The top-fruit category remains at the forefront of UK fruit production, with home-grown product looking to outsell imports, as the market looks inward in times of economic volatility. Alex Lawson reports.
As the exchange rate continues to bite into the import business in the UK, the top-fruit category – a traditionally resilient market – is bracing itself further, with a certain confidence that it will weather the storm well.
The last quarter proved a positive one. Sales were good in the festive season before a British boom on Cox in January. “It has been quite incredible how successful a month it has been for Cox in particular,” says one insider. “UK sales have been very strong this year; I think good storage and good quality are the main reasons. There has been some pretty attractive fruit to be had.” Gala and Braeburn have also been winners as consumers turn to classic home-grown varieties.
The weakened sterling has hit all imports hard and companies are looking at ways to avoid the impact. An industry expert puts it well: “We are all braced for this and there are genuine fears that some suppliers may simply turn their backs on the UK; we are not exactly an attractive market right now.
“We have seen that prices have rocketed for some other products, such as cucumbers, and it is scary to look first at what is being asked and then what is being paid – the line needs to be drawn somewhere.
“So far, top-fruit sales as a whole have been fairly flat, but people are trying to protect some of the premium lines as they are at the forefront and will be the first to see a sales drop-off.
“There is no doubt there has been a serious devaluation and the marketplace has become really tight. The first thing we have to do as an industry and as individual businesses is to plan. Plan marketing and plan training – the extras that are still valuable – but plan volumes as tightly as possible too.”
Another prominent figure says: “Apples and pears are lucky in that they are a staple crop. They are mid-priced and will be the last to disappear if fruit sales did seriously begin to drop off – at the end of the day, they are the most readily available and some of the most popular.”
One expert concludes: “It is a bit tough out there, but we are in a decent position. The key is to be reactionary, as being static helps nobody.”
Source: FPJ 20th of Feb 2009
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