Rival exporters upset Enza's UK apple cart

By PHILIPPA STEVENSON

Giant British supermarket chain Tesco is importing apples from New Zealand independent of Enza because it has been unhappy with the performance of the former monopoly supplier.

"Tesco would be annoyed that they are being painted as the bogeyman; [as] ripping Enza apart. Enza knows that is not true," said a source close to the powerful chain yesterday.

The comments come after Enzafruit executive chairman John McCliskie predicted that permits granted by the new Export Permits Committee would damage the industry because most were targeting Enza's existing customers.

He has identified Tesco as one customer taking 300,000 cartons from an independent exporter in a move which would cut into Enza's contract for 900,000 cartons.

But the source, who declined to be named, said Tesco and its agents got export permits after demonstrating to the consents committee that the supermarket had been trying to buy more apples from Enza for several years.

"But Enza has not delivered on their agreed programme - either not enough fruit, or not delivering fruit in accordance with the quality requirements. They are demanding customers."

Yesterday, Mr McCliskie said that Enza were not having any problems with the big retailer.

"The effect is that Tesco now has two suppliers for the same product that used to go through one. Every buyer in world wants multiple sellers...to get the fruit cheaper."

Permits committee acting chairman Jim Scotland said the consent process was confidential and he could not comment on an individual application.

However, yesterday the committee released figures that showed it had received export applications for 7.4 million cartons but had declined 2.41 million outright, and cut the volume of the applications it had granted by more than half.

It had granted 1.25 million cartons for export, was considering another 1.18 million and had yet to get to applications for another 650,000.