Apple exporter denies price-wrecking claim

An apple exporter disputes a claim by Enza owner Turners and Growers that New Zealanders are helping to destroy prices in a difficult European apple market.

Paul Dellabarca, marketing manager for Hawkes Bay's Growers Trust, whichrepresents 90 pipfruit growers and hasfive packhouses, said the produce company's statement last week that dozensof small New Zealand exporters were sending apples to Europe with nobuyers for them was "nonsense".

Turners and Growers was forced to downgrade its profit outlook last Thursday, and its share price fell more than 10 per cent to close at $2.20.

Dellabarca agreed with T&G that European market prices were at a record low because of a glut of South American and South African apples and a big overhang of last season's European apples.

The United States also had a big carry-over of apples from last year, and Europe had a record stonefruit crop this year, so cheap cherries and nectarines were competing with apples.

Dellabarca said the exchange rate had shaved $5 off the price of a New Zealand carton of apples in the past two years and on top of all this, many Braeburn exports were big fruit which was shunned by overseas supermarkets.

"The issue in Europe is not a New Zealand problem, it's a world problem."

T&G chairman Tony Gibbs yesterday stood by his claim that about 100 small New Zealand exporters were destroying prices.