W22: Peach & Nectarine Update

In W22 in the peach and nectarine landscape, EU peach and nectarine production in the 2023/24 season is expected to reach 2.688 million mt, up 14% compared to 2022/23 at 2.348 million mt, but down 1% compared to the 2017-2021 average. It is worth noting that this data does not take into account the floods that have recently hit the Emilia-Romagna region in Italy, which have severely damaged stone fruit. In Italy, imported Spanish peaches and nectarines are not receiving good demand due to the quality of the product, which does not reach optimal levels. This is attributed to the uncertain climate and lack of enough sun exposure. Peach and nectarine quantities are increasing, with the entry of larger caliber products as well. Italian traders note the first shipments of the Percoche and Platicarpa varieties, though, do not yet garner much interest from consumers. Italian traders also await the increase in quality and the arrival of Italian peaches and nectarines, which are undergoing a delay in maturation due to the climate.

Tridge analysis indicates that Turkish fresh peach and nectarine production is increasing due to favorable meteorological conditions, acceptable farm gate prices, and government assistance. Turkey is responsible for 3% of global peach production and is predicted to produce 800 thousand mt of peaches and nectarines in 2023. Turkey’s peach and nectarine exports have increased steadily over the last five years, with Russia being the top destination. Traders are looking east to increase their market share in Far Eastern countries. Over the previous decade, production modernization and government subsidies have enabled a 30% rise in yield. So far in 2023, the average wholesale price for fresh peaches was USD 1.19/kg, higher than 2022. Tridge anticipates that peach and nectarine exports will continue to expand. The Turkish Rich May peach, which stands out with its taste, is expected to yield 25 thousand mt in 2023. This peach variety is produced in an area of approximately 2 thousand ha in the Davutlar District of Kuşadası in Turkey. Rich May peach harvesting has already started and is primarily exported to the EU and Russia. In the domestic markets of İstanbul, Ankara, and İzmir, Rich May peach customers are expected to purchase them at USD 0.64-0.86/kg in 2023. However, Turkish producers are concerned about the skyrocketing production cost due to the economic crisis, high fertilizer and pesticide prices, and high labor costs.

As of the end of May 2023, Uzbek peach and nectarine exports totaled over 200mt, following the ripening of Big Bang, Plane Gold, and Plane peach varieties and nectarine plantations of SPN Humo located in the Termez district of the Surkhandarya region in Uzbekistan. In the 2022 season, Uzbekistan's peach and nectarine exports totaled 76.7 thousand mt, valued at USD 68.1 million, ranking second in terms of export revenue in the fresh fruit sector. Also, in 2022, Uzbek peach and nectarine shipments were mainly destined for the EAEU (slightly more than 99%), Turkmenistan (471mt), Tajikistan (42mt), Mongolia (14mt), and the UAE (4MT). Lastly, in the Dutch markets, Spanish peach and nectarine formed the basis of the range, flanked only by small Italian volumes. Mainly yellow-fleshed fruits were available, with white-fleshed ones being an exception. The peach and nectarine fruits were sometimes too small, and in some places, the taste left much to be desired, making them difficult to accommodate.