1. Changes in the marketing environment

The imbalance between supply and demand.
Growth in apple production has been driven by consumer demand for new varieties such as Gala, Braeburn and Fuji. However, in markets such as Europe, continued volumes of existing varieties Golden Delicious, Red Delicious and Jonagold, coupled with weak market demand has placed downward pressure on prices. Improved economic growth is expected to lift subdued demand although this is still somewhat tentative in many markets.

Consumer attitudes.
Consumers expect greater choice of quality products, and also seek value for money, as purchase habits for fruit become more discretionary. Consumer requirements are also becoming more complex as food health and safety concerns drive their desire for safe food that is produced in an environmentally sustainable manner.

Consolidation of supermarket chains.
Over 70% of fresh food sales in some markets are now made by just a few retail chains as consolidation and domination of supermarket chains continues. Competition is focusing these retailers on improving internal efficiencies, leading to closer relationships with suppliers to ensure more control over quality, safety, price and availability to consumers as global sourcing systems develop.

Increasing complexity of market requirements.
It has become more complex to meet specific yet varied and changing market requirements for the product, quality assurance and traceability requirements as well as compliance with regulations for international trade. Participants in the production, distribution and marketing system are responding to this trend by forming alliances to increase the co-operative strength and competitiveness of an integrated supply chain from producer to consumer.

2. Market requirements for fruit quality

What does quality mean?
Quality means different things to different participants between orchard and market. The Producers view of quality is determined by quantifiable standards prescribed for supply to the procurement agency, such as size, colour and firmness criteria.

Retailers tend to be more consumer orientated in their concept of quality, but also increasingly seek to dictate product specifications for supply. They require presentation of consistent fruit, with each variety differentiated by attractive appearance and characteristic flavour that appeals to consumers.

Consumers want attractive, crisp, juicy, flavourful fruit that is safe and nutritious to eat. Their concept of quality is shown by willingness to purchase and satisfaction on eating, which is less tangible and much harder to measure. Thus different quality criteria apply throughout the supply chain, but consumer judgements ultimately determine purchase activity. In this sense, quality implies a suitability for intended use.

Implications for meeting quality requirements
There is a need to link these different concepts of quality between producer and consumer. An estimate of customer acceptability can be made by relating the measurable attributes of fruit to the qualitative responses of customers. This can be used to develop improvements in fruit handling criteria, and new variety prospects based on market acceptability.

Non-destructive ways of grading fruit on a sorting line according to consumer-related quality factors are being researched. However, identifying valid relationships between sensor measurements and the quality factors will be essential for this technology to be effective.

At operational level, integrated systems of fruit handling are developing, with communication and co-operation focusing on managing quality at each stage of the supply chain to co-ordinate orchard quality with market requirements.

Factors affecting quality
Many factors, but notably climate, cultivar, cultural, maturity and postharvest handling all have an important influence on market-place quality. Preharvest factors include tree vigour, crop load, canopy position, shading and temperature. The condition of fruit at harvest is a critical factor determining its potential for postharvest quality, therefore harvest practices are a very important determinant of market acceptability. Postharvest storage conditions determine the extent to which the quality potential realised at harvest is maintained during distribution to supermarkets.

Within the context of meeting quality requirements, management of variability in quality is a key issue. Measuring average quality is a poor predictor of consumer acceptability when a product line has much variability within it, hence the need for a systematic process of product delivery.

3. Strategies for meeting market requirements

Careful variety selection
Todays markets demand more choice, therefore it is a clear strategic advantage for suppliers to be able to provide new differentiated products. To be commercially successful, new varieties must not only have market demand, but also such characteristics that in the chosen area of production, they are able to achieve consistent quality in sufficient volume to be profitable for the producer.

Minimise variability
Variability is an inherent factor in horticultural products affecting market acceptability, therefore practices should be adopted that aim to minimise variation in quality.

Preharvest practices should aim at maximising the proportion of high quality fruits at harvest. Intensive planting systems using dwarfing rootstocks offer the potential to achieve this through more uniform light and temperature conditions in the canopy, higher size, colour, sugar and firmness characteristics, and reduced risk of disorders through better vigour and nutritional balance. Higher risks to quality may be associated with greater fruit exposure such as sunburn.

Harvest management determines the proportion of the crop able to attain high quality that goes forward for packing and the uniformity of fruit quality in each line. Attention to the stage of crop maturity, variability within the trees, and handling operations at harvest are needed to maximise the potential value of the harvested crop.

Effective postharvest coolchain is needed to maintain the quality achieved from the harvest. Packing operations aim to minimise substandard fruit, and further segregate the sound fruit according to different storage or market requirements.

During distribution, audit systems function to certify fruit are appropriately segregated, therefore identifying and managing variability in quality is critical to effective segregation and consignment according to customer requirements.

Develop an integrated system of supply
It is important that any improvement in the production and handling system be considered in relation to the associated costs, management skills and technologies needed. This is becoming complex to assess as product quality and service concepts interact in determining the meeting of market requirements. However it is clear that managing quality throughout the supply chain requires a shared knowledge of what quality means as well as factors determining it. This can most effectively be utilised in meeting market requirements through an integrated system of all participants in the production and marketing of fruit.