This summer was one that many fruit growers and traders will not soon forget. The combination of low consumption and falling prices created a downward spiral in the pear market. "We have customers all over Europe, and they all said they've never worked under such poor conditions," explains Christophe Van Haelst of Van Haelst Fruit and VHM Fruit Trade. "Both in terms of consumption and pricing. We haven't experienced a summer this bad in a long time."
So what caused this? "I think it was a combination of factors," Christophe explains.
"Since November, I had been telling our growers to sell because the prices for pears were good. However, many forgot to sell, and in January, we saw that, particularly in the Netherlands, many sorting companies were inactive because no one wanted to sell. A grower often only looks back one year, and the year before, pears were selling for one and a half euros at the end of the season, with sorted ones going for over two euros for a period. I've never experienced anything like it. However, even then, those prices were only available for a small percentage, so last year, a significant portion also wanted to sell at those prices. Unfortunately, due to disappointing consumption and high stocks, this did not pan out."
When asked if such situations can be avoided in the future, Christophe is firm. "I don't believe so. We were already sold out very early last year because I had a feeling, but you can never be certain. No one in the industry reveals their inventory, so there is never a clear insight into what is still available. I understand it, as it can be used against you, so everyone participates in this. The downside is that you can be caught off guard toward the end of the year. And that's exactly what happened."
Smaller pears this season
Looking at this year, however, the grower/trader remains cautiously optimistic. "There were many concerns about the harvest for a long time. In some regions, we hear stories of growers who picked only 50 percent, but we're only about 3 percent down from last year. However, we see that the market has been quite sluggish in the first few months. Last year, it was a bit busier, but summer fruit ended earlier then. Now, it is still widely available in the market. Moreover, many countries, such as those in the Balkans, have their own production that they want to market first in September/October. You can see that prices are currently being pushed down, but before this all stops, things should get moving. Additionally, as it gets colder, consumption is likely to increase, so I expect that things will improve a bit in October and November."
Christophe also notes that there will be somewhat fewer smaller pears this year, but he suggests that this may not necessarily have negative consequences. "We all have slightly larger pears. Pears are sold by the kilo but eaten one at a time. So, if a family usually buys a pack of seven pears per week, and they are size 55, that's a kilo. However, if they are size 65, that amounts to one and a half kilos. They still buy that one pack, but our kilos sell faster. You always see that."
"People worry that there are fewer smaller pears, but prices will adapt," he continues. "The smaller pears will become more expensive, but they will never reach €1.50, and neither will the larger sizes. It's going to be a good year as long as everyone stays calm and doesn't forget to sell. That was the motto last year, and it's no different this year. Right now, there's a dip, but it's still far too early to push, pull, and drag. As I said, things will pick up. During the Fruit Attraction, a clearer picture will emerge, but the key remains to 'act wisely.'"
From 4 to 100 hectares
This is the mindset with which VHM Fruit Trade has rapidly grown to its current position. Christophe, along with his wife, decided to start the trading company in 2009. "At that time, I had stepped away from the family business and decided to work with 4 hectares of pears. I've always had the desire to build something on my own, and over the years, we have grown organically."
It sounds like it happened effortlessly, but as he explains, that was certainly not the case. "We started with nothing—just a few hectares of land and no buildings. It was a matter of working hard, but also having the courage to take risks. You have to dare to plant, to enter the trade, and to challenge the status quo. You don't always do this consciously, but I remember our first time at Fruit Logistica when we were looked at as intruders in the trade world. You have to push through that, and now we have about 100 hectares of pears under our cultivation, we trade a lot of pears from fellow growers, and we are currently expanding, with plans for a new facility that will soon occupy 2 hectares."
"We had the advantage of being able to approach supermarkets with the story of sourcing directly from the grower," Christophe explains. "This resonated well because we had that background. On the flip side, you also encounter challenges when stepping into the trade for the first time. Especially when you approach supermarkets 6 to 7 years ago, they demanded consistent supply. You have to prove that you can meet those demands, and I think we can say that we have established a strong company with a solid customer base."
For more information:
Christophe Van Haelst
Van Haelst Fruit / VHM Fruit Trade
Kieldrechtsebaan 85
BE-9130 Verrebroek, Belgium
+32 (0)3 336 16 47
[email protected]
www.vanhaelstfruit.be