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Not expected to improve, after extension of Russian veto

Stonefruit prices plunge, 30% down in ten days

Murcia's stonefruit campaign is already at an advanced stage, with around 80% of peaches and nectarines harvested, as well as 70% of the Paraguayo peaches and plums, while the apricot season is already practically finished. Initial forecasts pointed to a production 10% greater than what has been harvested. Paraguayo peaches are the exception, with an increase in production volumes compared to the previous campaign.

"Fortunately, the fruit has larger calibres and a higher Brix this year, to which we must add the lack of rain, which allowed us to prevent problems related to fruit cracking, thus helping us maintain reasonable prices through June," points out Joaquín Gómez, manager of APOEXPA. "This has also allowed us to export more volumes to the UK, since we have managed to meet the quality requirements for distribution since the beginning of May. Typically, demand from the UK starts to grow later, as the fruit's Brix level increases."

According to the representative of APOEXPA, the campaign up until 20 June has been average as far as marketing volumes are concerned, with higher prices at the start compared to the beginning of the previous season, although two weeks ago the situation was reversed and prices dropped by about 30%, with all products with prices of around € 1.00 dropping to € 0.70. "This is a terrible drop, as with these prices we won't be able to cover production costs."

While the devaluation of the Rouble is causing a decline in the purchasing power of Russian consumers, the extension of the veto for another year will surely have a significant impact on the continuity of the campaign.

"Russia's announcement about its decision to extend the veto appears to indicate that it will be very difficult for prices to pick up again, as was the case last year, when distributors exerted great pressure on prices. For this reason, we believe that now is the right time to enforce crisis management measures, especially considering how much still remains to be marketed in Catalonia and Aragon," explains Joaquín Gómez.

Interestingly, Paraguayo peaches have been the fruit most affected by the extension of the veto, with a sharper price drop. "It was a fruit with growing demand in the Russian market," says Joaquín; however, he also highlights that "there is a growing market for this fruit." Such is the case in Germany and the UK, for example.

South Africa, a growing market for Murcia's fruit
Regarding third markets outside the EU, Murcia's fruit shipments are growing significantly in South Africa, thanks in part to the fact that the fruit is completely free of Monilia issues, an important requirement within the South African phytosanitary protocols.

"On 13 July, companies that are part of APOEXPA will travel to South Africa to deliver a presentation of their products, such as table grapes and stonefruit, which are already shipped to this country. The event will take place in Cape Town and all South African distributors will be invited. We hold this event every year to further consolidate our products in this market," he affirms.

United States not so interesting for apricots
Despite the fact that the United States announced the opening of its borders to Spanish apricots, the field analyses to be conducted by the U.S. Department of Agriculture are still pending approval. These are likely to be carried out ahead of next year's campaign.

"However, we would be more interested in shipping products such as peaches, nectarines, Paraguayo peaches or plums, because they have a longer shelf life than apricots," states Joaquín Gómez. "While it would be interesting to reach the east coast of the United States, we are aware that it will be very difficult to carry out the marketing, considering the strict phytosanitary controls."

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