Kevin Moffitt, CEO of USA Pears.
"A big difference with Europe is that US supermarkets have large fresh produce sections," explains Kevin. The fresh produce departments are also the ones with the most rapid growth in floor space. "In new stores, more room is devoted to different fruit varieties." Just like apples, the pear season takes place in the autumn. In the months of September and October, supermarkets can offer up to eight different pear varieties. "The Green Anjou, Bartlett and Bosc are the main varieties; these are available almost all year round. Next in importance are the Red Anjou and Comice." When in season, the Starkrimson is added to the range. "Supermarkets aim to offer pears in different colours."
Imports to keep range availableUSA Pears acts as representative for growers in the North Western states of Oregon and Washington, which together account for 84 percent of the US pear production; about 380,000 tonnes per year. California cultivates 15 percent of the pears, about 12,000 tonnes, but most of this production is intended for processing. The remaining one percent is grown on the East Coast.
Pears are available almost all year round. The Green Anjou, which has the longest season, is available from September to July and the peak is reached between November and February/March, although in December there is a slight drop in demand. "It's the holidays. In that period, consumers are more interested in chocolate than in pears," laughs Kevin. In the off-season, the pears are imported. From mid-February, Argentina hits the market. At that point in the season there are mainly green and red Anjou and Bosc available.
Europe unsuccessful in the US
Imported pears have roughly a 15 percent share of the US market. Californian pears represent another 15 percent. The states of Oregon and Washington account for the remaining 70 percent of the pears.
Although Europe was given access to the US market, the impact of European pears is barely visible. "So far, imports have not been very successful," explains Kevin, "probably because the pears are not distinctive enough." The US retail does not expect yet another green pear on the shelf. According to Kevin, European pears have a greater chance for success on the Canadian market. "Canadian retailers often have six to eight pear varieties. Canadian consumers also eat more fruit than those in the US, and for Dutch and Belgian exporters, the Canadian east coast is relatively close."
Competition in Asia
Exports are important for the sector. Some 40 percent of pears are traded across borders. "These are large volumes for the growers. We need exports." In recent years, there have been many changes in the international market. Russia was the third market for US pears, only preceded by Mexico and Canada. With the boycott in 2014, the US lost a buyer for half a million 20 kilo boxes. That took its toll, but the impact was somewhat mitigated by the smaller harvests that followed. The stronger dollar is also not beneficial for exports.
In Asia, Americans are increasingly dealing with European competitors who are also looking for new markets after the introduction of the Russian boycott. China and India are promising markets, with a capacity for 120,000 and 300,000 boxes (of 20 kilos) each. The Middle East, and specifically the United Arab Emirates, is also an "interesting destination." The Emirates re-export 45 percent of their pear imports to countries in the region, including Yemen, Saudi Arabia, Egypt, Afghanistan and CIS countries.
Popular bananas take a toll on pears
The election of Donald Trump and the harsh words he had for international trade has created uncertainty. A wall on the border with Mexico, changes in NAFTA… "I hope it's just a negotiating strategy," states Kevin. "Much is uncertain and markets do not like uncertainty." And there is another problem. For the harvest of apples and pears, producers depend on a lot of migrant workers from Mexico, who pick the fruit by hand. Since the pear trees are on steep slopes and the trees are tall, automation is hardly possible.
"Our biggest competitor in terms of shelf space is apples," continued the American. USA Pears is committed to promoting changes in the layout of supermarket shelves. Ideally, Kevin believes that pears should be on the head of the aisle. "That is where bananas are often placed, but consumers will buy that fruit anyway. Pears are much more an impulse purchase." The popular bananas also take a toll on pears even earlier in the chain, in the ripening rooms. "It is not always clear if a pear is ripe," affirms Kevin. "Only the Bartlett changes from green to yellow."
Ready-to-eat and convenience
Consumers are often looking for a pear that is ripe and ready to eat. "That is the biggest hurdle for the sector: the pears’ ripeness." Because of this, USA Pears has organised the campaign: “Check the neck.” If the pulp at the neck resists slightly when pressed, the pear is ripe. Moreover, tests have been carried out with the ripening of pears. "We can ripen pears in exactly the same way as bananas," continues Kevin. The temperature and amount of ethylene needed are similar to those in banana ripening program, "but bananas are so popular that nobody wants to free some space for pears in ripening rooms."
The advantage of pears is that once the ripening has been 'triggered', the fruit can be refrigerated for transportation. The process then only continues when the fruit arrives to the store shelf. “We are making progress in getting ripe fruit on retail shelves. Currently there are 48 retailers in the US carrying conditioned pears. A 37% increase from the 35 retailers just five years ago.The ready-to-eat trend is thus not favourable for pears, but the convenience trend also has a big impact. "We have tested it with pear segments, but transport to New Jersey or New York takes five days." Consumers want the pears when they are ripe, but the fruit needs to be firm enough to withstand the transport process. This causes headaches as it is difficult to find the balance between fruit that is ripe enough to for consumers to enjoy but firm enough to withstand the shipping. . "That may be a key to boost consumption. We need to find the way to supply ripe pears to the consumer."
Consumption growthIncidentally, cutting pears has more downsides. In addition to transport, there is plenty of loss due to the fruit’s shape. "It is labour intensive to introduce the pears properly in the machine and prevent the loss of a large part of the pear. With apples, it is easier." Transporting the fruit in bulk to the east coast, where many pears are consumed, and cutting it there is possible, but fresh cut companies have been reluctant. . "They don’t see enough potential with pears yet compared to sliced melons and apples.. It is a difficult product."
All in all, pears enjoy a loyal following. Studies show that 15 percent of consumers buy 80 percent of the pears. "That means there is still a lot of potential to increase consumption, but in order to achieve that we have to overcome some hurdles." Studies have shown that Millennials are core pear consumers buying more varieties and more pears in general than the average pear consumers. Also among Millennials is there still room for growth; they perceive pears as authentic and appreciate the different shapes colours and flavours. By putting the fruit on the map also via restaurants, USA Pears hopes to continue boosting consumption.
Perhaps new club varieties will make it easier to overcome the hurdles that prevent consumption growth. Kevin is optimistic about the QTee. "The combination of Asian and European pear varieties results in a pear with an interesting flavour profile that remains crunchy. I think this one’s a winner."
More information:
www.usapears.org
