Things are looking good in the UK top-fruit sector right now, at least from a sales perspective.
Strong growth in sales over recent years, what stands to be the largest crop of dessert apples in this year’s harvest, and confirmation from the FPJ Big 50 Products that dessert apples are the UK’s favourite fresh fruit or veg product combine to put a rosy glow on the industry.
James Simpson, MD of top-fruit firm Adrian Scripps, tells FPJ: “UK consumers want English apples, and the industry has responded with young orchards now coming into production to meet demand. There is considerable interest and talk about the increasing intensity of orchards and the adoption of more efficient and economic production techniques. Retailer competition on the high street is always an area of discussion, and it is clear growers have to understand what retailers are trying to achieve to help them deliver.”
Nevertheless, it’s not all sweetness and light. The National Living Wage increase looms on the horizon, and as Paul Mansfield, MD of Mansfields, says: “We grow, pick, transport and store more apples than anyone else in the UK, packing them ourselves too. Wages are our largest cost base, so coupled with the market deflation in fruit returns, this represents a real challenge. The question is, ‘how can we automate the process further?’”
According to Mansfield, the top-fruit season is slightly late this year, although the quality of fruit is reportedly looking good.
He adds: “We had a period of rain that held us up a little bit, but we are back on schedule now with some better weather, and are very happy with the fruit entering the stores. We are picking to forecast and quality and size are good.”
Simpson notes: “Hail seems to be an increasing problem over recent years, and this season was no exception. Many areas were hit by early hail storms that damaged the fruit in May and early June – some later storms devastated whole orchards and even farms. The warm early summer followed a very good blossom period, which was beneficial to most top-fruit growers, but August was a disappointment with cooler, wet, dull weather.
“Having said that, fruit size and quality looks very good at this stage.”
Luckily for Waitrose suppliers, the retailer is introducing a line of weather-blemished pears from its British farms to help growers shift the product.
However, fears surround the number of home-grown Bramley apples that will be on the shelves long term into the new season.
Despite this product – which accounts for around 95 per cent of cooking apple sales – enjoying boosted sales to multiples, something which triggered an increase in consumption in turn, English Apples & Pears chief executive Adrian Barlow is fearful that there will be a “significant reduction” in volume due to inclement weather in key production regions in England, along with Northern Ireland.
This season, Simpson expects to see English Gala and Braeburn increase in volume with retailers due to their popularity with consumers, as well as growth in newer apple varieties such as Kanzi. But, he cautions: “There are a number of fledgling brands or apples trying to establish themselves on the high street. Competition will be tough, and retailers will be reducing product lines across the whole of fresh produce in an effort to manage cost by driving the more profitable lines harder, and removing those lines that do not contribute.
“The breadth of the offer to consumers will reduce, but this should see increases in volume for the remaining core lines, which effectively form the vast majority of the business for suppliers. This should also help with a more clear and understandable offer for consumers.”
The view on the ground is that retailers are likely to be delivering a more consistent low price over isolated deep promotions this season.
Looking even further ahead, Mansfield already has one eye on the impact the likes of new online distributors of fresh produce such as Amazon could have – he believes it has the potential to have a “significant impact on the industry”. Alongside this, Mansfield also expects emerging export markets and automation to further contribute to the changing nature of the top-fruit category.
Simpson, meanwhile, expects to see trayless flow-wrap packaging continue to increase, with many retailers picking it as the preferred pack option: “Presentation is key and there are clear benefits to this,” he says.
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