Lower Asparagus Production in Mexico and Spain Anticipates Higher Prices

Mexico and Spain have both reported lower supply for the current asparagus season. Abnormal weather conditions in Mexico are causing a drop in asparagus production. Spain’s asparagus harvest seems to be delayed due to a lack of rain and a drop in temperature. Representing 31% and 7% of the global export share, respectively, lower asparagus production in Mexico and Spain is expected to influence global market prices directly.

Mexico’s Production Shortage Already Affects Domestic Prices

Unfavorable weather hit the Mexican asparagus sector during its harvest season (December to April), affecting approximately 30% of the Sonora state production. Mexican asparagus exporters in Sonora, where more than 50% of the country’s production is grown, have reported abnormally cold temperatures during the months of February and January, resulting in substantially lower-than-expected yields so far this season.

According to Jose Ricardo Ivich, a Sonora asparagus producer, “unexpected low temperatures during winter season delayed blooming, damaging around 30 to 40% of the year’s harvest”, he mentioned. The shortage in production right when shipments to the US should start flowing has already affected domestic prices in Mexico.

According to Tridge’s Price Chart, by Week 8 of the year, the wholesale price of asparagus in Mexico increased by 22% YoY by Feb-28. Mexican asparagus was sold at USD 7.25/kg, compared to the same week last year when it was sold at USD 5.90/kg. The price had adopted an upward trend since Week 1 of the year when it reached USD 7/kg and has escalated since then, reaching prices usually seen in October and November, when there is no availability in the market.

Trend of YoY Mexican Asparagus Price 

Source: Tridge

Delays in Spanish Harvest to Influence Price Increases in Europe

The Spanish asparagus harvest season has just started during the first week of March-22 in the region of Granada, the main asparagus-producing area in Spain. According to Spanish producers, several plots with minimal volumes of asparagus will cause delays in the harvest season. In addition, the lack of rain and sudden drop in temperatures have slowed down production in the plots, which producers expect to have more consistent volumes after three or four weeks more.

Delays in production for this year are expected to cause a significant price increase in Spain and the EU market. When Spanish green asparagus is out of season, imports mainly from Peru supplied the Spanish re-export market. However, Peruvian avocados have substantially increased their price in Spain by 24% YoY due to very limited air cargo availability and high airfreight costs.

The other source for green asparagus for the European market would be Mexico, which normally can provide reasonable prices and relieve the pressure on the Spanish market. However, it seems this year the Spanish re-export market won’t be able to fulfill the EU demand due to a lower volume in the Mexican market and a high demand from the US, which will undoubtedly push prices high.