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Success in China for Aussie grape growers

Growers in the Australian Table Grape Association have nearly tripled their exports to China since 2014, with the volume rising from 7,000 tons to 20,000 tons.

Growers in the Australian Table Grape Association have nearly tripled their exports to China since 2014, with the volume rising from 7,000 tons to 20,000 tons.

The association, which represents grape producers across Australia, reports that of total production of 160,000 tons, 90,000 are exported. The main markets are Hong Kong, Malaysia, Indonesia, the Philippines, Singapore, Vietnam and other Asian countries.

“We also export our fruit to Japan and Korea; these markets have been expanding,” said Jeff Scott, the association’s CEO.

Talking about the growers’ success in selling grapes to China, Scott said the association has been participating in China FVF since its launch six years ago. “And three years ago our countries signed a relevant protocol, and we started to ship grapes to China. Now that country is the most rewarding market in terms of volume, because Chinese consumers like the taste and appearance of our grapes, and sales keeps growing, although the price is higher than for their domestic grapes.”

Australian Table Grape Association

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Tesco chief calls for retailer-government parternships to tackle challenges

Dave Lewis Tesco boss

The rise of e-commerce was among the challenges for retailers – and nations – that Tesco CEO Dave Lewis raised during a speech today in London.

Saying that “increasingly the world is mobile first, “ Lewis said major online retailers report more than half of their UK transactions are completed on a smart device. “In the UK, digital retailing has doubled over the last five years to become a £10bn business.”

“As a business, we expect continued growth…the challenge for us is how to make our online business of tomorrow as profitable as our offline business yesterday,” he said.

But there are significant challenges the growth of digital  poses for the nation, too. “Digital operations have no real community footprint, far fewer employees and a far lower tax contribution.That should be a dilemma for the Exchequer. Without rebalancing to reflect digital business models the physical side of retail pays a higher and higher proportion of the total tax bill.

“Furthermore it will incentivise a swifter shift to infrastructure light, low employment business with little interaction with communities,” he said.
 

The growth of limited range retailers and convenience shopping

Lewis then went to talk about the rise of limited range retailers and of convenience shopping – in terms of physical shops – which he said have both affected profitability and growth. Limited range retailers have doubled since 2010 and the convenience channel is up 5% again this year.

“Our big stores are also seeing a high proportion of convenience shopping trips – 76% of Tesco convenience trips take place in our Extras or Superstores. But I don’t see this as a challenge per se – I see it as a shift in what customers want or need – and it’s our job to respond.   

“What I do see as a challenge is that whilst the customer was heading in one direction the industry was heading in the other…between 2007 and 2014 it added around 35 m sq ft,” Lewis said, going on to talk about the pain caused by having to close stores and halt construction on others.

 

The burden of higher structural costs when profits are at a low point

Lewis said the real challenge for the sector is that it is struggling with structural cost at a time of historically low profitability. While two years ago food inflation was running at 4%, now it’s -2.4%. That’s great news for customers but puts significant pressure on parts of the retail industry.

“In supermarkets profitability has sunk from 5% to 2% in five years and now we face significant new cost pressure. This is a potentially lethal cocktail,” Lewis said, going on to say that meanwhile property values have fallen but business rates are up. Tesco’s own business rates bill has climbed well over 35% in the last 5 years. “That’s an enormous pressure. Shops have closed. Businesses lost. Jobs sacrificed,” he said.

And on the UK’s National Living Wage, Lewis called for fuller debate, saying that while Tesco was supportive of the living wage when announced, “our concern, and the concern of many colleagues, is that there is pressure to increase base pay at the expense of benefits. We don’t think this is the answer.”

 Tesco boss Dave Lewis

Call for more government-industry consultation, collaboration

Lewis went on to discuss the need and – opportunity – for the retail industry and business to work closely with government on three issues.

“Firstly, I would encourage the industry and Government to sit down at the highest level and consult on the multiple policy changes that are affecting the industry, to share together the consequences of higher rates, the living wage and initiatives such as the apprenticeship levy,” he said.

Secondly, he called for partnership on employment, skills and training challenges.

And Lewis said health and food education is the third area with real potential for partnership and innovation.

“Millions of Britain’s shoppers are weekly Tesco customers.  We have more than 40 million transactions a week. And when we reformulate, we can remove billions of calories from their shopping trips.”

Tesco estimates it has helped save around 1,500 lives through joint efforts to reduce salt and its action on soft drinks means the average customer is now buying 20% less sugar in such drinks, examples of just some of Tesco’s health initiatives. “We make large scale contributions to heart health, cancer research and the fight against diabetes,” he said.

“I want to partner and innovate more on health. Not because I want to burnish Tesco’s image but because two thirds of supermarket shoppers want me to,” he said.

“We are uniquely placed to nudge millions of people every week towards healthier choices. Our customers want it and the government can benefit greatly from it… if we can meet in the middle ground. Nurturing growth – social value alongside economic value – in an era of extraordinary change needs a new level of collaboration.”

Lewis was speaking at the CBI conference. The CBI is the UK’s premier business lobbying organisation, providing a voice for employers at a national and international level.

Read the speech: http://www.tescoplc.com/index.asp?pageid=17&newsid=1242

Images: https://www.flickr.com/photos/tescomedia/albums

 

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Snapshot of the apple market in Taiwan

Taiwan’s love story with fruit remains undiminished

A new report by the USDA’s Global Agricultural Information Network provides valuable insights into the apple market in Taiwan.

Here are some of the repoort’s highlights:

Apples and Taiwan

Apples are the most heavily consumed imported fruit in Taiwan, which has one of the world’s highest per capita consumption rates.
But apples are losing ground to other imported fruits such as cherries, grapes, peaches and berries.
Fuji is the overwhelmingly favourite apple variety, accounting for 90% of total retail.
Red & Golden Delicious, Granny Smith, Gala, Pink Lady, Ambrosia and Aurora make up the remaining 10th of retail apple sales.
Washington apples are extremely popular. (Taiwan one of the top 5 export markets for Washington apples.)
Though eaten year round, significantly more apples are bought in Taiwan in autumn and winter – the prime production months for northern hemisphere growers. (During the summer months, local tropical fruits, such as mangos, papaya, and lychees, dominate.)
Reasons for this include that the apple is perceived as a ‘cool weather‘ fruit and also it is incorporated in several festivals held over this period.

Taiwan’s apple imports

With just 1,506 tons in 2014/15, Taiwan’s declining apple production meets less than 1% of domestic demand so it is reliant on imports but is a relatively mature market for fresh apples.
In 2013/14, it imported a record high 160,756 tons of apples (valued at nearly US $240 million) but in 2014/15 apple imports fell to 156,007 tons (valued at nearly $239 million), with importers expecting 160,000 tons for 2015/16.
Taiwan currently applies a 20% tariff on all apple imports.

Market share of Taiwan’s leading apple suppliers in 2014/15:

  • US: 41.2% (64,264 tons)
  • Chile 29.8% (46,522 tons)
  • Japan 14.9% (23,260 tons)
  • New Zealand 10.7% (16,673 tons)

United States

The US share of the Taiwan import market for apples began a long-term downward trend in 2000 but despite this decline, the US is expected to remain the dominant supplier of apples to Taiwan over the next few years.
In 2014/15, US apple exports to Taiwan increased nearly 29% from the previous year, to 64,264 tons ($79.1 million).
Thanks to an expected record harvest in Washington, which typically accounts for 90-95% of total US apple exports to Taiwan, the US is forecast to hold its position as the leading supplier of apples to Taiwan in 2015/16 with exports of 65,000 tons.
GAIN says importers prefer US apples for the high-quality and consistent supply.
‘New’ rivals for the US are Japan, New Zealand and Korea.

Japan

Japanese apples, accounting for about 15% of the total apple import market in Taiwan, grew 40% in 2014/15 to 23,260 tons thanks to depreciation of the Japanese yen and Taiwan consumers’ decreased concern about potential radiation leaks from nuclear power plants in food products from Japan.
While the US,Chile and New Zealand are still focused on supplying Taiwan market with traditional varieties, Japan is having great success introducing less common varieties in order to maintain the ‘premium’ image and justify higher prices.
It is not uncommon to find Japanese fruit in the market priced at 10-20% higher than other competitors.
Despite Japan being ranked third in terms of import volume, when comparing import value, Japan’s share increased to 28.4% last year and it enjoyed an export value of $2,910 per ton – 137% higher than that of the US at $1,230 per ton.
“This higher margin clearly indicates that Japanese apples continue to dominate the high value gift giving market in Taiwan due to their premium quality and excellent reputation in the perceptions of both traders and consumers,” the report says.

China

China remains prohibited from exporting fresh apples to Taiwan due to phytosanitary concerns.

General fruit consumption in Taiwan

The vast majority of people in Taiwan view fruit as an important part of their daily diet.
Fruit is often consumed as a snack or dessert.
It is the most common food served to visitors at home or in the office.
Unless bought solely for personal consumption, the colour, size, and general appearance of fruit are typically the buying decision factors to traders and customers in Taiwan.
The “best-looking” fruit, typically sold in gift packaging, fetches the highest prices.

Fruit as a gift in Taiwan

People send food products in gift packages to their friends and relatives during 3 major lunar-year festivals:

  • Chinese New Year (usually in February)
  • the Dragon Boat Festival (usually in June)
  • the Moon Festival (usually in September).

Fuji apples replaced Red Delicious many years ago as one of the most popular gift items during the lunar New Year holiday in Taiwan. Thanks to their colourful appearance and relatively larger size, Japanese apples are the most popular gift item during this season.
 

Source: Taiwan: Fresh Deciduous Fruit Annual November 4, 2015 Attaché Reports (GAIN)

Images:
1. Taipei at night, with dreamy sky by Chris: https://www.flickr.com/photos/63138333@N00/314845827
2.  Taiwan-taipei vista de noche ciudad by n23club: https://pixabay.com/es/taiwan-taipei-vista-de-noche-ciudad-497003/

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Major growth, solid profits in New Zealand’s deciduous fruit sector

The deciduous fruit sector in New Zealand is experiencing its third year of solid profits. The sector is now well into a major expansion phase, moving towards a goal of increasing export receipts to NZ$ one billion by 2022.

The deciduous fruit sector in New Zealand is experiencing its third year of solid profits, according to a new USDA Global Agricultural Information Network (GAIN) report.

The sector is now well into a major expansion phase, moving towards a goal of increasing export receipts to NZ$ 1 billion by 2022, up from its best so far of NZ$ 620 million for the year-to-date 2014/2015, it says. And the country’s planted deciduous tree area is estimated to be up 8% for 2015/16 at 9,750 ha and harveste area is estimated at 9,500 ha, a 6% rise on 2014/2015.

New high color varieties, primarily targeting Asian tastes, are being planted.

A cold dry winter in the Hawkes Bay region followed by a rapid increase in temperatures in October 2015 set the trees up for a compressed high volume flower blossoming in October, which augers well for the harvest in March/April 2016, GAIN said.

“Total deciduous fruit production for 2015/2016 is forecast to increase two percent, reaching a level of 565,350 metric tons (MT). With a greater volume of domestically produced apples in abundance during 2014/2015 it is estimated that domestic consumption of apples and pears will be 80,500MT, a seven percent upward shift from the previous year. Again for the 2015/2016 year there will be plenty of domestic fruit in the market and consumption is expected to remain at 80,000MT.

“The greater volume of the apple crop which has made export grade in 2014/2015 means processing volumes are unlikely to have increased as much as was expected back in April 2015. It is now estimated total deciduous fruit processing volumes will be 147,350MT which is still a 28% increase over the 2013/2014 year.”

“For the current year 2014/2015 total deciduous fruit exports are now expected to reach 331,000MT which amounts to a three percent increase from previous estimates. More of the total crop was export grade than had been expected after the hail and storm damage, which has now facilitated the export tonnage increase. For 2015/2016 it is forecast the volume will rise to 342,000MT, a gain of three percent.

“Extraordinary growth in the Asian markets has translated into large export volumes for New Zealand. In fact, in 2014/2015 about 40% of the New Zealand apple export volume has gone to Asian destinations, up from 31% just two years ago. In contrast New Zealand apple exports to Europe and the UK, for so long the key region for export volume demand and overall export returns, have diminished from taking 41% of the export volume in 2012/2013 to this year, 2014/2015, 38%.

“A key element in the relative success enjoyed by New Zealand deciduous fruit exporters in Asian markets has been the negotiation of market access protocols containing sanitary and phytosanitary (SPS) conditions that growers in New Zealand can comply with,” GAIN said.

Source: New Zealand: Fresh Deciduous Fruit Annual, November 5, 2015, Attaché Reports (GAIN)

Image of Tukituki River and Te Mata Peak, Hawkes Bay, New Zealand by Phillip Capper from Wellington, New Zealand [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

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Argentina also sees recovery in apple, pear crops

Argentina’s fresh apple production is likely to rebound to 720,000 tons and pears to 650,000 tons next year, thanks to favourable weather conditions.

Argentina’s fresh apple production is likely to rebound to 720,000 tons and pears to 650,000 tons next year, thanks to favourable weather conditions.

But even so, that’s down on the ‘normal’ levels of about 900,000 and 850,000 tons respectively due to decreased planted area as a result of the economic crisis Argentine producers have faced in the past 7-8 years, says a USDA Global Agricultural Information Network (GAIN) report.

The country’s apple and pear exports are forecast to increase to 130,000 tons and 310,000 tons, respectively, due to production increases and less fruit supplies in the Northern Hemisphere, and domestic consumption is expected to rise, also as a result of production increase, the report says.

Meanwhile, due to decreased planted area, table grape production is set to fall 10% to 100,000 tons, exports to drop slightly to 20,000 tons and domestic consumption to fall as a result of the lower production.

Distribution channels

GAIN says that the Argentine domestic fruit market is highly concentrated in Buenos Aires City and its suburbs, where over one third of the country’s total population lives, though the country’s government has been trying to decentralise it through the creation of a few fruit distribution markets in the interior of the country.

There are three channels for the distribution of fresh fruit:

  • large exporters from Alto Valle, who use the domestic market as a secondary outlet for their products and have hyper and supermarkets as their main customers
  • medium-sized firms handling smaller volumes and focused on quality
  • small companies handling small volumes that are distributed to pre-established points of sale in larger cities.

Challenges for Argentina’s fruit sector

GAIN said Argentina needs to improve the quality of its fruit, in order to meet the requirements of demanding export markets, and develop new apple and pear varieties. “Among the bicolor apples, only some Gala and Braeburn clones have succeeded in Argentina. Others, like Fuji, Jonagold and Elstar, did not adapt well to local conditions. Among yellow apples, Golden Delicious is the classic variety. Although it adapted well to Argentina’s production conditions, this variety has lost popularity due to marketing problems. Among the red varieties, Red Delicious is the most widespread variety. Since it is sterile, it must be crossed with other varieties such as Gala, Fuji, Elstar, Golden Delicious, Granny Smith, Jonathan and Ozarkgold.

“In Argentina, many Red Delicious clones, such as Starkrimson, Red Chief, Hi Early, Top Red Delicious, Oregon Spur, or Red King Oregon and Cooper 8, have been adopted. The second most important apple variety is Granny Smith. During the past few years, a shift towards the Royal Gala variety (bicolor) has occurred as international markets are demanding fewer red varieties.

“Among the most popular pear varieties, William’s accounts for about 45% of the Argentine total pear production, followed by Packham’s Triumph with a 30% share. Other varieties are Beurre D’Anjou, Red Bartlett, Abate Fetel, Beurre Bosc, Beurre Giffard, Clapps Favourite, and Red Beurre D’Anjou,” GAIN said.

Image: “Argentina orthographic” by Addicted04 – Own work with Natural Earth DataThis vector image was created with Inkscape.. Licensed under CC BY 3.0 via Commons

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EU Minor Uses Coordination Facility underway

An EU secretariat has now been set up to share information and experience and coordinate Member State work on making more plant protection products available to growers for minor uses and specialty crops.

An EU secretariat has now been set up to share information and experience and coordinate Member State work on making more plant protection products available to growers for minor uses and specialty crops.

Such niche crops may be of a high economic value for farmers, but are usually of low economic interest for the agro-pesticide industry, according to a press release from the new EU Minor Uses Coordination Facility.

Its mission is “to enable farmers in the EU to produce high quality crops by filling minor uses gaps through efficient collaboration to improve availability of chemical and non-chemical tools within an integrated pest management (IPM) framework.”

As of September 1, Jeroen Meeussen has been the coordinator for the new EU Minor Uses Coordination Facility. Speaking from his office in Paris, Jeroen said he looks forward to the challenge of improving co-ordination between countries, grower organisations and industry to develop solutions for minor uses.

“One of my priorities will be to liaise with applicants, growers, Member States and other relevant stakeholders. I will also be drawing on experience from other minor use projects around the globe,” he said.

Jointly funded, initially, by the EU and the governments of France, Germany and the Netherlands, the facility is hosted by the European and Mediterranean Plant Protection Organisation (EPPO) in Paris. The EU has committed to provide 50% of the costs for the first three years.

The main task of the facility will be to address gaps in pest and disease control measures available for so called ‘minor crops’ and for minor pests on other crops for farmers as well as for gardeners.

Visit the new EU Minor Uses Coordination Facility website.

More articles on minor uses here.

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Good year for apples and pears in Turkey

Turkey is the second biggest producer of apples in Europe behind Poland. Turkey’s diverse geographic regions allow for production of 460 varieties of apples, but only 10 of these are marketed commercially.

Turkey is set for a good year (July 2015-June 2016) for apples and pears as production recovers – up 21% and 37% respectively – after a substantial drop the last year, says a recent USDA GAIN report. Apple production is expected to be 2.54 million tons and pear production 395,000 million tons.

Table grape production, however, is expected to be down 16% to 1.88 million tons due to frost damage in the Aegean region in the spring of 2015.

Middle Eastern countries (namely Iraq, Saudi Arabia, Syria, and Egypt), Bulgaria and Russia are the top export destination for Turkish deciduous fruits. Turkey’s exports of all such fruits increased to Russia in MY 2014 due to Russia’s import ban on European products and the increase was especially substantial in apples (from 319 to 11,848 tons) even though there was an overall decrease in apple exports as a result of decreased production, the report says.

Turkey’s exports of apples and pears are predicted to increase this marketing year due to increased production figures and the eventual decrease in prices, but its grape exports are expected to drop more than 20% and imports are expected to increase accordingly.

Image: the Turkish pear variety Deveci
Source: Global Agricultural Information Network (GAIN) report on Turkey “Fresh Deciduous Fruit Annual”

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Smoked garlic a sticking point for Codex garlic standard

The US has argued that smoked garlic is a processed commodity and should not be included in the fresh garlic standard being developed within the framework of the Codex Committee on Processed Fruits and Vegetables (CCPFV).

Smoked garlic is a processed commodity and should not be included in the fresh garlic standard being developed within the framework of the Codex Committee on Processed Fruits and Vegetables (CCPFV). That was the position taken by the US at the committee’s 19th Session, held October 5-9 in Mexico.

A report on the meeting published by the USDA says that during discussion on the proposed draft standard for garlic, most issues were resolved except for the inclusion of “smoked” dried garlic. “Some delegations supported the U.S. position in expressing concern that certain smoking practices may alter the taste and/or appearance of this raw agricultural commodity,” the US delegate said in the report.

“The United States is on record for expressing concerns that smoked garlic may be outside the scope of the CODEX CCFFV terms of reference, which clearly state: ‘to elaborate standards for fresh fruits and vegetables.’ Since smoked garlic should be considered ‘processed,’ it should be referred to the Codex Committee on Processed Fruits and Vegetables (CCPFV) for further discussion.”

In regard to other issues discussed at the meeting, the delegate reported the following:

Proposed Draft Standard for Kiwifruit: The Committee discussed the draft standard and agreed to exclude Actinidia species such as the A. arguta (kiwiberry) from the standard. The standard was aligned with the approved sections of the revised CCFFV standard layout. There was lack of consensus on size-based classes; i.e. the inclusion of different minimum sizes (diameters) per class along with the minimum maturity requirements. The draft standard was advanced to Step 5 for continued elaboration.

​Actinidia-arguta, commonly called kiwiberries

Proposed Draft Standard for Ware Potatoes: Differing view/positions on several provisions of this proposed draft standard such as sprouting, green coloration, presence of rot and allowance for the presence of soil were not resolved at this session. Therefore the CCFFV agreed to return the proposed draft standard to a working group, led by India, at Step 3 for further revision and consideration at its next session.

Proposals for New Work: The Committee considered proposals for the elaboration of new Codex Standards for fresh dates (India), shallots (Indonesia) and yams (Costa Rica). The proposal from India was approved as new work by the CCFFV, subject to CAC approval, while those from Indonesia and Costa Rica were returned for redrafting and submission at the 20th CCFFV session.

Proposed Draft Standard for Aubergines/Eggplant: The Committee made changes to this draft standard based on the product’s characteristics and trade practices to harmonize with an international interpretation. The Committee agreed to forward the draft standard to the 39th Session of the Codex Alimentarius Commission (CAC) in June 2016 for adoption at Step 5/8. The U.S. delegation was instrumental in ensuring that this standard harmonized with the revised CCFFV Standard Layout to better reflect global trade and regulatory practices.

The full report, including discussion of the Proposed Revised Layout for Codex Fresh Fruits and Vegetables Standards, can be read online at: http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/us-codex-alimentarius/recent-delegation-reports/2015/delegate-report-19-ccffv

The 20th CCFFV Session is tentatively scheduled in 18 months.

Read other reports by Eurofresh Distribution on the Codex Committee on Processed Fruits and Vegetables (CCPFV) here.

Image sources:

  • Smoked garlic: by Jeremy Keith from Brighton & Hove, United Kingdom (Smoked garlic  Uploaded by Fæ) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via
    CommonsWikimedia
  • “Actinidia-arguta”: by Hiperpinguino – Own work. Licensed under CC BY-SA 3.0 via Commons
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Carrefour open its first City store in a French airport

Carrefour’s first City convenience store located in a French airport is based in the departures lounge of Paris-Orly’s south terminal. Open 6am–10pm, 7 days a week, it stocks nearly 3,000 items.

Carrefour has opened its first City convenience store located in a French airport.

Based in the departures lounge of Paris-Orly’s south terminal, the new outlet has 200 m² of sales area and stocks nearly 3,000 items.

In a press release, Carrefour Group said the store – open 6am–10pm, 7 days a week – features:

  • a wide selection of organic products, as well as hot and cold snacks and gluten-free products
  • Carrefour brand products – including a special area for Reflets de France regional products – as well as national brand products
  • on-site bread slicing
  • the same prices as those found in town centre City stores

Carrefour said the Orly City store features a wide selection of products to meet customers’ day-to-day shopping needs, as well as what they need to eat on-the-go: grocery products, fruit and vegetables, home maintenance products, ready-to-cook/eat products, snacks, etc. It said the store will also contribute to the airport’s business dynamic and help local employment – 6 employees will be recruited from neighbouring towns.

“By entering into this new partnership and including a leading name that has become synonymous with retail in France, Aéroports de Paris is seeking to provide travellers and visitors – as well as the airport’s employees and partners – with as broad a range of stores as possible. We want to ensure that our airports are accessible to all of our customers,” said Aéroports de Paris CEO Augustin de Romanet.

According to Carrefour CEO Georges Plassat: “This initiative that we have launched with Aéroports de Paris is a shining example of Carrefour’s unique multi-format profile. In many countries, we anticipate our customers’ needs, creating stores that are specifically designed to meet their requirements, selling products and providing services designed to make their lives easier.”

JB