The U.S. is still the fourth largest supplier of apples to the UK. With the UK apple harvest in full swing, a number of promotional events and campaigns are in operation to help support the marketing of the domestic crop. However, with limited storage capacity, the UK remains reliant on imports to meet the market demand for apples. U.S. apple exports to the UK increased by 13 percent in the most recent marketing year, despite some changes to phytosanitary issues for third country suppliers.

Domestic Apple Promotion

The current UK apple harvest is reported to be benefiting from a variety of promotions. An array of media campaigns and in-store marketing activities has been rolled out to coincide with the increased availability of domestic apples on supermarket shelves. In previous seasons, the UK top fruit industry has been critical of the lack of support offered by the major supermarket chains. However, leading retailers have made commitments to promote British produce. Market leader Tesco is using point of sale materials to flag UK apples in stores. The UK’s third largest supermarket chain, Sainsbury, feature English apples in their latest TV advertising campaign. In addition, a number of local events took place last weekend as part of the National Apple Day celebrations to highlight regional apple heritage at venues across the UK.

Trade media reports suggest that the visibility of the current promotions has helped to strengthen relationships throughout the supply chain. Although sales figures are not available, there is confidence that the promotional activities will help boost domestic apple sales in both the short and long term.

Import Reliance Continues

Despite the current coverage given to English apples, the UK remains reliant on imports to meet domestic demand for apples throughout the year. Total imports of apples increased by over 6 percent in MY2004 to 517,558 MT. The key suppliers to the UK are France, South Africa and New Zealand. Collectively, they typically supply approximately two thirds of the apple volume entering the UK.

The U.S. has traditionally been the fourth largest supplier to the UK market and U.S. apple exports to the UK have increased dramatically over the last two seasons, according to the latest trade data. MY2004 shipments totaled 34,170 MT (the UK marketing year runs from July 1 through June 30). This represents a 13 percent year-on-year increase and is more than 50 percent greater than the volume recorded in MY2002. Shipments in MY2004 were at the highest level since MY1998.

The relatively high average price of U.S. shipments entering the UK continues to reflect the premium positioning of U.S. apples in UK retail outlets. In value terms, U.S. apple exports to the UK increased by 30 percent in MY2004, generating revenues of $46.1 million for U.S. shippers.

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