W21: Cherry Update

In W21 in the cherry landscape, the Italian cherry campaign is underway, with Spanish cherries entering the market first. Italian markets experienced a drop in cherry prices due to the increase in the volume of imported products. At the same time, Italian cherry production also began, but with serious harvesting problems due to the heavy rainfall that is affecting Italy, especially central and northern Italy. Specifically, the absence of sun and the heavy anomalous rainfall are not allowing a good harvest and proper ripening of the fruit. This has negative repercussions on the price quotations which fall due to the low quality of the product and subdued demand, the latter influenced by temperatures that do not encourage buying. In Campania in Italy, cherry farmers are counting losses exceeding 60% of production due to the excess of unseasonal rain. So far in 2023, Italy has experienced a 64% increase in hailstorms, water bombs, and windstorms alternating with drought, which devastated the countryside and cities from north to south of the Peninsula compared to 2022. The Italian cherry fruits that survived the bad weather will not be able to meet the market demand while maintaining their nutritional qualities.

In Poland, the first cherries have appeared in stores, mainly sourced from Spain and Portugal, but their prices are high. Some buyers are refraining from buying imported cherries for 2-3 weeks since Polish varieties usually appear in June when prices will start to drop drastically. However, Polish cherry growers warn that due to difficult weather conditions, the 2023 Polish cherry harvest may be slightly delayed. According to experts, Polish cherry prices are estimated to oscillate between USD 5.89-7.07/kg and may fall to USD 3.53/kg during the season. Tridge’s data analysis indicates that, in W19, fresh cherry prices in Spain fell due to increased supply. In Catalonia in Spain, wholesale prices of cherries dropped from USD 7.83/kg on May 8th to USD 6.41/kg on May 15th, down 22.2% WoW. The Spanish cherry harvest is picking up, resulting in increased supply in domestic markets. Although the season began slightly late in April because of delayed flowering, the harvest is still expected to progress at a faster rate due to high temperatures. Tridge expects the season to peak in June, pushing prices down as supply floods the domestic markets.

The cherry harvest started in Mersin, one of Turkey's major agricultural production centers. The 2023 harvest of early sweet cherries in the Erdemli region in Turkey is expected to reach over 5K MT from a 250 ha planted area. In W21, the cherry farm gate price stood at USD 2/kg. Additionally, this early variety is a fleshy type preferred by exporters, mainly in Norway, Germany, and Russia. The harvest, which started around mid-May, is expected to continue until mid-June in the Mersin region. Lastly, Tridge’s data analysis outlines that, in W18, fresh cherry prices in South Africa fell due to increased supply. In Pretoria in South Africa, wholesale prices of Black Bigarreau cherries dropped from USD 0.45/kg on May 1st to USD 0.39/kg, down 12.5% Wow. South Africa has been experiencing a bountiful cherry season as a result of increasing cherry production areas in the country, with a 77% growth rate over the past five years. Warm weather during Spring also allowed the fruit to mature well. Tridge expects fresh cherries to trade upward in the coming weeks as the season winds down.