Kurt Ratschiller, sales manager of VIP, knows the dynamics of the apple market very well and provides a clear and detailed view of the current situation and future prospects. With an 8% growth in Italian apple production compared to 2023, as reported by Assomela, Ratschiller emphasizes that "this season is different from the previous one".
"European stocks finished completely during the past campaign, which rarely happens, so we got off to a good start in the autumn. Afterward, however, the market lost this momentum and only recovered in the spring. On the other hand, stocks were not completely finished at the beginning of the current season, so the market started off normally for us, in line with the average of recent years. Compared to January 2023, the market was much more dynamic in January 2024. Demand is good from all our major markets. European stocks were already low on 1 January, and some production areas will run out of stocks even earlier than usual. We are therefore optimistic that the second half of the season will be positive. This applies to both integrated and organic productions."
Organic apples faced climatic challenges in the Vinschgau Valley, but harvesting ended successfully. Ratschiller stresses that "the stocks of the main organic players in Europe are slightly lower than last year. Unlike integrated production, we did not have an overlapping of old and new harvests, so we immediately started with the new harvest in the autumn. Until 1 January, we sold the same amount of organic apples as the previous year and we also have the same amount in stock."
"The difference lies in the varieties. We harvested more red and two-colored varieties, but far fewer Golden Delicious. We try to do what we can, but it seems that the Golden season will end soon this year. However, we will be able to cover the second half of the season well with our first organic varieties, Gala and Pinova. Then there are the club apples, which are also available as organic: this highlights the importance organic products hold for us and shows our position as the market leader for organic apples in Europe. What is more, this season we have even slightly increased our volumes to the main markets of Germany, Scandinavia and Italy, at satisfactory prices. After difficult years, we are generally noticing that the market for organic apples is growing slightly once again."
Club apples increasingly strategic for VIP
Volumes of some of the main varieties such as Ambrosia, envy, and Cosmic Crisp have increased, and the quantities of Kanzi, Kissabel, Shinano Gold / Yello, and SweeTango™ are in line with last year. Fifty to sixty per cent of each variety remains within the national borders. The next largest markets are, in order of importance, Spain, Germany, Scandinavia and Eastern Europe.
"Italy is our main market and it is the most important also for each individual club variety. This is also true for our Kanzi, which is among the best-known and most popular club apples in Germany. The fact that a more acidic apple is also finding a market in Italy is perhaps proof that these apples need to be explained well to consumers. We are investing a lot in this, even working with an apple sensory expert who has helped us to create precise and distinctive profiles for each variety. One apple is not the same as the other, and the distinction by color alone (yellow, red, green, and two-colored) is no longer enough today. Sophisticated consumers are willing to pay a higher price for a unique taste experience," comments Ratschiller.
Scandinavia remains an important market, also because of the good price level. "However, we are not underestimating the Italian market, which is also willing to pay for a quality product. What makes the Scandinavian market stand out is the penetration of the organic product. The share of organic produce in Scandinavian countries is still the highest in Europe and, unlike for integrated production, Italy is not our first market when it comes to organic produce, as it ranks behind Germany as a single product destination." A curious fact is that "in Denmark, which has only 10% of Italy's population, we sell almost as much organic apples as we do in Italy."
With the arrival of Cosmic Crisp in the European markets on 14 January, VIP recorded a 30% increase in sales compared to the previous year. "Our sales team went to the cooperative to see the apples together with our technicians before the start of the campaign. I must say that we were very pleased with the appearance and taste of the product. We started two weeks earlier than last year and, as a VIP, we have sold 30% more than in the first few weeks of last year so far. I would say that it is a good sign, for an apple that we will soon be able to supply the whole year round," comments Ratschiller, who is satisfied with the quality of the product.
Logistical problems and geopolitical instability still ongoing
As for the global context, VIP faces logistical and geopolitical challenges as historical markets such as Russia and Algeria are no longer accessible. However, thanks to a wider assortment and a presence in 50 markets worldwide, the Consortium manages to navigate through these uncertainties.
"The fact that historical markets are no longer accessible for various reasons is nothing new. Just look at the Russian market or even the Algerian market, which we used to supply and no longer can. Or Egypt, where our volumes used to be much larger. Luckily we have worked on a wider assortment, which allows us to be present in as many as 50 markets worldwide, and we have a European market that is still interesting for us. We therefore have a good variety and market base to find solutions even to unpredictable situations. Our competitors are finding themselves in the same situation for some destinations because they have the same protocols. All this is not new, I would say that it has become the norm and one of the most important challenges for companies operating internationally."
Fruit Logistica 2025
"We will attend the Berlin fair with practically the full sales team, which confirms that Fruit Logistica remains a very important trade fair for us. While the three-day event in Madrid at the beginning of the season is a perfect moment to reason with customers about planning, the Berlin fair is important to set the plans for the second half of the season, with the data on the January stocks at hand. After all, Germany is one of the main markets for traditional VIP production after Italy, and the first market for our organic apples," Ratschiller concludes.
For more information:
www.vip.coop