In November this year, Ideafruit UK will celebrate ten years of supplying the UK with topfruit along with other commodities. The subsidiary of South Africa-based Ideafruit is, says David Peachey, its managing director (right) a flexible, low cost, hybrid supply model, providing category management benefits.
From their inception they disrupted a scene traditionally dominated by a few big exporters, he continues, and they've been experiencing rapid growth since by bridging the gap between retailers and growers with volumes from their own orchards with fruit from grower partners around the world.
An annual two million 12.5kg cartons are supplied to UK retailers, clients in the slice & dice sector, and, at times, to the wholesale market. "We work closely with UK growers to make sure that the transitions between seasons are as seamless as possible."
Peachey remarks that emerging markets have changed the dynamics of the marketplace in the UK. "There are certain areas in the world that will pay a premium for very highly coloured fruit. This means that growers from around the world have more options for their fruit, and we have seen less of the premium-coloured fruit and varieties coming to the UK. If we look back ten years ago, a lot of the markets available now were not being exported to. Those emerging markets now have a population with more disposable income, so more people are looking to buy fruit, hence the marketplace is becoming much more competitive."
New Zealand has adapted by starting to remove some of the varieties it shares with South Africa – Braeburn, Pink Lady, and to an extent, Gala, and concentrating on high coloured club varieties that can go to the Far East for a premium price. "New Zealand also struggles to compete with the South African cost chain. In years gone by, the UK was a major market for New Zealand apples, but their subsequent decline has allowed South Africa to cement its place as a key growing partner to UK retailers," he says.
In consequence, the demand for high colour has dissipated in the United Kingdom. The full-red Flash Gala, sought-after in Asia and the Far East, doesn't really appeal to UK buyers.
Apple arrivals pick up steam
Whilst South African pears have been in the market for a few weeks now, apples have only just started to arrive in larger quantities. "Normally, the market is waiting for Braeburn to arrive. However, our start date on imported Braeburn has been delayed due to higher UK stocks. This becomes problematic when the only real market for Braeburn apples is the UK and Germany. The other issue we have when it comes to Braeburn is that the market is only looking for a thin slice of the fruit available in the bin. This makes it difficult to achieve sustainable returns for the growers."
That is why, he continues, globally Braeburn is being pulled out, "and we may very soon see Braeburn with only limited availability in stores."
On pears, the main variety to come into the UK from South Africa remains Packham. Certain retailers require blush pear varieties, but again, he says, a good blush pear should achieve better grower returns elsewhere than in the UK market.
Next week, Ideafruit UK will take receipt of the first Pink Lady apples from South Africa, three weeks later followed by the first Chilean Pink Lady apples. He notes that the position in Pink Lady has changed greatly over the last few weeks, with the European crop ending abruptly and the demand for South African fruit which is, he says, "soaring"..
"To ensure our customers have fruit on the shelves twelve months a year, we work closely with our growers from across both hemispheres and currently partner with growers in eleven different countries. This gives us a great insight into how the seasons are shaping up and puts us in the best position to manage the crossovers of the seasons."
As well as UK retail, Ideafruit also supplies to the food processing sector. The slice & dice market takes primarily Pink Lady apples. "I think one of the surprising things we see is that in tough economic conditions, club varieties remain strong. Something like a Pink Lady has very good penetration, and it's still growing."
"As always," Peachey observes, "there are some challenges ahead this season, but we remain optimistic that availability and general outlook for 2025 is positive."
For more information:
David Peachey
Ideafruit UK
www.ideafruit.co.za