NEWS

Alvin’s Analysis: 2020 southern hemisphere season review

With COVID-19 dominating the headlines around the world, we take a brief look into how this may have influenced the 2020 southern hemisphere Pink Lady® season so far.

Many countries had some form of restriction in place early in the season which created some logistical challenges. Across the supply chain, our exporters were able to adapt to meet the demand for good quality Pink Lady apples – especially in Europe and UK – with demand partly triggered by an early end to the previous northern hemisphere season.

Regions including Asia and Africa had a slower start to the season amidst the disruption however global volumes remained strong increasing by 6% from the previous year. The graph below provides an indication of volumes as we head towards the end of the year.

Shipments to the developing territories had a slow start to the season particularly in South East Asia which saw a decline of 24%. However, the Gulf recorded an increase of approximately 44%.

Overall consumption by mature markets increased by 11% compared to prior season. This absorbed a  large portion of the supply, and resulted in a decrease of 18% to all other territories. Additional supply of approximately 4000 MT will be required to match the 2019 volumes for the developing territories and supply existing markets. This is encouraging for next season with both the northern and southern hemispheres currently forecasting good crops.

As always in Emerging Markets, the path to growth is supply of product, not our proven ability to create demand with importers and consumers. There is great opportunity for willing northern hemisphere exporters, as we look to our newest partners in the US to help us fill the breach until southern hemisphere supply returns in April 2021.

Chile remains the largest source of Pink Lady apples in the southern hemisphere however growth is noted amongst the other major producers in New Zealand, South Africa and Argentina

        

Notes:

Volume for markets can change depending on the mix of countries included/excluded for each market