Stone Fruits Market Digest w20

Weekly Stone Fruits Market Updates

Main Price Movements in the EU

Stone fruit season is underway, and we're drawing upon the wealth of information available from German wholesale markets and the French Rungis market. Our team of experts has meticulously curated insights for this week's Fresh Digest, which are seamlessly integrated with data sourced from the German Federal Ministry of Food and Agriculture and the French Market News Network.

In the Central European Wholesale market, there's been a surge in Spanish cherry offers, particularly in commercial sizes of 30 mm and 32 mm, priced between €16 and €19 per kg. However, smaller-sized cherries (22/24 mm) are experiencing lower demand despite being priced at €10 to €12 per kg. Meanwhile, in Hamburg, initial Spanish cherry varieties like Nimba and California, though still requiring enhancement in terms of redness, aroma, and size, are being offered in sizes of 26-28 mm+ at €10 to €12 per kg, with early offerings from Turkey being priced within the same range. Spanish white-fleshed peaches in size B are sold at €3.75 per kg, while Turkish nectarines are available at €4.75. Last but not least, the first apricots from Turkey and France have hit the market with positive demand overall and Italy has also entered the scene with yellow-fleshed peaches and nectarines.

Amidst the competitive landscape of various stone fruit origins, prices are experiencing an overall downward trend, although French cherries continue to command higher prices compared to their Spanish counterparts. Greek cherries are poised to enter European markets soon, with our experts highlighting that semi-plain and mountainous fruits boast the best quality, with harvesting commencing in mid-May. However, significant price imbalances have been noted as intermediaries enter transactions. Producers lament that cherries are leaving the field fetching low prices, around 5 to 6 euros per kg, only to appear in markets priced significantly higher, ranging from 12 to 16 euros per kg, due to discrepancies in invoicing practices. At Wikifarmer, our mission is to foster a safe and transparent environment where producers can sell their goods fairly and democratically.

Besides European-origin stone fruits, Turkey, Egypt, and China occupy a significant part of the peach market. The current export season for fresh peaches is primarily influenced by Egypt's actions in the market. Following Egypt's currency devaluation earlier this year, prices for their products sharply declined on foreign markets, creating a trade imbalance for early peaches. Turkish exporters, facing pressure from cheaper Egyptian offers, have been compelled to lower their prices while Egyptian exporters can further reduce prices due to comfortable profit margins, and competition intensifies. Meanwhile, China maintains dominance in Central Asian markets, where peach prices are considerably higher. Egyptian exporters are exploring new market opportunities in Uzbekistan and Kazakhstan, while peach prices in Tajikistan surpass those in Uzbekistan, where only Chinese products are available. Despite potential market shifts, the window of opportunity in Central Asian markets may be limited due to early local harvests.

How does the climate crisis affect stone fruit production and sales?

Concerning French apricots, the impact of frost on this season's stone fruit volumes has been minimal, providing relief to apricot growers despite isolated cases of damage reported in the Rhône Valley. Quality assessment remains premature, but the reduced volumes suggest the potential for larger sizes and improved fruit quality if favorable weather persists. Contrastingly, 2023 faced challenges with rain and hail affecting early-season quality, coupled with market saturation due to a production peak and subdued consumption. Looking ahead to 2024, a down year is anticipated due to alternating weather patterns and insufficient cold during flowering, particularly affecting regions like Gard, Crau, and the Rhône Valley. French production for 2024 is estimated at 87,800 tons, marking significant decreases from both 2023 and the 2018-2022 average, with production expected to start earlier in May and significant volumes anticipated from June onwards.

At the Rimini agri-food center, the array of summer fruits, including cherries, nectarines, and apricots, is plentiful, yet sales exhibit erratic patterns influenced by fluctuating weather conditions. Despite positive cherry sales driven by limited volumes, full consumption of peaches and nectarines has not yet materialized. However, the market is witnessing a growing interest in apricots, especially early varieties, thanks to recent varietal innovations. Italian nectarines are competitively priced compared to their Spanish counterparts, while Italian cherries and apricots from southern regions offer attractive rates. Overall, the market dynamics reflect a delicate balance between consumer preferences, weather conditions, and regional variations in fruit quality and availability.

The challenge of entering the French market

As mentioned in the previous digest, the European Union is becoming greener by implementing registration that promotes sustainable solutions in the packaging sector, aiming for a zero-waste food supply chain. France, in the spirit of an eco-friendly food supply chain seems to challenge exporters of stone fruits from Spain. In particular, apricot harvest in the Spanish region of Aragon, particularly in Bajo Cinca, has come with expectations of high quality and good volumes due to favorable weather conditions throughout the campaign. However, uncertainties loom over the French market as a result of the AGEC law, which mandates the total elimination of single-use plastic packaging in France by 2040. This poses challenges for exporters who are required to comply with packaging specifications that include the use of biodegradable flow packs and cardboard baskets. While preparations are underway, delays in obtaining necessary materials may impact exports to France, prompting exploration of alternative markets if compliance becomes unfeasible.

Despite these challenges, optimism remains regarding the overall production outlook in the region, contrasting with other areas like Aragon and Catalonia, which have faced issues such as cold weather affecting harvests. While some crops, like cherries, have experienced losses due to adverse weather conditions, prospects for remaining varieties and stone fruits remain promising. However, the effectiveness of the AGEC law in promoting sustainability and reducing plastic waste in the French market comes with logistical obstacles for exporters, highlighting the complexities of navigating evolving environmental regulations in the global food trade.