The Association of South Tyrolean Fruit Growers’ Co-operatives (VOG) is looking back to the previous season for context ahead of the 2016-17 campaign, with a better quality apple crop in store which bodes well for shelf life.

In a release, the group said it expected Poland's bumper crop would once again be a critical factor putting the squeeze on prices, while the financial crisis has also hit major importing countries in North Africa.

However, on a more positive note the euro-dollar exchange rate may encourage exports to markets around the Mediterranean Sea and further afield.

VOG Consortium director Gerhard Dichgans

In recent years these countries have become strategic markets for Alto Adige apple distributors, which are expected to grow in excess of one million metric tons (MT) this year.

There is set to be a slight rise in Gala, Red and Braeburn varieties while Golden Delicious will be stable, Granny Smith volume will be down by six percentage points and Fuji production will be 14% lower.

"The demand for fresh apples at the start of the season is high. Following a season that, for various reasons, failed to come up to the expectations of consumers and customers," said VOG Consortium director Gerhard Dichgans.

"This year, thanks to the excellent quality of fruit, I am confidently expecting a much brighter start to the season," he said.

"Moreover, since North Europe will harvest later this year, Alto Adige apples can gain space in the market over the coming weeks."

VOG members started harvest on August 10, and the first shipments of Royal Gala were scheduled for the third week of the month.

"The markets are receptive, since availability of overseas apples is limited and almost sold out," Dichgans said.

"Demand for new crop Gala is very lively, not only in Germany and in the Scandinavian countries but also throughout the Mediterranean area, which has already sent in its first orders."

From a quality point of view, the 2016 harvest is expected to be much better than the previous year, and as crops did not suffer the same heat peaks as in summer 2015, this year’s apples are of good quality and texture, meaning that excellent keeping and a long shelf-life are expected.

He said the crop is also looking good for new club variety apples too.

"Last year, supplies of Jazz®, Pink Lady® and Kanzi®” finished a month ahead of time," Dichgans said.

"This year, we are able to guarantee all the volumes our customers require and plan a full season's deliveries. And for the Envy® variety, the VOG Consortium will be doubling its crop.

"This variety was presented for the first time in Italy and Spain last year, and it had a considerable success, so much that clients are already asking when it will be possible to place their first orders. The season just getting underway will not be easy, but it offers new opportunities."

This all builds on a difficult sales season in 2015-16, which started out with high hopes due to a 10% drop in production, but ended up being more complex than expected.

A key factor was a halt in direct sales to North Africa and the Arabian Peninsula in the winter and spring of 2016.

"We now know the reasons for this shrinkage in the market but such an abrupt stop, especially in Libya and Algeria, was totally unexpected," Dichgans said.

The group sold 520,000 metric tons (MT) of apples in 2015-16, compared to 597,000MT in the previous season, and even though the sales margin rose to compensate for the decrease in volume it was unable to compensate and turnover was down year-on-year.

"For our growers, it was the second consecutive year in which the prices paid for the standard varieties continued to be disappointing, in some cases actually below production costs," Dichgans said.

"Only the Club apples and the organic varieties escaped this negative trend. In fact, demand for these varieties increased throughout the year and they sold out early."

Stocks of Golden Delicious apples are at standard levels and they are expected to sell out by the beginning of September.

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