Italian apple exporters struggle with some challenges in the Asian market and several brands have suffered the consequences to various degrees. Kevin, the Asian market manager at Omnifresh™, shared his insights into the current market conditions for Italian export apples as well as the market trends for the next few weeks.
Hong Kong supermarkets are currently selling Ambrosia™ apples
Kevin first looked back on the Italian apple production season. "The weather conditions in Italian apple orchards were excellent this year. The apples are larger than last year and the product quality is exceptionally good. However, many external conditions have made Italian apple export to the Asian market a struggle," said Kevin.
"First, in the last few months the shipping prices between Europe and Asia skyrocketed, and shipping is often delayed as well. This affects the speed of our sales. The logistical problems have a huge effect on apple export. Second, consumer power has declined in Asia as a result of the pandemic. There is less demand for high-end products."
"Although the Italian apple export to Asia has not been as expected, we enjoy great popularity in the European market. We have adjusted our retail strategy on the basis of these market changes. We have reduced our export volume in Asia and focused instead on the European market and the Middle East too," said Kevin.
Kanzi® apples are carefully selected and packaged in the factory in Italy
The apple season in the Northern Hemisphere is now over, and the season in New Zealand has already begun. "Looking at the current market, we can see that the Chinese apple reserves have not been sold out. There is still a large volume in storage. This will undoubtedly weaken the position of import apples in the Chinese market, and put pressure on apple exporters in the Southern Hemisphere. China is one of the largest export markets for New Zealand. If Chinese market demand weakens, then the supply season in New Zealand will lengthen, although some of the apples destined for China will be diverted to the Southeast Asian market," explained Kevin.
"The New Zealand apple export season regularly runs until October and then the apples from the Northern Hemisphere arrive on the market again. Italy does not currently export apples to China, so the impact of the extended apple export season in New Zealand will not affect Italian apples in the Chinese market, but it may have an impact on the sales conditions of Italian apples in the Southeast Asian markets."
"These market conditions do not apply to club variety apples because their flavor is outstanding and this apple variety is a guaranteed favorite with consumers. However, some other large-scale apple varieties may feel the consequences of the extended apple export season in the Southern Hemisphere," said Kevin.
Italian apple orchard produces Japanese Yello™
When asked about their product varieties, Kevin replied, "we primarily produce Ambrosia™, Kanzi®, Yello™, and CrimsonSnow® in high-end orchards, and we promote these premium apple varieties in Asian markets. We have already received great feedback from consumers in Hong Kong, Malaysia, and Singapore. The flavor of Ambrosia™ is particularly sweet, and quite popular with Asian consumers."
Omnifresh™ was established in 2018 by RK Growers, Rivoira, and V.I.P. Valvenosta, three major apple companies in Italy. The three companies together produce a total of more than 400,000 tons of apples per year.
For more information:
Kevin Au Yeung - Asian Market Manager
Omnifresh™ Apple
E-mail: Kevin.auyeung@rkg.it
Website: www.omnifreshco.com