History is a constant reminder that solving global problems needs international co-operation, but when commerce is at its root this creates its own set of problems. The participants, even if they recognise the value of working together, all have their own different perceptions of the agenda.

Therefore there will be many who, while not questioning the well meaning World Apple and Pear Association (WAPA), may seriously wonder as to its effectiveness.

To be fair it is still in its embryonic stage. The world's largest producer China, which accounts for about a third of potential availability is yet to come on board.

But here at least progress seems to be underway. President Jacques Vanoye explains: “China has no national association, but we hope that it will join us, although at this stage we already have contacts which will help in the future”.

He believes that WAPA could soon take on the role of major lobbyist, because of the common position that everyone actually shares.

Highly respected, Vanoye helped mastermind the French Le Crunch campaign, increasing French apple consumption in Europe when in the 1970s the country's own national production was escalating at an unprecedented rate.

By its nature WAPA will always be a voluntary organisation, probably far more to the liking of independently minded US growers who have shown they are all too ready to call up their anti-trust law to protect their interests.

The fact that both vice presidents, Kevin Moffitt of the North West Pear Bureau and Chris Zanobini of California Pears, are Stateside, will at the very least ensure that WAPA gets a fair sounding on that side of the Atlantic. The fact that the third annual conference held in Cologne last August attracted observers from Denmark and Hungary also bodes well.

Nevertheless, the reality of the prevalent situation was spelt out somewhat bleakly by Dr Desmond O'Rourke, president of Belrose, Inc, publishers of the World Apple Report.

His latest issue estimates that in the last decade world apple production had risen from 40 million tonnes to 57mt, and is spiralling to hit 70mt by 2010

At a recent conference, O'Rourke painted a picture of an international industry which is in trouble of spinning out of control.

“It faces challenges from without in the growing public demand for alternative fruits,” he says.

Certainly there can be no disagreement on this count, and the commercial pressure that this competitive sector is likely to get greater.

While bananas have remained the main contender, they have been joined by pineapples, avocados, mangoes, kiwifruit, and a whole range of newcomers to Western European eyes.

It appears that in the US, each 10 per cent increase in fruits, other than bananas, has reduced the price of Red Delicious by about two per cent.

In the EU, each 10 per cent increase in imports of non-citrus fruits (including bananas) was associated with a four per cent decline in grower prices of dessert apples and a five to six per cent decline in grower prices of fresh pears.

The aspect which however must have sent a shiver down the spines of the audience was his perceived view of the effect of the newer ñ and what are believed to be more profitable ñ apple varieties themselves.

“The influx of new varieties may have weakened rather than strengthened industry returns at the grower level,” he claims.

“Promising strategies such as integrated fruit production, organic production, better tasting varieties or health benefits have not delivered the key ingredient of industry ñ profitability.

“Is it possible that after all these years, the industry still fails to understand what modern consumers want?” he asks.

If this is the case therefore who is to blame?

Certainly the industry may have lost some of its direction through major changes in the structure of marketing systems. Major forces such as Unifruco, and Enza which influenced international thinking on everything from new varieties, packaging and distribution have disappeared.

Now the emphasis is becoming more protective as more varieties are trade marked and retailers seek exclusivity.

“Collective-minded organisations that dominated the industry in individual producing countries in the past, have lost most of their clout,” says O'Rourke. “Independent packers, warehouses and marketers have combined into larger units with new joint ventures springing up across commodities, across countries and up and down the marketing system.

“Individual marketing firms are becoming bigger and would like to build their own superior branded products even though, in the past, multinationals such as Dole and Chiquita have had only limited success in branding apples and pears,” he claimed.

“No one knows how big an apple or pear marketer would have to become to support viable branded products.

“As an alternative the club marketing concept draws together leading producers, nurseries and marketers in a global alliance to create fully-fledged consumer products.

“This niche marketing strategy also reflects their belief that broader-based efforts do not deliver profitability at a time when interest in premium priced varieties, if not over taking traditional commodity apples such as Red and Golden Delicious, Granny Smith, and even Gala, Braeburn and Fuji, have or are in danger of loosing their lustre.”

Indeed most growers will confirm that talk at retail level is more about varieties such as Pink Lady, Cameo, the new Gala/Splendour hybrids, Honeycrunch, Tentation and Jazz. Time alone will tell whether these will increase their level of prominence or fade away after a brief period of exultation.

Meanwhile there is no doubt the industry is becoming more market orientated. Most people would also agree with O'Rourke that new alliances and partnerships, either directly with their suppliers or through category managers, are the new watchwords.

Research showed, he claims that more than half of retail stores say they are sharing decisions on pricing, advertising, space allocation and promotion of fresh apples with parties outside the store.

While O'Rourke believes that finding a common market strategy will be very difficult and it would be even harder to implement, this has not deterred WAPA from coming up with an initial package of ideas.

As Vanoye puts it: “We all have a role to play facing the world wide problem balancing supply and demand. We all also have to face competition from branded products like chocolate biscuits and ice-cream backed by large budgets, while we are very poor with our non branded products.”

As part of the harmonisation process Vanoye says there is a great deal to be gained from sharing information on stocks and forecasts which will give a strength to understand the market as the first stage towards improved profitability.

It also sees great value through introducing best practices to maximise the organoleptic or internal quality of fruit. More satisfied customers means more sales common to all member countries who will be presented with WAPA's findings this autumn.

At the same time WAPA is conducting a major survey of scientific literature documenting the health benefits of apples and pears so, based on credible information, nutritional values can be included in future marketing strategies.

“One must recognise the top-fruit industry has a middle and long term challenge in terms of possible erosion of demand, coupled with production factors, or should I say CA factors that could create over-supply, “ says Roger Manning, director general of the Chilean Fresh Fruit Association ñ Europe.

And he agrees a need exists for the apple and pear industry to properly address its future and the changing needs of modern consumers.

“WAPA could take a lead in organising think tanks to explore how best to combat these problems,” he says. “As well as bringing the industry together in conference in order that producers globally can promote the joint views from forums held in their own regions.

“A greater marketing initiative could be planned, but this would have to overcome many differing interests. Certainly a sharing of common views in terms of repositioning these fruits to create a greater appeal is essential and this has to be the most important role that WAPA can play.”

South African Richard Hurndall of the Deciduous Fruit Producers' Trust, the umbrella organisation, concurs: “Everyone knows there are limitations to what we can do, but we were still all encouraged that solution is being sought. WAPA can play an important role as a catalyst.

“Providing improved information which we can all take home and apply will help decision making, and there will be other valuable spin offs as we progress. We are already at the first stage of implementation which will lead to a better understanding of the health benefits of the fruit.”

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