W26: Peach & Nectarine Update

In W26 in the peach and nectarine landscape, Europech expects 2023 Spanish flat peach production to reach 335.93 thousand mt. The 2023 campaign started well with acceptable prices until W2 of Jun-23. However, the situation has become more complex recently, particularly for flat peaches, largely influenced by weather conditions. Spain experienced an intense dry spell from Jan-23 to mid-May-23, accompanied by unusually high temperatures in Apr-23. The weather then transitioned to cooler temperatures in May-23, accompanied by a period of rain and thunderstorms until the summer solstice on June 21. These climatic events, combined with cherry losses in the Jerte Valley, the Ebro Valley, and the Alicante mountains, directly affected the Spanish peach and nectarine harvest, especially flat peaches. These occurrences led to oversupply of production among different ripening varieties and a shortage of larger calibers. Flat peaches, in particular, experienced simultaneous ripening of various varieties that would typically occur in staggered periods. Additionally, size limitations were observed compared to previous seasons. Consequently, a lack of peaches and nectarines, especially flat peaches, is expected in the coming weeks.

In Italy, following peach and nectarine production delays caused by adverse weather conditions, there has been a significant influx of Italian products, resulting in a diminished presence of Spanish fruit in the market. Southern Italy registered good peach and nectarine production, while the Emilia-Romagna region experienced reduced shipments due to flooding in various production areas. As a consequence, peach and nectarine prices dropped to unusually low levels in W26. Additionally, the sudden onset of intense heat poses a risk of spoilage for the produce, further impacting prices. In the German market, there was a notable increase in the supply of peaches and nectarines from Spain and Italy, with some instances of significant growth. However, the demand, while not unfavorable, was not able to match the supply surge. Consequently, peach and nectarine prices in the German market experienced a decline, often exhibiting sharp drops as a result.

Lastly, the 2023 Georgian peach and nectarine export season is gaining momentum, with the establishment of an export support group in the Kakheti region to assist farmers with phytosanitary and customs documentation. Despite some peach and nectarine orchards being affected by hail and disease due to prolonged rains, the overall harvest is still expected to be average. Currently, farmers are reporting wholesale prices for peaches and nectarines ranging between USD 0.38-0.45/kg, which they consider lower compared to the 2022 season when prices reached USD 0.68-1.02/kg at the beginning. The decline in prices is attributed to the depreciation of the Russian Ruble and reduced demand early in the 2023 season. Since the export season is just commencing, farmers are uncertain about future price changes.