W25: Peach & Nectarine Update

In W25 in the peach and nectarine landscape, in Alabama in the US, farmers faced a challenging year due to freezing temperatures in Mar-2023, resulting in significant losses for peach crops in Chilton County. While some farms were able to salvage a portion of their crops, others lost their entire harvest. Farmers have suffered freeze damage, causing the seeds to rupture and the growth to halt. Despite the mid-season peaches compensating for some of the losses, the overall crop remains significantly below normal levels. The March freeze presented significant challenges, and although efforts were made to protect the crops, the mid-season peaches are only partially making up for the loss of other varieties.

In the Italian market, the introduction of Italian production alongside Spanish production led to an increase in the quantities of peaches and nectarines available. However, despite the increase in supply, demand has not risen, resulting in a decline in prices at the beginning of W25. Despite adverse weather conditions in the preceding weeks, Italian production managed to maintain a high-quality standard, particularly in southern Italy.

Lastly, the devaluation of the Russian Ruble and the disruption of transportation routes due to the outbreak of a civil war in Russia hindered the supply of seasonal fruits to Russia. This resulted in a significant drop in prices for peaches and nectarines in Georgia, Armenia, Azerbaijan, Iran, and Turkey. Prices for these fruits have nearly halved in just one day, from USD 0.80/kg to USD 0.45/kg, and the downward trend continues. It is anticipated that wholesale prices for fruits and vegetables in Central Asian countries like Uzbekistan, Kazakhstan, and Tajikistan will also experience a sharp decline in the near future. The outcome of the civil war in Russia will greatly impact the situation. This news poses a significant blow to farmers in the region, as the Russian market is their primary destination for fruit exports. Furthermore, the Russian market has witnessed a rapid increase in domestic fruit prices due to the need for importers to purchase foreign currency at the new exchange rate and the disrupted logistics leading to insufficient supply to meet demand. Importers are compelled to factor in worst-case scenarios as the Ruble continues to depreciate.