Expectations were met, with numerous commercial meetings taking place. While Madrid at the beginning of the season is the perfect moment to discuss planning with customers, Berlin, since stock data becomes available in January, is crucial for setting the strategy for the second half of the season.
Sales Overview
We discuss the market situation with Kurt Ratschiller, Head of Sales & Marketing, who shares his insights: “The campaign began with sales in line with the average of recent years, and since December, markets have been more dynamic. The stock situation in Europe is reassuring, and despite a strong harvest, varieties such as Gala have opened up market opportunities. We are optimistic about the second half of the season. The quantity of our leading variety, Golden Delicious, is lower than last year, and sizes of 80+ will become rare. “Cosmic Crisp®" has recently kicked off with great success, and new varieties are proving to be key assets in responding to emerging consumption trends, confirming their growth potential.
Ratschiller also clarifies: "While the Italian, Scandinavian, and British markets are showing a steady trend, our expectations in Germany are focused on the second half of the season when demand should increase, particularly for Kanzi®, Braeburn, and Jonagold. Spain also presents promising prospects. Positive notes come from India, where we are increasing Red Delicious volumes despite greater competition from other players, with logistics costs slightly decreasing despite the Suez situation. We are recovering in Egypt, with numbers showing a slight increase.
For organic produce, production remains stable, and prices are favourable. Over the past two years, organic consumption has improved. As VIP, we see opportunities to develop the organic market in Italy, which ranks third for us after Germany and Scandinavia”.
The Challenges to face
Meetings at Fruit Logistica provided an opportunity to delve deeper into the overall apple market scenario. On this matter, VIP’s General Director, Martin Pinzger, who attended the fair in Berlin, shares his perspective: “We operate in a global context, and while the market is responding positively, our focus must be on production, where the greatest challenges lie. These challenges mainly concern climate, costs, plant protection products, and the entry of young people into the sector, with the risk—so far avoided in Val Venosta—of a reduction in cultivated areas”.
Pinzger reports: "European studies indicate that the equilibrium point for the EU market is around 11 million tonnes (with a maximum production capacity of 11.4 million tonnes). Fortunately, this year we are below that, at 10.2 million tonnes, with approximately 4 million destined for industry and between 6 and 7 million for fresh consumption. Global production has also remained stable for the past four years.
"Consumption needs to increase - emphasizes the General Director - and according to EU estimates, it could reach 15 kg per capita in Europe by 2035, compared to the current 14 kg. For us, the prospect of growing consumption is increasingly tied to further product improvement, even though we already start from a very high standard, with the expansion of premium-quality new varieties”
Key Strenghts
Martin Pinzger highlights: "We have quality, but we are also in a better position than the general market context in other aspects: we have the Upper Val Venosta, where there is still room for surface expansion, we can offer young people solid opportunities within a protective system, and we can achieve better economies of scale thanks to the gradual growth in farm sizes. Furthermore, apple imports into Europe have been declining for a decade, which benefits us”.
VIP’s General Director concludes: "However, policymakers and institutions must recognise the critical issues in our sector, starting with essential tools to combat plant diseases while fully respecting the environment. At the same time, the industry itself must evolve as a system, joining forces and finding common ground on all major issues”.
