It's becoming increasingly difficult to get overseas fruit in Europe. Prices are increasing, and suppliers from faraway destinations would sooner opt to service the domestic market or other markets, where they'll get good prices. Europe, and the consumer, is also not always prepared to pay the price asked for. According to Cédric Geens of importer W. Jonckheere, several examples can be given of imported fruit that has seen its prices increase sharply again this year.
Dollar influence
"It's not getting any easier when it comes to products like grapes, mangoes, pears and grapefruit. It's actually the case for all products that are paid for with American dollars. Within one year, the dollar has risen by 30%, having a huge impact on our market, where prices are sensitive already. And not everyone understands it, by the way. In the US in particular, they're saying: 'This is our price, and we're not going to adjust it.' So for them it's fine if Europe doesn't import. The domestic market there is just good."
Mexican limes
He points out that it's very easily noticed with Mexican limes. "Last year, the Mexicans exported them to both America and Europe. Due to the difference in exchange rate, they were still prepared to give assurances to Europe. This year, the exchange rate is nearly the same, but since they're getting much higher prices from America, for them it's hardly worth it to ship to Europe anymore. Instead of, say, 40, now they're only sending a few containers a week. The rest goes to the States. Now Europe really has to convince the Mexicans to send something."
Grapefruit
Grapefruit from Florida is still doing well at Jonckheere. "We are carrying them until May. Prices have increased sharply because of the dollar. Early January, we were still at 16.50 for a 15 kilo box, and now we easily reach 20. Despite the high prices, customers are still prepared to pay. This also has to do with the fact that there's no alternative for grapefruit from Florida."
Evolution
Cédric sees the fruit volumes from various countries decrease. "For many, Europe is a 'difficult' market, and they see no reason to send a lot there. If Europe wants enough fruit in the future, they really have to start paying more." Soon, the European season will start again, which means the dollar problem will be less prominent. "Still, you're seeing many suppliers from Spain and France who have stopped. They had a really difficult time with low prices last year." He thinks it's a bit controversial in this aspect. "We live in a world where prices in Europe are difficult, with people not prepared to pay a lot for food, while the other global economies are going through a big evolution. Take the States, Latin America, China, India. In those countries, purchasing power is increasing immensely. For us, it's only gone downhill after the introduction of the Euro and the disappearance of the 'own' currencies. In the future, there will have to come a point where Europe is prepared to pay more."
For more information:
Stefan Andriani
Cedric Geens
W. Jonckheere SPRL
Werkhuizenkaai 112
1000 Brussels
Tel: +32 - 22426103
Fax: +32 - 22451079