The disproportionate carrot prices are causing difficulties in the Spanish market at the moment. This is mainly due to the fact that prices at origin have not increased at the same rate as in the retail, since production costs have not remained stable, while the market price has dropped considerably. This has resulted in an imbalance of costs and led to reduced profit margins.
"The current price is not fair; while prices at origin are not higher than usual, the retail price is very low and causes some imbalance. Cooperatives have much influence on prices at origin and are putting pressure to bring them down to lower levels than usual," says Sergio Cerrolaza, of the commercial department of Zanahorias Medrano SA.
At present, Andalusia's production is about to start, which improves this year's chances to export. "The domestic market represents between 70 and 80% of the total sales, although with this upcoming production in Andalusia, exports could increase to 40%, which is much more than usual. Occasionally, we export to Dubai and make regular shipments to Dublin. The market conditions are remarkable in Malta, where we are making weekly shipments, and in Africa, which we see as a very interesting destination because of the good prices they offer," he explains.
Zanahorias Medrano exports an average of more than 7 million kilos of carrots per year and has production in different parts of the country, allowing it to have a year-round availability of the product. The Nantes variety remains the most popular, both in the domestic and international markets, mostly because of its homogeneity in terms of sizes and calibres, which facilitates the selection process for its distribution.
"The prospects for this year are quite positive, since there were not many losses or periods without any production. Furthermore, more certifications have been implemented, without forgetting that checks are carried out on the products shipped on a daily basis. It is also worth keeping in mind that carrots are a very strong product that endures long journeys and can be transported in combination with other products," concludes Sergio Cerrolaza, of Zanahorias Medrano S.A.
