W41: Peach & Nectarine Update

In W41 in the peach and nectarine landscape, due to favorable growing conditions, the global peach and nectarine production in 2023 is expected to reach 25 million tons, an increase of 827 thousand tons from 2022. China is a major contributor to this increase, with production expected to rise by 500 thousand metric tons (mt) to 17.5 million metric tons (mmt). The European Union (EU), particularly Spain, also sees increased peach and nectarine production, offsetting losses in other European countries due to unfavorable weather. Meanwhile, Turkey's production remains stable at 1 million tons, with a shift towards nectarines. Exports are increasing, particularly to Russia, Iraq, and the European Union (EU), marking the fourth consecutive year of growth.

In the United States (US), peach and nectarine production is forecasted to hit a 40-year low, decreasing 76 thousand mt to 574 thousand mt. Adverse weather in California, South Carolina, and Georgia has caused substantial damage to plantations. As a result, exports are projected to fall by 11 thousand mt to 50 thousand mt, and consumption is expected to decrease to 556 thousand mt due to reduced supply.

Peach and nectarine production in Chile is estimated to remain steady at 164 thousand mt, with good winter rainfall sustaining production. The conversion of new nectarine plantations balances this. Consequently, exports are forecasted to stay at 105 thousand mt. Meanwhile, Russia, the world's largest importer of peaches and nectarines, is expected to maintain nearly unchanged imports at 315 thousand tons, primarily sourced from Turkey. Russia accounts for approximately 40% of global imports in this category.

During W40, yellow peaches have become available at the Spanish wholesale market Mercamadrid. These are the last Spanish peaches of the season, with prices ranging from USD 2.44 to 2.65 per kilogram (EUR 2.30 to EUR 2.50/kg).

Australian peach and nectarine production for the 2023/24 season is expected to increase by 10 thousand tons, reaching 90 thousand tons, a 13% rise from the previous season. Exports are projected to surge by 40% to 14 thousand tons. This growth is attributed to favorable factors such as suitable low-temperature conditions, drier weather forecasts, ample irrigation resources, and improved labor availability during the harvest. These conditions follow a season of reduced yields due to excessive rainfall in Victoria and New South Wales.

Lastly, the United States Department of Agriculture (USDA)'s World Markets and Trade report reveals a projected US peach and nectarine production of 574 thousand mt for the 2023/24 season. Production has remained relatively consistent over the past five years, ranging between 650 and 710 thousand tons. Nevertheless, adverse weather conditions, such as prolonged blooms in California and frost in South Carolina and Georgia, are anticipated to reduce supply in the 2023/24 season, pushing it below this range.