W33: Peach & Nectarine Update

In W33 in the peach and nectarine landscape, Europech expects peach and nectarine production in Spain, Italy, Greece, and France to surge by 14% year-on-year (YoY) to 2.68 million metric tons (mmt) in 2023. Nectarines are estimated to rise by 16% YoY to 1.32 mmt, peaches by 3% YoY to 1.03 mmt, and flat peaches by 58% YoY to 335.9 thousand metric tons (mt). Spain is predicted to yield 621.1 thousand mt of nectarines (+63% YoY), 299.4 thousand mt of peaches (+29% YoY), and 292.1 thousand mt of industrial peaches (+41% YoY). France's peach crop is expected to reach 231.1 thousand mt (+1% YoY) in 2023. Italy's fresh consumption is expected to decrease by 43% YoY to 869.2 thousand mt, with Greece experiencing a similar downward trend. July-23 peach prices averaged USD 1.37/kilogram (kg) (-14% YoY) in Italy and USD 1.23/kg (-29% YoY) in Spain. Similarly, nectarine prices averaged USD 1.37/kg (-2% YoY) in Italy, and USD 1.17/kg in Spain (-30% YoY).

Agreste expects French peach, nectarine, and pavie production to reach around 231 thousand mt in 2023, aligning with the 2022 level but 3% higher than the five-year average. The 2023 harvest timeline normalized compared to the 2022 harvest, with a later start. In the Occitania region, accounting for 45% of French production in 2022, production is set to increase by 6% YoY. The Provence-Alpes-Côte-D'azur region is also expecting a 12% YoY rise in production. Adverse weather conditions in Jun-23 affected the harvest in the Rhône Valley (-19% YoY). France witnessed an active market in Jul-23 due to favorable summer weather. This situation stimulated peach consumption, with promotional efforts in supermarkets sustaining demand. The market tightened with abundant supply following the seasonal peak towards the end of Jul-23. At the Saint Charles market in Perpignan, Jul-23 arrivals from Spain surpassed the 2022 levels, but remained 13% lower than the five-year average. While prices dropped by 6% YoY, they stayed above the five-year average (+9% YoY).

Lastly, the 2023 peach and nectarine season in Georgia's primary production area of Kakheti is coming to a conclusion, with active sales continuing into Aug-23. The Export Support Group's efforts are expected to persist in Kakheti for a few more weeks, followed by the start of the season in the Shida Kartli region in two weeks. Farmers in Kakheti expressed varied sentiments about the 2023 season, with initial dissatisfaction due to lower nectarine prices than in 2022. However, demand exceeded pre-season estimates for some, and 2023 price dynamics differed. Nectarine prices remained stable at USD 0.58/kg, with export-quality nectarines traded from USD 0.69/kg to USD 0.80/kg. Peach prices remained relatively unchanged, averaging USD 0.46/kg. Notably, peach prices were briefly higher than nectarine prices. Export data indicates that Georgian peach and nectarine exports reached 15.44 thousand mt from May-23 to Jul-23, a 7% decrease from the same period in 2022. The month of August traditionally represents 30% of the total exports.