The last Pink Ladies from RA storerooms are being packed by Kromco in a year that inverted the usual 60:40 proportion of Pink Ladies to Cripps Pink. In a season with not enough cold units for good colouring, much of South Africa’s reduced Pink Lady volumes with 40% block colour are going to the Europe and the UK where there is a large demand, even if in some instances South African volumes weren’t enough to cover European and UK supermarket programmes and the importers had to supplement from other producing countries.
“At the start of the season, with a few cool days, we thought the colour would be good but this year the colour on Pink Lady isn’t great,” explains Leardt van der Burgh, marketing manager at Kromco. “We’ve had to cut back on our retail programmes and there is a bit of a shortage in the European market which can have a positive effect on prices. Pink Lady is a sought after item in Europe.”
“The effect of the freeze in April and May in Europe caused a fair bit of damage, especially in Italy, Holland and Poland. Poland in particular has a big influence on the Russian and Middle East apple market and I think in the 2018 season this could create opportunities for us.”
In fact, despite pessimism earlier in the season, this year already is turning out to be a stable apple season for South African exporters, especially regarding Golden Delicious. “Last year Goldens were our biggest concern but this year we pack Goldens every week and as soon as they are packed, they move out. This flow is what’s bringing about stability,” explains Van der Burgh. “At the start of the season everyone was sceptical about the African market and Goldens and the effect of our fluctuating currency but the currency has since stabilised somewhat.”
He goes on to say that the price for apples obtained in the Russian market is now on par with the African market, coupled with larger demand from Nigeria and the reliable market of Bangladesh, and it results in a steady movement of Goldens, still South Africa’s largest apple variety.
In South Africa there is a focus on the impact of domestic political decisions and the credit downgrades on our economy, Van der Burgh notes, but factors like Trump in the White House and Brexit has had a substantial negative influence on the Rand. “However, everything considered, things aren’t looking bad. UK demand which took a dip in previous seasons is picking up nicely again. That said, consumers worldwide are under pressure.”
“The South Africa apple industry put a lot of effort into developing markets in the east, particularly markets for small apples because as an industry our apples tend to be on the small side. Markets like Africa, Russia and the Middle East are good in that respect, as well as newer markets like Bangladesh. In India the market for our pears, specifically Packhams, has grown tremendously.”
Given the particular climatic conditions of South Africa, and the Western Cape in particular, growers need to focus on the varieties with a prospect of successful cultivation. Van der Burgh, who sits on the Kanzi Board of South Africa, uses this variety as an example of one whose production practices still need to be fine-tuned for South African conditions. “The question remains: can we produce the Kanzi as well as Europe does? Pink Lady we are able to produce very successfully.”
Kromco will market pears for two more weeks and all of its apple varieties until the end of the year, with the exception of Royal Gala, of which volumes will run out in four or five weeks, limited by available volumes and strong demand.
For more information:
Leardt van der BurghKromco
Tel: +27 21 850 6819
Email: [email protected]