Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber
Minimum wage and low prices lead to insecurity

Apple sales at a normal level

While the demand for apple are currently on a stable level, the apple prices are still very low. Bernhard Fuchs from Salemfrucht GmbH from Lake Constance reports: “Seasonal the sales of the apples are good and on a normal Level. But the prices are 40 percent lower than 2014.” The cause of this problem are still full stocks and missing key markets. The Russian crisis has still its impact. Poland, Europe’s biggest apple producer and main supplier of Russia, can’t sell his products to the Russian market.



Low prices and good sells
"The reduction of stocks runs normally. We don’t expect that we will not sit on huge stocks at the end." The fruit wholesale market from Lake Constance distributes among many other apple varieties also the Club Premium brand KIKU®. "The KIKU® Apples are doing well," says Fuchs, "But it has to be noted, that club varieties are also less a subject of market fluctuations. Less than the traditional apple varieties. However, we also noted lower prices for KIKU® apples. But about the KIKU® sells we can’t complain. The traditional apple varieties, especially Elster and Gala are increasingly in demand. The demand for all other varieties otherwise runs as far as normal."

Search for new markets is difficult
The search for new apple markets is difficult in the current situation. Bernhard Fuchs says: "Of course you look in all directions, but so do all other competitors. The problem cannot be solved overnight. We have our contacts and we speak increasingly with each other. But the current political unrest all over the world are making it also very difficult.”



Minimum wage will have a huge impact on the cost of the growers
Currently, the fear of the German legal minimum wage in the domestic agricultural sector is high. "You cannot really estimate the consequences yet," the merchant reports, "But we hear from the growers, that they fear that the minimum wage will significantly raise their costs. So far all the ambiguities are not eliminated." The minimum wage will have no impact on Salemfrucht. "We already pay the minimum wage," says Fuchs. However, he also believes that the minimum wage will make a significant difference for the growers: "The immensely time-consuming work that is done by the producers - one or two Euro more per hour and per worker is a huge difference for the grower. Combined with the current situation on the apple market it will have a devastating impact on the farmers!"

The growers are insecure
Continuing, Fuchs reports: "The minimum wage affects all growers with seasonal worker for the harvest. Whether in the apple, the asparagus and strawberry industry." Bernhard Fuchs is sure, that the rising costs in the future and the current low prices will reduce the investments of the farmers: “In this situation, everyone is insecure. A harvesting machine or a tractor is expensive. And nobody knows, what he can expect from the future.“ The wholesaler sees no signs of improvement in the future: “Currently there is a major guessing what will happen next. One year as this year is maybe okay but a second one? Some growers cannot afford the current year already."


Bernhard Fuchs
Salemfrucht GmbH
Anbau & Logistik
Alte Neufracher Straße 100, 88682 Salem-Neufrach
Tel: +49 (0)7553 9170 55
b.fuchs@seefrucht.com
www.salem-frucht.com