W24: Peach & Nectarine Update

In W24 in the peach and nectarine landscape, Tridge’s data analysis indicates that the wholesale price of fresh peaches in Spain plummeted 22.10% WoW, to USD 2.15/kg. The negative price trend of fresh peaches in Spain started in W4 of Apr-23, from 2023’s record high price of USD 5.51/kg, and is expected to fall further. The peach harvest in Spain has entered its peak period and the current oversupply is pushing the price down. Recent high temperatures have expedited maturing of the peach fruit, causing faster developments of varieties coming all at once on the market. Since demand cannot cope with the supply of fresh peaches in Spain as it stands, the outlook for forthcoming price movements remains bearish.

In Italy, the market for Spanish peaches and nectarines is experiencing a decline in prices due to their non-optimal quality. However, the overall price level remains high primarily because of the delayed production of Italian peaches and nectarines. This delay is attributed to the sub-optimal temperatures and abnormal weather conditions for the season. Currently, Italian peaches and nectarines have a limited presence in the market, with only a few batches of the Platicarpa variety being available. The situation is further exacerbated by the flooding in Emilia-Romagna, resulting in lower quantities of produce entering the markets. In the German market, Spanish peaches and nectarines were the predominant supply, with an increase in their availability. Following the Spanish supply, Italian peaches and nectarines held significance in terms of market presence. Turkish and Greek shipments were relatively limited and played a supplementary role. French peaches and nectarines were primarily found in Cologne, indicating a more localized distribution. Overall, there was not a particularly high level of interest in the market for peaches and nectarines.

The peach crop in various regions of the US, including the Texas Hill Country, has been significantly affected by adverse weather conditions in recent years. 2022's drought, coupled with a mild winter and a late cold snap in 2023, has had detrimental effects on peach production. However, despite the widespread peach shortage across the US, North Texas peach farms, such as Ham Orchards, have managed to maintain a steady supply. Although Ham Orchards has experienced a 60% decrease in their typical peach yield, their priority remains on providing a sufficient supply of peaches. The supply of peaches and nectarines in Canada is currently limited, with lower-than-usual shipments from states like Georgia and the Carolinas due to a freeze in March that affected stone fruit production in the East. As a result, Courchesne Larose, a Canadian importer, is relying on fruit from California to meet the demand. However, the sizing of the fruit has started with smaller sizes, and it is not increasing as quickly as desired by the market. To address the supply shortage, Spain has become a significant player in the Canadian market, offering competitive pricing and lower freight costs compared to California. The availability of Spanish peaches and nectarines has become more accepted by retailers in recent years. Despite the higher prices compared to 2022, demand remains strong due to the limited supply. The domestic peach crop in Ontario is also starting, but it is not sufficient to meet the market's needs, so a mix of Ontario and California fruit will be available.

Lastly, in W2 of June-2023, Tridge’s data analysis indicates that the wholesale price of fresh peaches in Turkey fell to USD 0.51/kg, down 23.88% WoW, and 47.95% MoM. Harvest of early varieties of fresh peaches in Turkey started in W1 of June 2023, and the first batches coming to market are of good quality. There was some hail damage in the southern regions of Turkey, which affected supplies meant for export. It is expected that the wholesale price of fresh peaches will continue to drop further since the entire harvest stage is expected in the following weeks.