Valentine's day pushes up demand and price of strawberries globally
The demand for strawberries is peaking both in the US and Europe this week. In the run up to Valentine's Day the demand traditionally rises. In the US this means that shortages are threatening and the prices are going up. In Europe the prices are going up too, but there are no shortages as of yet. With the exception of Belgium, where there seems to be a shortage of the summer fruits. Most EU countries import the strawberries from Spain, Morocco and Egypt. Besides this there are strawberries available from greenhouses in the Netherlands and France. In Italy the harvest has started, but the prices are under pressure due to the supply from the above mentioned countries. The prices in Israel are also decreasing as the harvest of the open ground strawberries has started. Further away, growers in New Zealand see their export opportunities increasing. These growers are positive about the season.
More export opportunities for New Zealand
More markets are opening for New Zealand strawberries globally. With this increasing market access, the growers also see demand rise. More was certainly exported this season, a trader says. Asia (Hong-Kong, Thailand and Singapore) is an important market for the New Zealand summer fruit. Other markets are the United States, Canada and the Middle East.
The season has just ended, so it's too early for definite figures. What is clear is that the export has increased, especially towards Asia and the Middle East. The season went well, with cool and dry weather. In September, October and November it was cool, which meant almost the entire harvest was brought in in the last month of the year. The good export market is favourable for the growers on the island group. These markets take the pressure off of the domestic market.
Demand peaks around Valentine's Day in the US
Valentine's Day puts the strawberry markets in the United States on edge. The supply can hardly handle the peak in demand around this day. California and Mexico are supplying too few strawberries to meet the demand at the moment, which is resulting in high prices. For both Californian and Mexican strawberries, the prices are above 20 dollars per box, normally the price level is around 15 dollars.
Besides the large demand in the run up to Valentine's day, the area also decreased. In California there are twelve percent less strawberries than last year. The causes of the lower area include the drought, which is mainly hitting hard in Oxnard. On the other hand Oxnard and Santa Maria are experiencing a shortage of labourers on the field. In Florida the supply is slow and the demand is good. Prices are lower than in California.
Mexican acreage grows
The export of strawberries increased by 30 percent last year to 168 million dollars. The season runs from November to April/May. Growers are choosing cultivation in tunnels more and more often. The plastic protects the soft fruit against weather changes. The macro tunnels give Mexico an added advantage, these tunnels are more efficient in Mexico than in the United States. Last year the area was estimated at 8,000 hectares, an increase of 15 percent compared to 2014. Around 85 percent of the production is intended for export, in which the United States, Canada, Japan and the Netherlands are the main markets. This week negotiations between the European Commission and Mexico on the trade in organic products started. The North American country has a large organic cultivation, in 2014 the area was at 24,500 hectares and 104,000 tonnes of organic products were harvested. Strawberries do well within this category, just like tomatoes, raspberries and coffee.
Italian season two weeks ahead
This year the region Basilicata is taking the lead position in production from Campania and Veneto. The strawberry cultivation in the region is growing, partially thanks to the variety Candonga Top Quality. This variety represents half of the total production in the region. Last year the area increased by twenty percent. Other cultivation areas in the Southern European country include Sicily. The warm winter caused a large production, only slowed down by a cool week at the start of January. The season is a minimum of two weeks ahead of previous years. The first volumes have a good quality. The strawberries compete with the Spanish production in price. The price level is under the level of last year. The prices were high in November and December last year. A market saturation followed in January as Spain, Morocco and Greece also entered the market. This resulted in a lower price for the early varieties.
Belgium unexpectedly without strawberries
The Belgian strawberry market is almost empty. The domestic cultivation is quiet. Due to weather changes the supply started much earlier, which means there is now a hole in the supply. This situation goes for all greenhouse vegetables. The sun is hiding behind the clouds too often recently, which slows the growth of the crops. Two auctions indicate they have no Belgian supply at all. At a third auction the prices today (Friday 12 February) went up to 12 Euro per kilo.
Dutch greenhouse strawberries on the rise
Looking back the autumn was a remarkable period, without extreme peaks in the early production. This resulted in high prices, up to 9 Euro in week 48 and 49. During the winter months the supply from Egypt was disappointing, the country exported around 60 to 70 percent of the total season expectation to the EU. Due to the colder weather the Egyptian strawberries are of lesser quality. Due to the mild weather in Europe the season in Spain and Morocco are earlier. Due to these developments the prices folded quickly.
The Dutch cultivation of greenhouse strawberries is going through a good time. The area is growing, according to some estimates around 350 hectares at the moment and the demand is growing with it. There is also space for strawberries from countries like Morocco, Spain and Egypt between week 45 and 8. The prices in the Netherlands are at six Euro for the top of the market, the Egyptians get 3 Euro. It is mainly Spain and Morocco that determine the prices.
Like in the US, Valentine's Day also causes a peak in the Netherlands. It is expected that the price will decrease starting next week. This situation is expected to keep up until week 14,15. If the supply from Spain and Morocco reduces in those weeks, higher prices are expected.
Brits leave strawberries
Although the British are really strawberry eaters, during Wimbledon alone 28,000 kilos of English strawberries are eaten, the consumption towards Valentine's Day is disappointing. Most retailers seem to have set up deals with flowers and chocolate, the summer fruits are second best. The strawberries available are mainly imported from Spain, Egypt and Morocco.
France: mainly import, small greenhouse volume
Most of the strawberries on the French market are imported from countries like Egypt, Spain and Morocco. Besides this there is a small volume of supply from Belgium and the Netherlands. In the country itself strawberries are grown on a small scale in the greenhouse. Hardly any of the French production goes over the border. The domestic market consumes almost the entire volumes. There are large differences in prices. The Egyptians and Moroccans are 4.50 Euro per kilo. The Spanish are at 6 Euro per kilo and the Dutch and Belgian are at the top with prices between 9 and 10 Euro per kilo. The French strawberries are sold for 6.50 Euro.
Open ground strawberries cause Israeli prices to decrease
November and December were good months for the strawberry trade, says an Israeli trader. The greenhouse strawberries that were on the market then were getting good prices. Now that the open ground cultivation is on the market, the prices are under pressure due to the larger volume. The season for open ground strawberries will run until April.
Pakistani cultivation has a lot of potential
Growers can raise the production with better cultivation methods, this is why experts are trying to educate strawberry growers in Pakistan. The yield is currently at 300 to 400 kilo per acre (around 0.5 ha). The government is spreading a press report on the necessity of weeding and good irrigation methods. Growers are also advised to place plastic around the plants to prevent damage to the fruit.
Every week FreshPlaza and AGF.nl publish an overview of the market situation of a product in a global context. With these articles these articles we aim to provide a view of a global market shrinking due to globalisation. Next time grapefruit will be in the spotlight.
