Iranian Kiwifruit, Expectations on 2019 Production and Export

A slightly lower production volume of kiwifruit is expected in Iran in the 2019 season. The Iranian kiwifruit season starts in early October and the picking season finishes in late December when the stocks go into cold storage. This enables kiwifruit availability until the end of March. In 2019, there were floods, which had an impact on the water condition in northern Iran and as a result, the yields slightly decreased.

“This year, production will be lower compared to the previous year, due to unfavorable weather conditions,” said KTL Co. “I think it will decrease by about 10 or 20%.” This season, the demand for Iranian kiwifruit is led by Russia and the Middle East. Iranian kiwifruit has a good advantage over its main competitors, Turkey and Greece, as it can be quickly shipped to the big wholesale market in Moscow due to the short distance from the northern part of Iran to Moscow. Russia, the United Arab Emirates, India, and European countries including Poland and Germany are the top destination for Iranian kiwifruit.

The main competitive edge of Iranian kiwifruit in these markets is their price competitiveness. Iranian kiwifruit directly competes with Greece and Turkey, which cultivate the same cultivar as Iran, called “Hayward”, in an overlapping season. This season, the CIF price for the biggest size (100g) of Iranian kiwifruit in Germany is about 0.80 EUR per kg, whereas the price for Turkish kiwis of the same grade is 1.20 EUR per kg. Italy and Greece have even higher price positions, so KTL Co. is seeing the demand from the European market increase.

“The price during the 2018 season was 0.60 EUR per kg and we are seeing a rapid increase in our market price, of more than 25%. Nevertheless, we still hold a competitive position in the export market,” said KTL Co. Lower production partly caused the increase in export price Demand from Germany and Poland is steady this year.