2007 – the fruit bites back

2007 has been a turbulent year for the fruit juice industry.

Disease problems in the Brazilian orange groves continued to take their toll at the beginning of the year, driving prices up by some 30-40%. Orange juice has the lion’s share of juice consumption but it became clear in May that there was to be no relief on prices from other juices such as apple and the red fruits. Indeed, our spring crop report began to sound alarm bells about unusual weather conditions in Europe, particularly Poland.

Northern Europe

The hot Spring followed by deep frosts in May had a devastating effect on blossoms. We predicted that red fruit juices such as cherry, raspberry and blackcurrant would double or treble in price, a forecast that turned out to be very accurate.

The effect on the apple crop has been equally dramatic. Poland is the world’s largest supplier of high acid concentrate and the problem of simple availability of fruit has been compounded by increased in demand in the fresh and dried fruit market and higher labour costs. All indications now point to our predictions of a 20% hike now appearing to have been too conservative – 80 to 100% now look more likely.

Ironically, the UK has had a bumper apple crop, but since there is no concentrate business to speak of here this has no affect on the global Apple Juice Concentrate price.

Southern Europe

The Mediterranean region has witnessed a wet spring and a hugely hot summer. The disastrous fires in Greece are not the only resultant victim. Peach and apricot crops have been affected and, from a juice perspective, the grape crop looks to be under threat. Parts of Italy have already predicted lower crops because of weather and mildew problems and the regulations concerning movement of grape juice for wine production been relaxed, a sure indication of an anticipated shortfall. Early indications suggest a 30-40% price rise for concentrate.

China

China first burst onto the world Apple Juice Concentrate scene some ten years ago and began to have an immediate impact. The quantity and low prices of AJC led to the suspicion that juice was being put on the market at prices below cost and the US implemented anti-dumping charges. Those days are over and the Chinese producers now have a clear grasp of market forces. Despite a good apple crop, Chinese AJC offers are now standing at 60-70% higher than last year. We live in interesting times.

David Berryman Limited 17.09.2007

Some of the latest drinks developed by the DBL laboratory include:

Bursting onto the fruit juice scene, The Berry Company has launched five flavours including the exciting innovations of Goji berry juice and Acai juice.