New Zealand's apple exports are reported to be down significantly for the time of year compared with previous campaigns, with exporters having to wait for a larger volume of Chilean fruit to clear in North America and for Chilean and South African fruit to move through the European market.
Industry association Pipfruit NZ reported that the country's Royal Gala apple exports to the beginning of May were around 10,000 tonnes or 555,000 tray carton equivalents (TCE), behind any of the last four export campaigns.
Braeburn exports, meanwhile, are also underway and were reportedly some 500,000 TCE below last year's figure in Europe as of the end of April.
According to the association, Chilean Fuji exports are running later than in the past few years, while Chilean Braeburn shipments are 'still slow' and around 10 days behind the volumes exported by the same stage in the past two years.
The group also said South African stock updates indicated that the country's total apple export volume was down 15.2 per cent on 2009, something Pipfruit NZ attributed to recent hot weather.
South African Royal Gala and Braeburn exports are down 21 per cent and 13 per cent respectively, the association said.
Market demand
Pipfruit NZ has also offered an insight into the current state of its key markets, reporting 'limited demand' for New Zealand Royal Gala in North America.
'However, the US crop will largely be gone by the end of May and June/July look promising,' a spokesperson for the group said.
Chilean imports into the US and Canada are understood to be at levels significantly higher than in the previous two years (70 per cent up on the East Coast and 122 per cent on the West Coast), although a lot of their volumes are reportedly in 100 count.
'Maximum pricing for Chilean fruit is currently around US$24,' the spokesperson added. 'Some NZ imports are being sold around US$30. Better prices (US$35+) will be achieved by waiting.'
Meanwhile, a slight downturn in the summer fruit forecast across the European Union counts as a positive for New Zealand's apple exporters looking to sell their fruit in the region.
Royal Gala sales in the EU are progressing normally, the Pipfruit NZ report suggested.
'Considering that there is a lot less Southern Hemisphere fruit in the market this year, that is a very good thing,' the spokesperson said. 'Northern Europe is predominantly selling Chilean Royal Gala and the UK is mainly stocking South African fruit.
'Some retailers are stocking New Zealand Royal Gala and some are waiting for Chilean stocks to run out. Importers are patiently waiting for this to occur as the price difference between the origins is too great.'
With the NZ dollar rising against the euro, there has been some talk within the New Zealand export fraternity of pushing for higher prices. However, Pipfruit NZ warned against such a move.
'Supermarket margins have already been squeezed to accommodate New Zealand Royal Gala and any further increase is unrealistic. Exporters of late shipments of Royal Gala will be looking at other markets now. Chile may send more to North America.'
Braeburn sales in Europe, meanwhile, are too slow for the stock, according to Pipfruit NZ.
'This will delay the Southern Hemisphere season perhaps until early June, but with lower imports the market should still be in balance,' the spokesperson observed.
In Asia, finally, Pipfruit NZ said the market was 'quite active' generally as demand had increased and exports had fallen.
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