Overall arrivals of kiwifruit from Chile are down slightly this year. Compared with the long term average, however, there has been an increase to the East Coast, with the West Coast seeing a drop in volume. Weather has been a factor in the slight decrease in volume.
"We've seen decent volume arriving to the East Coast, with an approximately 10 percent increase versus the five year average," said Roland Berndt of Sierra Produce. "Compare that with West Coast arrivals, which are down 15 percent over the same period. Overall volumes are down slightly."
Market weak, but normal
Despite moderate volumes, the market is flat right now, which suppliers say is typical for this time of year. The market tends to start dipping in April, which coincides with the first Chilean arrivals. By June, the market is usually at its weakest, before generally rebounding slowly towards Fall.
"We have seen regular movement, although price are low," Berndt observed. "The market is about at the bottom right now with no expectation of any rise in the next few weeks. Generally, the market improves by August, September with the introduction of controlled atmosphere kiwis. By the end of September, we stop shipping kiwifruit out of Chile. The reason we do so is because the California season begins in October and suppliers do not want to have sizeable inventories from Chile to compete with the domestic crop."
There is some good news for the Chilean season, with quality and sizing both good. "Sizing is better this year than last year when there was an abundance of smaller sized fruit," Berndt explained. "This year, the size profile is more spread out. Quality is also high this season."
Tough to promote during northern summer
During the northern summer, the kiwi category suffers as consumers have a greater choice of locally grown fruit. Therefore, this time of year heralds a slowdown in the market, with retailers reluctant to devote significant floor space for kiwifruit.
"Kiwifruit are not really a promotional item during the northern summer," Berndt noted. "You won't find any end-cap displays, for example, as there is not really a push to move any great volume. Even in the height of their season in winter, they are still not one of the top three sought-after fruit items in stores."
"We are starting to see a little more movement on clamshells and consumer packs," he added. "Every year, we see fewer kiwis sold individually and instead placed in packs."
Yellow kiwis are rising in popularity
While green kiwi demand remains steady, there has been a significant rise in demand for the yellow-fleshed kiwifruit. The yellow kiwis are enjoying stronger sales, but Berndt said it is mostly coming at the expense of their green cousins.
"The popularity of yellow kiwifruit is extraordinarily high," he said. "It has however, cannibalized some of the market share from the green Hayward."
For more information:
Roland Berndt
Sierra Produce
Tel: +1 (657) 229-6100