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Home / Business

UK supermarket scouts for NZ apple supplies

10 Aug, 2001 11:08 AM2 mins to read

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The soon-to-be deregulated apple industry faces its first test this weekend as a buyer from Britain's largest supermarket chain, Tesco, arrives to line up apple supplies for next season.

Simon Latham said he was travelling to New Zealand with an open mind about who would secure the lucrative supply contract with
the food giant.

"I have no idea yet whether our buying patterns will change," he said.

In a whistle-stop two-week tour, Mr Latham plans to meet incumbent exporter Enza, independent growers and representatives from British fruit procurement company Empire World Trade, which is based in Hawkes Bay.

Market observers have speculated that buyers such as Tesco would use the new open export system, which comes into effect on October 1, to cut out the middleman and deal directly with growers.

Mr Latham said that option was unlikely, at least in the short term.

"We have very good relationships [with current suppliers] and we don't want to have too many points of contact."

Tesco works through Hawkes Bay agent and former Enza executive David Cranwell of Empire World Trade.

Britain is a key market for New Zealand apple exports. Enza exported fruit worth about $150 million last year.

The market is dominated by six retail chains controlling 80 per cent of the produce business, and Enza exported 90 per cent of the New Zealand apples sent there.

- NZPA

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