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Marc Evrard (Belgian Fruit Valley):

"Inaccuracy of shipping companies since Red Sea incidents makes just-in-time deliveries increasingly challenging"

With Chinese New Year just around the corner, there is always peak traffic for Belgian Fruit Valley. The company, part of BelOrta since last year, has been working to promote Belgian Conference pears to the Asian market again. "That rush is carefully planned, because we know that in the lead-up to Chinese New Year, we need to step up our efforts, and we managed to do so. Volumes were sent at the end of December, and we expect nearly everything to have arrived by now," says BFV's Marc Evrard.

The promotion of Belgian Conference pears to China started about 10 years ago but was interrupted by the pandemic. "We saw growing demand every year from 10 years ago, but in the early 2020s, the pandemic halted everything. It continued, but we were bound by restrictions," Marc explains. "Once it ended, we had to rebuild. However, China had changed a lot during that time. The country had been reorganized and was no longer the same as in 2019. Moreover, during the pandemic, we lost touch with consumers. Since last year, we have been trying to reconnect, not only through an online presence but also by engaging with consumers in shops and promoting our flavorful fruit. This year, we see demand growing again compared to last year, aided by the Smurf packaging campaign we have there."

"That said, we always look at the whole picture," Marc continues. "In all markets where we are present, we strive to supply as efficiently as possible, whether it's China or Germany, and that has been going well this season. Of course, there are always challenges. For instance, while the pears are of good quality this year, we also have to deal with the aftermath of hailstorms that affected the entire hard fruit sector in Belgium and the Netherlands. We are handling this as best we can, and the pricing is currently the best we've seen in a long time."

Challenges have worsened since the Red Sea issues
However, there are still some challenges this season, particularly with shipments. "We find that shipping companies are less reliable than before. This decline started with the Red Sea issues in January 2024 and has worsened. I believe we have reached a peak in punctuality issues since September, which is not ideal for just-in-time deliveries."

Does this affect the fruit destined for China? "Fortunately, we have good quality fruit this season, so that's not a problem. However, we make schedules with importers and retailers in China to deliver as close to the sale date as possible. They specify the caliber they want each week, and we have to plan weeks in advance. Delays bring many additional challenges."

Despite a ceasefire declared in Gaza and Houthi rebels indicating they will no longer attack foreign ships, Marc does not anticipate immediate improvements. "Even those involved in the negotiations cannot guarantee certainty, so neither can I. If the passage becomes free again, it will make a big difference—10 days less transit time and lower costs. If it succeeds, it would be nice, but it remains to be seen if there will be immediate changes at the shipping lines. The situation is still highly uncertain, and getting everything back on track will take time."

For more information:
Marc Evrard
Belgian Fruit Valley
+32 1169 3411
[email protected]
www.bfv.be