This year's apple harvest in Portugal is of good quality, especially when it comes to the Gala apples, says Joao Juma, export manager for Portuguese apple exporter United Growers: "In terms of quality, we must say that we're very happy with the apple harvest this year. The coloration and pressure, mainly on the Galas, make this year's apples very workable for long transits, compared to last year, when we had a heatwave right at harvesting time. In terms of quantity, on the Galas, we have similar yields as the previous year, although we clearly lack larger sizes on both the Galas and Golden apples. Overall, in the north and center, the national production is steady, but with smaller sizes than expected."
© United Growers Lda
Despite demand not being as strong as Juma had hoped, he does notice a trend of smaller sizes being appreciated more, which will work to the company's advantage. "Demand seems lower than we'd anticipated. This is for various reasons, such as the good production in Spain, France, Italy, and Poland, which are creating pressure not only on the European market, but also in some markets outside of Europe where Portugal usually stands out. Looking at the positive side, we see that the markets are appreciating the smaller sizes more and more, so we're able to provide decent returns to our partners at competitive market prices. The high production of American apples, together with a depreciated USD, is also contributing to the prices being steady, but we aren't in any rush to sell. We believe that at the beginning of the year, the opportunities will be waiting for us."
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The fact that Turkish production is lower this year has not really resulted in demand for Portuguese apples increasing, as the two countries target different markets, Juma explains: "Turkish fruit has its own market. In the Middle East or India, we can´t possibly compete on prices with Turkey. Taking into consideration the lower production of Turkey, we find the gap is filled with apples from other sources, such as Iran, Moldova, Serbia, or Ukraine. So we don´t feel the current situation has particularly created a specific opportunity for Portuguese fruit. For the Indian market, this could be an opportunity, but it is a country that requires low prices and has a long transit time, so we don't see that as a market we need to be in, unless there's a year with excessive production."
© United Growers Lda
"We see a higher demand for our red apples, which we are exporting to South America mainly, as well as Granny Smith, although it is not comparable to the demand for Royal Gala. At the moment, prices are in line with what we wished for when it comes to the smaller sizes. However, on the larger sizes, we feel the competition is lowering the prices too early. In terms of sizing, we believe we'll be one of the only options around for quality middle to small size Royal Gala, with good pressure and color. So, we'll provide the market with the right fruit and price when the time is right," Juma concludes.
For more information:
João Juma
United Growers Lda
Tel: +351 21 0935 261
M: +351 910 645 600
[email protected]
www.portugalapples.com
www.unitedgrowers.pt
