Southern Hemisphere apples and pears 2015 campaign review

  • Published on 12/04/2016 - Published by BENOIT-CELEYRETTE Cécilia
  • FruiTrop n°239 , Page From 16 to 20
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Still no let-up

The last campaign brought little in the way of suspense: production did not reach excesses for either the apple (less than 5 million tonnes) or the pear (less than 1.3 million tonnes), because of climate conditions which affected the fruit potential and sizing. Hence exports were down once more, because of a late start to the season and export windows narrowed by local produce.

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Summary

Another fall in exports

Without really dropping into shortfall, the apple and pear production potentials certainly did not hit the heights in 2015. In fact levels kept to around the 3-year average. The harvest was affected by the heat in South Africa. The same was true for Argentina, whose production was also impaired by hail and then strikes, which resulted in losses on the trees and another salary increase. Its export campaign was also affected by currency parity, since while the exchange rate was more favourable for most sources, devaluation was distinctly smaller for Argentina than for its South American neighbours. So exports were down by 11 % for the apple and by 8 % for the pear, across all the Southern Hemisphere producer countries.

This fall was again in large part attributable to the European market, which was focused on its own produce. Its apple and pear imports from the Southern Hemisphere have been increasingly late. Apple imports fell again by 13 % in 2015 from the previous year, to below 400 000 t, i.e. approximately half the figure from 2007. Argentina and Chile registered the steepest decrease, dropping 60 % (14 000 t) and 32 % (111 000 t) respectively. New Zealand also registered a slight fall of 9 % (117 000 t), while South Africa and Brazil maintained their market shares better, with 105 000 t and 35 000 t respectively.

Similarly, Community pear imports from the Southern Hemisphere fell by 11 % in 2015 from the previous year, verging on the 200 000-t mark. The downturn was especially marked for Argentina (58 600 t, i.e. - 34 %), after import volumes peaking at more than 100 000 t in 2013, and at 160 000 t in 2009. Market share was also eroded for South Africa, which again registered a slight downturn (96 000 t, i.e. - 9 %), whereas Chile held up, managing to return to its 2009 level (55 600 t, i.e. + 20 %).

apple - southern hemisphere - exports
apple - southern hemisphere - exports

A very tight two-month European slot for apples

The beginning of the Southern Hemisphere apples season is coming increasingly late. The first Gala batches appeared toward mid-March (Brazil and South Africa), though the unappealing prices (1.30-1.40 euro/kg into Northern Europe, 18 kg) and the substantial remaining stock of European bicolors prevented a flying start to the campaign. Volumes from Chile and then New Zealand topped up the supply during April, but the contribution from most of the Southern Hemisphere sources remained anecdotal. Only the small Brazilian Galas (1.00-1.10 euro/kg, size 100-135, Northern Europe, 18 kg) registered steadier sales. Until late April, sales still primarily involved the wholesale circuit, although some chains started to show an interest towards the end of the month.

Rates then slipped slightly in Northern Europe (Chile: 1.25-1.35 euro/kg; New Zealand: 1.40-1.60 euro/kg), though wholesale sales were only steady from mid-May, remaining very poor in the in-store segment. The purchasing groups started listing this produce really only in late May/early June. So rates continued to adjust (Chile: 1.10-1.35 euro/kg, 18 kg; New Zealand: 1.40-1.50 euro/kg, 17.5 kg), and Gala sales gradually increased to become steady in the course of June. The Pink Lady campaign began around mid-May, with the first batches from South Africa, and then expanded with Chile’s campaign starting in early June. As activity remained insufficient in June, the rates for this variety fell steeply, going from 1.90-2.00 euros/kg at the beginning of the month to 1.50-1.60 euro/kg at the end of the month with the anticipated growth in incoming shipments. Demand was practically non-existent for Granny and especially red varieties, until the fall in European availability in July. From that point, sales of stored volumes of Southern Hemisphere Gala, and most of all Granny, picked up, and the Pink Lady market got moving.

apple - exports from main southern hemisphere producer countries
apple - exports from main southern hemisphere producer countries

A late start and a highly staggered campaign for pears

The pear campaign was late in getting started. The first incoming shipments of South African Bon Chrétien were received early from week 4, though the supply remained limited since rains delayed South African harvests. Prices hit fairly high levels at the beginning of the season (1.10 euro/kg, 80-90 fruits, 12.5 kg, into Northern Europe) and remained strong throughout February in the absence of Argentinean Williams, delayed by production strikes. The market only really established itself from week 8. It remained fluid in March, with demand primarily focused on South Africa, and only switching late to Argentinean Williams, in April. The other varieties also really struggled to find their place - this applied to Beurré Hardy, Beurré Bosc and even Comice - with a rapidly widening price range, especially since the competition made itself more keenly felt with the arrival of spring fruits, and then with the first summer fruits in mid-May. While the fall in Williams volumes helped rates of this variety to remain stable, sales were very disappointing for the other pears, including Abate and Comice. Rates remained under pressure throughout June, with the most advanced batches needing to be sold off. At this point, prices reached historically low levels, especially for Comice. The Williams campaign ended in mid-June, but as the market was quiet in July, the Comice campaign extended into July, and the Abate campaign until the end of the month.

pear - exports from the main southern hemisphere producer countries
pear - exports from the main southern hemisphere producer countries
pear - southern hemisphere - exports
pear - southern hemisphere - exports

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