In 2024, farmers' blockades severely disrupted supplies, and this year, logistical problems persist - this time with sea freight - compounded by unfavorable weather conditions for production. "We continue to experience a period of crisis upstream, which is expected to last until the end of May," explains Robert Blanjoue, product manager at Dole France.
© DOLE The Dole pineapple range is segmented into 2: Tropical Gold pineapple as standard and Golden Selection as premium (color 3).
Strong demand from the North American market
Climatic factors such as heavy rainfall have had an impact on production in Costa Rica. "Too much water has affected not only coloring, but also the size of the fruit exported, which is now mostly smaller." There were weather problems, but also major logistical difficulties in March, with empty containers and a shortage of boats. "Fortunately, Dole has its own fleet, so we were not affected. However, the strong demand from the North American market has completely changed the situation to the detriment of Europe. "This very strong demand on the other side of the Atlantic can be explained in particular by a purchasing power that is now much greater than ours, with prices that are therefore much more attractive than those paid in Europe," explains Robert Blanjoue, who nonetheless tempers the situation. "However, this may be less true today, given the average prices in Europe that can reach €13 to €20 (14.8 to 22.7 USD) at the peak, which is unheard of in the last 20 years!"
No promotional action until the end of May
Given the current situation, Dole has decided to "suspend all promotional actions from last month until the end of May at all distribution points in Europe," explains Robert Blanjoue. This decision includes the Easter period, which is synonymous with strong demand. "We are in an unprecedented situation right now because we cannot keep up with demand, either from supermarkets or wholesalers. In this context, introducing promotions would be totally absurd and synonymous with economic losses for producers." And while the premium Golden Selection segment from Dole had seen its sales grow in supermarkets, despite its top-of-the-range positioning, price increases have finally halted the momentum. "At €17 to €20 (19.3 to 22.7 USD), consumers are obviously held back."
Will the situation improve next month?
Market conditions could improve from June onward, both in terms of available volumes and fruit coloring. "But we need to remain vigilant, as this improvement could coincide with the traditional drop in demand during the summer period." This difficult period has also been affecting bananas. "It is very complicated to keep up with the demand. Today, wholesalers are trying to get their hands on bananas at all costs, at prices that sometimes defy all logic."
For more information:
Dole France
ZAC du Griffon,
511 Route de la SEDS, Bâtiment 14
13127 Vitrolles
Phone: + 33 442 416 680
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