High level of promotions see retail market for fruit and vegetables fall

THE retail market for fruit and vegetables fell by 3.1% in volume and 5.7% in value during the 12-week period ended June 14.

Bord Bia attributed the drop in the value of household purchases in its weekly market monitor to the high levels of promotions taking place in the category at the moment.

Potatoes showed the largest decline with both value and volume down 11%, but the arrival of new season potatoes was expected to help arrest this slide.

Michal Slawski, Horticulture Division, Bord Bia, said there is good news for most of the rest of the major vegetable crops. Volumes of broccoli are up 18%, cabbage is up 12%, cauliflower up 20% and carrots up 11%, with turnips up 16% and Swedes up 15%

“One predicted outcome of the downturn in the economy is more home-cooking, and the figures seem to back up this view as all these are traditional accompaniments to a home cooked meal,” he said.

Other major lines like mushrooms, tomatoes and lettuce show modest growth while peppers are in slight decline, according to the TNS study.

On the fruit side, sales are down 7%-8% in both value and volume, with Bord Bia suggesting that this again is due to more trying economic times.

The big mover is blueberries, with sales up 91% in volume over the same period last year, and strawberries are also doing well, with sales up 23% in volume terms, although the value of sales was down by 27%.

Apple sales for the 12-week period were 9% higher, citrus was down marginally while there was a big fall-off in banana sales, with value and volume down by 36%.

In another study Mintel found that in 2008 the value of the Irish food service market stood at about €7.2 billion (€5.5bn) in the Republic and £1.8bn in the North.

During 2003-2008, the food service sector in the Republic experienced a growth rate of 28%, although a slower total growth rate from 2008-13 is expected due to extra financial constraints on households.

An online survey of 1,850 adults in the Republic for the purpose of the Mintel report confirmed that, regardless of cutbacks, dining out has become a common occurrence for consumers.

Maureen Gahan, Ireland Market, Bord Bia, said the foodservice market has become increasingly important for existing Irish food suppliers and offers potential opportunities for new entrants.

Recognising the value and importance of the foodservice market, Bord Bia is producing an updated directory of selected key chain operators along with a directory of national and regional distributors.