The German fruit and vegetable industry looks back on an extremely challenging year 2024, marked by extreme weather. Late frosts and prolonged wetness caused problems for producers and affected harvest volumes. According to estimates by Agrarmarkt Informations-Gesellschaft (AMI), the 2024 fruit harvest was the second-weakest of the past decade. Vegetable yields were also down from the preceding year.
The situation was exacerbated by the further decline in available pesticides to effectively counteract the weather-related disease and pest pressure. Although there were no long-lasting supply bottlenecks, the market was hardly oversupplied either. In a market assessment for the current year, the Bundesvereinigung der Erzeugerorganisationen Obst und Gemüse (en.: Federal Association of Fruit and Vegetable Producer Organizations, BVEO), in collaboration with AMI, does not expect much relief: "The combination of further increases in operating expenses and high consumer living costs means that the general conditions remain difficult. The situation for companies was already tense last year. This year will hardly see any improvement," emphasized BVEO managing director Dr. Christian Weseloh at Fruit Logistica.
Presidential tour at Fruit Logistica (from left): Dr. Sebastean Schwarz, managing director of the Union der Deutschen Kartoffelwirtschaft e.V.; Jens Stechmann, chairman of the Bundesausschuss Obst und Gemüse; Bertram Fleischer, secretary general of the Zentralverband Gartenbau e.V.; Johann Meierhöfer, Head of Crop Production, Deutscher Bauernverband e.V.; Laura Lafuente, Managing Director, Bundesfachgruppe Gemüsebau; Christian Ufen, Chairman, Bundesfachgruppe Gemüsebau; Franz-Josef Holzenkamp, President, Deutscher Raiffeisenverband e.V.; Dieter Krauß, President, Deutscher Fruchthandelsverband e.V.; Eva Kähler-Theuerkauf, President, Zentralverband Gartenbau e.V.; Dr. Andreas Brügger, Managing Director of the Deutscher Fruchthandelsverband e.V.; Anders-Maximilian Gyllenstig, Managing Director of the Bundesausschuss Obst und Gemüse; Jörg Migende, Chief Executive of the Deutscher Raiffeisenverband e.V.; Johannes Bliestle, Chairman of the BVEO e.V.; Dr. Christian Weseloh, Managing Director of the BVEO e.V.
At the traditional German Hall at Fruit Logistica, the German producer organizations for fruit, vegetables, and mushrooms presented a wide variety of local fruit and vegetables at a joint stand organized by BVEO. At the 1,400-square-meter stand, customers and visitors from all over the world could learn about products and innovations. The high importance of the trade fair and the BVEO presence was also emphasized by the prominent presence of several presidents and managing directors of partner associations on the tour.
The year 2024 has impressively shown the influence of weather on yields and the marketing season for fruit and vegetables. The frost events in the last week of April were severe. Every growing region in Germany reported damage, ranging from apples to berries and plums. Eastern German producers were particularly affected, with serious losses across the entire fruit range. The weather did not settle down in spring and summer, either. Heavy rainfall events or thunderstorms cells with storms and hail hampered production and had consequences for strawberries, blueberries, lettuce, and plums, among other things. According to an initial estimate by AMI, the German fruit harvest in 2024 is expected to be around 1.08 million metric tons. This is the second-weakest harvest of the past decade – only 2017 saw a smaller crop.
The changeable and sometimes extreme weather conditions also led to a tighter supply of German vegetable growing in 2024. In this situation, producer prices were achieved that tended to be slightly above the previous year's level, but were hardly sufficient to offset the further increase in production costs. AMI estimates that the outdoor vegetable harvest will be down just over 1 percent from the previous year, at 3.68 million tons. Yields in greenhouse vegetable production also failed to reach the 2023 level. Although it was warmer in 2024, there was insufficient sunshine.
In addition, the further increase in the cost of living in Germany weighed on the industry. Added to this are consumer concerns about the weakening economy and uncertainties caused by political developments at home and abroad. According to preliminary data, consumers had to pay around 3 percent less for fresh vegetables over the year as a whole than in 2023. Nevertheless, consumers only bought 2 percent more vegetables.
Outlook fruit market
The stock levels of German apples at the beginning of the year were lower than in previous years. However, there are differences between the regions and the varieties. The weather conditions in the coming weeks and months will be crucial for the 2025 fruit harvest. Frost or hail at the wrong time would again have a strong influence on subsequent yields. No major changes in acreage are expected, although structural change is likely to continue. Further increases in labor costs and a shortage of labor are fundamental challenges for production companies. But the question of how production can be secured in the face of more frequent extreme weather events is also a crucial one for producers and companies – and must be answered.
Outlook vegetable market
The challenges in production and trade will not be any smaller in 2025. Open-field vegetable growing is heavily dependent on weather conditions. It can therefore be assumed that there will be effects on supply in 2025 as well. In terms of the market, the supply of autumn and stored vegetables in Germany is quite sufficient at the start of 2025. The development of the quality of the stored or overwintered goods must be monitored.
High labor costs and uncertain production conditions
Apart from the weather challenges, numerous other issues concern the industry. The availability of pesticides is further restricted. Sometimes, there is still no adequate response to new diseases and pests. The labor shortage is worsening. It is no longer just managers who are scarce and sought after. The plans to further increase the minimum wage are driving up costs and unsettling the industry. The question of a level playing field within Europe must be asked. High labor costs and uncertain production conditions are making German production less attractive.
Some food retailers are already looking for alternative imports early in the season. This does not fit with the idea of strengthening regional production. Consumer uncertainty will continue. Although collective wage agreements in 2024 have narrowed the gap between nominal and real wages somewhat, the cost of living continues to rise. In addition, global political crises are unsettling consumers and leading to consumer restraint and price-sensitive shopping.
For more information:
https://bveo.de/