Association of South Tyrolean Fruit Growers’ Co-operatives
"Expecting a much brighter start to the season"
The VOG Consortium started the season in autumn 2015 with a 10% reduction in its apple crop. The initially very strong demand and the recovery in prices compared to the previous year seemed to point to a successful season's sales. However, in winter and spring 2016 direct sales in North Africa and the Arabian Peninsula came to a halt:
“We now know the reasons for this shrinkage in the market,” says VOG Consortium Director Gerhard Dichgans, “but such an abrupt stop, especially in Libya and Algeria, was totally unexpected”.
In the 2015/2016 season, VOG sold a total of 520,000 tonnes of apples, compared to 597,000 tonnes the previous year. The increase in margins on sales was unable to compensate for the decrease in volume and turnover was therefore slightly below that of the previous year.
“For our growers, it was the second consecutive year in which the prices paid for the standard varieties continued to be disappointing, in some cases actually below production costs," Mr Dichgans continues. "Only the Club apples and the organic varieties escaped this negative trend. In fact, demand for these varieties increased throughout the year and they sold out early”.
Stocks of Golden Delicious apples are at standard levels and they are expected to sell out by the beginning of September.
Estimates for the 2016 European apple crop were published at the beginning of August, at the “Prognosfruit” congress in Hamburg. From a quantitative point of view, across the 28 EU countries a total harvest of about 12 million tonnes is expected: -3% compared to 2015. But this total figure conceals large differences between the various European growing areas. Poland bucks the trend, as it is forecast to be the only country to achieve a new record harvest of more than 4.1 million tonnes, +4% compared to 2015. In the rest of the EU28 states, the harvest is estimated at 7.855 million tonnes, a drop of 6% compared to 2015. Subzero temperatures and frosts at blossom time led to huge damage in some countries around the eastern Alps; Austria and Slovenia, have been very hard hit, with their crops decimated, but smaller harvests are also predicted in Slovakia, the Czech Republic and, farther north, in Belgium.
Once again the total for the Alto Adige region will exceed 1 million tonnes.
“The Consortium estimates an increase of three percentage points: a slight rise for the Gala, Red and Braeburn varieties, with Golden Delicious stable at last year’s levels and a drop of six percentage points for Granny Smith,” Mr Dichgans affirms. The only exception will be Fuji apples, with a 14% decrease, much lower than the previous year. A full crop of Club apples is expected, after a weak year in 2015.
From a quality point of view, the 2016 harvest is expected to be much better than the previous year: since crops did not suffer the same heat peaks as in summer 2015, this year’s apples are of good quality and texture, meaning that excellent keeping and a long shelf-life are expected.
For VOG Consortium members, harvest started on 10 August. The first shipments of Royal Gala are scheduled for the third week in August. “The markets are receptive, since availability of overseas apples is limited and almost sold out,” states the VOG Director. "Demand for new crop Gala is very lively, not only in Germany and in the Scandinavian countries but also throughout the Mediterranean area, which has already sent in its first orders.”
“This year, Poland’s bumper crop will once again be a critical factor, for both Polish farmers and western European producers, who will feel the squeeze on prices. Other negatives will be the consequences of the Russian embargo and of the financial crisis hitting some of the main importing countries in North Africa.” On the other hand, the euro/dollar exchange rate may encourage exports to markets around the Mediterranean Sea and further afield. In recent years these countries have become strategic markets for Alto Adige apple distributors.
“The demand for fresh apples at the start of the season is high. Following a season that, for various reasons, failed to come up to the expectations of consumers and customers," Mr Dichgans explains, "this year, thanks to the excellent quality of fruit, I am confidently expecting a much brighter start to the season. Moreover, since North Europe will harvest later this year, Alto Adige apples can gain space in the market over the coming weeks.”
Things are also looking good for the crop of new Club apples. “Last year, supplies of Jazz®, Pink Lady® and Kanzi®” finished a month ahead of time," says Mr Dichgans. “This year, we are able to guarantee all the volumes our customers require and plan a full season's deliveries. And for the Envy® variety, the VOG Consortium will be doubling its crop. This variety was presented for the first time in Italy and Spain last year, and it had a considerable success, so much that clients are already asking when it will be possible to place their first orders. The season just getting underway will not be easy, but it offers new opportunities,” VOG Director Dichgans concluded.
For more information:
Sabine Oberhollenzer
VOG
Tel: +39 0471-256722
E-mail: sabine.oberhollenzer@vog.it