New Zealand’s apple exporters have reported that they have managed to weather the economic storm reasonably well this year and, thanks to strong quality and a crop that came in just under original forecasts, sales at the premium end of the European market have remained reasonably strong.
Ian Palmer, chairman of industry organisation Pipfruit NZ, told Newsline that the biggest challenge this year had been the size of the preceding Northern Hemisphere crop, which had coincided with falling consumer spending.
“In short, it is proving to be a challenging season for us, not due to the recession but due to the large carry-over of stock from the record Washington crop and large European stocks as well,” he explained. “I understand some of our Southern Hemisphere competitors have had some variable quality issues, which also does not help the market.”
By contrast, the quality of apples being shipped out of New Zealand had been among the best seen. “Braeburn this year was stunning at harvest and is turning out very well in the market,” he noted. “It is disappointing to see the market price in the EU being less than it should be.”
Sales to the UK, one of New Zealand’s primary European markets, have generally been good given the state of the country’s economy, although supply has been a little less than normal, Mr Palmer reported. In Europe, meanwhile, the recession has brought with it some challenges: “The EU was always going to be challenging due to stock levels, but we have still been at the premium end of the market with good quality,” he said.
Overall, the quality of this year’s New Zealand apple crop is being seen as “very good” by exporters, with overall volumes coming in just below pre-season forecasts.
On a variety basis, Cox volumes from New Zealand have come in under estimate due to cosmetic issues, Mr Palmer reported. Royal Gala volumes are expected to be “very close” to the original estimate with good fruit, while Braeburn is set to be under estimate by around 5 per cent, making it the second smallest crop for years and not much above last year’s record low. Quality, however, has been “outstanding”, said Mr Palmer.
“Jazz is also a bit below estimate due to some fruit drop prior to harvest, Fuji is around estimate, which is quite a bit up on average with good fruit,” he added.