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GLOBAL OVERVIEW CUCUMBERS

 


Global cucumber production, which in many countries relies heavily on cultivation with added heat and light, has suffered from the increase in energy prices around the world. Some production countries, including the Netherlands and France, have reduced their use of these methods in order to ensure the production is still profitable. Despite these fears, cucumbers remain a popular product, particularly through the summer. In Italy, 41.1% of households bought the vegetable over the last year.

The Netherlands & Belgium: Energy prices cause uncertainty for cucumber growers
After a dark January month and a stormy weekend, cucumber growers in the Netherlands and Belgium are gearing up for a few sunny days in the last weekend of February, which will do the crop good.

The area isn’t expected to grow much this season. Various cooperatives even reported a slight decrease in acreage. However, there are growers who have exchanged their tomato crop for a (high wire) cucumber crop.

Recently, more and more growers came into production with a traditional crop. The volumes are therefore increasing. However, the expectation is that the volumes will increase more slowly than usual. The first production peak would be in mid-March, a few weeks later than traditional, as many growers have planted later due to the energy crisis.

Opinions differ about the effect of the energy crisis on the lit winter crop. In Belgium there were fewer lit growers this year. In the Netherlands, the area under winter cultivation was similar to last winter season. However, production was lower due to more economical energy use. What the lit winter crop will do next winter season is uncertain. For the time being, energy prices remain very high, making profitable cultivation difficult if not impossible.

Prices were temporarily higher recently period due to lower volumes. In week 7 the average price on the clock at auctions within the Verbond van Belgische Tuinbouwcoöperatie (Federation of Belgian Horticultural Cooperatives) approached the five-year average.

Due to major shifts in planting dates and schedules, peaks and troughs in production are expected at other times this year in the Netherlands and Belgium. Last year, a new cucumber virus, the Cucurbit Aphid-Borne Yellow virus (CABYV), also appeared. This could also have an impact on productions.

Germany: Increase in Dutch and Belgian cucumbers on German market
The presence of imports from Belgium and above all from the Netherlands gradually increased. As a result, the dominance of the Spanish imports slowly diminished. The competitive situation increased as a result and prices crumbled in unison, which led to higher demand locally. In Munich, on the other hand, quotations held their level thanks to a good interest, as both their main supplier country, Spain, and the Benelux producers delivered only to a limited extent. The Spanish harvest was often reserved for retail contracts in Bavaria; products from the Benelux region were limited due to the still high energy costs in greenhouse cultivation. Spanish and Turkish mini cucumbers dominated over Dutch supply. In Berlin, the supply was scarce and therefore recorded a small price jump, whereas Frankfurt offered attractively priced Dutch produce in 4 kg cartons.

In Austria, the domestic season started this week with the first harvest of this year. Due to increased gas and packaging prices, producers are hoping for a total price increase about 10-15 percent. Last season, there was overall a very high demand for regional cucumbers.

France: High cost of production pushes French cucumber prices up
The French cucumber season has just begun. In terms of production, the quality is good, and there appear to be no issues with disease or pests. The big question will be the commercialisation this year. In fact, all the prices are going up (gas, packaging, fertilizers etc.), impacting the price of the cucumber with them. The entire season will depend on the beginning of this season. If supermarkets do not fully open French lines and if the price is too high for the consumer and the consumption is affected negatively, then lot of producers might stop the cucumber cultivation for this year, instead of losing money. 

Spain: Melons make way for cucumber production in Almería
After the slight increase in the average price of Almería cucumbers observed last week, the prices at origin decrease slightly again this week. The autumn cucumber enters in its final stage of cultivation with an increasingly reduced supply, a stabilized demand and little competition from other origins of production. The Dutch cucumber campaign will start almost two months later than usual, due to a delay in the traditional transplant dates, in order to reduce costs of production derived from energy use.

A significant reduction in the melon area is expected in Almería in the next spring campaign, according to industry experts. The Galia and Cantaloupe types will be the most affected. The watermelon will slightly decrease the number of hectares of cultivation, especially those harvested in April and the first weeks of May, which will be replaced by cucumbers which, as well as courgettes, could increase their area compared to last spring's campaign.

Italy: Consumption of organic cucumbers is only marginal
According to the latest statistics, 10.8 million families bought cucumbers in 2021, equal to 41.4% of Italian households. Those who buy within this category do so quite regularly, with a frequency of about 6 average acts per year. The cost per single purchase is contained and equal to approximately 1.25 euros with an average purchased quantity equal to 850 grams.

Organic cucumbers only play a completely marginal role in the country: just 0.3% of Italian families buy organic cucumbers and, although this figure has tripled in the last 2 years, it remains at very niche levels.

The seasonality of the category is very strong: purchases are mostly concentrated in the summer months. Therefore, the seasonal adjustment of consumption is also important for the development of the segment.

14% of Italian families buy cucumbers in the discount channel. Cucumbers are also increasingly present in the online shopping channel: from a marginal 1.1% 2 years ago to 2.6% penetration in 2021.

South Africa: Low prices match weak demand for South African cucumbers
The cucumber market is quite volatile at the moment but demand is limp, says a cucumber producer.

Because of the lack of sunshine during the early part of summer, cucumber growth hours were lost and production was down – fortunately, says a cucumber producer, demand Is still very weak and affected by the reduction of the catering and restaurant sectors due to Covid.

“The market is really unpredictable, it’s all the rain. We’ve had a lot of trouble,” a cucumber trader in Gauteng says. “Two weeks ago we were selling for R150 [8.75 Euro] and now we’re selling for R75 [4.3 Euro for a 6kg box of large cucumbers].”

Prices vary wildly and supply has been erratic. Today the average price on the Johannesburg municipal market is almost R12 (0.7 Euro) per kilogram.

Since January production conditions have improved along with more sunny days.

North America: Higher production expected as cucumber cultivation areas heat up
Overall supplies of field cucumbers in North America are tight at the moment.

“The cooler weather in Mexico caused a lot of that,” said one grower-shipper. “We had a cold spell about a month ago that slowed the growth and affected the yields. Cucumbers, as soon as they get cold, they just stop growing. It definitely interrupted the supply.”

However, he notes that new growing areas in Mexico are coming, ones with better weather. “It’s warming up a bit more in Culiacan and as you go further south into Sinaloa, you’ll find weather there being a little more cooperative too,” he says.

Along with Mexico’s significant production, there is also production of field cucumbers out of Southeastern states such as Florida and Georgia. “There’s also some offshore production. Out of Honduras, there are some cucumbers that head to the Southeast,” he says. 

And then there’s also greenhouse Long English cucumber production, which is largely in Canada out of regions such as Southern Ontario. On greenhouse Long English cucumbers, supplies are excellent says one grower-shipper. “Mexico is still in production and Canadian production is starting up. There are great supplies from all regions,” says the Canadian grower-shipper, adding that supplies are similar to last year at this time.  

Supplies should be strong until Mexico is out which is late spring, they add.

Meanwhile demand has been strong for field cucumbers and prices are up. The grower-shipper notes that there’s usually a little uptick towards the end of the winter deal in pricing. “We’ll see it as the transition starts to hit but it’s been a good market,” he says.  

As for demand for Long English, it’s strong as well, particularly from Canada. “Canadians are very excited about local production and we always see very high demands at this time of year,” says the grower shipper. “And Americans really appreciate Long English cucumbers. Every year, demand from this country gets higher and higher as they discover the delicate and wax-free skin that they don’t need to peel.”

Demand is also increasing for organic Long English cucumbers which in turn is pushing growing areas to increase their organic plantings.

Looking ahead over the next few weeks, cucumber vines in Mexico will increase as the weather gets warmer. “We’ll start to see some new stages kick in and we’ll start seeing better yields across the board,” says the field cucumber grower-shipper. “Large is a size that foodservice seems to like due to the yield per piece, so we will see an increase as the weather warms up.”

Australia: Most Australian cucumbers grown in South Australia
Australia has year-round production of cucumbers, with some peak supply coming across the summer months. New figures were released for Australian cucumbers this month, according to which for the year ending June 2021, a total of 89,650 tonnes of cucumbers were produced in Australia (down 5% from the previous year) and valued at $170.6 million dollars, which remained steady from the year before. Only a small amount of total production is exported, with 69 tonnes sent internationally, worth $500,000. There are currently three main varieties grown in Australia; Continental cucumbers, the most common accounting for 57 per cent of fresh production, Lebanese cucumbers making up 31 per cent of fresh production, and Baby cucumbers, including the trademarked Qukes, which accounted for 11 per cent of fresh production. South Australia is the biggest producing state (43%), followed by Queensland (35%) and Western Australia (10%) - and the majority of cucumbers are produced in protected cropping or high-tech glasshouses. In terms of retail prices, Lebanese cucumbers are currently selling for between $1-2 each at the major supermarkets, while Continental cumbers are more expensive at $3-4 each.

China: Spring Festival peak prices for cucumbers
Chinese growers were aiming to hit China's Spring Festival in early February to bring the greenhouse cucumber crop on the market. This period is peak season for vegetable production and sales. This year, price per kilogram was over 3 Yuan per kilogram. 

Growing market demand and state level investments have led to increased greenhouse cucumber production in provinces such as Hebei and Shandong. A typical Chinese solar style greenhouse harvest around is around 400 to 500 kg per flush. Production is typically sold in local supermarkets. 

GLOBAL OVERVIEW GRAPES

 


Grapes remain a popular fruit among families in many countries, with over 62% of families purchasing them in Italy and Australia. Despite their popularity, however, this market has been facing issues in logistics, as many others have too, as well as suffering the effects of the COVID-19 pandemic. These issues have affected both prices and demand, with prices increasing in the Netherlands, Germany and France, but dropping in Spain. In Australia the pandemic caused grape exports to decline by 26 percent in value.

Netherlands: Tight supply of grapes, high prices and many quality issues
The enormous delays in shipments have led to tight supplies of grapes in recent weeks. A Dutch importer expects the availability to improve in the coming weeks, as the supply from both South Africa and India will increase. It is expected that this will also put some pressure on prices. The prices have been very good up to now. For a 4.5 kilo box of white grapes, the market currently pays between 13.50 and 15 euros. A side note of the current market situation is that due to the rain in South Africa, a lot of grapes with quality issues are coming in across the board.

Germany: Still high demand for grapes from South Africa
South African products have dominated the market, with new additions including Sugraone and Black Gem. Peruvian Crimson Seedless and Red Globe were also on the market, but lost relevance overall. Imports from Namibia played a rather minor role. The interest was not particularly strong and was satisfied without any problems. Batches with weakening conditions were affected by reductions in Hamburg. In Cologne, Peruvian batches became cheaper. 

While a few weeks ago there were supply bottlenecks for grapes from South Africa, an importer from North Rhine-Westphalia can now look back on a more positive development. The demand for grapes from South Africa is currently very high, due to the fact that there are no other grapes available for purchase at the moment, at least in his area. The quantities are also satisfactory. He had to increase his prices by 7-10%. 

France: Up to 30% higher prices for grapes in France
The Peru season is about to end and the French market is now in the middle of South Africa season. Due to logistical issues, grapes are arriving in France with between 10 and 18 days of delay, which could be a problem for the quality of the product. The prices of packaging and other costs put the price of grapes up to 30% higher than usually. The consumption is impacted by this. Except for new varieties, for which prices are very high and demand is excellent.

Spain: Low prices for grapes on Spanish market despite high demand
The demand of table grapes remains high in Spain, especially white seedless grapes, as well as in France and other Mediterranean countries. However, the availability of white seedless grapes has been limited in recent weeks due to the delays of South African exports as well as the influence of heavy rains in two of the major growing areas of the country. India has contributed to complete the supply in those European markets that accept its grapes. Meanwhile, the Peruvian season is ending and the Chilean grapes will arrive soon, also in smaller quantities, as the US market is paying well for them.  

As for black seedless varieties, they are showing a very unequal quality upon arrival, both the last grapes from Peru and the first from South Africa, with rotten batches and small sizes. There was also a shortage of red seedless grapes at the end of December and beginning of January, due to the delays from South Africa, which has been already solved and there is now full availability.

The global logistic problems with shipping companies have gotten worse in the last two weeks, making it more complicated to supply enough grapes, which are already scarce in the case of white seedless grapes,” says a Spanish importer. “Despite the limited supply, prices are low. The production and packing costs are higher and prices at origin remain high, but supermarkets are not willing to pay much more at the moment.”

Italy: First signs of normalization in the grapes market category
According to statistics, table grapes were purchased in the last year ending in December 2021 by approximately 16.5 million Italian families, corresponding to 63.2% of all families. As with other types of fruit and vegetables, in the last two years there has been an increase in the levels of penetration, linked to the pandemic scenario and the general increase in purchases for domestic consumption. Two years ago (pre-Covid) grape penetration levels were 60.1%

However, we are witnessing the first signs of normalization of the category, with a frequency of purchase (absolutely high for grapes) equal to 6.7 average acts for families over the year, down by 4.6% compared to the 2020 but with a level that remains slightly higher than 2019 (+ 3.4%), the last pre-Covid year.

The organic trend, on the other hand, is rather stable: there are just over 2 million families who have bought organic, with no changes in the last 3 years.

South Africa: Good estimates for South African grape crops
The Berg River and Hex River growing regions will enter their peak next week and prospects for the grape crop in these two areas, also South Africa’s largest, are very favourable, according to the South African Table Grape Industry.

Fruit is flowing well and cold store capacity is looking good, but there is a lag between intakes and exports because of shipping and port delays but fruit is flowing well at the moment.

Heavy rain in the Northern regions (Limpopo) and a heatwave in the Olifants River growing region have necessitated a downwards adjustment of the crop estimate for these two regions, while the crop estimate for the Orange River region has been increased, despite the rain the area received.

The lower threshold of the initial estimate has been increased to 72,8 million 4.5kg cartons while the upper threshold remains the same at 77,7 million 4.5kg cartons.

Thanks to the increased number of reefer vessels (conventional vessels) loading grapes in Cape Town, the flow of grapes is good. “Delays in the Port of Cape Town is still a challenge and of major concern,” the grape industry recently noted.

North America: Supplies of Chilean grapes are steady and getting stronger by the day 
According to the Chilean Fresh Fruit Association, Chile has exported 74,820 tons globally, a decrease of 15.8 percent from the 88,836 tons exported through the same week last season. Of the total volume exported season to date, 59,555 tons (79.6 percent) or 7, 262, 786 boxes, have been shipped to North America.  

The anticipated higher volume of exports is driven primarily by the increase in new varieties by more than 73.5 percent in relation to the 2019-2020 season and by more than 49.1 percent when compared to the shipments of the 2020-21 season.
 
As of Week 5, table grape harvests continued as per usual focusing on varieties such as Timco, Allison and Autumn Royal from the Atacama to Coquimbo regions, with nearly 20 percent of the volume still pending to be harvested in this area. In the Valparaíso and O'Higgins regions, the harvest is already in full swing, with the main harvested varieties being Sugraone, Sable Seedless/Sugrasixteen and Queen Rose, yielding good volumes of optimal quality.

Over the next few weeks, volumes will continue to ramp up significantly. The association anticipates a peak in white seedless grape shipments around Week 8 and red and black seedless around Week 12.

North America is still by far the biggest target market for Chilean grapes. During the 2020-21 season, Chile exported 51.4 percent of grapes to North America with 25.9 percent to East Asia and 13 percent to Europe.

To help feed that demand, Chile continues its research and development of new grape varieties. “During the 2021-22 season, shipments of new varieties are expected to reach 35 million boxes, followed by traditional varieties with 32 million boxes, and Red Globe with a little more than 17 million boxes,” says a supplier. 10 years ago, Chile exported more than 27 million boxes of Red Globe grapes.

Meanwhile, the USDA’s Animal and Plant Health inspection Service (APHIS) has recently published a pest risk assessment of a long-awaited systems approach for Chilean table grape imports, a decision that would greatly improve Chile’s market access. As it waits on public comments on this proposal (with a March 29 deadline), an approval would mean that Chilean table grape exporters would no longer be required to use methyl bromide fumigation on fruit sent to the U.S.

And in Mexico there is also a shift towards newer varieties of grapes.

The Northern Mexican grape season generally begins in early May and goes until the first or second week in July, though the varietal switch may make for tricky timing between the switch from the Chilean grape season to the Mexican one. “This year if everything goes well in Chile there still could be a gap because of the newer late-producing varieties,” says one grower-shipper. He notes that Chile could go with supplies until May 15-20 while Mexico won’t see significant volumes at least until May 20th.

May-June of course is also when early California grapes will start production as well.

All of this comes following strong demand over the winter for grapes. “But in the winter, the majority of grapes go from Chile or Peru to the East Coast ports. So January was difficult, mostly because of logistics--not a lack of grapes,” the grower-shipper says. “And there was very little fruit coming to the West Coast because the California ports had difficulties too.” 

As for prices, the winter season has seen higher pricing on grapes. “The whole month of January, prices were mid-$30s. Right now they’re still in the low to mid $30s. We’ll see how long that keeps that high,” he says. 

Australia: Australian grape exports negatively impacted by COVID-19 pandemic
Australian table grapes were the highest valued export fruit crop in the financial year ending June 2021, worth $460.7million, according to the latest statistics. For the year ending June 2021, a total of 198,389 tonnes of table grapes were produced in Australia (down 8% from the previous year) and valued at $632million (down 16 per cent). In a year impacted by the COVID-19 pandemic, exports took a big hit, with volumes down by 21 per cent to 120,725 tonnes, and value down by 26 per cent to $460.7million. China (35%) was the highest individual market destination, even though it took a massive drop from 62,930 tonnes to 43,013 tonnes from the previous year. It came as the statistics showed that 62 per cent of Australian households purchased table grapes. Menindee and Thompson, are the two most common green varieties in Australia, accounting for 38 per cent of production, followed by Crimson, Flame and Globe, the main red varieties in Australia, making up 30 per cent of fresh production.

China: Imported grape prices drop, Logistics remains the main challenge
On the Chinese market, imported grapes are one of the most important imported fruit items. Grapes are mainly from Peru, Chile and Australia. At this stage, the market supply is dominated by Peruvian grapes. Compared with before the Spring Festival, the overall price and demand of imported grapes after the festival have dropped significantly. At the same time, as with many other fruit items, logistics remains a major challenge. Currently, most grapes are from Peru. Peruvian grapes are generally available from December to the end of February of the following year, after which Chilean grapes take over the market from March until June.

Logistics are still a major challenge for merchants. It is understood that due to the epidemic, there are a lot of backlogs of containers in the customs this year, and the release speed is slow. A container will be delayed for about 14 days, while in the past it was generally only delayed for 2-3 days

GLOBAL OVERVIEW GRAPES

 


Grapes remain a popular fruit among families in many countries, with over 62% of families purchasing them in Italy and Australia. Despite their popularity, however, this market has been facing issues in logistics, as many others have too, as well as suffering the effects of the COVID-19 pandemic. These issues have affected both prices and demand, with prices increasing in the Netherlands, Germany and France, but dropping in Spain. In Australia the pandemic caused grape exports to decline by 26 percent in value.

Netherlands: Tight supply of grapes, high prices and many quality issues
The enormous delays in shipments have led to tight supplies of grapes in recent weeks. A Dutch importer expects the availability to improve in the coming weeks, as the supply from both South Africa and India will increase. It is expected that this will also put some pressure on prices. The prices have been very good up to now. For a 4.5 kilo box of white grapes, the market currently pays between 13.50 and 15 euros. A side note of the current market situation is that due to the rain in South Africa, a lot of grapes with quality issues are coming in across the board.

Germany: Still high demand for grapes from South Africa
South African products have dominated the market, with new additions including Sugraone and Black Gem. Peruvian Crimson Seedless and Red Globe were also on the market, but lost relevance overall. Imports from Namibia played a rather minor role. The interest was not particularly strong and was satisfied without any problems. Batches with weakening conditions were affected by reductions in Hamburg. In Cologne, Peruvian batches became cheaper. 

While a few weeks ago there were supply bottlenecks for grapes from South Africa, an importer from North Rhine-Westphalia can now look back on a more positive development. The demand for grapes from South Africa is currently very high, due to the fact that there are no other grapes available for purchase at the moment, at least in his area. The quantities are also satisfactory. He had to increase his prices by 7-10%. 

France: Up to 30% higher prices for grapes in France
The Peru season is about to end and the French market is now in the middle of South Africa season. Due to logistical issues, grapes are arriving in France with between 10 and 18 days of delay, which could be a problem for the quality of the product. The prices of packaging and other costs put the price of grapes up to 30% higher than usually. The consumption is impacted by this. Except for new varieties, for which prices are very high and demand is excellent.

Spain: Low prices for grapes on Spanish market despite high demand
The demand of table grapes remains high in Spain, especially white seedless grapes, as well as in France and other Mediterranean countries. However, the availability of white seedless grapes has been limited in recent weeks due to the delays of South African exports as well as the influence of heavy rains in two of the major growing areas of the country. India has contributed to complete the supply in those European markets that accept its grapes. Meanwhile, the Peruvian season is ending and the Chilean grapes will arrive soon, also in smaller quantities, as the US market is paying well for them.  

As for black seedless varieties, they are showing a very unequal quality upon arrival, both the last grapes from Peru and the first from South Africa, with rotten batches and small sizes. There was also a shortage of red seedless grapes at the end of December and beginning of January, due to the delays from South Africa, which has been already solved and there is now full availability.

The global logistic problems with shipping companies have gotten worse in the last two weeks, making it more complicated to supply enough grapes, which are already scarce in the case of white seedless grapes,” says a Spanish importer. “Despite the limited supply, prices are low. The production and packing costs are higher and prices at origin remain high, but supermarkets are not willing to pay much more at the moment.”

Italy: First signs of normalization in the grapes market category
According to statistics, table grapes were purchased in the last year ending in December 2021 by approximately 16.5 million Italian families, corresponding to 63.2% of all families. As with other types of fruit and vegetables, in the last two years there has been an increase in the levels of penetration, linked to the pandemic scenario and the general increase in purchases for domestic consumption. Two years ago (pre-Covid) grape penetration levels were 60.1%

However, we are witnessing the first signs of normalization of the category, with a frequency of purchase (absolutely high for grapes) equal to 6.7 average acts for families over the year, down by 4.6% compared to the 2020 but with a level that remains slightly higher than 2019 (+ 3.4%), the last pre-Covid year.

The organic trend, on the other hand, is rather stable: there are just over 2 million families who have bought organic, with no changes in the last 3 years.

South Africa: Good estimates for South African grape crops
The Berg River and Hex River growing regions will enter their peak next week and prospects for the grape crop in these two areas, also South Africa’s largest, are very favourable, according to the South African Table Grape Industry.

Fruit is flowing well and cold store capacity is looking good, but there is a lag between intakes and exports because of shipping and port delays but fruit is flowing well at the moment.

Heavy rain in the Northern regions (Limpopo) and a heatwave in the Olifants River growing region have necessitated a downwards adjustment of the crop estimate for these two regions, while the crop estimate for the Orange River region has been increased, despite the rain the area received.

The lower threshold of the initial estimate has been increased to 72,8 million 4.5kg cartons while the upper threshold remains the same at 77,7 million 4.5kg cartons.

Thanks to the increased number of reefer vessels (conventional vessels) loading grapes in Cape Town, the flow of grapes is good. “Delays in the Port of Cape Town is still a challenge and of major concern,” the grape industry recently noted.

North America: Supplies of Chilean grapes are steady and getting stronger by the day 
According to the Chilean Fresh Fruit Association, Chile has exported 74,820 tons globally, a decrease of 15.8 percent from the 88,836 tons exported through the same week last season. Of the total volume exported season to date, 59,555 tons (79.6 percent) or 7, 262, 786 boxes, have been shipped to North America.  

The anticipated higher volume of exports is driven primarily by the increase in new varieties by more than 73.5 percent in relation to the 2019-2020 season and by more than 49.1 percent when compared to the shipments of the 2020-21 season.
 
As of Week 5, table grape harvests continued as per usual focusing on varieties such as Timco, Allison and Autumn Royal from the Atacama to Coquimbo regions, with nearly 20 percent of the volume still pending to be harvested in this area. In the Valparaíso and O'Higgins regions, the harvest is already in full swing, with the main harvested varieties being Sugraone, Sable Seedless/Sugrasixteen and Queen Rose, yielding good volumes of optimal quality.

Over the next few weeks, volumes will continue to ramp up significantly. The association anticipates a peak in white seedless grape shipments around Week 8 and red and black seedless around Week 12.

North America is still by far the biggest target market for Chilean grapes. During the 2020-21 season, Chile exported 51.4 percent of grapes to North America with 25.9 percent to East Asia and 13 percent to Europe.

To help feed that demand, Chile continues its research and development of new grape varieties. “During the 2021-22 season, shipments of new varieties are expected to reach 35 million boxes, followed by traditional varieties with 32 million boxes, and Red Globe with a little more than 17 million boxes,” says a supplier. 10 years ago, Chile exported more than 27 million boxes of Red Globe grapes.

Meanwhile, the USDA’s Animal and Plant Health inspection Service (APHIS) has recently published a pest risk assessment of a long-awaited systems approach for Chilean table grape imports, a decision that would greatly improve Chile’s market access. As it waits on public comments on this proposal (with a March 29 deadline), an approval would mean that Chilean table grape exporters would no longer be required to use methyl bromide fumigation on fruit sent to the U.S.

And in Mexico there is also a shift towards newer varieties of grapes.

The Northern Mexican grape season generally begins in early May and goes until the first or second week in July, though the varietal switch may make for tricky timing between the switch from the Chilean grape season to the Mexican one. “This year if everything goes well in Chile there still could be a gap because of the newer late-producing varieties,” says one grower-shipper. He notes that Chile could go with supplies until May 15-20 while Mexico won’t see significant volumes at least until May 20th.

May-June of course is also when early California grapes will start production as well.

All of this comes following strong demand over the winter for grapes. “But in the winter, the majority of grapes go from Chile or Peru to the East Coast ports. So January was difficult, mostly because of logistics--not a lack of grapes,” the grower-shipper says. “And there was very little fruit coming to the West Coast because the California ports had difficulties too.” 

As for prices, the winter season has seen higher pricing on grapes. “The whole month of January, prices were mid-$30s. Right now they’re still in the low to mid $30s. We’ll see how long that keeps that high,” he says. 

Australia: Australian grape exports negatively impacted by COVID-19 pandemic
Australian table grapes were the highest valued export fruit crop in the financial year ending June 2021, worth $460.7million, according to the latest statistics. For the year ending June 2021, a total of 198,389 tonnes of table grapes were produced in Australia (down 8% from the previous year) and valued at $632million (down 16 per cent). In a year impacted by the COVID-19 pandemic, exports took a big hit, with volumes down by 21 per cent to 120,725 tonnes, and value down by 26 per cent to $460.7million. China (35%) was the highest individual market destination, even though it took a massive drop from 62,930 tonnes to 43,013 tonnes from the previous year. It came as the statistics showed that 62 per cent of Australian households purchased table grapes. Menindee and Thompson, are the two most common green varieties in Australia, accounting for 38 per cent of production, followed by Crimson, Flame and Globe, the main red varieties in Australia, making up 30 per cent of fresh production.

China: Imported grape prices drop, Logistics remains the main challenge
On the Chinese market, imported grapes are one of the most important imported fruit items. Grapes are mainly from Peru, Chile and Australia. At this stage, the market supply is dominated by Peruvian grapes. Compared with before the Spring Festival, the overall price and demand of imported grapes after the festival have dropped significantly. At the same time, as with many other fruit items, logistics remains a major challenge. Currently, most grapes are from Peru. Peruvian grapes are generally available from December to the end of February of the following year, after which Chilean grapes take over the market from March until June.

Logistics are still a major challenge for merchants. It is understood that due to the epidemic, there are a lot of backlogs of containers in the customs this year, and the release speed is slow. A container will be delayed for about 14 days, while in the past it was generally only delayed for 2-3 days

Next week: Global Overview Cucumbers

Global blueberry industry continues to expand with demand

 


A recent report from Rabobank, titled Consistent Quality is the New Blue, gives a glowing overview of the global blueberry industry predicting that fresh blueberry exports are likely to expand steadily during the next few years. It said companies are being pushed to be more productive and more efficient and to consistently provide high-quality fruit. Improved cultivars will also play an increasingly significant role across growing regions.

According to the report, global highbush blueberry planted area surpassed 205,000 hectares in 2020, and production is expected to continue to grow firmly in the next few years. Most of the planted area is still concentrated in the Americas, but the Asia-Pacific region is expanding fast.

North America continues to be a relevant blueberry-growing region, but production shares are shifting, with South America expanding rapidly, and new growing regions also being developed in Europe, Africa, and Asia, the report said.

GLOBAL OVERVIEW LIMES

 


The global lime market is currently set for a revival, as the catering industry continues to open back up across many countries, increasing the demand for the citrus fruit. Markets like the Netherlands expect this trend to continue as the year progresses and as the tourism industry gets back on its feet in the wake of the COVID-19 pandemic.

Much of the supply of limes on European and American markets is currently coming from Brazil and Mexico, despite ongoing shipping issues, whilst South Africa and Australia focus on their domestic supply. South Africa in particular has seen an increase in demand for limes, as Mexican cuisine, in which limes are a frequent ingredient, becomes more popular in the country. Not all is sunshine in limes however, as both Mexico and South Africa have seen heavy rains in their production areas, causing significant fruit dropping, and lowering supplies.

Netherlands: Market for limes picks up further
Dutch importers expect the market for limes to pick up further. "In the Brazilian production areas, there has been almost continuous rainfall, which has led to a significant reduction in the harvest. The expectation is therefore that the market will run out of limes. Prices are still at a level of around 5-6 Euro, but there will be a few euros more in the coming weeks. January was not a bad month, but I think that sales are weakening this month. On the demand side, it is positive that the catering industry has opened up further. At the same time, the closing time is not yet such that it has really set the consumption of limes in motion again. That is expected to happen again when people go back on holiday and tourism comes back to life."

Germany: Limes from Brazil and Mexico dominate the market
A wholesale trader from North Rhine Westphalia currently sources limes through an importer from Rotterdam and buys them for 7-8 Euro per case. He usually sells between 100-150 crates a week in 54-calibers with 4kg. At the moment, he is only selling around 70-80 crates. According to the trader, the limes are characterized by a top quality with rich juice and only have few spots on the peel. There have also not been any delivery problems lately. 

A big importer from Northern Germany also imports Brazilian limes. He said that their imports have increased significantly due to the fact that the demand has fallen domestically. Brazil is now exporting a lot abroad, especially to Europe with mainly Persian or Tahitian limes, a seedless variety. Also popular is the thin-skinned Sutil variety. The Brazilian product can be offered almost all year round, which is also related to the growing professionalization on site.

In Mexico, on the other hand, domestic demand is much higher with more produce being exported to the U.S. and Canada. Volumes have also increased for Mexican products. For the German and European markets, limes from Mexico are not expected again until May and are likely to last until December. 

Prices for limes have remained relatively stable in recent weeks. Market circumstances also made for rather muted demand.

Italy: Limes from Brazil and Mexico on the Italian market
The market for limes is stable in Italy at the moment, after a pre-holiday buzz in December, when the supply of the citrus fruit was coming from various origins. Demand has been declining for a few weeks now.

A wholesaler in northern Italy says: "Consumption is not spiking up or down. At the moment, the average purchase price is around 5 Euro per 4.5 kg package for lime from Brazil, about 1.20 Euro per kg. On sale, you generally have to calculate an extra 2 or 3 Euro. Mexican limes are limited on the market and generally have an average purchase price of 1.50 Euro per 4 kg package more than the Brazilian product."

Spain: Excellent start to 2022 Spanish lime market
2021 turned out to be a very good year for lime sales in Spain and 2022 is starting off better than expected, although it will bring major logistical challenges. "The month of January has been positive, with prices between 6 and 7 Euro per box of 4.5 kg. This beginning of the year has been better than expected. There have been many delays in the arrival of ships from origin and this has made that supply would be more tense than in other years, taking into account that in January there is usually less demand," says an importer. January and February are not months of great consumption of lime, so it is still difficult to see a greater reactivation of the catering channel compared to 2021 with this product. For the moment, consumption is calm, but it is to be hoped that in spring, and if the indicators of the pandemic continue to improve, consumption will pick up.

"We are coming off a good 2021 in which sales went very well in the summer," recalls the importer. The good availability of the product from Brazil also helped to develop sales well. In fact, Brazil exported 30% more volume last year than the previous year and, whilst Mexico sold less product in Europe due to lower production caused by weather problems. Furthermore, a partial opening of tourism and restaurants in general helped limes sales.”

According to the importer, there are several challenges with regard to lime distribution: On the one hand, logistics continue to complicate the flow of imports with delays to the ships and documents that arrive later than the fruit itself. On the other hand, the health authorities can’t cope with that much work and the new regulations block the fruit upon arrival in some occasions. The increased cost of logistics will also be a challenge in the coming months, not only for limes, but for all fruits. It is a challenge at the macroeconomic level in general. At the moment, Spain is mainly importing from Brazil.

South Africa: Increase in popularity of limes
The months of January and February are peak lime season in South Africa. Supply of the citrus fruit is currently strong and prices are low, as growers expect this time of the year. A Lowveld lime grower says lime prices were strong last year while local supplies were low: between R140 (7.9 euros) and R180 (10.2 Euro) for a 3kg bag from July until November; currently the price is around R30 (1.7 Euro) a bag.

The growing popularity of Mexican restaurants in South Africa and the lifting of COVID regulations have stimulated lime demand.

There has been a lot of fruit drop in lime orchards as a result of the high amounts of rain and many overcast days over South Africa this summer has slowed growth.

Although South Africa exports very few limes, some limes are imported from Brazil counter-seasonally.

North America: High prices for limes on NA market expected to hold up
Lime prices on the North American market continue to stay high and are expected to stay that way for the near future.

“Three weeks ago, the market went from a $24 market to a high of $60 FOB Texas,” says one shipper. “I think in the short term it will stay elevated, maybe until the middle of March. However, there is a price point where people will just stop using limes. But it’s tough to gauge what that is.”

What is driving the higher pricing right now? “The lime market is a roller coaster ride or a yo-yo,” says the shipper. January for instance saw inconsistent crossings of loads from Mexico into South Texas, the largest point of entry for limes in the U.S. According to the USDA, the week ending January 27th saw 622 loads while the week ending January 20th was 379 loads. “You get these swings. They are not necessarily the fault of growers or the production people. Sixty percent of all the limes that flow through Mexico come through Veracruz and the city of Martínez de la Torre,” he says.

However micro-climates throughout Mexico have also allowed for lime crops to grow in many other parts of Mexico, in regions that 10-15 years ago saw minimal to no lime production. Those regions account for the remaining 40 percent of Mexican production. “That’s the swing in the market nobody has control over. In this case, they tried to predict a production shortfall but they found limes elsewhere, from those smaller production zones,” he says.

Limes can also be trickier to harvest as well. “Limes produce roughly four time a year, so 90-100 days from flower to fruit,” says the shipper. “But, taking in these micro-climates, you also have to harvest them at the right point. Limes have an optimum point where you have to harvest them.”

Meanwhile demand continues to grow for the citrus product. “Consumption increases every year. But to complement that, there have been more production areas being brought in. So what 10-15 years ago was a large supply for a low market, today is the opposite,” says the shipper.

He does note, however, that currently demand is on the lower side, thanks largely to weather. “When there’s bad weather in the U.S., particularly in the Northeast, which has the highest concentration of population in the country, when it’s cold and snowy, people don’t want to go out. Cold weather reduces demand on lime sales,” he adds. 

Australia: Good prices for Australian limes as exports overtake imports
Limes are in good supply at the moment and selling for good value, at most of the major Australian markets. The Sydney Markets reported the citrus fruit is in plentiful supply, and very affordable at $3-$7 a kilo or 30¢-60¢ each, when bought in bulk. At major supermarkets, the cost is slightly higher at 80c-$1.30, with an increase in demand for the fruit across the summer months, as consumers are inspired to use limes in tropical drinks and cooking/salads.

Last year a peak industry body noted the country produces about 30,000 tonnes of limes each year, with 28,000 tonnes produced in Far North Queensland year-round. Along with lemons, limes are often the primary source of income for most FNQ growers, and national exports in this category are slowly increasing year on year, and according to statistics, in the year 2019/20 exports (4,206 tonnes) overtook imports (3,902 tonnes).

Next week: Global Overview Grapes!

Prices of mangoes will increase by a maximum of 5%

 

"Prices of mangoes will increase by a maximum of 5%"



In 2006, Volker Daniel and Michail Kios founded fruit delivery company V. Daniel & M. Kios GbR to supply offices and private households around the greater Munich area with fresh fruit and vegetables.

Currently, the company's assortment includes exotics such as mango, pineapple and papaya, which they purchase from the Munich wholesale market. "The quality of the mangoes is good. There are also good quantities available. Prices will increase by a maximum of 5% this year," Kios says.

The products are sold primarily in to offices in Bavaria, with a focus on Munich and Augsburg. "Demand has not increased compared to last year, but at the moment, of course, it is still a quite difficult situation. Towards the summer, however, the situation could perhaps ease up somewhat again." There have also been no delivery problems, given the volumes offered by the fruit supply company. Kios also had no other problems to report.

Deliveries are made via the company's own environmentally friendly delivery vehicles or are delivered CO2-free via UPS parcel service. The fruit delivery company also has a logistics center spanning 753 m2 in Taufkirchen.

For more information:
Michail Kios
Obstlieferei V. Daniel & M. Kios GbR
Tegernseer Landstr. 71
82024 Taufkirchen
Tel: 089 - 35 64 53 30
E-Mail: info@obstlieferei.de
Web: https://www.obstlieferei.de/ 

GLOBAL OVERVIEW PINEAPPLES

 

GLOBAL OVERVIEW PINEAPPLES

The global pineapple market is hugely variable depending on location this year, with the exotic fruit faring much much better in some countries compared to others. Although production country Taiwan has been banned from exporting their pineapples to China, this has led to a huge increase in their sales to Japan and Hong Kong. In South Africa, the lower purchasing power of consumers this year has led to a decrease in sales, whilst in the Netherlands the usual Christmas boost may be lacking this season. Meanwhile in the Americas, higher production and logistical costs may mean a significant increase in prices in the future.

Netherlands: Disappointing pineapple sales in traditionally quiet November month
"The customers don't want it right now. Sales are very disappointing in both the retail and the free market", sighs a Dutch pineapple importer. "Actually, there is not much to say about the pineapple market. It's quiet, there's not much coming in and prices can't really be raised. November is never a busy pineapple month, but I don't foresee a revival in the coming weeks either. The days when you got pre-orders for Christmas are over."

Italy: Higher consumption of pineapples in December
According to the GFK Consumer Panel data, over 10 million Italian families (39% of the total) have purchased pineapples at least once in the last year ending September 2021. Another 13 million Italian families currently do not buy pineapples. The moment of highest consumption is the month of December, on the occasion of the Christmas holidays.

The commercial penetration of fresh-cut pineapple is growing: up to two years ago it was only 2.5%, while today it reaches 4.3%. Online purchases have also doubled: 6% of Italian families have bought pineapples online at least once (this number was half two years ago).

In fruit juices, the pineapple flavor is the sixth in the penetration ranking (after ACE, peach, pear, apricot and orange) with over 4.3 million purchasing families (16.6% of Italian families), an increase compared to past years.

Pineapple is imported to Italy by sea or by air. Pineapple by sea recorded an average price, throughout 2021, of 1.20 euro / kg wholesale, in Milan. Here, the average price of pineapple imported via area is 3.50 euros / kg.

The product that arrives in Italy by air had a good market share until a few years ago, after having established itself in supermarkets, restaurants and specialized retail fruit and grocers. Lately, however, this product has returned to a niche in the market, due to the arrival of a new item that is transported by ship: pineapple ripened on the vine.

The import of pineapples by air takes place all year round, with various origins: Panama where the best quality is found in the months from April to January, then from the end of October the importation resumes from the Dominican Republic, which produces a prime level pineapple. The peak of pineapple imports in Italy is the month of December, when it is also imported from Ghana.

The main variety, at a global level, is the MD2, which has a very yellow flesh and a sweeter flavor than the Smooth Cayenne variety, which has been almost completely abandoned.

South Africa: Restrained consumer spending detrimental to South African pineapple market
Local pineapple production is year-round from the Eastern Cape and KwaZulu-Natal, with volumes picking up this time of the year.

However, a producer says consumer demand for pineapples are down to pre-COVID levels (there was a pineapple frenzy last year for brewing purposes when alcohol was banned as per COVID lockdown restrictions) because it’s a niche fruit and consumer spending is restrained in an economy under pressure.

Pineapple exports, mostly by air, are still severely depressed. South Africa has in the recent past exported pineapples to the Middle East, Europe, UK, Canada, the USA and Indian Ocean islands. A lack of flights as a result of the suspension of international travel and tourism has been detrimental to air freight opportunities.

The average market price is R7.65 (0.4 euro) for pineapples, down from the previous week.

Taiwan: Huge increases in Taiwanese pineapple exports to Hong Kong and Japan as result of Chinese ban
The import of pineapples from Taiwan to China was suspended from March 1, 2021. Mainland China is Taiwan's largest export destination, accounting for more than 90% of its exports. Over the past few months, the proportion of Taiwan’s pineapple exports has changed. Taiwan’s second and third largest export destinations of pineapples, Japan and Hong Kong, have seen their imports increase several times over.

In Japan, from January to July this year, Taiwan’s pineapple imports increased more than seven times compared with last year, to 17,583 metric tons; imports increased by nearly 6.5 times compared with last year. For Hong Kong, the exports from Taiwan, from January to July, increased nearly 5.5 times.

China: Chinese pineapple prices rise following banning of imports of Taiwanese fruit
Banning Taiwanese pineapples made mainland domestic pineapples very popular. At the moment, Zhanjiang Xuwen is ushering in their busiest planting season. This year, Xu Wen’s field purchase price for pineapples is generally 1.8-2.5 yuan/500 gram, with the highest price reaching 3 yuan, which has doubled from last year’s highest price of 1.5 yuan and is the highest price in 30 years. The quality of Xuwen's pineapples this year is better than in previous years, and the good quality has been sold at a good price, which has led to a general increase in the income of fruit farmers.

North America: New price levels expected for pineapples due to higher material costs
The volume of pineapples is approximately 10 percent higher than this time last year.

“This is good since several retailers have invested in promoting the category to keep sales at the level the pandemic has increased them to,” says one grower who grows its pineapples in Costa Rica.

The increase is attributed to a few reasons--first, the volume in the industry is concentrated in larger, more technical operations. “Also, the weather conditions have been exceptionally good for pineapples. These factors have positively impacted overall productivity levels which means that the availability of larger pineapples have increased vs. the small and medium sizes.”

Supplies continue to come from dominant producing country Costa Rica--it supplies approximately 90 percent of the pineapples consumed in the U.S. and Europe. “Mexico exports some pineapples into the U.S. but they mainly stay in the Texas area,” adds the grower.

The grower notes that it plans greater availability in November annually to cover the increased demand around the holiday season--particularly in Europe. However the U.S. remains its largest market. “We expect that consumption will increase as has the consumption of avocados and other fruits that consumers recognize as highly nutritious,” says the grower, adding that several retailers have turned to promoting the health benefits of pineapples and recipes to educate consumers.

Meanwhile, prices in Costa Rica have increased due largely to the increase in input costs such as cardboard, agro chemicals and more. “And the worldwide disruption in the supply chain affects importing our production supplies. This trend will continue into the New Year and it’s not only affecting the pineapple industry but the entire consumer market.”

“We are working closely with our partners to try and mitigate these rising costs and to keep the business sustainable,” says the grower. “Although cost increases are significant and an unavoidable reality, we have found ways to mitigate through partnering with customers to find operational efficiencies which limit the impact to customers and ultimately to the consumer.”

The grower adds that this is also the time of year when pricing for the following year is established with retailers and program customers. “However this year we have a completely different context with higher operational and logistics costs,” they say. “We expect that in this process, a new price level for pineapples will be set. This is key for companies like ours that are invested in the production and committed to maintaining our quality and service level.”

Australia: Positive outlook for Australian pineapple season, but fears that challenging weather could muddy waters
A major Australian producer is gearing up for their busiest time of the year in terms of pineapple production, to meet the spike in demand over summer. While the company produces the fruit all year round, their managing director noted that it has been a mild spring, weather-wise, in their North Queensland production region of Mareeba, which has led to some good signs. He says: "Fruit size is looking positive right through until January. Summer pineapples are always of a good eating quality and in the nice warm humid weather they really turn it on from a flavour perspective. It's looking like a solid pineapple harvest for us, but generally we do try to maintain a steady supply as consumers don't like too may peaks or troughs." He does note however, that it could be a challenging few months with weather, as several storms and possibly even a cyclone are forecast throughout the summer months for North Queensland. That could pose both harvesting and transport logistics issues, especially if roads and highways are cut by flooding.

GLOBAL OVERVIEW TOMATOES

 

GLOBAL OVERVIEW TOMATOES

This season a common theme in the global tomato market is increasing pressure from viruses such as the ToBRV, as well as continued abnormal weather patterns and rising production costs. The increased cost of energy in most countries is of particular concern as the northern hemisphere switches to lit cultivation during the darker winter months. All these factors combined mean higher tomato prices across the board.

The Netherlands and Belgium: Energy crisis and virus issues put pressure on tomato growers
In the Dutch and Belgian tomato greenhouses, the lights have been on for a while now. It is time for the lit crops, after an exceptional season so far with remarkably high prices since the summer. At the moment, however, it is the high energy prices that are the most striking factor.

The season for the unlit crops is over, except for a small group of autumn growers with mainly large truss tomatoes. They go into production around this time for a short period. Most growers without lights are now in their crop rotation and preparing for a new season. Certainly for growers who plant a new unlit crop in December, there will be shifts due to the energy crisis. It is expected that next spring there will be peaks and troughs in production at different times.

This was already the case this year, mainly due to virus problems. This caused 'winter prices' in the summer when growers were forced to clear their greenhouses after being infected with the Tomato brown rugose fruit virus (ToBRFV), both in the Netherlands and in Belgium. The latest updates of the official figures show 29 infections in the Netherlands and 12 in Belgium. As a result of virus problems, growers are orienting on new crops. There are also growers who are switching to cucumber or sweet pepper, for example.

After a summer with high prices, an autumn followed in which the prices remained at a high level and even appeared to be able to continue to rise, contrary to the trends of recent years. In recent weeks, the upward price trend has stabilised for a while. November often sees a small dip, when imported products become available in large quantities. Nevertheless, this week the prices of truss tomatoes, the largest segment among the exposed growers, are once again on the rise. The prices for loose tomatoes have on average been slightly lower than those for vine tomatoes in recent weeks.

This winter, some growers in the Netherlands and Belgium are choosing to skip their lit crops due to high energy prices. Growers with unfavourable energy contracts who currently have to buy gas and electricity at high prices have decided to leave their greenhouses empty this winter. There are also growers who have adjusted their lighting strategy, or their cultivation strategy in such a way that they can temporarily do with less energy. As a result, the plants are growing slower at the moment, but growers hope to be able to add gas, literally and figuratively, as soon as energy prices drop again. At the moment, a fall is not yet in sight.

Germany: Low temperatures cause drop in demand for tomatoes
Due to the low temperatures in Germany, demand has fallen significantly. Nevertheless, the supply in terms of volume and varieties is as high as ever, so that demand could be easily met. The Dutch supply decreased noticeably, while the supply from Spain increased.

The Spaniards have also noticed the rising gas prices in the Netherlands and are adjusting their market prices accordingly. As a result, the price for the early Spanish tomatoes is notably higher for certain varieties than for the latest Dutch tomatoes. The remaining supply comes mainly from Morocco, Belgium and Italy.

Italy: Rising production costs and ToBRV pressure hamper Italian tomato producers
According to data, in the last year ending in September 2021 over 23.2 million Italian families (89% of the total) purchased from the tomato category at least once. Italians buy tomatoes on average 17.2 times a year, for an average cost of 2.10 euros.

For the producers, the 2021 season was a difficult one. In the summer, tomatoes suffered from high temperatures and diseases such as the Tomato Brown Rugose Fruit Virus. The heat halved the yields, while the costs have risen. The average price of cherry tomatoes (1.50 euros / kg) only partially paid off the costs. Even now, in the autumn, demand from foreign markets, such as Germany and Austria, has weakened, due to the resumption of the pandemic. Given the uncertainty, it is likely that some producers will decide in the future to reduce the hectares planted with tomatoes.

Spain: Decline in production area of Spanish tomatoes due to pressure from multiple sides
The month of November began with an increase in the prices of all the types of tomatoes, with the exception of the vine tomato. The vine tomato, together with the smooth tomato, are the commercial types with the highest price in the auctions of Almeria. Tomatoes continue to lose ground in the whole Andalusian horticultural area. According to initial estimates for the season, it will reduce its surface by 3% compared to last season, when it was close to 8,400 hectares. Its high production costs, especially labour, strong international competition, mainly from Morocco, as well as problems caused by viruses and Tuta absoluta, together with prices that fail to meet the expectations of producers, are leading to their progressive substitution by crops with a lower salary impact such as peppers and zucchini. 

According to different sources in the sector, the types of tomato that will reduce their cultivation surface the most this season will be the round tomato and the vine tomato. The pear tomato maintains a number of hectares of cultivation similar to last season. On the other hand, the specialties with the highest added value and profitability, such as rose-type tomatoes, beef, cherries of different colours, etc., show greater strength to compete with productions from third countries, and show an increase in their growing area. In the month of November, Andalusian production, still limited, overlaps in international markets with the end of the Central European season which, despite offering lower quality product, puts pressure on Spanish tomato prices. Moroccan production is increasing notably in mid-November, competing with greater intensity with the supply from Almería, Granada and Murcia in the European markets.

South Africa: Heavy rains affect South African tomato harvest
Tomato prices have significantly fallen due to high volumes on the market over the past month. The average price on the market decreased by 42% to R4.47 (0.25 euro) / kg due to an increase in supply, but a turning point is expected because rain is hampering harvesting in the northern region.

Tomato producers in the northern parts of the country (Limpopo, Mpumalanga, Northwest Province where tomatoes are grown) are on tenterhooks: there has been widespread, substantial rain since the weekend. If the summer has above average rainfall, as is predicted, it would have a direct effect on pest pressure and yields (as happened last year) and lower volumes.

A tomato trader reports that there are some producers who lost much of their yield to pest damage last year (for instance the newish arrival Tuta absoluta) and if the same happens this year (and Tuta absoluta pressure is already very high) they could cease tomato production, at least for the foreseeable future.

China: Poor weather and increased production costs drive up Chinese tomato prices
From the summer onwards, Chinese tomato prices have remained high. Some time ago, Shandong, Hebei, Shaanxi, Shanxi, Henan and other places encountered continuous rainfall for many days, causing the fruit setting rate of tomatoes to be lower than usual, and the volume of tomatoes on the market to be significantly less than in normal years. Since the beginning of this year, the prices of seeds, fertilizers, pesticides, etc. have increased, driving up the production cost, rising oil prices have driven up transportation costs, which also inflated vegetable prices. At present, the wholesale price of ordinary tomatoes remains high, the price is about 6 yuan/500 gram.

In recent years, the demand for high-end cherry tomatoes in China's first-tier cities has surged. Taking Shanghai as an example, due to the limited planting area in the urban area, the current cherry tomato supply is less than 1/5 of the total consumption. Therefore, some companies have begun to build greenhouses in urban areas within the city, to reduce transport costs and ensure the local supply of cherry tomatoes.

North America: Consistent supply and better prices for NA tomatoes
For one U.S.-based grower with hydroponic operations in Mexico, grape tomatoes seem to be taking the lead in growth in the category, and the grower is looking to expand production on grape tomatoes. The grower also grows beefsteak tomatoes and tomatoes on the vine (TOVs).

“Supplies of beefsteak and TOVs are similar to last year at this time--there’ve been some ups and downs and following the pandemic. Our numbers aren’t always following the trend we’re used to. But overall it’s nothing unexpected and we’re able to supply tomatoes,” he says.

Canada is also in production with greenhouse tomatoes at this time. Meanwhile demand for tomatoes is consistent. “We’ve seen good demand and we’re pushing a lot more tomatoes with the winter and holiday season coming up,” he says. “Overall, if anything, demand is slowing increasing on tomatoes with grape tomatoes especially. There’s a big market for grape tomatoes.”

While grape tomatoes have helped grow the category, particularly as a snack choice, the grower says that pre-packaged salads and salad kits are also a growing option for grape tomatoes. “They’re increasing in popularity and we’re finding a lot of clients are looking for product that can sit in their kits,” he says.

As for pricing on tomatoes, it’s fairly comparable to last year at this time.

Meanwhile Florida has begun its field tomato production and the season is on time unlike some other commodities in production at this time such as specialty peppers, which are delayed. “The quality is excellent. We had quite a bit of rain this fall early and some of these later passing fronts have helped the crop,” says one Florida grower who is in production with vine-ripened round tomatoes and Roma tomatoes, a new item for them. “The quality is looking really nice on the tomatoes. You can irrigate but it’s never the same as a nice rainfall. It’s balanced everything out and now the weather is cooling down so that’s helped us as well.”

While acreage has stayed the same, the grower has increased the overall footprint on both types of tomatoes.

As for demand, it’s good right now. “Everything is moving. Demand hasn’t been exceptional but it’s been good,” he says. Florida growers also are keeping an eye on increased freight rates which may make Florida product a more attractive option to nearby regions.

As for pricing, it’s started off in the mid-range to slightly higher currently and the grower says it’s better than last year’s pricing at this time.

GLOBAL OVERVIEW ASPARAGUS

 

GLOBAL OVERVIEW ASPARAGUS

The European asparagus season is still in its cultivation period, but there are already concerns in some countries about what to expect in the new year. Growers in Spain fear the rainfall over the winter will fall short, as they have only had less than half of what is needed for the asparagus cultivation. In Germany, growers are worried about the difficulties in obtaining seasonal labour from Eastern Europe. In other countries, the continued lack of space when it comes to air freight has hampered import seasons, particularly in South Africa, which does not produce enough asparagus domestically to meet the demand. Meanwhile, in the US, strong demand for the vegetable has provided growers with equally strong prices.

The Netherlands: "Besides green asparagus, tips and white imported asparagus are also increasingly in demand"
December always guarantees good asparagus sales, but for a Dutch exotic importer, the demand has really taken off this week. "We have quite a few promotions planned, so we go into the holiday season with confidence. Especially the asparagus tips - the top 15 cm of the normal green asparagus - are very popular this week."

What is also striking is that the number of asparagus transported by boat has also increased considerably. The main part of the asparagus import, however, is still done by air. "But the rates are sky-high now. There is even less air freight available in December than there already was because a lot of mangoes are now also being flown in from Peru."

The importer received the last product for 2021 from Mexico in early December and is now fully into the Peru season. "We have the usual rush for the holidays, but sales of import asparagus have been good all season. Besides the green asparagus, we also had a great season with white asparagus. We started this with various retailers throughout Europe and we will certainly continue this next year."

Germany: Green asparagus is gaining ground
German asparagus production has been professionalised for several years. As a local and seasonal product, the asparagus was one of the big winners from the COVID-19 crisis. Green asparagus in particular is gaining noticeably in direct sales. Despite the steady increase in acreage, experts see the climate as an obstacle to further growth in the long term. In view of the continuing COVID situation, it is feared that in the new season, which starts in mid-March, it will again be a challenge to obtain sufficient seasonal labour from Eastern Europe.

White asparagus, in particular, remains a domestic and seasonal business. Prior to the domestic season, asparagus from Greece and Spain, among others, are offered. Currently - during the winter - modest volumes of green asparagus from Peru are traded, but demand is limited, reports a trader.

Italy: Stable consumption of asparagus, but with rising prices
In Italy, the consumption of asparagus is highly seasonal. In autumn and winter, consumer demand is very low. An important buyer of an Italian large-scale distribution chain states that there is imported product on the shelves, at the moment, coming from Peru. The buyer buys it for 9 euros/kg and sells it for 11/12 euros. But consumption is very low. It could slightly increase around the Christmas holidays. However, Italian consumers are not accustomed to buying asparagus in winter.

According to statistics, 10.6 million Italian families bought asparagus in the last 12 months ending in October 2021. This corresponds to 40.7% of total Italian families, showing a slight increase (+0.2 points) compared to 2020. The frequency with which the category is purchased is not high: it is equal to 3.4 acts of purchase on average per family per year, a fairly stable figure in recent years.

Families spend € 3.91 on average per single purchase of asparagus: this figure is growing strongly compared to last year (+ 18.6%) and even more than 2 years ago (+ 20.4%).

Spain: Concerns about lack of rain during Spanish asparagus growing season
Spain is currently off season and importing green asparagus mainly from Peru. According to the biggest Spanish producer and importer, bringing asparagus from Peru is quite difficult and expensive at the moment due to the limited availability and high costs of the air freights. “Therefore, in just one week the prices of Peruvian asparagus went from USD $ 2,60 to $ 3,20.  The air space is also being used to import other fruit and vegetables, flowers and for passengers as well.”

The demand for air freight is high for the low availability. During November, Spain was importing from Mexico as well with reasonable prices, which alleviated the pressure on the market. Now the Mexican season is coming to a close and volumes are smaller and more expensive, due to the high demand from the US. In Europe, countries like Germany or France have a very seasonal consumption, but the demand remains stable all year round in countries such Spain and the UK, and it grows during Christmas and Easter time. According to the importer, the consumption in Portugal has grown significantly this year and this country is becoming a year-round consumer as well. That’s why, in these countries the consumers are still buying asparagus despite the higher costs at the moment. “Asparagus consumers in Spain, the UK or Portugal are very loyal in spite of the prices,” says the importer.  

Granada, the main asparagus growing area in Spain, will kick off its harvest around March, but the sector keeps looking to the sky longing for rains. The drought makes the coming season very uncertain, as farms had only around 100 ml per m2 and they still need 150 ml more to complete the growing period. Other products like olives are already facing serious difficulties in their harvests.

South Africa: Difficult domestic and import season for asparagus in South Africa
There was a slightly later start to the South African asparagus season by about a week, but warmer spring temperatures saw the asparagus production peak come through slightly earlier as well, towards the end of September towards the first week in October. It’s generally been a good season with high rainfall.

At the moment production is low, but growers will bring in volumes in time for Christmas.

It has been a bad year for asparagus both locally and for imports, according to a retail buyer.

Locally, because there are so few asparagus growers in South Africa “and we can’t get the volumes we need”, she says. Imports have been difficult because of exchange rates and air freight delays caused by the pandemic.

An asparagus grower said there seems to be lower production in Central and South America. “What we are finding is that there is very little purple asparagus available worldwide as well, so we haven’t been able to import in any purple asparagus.”

At times retailers get queries from customers about white asparagus, which is imported 12 months of the year as no one in South Africa grows it anymore. Since restaurants have been allowed to open again there has definitely been an up-take in sales.

Pricing has remained fairly consistent throughout the year with only small increases. Erratic supply has affected consumer demand.

North America: Strong prices due to strong demand for asparagus
Conventional asparagus has been plentiful recently in North America. “Supplies into the country have been up this year quite drastically so there’s been plenty of product available, especially out of Mexico. There’s a continual increase in farms and acreage and opportunities in Mexico to bring more product into the country,” says one shipper. “Peru is also bringing product into the country as well primarily by boat.”

He also notes that there are a lot of growing regions coming into production over the course of the next two weeks. However, organic asparagus is currently in a lighter production cycle, as expected. “We’re pretty much where we expected to be. We have Baja finishing and Caborca sputtering to life out of Mexico,” says one organic shipper. “We’ll start to see more production here after the first of the year. Generally we anticipate having decent supplies available as soon as the middle of January.”

Meanwhile demand is strong for both conventional and organic asparagus. “We need more asparagus than we can get. It’s the same story as the end of last year and beginning of this year,” says the organic shipper.

Cooler temperatures and holidays have helped with conventional demand. “There’s been a lot of holiday promotional activity and just good interest and activity for cooking vegetables. The weather changing has put it more plates and I also attribute it to retail promotions,” says the conventional shipper.

All of this leaves pricing strong on organic asparagus in the range of $30- low $40s, a range that will likely come down as organic productions ramps up.

For conventional asparagus, pricing rose quite rapidly over the past couple of weeks and is between $26-$30 on an 11 lb. FOB in the desert. “It’s a good money-making level for growers and it’s at a good level in which the retailers can still continue to promote and do some good things in the produce departments with the product,” the conventional shipper says.

He does note that historically the market has gotten a lot higher, between $30-$50, during this time frame due to factors such as weather. However, he doesn’t anticipate seeing that level of pricing this year given the amount of production coming.

GLOBAL OVERVIEW BERRIES

 

GLOBAL OVERVIEW BERRIES

Raspberries, blackberries and red currants continue to grow in popularity in most countries, with red currants lagging slightly behind the other two berries in some places. In South Africa, the growing interest in blueberries has increased the popularity of the segment as a whole, with raspberries and blackberries in particular seeing benefit from this. Heavy rains during the growing seasons in Mexico and Australia have had some effects on the volume and quality of berries, although the damage in Australia has been limited due to the protection of covered cultivation.

Netherlands: Balanced market for raspberries, blackberries extremely expensive
"With raspberries, the season in our Portuguese farms is already coming to an end. A few weeks ago, we started with direct deliveries from Morocco to the United Kingdom and have now also started elsewhere in Europe. Sales are running well. The supply is not extremely high during this period, but neither is the demand, so the market is in good balance. Prices are around 8.50 - 9 euros per kilo. The expectation is that the supply will increase again in the coming weeks, so hopefully the demand will too," says a Dutch trader. The sales of blackberries are currently the most difficult for him. "Normally, during these weeks, the bulk of the supply comes from Mexico. However, most of that fruit comes along with the commercial passenger flights and that number is not even half of what it used to be. This has resulted in extremely expensive blackberries, with prices between 12 and 16 dollars per kilo. In fact, the United States and Asia are also on the fence, so availability remains limited for now."

"The demand for red currants is not as strong as in other years, in my opinion. Prices are around EUR 6-6.50 per kilo. Germany and Italy are our biggest markets for red currants. Traditionally, demand will increase somewhat in January and February."

Italy: Purchases of berries increasing in Italy
According to statistics, the popularity of certain berries shows strong growth, with 7.5 million households purchasing them in the last year, up + 22% over last year and + 26% over 2 years ago. In particular, blackberries, raspberries and currants were bought by almost 4.6 million families in the last year ending in October 2021 and therefore, despite the strong growth, they still have significant development potential.

Blackberries are purchased by around 1.7 million households and are relatively more stable over time. Raspberries are the most widespread type with over 3.2 million household buyers in the year ending October 2021, with a + 24% compared to two years ago. Currants, on the other hand, are still a relatively rare type, with about 1.3 million families buying them, but this number is almost double compared to two years ago.

According to reports, raspberries, blackberries and currants are three items that are achieving excellent sales results in Italian supermarkets. This is confirmed by a buyer from one of the main chains. Sales increased in 2021 to 2020 by 10%. Even in November, despite a generalized decline in fruit and vegetable sales, these items held up well. Prices are also high on average, between 12 and 14 € / kg, at the moment, also because the lack of Italian and European offer. The market players are hoping that this trend will continue in the coming weeks, when, with the Christmas holidays, there will be a further increase in requests.

On the packaging front, transparent trays are highly sought after, which allow the product to be seen clearly. The weights for raspberries range from 125 to 250 grams, but lately the smaller 125 is preferred because raspberries spoil less and the price (for the single with packaging) is lower. For blackberries and currants, on the other hand, the weight of 125 is always the most present.

As for the origins, blackberries are mostly imported from Mexico. Raspberries come from Italy, Spain and Morocco, while the red currants are almost always Italian.

Spain: Pressure on Spanish berries from Moroccan competition
In 2020, Spain ranked second in the ranking of raspberry producers in the EU-27, with a total of 25.43%. 99% of Spanish production comes from Andalusia, mainly from the province of Huelva and it is mostly exported. Currently the cultivation of raspberries takes place almost all year round, thanks to the overlapping of different remontant (producing a crop more than once a season) and non-remontant varieties, but between March and May the production peaks.

According to a Spanish trader, sales were going well up until two weeks ago, when the competition from Morocco began to grow significantly. The increase of COVID-19 outbreaks in Europe and further restrictions is also having negative effects on raspberry sales, as the hotel, restaurant and catering customers suffer from further closures.

The raspberry acreage in Spain decreased by 11.9% in 2021 and the production of the 2020/21 campaign was estimated in 48,258 tons, 1.7% less than in the previous season. In the period between the 2015/16 and 2020/21 seasons, exports have grown by almost 58%. But the volume of imports has also increased, with supply coming mainly from Morocco (75%) and Portugal (23.6%) in the 2020/21 campaign. The main importer is Germany, which absorbed 30.4% of the Spanish exports last year, followed by the United Kingdom (28%), The Netherlands (13%) and France (11%).

South Africa: Blackberries and raspberries benefit from soft fruit trend
A rising tide lifts all boats: blackberries and raspberries have benefited from the explosion in blueberry interest.

Over the past month the blackberry harvest has picked up, and just over 17 tonnes have been exported during the 2021/22 season. 193 tonnes of blackberries were exported in 2020/21, which was itself part of a steep rise since 2014/15 when 12 tonnes of blackberries were exported.

In 2018/19, according to statistics, 51% of South Africa’s blackberries went to the Middle East and 47% to the UK.

Raspberry exports have grown over the past few years and there are trials underway of new raspberries varieties. There are fewer than ten raspberry producers in South Africa, many of them at the coast, some on the Highveld.

Thus far, just under 298 tonnes of raspberries have been exported; the 2020/21 season ended on over 1,500 tonnes.

In the 2019/20 season, the UK took 61% of South Africa’s raspberries and the Middle East 29%. The product is flown out.

North America: Rainy season in Mexico affects volume and quality of berries in North America
Volumes of raspberries are strong. One shipper says raspberries are coming from two regions currently: central Mexico, which began in late August-early September and more recently Baja California. “We will have decent volumes by the middle of December,” she says.

She does note that Central Mexico saw steady, persistent rains in the fall. “It definitely took its toll on all of the berries in Mexico unfortunately. It’s made for less volume and a later start in terms of volume as well. But product is available,” says the shipper.

Meanwhile, demand for berries has been excellent, particularly for a new variety the shipper is working with, the Malu raspberry. “It has a very good size and color and even though it has a good size, it is quite firm. It also has an excellent shelf life and it gets very sweet with a touch of acidity. There’s a lot of work in varietal development in raspberries.”

They note that growers in both regions have the Malu, though Baja California growers will have other varieties as well. “With the two regions coming together in the winter months, we’ll have extremely good quantities from the middle of January through the end of February. The Malu itself will also have peak quantities during that time period, in time for Valentine’s Day,” they say.

Overall demand also feels stronger than last year. “It has been a strong fall and raspberries always move well around the holidays, especially for New Year’s. And then January and February are fabulous months--people are eating healthy and berries are such a good fit because they have so many health benefits,” says the shipper.

As for pricing it has been firm and is anticipated to get firmer as Christmas and New Year’s Eve get closer.   

Supplies of blackberries from Mexico are steady but not particularly plentiful.

Another shipper says their blackberry supplies are largely the Tupi variety currently and coming from Michoacán. “We’re seeing a more stable season compared to last season. But supply is not as abundant and the quality of Tupi could have some shortcomings. We’re expecting it to be like that the whole season.” 

The Tupi is the dominant variety of blackberry that’s been in place for at least 15 years. “It was a great variety in terms of quality many years ago but because of the industry and how it’s treated it, it is now in bad shape,” he says.

Also adding to quality concerns on blackberries is that extended rainy season in Mexico. “Usually the rain finishes by the end of September the beginning of October and it went to the end of October. So it affected not only blackberries but many other berries and crops,” says the shipper.  

The start of the season also saw a slight shift. “Last season we had a heavy frost that affected around 800 hectares of berries in Michoacán,” he says, noting that the season started approximately four weeks early this year in early September. 

At the same time, the company is working with its newer variety, the Sultana which has begun harvesting already. “Production is limited right now but we expect within four to five weeks to harvest a lot more,” says the shipper. “In an ideal world, we would like to ship Sultana only but it takes time to develop the farms. There’s not enough fruit to fill the shelves right now so it will be a mix,” he says, noting that the variety promises a good shelf life and good eating experience for consumers.

As for demand, because of the quality on the Tupi berries currently, it is softer than last season. “Retailers are hesitant to promote because of the quality. It has affected demand,” he says.

And on pricing, a healthy market is expected given there is less fruit in comparison to previous seasons.

Red currants have limited production in the U.S. If purchased, they are often bought fresh by Europeans in the country, but are otherwise processed into jams and jellies.

Australia: Covered production saves Australian raspberries from worst effects of rain
A leading Australian fruit producer is expecting plenty of its quality raspberries to be on retail shelves this summer, as two of its growing locations recently came online in November. They are currently finishing off the winter-spring program in Wamuran, near Queensland's Sunshine Coast, which is winding down in its final month, as other production areas begin to ramp up. Stanthorpe (in Southern Queensland) and Tasmania started three weeks ago - so for a couple of weeks, there will be all three of the company's sites going nationwide, until mid-December. Although the Stanthorpe region has been pretty wet after heavy rain over the past two months, all of the raspberries are covered, so the rain itself hasn't impacted fruit quality. However, the humidity has been up, so it's been harder from a growing perspective to control fungal diseases.

As a category, production data is collected under "Rubus", which include raspberries, blackberries, and other berries (such as boysenberries and silvanberries). These berries have been on a year-on-year increase in terms of volumes produced since 2018. The most recent data for the year ending June 2020, there were 9,932 tonnes produced, according to statistics, of which 7,404 tonnes of that volume were raspberries, 2,483 tonnes were blackberries and 45 tonnes were other berries. Rubus berry production was valued at $ 216 million, which was a four per cent increase from the year before.

GLOBAL OVERVIEW AVOCADOS

 

GLOBAL OVERVIEW AVOCADOS

There seems to be no stopping the rise in popularity avocado has been enjoying globally, with consumption in Italy even predicted to double. Some countries, however, have noticed an oversupply affecting prices at times, such as in the Netherlands and Australia, with the latter even having dumped some avocados due to this. Despite this, Australia is set to double its avocado production by 2026, and Spain is expecting a 20% larger harvest this year compared to 2020.

The Netherlands: Avocado market very difficult
The avocado market is very difficult at the moment, according to a Dutch importer. He blames the situation on too much supply from Israel and Colombia, combined with traditional difficult December retail sales, as this is when space is freed up for other items. Add to that the fact that in large parts of Europe the hotel, restaurant and food service industry is closed, and many importers are faced with a full stock and difficult sales in combination with low prices.

Germany: Tropical and Moroccan avocados on the rise
The Hass avocado is still by far the most popular variety on the Western European market. The Spanish season will start soon, the Moroccan season has already started in German and Austrian food retail. "Moroccan avocados are now increasingly finding their way to European consumers, whereas until recently they were mainly shipped under the Spanish flag," says one importer. The same applies to tropical avocados, such as Semil, which are particularly popular in the premium segment.

There is still growth potential for avocados on the German market. Although consumption is on an upward trend, it has been a difficult year. The ongoing Corona problem leads to great uncertainty in the exotic trade. While sales have gradually stabilised since the end of 2020, sea freight is becoming steadily more expensive, they confirm. In addition, there is a trend towards more delayed container deliveries due to the problems in global shipping.

UK: Retail sales increase due to end of lockdown
This summer saw increased volumes of avocados from Peru, this was due to a combination of new plantations coming into production and all the biannual nature of the trees. 

“There was an increase of around 20% on last year,” according to a UK importer. “This means we were able to extend our Peruvian supply into November before we moved on to the Chilean supply.” 

Supply into the UK and Europe is currently coming from Morocco, Mexico and there is a strong supply from Colombia. Demand is down in Europe at the moment because a lot of European countries are under stricter Covid restrictions with curfews imposed meaning people are eating out less. 

In the UK retail sales are down on last year when there were still some lockdown restrictions and more people were buying from the retailers. 

Shipping has not been too bad, and importers are now getting used to the delays but it does remain a challenge. Supply from South Africa was much better than last year and this meant less issues with quality on arrival. 

“Chile is a bit more complicated, as some containers were left on the quayside in Chile and not all vessels stopped at the port. Shipping in general has been less reliable, although the supply isn’t short.”

There will be a slight uplift going towards Christmas, but demand for avocados remains pretty stable. 

Italy: Avocado consumption in Italy predicted to double
In Italy, avocado has an ample potential for growth: per capita consumption is about one third of that of Northern Europe or the United States. Regular consumers of exotic fruits and avocados mostly buy it in large-scale distribution (71%). The greengrocer (18%) follows at a great distance.

In a few years, consumption in Italy is predicted to double: currently it is around 440 grams per capita, against an average of 1.30 kg per person in other EU countries. Typically, the most purchased fruit is the packaged Hass variety (92%; green variety 7%) of which packaged ones make up 52%.

An important player in the sector, who has recently created a 1000-hectare farm in Colombia for the sole cultivation of avocados recently spoke on this subject. In the last 12 months, this distributor producer has marketed about 6000 tons of avocados in Italy, but the growth prospects are considerable. Five years ago, the per capita consumption of avocados in Italy was 250 grams. Today it has reached around 440, with strong growth prospects.

In Italy there was an import of 25,000 tons per year; in the last year alone, sales increased by 67.4%. More generally, the Hass variety of avocado will record a compound annual growth rate (CAGR) of 4.8% during the period 2020-2025, making it the most popular variety in the world.

Spain: Up to 20% increase in avocado production compared to last year
The Spanish Hass avocado season goes on in Malaga with consistent volumes in what is expected to be a larger harvest compared to last season. The demand, however, has yet to take off in a market where many origins converge. For this campaign, avocado volumes could grow by around 20% in Spain as the around 4,000 new hectares planted in the last three or four years in the provinces of Cádiz, Huelva and Valencia are coming into production. Thus, Spanish avocado production could be around 70,000 tons. This year the avocadoes have a very good quality and mostly medium sizes, influenced by dry conditions.

According to an exporter, the demand has been so far quite irregular since he started the season a couple of weeks ago. On the one hand, although there are European retailers that have already started with Spanish avocados, others prefer to wait until January, since there is still a lot of supply from different origins, such as Colombia, Mexico –which is extending its campaigns more and more–, Chile or Morocco, which  has increased competition this year. In addition, Portugal is also producing more on its own. The supply is growing and consumption seems to be distributed more among origins.

On the other hand, according to the exporter, the new wave of coronavirus cases has also altered consumption parameters in the last two weeks, something that is reflected in sales after tightening restrictions in various countries. As a result, prices are around 10-12% lower than last year, getting closer to the averages of 4 years ago. Although it is still a product with good profitability, the sector has to face the fact that production and handling costs have increased by a 38% and everything indicates that they will continue to rise. The exporters hope that in the next few days consumption will stabilize and demand for avocado will increase a little.

Morocco: Focus on Dutch market
The avocado season in Morocco started in November and a good season is expected. Morocco exports 32,000 tons of avocados and half of it is just for Spain alone. The Moroccan season has already started offering the Fuerte variety since November. By mid-December, the Hass will be available and exporters will then start supplying their customers in the UK. The plantations are young and soon they will be in full production. Europe is very important for Moroccan exporters and the emphasis will be on the Dutch market this year, as they import 420,000 tons of avocados.

South Africa: Domestic prices more competitive than exports
At the moment South Africa’s late avocados from KwaZulu-Natal and the Western Cape are sold locally where prices are more competitive than for exports. South Africa’s avocado exports for the past season came to 15,172,246 of 4kg cartons.

The last export avocados were recently flown out but air freight prices have become “frightening” (says a subtropical fruit marketer) after this latest round of Covid-related border closures aimed at Southern Africa.

On the domestic market the price per kilogram is R23 (1.44 euro) and is supplemented by avocados imported from Spain and Israel.

In the early production areas in the north of the country the crop is looking good, gaining in size and showing good quality. In Tzaneen, though, the effect of hail will be felt in the upcoming season’s avocado crop, but in other areas like Levubu and the Lowveld growers are “cautiously optimistic”. An avocado grower from the earliest area, Levubu, far northern Limpopo, whose avocados start around late January, says they’re very excited about the upcoming crop, the weather has been perfect thus far and they reckon their crop might be 15% up on last year.

November is traditionally the month during which there is significant fruit drop in avocado orchards but growing regions have so far not experienced the heatwaves and concomitant fruit drop of other years. It has been a cooler than usual first half to summer. Producers have had to keep on their toes with their spraying programmes amid all the rain.

The first crop estimate will probably follow in early January.

China: Chaotic prices on Chinese avocado market
At present, the avocados in the China market mainly come from Chile, New Zealand and Mexico. There is a small amount of local Yunnan avocados on the market. The quality of the fruits on the market varies a lot, and the prices are relatively chaotic. The price of the fruit sometimes just covers import cost.

The early Chilean fruit of the new season arrived in wholesale market two weeks ago. The fruit that arrived came from a farm in northern Chile. Due to the early harvest, the dry matter content of this batch of fruit is not very high, the taste is not so waxy, and the fruit isn’t as oily. The strong cherry market has an impact on avocado sales. Especially near the holiday season, many Chinese consumers buy cherries as gifts when visiting relatives and friends. Many traders in the market have cherries as their current focus. This undoubtedly caused some impact on the sales of avocados.  

In recent years, the planting area of Yunnan avocados has become larger and larger, but because it has just started, the overall yield per mu is not very high, and the quality has not yet been able to compete with imported avocados. First because of the difference in variety. Most of the varieties grown in Yunnan are not the popular Hass varieties on the market, but varieties such as Pinkerton. Secondly, because Yunnan has just started planting, the technological level of planting is not very high, and there are still some shortcomings in terms of quality. The Chinese market therefore relies mainly on imports from New Zealand and Mexico.

Mexico was the first country to be allowed to export avocados to China. It has a wide range of production areas and large production, and it produces avocados throughout the year. Domestic consumers have a high degree of recognition of Mexican avocados. However, compared with other producing areas, the climate in Mexico producing areas is relatively humid, and the fruit peels produced are not very good-looking, and the fruit pulp has more moisture. After long-distance transportation, the skin may swell, which is not very beautiful. The Mexican season also has unstable shipping schedules this season. When the market is out of stock, Mexican fruit sells well and prices are high. The current price of avocado in Mexico is 100 yuan/carton (5.5 kg size).

The New Zealand season overlaps with Peru and the initial production season in Chile, and it is now nearing the end. In the past, many New Zealand avocados were distributed to the Japanese and South Korean markets. Due to the production volume and quality performance last year, many local orchards began to pay attention to the Chinese market, hoping to increase exports to China. Compared with Chile's production areas, New Zealand avocados started late in China, and the brand promotion is slightly less strong than other producing areas. The overall import volume is very small.

North America: US now open to second Mexican state for avocado export
One shipper of avocados out of Mexico says this week’s decision to allow avocados from a second Mexican state to be exported to the United States is a “game changer.” For almost 25 years, Mexico has been allowed to export avocados only from one western Mexico state: Michoacán. The second state is Jalisco.

“With Jalisco now open to the U.S., that could take the this production area out of two other markets which are Europe and Japan,” he says. He notes that worldwide avocado movement is a sort of delicate dance where different growing countries rely on a network of markets and this decision could affect other markets. “There’s going to be an adjustment commercially,” he says. He adds that Japan for example is fairly dependant on Mexico as a whole for avocados, but more so the state of Jalisco and that fruit from Mexico to Japan takes 15 days on the water. “That’s good timing for avocados to travel. But this decision for Mexico is a big step. As an industry we’ve always worked towards this decision.”

This decision comes at a time when Mexican avocado supplies overall are slimmer. “There’s definitely a shortage of avocados this year,” he says. Avocados are an alternate bearing fruit in which abundant years are offset by a less abundant one. “We’re at 70 percent compared to the crop last year. It’s about a 30 percent difference between last year and this year’s drop so I think we’ll have 10-15 percent left from our crop.”

While Mexico is by far the predominant shipping region, some fruit is coming from Colombia as well. Domestically, California, which is still determining its upcoming avocado season volume for 2021-2022, notes at this point it’s planning on a normal sized crop. This follows a season where early spring projections came out fairly close to the final avocado numbers for the California season at 264 million lbs.--this includes about 7 million lbs. of carry out from the 2020 season.

Meanwhile demand is fairly stable for avocados and he notes once January arrives, demand could strengthen with resolutions for healthier eating underway as well as the run up towards the Superbowl. He also adds that generally, consumption of avocados continues to grow annually.

All of this leaves pricing fairly strong currently. “Pricing is about 10-15 percent stronger than last year,” says the shipper. 

Australia: Avocado production expected to double by 2026
According to reports, Australian avocados are in abundant supply this year and great value. The fruit has been retailing for around $1-2 for several months, depending on the store and the location. “This year’s Hass crop is of excellent quality, and at this time of the year Australian Hass avocados are coming from the Western Australian and Tristate growing regions," says the CEO of a major avocado company. However, the large supply of avocados this season has not been all good news with reports that some growers have had to dump fruit due to the oversupply and prices dropping so low.

It comes as a recent online research survey conducted recently found that the majority of respondents would strongly prefer to buy avocados grown in Australia, than imported fruit. It found that 72 per cent of consumers rated purchasing Australian grown avocados as either “Very important” (34.11%) or “Extremely important” (37.81%) to their household - however, 55 per cent of consumers find it difficult to identify Australian avocados in store. The updated long-term forecast suggests Australia’s avocado production is expected to continue to increase to about 170,000 tonnes by 2026, more than double the 2020-21 crop, so domestic growers can easily supply Australian avocados to retail stores throughout the year.

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