The new Italian apple export season has begun. Affected by multiple factors such as the ongoing covid epidemic and the global shipping capacity crisis, which are creating challenges for the overall export of Italian apples to Asia this season. Kevin, the Asia Market Manager at Omnifresh™, recently shared his views on the challenges and strategies concerning the Italian apple export market this season.
The Italian ‘Ambrosia™’ apple
Besides promoting common varietal Italian apples, Omnifresh™ is responsible for the sales and marketing of top Italian club variety apples such as Ambrosia™, Yello™, Kanzi®, and CrimsonSnow® to the Asia market. "The characteristics of club apple varieties are that from planting to sales, the process is completely controlled by licensed growers and exporters. This ensures the quality and the unique taste and experience of consumers without oversupplying the market. Since Omnifresh™ started exporting to Asia in 2018, they have received many positive feedback from customers in Hong Kong, Malaysia, Singapore, and other Asia markets, especially the "Ambrosia™" apples produced in Italy. "Ambrosia™" is very crispy and very sweet, which is a perfect match to the taste and preferences of Asian consumers," Kevin said.
Italian premium Club apples from left to right: Ambrosia™, Yello™, Kanzi®, and Crimson Snow®
“The weather conditions in Italian apple orchards were favorable this year. The overall quality of Italian apples is excellent. As a whole, the color, the flavor, and the Brix are all outstanding. The production volumes of all Italian apple varieties are expected to increase this year. However, the total export volume of Italian apples to the Asia market might still suffer from various external factors.”
"The shipping crisis is currently the main problem we face when exporting to Asia. In recent months, the freight costs from Europe to Hong Kong, Malaysia, Singapore, and other Asian ports are incredibly high, and arrival at the destination was often delayed by 10-15 days.
Shipping delays have affected the overall export volume." Kevin said, "Secondly, there is a labor shortage in many production areas due to recurring outbreaks of Covid-19. The cost of labor is rising in every part of the supply chain from the production area, all the way to the destination ports. The rising costs of labor, carton box, and logistics inevitably increase the retail selling price of apples, which will unavoidably affect demand. We can only control costs as much as possible, and even bear some of the additional costs ourselves. At present, the pricing of several of our club apple varieties in Asia is still within a reasonable range, coupled with the consumer's love of our club variety apples, the demand for us is still relatively stable, even under such a challenging market situation."
Preparing Italian Ambrosia™ apples for transport to Asia
“In terms of sales, our premium Club variety apples stand out in the aroma, taste, and flavor, so there is always a growing demand from consumers in Asia. Although market demand for club variety apples is steady this season, we still have to proceed with caution due to the impact of the global shipping crunch and the general economic environment and conditions in the Asia market,” explained Kevin.
Omnifresh™ was established in 2018, when three major Italian apple companies, RK Growers Srl, Rivoira, and VIP Val Venosta joined hands. The three companies together represent more than 20% of Italian apple production, equivalent to more than 400,000 tons of premium Italian apples.
For more information:
Kevin Au Yeung – Asia Market Manager
RK Growers Srl / Omnifresh™ Apple
E-mail: [email protected]
Web: www.rkg.it
Web: www.omnifreshco.com