Frank Döscher, CEO of Elbe-Obst Vertriebsgeselschaft mbH
Raising of market prices not feasible
Price-wise the situation remains tense, especially for the producers. “We can put through some increases in price, however, unfortunately only on a small scale”, reports Frank Döscher. “The price situation for producers however, is not satisfactory any longer. They still earn too little. We are aware, that there is some room for upward expansion. Unfortunately, it is currently not feasible on the market”. The recently much improved sale of apples can, according to Döscher, mostly be related back to a good fall- and winter sales campaign with lots of discounted prices.
Partial success in realization of seasonal goals
However, price promotions don’t only have positive effects. Frank Döscher delineates: “a concomitant effect of such price actions is unfortunately, that one has to sell his produce at reduced prices. Because of our seasonal goal to reduce the large warehouse stocks, we had to accept this circumstance”. Döscher’s clear objective for the second half of the season was: create a better starting position from February until July. “And we have unfortunately not yet succeeded with the prices. But that is currently a worldwide problem,” the CEO explains.
Routine pays off
On the Polish market, the warehouse stocks also showed strong improvement, despite the continuing Russian embargo. According to Döscher, this is mostly to the credit of the routine of Polish fruit growers: “Poland has had the huge advantage that they were already well underway on the export markets, thanks to strong harvests in the previous years. Because of weaker harvests in the past few years, German apple producers were less active there. “For a long time, our target markets were Russia, Scandinavia and England. Now with the omission of Russia, the past few years in fall, we’ve had the problem that the situation on the market has completely turned”, Döscher portrays. “Suddenly, we had to strongly accelerate once more”.
Question mark at wares from overseas
From the backdrop of a good European harvest and adequate warehouse stocks, Frank Döscher wonders what will happen with apples from overseas in the near future: “Will the apples from overseas be well received? Do they have a chance price- and quality-wise? We don’t currently have the theme of price risk, but foreign exchange risk. If the European produce stays this favourable and doesn't become much more expensive, the apple from overseas will have a problem positioning itself in terms of price. According to Döscher it is important that the current apple season does not end until the end of August.
“It still goes on!”
This season will probably continue into the next season. When one looks at the calendar, we should be able to continue delivering apples until the end of August”. For Frank Döscher, the current situation does not yet leave time to rest: “The season will continue for about five months. We are currently right in the middle of it and haven’t yet achieved anything.
We cannot yet lean back and say “We are out of danger!” It still goes on!”.
Frank Döscher
Elbe-Obst Vertriebsgesellschaft mbH
Bassenflether Chaussee 4b, 21723 Hollern Twielenfleth
Tel. +49 (0)4141 9531 854
fdoescher@elbe-obst.de
www.elbe-obst.com