Bertrand Sabadie, managing director of ElbeFruit, looks back at the Peruvian campaign for the sweet pea, its flagship product. It is also an opportunity to take stock of current trends and sketch out the broad outlines of the coming season.
© ElbeFruit
A longer Peruvian campaign
"This year, for the first time, we have managed to bridge the gap between the end of the Peruvian season and the start of the Egyptian season by boat, without having to resort to air transport to ensure the transition, as we usually do," explains Bertrand Sabadie. This success was made possible by the development of a new production zone in Peru. "We were able to maintain supplies until last January, before moving on to Egypt, again by boat". Another success, this time in terms of quality. "We were also able to maintain quality from Peru right until the end of the season. We usually see a drop in the last few weeks due to the rain, but the more stable weather conditions this year meant that we were able to maintain optimum quality right up to the last container. For next season, ElbeFruit wants to "maintain its efforts on Peru" and is planning an earlier start. "The season normally starts in July and finishes in December, but this year it should start as early as May and therefore last two months longer."
"The configuration of the next Zimbabwean season will be different"
Although ElbeFruit has gradually reduced its volumes from Zimbabwe in favor of other origins, the country remains a safety net. "We plan to continue with some volumes just to secure supply." But the configuration for next season is likely to be very different from previous ones. This is due to major disruptions to logistics flows. "There is a major restriction on the space available for air transport (Air France KLM has canceled 1 flight on the Harare-Amsterdam route). Zimbabwean operators are therefore going to try to avoid air transport at all costs and fall back on sea transport. The price of air freight is also expected to increase sharply ($0.80 more per kilo)." While the future impact is difficult to assess, "it is certain that there will be a problem regarding prices this summer, particularly in view of the production peaks in both countries, which will arrive simultaneously at a time when consumption is at a low."
The ElbeFruit team
"Prices usually rise in November"
While prices tend to rise at the end of each year, this year was an exception. "Normally, demand and prices pick up in October, as soon as Zimbabwe is no longer present on the market. But this year, prices remained very low." These low prices are due to a combination of factors, including "a slowdown in consumption and a reduction in the volumes bought by supermarkets. Importers found it very difficult to sell off their stocks, even when the supply from Zimbabwe came to an end."
A saturated market
Now present on the Egyptian and Guatemalan origins, ElbeFruit reports a particularly difficult market. "There is little movement and overproduction in Egypt is flooding the European market." The oversupply has been noticeable since January, a month ahead of schedule. The usual drop in supply in May/June should see the market recover, with higher prices. Conversely, arrivals from Guatemala are proving more difficult. "All the boats arrive at least a week late. The ports of departure and transit (in the Dominican Republic) are completely saturated. And on the French market, unsurprisingly, the school holidays have slowed consumption sharply, which should pick up again in March."
For more information:
Bertrand Sabadie
ElbeFruit
Phone: +32 455 10 29 27
bertrand@elbefruit.eu
http://elbefruit.eu/