German Asparagus Season in 2022 Face Labor Shortage and Low Demand

Published 2022년 5월 13일

Labor shortages have affected previous asparagus production seasons in Germany. It was especially pronounced due to COVID-19 restrictions in 2020, which harmed the overall production. For CY 2022, the harvest of fresh asparagus was impacted by the labor shortage and low demand in the Easter holiday season. The price on W4 of April plummeted 53.52% WoW at USD 3.76/kg. The price fall was a combination of weaker than usual demand for fresh asparagus during the Easter Holidays, high supply due to an increase in production, and the discount offered by major retailers. Demand and prices are expected to recover and remain high due to the high-quality asparagus present in the market.

The lack of workers for the asparagus harvest is a problem for this year's crop in Germany. In MY 2020, because of COVID-19, the labor shortage was significant during the lockdown. Compared to CY 2019, where production of fresh asparagus was 130.56k mt, production in 2020 dropped 9.92% YoY to 117.6K mt because of the labor shortage. Furthermore, producers face a continued shortage of labor this year because of the Russia-Ukraine conflict. With enough rain and high temperatures in Germany, weather conditions have positively affected asparagus production for CY 2022, and it is expected that production this season will exceed 133K mt. Compared to last year, production increased by 11.57% YoY.

Asparagus is a high-value and labor-intensive perennial vegetable. For the most optimal asparagus cultivation, the soil should be loose, sandy, well-structured, and well-drained. It is best to grow asparagus after different cereals. At the same time, crop rotation with potatoes, beets, carrots, alfalfa, and beans is not recommended because these crops can be affected by root rot disease, which can be transmitted to asparagus and remain active for as long as 15-20 years. Significant labor is necessary for asparagus harvesting because mechanical harvesting damages trees and results in heavy labor expenses that make up the most critical part of the costs in asparagus production. In Germany, workers can earn a minimum of 9.82 euros per hour (which will increase to 10.45 euros from June). Workers are deducted from the hourly rate for accommodation, transport, and food in many households.

Source: TradeMap

Germany is not only a producer but also a considerable importer of fresh asparagus. Germany is the second-largest asparagus importer and imported 6.2% of the total exports in 2020. In 2021, Germany imported USD 150.7M of fresh asparagus compared to USD 94.1M in 2020, a 37.55% YoY increase. Lower yields and strong consumption in the domestic market were the primary reasons for the significant import rise. The major countries exporting to Germany were Spain, Greece, Italy, Peru, and the Netherlands, which accounted for around 84% of all German asparagus imports.

The wholesale price in Germany highly depends on demand. The decline in demand is prospected to decrease among the younger generation and increase in the older part of the German population. According to Tridge Price Data, asparagus prices plummeted from USD 8.09/kg in W3 April to USD 3.76/kg in W4 April, a decrease of 53.52% WoW. Price is currently at USD 4.21/kg in W1 May. The price fall was a combination of weaker than usual demand for fresh asparagus during the Easter Holidays, high supply due to an increase in production, and the discount offered by major retailers. With warm weather, it is expected that consumption will grow, and with quality supply in the domestic market, the price will increase.