With the sunshine of the past few days, thoughts naturally turn to summer. For Belgian top fruit, it also means the final months of the season have begun. It is a season that started with considerable quality differences but has since recovered well, observes Christophe Van Haelst of VHM Fruit Trade. "Supply and demand are currently well balanced. If everyone continues to trade sensibly, we can carry through the last few months at a nice, stable level."
© VHM Fruit Trade
Quieter, he says, it is not getting any quieter, at least not yet. "It is not like things are slowing down now that it is a few degrees warmer. The market remains quite stable, which means it is still quite busy. That in itself is positive, because everything aligns well. I do not expect prices to rise much further, but neither do I expect them to fall. So we will probably continue working around this price level until the end of the season. Provided nothing unexpected happens, of course, because you never know in this world."
"Growers might have hoped for slightly higher prices, but for the trade, this is a comfortable level to work with. Customers can also operate well at this level. Prices should not rise too much either, because then you see potential buyers dropping out, which in turn makes it more difficult to clear all volumes in time for the new season. At the current level, everything is nicely balanced. The ideal scenario is a stable price where everyone can earn a living."
First pick to market
So, how are stocks holding up towards summer? In the first few months, there were still some quality issues due to plots being picked too late. "By now, everyone is in the first picking, and the quality is good to very good," Christophe confirms. "In Belgium, the quality is really strong at the moment. I do hear that in the Netherlands, some batches are dropping out now and then, but that seems to be the exception rather than the rule. In general, good pears are being sold now, so I do not foresee any further problems."
© Van Haelst Fruit
"In terms of volume, there is still sufficient product available. If we maintain this price level, we will not see surpluses, but neither will we face shortages. We still have about three to four months to go until the new harvest, so enough product is needed for that period. There is sufficient stock, but certainly not so much that it becomes a concern."
Stopped a month earlier to China
With its Deliscala brand, VHM Fruit Trade is also increasingly focusing on exports to China. This year, the Chinese market again proved to be a growth market, but due to unrest in the Middle East, plans have changed slightly. "Originally, the plan was to continue until the end of April, but as a precautionary measure, it was decided to stop about a month earlier. That decision was mainly driven by uncertainty, not by concrete logistical problems."
"Indeed, we have not experienced any real issues with exports to China," he explains. "Transport costs may increase slightly due to higher oil prices, but that is only a small part of total costs. For the time being, we are experiencing little disruption. At the same time, it remains difficult to look ahead. With the new crop still several months away from the market, it is too early to predict how the situation will develop. Global conditions can change rapidly, both positively and negatively. Any improvement in key trade routes, such as through the Suez Canal, would be immediately beneficial."
© VHM Fruit Trade
"An important starting point is that turmoil is not a sound basis for decision-making. It is wiser to approach the situation in a sober and positive way and to anticipate, where necessary, without panic. Even under current conditions, there are no immediate obstacles to exports to China, precisely because logistics routes have been flexibly adapted."
Positive outlook
As for the new crop, Christophe remains positive. "It looks promising for now. We have had good blossom weather, and no frost is forecast in the coming week. There is always a risk of frost until early May, but the most critical period seems to be behind us. The outlook is good, with favourable temperatures. In short, the old crop is likely to run out smoothly, and for the next season, everything appears to be on track. That is an excellent starting position," he concludes.
For more information:
Christophe Van Haelst
Van Haelst Fruit / VHM Fruit Trade
Kieldrechtsebaan 85
BE-9130 Verrebroek, Belgium
Tel: +32 (0) 3 336 16 47
[email protected]
www.vanhaelstfruit.be
