After peak, Spanish cucumbers now set to fall

The first cucumbers of the season have been auctioned in recent weeks in the Netherlands and Belgium; however, the supply is still small and the markets are still largely dependent on imports from Spain. In that country, the high temperatures led to an oversupply of cucumbers and a discussion about whether or not to withdraw a share of the production. In Russia, prices have sharply increased. Importing is virtually impossible and the domestic production is limited due to outdated greenhouses and cold temperatures. Israeli growers can barely meet domestic demand and a similar picture is true for Egypt. In Australia, the market is saturated. Chinese traders expect price increases in the run-up to the Chinese New Year. Mexico's production goes almost exclusively to the American market, where, at present, producers in Ontario are satisfied about the winter season. However, there are concerns about a saturated market in the summer months.

Prices in Russia vary widely. In a supermarket in Ulyanovsk, cucumbers cost 455 roubles (5.20 Euro) per kilo. In Stavropol, they stand at 290 roubles (3.33 Euro) per kilo. According to the director of a supermarket, the boycott is the main cause of the high cucumber prices. The low supply of domestic cucumbers has played a major role in boosting prices. Domestic production in Kaliningrad, for instance, has been inhibited by low temperatures. Since the early '90s, few greenhouses have been built, which means most of the acreage is outdated.

This year, the cucumber acreage with high wire cultivation in the Netherlands has grown by 15 hectares. According to producers, eventually the whole acreage will consist of high wire cultivation. Besides the expansion of this cultivation method, another recent development has been the ability to supply cucumbers all year round. The first cucumbers of 2016 have already been harvested. In order to grow them year-round, producers must plant the cucumbers in late November. Traditionally, growers plant the cucumbers in mid- to late December. According to some, high wire cultivation is a way for the Dutch production to stand out when compared to the Spanish product, but this is still not fully achieved, as the price difference is too great. The high-wire cultivation method delivers consistent quality cucumbers, but requires more labour.

Protected crops offer stability and growers are optimistic about the new season. The acreage is similar to last year's, although there has recently been a slight shift towards snack and mini cucumbers. After the good market conditions achieved last year, growers are well prepared to face the campaign. The mild weather of the first weeks of the season has allowed for extremely low gas consumption and resulted in the growth of fertile, vigorous plants. The recent gloomy weather, however, has again slowed down growth, which could possibly entail some delays in the production.

Among the growers, there are still fears about the presence of the green mottle mosaic virus (CGMMV), which has been causing serious problems for many years. Last year, a protocol was launched to allow growers to have a virus free season. The question now is whether this will actually happen. This could also give a boost to the high wire cultivation method, since cultivation takes place for much longer periods in it, so the virus can be a problem.

The first Belgian cucumbers were auctioned on Wednesday 13 January. The first box with 12 cucumbers of the +350 Flandria quality was purchased by Impex, in the Netherlands, for 10.03 Euro each. With these first national sales, the Belgian spring vegetable and fruit campaign has officially started.

West Flanders is Belgium's largest production region for cucumbers. The supply peaks between May and September. Last year, REO Veiling marketed 31 million cucumbers.

Last week, cucumber prices were set to increase. This week, prices have stabilised and there were reports of a downward trend. After the large production in November and December, there have been shortages as a result of the acceleration of the season due to the high temperatures. Last Monday, the price in Almeria was 7 cents higher than in the previous week, when it didn't even reach 30 cents. The average price at major auctions stands at around 55 cents. As for specific varieties, Spanish cucumbers registered a price increase, going from 44 to 80 cents, and the French stood at 90 cents per kilo, an increase of 55 cents. Yet there are some tensions in the sector over the pricing. Some organizations wanted to withdraw cucumbers as anti-crisis measure; other companies were opposed because the product was already sold.

Due to the warm weather, production increased by 20 percent, and because of the huge acreage, this led to a surplus. The price per unit stands at around 30 cents. How the market will develop is uncertain; if the temperature drops, there could suddenly be a considerably smaller supply and the market conditions would look very different.

The North African country is not known as a cucumber exporter. The production goes to a limited number of markets, particularly in the Gulf region and the Maldives. These shipments are usually done by air. The peak season for cucumbers is June to August. The production is too small to capture a large share of the world market. Domestic consumption of cucumbers is also large, which reduces the need for exports. Prices vary between 0.35 and 0.47 Euro

The market for Israeli cucumbers is volatile. The production is barely sufficient to meet the demand. That is why small changes in the supply or a slight spike in demand can have major consequences. The result will be shortages and rising prices. Over the past six months, such developments have taken place on a regular basis. In summer, the production was hampered by heat waves, and during the festive season demand rose to levels well above availability. Prices grew to 3.68 Euro per kilo, more than three times the average. Under normal conditions, the price would remain between 0.98 and 1.30 Euro per kilo. The 2 Euro per kilo barrier was overcome several times. To keep supply levels stable, the Government has adopted tariff-free quotas for the import of cucumbers. That should prevent price spikes. Growers are not happy with the measure; they fear that imports will damage domestic crops. Due to strong demand in the domestic market, exports are not attractive.

China is a major producer of cucumbers. In 2014, about 54 million tonnes were harvested. The recent cold weather in the north of the country will result in a smaller harvest. Furthermore, the highest supply levels are expected for around the Lunar New Year, in the first and second week of February. The weeks before the Chinese New Year are quiet. The supply is 30 percent smaller on some wholesale markets in Beijing and Jinan, capital of the Shandong province.

Even though supply has dropped, prices have also fallen slightly. Cucumbers are seen as a summer vegetable and during the cold months the product loses popularity among consumers. Prices stand at approximately 2.30 yuan (0.30 Euro) per kilo, down compared to the 3 yuan per kilo they cost earlier. Around the New Year, the price will go back to around 3 yuan. Some small volumes of cucumbers are imported to complement the country's own production.

The large supply of cucumbers has kept prices low in Australia, despite the good demand for the vegetable. In any case, producers are satisfied with the season. "The production is good, the market is smaller and prices are affected by competition and the high volumes available," sums up a trader. In 2015, the supply of cucumbers increased because of the size of the harvest in Western Australia. One company expanded its acreage with another ​​54 hectares with 300 tunnels. According to the company, 15,000 cucumbers can be harvested per tunnel.

Because of the low supply from California, growers in Ontario have obtained higher prices. That is good news for the producers after a year with a saturated market. The yield is lower in the winter months, but thanks to the good prices achieved by the winter cucumber, growers are pleased with the results. California, Florida and Mexico have suffered extreme weather conditions in recent months, leading to a reduction in production volumes.

Yet there are concerns for the coming months. Last year, the market in spring and summer was saturated. Considerable investments have been made in cultivation in recent years, so the supply has grown faster than demand. For the coming year, growers expect a similar situation with a saturated market.

Mexico is one of the world's largest cucumber exporters. The majority of exports are intended for the U.S. market. Mexico has a share of the U.S. import market of 81.03 percent (2011). The United States imported nearly 8.5 million tonnes of cucumbers that year.