By Philippa Stevenson
agricultural editor
Europe's largest fresh produce distributor has put some sobering market realities to a tumultuous meeting of apple growers.
Heated discussion at the Pipfruit Growers NZ annual conference in Hastings yesterday reflected the industry's turmoil.
At the same time as it digests changes to the Apple and Pear Board's structure
as a result of Government-forced deregulation, growers' returns have halved because of a price collapse of their mainstay apple variety, braeburn.
One grower said: "We've got our backs to the wall - somebody's got to be kicked."
The sudden resignation on Wednesday of board chief executive Gary Smith did not do the trick if yesterday's fractious gathering of about 200 growers was an indication of nationwide feeling.
But the meeting's mood was changed by chief executive David McCann of Fyffes, the British fruit and vegetable distributor which shifts 160 million boxes of produce annually, and has a turnover of 2 billion euros.
Last year it made an 80 million euro profit - the 40th year in a row it has increased earnings.
"Certainly it is a time of turmoil for the industry here," said Mr McCann. "In the end, what you have is a lousy marketplace."
He described a world market dominated by huge and growing retail firms whose dominance increasingly transcended national borders. Five retailers had 10 per cent of market share giving them "staggering share, staggering clout."
The world and America's number one player, Wal-Mart, last year took over giant British supermarket chain Asda. With sales of 150 billion euros, Wal-Mart "no longer needs to work with us. It can ignore people like Fyffes and Enza," he said.
Mr McCann said against such retail power, Enza was "almost a niche player."
Its strength was doing things in an excellent way. Its marketing effort had been magnificent, focusing on different varieties, "super classic quality fruit," and social and environmental responsibility.
"And it has worked," he said.
Mr McCann suggested that instead of adopting what he said was the failed fragmentation of marketing by South Africa and Israel, the industry should "form groups, market with others, and get into bed with other entities."
Throughout the rest of the day, a vocal minority of growers repeatedly turned discussion on a range of issues into a debate about single versus multiple exporters.
A motion put by Enza opponent John Bostock, that controls on export consent licensing be loosened, was defeated by 584 votes to 242.
