BERRIES will continue to rocket to new heights while stonefruit is poised for a resurgence, according to an international fresh produce retail analyst.
Rabobank’s senior fruit, vegetable and floriculture analyst Cindy van Rijswick visited Australia last month from the bank’s global headquarters in the Netherlands, touring Victoria and Tasmania.
Ms van Rijswick has been analysing the European Union (EU) fruit, vegetable and floriculture sectors for 15 years.
Her predictions and views bring welcome news for some growers and perhaps some worrying signals for Coles and Woolworths.
Ms van Rijswick echoed insights delivered to delegates at various fresh produce conferences throughout Australia in recent years where experts have reported the rise of convenience as a key factor in driving sector growth.
She said of all the individual products within the industry, the rise in the popularity of berries was showing no signs of stopping over the next five years in both the frozen and fresh categories.
The health attributes of berries and their versatility as ingredients in smoothies and dairy products was also behind the upswing in demand.
“We are also forecasting a revival in the demand for stonefruit driven by investment in new varieties which is expected to ramp up demand for plums and peaches – from fairly stagnant levels over recent years," she said.
“In contrast, staple fruits and fresh vegetables are expected to exhibit stable and, in some cases, declining growth in the coming five years – as fresh-cut and frozen fruit and vegetables gain market-share from the whole fresh and preserved categories due to their value proposition."
Ms van Rijswick had not visited many Australian supermarkets when she spoke to Good Fruit & Vegetables but said from what she had seen there was nothing especially innovative or new within them.
"I think the UK is very advanced in the supermarket environment. They are one of the leading countries worldwide," she said.
"There are a lot of convenient products, a lot of ready-to-eat products with nice presentation and most of the trends that start in the UK will also go over to the rest of Europe and I guess Australia is also following these trends.
"Although, there are some differences because you have an enormous country so I think it is complicated to have some of these convenience products on Australian shelves because most of them aren't ultra fresh products.
The farmers do a great job producing the best fruit and veggies so it's a pity it's not presented in a better way in the supermarket to be attractive and better packaging.
- Cindy van Rijswick, Rabobank
"I don't think all the products you see on European shelves will end up on Australian shelves."
That push for convenience has been particularly seen in the European avocado market with ripe, consumer-ready fruit the new norm.
"These avocados have taken over nearly the whole avocado market in some European countries," Ms van Rijswick said.
"Consumers don't buy the other avocados anymore because it's so convenient. They were confused with avocados and mangoes and when to eat them when they were ripe, so that's a great product I think.
"Hardly any Europeans consumed avocados but since these ready-to-eat products have been on the market consumption has really been booming."
She cautioned against growers getting too vertically integrated in their businesses when it came to value-adding.
"I'm not sure if farmers should do this because they take all the risks," she said.
"I think a lot of growers are already doing things that are more adjusted to the consumer.
"The farmers do a great job producing the best fruit and veggies so it's a pity it's not presented in a better way in the supermarket to be attractive and better packaging.
"You can present it in a much nicer way."
One similarity she saw between the UK and Australia was the steady impact Aldi has had in the market.
She said although Aldi is not particularly strong in fresh produce, it is still putting pressure on the other retailers.
"Over here if you only have two big retailers then you should welcome a third one to give more options," Ms van Rijswick said.
On the export front, Ms van Rijswick said Australia was ideally placed to capitalise on the growth countries.
“While demand out of Asia for fruit and vegetables is increasing, especially in the frozen berry category, Europe is not expected to become a significant supplier into the Asian market,” she said.
“Distance to market and a different culture in doing business is proving to be an impediment for European fruit and vegetable exports into Asia.
"Trials to export apples, pears and bell peppers have not resulted in large export volumes yet.
"Given Australia’s proximity to Asia however, it could certainly be a growing market for the Australian horticultural sector to tap into.”
Ashley Walmsley
Ashley Walmsley is the editor of ACM's only national, fresh produce magazine, Good Fruit & Vegetables, while also covering horticulture stories for the agricultural papers and websites. He also writes the weekly, The Ringer, column in the Qld Country Life.
Ashley Walmsley is the editor of ACM's only national, fresh produce magazine, Good Fruit & Vegetables, while also covering horticulture stories for the agricultural papers and websites. He also writes the weekly, The Ringer, column in the Qld Country Life.
