The trend in prices for fruits from the 2009 crops was marked by slack demand as a consequence of the recession. Coupled with significant supply overhangs from the prior year, this resulted in lower prices. AGRANA Fruit’s global procurement company proved its worth in the centralised coordination and execution of fruit purchasing. The goal is greater sourcing of fruit from the Group’s own cold storage plants in countries like Mexico, Morocco, Argentina and Poland and close collaboration with exclusive suppliers for the most important fruits and production sites worldwide.
For the financial year 2010|11, AGRANA expects rising purchasing volumes for fruit preparations and a general increase in fruit prices. The factors leading to this anticipated increase are partly a reduction in crop areas in the wake of last year’s low prices, and the expectation of lower available volumes because of the weather-induced late start to the harvest in Morocco and Mexico. Chile is considered one of the main suppliers of raspberries, blackberries and cultivated blueberries. Chilean shipments to Europe and the USA are significantly reduced after the earthquake in February 2010.
A good European apple and berry crop enabled AGRANA to attain high rates of capacity utilisation at the twelve plants. Weather conditions in the main growing regions were consistently favourable and there was no frost damage. Berry processing ran from June to the beginning of September 2009. The apple campaigns in Europe and China began in mid-August and were completed in December 2009.
Although the European apple crop, at approximately 11 million tonnes, was about 5% lower than in the record year 2008 and raw material prices were below the prior-year level, AGRANA Juice was able to buy the required amounts through country-specific local adjustments in its purchasing strategy. The mild autumn resulted in a crop of processing apples of above-average quality. For the first time, apple juice concentrate from organically grown fruit was produced in Hungary. Demand for organic grades is expected to rise with the labelling requirement under the EU organic legislation taking effect on 1 July 2010. For the 2010|11 financial year, AGRANA therefore plans to expand the product range and volumes of organically produced fruit juice concentrates.
Despite a projected bumper harvest of about 32 million tonnes of apples, in China the apple supply for industrial processing was reduced by greater demand for the fresh market. Yields from the 2009 apple harvest were higher than in the year before. According to estimates, total Chinese production volume of apple juice concentrate in 2009 was about 65% of the record amount reached in 2008.
In red berries, despite reduced raw material prices, AGRANA was able to buy the necessary quantities, largely in Poland, Denmark, Hungary and Ukraine (the industry term “red berries” includes strawberries, raspberries, black and red currants, sour cherries, chokeberries and elderberries).