Crisp market for NZ apples
Write:
Quennel [2011-05-20]
The harvest of New Zealand apples is well underway and according to Pipfruit New Zealand the fruit should arrive in a market that has little overhang of Northern Hemisphere fruit. Stocks in Europe are down on past years but high prices are keeping the market balanced.
Meanwhile in the USA stocks are also clearing better than expected. Although volumes of the varieties marketed by Pipfruit New Zealand, namely Fuji, Royal Gala and Braeburn are all up around 15%, the Eastern seaboard producers are nearly sold out and Washington stocks are expected to dwindle rapidly, creating demand for Southern Hemisphere supply.
South Africa has a very normal crop volume and strong demand from the African continent will influence where fruit ends up. Brazil also has a strong local market and recent hail and frost in southern regions have reduced the overall crop by 22%.
Chile's crop is only up modestly on last year with Cripps Pink, Fuji and Royal Gala all around 5% increases.
Northern Hemisphere markets are starting to firm up. NZ exporters attending Fruit Logistica in Berlin in February returned home positive about prices for Royal Gala. The crop in Brazil is expected to be 2% smaller this year, and the export crop will shrink from 90,000 tonnes to 50,000 tonnes as a result. Other South American exports will also be directed to Brazil as a result. This can already be seen with 80% of Chile's first Royal Gala exports directed to South American markets. South Africa has had a heat wave with temperatures regularly around 40oC. Fruit meeting the UK's colour spec will be in short supply while domestic African demand is strong.
Some German importers are already talking FOT prices around ?23-24, with the possible opportunity for two extra weeks of sales, while discussion with the UK is at ? o20 for Royal Gala.