Newsletter 176 – 26.11.2024
The overseas season of the southern apples and pears has ended, confirming the tendency of recent years: less pome fruits are directed to traditional markets, such as Europe and North America; while shipments to other regions are growing . For Chile and Argentina, it is the Latin American countries who acquire relevance; while for South Africa and New Zealand are the Asians ones. In the case of South African apples, in addition, their African neighbors are increasing their demand.
Europe and North America
The main reason why Europe and North America are importing less apples and pears from the Southern Hemisphere is that they have strongly increased their own crops and have perfected conservation methods. The European Union has strongly encouraged apples cultivation in Eastern European countries as an attractive economic alternative. Belgium and Holland, on the other hand, became strong with their Conference pear.
In the case of North America, the cultivation of pome fruits developed strongly, especially in the northwest of the country, to the point that in 2023/24 the local stock exceeded all the previous records. On the other hand, thanks to new technologies, it was possible to improve the conservation of fruits: they can currently store apples and pears in optimal quality for 12 to 18 months. In this way, the incentive for buying freshly harvested southern fruit loses strength. This phenomenon also occurs in the case of organic fruit, a fact that reduced Argentina's possibilities to locate its organic production in the northern markets.
Years before, the orders of the importers of the North emerged in February and March; now this occurs 1-3 months later. Another fact that affects southern exporters is the customer's tendency to prioritize local consumption. This slogan is used by northern organizations and has a very good reception in consumers.
About 10 years ago, more than half of overseas shipments were directed to Europe. It is currently just a third. Similar tendency occurs with the US, which became a secondary destination.
Latin America
The region is clearly the new mecca of Argentine and Chilean apples and pears, receiving more than half of the shipments. In some cases its participation as destination even reaches 65-70%.
For Argentina, Brazil is by far the main buyer, emerging in recent years a direct dependence on the economy of the Rio Negro Valley to this country. It is not surprising then that companies put all their efforts to develop this market, participating in events in Brazil, seeking to access the northern regions, etc. But this great dependence with a market has its risks. Clear example of this was the last devaluation of the Brazilian real, which reduced the possibilities of the imported fruit in the Brazilian markets.
In the case of Chile, the main destination is Colombia, which imports between 60-80,000 tons annually, an amount that coincides with the volumes that Chile sends to Europe. Colombia, with its large population, is the second in importance in South America (52 million). With an important middle class, is becoming one of the main destinations of Chilean fruits (apples, tangerines, grapes, blueberries). The second market in importance for Chile is Brazil, with 50-60,000 tons. This country is acquiring growing volumes, given the losses that its local production is suffering, a consequence of climate change. This year the Brazilian harvest suffered again losses due to rains and extreme heats, floods and hail.
Asia
It is the main market for apples in New Zealand and South Africa. Only in the case of South African pear, Asia is the second destination, keeping Europe on the podium. Within the great Asian continent, very different regions are identified, each with their own characteristics.
Far East (China, Japan, Korea, Taiwan)
They are the main markets for southern apples. Within these, China predominates, which imports directly or through Hong Kong. Despite being the world's world producer of apples, it imports growing volumes. Local apples are usually of lower quality, sending a high percentage to the industry. That is why they look for a superior quality product in other apples. For supplier countries it is very important to offer very good quality fruits, sweet taste and attractive appearance for this reason. The other destination of importance is Taiwan, being for Chile the main destination, sending mainly Fuji and Gala.
Southeast Asia (Vietnam, Thailand, Malaysia, Singapore)
It is becoming into an increasingly attractive region for New Zealand, due to its population (700,000 million inhabitants), a thriving middle class, interest in imported fruit and the relative closeness. In the first place is Vietnam, who is acquiring 50,000 tons per year, almost reaching the levels of what they send to China. Other countries in the region receive between 10-30,000 tons per year.
South Asia (India, Bangladesh)
India is the new star market for New Zealand and Chile. After overcoming some logistics and commercial difficulties, it is increasingly emerging as an attractive market, also supporting in this case in its huge population (1.4 billion), the recent middle class and interest in imported fruit. Bangladesh, on the other hand, usually buy relatively important volumes of economic apples, mainly from Brazil.
Middle East
It is a relevant destination in the case of South Africa, becoming one of the main markets for the pome fruits, but also for citrus, stone fruits and berries. Trade is based on close commercial ties and commercial ties. Although the volumes of apples and pears they buy are not as large as those of the other Asian regions, it is a timely destination for some varieties and qualities.
Africa
In recent years, South Africa was able to locate increasing volumes of apples, especially of traditional varieties and lower qualities in other African countries. In 2023 almost a third of its exports was absorbed by Africa (190,000 tons). First, Nigeria (45,000 tons) stands out, followed by Senegal, Kenya, Zimbabwe, Botswana, Zambia, Ghana, Cameroon, Namibia, among others.
