"After a tumultuous end to the previous pear season, we are off to a good start this year in terms of price levels. Still, the turmoil of last season has left its mark, especially with the unexpected supply at the end of the season," said Mark Vernooij of Urfruit.
"Many traders and retail channels had fully hedged themselves in anticipation of the approaching season's end, which led to low demand for pears outside of fixed programs. Some growers, however, had hoped for a scenario similar to the previous year, resulting in unexpected pressure on prices. This surplus of pears caused significant price drops, and in some cases, pears had to be discarded."
Importance of a sound pricing strategy
"A good price is crucial for the sustainability of a business. However, it is essential to make pricing decisions in consultation with sales partners. The risk that growers take to generate extra revenue may sometimes not outweigh the potential losses. Factors such as price, quality, and product loss, combined with rising costs, must always be considered before making such decisions. Last season offered everyone the chance to sell their products at a healthy price. Unfortunately, this did not ultimately materialize for everyone," Mark observes.
Own cultivation: the picking completed
"The harvest has now been completed, and everything has gone smoothly. It was an intensive period for everyone, but as a team, we accomplished the task. At our own and partner farms, we particularly see a smaller harvest in Belgium. In the Netherlands, while we harvested slightly less volume, the good sizing of the pears makes the tonnage comparable to previous years. This, however, is not representative of the overall production in the Netherlands," Mark explains.
"In the early season, we faced hail damage. Although the Conference pears have mostly recovered, the damage is more apparent in the Lucas and Comice pears. Many retailers are collaborating on how we can find the right balance between visual quality and productivity. Despite the visual limitations, the fruit remains of good quality."
Forecasts and opportunities
"According to figures from Prognosfruit, we do not have a great harvest in Europe this year, with about 2% less than the three-year average. These conditions should create a healthy marketing environment. We see high expectations among growers and traders. While we also see the market positively, we are aware that the consumer ultimately chooses the product. The price determines the size of the buyer group," Mark continues.
"The so-called 'value lines' are attractive to consumers with a smaller budget. However, when the price is high, it becomes harder to reach this group. We have to ask ourselves whether it is wise not to fully exploit channels that serve this target group, especially if we are dealing with product that has slight damage," Mark concludes. "In short, this year offers many opportunities, but it is crucial not to make the same mistakes as last season. Let's work together for a healthy market and ensure a balanced approach to price and quality."
Urfruit is an exhibitor at Fruit Attraction: Hall 6-D08
For more information:
Mark Vernooij
Urfruit
Raadhuisstraat 2A,
7251 AB Vorden
+31 (0)575 472 473
[email protected]
www.urfruit.nl