BayWa benefits from a strong German apple market but loses in New Zealand

The fruit division of the large German concern BayWa reports a loss in 2023. The strong German apple market was wiped out by major cultivation problems in New Zealand.

This is evident from the annual figures. BayWa’s Global Produce Segment generated revenues of €878 million in 2023. The group sells German apples from 250 growers of the Württembergischen Obstgenossenschaft Raiffeisen eG (WOG) cooperative. The company also grows a lot of fruit in New Zealand. In the Netherlands, it has a trading location in Waddinsveen with TFC. BayWa is a mega concern whose divisions together have a turnover of almost € 24 billion.

The operating result (i.e. before deduction of items such as interest and depreciation) of Global Produce Segment for 2023 amounted to a loss of more than €15.1 million. It didn’t look like that in the third quarter, but BayWa is having setbacks in New Zealand. Cyclone Gabrielle destroyed large parts of New Zealand’s plantations and crops in February 2023.

In addition to the crop losses, insurance payments, some of which were not fully settled in 2023, also affected the result. The rising prices for exotic fruits on the market could not compensate for this shortage. This also applies to sales of German apples in a favorable tight European fruit market.

Better prospects

The disappointing results will be an exception, the group expects. It has a good apple crop in New Zealand. The company also expects a positive turnaround in the trade in exotic fruit. In addition, the payment of the majority of the insurance compensation for cyclone damage will have a positive effect on profits in 2024, the group said in an explanation.

Furthermore, the company is the market leader in the Netherlands in solar panels over fruit. Installations of 105 kilowatt peak and 125 kWp have been built in Enspijk and Randwijk, in combination with cherry and pear cultivation. Baywa is also now working on the largest solar panel project in Europe at a Dutch raspberry grower. These activities are not included in Baywa’s fruit and vegetable branch.