W29: Peach & Nectarine Update

In W29 in the peach and nectarine landscape, Europech estimates European peach and nectarine supply in 2023 at approximately 3.4 million metric tons (mmt), an increase of 14% year-on-year (YoY). However, the 2023 European peach and nectarine production appear slightly below the five-year average. The Centro Servizi Ortofrutticoli (CSO) expects peach and nectarine supply in Italy at around 900 thousand metric tons (mt) in 2023, a drop of around 10% YoY and about 30% compared to the five-year average. The initial phase of the 2023 Italian peach and nectarine season registered limited supply and higher prices, surpassing those of 2022 and the average price from 2020 to 2022.

Peach and nectarine imports in Italy are expected to increase in 2023 compared to 2022, reaching around 100 thousand mt, consistent with the five-year average. However, exports are projected to decline sharply compared to 2022, falling below the 125 thousand mt average for the 2018 to 2022 period. The average retail price increased by 11% YoY, keeping the overall expenditure relatively unchanged. Moving forward, the 2023 campaign is expected to witness volume normalization and price easing compared to the beginning of the season.

Italian peach and nectarine prices continued to decline due to stagnant demand and a significant increase in incoming supply. Nevertheless, sales are supported by improving fruit quality as adverse weather conditions come to an end. However, it’s worth noting that the intense heat poses fruit deterioration risks, potentially contributing as an additional factor in the declining prices. Despite these challenges, maintaining and enhancing fruit quality remain crucial to sustain market appeal.

In the German market in W29, Spanish peach and nectarine deliveries remained dominant, followed by Italian deliveries. French peach and nectarine offers played a complementary role. Turkish and Greek peach and nectarine fruits were occasionally available as well. However, some Spanish products exhibited organoleptic weaknesses at times, affecting their overall market performance.

Lastly, Business Georgia reports that Georgian peach exports since May-23 reached 10.3 thousand mt, valued at USD 11.1 million. This is an increase of 4% in volume and 1% in value compared to the same period in 2022. Georgian peach shipments were primarily destined for Russia at 9.27 thousand mt, Armenia at 970 mt, Belarus at 20 mt, and Ukraine at 18 mt. The Ministry of Agriculture of Georgia is committed to supporting agricultural development and has implemented various programs to assist farmers. The primary objectives of the programs are to enhance the production processes in primary agriculture, processing, storage, and marketing. The programs also offer farmers and agricultural entrepreneurs access to cost-effective, long-term, and accessible funding.