Inclement weather has again interrupted the flow of strawberries from the Spanish producing region of Huelva. “The weather in Spain has interrupted the first main flush of fruit which has reduced the expected volumes,” said Scott Woolford, of The Summerfruit Company. “This, in conjunction with increasing interest in the European market, will create pressure on prices.” Temperatures in the Huelva region earlier this week have risen bringing more fruit on stream, but growers and exporters paint a picture of low prices and a lack of demand from key export markets.
“The strawberry campaign this year is characterised by a decrease in prices due to an excess in production as a result of low temperatures and poor weather across the continent,” a representative at strawberry-grower group Freshuelva was quoted in the Spanish press.
The consequences for operators are large losses and a lack of profitability.
Freshuelva’s analysis therefore differs from that of UK operators. “It is a domino effect,” the Spanish organisation was reported. “Too much product because of low demand has pushed prices onto the floor so that a kilo of fruit is selling for less than a euro.”
Prices on UK wholesale markets came crashing down from 40-50p for a 250g punnet last week to 25-35p this week.
“Crucial to the success of the rest of the season will be an increase in demand in Spain’s key export destinations,” concluded Freshuelva.
Meanwhile, a group of producer-members of the organisation are taking matters into their own hands to co-ordinate their commercial activities in an attempt to defend strawberry prices. Freshuelva described the move by Santa María de la Rábida, Onubafruit, Moguer Cuna de Platero y Grufesa as “a voluntary initiative” that is “totally exemplary”. The aim is to bring stability back to the campaign which is due to finish in June and salvage returns to growers.
No comments yet