“The Netherlands and Belgium have become unimportant apple producers.” The conclusion made by Belgian tree grower Johan Nicolaï on the state of the apple cultivation wasn’t particularly hopeful. During a meeting at fruit grower Domus de Jonge in Kapelle he laid out the perspective for the new apple varieties, in which the retailers have started investing in their own exclusive varieties to define themselves.
Five big varieties
"Globally, we have seen five large varieties since the dawn of time; Golden Delicious, Red Delicious, Gala, Granny Smith and Fuji. Of these the Gala is taking up more market share and the other four varieties are receding. There are also a few varieties that are very strongly represented locally, such as Jonagold in Europe and Honeycrunch in the United States. We also have the well-known club varieties such as Pink Lady, Jazz and Kanzi, who are well-known but only have a limited market share,” Johan describes the global situation for apple varieties.
The tree growers divided the ‘apple world’ into three blocks. “There are a number of countries with over production and a decreasing consumption, such as the United States, Europe, New Zealand and Australia. You also have areas where the production is quite low and the consumption is rising, such as North Africa, the Middle East, India and Russia and there are countries with rapidly rising production and consumption, such as China and South Africa. It is becoming increasingly difficult for the Dutch and Belgian apple sector to play a role of importance.”
Johan Nicolaï
Elstar and Jonagold
"The apple area in both countries has dropped back to around 6,000 hectares. They are also losing market share domestically. Retailers are continually carrying imported product, whilst the volumes of Elstar and Jonagold are being replaced year on year. The Jonagold was the showpiece of the Belgian fruit and vegetable trade for a long time, but the increasing competition from Poland and the preference for Gala in the United Kingdom are all at the cost of the Jonagold export. The Elstar, the main variety in the Netherlands, is frequently exported to Germany, but has never had a breakthrough in other European countries,” continues Johan.
“Poland has 140,000 hectares of apples. A lot of companies have grown there because so much subsidy money was handed out, but that’s how it works in Europe. If half of the apple production is good, there is still 70,000 hectares left. The 6,000 hectares in the Netherlands and Belgium are nothing compared to this. The Netherlands and Belgium have become unimportant apple producing countries,” continues Johan.
Pears
"The pear production is still quite significant Europe wise. The Conference pears, along with the Italian Abate Fetel and the Portuguese Rocha pear is regarded as one of the largest varieties in Europe. However it has been difficult to enter new markets after the loss of the Russian market. There are attempts to export to the US and Canada and the export to China is on the go, but it is still marginal and I honestly wonder whether it will be a success,” continues Nicolaï. “Germany could become an important export market for Conference pears, although competition from Italy is lurking and I also see potential for the Conference pear in Spain.”
“The question is what the future holds. Will we have to invest in lower costs through collaboration or will we have to move to a demand and market focused production. In the United Kingdom there are successes with a one to one relationship between Gala growers and a supermarket chain. They were able to extend the season by 4 months which means British Gala runs until the end of June. One British supermarket already offers British apples all year round and the retailer has power, both towards the producers and the consumer,” continues Johan.
Ghost riders needed
"A lot of Dutch and Belgian apple growers are specialists in cultivation and sorting, but have no vision of the market. We need ghost riders who evolve initiatives, are innovative and think of customer relationships. Supermarkets want this too. I discovered that supermarkets want a different role than that of a purchasing centre. Offering Jonagold for 29 cents, no one profits from that. The assortment is the same everywhere. There is also no definition with club varieties, as they can be found everywhere. A closed chain with a club variety has a certain chance of success, but it remains a push-strategy, which requires a large investment,” Johan believes.
He therefore expects the variety introduction to be very different in the future. “Due to the price pressure I don’t expect the fruit sector to introduce new varieties itself. But I see new chains created in which supermarkets introduce their own exclusive varieties to be defining. They are taking a risk by doing this. It requires resources, but they can carry this and growers will commit to the necessary production. This model may seem futuristic, but it isn’t far away. We are at the table with the supermarkets.”
For more information:
Johan Nicolaï N.V.
Brustem industriepark
Lichtenberglaan 2050
3800 Sint-Truiden – Belgium
Tel.: (+32) 11/70 20 00
Fax.: (+32) 11/70 20 01