Kiwis Market Digest w46

Weekly updates on the Kiwis market

Main Price Movements in the EU

In the European wholesale market, the Kiwi sector is undergoing notable shifts as the season progresses. As part of our ongoing market updates, Wikifarmer’s experts have been closely monitoring these developments to offer valuable insights for this week’s analysis.

In France, price data from the French Market News Network indicates a gradual decrease in the prices of golden and red kiwis, signaling a seasonal adjustment as European-grown products become more widely available. However, stocks of non-European kiwis are running low, leading to higher prices as suppliers adjust to the reduced supply from countries like New Zealand and Chile.

Meanwhile, in Germany, Italian golden kiwis have made their debut, offering competitive pricing at €11 for a 3-kg package and €30 for a 10-kg package. This introduction adds diversity to the market, complementing the ongoing presence of New Zealand kiwis in Cologne, where Italian kiwis were also introduced towards the end of the week. This shift towards European-grown varieties reflects a growing demand for locally sourced produce and a diversification of kiwi supply to meet evolving consumer preferences.

However, the ongoing crisis in Lazio’s kiwi industry is threatening the stability of regional supplies. The economic impact of reduced production, caused by the "kiwi die-off" affecting large portions of Italy's kiwi orchards, is already being felt. Reduced output and supply chain disruptions could lead to price increases, further challenging Italy’s competitiveness in the global kiwi market. Without intervention, this decline could have broader implications for Italy’s agricultural sector and regional economy, threatening employment and diminishing the country’s role as a key player in the European kiwi market.

Greek kiwi market faces major setback

The 2024 kiwi harvest in Greece is facing significant challenges, with production down by 35% to 50% due to severe summer drought and damage from a storm in May. While prices have increased, ranging from €0.90 to €1.15 per kilogram, this price rise does not offset the substantial reduction in yield. Despite the decrease in production, Greek kiwis remain in high demand internationally, particularly in markets like Brazil, India, and Saudi Arabia.

The kiwi cultivation process is costly, with establishment costs reaching €4,000 per hectare and daily watering requirements due to the summer drought. Labor-intensive tasks, such as pruning, have also contributed to increased production costs, especially amid rising energy and labor expenses. Although the crop can be profitable with a good yield, the current reduced production—around 1,500 to 2,500 kg per hectare, down from a typical 3,200 to 3,500 kg—poses a financial strain on growers. Furthermore, compensation for the storm damage in May has yet to be determined, as assessments are still pending.

Plastic ban reversal sparks costs and confusion in the French fresh industry

The French Council of State recently annulled the government’s decree banning plastic packaging for fruit and vegetables under 1.5 kg, citing procedural oversights. Originally part of the 2020 AGEC law, which aims to reduce waste, the decree was passed without the necessary notification to the European Commission. Although the Commission requested a delay until December 2023 due to upcoming EU packaging regulations, the French government proceeded with the June 2023 decree. This decision follows a complex legal process, with appeals from unions representing the plastic packaging industry, highlighting procedural lapses and regulatory tensions between national and EU mandates.

We have previously addressed the challenges this regulation posed for the industry, with many distributors and suppliers voicing concerns over the high cost of implementing the new law. The recent reversals have added further strain, especially for those who invested heavily in alternative packaging without full satisfaction in cost or efficiency. French peach and apricot producers alone spent between €10 and €12 million on cardboard packaging, while others saw expenses amounting to as much as 30% of their sales. Industry groups are now exploring compensation avenues, underscoring the financial burden and operational disruption from these regulatory shifts.