much tougher this season.
“But I am optimistic - no matter what we do, the consumer is key. They like the varieties we have and the fact that they are grown in the UK, so we have two key components there that give us a fighting chance,” he adds.
Barlow remains confident that English consumers will continue to support home-grown apples - despite the credit crunch. “We have always been lucky that consumers have a strong emotional attachment to English apples, and that they have a strong desire for excellence in terms of taste, which we can deliver with our climate,” he says. “Consumers recognise that we have a product with outstanding taste, and that tallies with their emotional ties and concerns about global warming. As far as I can see, demand for English apples will continue to be strong. There may be some adverse effects from the credit crunch, but they will be minor.”
He adds: “I am largely optimistic for this season, although it is just so important apples don’t get caught up in all this price competition - so there must be strong promotional activity. I hope that all decent fruit growers with decent crops will make a reasonable return.”
BRAMLEY GETS A BOOST
The Bramley crop is set to be 10 per cent larger than last year, according to Adrian Barlow, who heads up the Bramley Apple Campaign. However, production will still be insufficient to meet demand for the cooking apple - especially bearing in mind the massive amount of promotional activity expected around the fruit when it celebrates its bicentenary in 2009.
“We are hoping that the good weather in the last month has improved apple sizing to give a slight increase in volume,” says Barlow. “Demand for Bramley went up 16-17 per cent last season, which was astonishing. This uplift in sales is due to continue this winter.”
The fruit’s bicentenary will kick off in the first week of February during Bramley Apple Week, and in March a stained glass window will be unveiled at Southwell Minster in Nottinghamshire, commemorating where the fruit was first grown in the country. A special anthem is being composed for the occasion and a whole series of further events will occur throughout the year.
“We are talking to a lot of different trade organisations to encourage as many as possible to arrange events to celebrate Bramley,” says Barlow.
The campaign will continue until the Lord Mayor’s Show in London in November, when a float will be sponsored in conjunction with the Worshipful Company of Fruiterers.
“This will all generate a massive amount of interest in Bramley - and that will impact on demand,” says Barlow.
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