Damaged Persimmon Crop in Spain Due to Adverse Weather

Published 2022년 7월 5일

The frost that hit Spain in April caused severe damage to fruit and vegetables. According to the Spanish union, persimmon production has been significantly damaged, and the forecast decreased by 35% YoY to 280,000 mt in 2022. Reduced supply expectations were reflected in the increased persimmon prices at USD 0.35-0.37/kg in W1 of June 22. Although price increased 14% YoY, associations advise farmers not to hurry with contracting future crop production. Added with insurance problems, where some farmers were left without payment, pressure is high on producers' profits.

According to the farmer’s union, the production of Spanish persimmons is expected to decrease by up to 50% in the most endangered areas due to unfavorable weather in April 2022. The first estimates are that the amount will vary around 280,000 mt, which is a decrease of 35% compared to 2021. According to Tridge’s Engagement Manager in Spain, fruit businesses reacted quickly and upped prices, which in the field were USD 0.35-0.37/kg in W1 of June 22, 14% higher YoY.

Fresh persimmon production is another victim of Spain's adverse weather conditions in April. Severe frost caused flowers to fall, especially in Valencia Community. Over 5,000 ha of persimmon were damaged, with an estimated EUR 12M loss. In some growing regions, such as Vall d'Albaida, there will probably be up to 50% fewer persimmon picked compared to a regular season. For the second year in a row, the production of persimmons is below average. It is not only the weather that has reduced production this year. The dissatisfying prices of persimmon have caused farmers to leave their orchards and pause regular agro-technical measures, reducing yields. In Spain, the purchase of persimmon in the field starts in June. In the next few weeks, officials will examine the shortage of persimmons. Traders must act quickly to arrange the purchase of the fruit, given the circumstances. On the other hand, various associations advise growers not to rush with selling their future crops. Based on Tridge data, the wholesale price of fresh persimmon in W3 of June was USD 1.69/kg.

Top Export Flows of Fresh Persimmon

Source: Tridge

Spanish persimmon represents 40.1% of world exports and was the largest exporter in 2021. Most quantities go to EU markets, while a smaller volume goes to countries like Morocco and Saudi Arabia. The total amount of fresh persimmon exported for 2021 was 189,831 mt, which decreased 9.95% YoY. Given the poor production in CY2021, it is not surprising that exports fell.

The union has already appealed to the Ministry of Agriculture for help to farmers who have not been paid for insurance damage. LA UNIÓ also proposed extending the insurance coverage period to mid-February so that all producers are covered from the start. The policy should cover more risks at the plot level. Farmers who have suffered frost damage this year and losses from last year are in an unenviable situation and are under pressure to make contracts at current prices. The price is expected to rise, especially when the official figures for persimmon production in 2022 come out.