New Zealand-based kiwifruit marketer Zespri has revealed that the deteriorating economic situation in Europe has led to a fall in consumption of fresh produce among consumers, particularly in the UK, Spain, Germany, Italy, Belgium and Luxembourg.
However, despite the drop in fruit sales – which is as high as 15-20 per cent in some European countries, the group said – sales of Zespri Green Kiwifruit have bucked the trend in Europe, growing 6 per cent on the 2007 season at 43.8m trays. Zespri Green Organic sales have fallen 2 per cent to 1.3m trays.
Zespri said that despite a strong showing in 2008 Europe continues to be a difficult place to maintain good sales, as competition increases and the market becomes 'completely diluted'.
'Chilean kiwifruit is only just being emptied from retail, a reflection of the increased targeting in volumes to Europe, resulting in a complete dilution of the traditional marketing window Zespri once enjoyed,' the group noted in its Kiwiflier publication, also pointing to the increased availability of Italian, French and Greek kiwifruit across Europe.
Meanwhile, the group has reported that planning for the 2009 season has already started, with the group preparing strategies for both a normal season and one involving a downside as the global economic slowdown continues.
'As we close out the 2008 season we are all turning our attention to the 2009 season, particularly in these extraordinary economic times,' said Zespri's newly-appointed chief executive officer Lain Jager. 'We have seen a massive erosion of wealth in financial and housing markets globally and combined with a sharp tightening of credit this is leading to a sharp slowing of consumer spending.
'One of the characteristics of the current global financial situation is the extreme volatility of markets, so the reality is that the impact of food and, more specifically, fruit markets next season, remains unclear,' he added.
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