With Record Low Acreage of Asparagus in Germany, Farmers Are Expecting Higher Prices

Germany imported 19,500 MT of fresh or chilled asparagus in 2022, an almost 29% YoY decrease, according to the Federal Statistical Office. Based on historic seasonality, traders tend to import the majority of asparagus between March and June, targeting Easter demand. Last year Germany produced around 110,300 MT of fresh asparagus, an 8% YoY decline. Tridge followed the asparagus market the previous year when German farmers faced a labor shortage and low demand. Production forecast was subdued due to drought and heat waves, which negatively affected asparagus yields, lowering production from an estimated 133K MT at the start of the season. Based on Tridge data, the wholesale price of fresh asparagus, Class 1, in W4 of April 2023 was USD 15.09/kg. Traders expect higher prices due to Easter festivities and lower supply available.

Top 10 Trade flows of fresh asparagus imported by Germany

Source: Tridge

Regarding the trade of fresh asparagus, imports from Spain dominate with 34% of the import share, followed by Greece with 24% and Italy and Peru with 12% each. In 2022, Germany imported 6,735 MT of asparagus from Spain, an 9.83% YoY decrease. For Peru, the reduction of quantities imported by Germany is much more profound, with a 26.46% YoY drop to 2,293 MT in 2022. Increasing production from competitive countries such as Italy, and Spain, coupled with high logistics costs were the main reasons for the drop in Peruvian imports Although imports are not inconsiderable, Germany greatly relies on domestic production to meet the demand of the local population.

Rainfall Amounts Germany 2022 and 2023- And 20-Year Average

Source: Tridge

Production of fresh asparagus decreased for many reasons, partly due to adverse weather. High temperatures and warm weather favored asparagus growing conditions in March and April, while drought and high temperatures affected production afterward. Another point is the lower acreage under asparagus. Asparagus production occupied 21,300 ha, around 5% YoY less than the previous year, at the lowest levels since 2015. Despite the downfall, asparagus remains Germany's number one grown vegetable, followed by onions with 15,100 ha and carrots with 13,600 MT.

With the first batches of asparagus currently arriving, farmers are calculating costs. According to the Federal Statistical Office, producers' prices increased 34.5% YoY, fuelled by the energy crisis and inflation. Additionally, as stated in a previous Tridge analysis, the labor shortage is a problem this year adding an increased government minimum wage of EUR 12/hr, an 14.28% YoY jump from EUR 10.5/hr in 2022, narrowing farmers' profit margin. Depending on the production region in Germany, asparagus is at a different stage of maturity. Farmers all over Germany are trying to deliver as many quantities as possible before Easter when traditionally, asparagus is part of the Holiday cuisine. While there is cautious optimism about the forecast of asparagus production this year, higher prices might only make a profit for some farmers.