Next week, apples grown in Lleida will be shipped to India for the first time, as the opening of the Indian market for both Spanish apples and kakis took place just two weeks ago. Kakis will still have to wait until the next campaign, because the current one is already coming to a close. The creation of this new trade route has been possible thanks to the joint work for many months of Afrucat, the Ministry of Agriculture, MINECO and FEPEX.
Although India produces and consumes large amounts of apples, it has a notable lack of infrastructure and a weak cold chain, which makes the country a strong importer with much appreciation for foreign brands.
"Initially, the fact that the Indian market is so brand-oriented appeared as a major challenge for Spanish apples, which do not have any established brands. The United States is carrying out very strong promotional campaigns for its brands with large investments," explains Manel Simon, manager of Afrucat. However, he stressed that "Spanish apples will compete with an advantage thanks to their high Brix levels, as Asian markets really appreciate sweetness. For this reason, with the exception of the Granny Smith, which is more sour, all varieties will be fit for this market."
With the opening of the Indian market, there won't be any borders for Spanish apples in the markets of India, Hong Kong and Singapore. These three markets, the gateway to the Asian market, were the subject of a study conducted in 2014 by Afrucat's Internationalization Committee, which organised a trade mission to Asia last September. The main features of these three markets are their large populations, the large number of middle class people with a good purchasing power and the overall appreciation they have for fruit, which in India is even considered a precious gift at big celebrations.
India's apple imports amount to around 200 million kilos per year, with China, the United States and Chile as its main suppliers, with 75, 59 and 47 million kilos exported, respectively.
For years, large European apple producers have also been present in this market through bilateral agreements, although with very small volumes. The ranking is topped by Italy, with about 4 million kilos, France with 2 million, Belgium with 1 and Poland with about 0.2 million kilos.
Simon points out that this is good news for the Spanish production, since, on the one hand, it is a closer market than China and a very large consumer of fruits and vegetables, and also because, according to different sociodemographic indicators, its population will become greater than China's by 2020.
Moreover, exporting apples to India will also establish trade relations for the shipping of more stonefruit, which, according to Simon, "has more potential for export. Our challenge in the future will be for Spanish apples to become more appreciated in the domestic market. We do not produce as much as to need to rely on many foreign markets," he points out.
For more information:
Manel Simon
Afrucat
T +34 973 22 01 49
marqueting@afrucat.com
www.afrucat.com
www.fruita.cat
For more information:
Manel Simon
Afrucat
T +34 973 22 01 49
marqueting@afrucat.com
www.afrucat.com
www.fruita.cat