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"If the market demands less, the supply is not as determining"

Iceberg lettuce shortage won't be solved in two weeks

The weather conditions in Spain have been extreme. In Alicante, they have seen the first snow in decades, and in neighbouring Murcia there has also been snowfall and night frost. As a result, prices have reached sky high levels, but taking advantage of this is difficult, because everyone has to make an effort simply to meet their permanent contracts.

"In the first two weeks of January, there was an extreme shortage of vegetables and skyrocketing demand. In the third and fourth week, the demand has fallen. There is still little supply, but as the market demands less, the supply is no longer as determining for the market situation," explains a local agent. "There is no room for negotiations. There is a shortage of product, and whatever there is, it is distributed under the contracts we have, which are often signed for the entire season. The impact of supply and demand on prices is most noticeable on the free market."

"Iceberg lettuce has suffered the most damage because of how easily its shelf life and quality can be affected. A lot of iceberg lettuce has been lost. What you see now is many companies harvesting small crops, weighing about 300-350 grams, because supermarkets want the product, but by doing this, you are only pushing the problem ahead. The Iceberg problem won't be solved in two weeks," stated the agent. Lettuce prices for crops shipped from Spain currently stand at 15-17 Euro per box.



In the meantime, broccoli prices have returned to normal levels, "which is a good thing, as the market doesn't move smoothly with extreme prices. As for cauliflower, last week the demand shifted to France, where sales have been incomprehensibly low. Meanwhile, the price of French cauliflower is becoming attractive again and Spanish and French cauliflowers stand now at a similar level."

For greenhouse vegetables, the situation is also one of shortage. "Courgettes became a trending topic worldwide, but it was also a bit hyped. Aubergines and cucumbers have also become very expensive. Only peppers are sold at a cheaper price in the Netherlands and this is still expected to come down a little. Almeria now has clear and sunny daytime weather, but at night, temperatures become lower. This slows down the harvest, and especially in the case of cucumbers, this can sometimes result in a reduction of the supply; consequently, they could still become extremely expensive."

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