"The Spanish market started the campaign with low prices, which represented the basis for sales during the whole of June. Then prices increased slightly in the second half of July for no apparent reason. This was initially good for producers, however, it created a lot of problems because prices increased but demand did not."
"We believe the September market is not reflecting the reality. People are talking about lower South American production and the China and Russia effect. South American production is indeed looking 30% lower, which we think is positive so we can sell European produce more easily. We definitely won't be able to increase prices in the EU, actually they may decrease, making sales easier."
China has been rather stable in the past couple of years, with prices hovering around $1,000/1,200 per ton. It may seem quite a low price, but we must consider the measures against imports, which mean that the final cost is higher than the European one in the end.
As regards the Russian ban, Tuccillo says that "Russia will probably import more form other producer countries, but the Federation is not an eager consumer anyway. The damage maybe represented by the fact that we could have pressurised the market into getting accustomed to the European product. Anyway, Russia is out this year, so we must concentrate on Northern Europe."
"We are also hoping that crops will be diminished so quantities won't be exaggerated next year and we will have time to sell this year's stocks."
The production increase problem in Spain, France and Italy is caused by a bad relationship between producers and traders.
"Traders used to be separate from producers, so they both needed each other. Now traders have increasingly started becoming producers too, so they are interested in placing their own produce and not in what is available elsewhere. Because of this, producers have to deal with a decrease in demand and are forced to reduce prices while trying to place their produce. This situation can only change with a better organisation."
Contacts:
Antonio Tuccillo
Agrimpex Farming Srl
S.P. Caivano - Cancello
Contrada Sannereto
80011 Acerra (Napoli)
Tel.: (+39) 081 3195185
Fax.: (+39) 081 5207510
Cell.: (+39) 335 7746265
Email1: import@agrimpexfarming.it
Email2: agrimpexfarming@pec.it
Web: www.agrimpexfarming.it