As far as Asia and Africa

Fruit juices from Austria are an export hit

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01.11.2024 06:00

In an interview with "Krone", organic producer Höllinger is concerned about the poor harvest. He delivers his goods as far afield as Dubai and Mauritius, with exports accounting for 60 percent of his business. Business with syrup and drinks for children is going very well, while sugary fruit juices are suffering from the health trend.

This year's apple harvest left a lot to be desired worldwide. In Austria, the volume fell by 54% compared to the average of the past three years, more than in any other EU country. One of the reasons for this was enormous frost damage. Yields were already relatively weak in the previous year, and this worsened in 2024.

The price of apples has risen sharply
Gerhard Höllinger, head of the organic juice producer of the same name based in Pressbaum, Lower Austria, has also noticed this development: "We've only had a normal harvest in Styria twice in nine years." In the southern province, where three quarters of the apples come from, he works with a total of 3,500 farmers who mainly supply him with orchard fruit. The price for the fruit has risen significantly, from around 20 cents to 30 cents per kilo. The high demand combined with a short supply is driving up costs.

One liter of juice requires 1.3 kilograms of apples. If these become 50 percent more expensive, this also affects the price on the shelf. However, consumers are still happy to buy fruit juices from Austria. The price rally was even stronger for orange juice, with many shoppers preferring apples, which are still cheaper in comparison.

All in all, the apple harvest in Austria was very poor this year. (Bild: Höllinger)
All in all, the apple harvest in Austria was very poor this year.

Höllinger competes with the domestic giants Spitz, Rauch and Pfanner as well as with retailers' own brands, although he himself specializes most strongly in organic products. He has little sympathy for the pricing policy of the low-cost brands: "In view of the price demanded for organic apple juice in discount supermarkets, I really wonder how this is supposed to work out".

Although the brand is primarily known for juices, the business (1.8 million liters per year) only accounts for a quarter of his turnover. There is more to be earned with fruit syrups, school juices and other organic fruit juices or lemonades. He is also constantly launching innovations, such as an organic aperitif and mojito syrup.

Apples are delivered as far away as the Seychelles
The export share is 60 percent. The largest foreign markets are surprising: Portugal and Spain are two countries that are generally rich in fruit. Then there are the Arab Emirates, and a lot of juice from Austria also goes to Qatar, Dubai and Mauritius.

"We also export to Africa, the Seychelles and Egypt," says Höllinger. The products are sold via wholesalers. Apples are in short supply in many regions, but Austria has enough fruit. "We assume that we will continue to grow abroad," says Höllinger.

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"We also export to Africa, for example to the Seychelles and Egypt."

(Bild: Höllinger)

Gerhard Höllinger, Fruchtsaft-Produzent

A proposed "sugar tax" would also have a major impact on the industry. Höllinger is already familiar with this from Qatar, an export country for the entrepreneur. Taxation there is extremely high, with a 50 percent sugar tax and a further 50 percent tax on top for carbonated drinks. But the well-heeled Arab public still demand organic juices.

"Sugar tax" and health trend
In general, Höllinger believes that the demand for fruit juices will tend to shrink in the long term due to the health trend. A sugar tax is also currently being discussed in Austria. In general, he expects the demand for his products to grow the most in the future, apart from the classic apple juice. He can also imagine offering sugar-free soft drinks for the first time in the future. 

This article has been automatically translated,
read the original article here.

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