"Tough" is how Jacco van Kessel, General Manager at Van Kessel Fruit (VKF), describes the Dutch top fruit market in early October. "The apple market is especially challenging. There seemed to be somewhat fewer apples, but the market wasn't empty when the new crop arrived. Prices aren't holding up either."
He thinks consumer spending will determine the market's progression. "It feels like people have far more choices. so, it's no longer a given that they'll buy bananas, oranges, or apples every week. They may have to cut back on that too which won't encourage fresh fruit and vegetable consumption. In that respect, it would be great if VAT on those products could be reduced to zero percent."
Cost increases naturally affect the top fruit sector too. Jacco notes that controlling costs is challenging. "Labor and electricity costs are especially burdensome," he says. Jacco considers compensation for increased energy costs for the top fruit sector - where possible and necessary - desirable, adding that it remains to be seen whether the costs can be passed on in the selling price. "That's currently not working out, and that's going to impact the sector."
While other industries face this problem too, he points out that, in the top fruit sector, it is hard to cut costs by, say, stopping refrigeration because then you lose products. "You can't sell everything right after it’s harvested; you must store some. That's part of the game, and eventually, you have to somehow cover all those extra costs. If that doesn't happen, it's at the producer's expense in the long run," Jacco explains.
A grip on the price
Despite the challenges, the fruit grower and trader determined that sales of the Evelina apple concept variety – of which Van Kessel Fruit holds the license in the Netherlands - were good last year. He is optimistic about this variety's future, too, and wants to expand its acreage further. Several apple varieties are on their way out, and growers are looking for alternatives. For Jacco, that is where a club variety like Evelina comes in; a club concept like this could partially solve the current issues. "A club variety directs prices more and has a better grip on those."
He sees that when people buy concept variety apples, it is essential that they can blindly rely on that variety’s good quality. "Free varieties have many suppliers, but no one's responsible for them. With a club variety, there's a single responsible person. If you drop the ball, it immediately affects the variety's image. You must be consistent and strict. Otherwise, you can't justify the higher price. Consumers have to get value for money."
The fruit grower and trader also sees that you cannot stretch the price infinitely. "People will pay €3/kg for a club variety like Pink Lady, but if, say, Elstar then comes onto the shelf for €1 per kilogram, the difference becomes too great, and shoppers will choose Elstar. That's, of course, also a great apple."
Multiple varieties alongside each other
Although the market keeps getting ever-more club concepts - especially for apples - which Jacco does not see all succeeding, he does foresee more new varieties coexisting. Supermarket demand for distinctive apples and pears plays a role here, as does the trend toward more hardy, disease-resistant varieties. "Jonagold and Elstar won't easily disappear, but club varieties will probably gain more importance," he explains.
Given the many developments, it is hard for him to say what the future holds. "There will undoubtedly always be a top fruit sector, but its apple acreage may shrink somewhat." Jacco also expects the general public's desire for sustainability and, by extension, using fewer crop protection products to affect the crop and sector. "Not least because there are additional costs associated with this that selling prices often don't reflect," he concludes.
Voor meer informatie:
Van Kessel Fruit
www.vankesselfruit.nl
www.evelina-appel.nl
