The European market has been a bit more positive recently for some apple varieties, but not all have been so successful. At www.freshfruitportal.com, we caught up with German-based BayWa (DE: BYW) fruit general manager Christiane Bell to discuss the season and how the market is shaping up for Southern Hemisphere supply.

When we last spoke in February, German apple growers were in difficult times regarding prices and returns. Has the situation improved at all since then, and how? 

The current sales season is characterized by a smaller crop especially in southern Germany and a higher price level compared to 2014. Prices for our main varieties like Elstar and Gala remained stable throughout the season with some limitations regarding to quality and size. Demand for our Kanzi is really high and we’ve been able to strengthen our market position for this variety.

By now it is too early for a conclusion for the season. Further development will depend on several factors like European movements, the summerfruit season and Southern Hemisphere volumes.

And how has the market been for other varieties? Do you think certain cultivars will be cut out or replaced?

For the remaining varieties an increase of the price level similar to the end of last season seems to be unlikely. Especially several sizes of Redprince, Jonagold or Golden Delicous suffer from the limited export possibilities. The current German variety range has been the right choice for a long time. But now we have to think global and adjust our orchards to meet the demand of the domestic market as well as the requirements of new markets equally.

Besides this, world apple production is forecasted to reach 100 million metric tons (MT) in 2025. In this context, there is no alternative to value-adding varieties.

What measures did the market situation lead to in terms of stimulating demand and outlets for the fruit?

In markets with high volumes a strict management of quality is essential. The supply of the right quality to the right customer needs our full attention. It is a matter of never disappointing consumer’s expectations. The buy-domestic-movement – “Regionalität” - in Germany is a big issue and with the right products at the point of sale helpful in difficult times.

The north-south-divide regarding the harvested volumes rubbed off on our business in the southern part of the country due to a large number of advertising impulses. Current market and trade flow changes, consumption development and behavior as well as digitization require a permanent adaptation of strategies and new ways of thinking.

Would it be possible for you to give a summary of German apples’ performance in different export markets?

The large crop in most member states of the EU and political developments in several countries led to limited export possibilities in the current season and a competition for the open markets. Fortunately, we were in the position to further develop our position in Asia, even if the possibilities for German apples are still limited. Market opening measures at the governmental level are proceeding and we’re looking forward to a positive development of these efforts bearing fruit.

Finally, how is the market shaping up for the transition into Southern Hemisphere supply?

There are still high stocks in the European market and we are looking forward to the next figures. For Braeburn the transition to Southern Hemisphere fruit appears to be positive, as there is a lack in the continuity of German fruit. The great performance of European Jazz allows a smooth transition to Southern Hemisphere fruit. Gala is a main pillar in the sales concept of future-oriented varieties so it is important to meet customer’s demands regarding to quality.

www.freshfruitportal.com