First place in the popularity game
Despite the successful sales, the apple branches are suffering all over Europe from the effects of the trade sanctions against Russia and the oversupply, caused by the record harvest in 2014. David Eibel, managing director of Obst Partner Steiermark GmbH (OPST) said: "The Austrian apple is still a very popular apple. On the yearly lists of most popular fruits in Austria the apple got first place. Unfortunately we have the apple crisis, which is closely linked to the trade sanctions against Russia, it hit us hard just as in many other countries."
David Eibel, managing director of Obst Partner Steiermark GmbH (OPST)
"Political development will be crucial"
The current market and price situation is not satisfactory for many farmers and companies. "If I had to describe the situation, I would say it is not good or bad," explains David Eibel. The sales of the stocked apples, of the farmers who joined the organisation, is making progress according to the director. "We are right on track and cannot complain." In the new season there are no fundamental changes to be expected in the Austrian market situation : "On the one hand, the political situation between Europe and Russia plays a role and on the other hand it is crucial how the upcoming harvest will turn out. And on both issues no one can make a sensible and truthworthy statement."
New markets in the Far East
The Russian embargo meant that an important market has been closed for many European producers. "To compensate for the loss of that sales market we have sold more goods than normal in North Africa," says David Eibel, "We are currently looking for other new markets, in the Arab countries as well as China and India. Unfortunately, the prices are not really attractive." The reason for the low prices is an oversupply of apples on the markets worldwide.
No competitive advantage through minimum wage
"Germany is one of our strongest export markets," said David Eibel. In Germany, this year a minimum wage law will come into effect. Many German producers are expected to deal with higher production costs. The Austrian company does not believe that there will be a competitive advantage over the German producers: "It's hard to say whether we will obtain a competitive advantage. German consumers find locally produced food extremely important."
"We still see room for improvement"
Although David Eibel is satisfied with the sale of all apple varieties he still has some hopes, "I wish that we could get a better price for the apple variety Golden Delicious.” According to AMA, the sales of this variety, Golden Delicious, is quite slow at the moment. "Late April, early May is the time of the Golden Delicious," explains the managing director, "We still have enough apples in stock and count on improvement in sales and in price."
David Eibel
OPST Obst Partner Steiermark GmbH
Wollsdorf 154, 8181 St. Ruprecht / Raab
Tel. +43 (0) 664 884 18 800
david.eibel@opst.at
www.opst.at