Apple industry in the stew

By Philippa Stevenson

Between the lines


Apple marketer Enza found it tough selling apples overseas this year, but it ain't seen nothin' yet.

Tougher times are ahead.

On the whole, growers have accepted that, this year, world markets have been swamped with huge quantities of apples and other fruit.

They have also accepted other explanations for the price collapse of their mainstay apple variety, braeburn - a banana war, supermarket consolidation, changes in consumer preferences, reduced buying by Russia.

But many are finding it unforgivable that Enza worsened returns by opting to accept outsized braeburns - fruit outside the preferred size range - swelling the crop to be marketed by another one million cartons.

One grower said he thought the request was odd, "but I figured they knew what they were doing."

Now he, like many others, is wondering how Enza could have been so wrong.

It also must seem like rubbing salt into growers' wounds for Enza to now claim that its "pre-season market planning assumptions have proved to be remarkably accurate."

That is not the way growers, including Grocorp Pacific, see the board's early advice. Braeburns account for 55 per cent of the company's production and it estimates the price cut will cost it about $2 million.

Not surprising then that Grocorp directors believe "the case for deregulation can no longer be denied."

With its suspect performance, Enza handed all its detractors the stick with which they could beat it.

The tougher question, though, is how Enza and the industry will pull themselves out of the stew.

The pruners will have to be taken to costs throughout the industry.

Growers will have to figure out how they can set up their orchards with varietal mixes to lessen dependence on any one variety. Enza will have to work out how to get sufficient returns from smaller volumes of many different varieties .

The premium varieties - braeburn, royal gala and fuji - are being grown by most of the world in huge volumes.

New varieties such as Pacific rose, Pacific beauty and Pacific queen are new to the market, and also, in some cases, have a way to go to find consistent quality. Other varieties are being developed, but commercialisation is some way off.

New variety development has to continue, with all the necessary but expensive protection.

And the industry would do well to seriously consider the market for organic produce. According to one marketer, organic fruit should be treated like another variety - one which has huge and growing potential.

But he also points out that the rest of the world is already stealing a march on New Zealand while we debate whether organic growing is a good idea or not.

The tough better get going.