W23: Peach & Nectarine Update

In W23 in the peach and nectarine landscape, the Italian markets experienced another decline in supply of Spanish peaches and nectarines due to the delay in ripening resulting from the prolonged absence of sun exposure, and heavy rains. This situation did not favor demand for Spanish peaches and nectarines. However, prices still remain at high levels due to the delay in Italian peach and nectarine production, which is affected by bad weather. The quantities of Percoche and Platicarpa are increasing, but the demand is still subdued. Hail storms in West Greece, thunderstorms in North Greece, and high humidity concentrations in May damaged all early stone fruit varieties. Cherries were torn just a few days before picking, apricots thrown down from the trees, and peaches and nectarines mechanically damaged, devaluating the 2023 season's yield. The damage is around 40%, especially for early cherries and apricots, while peaches and nectarines are expected to be about 20% but are still being evaluated. The Greek stone fruit season is generally projected to have gotten off to a dismal start, with a significant loss expected in revenue for the entire industry.

France experienced a relatively mild winter for apricot and peach trees, but storms have followed one another in recent weeks in the south of the country, sometimes accompanied by hail. The Association of Producer Organizations (AOP) Peaches and Apricots of France indicate that the damage is very localized, but it is starting to accumulate seriously. However, at the same time, the north of Italy is affected by major floods, while drought is negatively affecting the north of Spain. These are two major peach and apricot-producing countries, and if their production is low, then there will be high demand for French peach and apricot fruits provided favorable weather. It is worth noting that peach and apricot consumption is influenced by the weather, such that when it's hot, the demand is high. In W23, French peaches are entering their first week, and if demand remains at the same level as May 7th, prices are likely to remain high, unchanged from the 2022 price of USD 3.78/kg.

The FAO expects a relatively low yield of peach and nectarine in 2023 in Uzbekistan, but farmers are prospecting for larger calibers. Thus, many Uzbek peach and nectarine farmers hope for higher prices for these fruits. Interestingly, at the moment, wholesale prices for peaches in the Uzbek market stand at USD 2.2/kg, much higher than in Tajikistan, trading at USD 0.7/kg. However, this situation is typical for Uzbekistan, where prices usually reach normal levels in the first ten days of July and remain low until mid-September. During the same period, the main export of products is carried out. Unlike Uzbekistan, in Georgia and Azerbaijan, farmers expect higher yields of peaches and nectarines. It is worth noting that the start of harvesting export-quality fruits is still far away, which is expected from June 25th. In Turkey, in the southern regions, where products are now harvested for export, a strong hailstorm has recently passed, which created a shortage in the supply of quality products. This led to an increase in the price of peaches and nectarines. But the harvesting of these stone fruits in other regions will begin only in two weeks. Turkish peach and nectarine export prices are anticipated to get support in the near future due to the expectation of lower Spanish yields.

Lastly, in South Korea, it is observed that the growth of major fruits such as apples, pears, and peaches is greatly sluggish due to low-temperature damage during the flowering period in spring. It is estimated that a decrease in fruit set in 2023 will occur by more than 10% compared to 2022. Therefore, there are concerns about problems such as reduced production and poor quality. South Korean peaches, which had a good harvest in 2022, are also sluggish. Due to the low temperature in early April, the occurrence of empty branches such as defective fertilization is increasing in lowland orchards. As a result, there are concerns about sluggish growth such as reduced fruit enlargement, deformed fruits, and increased dropped fruits due to temperature fluctuations during the growing season. It is known that the low-temperature damage to the mother system is relatively high. Experts indicate that the damage from low temperatures in 2023 is significant, and weather variables such as summer typhoons and torrential rains remain after fruit burns. Thus, it seems that 2023 will be more difficult to grow fruit than normal.