Spanish Peach and Nectarine Traders Are Dealing With Stagnating Market in August

Published 2023년 8월 11일

Due to greater availability, Spain's donut peach, peach, and nectarine market has slowed down. The Spanish Ministry of Agriculture anticipates a stone fruit harvest of 1.22 million metric tons (mt) in 2023, up 29% year-on-year (YoY). Catalonia and Aragón have seen a 40% increase in output, but Murcia's season has ended earlier than usual. According to European Commission stone fruit statistics, in W2 of Jul-23, Spain's average wholesale peach prices were Euro 1.02/kg, the lowest among significant peach-producing countries. Spain leads Europe in peach production, with approximately 70 thousand hectares (ha) in 2022 and an average of 1.3 million metric tons (mmt) annually. Abundant supply has affected peach sales in August, while Spanish traders expect the situation to change in the upcoming weeks.

Due to increased availability, Spain's donut, peach, and nectarine markets have stalled. The Spanish Ministry of Agriculture projects a stone fruit harvest of 1,220,911 mt in 2023, a 29% YoY uptick. Catalonia and Aragón have seen a tremendous increase in output (+40%), while Murcia is ending its season later than usual. Increased supply of donut peach sales has reflected in prices falling in Aragon and Catalonia. Among the leading peach-producing countries in the European Union (EU), in W2 of Jul-23, Spain had the lowest average wholesale peach prices at Euro 1.02/kg, significantly lower than France with Euro 2.13/kg and still below Italy's levels of Euro 1.30 per kilogram (kg).

Top 10 Tradeflows for Spanish Peaches in 2022

Source: Tridge

According to Tridge, the first weeks of the stone fruit campaign, which began in May in Spain, were challenging. Rains and hail have affected stone fruit-producing areas in the Valencian Community and Murcia, causing product loss and potential shortages during the first weeks of harvest, resulting in shortages and lower availability of peaches and nectarines.

In terms of peach production in Europe, Spain leads in both areas (almost 70 thousand hectares or ha in 2022) and quantity (1.3 million metric tons or mmt per year on average). It is followed by Italy, which harvests approximately 1 mmt of fruit annually. In both nations, the cultivated land has decreased by nearly 15% in the last five years: Spain's acreage decreased by more than 17,000 ha, while Italy's shrunk by around 13,000 ha, primarily in the northern region. Meanwhile, both Greek and Turkish production increased. Türkiye surpassed the 1 mmt harvest milestone for the first time last year, reaching Italy regarding cultivated acreage.

One of the main reasons for the production decline of fresh peaches in Spain may be the increased production costs, which have increased by 27% per ha and kg since 2016, according to the study of the Department of Climate Action in conjunction with the Center for Research in Economics and Agri-Food Development (CREDA). Based on preliminary data, the maximum cost for peach and nectarine will reach Euro 0.431/kg in 2023, not considering the cost of family labor.

Meanwhile, sales have stalled for Spanish peach traders in August, mainly due to abundant supply. Increased quantities of peaches have made it difficult for traders to keep up, especially compared to the previous year when frost hit Spanish orchards hard and made prices skyrocket. Expectations are that the situation will change in favor of traders in the upcoming weeks, and prices are expected to increase.