Kiwi Prices Expected to Remain High Throughout the Season As European Growers Enter Harvest

Fresh Kiwifruit

Fruits

Market & Price Trends

Emerging Market Opportunities

Published Oct 16, 2023

The European kiwi market faces high pricing due to early season closure in the Southern Hemisphere and poor yields, resulting in premature harvesting in the Northern Hemisphere. As a result, there is a global kiwi market gap, creating perfect conditions for price hikes. The scenario has also raised demand from Asia, with wholesale prices in Türkiye climbing since Jul-23, reaching USD 2.9/kg in W1 of Sep-23.

As the European kiwi harvest season commences, the market is bracing for high kiwi prices, a trend that is expected to continue throughout the season. Several factors contribute to this outlook, including lower yields and the end of the Chilean kiwi season.

Seasonality of Fresh Kiwifruit in Spain and Chile

Source: Tridge

The Southern Hemisphere's kiwi season ended sooner than usual due to lesser crops, causing premature harvesting in the Northern Hemisphere. This has resulted in high costs and a void in the international kiwi market. Because European producers are harvesting ahead of schedule, prices are skyrocketing. Early types, such as Green Light, will be harvested in October in Spain, while Hayward will be harvested in November. The harvest in the Northern Hemisphere is predicted to be low, with Portugal and Spain facing 10% and Italy's 15% decreases, respectively. Kiwifruit production in Greece in 2023 is expected to be 311,000 metric tons (mt), a 3% YoY decrease from 2022. Likewise, Asia is experiencing a more significant reduction in productivity than Europe, forcing it to purchase more European kiwifruit.

In Türkiye, the wholesale price of fresh kiwi has been on an upward trend since Jul-23, with an 11% month-on-month (MoM) increase to USD 2.9 per kilogram (kg) in W1 of Sep-23. This price hike is attributed to decreased Turkish kiwi yields during the current season. The lower yields are likely due to unfavorable weather conditions or bacterial disease, which have affected the quantity and quality of the harvest.

Meanwhile, the 2023 Chilean kiwi season is closing, with the final shipments scheduled for the Brazilian market. During this period, prices ranged from USD 30 to 39/10 kg-box, varying by category and caliber. The end of the Chilean kiwi season will result in a shortage in the Brazilian market until the arrival of Italian kiwis.

The first offerings of the Italian kiwi season have been presented to Brazilian fresh fruit importers. The kiwi variety Green Light is scheduled to depart in week 38 or 39, and prices for CAT1 in CIF-Santos range from USD 19.26 (EUR 18/9 kg-box) to USD 23.00/9 kg-box (EUR 21.50/9 kg-box) for calibers between 20-27. The arrival of Italian kiwis in the Brazilian market is expected for week 41.

Tridge expects the European kiwi market to experience high prices throughout the season due to lower yields and the end of the Chilean kiwi season. As European growers enter the harvest season, it will be crucial for traders to monitor these trends and adjust trade strategies accordingly.