South Tyrol-based consortium Vog, Italy’s largest apple exporter, has revealed its results for the 2015/16 campaign while also looking ahead to the new season.
The group said that 2015/16 was a 'difficult season' in sales terms, despite starting with high hopes in the autumn, with the campaign turning out to be 'much more complex than expected'.
Vog started the season with a 10 per cent reduction in its apple crop, with initial strong demand and a recovery in prices compared to the previous year pointing to a successful season. However, in winter and spring 2016 direct sales in North Africa and the Arabian Peninsula came to a halt.
'We now know the reasons for this shrinkage in the market,” said consortium director Gerhard Dichgans, “but such an abrupt stop, especially in Libya and Algeria, was totally unexpected.'
Last season Vog sold a total of 520,000 tonnes of apples, compared to 597,000 tonnes the previous year. The increase in sales margin was unable to compensate for this decrease in volume, and turnover was therefore slightly below that of 2014/15.
“For our growers, it was the second consecutive year in which the prices paid for the standard varieties continued to be disappointing, in some cases actually below production costs,' Dichgans continues. 'Only the Club apples and the organic varieties escaped this negative trend. In fact, demand for these varieties increased throughout the year and they sold out early.'
2016 season
Estimates for the 2016 European apple crop were published at the beginning of August, at the Prognosfruit congress in Hamburg. From a quantitative point of view, across the 28 EU countries a total harvest of about 12m tonnes is expected, down 3 per cent when compared with 2015.
This total figure conceals large differences between the various European growing areas. Poland bucks the trend, as it is forecast to be the only country to achieve a new record harvest of more than 4.1m tonnes, up 4 per cent when compared to 2015. In the rest of the EU28 states, the harvest is estimated at 7.855m tonnes, a drop of of 6 per cent when compared to 2015.
Once again the total for the Alto Adige region will exceed 1m tonnes: “The Consortium estimates an increase of three percentage points: a slight rise for the Gala, Red and Braeburn varieties, with Golden Delicious stable at last year’s levels and a drop of six percentage points for Granny Smith,” Dichgans noted.
The only exception will be Fuji apples, with a 14 per cent decrease, much lower than the previous year. A full crop of Club apples is expected, after a weak year in 2015.
From a quality point of view, the 2016 harvest is expected to be much better than the previous year – as crops have not suffered the same heat peaks as in summer 2015, this year’s apples are of good quality and texture, meaning that excellent keeping and a long shelf-life are expected.
For Vog Consortium members, the harvest started on 10 August. “The markets are receptive, since availability of overseas apples is limited and almost sold out,” said Dichgans. 'Demand for new crop Gala is very lively, not only in Germany and in the Scandinavian countries but also throughout the Mediterranean area, which has already sent in its first orders.
“This year, Poland’s bumper crop will once again be a critical factor, for both Polish farmers and western European producers, who will feel the squeeze on prices. Other negatives will be the consequences of the Russian embargo and of the financial crisis hitting some of the main importing countries in North Africa.”
However, the euro/dollar exchange rate may encourage exports to markets around the Mediterranean Sea and further afield – in recent years these countries have become strategic markets for Alto Adige apple distributors.
“The demand for fresh apples at the start of the season is high. Following a season that, for various reasons, failed to come up to the expectations of consumers and customers,' Dichgans explained, 'this year, thanks to the excellent quality of fruit, I am confidently expecting a much brighter start to the season. Moreover, since North Europe will harvest later this year, Alto Adige apples can gain space in the market over the coming weeks.”
Things are also looking good for the crop of new Club apples. “Last year, supplies of Jazz® Pink Lady and Kanzi finished a month ahead of time,' he outlined. “This year, we are able to guarantee all the volumes our customers require and plan a full season's deliveries. For the Envy variety, the Vog Consortium will be doubling its crop. This variety was presented for the first time in Italy and Spain last year, and it had a considerable success, so much that clients are already asking when it will be possible to place their first orders. The season just getting underway will not be easy, but it offers new opportunities.'
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