Similarly to how the production has been growing in recent years, broccoli consumption in Spain has increased significantly; and not only in the fresh sector. Its growth has also been possible thanks to the freezing industry, which allows consumers to obtain a product with all its nutritional and qualitative properties intact, but also with an extensive shelf life. In Spain, the industry's epicenter is in the province of Navarra.
"The industrial broccoli season is already over in our production areas in the provinces of Badajoz and Navarra. In Navarra, in particular, the broccoli grown is mostly intended for freezing. In 2021, 941,000 tons of frozen produce were processed in Spain, out of which 710,000 tons, 70% of the frozen vegetables in the whole country, came from just 3 companies in the province," says Eduardo DÃaz, from the Central HortofrutÃcola de Tudela of Grupo AN.
"At Grupo AN we are specialists in ad hoc products for freezers. We manage the marketing and packaging of the broccoli intended for the processing sector, for which we have both a manual and automatic cutting line, and we supply our fresh raw material to freezers in Spain, France and Portugal. Our volume of broccoli for the industry exceeds 20,000 tons," says Eduardo.
"Most of the broccoli frozen by freezing companies is intended for export, but the domestic market is also experiencing a boom in sales. Since broccoli is a healthy food and its consumption is already on the rise, frozen broccoli brings other advantages for the consumer. Compared to fresh broccoli, which has a limited shelf life and in which the part that is discarded, the stem, represents a significant percentage of the product, frozen broccoli can be stored for a long period of time and is 100% usable and ready to cook."
"The share of the frozen market is growing and is expected to continue to grow. In fact, the production and storage capacity of all freezers is expanding, as new investments are being made in chambers and freezing tunnels."
Increase in the cost of inputs
The rising prices have been a cause for concern for producers over the past year. The cost of fuels, fertilizers and electric power, the primary resources for all inputs, is currently in an upward spiral, with all-time records that have definitely shot up since the beginning of the war in Ukraine. This has been making the production process proportionally more expensive, both for producers and for the freezing industry itself.
"The price level in this segment is more stable than that of the fresh sector, since we work with closed contracts, although we are facing rather big problems."
"As for the weather, in September we recorded heavy rainfall in the area, which caused water stress and root asphyxia to the plants and reduced the production. At the end of the year we had a second incident with the overflowing of the Ebro River, which flooded the fields where production was underway in La Ribera, taking a toll on the harvest volume."
"At the same time, there has been a rise in the cost of all inputs. Diesel alone has reached a price of around 1.20-1.30 Euro, while last year it stood at around 85 cents, and fertilizer prices have gone from 370 to 800 Euro. Depending on the type, they can reach up to 1,000 Euro."
"At Grupo AN, our job is to defend the producers; therefore, from our sales facilities in Tudela we provide an advisory service to producers, as well as feasibility studies for crops to ensure that the prices in the contracts are in line with the production costs. This situation is affecting all of us, the producers and the freezing industry itself, and it is very difficult to transfer 100% of the price increase to the price paid by the end customer."
"With the summer crops we have been able to transfer the increase in the cost of inputs to the price at origin, raising it, because no producer can start at a loss with the cultivation, but the situation is so dynamic that, for example, with tomatoes, we have been forced to have to renegotiate contracts with the industry that had been signed on January 31, because in March, in just two months, the cost of inputs had risen by 10%."
For more information:
Grupo AN
Campo de Tajonar, s/n
31192 Tajonar, Navarra, Spain
Tel.: +34 948 299 400
[email protected]
www.grupoan.com