The need for fruit and vegetable trade between North America and Europe has significantly changed in the past 15 to 20 years. "We used to source apples from France a few decades ago and bell peppers were brought in from the Netherlands," says James Milne with Oppy. At the time, the North American greenhouse industry wasn't as developed and products weren't grown under lights yet, so the window of availability domestically was much shorter. From the Netherlands and Spain, bell peppers were brought into the Eastern seaboard by air and ocean. "Despite these limitations due to the increased scale of the North American greenhouse industry, strong connections with our grower partners there as spot opportunities arise more frequently than one would anticipate."
Citrus from Spain
Citrus was another key item Oppy used to source from Europe, particularly Spain. "Through the late 1990s and early 2000s, we used to be one of the bigger citrus players in Spain and even had a gentleman on the ground working with the grower community," Milne commented. At that time, California's citrus industry was heavily dominated by Navel and Valencia oranges and mandarins were just starting to appear in the market. "Spain on the other hand, was ahead of the curve with a large mandarin supply available." As soon as California's mandarin industry had developed and scaled up, opportunities for Spain lessened. In addition, USDA requirements to ship to the U.S. are quite exhaustive and due to the proximity to other European countries, Spain has been focusing on regions closer to home. These include all of Europe and the Middle East. Spain's neighboring country Morocco, however, has developed into an important citrus source during the northern hemisphere season. "Morocco has a good and diversified mix of varieties, and their fruit is competitive on the North American East Coast," Milne shared.
Kiwifruit from Italy and Greece
One product that continues to find its way from Europe to North America is kiwifruit. "During the northern hemisphere winter season, we are significant receivers of Greek and Italian kiwifruit." In Italy, Oppy collaborates with Zespri and in both Greece and Italy, the company contracts with several growers who have worked with Oppy over many years. The majority of the kiwi fruit in these countries is the green Hayward variety, but some gold and red kiwifruit strains are in development as well. Recently, Zespri gained approval from New Zealand kiwifruit growers to expand their plantings outside New Zealand. The authorization enables the cultivation of SunGold kiwifruit in Italy and Greece amongst others. Today, kiwifruit remains the most consistent produce item finding its way across the Atlantic.
About two years ago, garlic from Spain was added to its mix of offerings. Oppy works with one major grower-partner in Spain, the world's second largest exporter of garlic. Garlic from Spain caters to the Canadian market, but there may be opportunities to expand into the U.S in the future.
Opportunities remain
All in all, the conditions and markets have changed over the years. Developments in the continental U.S. as well as Mexico have resulted in the opportunities to bring produce in from Europe to be variety and timing specific. While trade between North America and Europe isn't as abundant today as it was 15 or 20 years ago, there are still some spot opportunities once in a while. "It is very important for us to keep in touch with our connections in the European industry. There is still some place in the market for specialty citrus varieties," commented Milne. In addition to citrus, there could always be a need for other items due to a lack of supply in the North American market. In these situations, product can be shipped by air for arrival within just a few days."
Expansion of grower partnerships
With the growth of the North American produce industry came an expansion in grower partnerships for Oppy. In North America, partnerships have been formed across all Oppy's nine primary categories, including citrus, grapes, greenhouse grown produce, berries, avocados, apples, pears, stone fruit, and kiwifruit. As a result, the company generates CAD 1.5 billion in sales annually. Within the berry segment for instance, Oppy has been selling fresh cranberries under the Ocean Spray brand for more than 20 years. This partnership also includes facilitating exports of fresh cranberries to Europe. Seven years ago, the partnership expanded, and the majority of fresh blueberries, strawberries, raspberries, and blackberries grown by partners in the U.S. and Mexico are sold under the Ocean Spray brand.
Within the avocado segment, Oppy acquired a 65 percent stake in Eco Farms, grower and marketer of California avocados. The partnership spans across 700 acres of mature avocado groves in the Golden State as well as an import program. New Zealand based T&G has an investment in Oppy's U.S. company, together bringing different apple varieties to market, including JAZZ and Envy.
South America
From South America, a vast array of products is exported to different continents around the globe. "We have a fully owned subsidiary in Santiago, Chile as well as a 50/50 joint venture in Lima, Peru." Both offices are setup to service the North American market during the northern hemisphere off-season. In addition to North America, the export departments in these countries service communities in Europe, Asia, and the Middle East.
This year, Oppy will be celebrating its 167th anniversary and some of the current grower partnerships were formed many decades ago. "Several New Zealand kiwi and apple growers have been with us for more than 70 years and many growers in South America, we've been working with for more than 60 years. The returns for these growers and thus their potential livelihoods are in our hands, and we hope to be able to care for them for many more years to come."
For more information:
James Milne
Oppy
James.milne@oppy.com
www.oppy.com