CEO Gerhard Dichgans:
Positive conditions for 2015/16 VOG apple season
These two factors have brought down prices in every European market, both in production areas directly affected by the embargo, such as Poland, and in competing production areas that feared an invasion of Polish apples in their target markets.
This start to the season has nonetheless had a positive effect: apples have been available to consumers at lower prices, which has led to a general increase in apple consumption in the major European markets.
Thanks to this turnaround, which is essential in conditions of abundant supply, the situation has gradually normalized: the harvest surplus has been steadily disposed of. In early June, for the first time this season, European stocks of apples were lower than last year. While stocks are being rapidly disposed of, prices are simultaneously rising. This trend began with Gala apples in January and has continued with the red and bicolored varieties since April.
Consequently, all the right conditions are in place for a good start to next season, which will certainly be less prolific than the current one. Official production estimates for 2015/16 will be presented as usual at Prognosfruit, the annual conference, which will take place this year from 5 to 7 August in Meran.
Gerhard Dichgans, CEO of VOG, explains that, “Thanks to a particularly positive April-May period, the quantity of stock in our warehouses is comparable to last year, with a surplus of only a few hundred tonnes. This is an exceptional result when one considers that we had to deal with a record harvest in Alto Adige, 23% larger than last season.”
“I feel optimistic about the coming weeks. Only 13% of the harvest remains to be sold and given the rise in prices over the last two months, I believe that the end of the season will be marked by a renewed sense of optimism. All the indications are that next year, which will certainly be less prolific, will get off to an auspicious start.”
As for individual varieties, Gala stocks were already used up by early April, while Granny Smith, at the current rate of sales, will be available until the beginning of July. Fuji, Red Delicious and Braeburn will also be available until the second week of July. Kanzi and Pink Lady are almost finished: the remaining few tonnes have already been reserved by customers and will be sent out in the next few days.
Dichgans commented that, “There are still Golden Delicious apples remaining, in similar quantities to last year, which as usual will last until the beginning of next season.”
“March was the month that marked the turnaround in terms of prices; Golden Delicious was the last variety to be affected by this trend reversal. I still believe that prices might rise over the coming weeks: demand is high and now will focus primarily on Golden Delicious apples, which is the only variety available in sufficient volumes.”
An additional factor has had a positive impact on Italian and European apple sales in the second half of the 2014/15 season: the lack of competition from apples imported from the Southern Hemisphere. Dichgans highlights that, “According to the latest data, there was a 30% fall in imports compared to last year, and prices have risen, aided by the unfavourable exchange rate of the dollar. So there is still time for our apples to do a final sprint.”
Finally, both VOG’s organic apples and Club apples have performed well: Pink Lady, Kanzi and Jazz have all produced excellent results, only marginally affected by market turmoil, continuously maintaining prices that are only slightly lower than last season.
For more information:
Sabine Oberhollenzer
VOG
Tel: +39-0471-256722
Email: sabine.oberhollenzer@vog.it
Alice Camellini
Fruitecom
Tel: +39-059-7863894
Email: alice.camellini@fruitecom.it