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Current Position:Home » News » Marketing & Retail » Food Marketing » Topic

Spanish subtropical fruits expanding in European markets

Zoom in font  Zoom out font Published: 2016-03-17  Views: 2
Core Tip: Spain's domestic production of subtropical fruits concentrates in the area stretching from Albuñol, in Granada, to Fuengirola, in the neighbouring province of Malaga.
Spain's domestic production of subtropical fruits concentrates in the area stretching from Albuñol, in Granada, to Fuengirola, in the neighbouring province of Malaga. In these areas, there are plenty of avocado, cherimoya, mango and loquat plantations, which are achieving different results. While some crops are losing ground because of their low profitability, others are expanding in the European markets, where they are increasingly appreciated. This is the case of mangoes or avocados.

The latter's production volume grew last year by 23% compared to the figures reached early in the current decade, with 5,120 tonnes more. In Andalusia, the figures achieved by this fruit already almost double those of cherimoyas, while avocado plantings are also slowly increasing in other places, like Cadiz, even though the crop requires special weather conditions. In Granada, avocado production stood at 27,089 tonnes last year, nearly half of the figure achieved by Malaga.

A sure incentive for this crop's expansion is the price it is managing to reach in the market. In the 2014-2015 campaign, in particular, the Hass variety reached an average of 2.03 Euro per kilo; a price that may sound like science fiction to other producers. Most avocados, 64,989 tonnes, were shipped to foreign markets, generating a total of 148.23 million Euro, according to data from the Council of Agriculture, Fisheries and Rural Development of the Government of Andalusia.

In that campaign, which was characterised by the high prices at origin and larger volumes than in previous years, the peak was reached in March 2015, when 10,954 tonnes were exported in just one month; a record figure for this subtropical sector, as the peak in the previous year had been reached in April 2014, with 8,267 tonnes. Exports recorded the best figures of the past few campaigns in terms of both volume and revenue, with increases of 16 and 37%, respectively, compared to the average of the three preceding seasons.

From August to December of the 2015-2016 campaign, the number of kilos was reduced and prices went through the roof, reaching 2.54 Euro per kilo on average in the EU and 1.99 Euro per kilo in other countries. Avocado exports have fallen by 11% in volume and increased by 10% in value compared to the previous year, mainly due to the 24% increase in the price per unit in the European market. The monthly trend of exports to the European market is similar to last season, although with smaller volumes. Europe received over 95% of the exports. France is the largest recipient, with more than 24,600 tonnes (40% of European exports), followed by the Netherlands, Germany and the UK, with 14%, 12% and 11%, respectively.

We will have to wait and see whether prices of up to 3 Euro per kilo are reached in the final stretch of the campaign, as was the case last year.

Mangoes have also reached record figures in recent years in terms of both sales volumes and turnover, although fewer kilos will be marketed this campaign. With a market almost entirely devoted to the export market, more than 27,000 tonnes were shipped overseas in 2014. This figure won't be reached this year, but the foreign markets should still yield good results.

The volume exported grew by 57% in 2014 compared to the average of the three preceding seasons, while the revenue generated increased by 81%. The main destinations for Spanish mangoes were Portugal (31%), France (21%), Germany (20%) and the Netherlands (14%).

In the 2015-16 campaign, mango exports have fallen by 27% in volume and 7% in value compared to the previous season. The 27% increase in the price per unit in the European market has taken a positive toll on the total value, partly compensating for the drop in volume. The average selling price overseas has reached astronomical figures for the sector, of about 2.62 Euro per kilo in non-EU countries and 2.09 Euro in the EU.

Another kettle of fish are the prices reached in the retail markets, where customers are paying up to 10 Euro per kilo.
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